The Ministry of National Economy and Finance’s comprehensive bill is entering public consultation in the coming period, incorporating a support measures package worth €800 million, with the economic team accelerating procedures so that most interventions will be implemented within June.
What the Finance Ministry’s €800 million support package will include
The comprehensive bill will include the majority of emergency and permanent interventions already announced for households, pensioners, families, farmers and public debtors. The housing provisions carry particular political and social weight, as the same bill “locks in” the new strict framework for short-term rentals like Airbnb in Thessaloniki.
The government is proceeding with a ban on issuing new short-term rental licenses in the city center, in an attempt to limit housing pressure and the skyrocketing rents recorded in recent years. The measure is expected to be implemented immediately after the law’s passage. The intervention is considered pivotal by the economic team for Thessaloniki’s housing market, as the rapid development of short-term rentals has significantly limited housing availability for long-term rental, particularly in the city’s historic center.
Simultaneously, the comprehensive bill will include provisions for returning two months’ rent to public servants working away from their permanent residence. The support mainly concerns doctors, teachers and nurses working in regional areas who face increased housing costs due to relocation.
The same package of measures also includes:
- Emergency financial support of €150 per child, to be paid at the end of June to nearly 1 million families.
- Increasing financial support to €300 from €250 for pensioners over 60 years old with parallel expansion of income and property criteria. Specifically for unmarried individuals, annual income increases to €25,000 from €14,000 and the objective value of real estate property to €300,000 from €200,000. For married couples or those in civil partnerships, annual family income is readjusted to €35,000 from €26,000 and real estate property value up to €400,000.
- Widows over 60 years old are also entitled to the €300 support, provided the widow’s pension is the only income they receive.
- Readjustment of income limits for rent refunds. The limit rises from €20,000 to €25,000 and from €28,000 to €35,000, while for single-parent families it reaches up to €39,000, with an increase of €5,000 per child.
- Extension of fertilizer subsidies until August, covering 15% of the value for approximately 250,000 farmers.
- Lifting bank account seizures for debtors who settle their debts. Bank account seizure for a debtor can now be lifted if 25% of their debt has been paid and their remaining obligations to the tax administration have been settled.
- Extending the scope of the out-of-court mechanism to include debts from €5,000 to €10,000, serving approximately 300,000 interested parties.
- The possibility of settlement in up to 72 installments for old unregulated debts. The measure concerns 1.3 million individuals and 284,000 legal entities with €95.3 billion in debts that became overdue up to December 2023, which can now be included in a 72-installment regime, with the sole condition of paying off or settling any new overdue amounts from January 1, 2024.
According to the ministry’s planning, the comprehensive bill will be accompanied by a supplementary budget of €800 million to cover the fiscal cost of the interventions.
