«Relief measures made possible by economic growth, which provides us with greater fiscal flexibility,» the prime minister said in a message regarding the activation of energy subsidies through the Power Pass platform.
Mr. Mitsotakis spoke of righting an injustice in the fight against inflation, which is affecting households around the world, due to rising energy prices and the war in Ukraine. He acknowledged, of course, that he would like «a higher barrier against inflation,» but this «must be balanced against reality and our national resilience.».
The prime minister emphasized that «the new electricity bill support is also a targeted measure and, in practice, goes hand in hand with the suspension of the adjustment clause that will take effect in August». He also announced that the measure will cover bills issued in June, with an additional 40 million euros allocated for this purpose.
Read the Prime Minister's full statement on the Power Pass:
Starting today, the government is deploying yet another weapon in the battle against inflation, which is plaguing every country and every household: the Power Pass app is beginning to retroactively reimburse consumers for part of the electricity rate increases from last December through June. We are thus righting a wrong.
In just a few weeks, 3 million applications were processed. And nearly 2 million beneficiaries are already receiving amounts ranging from 18 to 600 euros. This, combined with other tax breaks and subsidies that are also in effect, helps alleviate the burden of price hikes caused by the war in Ukraine and the global energy crisis. In total, 260 million euros are being credited to citizens’ accounts, and they are being notified via the platform or through a message on their computers. Additionally, another 40 million euros will be disbursed immediately to cover bills issued in June.
It is about yet another relief effort. This is made possible, however, by economic growth, which provides us with greater fiscal flexibility. And also thanks to our choice to ensure that the benefits of this growth are returned to society. Because I am well aware of the daily pressure exerted by imported inflation. We are now building another bulwark against it. One that I would obviously like to be larger. But one that must be balanced against the realities and our national capacity.
The new electricity subsidy is also a targeted measure. Moreover, it effectively nullifies the adjustment clause that is set to take effect in August. I would like to remind you, however, that natural gas prices have already increased sixfold compared to last year. No government can cover such an increase. It can only limit it. And that is what we are doing through initiatives such as today’s, which covers 60% of the increases that have occurred.
We are at war. And this is the cost of our national defense in the face of a global challenge that calls for a European response—a response that our country will continue to demand until it is provided. In the meantime, however, the government will exhaust every fiscal leeway to protect citizens’ purchasing power. But even these leeway has its limits. And anyone who promises easy solutions is, quite simply, telling easy lies.
I won't hide the fact that The global situation is difficult. And everywhere, every step seems small in the face of such great needs. But I am well aware of the capabilities we have demonstrated in the trials we have faced. As well as the power of unity and stability. So there is one thing I can promise: that we will stand by every Greek woman and every Greek man until this storm has passed. Until we emerge victorious once again. All together!
