Chr. Staikouras: Compensation and support measures for households and businesses affected by the fires
The government is moving forward with the immediate provision of housing assistance and compensation for household goods to those affected by the fires, as announced by Finance Minister Christos Staikouras, outlining the measures decided upon by the Cabinet. In this context, a supplementary budget of 500 million euros will be submitted, and until the reviews for housing assistance are completed (80% free government aid and 20% a government-guaranteed loan), the first round of aid will be provided immediately:
Specifically:
1. For residential properties:
*For those that have been completely destroyed, 20,000 euros, of which 14,000 euros is the advance payment for housing assistance and 6,000 euros is compensation for household goods.
*For those that have not been completely destroyed but are temporarily uninhabitable, 12,000 euros, of which 8,000 euros is the advance payment for housing assistance and 4,000 euros is compensation for household goods.
*For homes with serious damage but still habitable, 5,000 euros, of which 3,000 euros is the advance payment for housing assistance and 2,000 euros is compensation for household goods.
2. Other buildings and commercial properties:
*For buildings that have been completely destroyed, an advance payment of 14,000 euros for housing assistance.
*For buildings with severe damage that are temporarily inoperable, 8,000 euros in housing assistance.
*For buildings that have sustained serious damage but are still functional, 3,000 euros in housing assistance.
3. Granting procedure:
A platform will be launched on the Independent Authority for Public Revenue (arogi.gov.gr) where citizens will submit a sworn statement detailing the extent of the damage they have suffered for each property. The platform will go live in the coming days, and the first round of aid payments will begin within the next few weeks. At the same time, the Ministry of Infrastructure will conduct an assessment to determine the final amount of damage after the affected party submits their application.
The additional amount for the housing subsidy will be paid after the application has been reviewed; however, if no application is submitted or if the amount of damage is determined to be less than the advance payment, the difference will be treated as an overpayment.
4. Business grants:
Immediate provision of initial aid to businesses that own buildings, including livestock, pig and poultry farms, and agricultural holdings, for mechanical equipment, raw materials, merchandise, means of production, and damaged vehicles, as follows:
*8,000 euros to businesses whose facilities have been completely destroyed.
*4,000 euros in cases where the facilities have not been completely destroyed but have sustained serious damage that makes it impossible to conduct business operations.
*2,000 euros to other businesses that have suffered significant damage to equipment, raw materials, merchandise, or vehicles but are still operational.
Provision is also made for the immediate disbursement of initial aid to farms whose facilities have not been damaged or that do not have facilities and have suffered damage to perennial crops, as follows:
*4,000 euros if the affected area exceeds 50 stremmata.
*2,000 euros if the affected area is between 10 and 50 stremmata.
*1,000 euros for smaller crops.
Livestock insured through ELGA is compensated by ELGA. For annual crops, in cooperation with the Ministry of Rural Development and ELGA, immediate measures are being taken to address the damage, within the framework of individualized de minimis aid.
In collaboration with the Independent Authority for Public Revenue (AADE), a special platform is being created and will be available in the coming days through the same online portal, for the disbursement of the first round of aid, where eligible recipients will be able to apply for and receive financial support in the coming weeks. At the same time, in cooperation with the relevant regional committees and with the participation of ELGA, where required, the Ministry of Finance will grant an advance payment of 20% based on the estimated damage to affected businesses, starting in the first weeks after the affected areas have been designated. This advance payment will be supplementary if the damage exceeds the amount of the initial aid. The advance payment also applies to agricultural holdings.
Finally, provision is made to subsidize a portion of the total estimated losses incurred by affected businesses, including farms. Specifically, upon completion of the assessment process by the relevant regional committees, a grant will be provided—incorporating the initial relief payment and the advance payment—of up to 70%, of the total estimated damage based on Law 4797/2021, to cover the restoration of the damage and the resumption of operations.
To ensure the prompt completion of the grant process for affected businesses, Article 18 of Law 4797/2021, which pertains to exceptional cases of widespread damage, and compensation will be granted to the committees—by decision of the Ministers of Finance and the Interior—to ensure the timely completion of the documentation and assessment process.
5. Additional interventions:
*Exemption for affected businesses and farms from the repayable portion of the «repayable advance.» The exemption is granted upon issuance of a relevant certificate, following an assessment of the damage by the regional committees.
*Real estate (buildings, plots of land, farms) that have been proven to have been completely destroyed or have sustained structural damage rendering them uninhabitable are exempt from the ENFIA property tax for the years 2021, 2022, and 2023. This process will initially be initiated through the AADE’s own platform and will then be verified upon review of the application by the relevant department of the Ministry of Infrastructure.
