Support measures from the Greek government: up to 2.5 billion euros

The development of a new plan to support households and enterprises operating in conditions of inflation is at the final stage.

Without changing the target for the primary deficit, which will remain at the level of 2% of GDP, economists are preparing an additional budget plan, on the basis of which households and enterprises hit by the energy crisis and inflation will be further strengthened.

The tax revenue outlook is strong in the tourism sector, with revenue creating fiscal space for a new “aid package” to be announced at the next ΔΕΘ conference by Prime Minister Kyriakos Mitsotakis in early September.

According to preliminary information, the new measures could amount to 2.5 billion euros and will affect 2022 and 2023, while it is very likely that after 2023 there will be a preliminary announcement of tax incentives.

Finance Minister Christos Staikouras spoke about measures to support citizens with low and middle incomes, mentioning “a significant increase in pensions from January 1, 2023.”

“An increase in pensions in 2023 is a given, which will be much higher than the initial estimates, due to inflation,” the Minister of Finance stressed. Thus, from January 1, 2023, an increase in the income of almost 1 million pensioners is expected – both due to the unfreezing of pensions in 12 years, and the abolition of the “solidarity” collection (εισφοράς αλληλεγγύης).

Additional measures for 2022, which will be announced at ΔΕΘ, are the following:

1. Payment of emergency assistance(about which they rang out and “shut up.” I mean “summer allowance”). The information says that it will be set at 200 euros and the number of recipients will increase, as it is supposed to be given to more households than those who received the “bonus” last Easter. The aim is to support vulnerable citizens and those most affected by the high cost, government officials say. The list of beneficiaries will be determined by the end of the month after the completion of the processing of the overall benefits package, which will be announced by the Prime Minister.
2. Increase in fuel and heating allowance. Providing a subsidy (Fuel pass3) if fuel prices do not fall. Inflation and the energy tsunami that comes in winter need subsidies. This strategy includes a fuel subsidy.

The Ministry of Finance, despite the uncertainty, is cautiously optimistic about the very good performance recorded on the tourism front and the fiscal policy demonstrated by citizens and businesses in paying their obligations, despite the difficulties they face.

The picture will be fully clarified in early September, with announcements ΕΛΣΤΑΤ on the pace of the country’s economic development in the second quarter (after a recovery of 7.1%, which was recorded in the first quarter). If growth continues above 5% in the second quarter, then the higher growth target in 2022, which currently remains at 3.1%, will be revised down.

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