Mitsotakis: Announced 8 new support measures

Prime Minister Kyriakos Mitsotakis announced the government's new package of economic measures aimed at relieving citizens from the consequences of the geopolitical crisis in the Middle East and addressing the issue of poverty.

The announcement of the new support package, which is based on the available surplus, comes at a key political juncture, in an attempt by the government to redefine the agenda, while the debate on lifting the immunity of 13 New Democracy MPs is taking place in Parliament, in the wake of the European Public Prosecutor's Office's investigation into OPEKEPE.

The fiscal space The validation of the fiscal data was key to the design of the interventions. The surplus, after the audit by the European institutions, is estimated at EUR 800 million. Of this, at least €500 million will be made available immediately to finance the new measures, with the possibility that the final amount could be increased.

The «map» of the 8 new measures

As the Prime Minister announced, the interventions are targeted and focus on boosting income and easing the burden on debtors. In detail:

1. Diesel subsidy extension: The subsidy of 20 cents at the pump is maintained for the month of May.
2. Aid to farmers: The fertiliser purchase subsidy is extended until August at 15% of the invoice value.
3. Financial support for families: A lump sum of €150 per child is given without application (at the end of June).
4. Increased support for pensioners: The November permanent annual allowance for low pensioners, uninsured elderly and disabled people is increased to €300 (net) and the beneficiaries are extended.
5. Return of Rent: Income thresholds are increased so that more (up to 86% of tenants) receive the one rent rebate per year.
6. Lifting of the attachment of accounts: Debtors will be able to release their bank accounts once they have paid 25% of their debt and settled the balance.
7. Expanding the extrajudicial mechanism: Now, debts of smaller amounts (from €5,000 to €10,000) are also included in the scheme.
8. Setting of 72 instalments: The possibility of joining in 72 instalments for old, unregulated debts (until December 2023), subject to the regulation or repayment of newer debts.

Who is affected by the new package

According to the data, the umbrella of protection is significantly extended, covering 85% of pensioners (over 65) and 80% of families with children. In total, they benefit:

• 1.87 million pensioners and people with disabilities (420,000 new beneficiaries added)
• Over 1 million tenants
• 975,000 families (involving 3.3 million parents and children)
• 250,000 professional farmers
• All owners of diesel vehicles
• 1.3 million small debtors and 284,000 businesses/freelancers with overdue debts.

Mitsotakis: «Dividend of progress in society»

During the announcement of the measures, Kyriakos Mitsotakis stressed that despite the positive performance of the national economy, the government understands the «stress of the supermarket and the increased expenses».

«The surplus came from prudent economic policy and the fight against tax evasion. I am announcing a package of relief measures as a dividend of the progress that the state is returning to society,» the Prime Minister said, responding in advance to criticisms of the inadequacy of the measures. No state can single-handedly take on a single state alone. But it is the best we can do without upsetting the economic balance,« he concluded.