*A rent/shared housing subsidy ranging from 300 to 500 euros per month to cover the temporary housing costs of permanent residents, whose homes were damaged by the fires.
*For individuals and legal entities that have been affected and are eligible for housing assistance and/or business grants, the payment of all outstanding—assessed and due—tax obligations is suspended for 6 months. Similarly, by decision of the Ministry of Labor, the social security contributions of affected businesses and self-employed individuals may be suspended for 6 months.
*In cooperation with the Hellenic Bank Association, credit institutions are implementing a suspension of payments on all forms of current obligations for individuals and legal entities that have been affected and are eligible for housing assistance measures and/or business grants. This includes loans granted through the Guarantee Program and TEPIX II of the Hellenic Development Bank.
*For natural and legal persons, as well as legal entities that have been affected and are eligible for housing assistance and/or business grants, all enforcement proceedings against their movable or immovable property are suspended. The duration of the suspension will depend on the extent of the damage. The suspension applies, in particular, to auctions, seizures, evictions, and personal detentions.
*A grant to local governments and for infrastructure restoration, initially amounting to 20 million euros.
6. Additional projects in municipalities on Euboea:
*The measures suspending tax, social security, and loan obligations, as well as the enforcement of collection proceedings, apply to all legal entities and individuals in the municipalities of Mantoudi- Limni-Agia Anna and Istiaia-Aidipsos, regardless of whether they have suffered individual damage from the fires.
*In addition, specifically for 2021, all properties located in these two affected municipalities are exempt from the ENFIA property tax. Furthermore, private-sector employers, regardless of industry or business activity, in the affected municipalities of Euboea may suspend the employment contracts of some or all of their employees for up to 3 months. For as long as they make use of the measure to suspend employment contracts, employers are prohibited from reducing their workforce by terminating employment contracts. If such terminations do occur, they are null and void.
*At the same time, the State Aid Account established by Law 4797/2021 is being set up to collect contributions from private individuals with the aim of supporting those affected, subject to strict accountability rules and under a regime of full transparency.
7. Medium-term measures to strengthen civil protection and restore the country’s natural resources. To this end, it is planned to utilize 16 billion euros from the NSRF Recovery Fund by 2027, of which €10.5 billion will come from the Recovery Fund for the Green Transition and €5.5 billion from the NSRF for climate change adaptation.
In this context, the following reform initiatives are being implemented immediately:
A. National Civil Protection Program «AIGIS»:
Following the signing on January 28, 2021, of the relevant financing agreement with the European Investment Bank, the largest civil protection modernization program to date, named «AIGIS,» was approved this June.
Its total funding amounts to 1.76 billion euros, with 595 million euros coming from the European Investment Bank, €408 million from the Recovery Fund, and €757 million from the National Strategic Reference Framework (NSRF) for the 2021–2027 period.
Among other things, the following are provided for:
*Procurement of helicopters and firefighting aircraft.
*Procurement of helicopters for transporting personnel and first-response teams.
*Purchase of state-of-the-art vehicles for the Fire Department and specialized patrol vehicles.
*Water-based rescue and patient transport vehicles.
*Folding bridges for responding to natural disasters.
*Airborne command and control centers and the procurement of drone fleets.
*Supply of state-of-the-art intelligent fire detection and suppression systems.
*Procurement of early warning systems for natural and man-made disasters.
*Supply of mechanical equipment and construction machinery.
*Establishment of 13 Regional Civil Protection Operations Centers and 64 Local Operations Centers.
B. National Reforestation Plan and Implementation of Flood Control Projects:
An initial allocation of 224 million euros has been set aside from the Recovery Fund for the reforestation of 165,000 stremmata. The project aims to restore burned areas and improve the quality of the newly reforested areas by planting new tree varieties that are more resistant to summer wildfires.
In addition, 110 million euros have been allocated from the Recovery Fund for multi-purpose investments aimed at mitigating flood risks, provide water for irrigation in areas experiencing severe drought during the summer, and promote effective water management in selected regions of Greece.
In addition, another 100 million euros from the Recovery Fund is earmarked for biodiversity conservation measures.
At the same time, additional biodiversity initiatives totaling 1.5 billion euros are being launched through the NSRF, which also include reforestation efforts.
C. Issuance of a green bond:
The Ministry of Finance, in collaboration with the Public Debt Management Agency (PDMA), immediately after completing the bulk of this year’s borrowing and management program, launched a study, beginning in early June, to establish a framework for issuing Greek government securities, the proceeds of which will be used for public projects, government initiatives and programs exclusively focused on green and sustainable economic development.
According to the plan, the first issuance of such a medium- to long-term government bond will be part of the government’s issuance strategy for the coming year.
