Consolidation expensiveness

Calculate how much the same shopping of 100 EUR will cost in 2025, if in 2024 VAT is 20% and in 2025 it will be as much as 23%. Assume that all goods in the shopping are charged with the same, basic VAT rate.

PS. VAT was temporarily raised from 19% to 20%, until the deficit of public finances falls below some percentage. They did not manage it, and despite the untrue claims of the hotchpotch RF that price-rises via VAT increase are a red line, it happened that due to VAT there will be further price-rises (=robbing the workers = for the same money they will buy less in the shop.).

Consolidation means not raising taxes, as is happening now, but reorganising the expenses, literally crossing out unnecessary ministries, offices, free trains, 13th pensions, etc.

Final Answer:

x₂ =  102.5 EUR

Step-by-step explanation:

$$\begin{gathered} x_1=100\text{EUR} \\ {r}_1=100\%+20\%=1+\frac{20}{100}=1.2 \\ {r}_2=100\%+23\%=1+\frac{23}{100}=1.23 \\ a\cdot r_1=x_1 \\ a=x_1/r_1=100/1.2=\frac{250}{3}\doteq 83.3333\text{EUR} \\ {x}_2=r_2\cdot a=1.23\cdot 83.3333=102.5\text{EUR} \end{gathered}$$

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