On Wednesday 22 April, the Prime Minister, Kyriakos Mitsotakis, is expected to announce the new package of support measures, totalling around €500 million. The government is making these interventions by using the additional fiscal space created by the significant overshoot of the primary surplus for the year 2025.
The budgetary margin and the surplus
Tomorrow the official announcements from Eurostat and ELSTAT on the final amount of the primary surplus are expected. The latest estimates suggest that there will be a significant overshoot, reaching 4.8% - 4.9% of GDP, against the initial target of 3.7%.
- The total amount that can be made available from the surplus is estimated at €800 million.
- Of this, €300 million has already been committed for ongoing measures (diesel subsidies, Fuel Pass, fertilisers).
- As a result, an amount of €500 million is released to finance the new support package.
What the «toolbox» of new measures includes
The economic staff, under Finance Minister Kyriakos Pierrakakis, in consultation with the Prime Minister, is finalizing the interventions, focusing on relieving vulnerable groups and addressing the increased costs. The following measures are on the table:
- Extension of existing subsidies: The extension for the month of June of the measures implemented in the April-May period is under consideration. This includes the Fuel Pass, a horizontal subsidy of 16 cents per litre at the pump for diesel, a reduction in ferry fares and support for the purchase of fertiliser.
- Emergency support to the primary sector: An additional aid for fertilisers is possible due to problems in the supply chain following the closure of the Straits of Hormuz.
- Energy costs: The extension of subsidies to fixed electricity tariffs is under consideration.
- Support for pensioners: There is a special concern for pensioners, as evidence shows that they are the social group most affected by inflation.
- Food and «Precision Cheque»: The government is taking a wait-and-see attitude for a Market Pass-type subsidy. This will be triggered only if inflation reaches 6% - 7% due to extreme food price increases. If the situation is more normal, the option of an emergency «accuracy cheque» for the economically weaker is preferred.
- Tax interventions: The final package may include additional tax measures that are currently being shaped.
The mood in the government camp is positive, with government spokesman Pavlos Marinakis speaking of «cautious optimism». Immediately after the Prime Minister's central announcements on Wednesday, the relevant ministers will proceed to the full specification of the measures.
