Deadly deluge brings cuts to benefits
Compensation to victims a priority for gov’t as pensioners’ allowance, market pass extension axed
In the wake of the horrific floods in Thessaly, the government is re-evaluating its objectives, prioritizing compensation for victims and discarding or postponing subsequent benefits that were initially slated to be announced at the Thessaloniki International Fair (TIF).
Thus, the Finance Ministry economic staff’s planning, which will be reflected in Prime Minister Kyriakos Mitsotakis’ statement at TIF on Saturday, does not include the expected – but unannounced – extension of the market pass for two months, till the end of the year.
Finance Minister Kostis Hatzidakis confirmed as much on Wednesday in comments to ANT1. Moreover, the personal difference allowance for pensioners, which was supposed to be paid this year, is likely to be delayed until January. As previously stated, the electricity subsidy would be restricted to the most vulnerable. The heating allowance is not expected to be increased.
“We will have a heating allowance as it was paid last year,” Hatzidakis said. Of course, the adopted measures will apply as normal, namely the salary increases for civil servants and pensioners in 2024. Thus, the government is seeking to meet the target for a primary budget surplus of 0.7% of GDP this year.
The government is also reportedly exploring generating income, maybe through a special contribution, in order to significantly increase the budget allotted for natural catastrophe response in 2024. On the occasion of Slovenia’s implementation of a similar measure to cover the cost of its own natural disasters, Hatzidakis highlighted the importance of “responsibility and solidarity” on Skai Radio. In any event, he stated that any action would not be an unjust measure or generate societal discontent.
Indicatively, after his meeting with the Hellenic Bankers Association, which will provide €50 million, Hatzidakis called on others to follow suit. He estimated that shipowners would move in the same direction and industries would follow suit.
However, he stressed on Skai that Greece is not Switzerland, nor Sweden, and therefore must try to combine social sensitivity with economic responsibility. “We have fiscal targets to meet,” he commented.
He confirmed that a supplementary budget of €600 million would be submitted. Part of the expenditure, however, will be covered by EU funds.
