ECONOMY

PM announces €1.1 bln in support

Mitsotakis says aid will help 3.2 mln Greeks hit by soaring prices sparked by Russian invasion

PM announces €1.1 bln in support

In response to widespread price hikes, Prime Minister Kyriakos Mitsotakis announced new measures on Wednesday to the tune of 1.1 billion euros in relief aid to some 3,200,000 lower-income Greeks, and households with annual incomes of up to 30,000 euros. 

To this end, he said that the ministers of finance, energy and agriculture will each announce a three-month emergency spending program on Thursday to further support the Greek economy.

“Russia’s invasion of Ukraine has brought war back to Europe. It paves the way for borders to be disputed and the violent imposition of the strongest and the uprooting of millions of people,” he said, while also stressing that it is “causing a huge energy crisis” with unprecedented price hikes, “threatening the well-being of all societies.”

The consequences of this war, he said, are seen in the prices of electricity, fuel and other products, despite the fact that the state has been covering a large part of these hikes since the autumn, supporting households and businesses.

“The measures will address all manifestations of price increases and will support the income of lower-income workers and pensioners with an emergency subsidy,” said Mitsotakis, explaining that the government will be “supporting families with children, who face increased expenditures.” The measures will “generously subsidize energy bills, but also partially absorb increases in fuel prices, by covering 180 liters of gasoline for vehicles.”

“There will also be special provisions for farmers and small businesses, who have been hit particularly by increased energy prices,” he added.

He also stressed that he has broached the issue with the European Commission, which is now considering regulations to counter speculation on energy prices. “It is time for politics to set rules in the markets and for companies with profits from this situation to share the cost. I hope that we will agree on this at the next European Council,” he said.

He also stated once again that the Single Property Tax (ENFIA) will be reduced and that the Greek national minimum wage is set to increase.

“Because wages in our country are, unfortunately, still low,” he said, noting that high prices come at the expense of disposable income.