ECONOMY

Support measures worth 4.34 billion euros this year

Support measures worth 4.34 billion euros this year

The Greek government has earmarked nearly 4.34 billion euros, or 2.2% of the country’s gross domestic product, for measures aimed at supporting households and businesses against the energy crisis and rising inflationary pressures this year, up from 991 million (0.5% of GDP) in 2021, according to the Stability Program submitted to the European Commission.

More specifically, the Finance Ministry had foreseen measures worth 3.61 billion euros to subsidize electricity and natural gas, 324 million in support to vulnerable households, 130 million euros in subsidies for fuel purchases and 90 million euros in subsidies for heating oil.

Finance Minister Christos Staikouras, in comments made to the Parapolitika radio station on Tuesday, said the government’s contribution will be even more generous and noted that a good execution of the state budget has created fiscal room that will be exploited.

Under the baseline scenario included in the Stability Program, the Greek economy will grow by 3.1% this year (4.5% in the state budget) and the inflation rate will rise by 5.6% on average (0.8% in the state budget). However, under the adverse scenario, the Greek economy could take a hit from a steep increase in oil, natural gas and commodities prices, pushing the inflation rate 2 percentage points higher. This could lead to a loss of one percentage point in GDP growth, 1.3 point in private consumption, 1.7 point in exports and 2.2 points in investments. [AMNA]