Package for vulnerable citizens to be announced by Mitsotakis in September

A package of targeted measures for vulnerable households, people with low incomes, and new programs, subsidies and benefits designed to fight inflation, will be announced by Greek Prime Minister Kyriakos Mitsotakis at the annual ΔΕΘ International Forum in Thessaloniki.

The heads of the economic headquarters rule out the possibility of horizontal measures (assistance to everyone in a row, not just those in need), pointing out that in 2024 the country should return to the path of a strong budget surplus. However, they leave open the possibility of introducing additional (emergency) measures of social assistance to citizens if there is a budget space, “despite the fact that these steps will not jeopardize the budget balance.” At least 450 million euros “remained” in the state treasury, while the primary surplus in 2023 will grow to 1.3-1.4% of GDP compared to the target of 1.1% of GDP in 2023.

Scenarios for additional measuresthat began to be worked out in the government in the run-up to the prime minister’s speech at ΔΕΘ include extending Market Pass before the end of the year, expanding incentives and subsidies for heating and electricity to support vulnerable households. At the end of the year, pensioners who do not see an increase in their pension in 2024 will receive a “personal difference” allowance (προσωπικής διαφοράς) of between 200 and 300 euros. It is also possible that low-paid pensioners and vulnerable groups will be given a “bonus” for Christmas.

https://rua.gr/news/bissecon/56885-v-sentyabre-dvojnuyu-summu-poluchat-benefitsiary-market-pass.html

According to the information, the financial staff has begun to submit measures for consideration, which, among other things, provide for:

1. Market Pass renewal: given that rising prices for basic foodstuffs will persist and put pressure on household incomes, the extension of the Market Pass is scheduled for the last two months of the year, November and December. According to plan, in early October, approximately 2.8 million households will receive the entire Market Pass for August, September and October in one payment. The amount reaches 300 euros.

2. Increasing the amount of the heating allowance. In the 2022-2023 winter season, 1.3 million households received the benefit, bringing the total amount to €300 million, up from €174 million in the previous winter season. The financial staff is looking into the income criteria as well as the size of the heating allowance if, for example, oil prices do not fall.

3. New energy bill support system for vulnerable households. The involved ministries of finance and energy are on the open line and exchange information. Today’s electricity prices remain at higher levels than before the energy crisis, which is a cause for concern. Extension support mechanism until the end of the year provides some stability in case of further growth of the market price. “However, the subsidy system is sufficient as long as the price of natural gas remains close to the level of 30 euros per MWh,” Energy Minister Theodoros Skylakakis said, stressing that “we cannot be sure” about next winter. According to market factors, everything will depend on weather conditions, not excluding a new increase in natural gas prices.

4. Pensioners’ allowance for “personal difference” (προσωπικής διαφοράς). The Prime Minister announced that the increase will be given to those who do not receive a pension increase in 2024. The measure became permanent with the resumption of the payment of a supplement of 200-300 euros.

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