The government proceeded with the specification of a new support measures package worth 300 million euros for April and May, attempting to limit part of the pressure caused by high energy costs, transportation expenses, and production costs. Minister of National Economy and Finance Kyriakos Pierrakakis and Deputy Minister Thanos Petralias presented in detail the content of the interventions previously announced by Prime Minister Kyriakos Mitsotakis, emphasizing that fiscal management will be gradual and careful, without exhausting all available tools at once. The package includes four main pillars: diesel fuel subsidies, fuel pass for individuals, support for fertilizer purchases by farmers, and intervention in ferry ticket prices through compensation to companies for mandatory discounts they already provide. The government’s goal is to relieve households, professionals, and producers from part of the new burdens, while keeping open the possibility of new interventions if the crisis proves more prolonged.
1st measure: For diesel fuel
As Mr. Pierrakakis said, “the first measure concerns diesel fuel. If diesel increases significantly, transportation costs rise and ultimately the price of all products increases. The measure’s goal is not only to reduce costs but to generally contain costs in the supply chain. Diesel fuel at the pump is subsidized by 16 cents per liter, so that the benefit in the final price with VAT amounts to 20 cents per liter. The total fiscal cost for the two-month period will be 106 million euros.”
2nd measure: For fuel
Fuel support through fuel pass, in the form of a digital card that can be used at gas stations, public transportation, and taxis. The subsidy has been calculated to average 36 cents per liter. As the minister noted, ultimately the benefit for citizens will be greater than a horizontal reduction in excise tax.
The subsidy has been calculated to average 36 cents per liter. With average consumption of 70 liters per month, the support amounts to €50 for mainland Greece and €60 for island Greece for the two-month period of April and May.
Income criteria are expanded for families with children, proportionally to those used in the “My Home 2” program and cover approximately 3 out of 4 million vehicle owners.
As mentioned during the measure specification, the goal is for the platform to open within the week and the first payments are scheduled for mid-April.
3rd measure: For fertilizers
As he said, “increased production costs will pass through to food prices. We will subsidize 15% of the value of fertilizer purchase receipts. The fiscal cost amounts to 15 million euros.”
Beneficiaries are individual professional farmers and legal entities operating in the primary sector. The subsidy will be granted following application on a relevant electronic platform of the Independent Authority for Public Revenue.
4th measure: Ferry services
According to the minister, “in cooperation with Vasilis Kikila, we will compensate ferry companies based on the discounts they provide, to keep prices down. The measure’s cost is estimated at 56 million euros annually.”
Ferry companies provide, based on the current legislative framework, mandatory discounts to various passenger categories (students, minor children, people with disabilities, etc.), the cost of which is currently not compensated. Taking into account the significant fuel increase and in order to contain general population ferry ticket prices, these discounts will be compensated from the state budget.
It should be noted that to finance the measures, taxation on online casino-type gambling games is being increased, with the rate rising to 20% for winnings from 100 to 500 euros and 30% for winnings above 500 euros, from 15% and 20% respectively today.
This intervention is estimated to generate approximately 100 million euros annually in public revenue.
