The planning for the €1.5 billion economic measures package that the Prime Minister will announce from the podium of the Thessaloniki International Fair (TIF) in September remains unchanged, as confirmed by competent sources from the Ministry of National Economy and Finance to APE-MPE. From the total amount, €1 billion comes from budget outperformance – both in revenues and expenditure control – while the remaining €500 million is saved thanks to the escape clause concerning defense spending.
At the same time, the long-awaited settlement for Swiss franc loans is expected to be announced within September, affecting thousands of borrowers who were hit by the currency’s appreciation.
The government’s economic team is already working on proposals for tax cuts for the middle class and support for vulnerable groups, alongside housing interventions, with final decisions to be made within August.
As Minister Kyriakos Pierrakakis recently stated, “we have designed measures in terms of developmental support for the economy, not handouts. The TIF plan is specific and focuses on reducing burdens for the middle class. We want to go horizontally, with growth momentum and burden removal“.
Among the measures being discussed, according to available information, are:
- Tax reductions for middle incomes, with interventions in brackets and rates of the tax scale.
- Tax relief for families with children to support families, while scenarios include increasing the tax-free threshold.
- Reduction of tax burden on rental income, alongside providing incentives for property owners to make available closed houses they own to the market.
Specifically regarding the housing issue, Mr. Pierrakakis has noted that the economic team is preparing a series of proposals that will create a “positive supply shock” to “see more houses in the market“.
It should be noted that, in response to another APE-MPE question about “what will happen with Swiss franc borrowers?“, ministry officials state that in September there is expected to be a settlement to ease the cost for those who borrowed in that currency. The possible scenarios, in cooperation with the Bank of Greece and banks, take into account all parameters (exchange rates, securitizations, “Hercules” program, loans already being serviced or converted to euros), to ensure proper balance.
The goal is to achieve the best possible settlement that will not “hit” securitizations and “Hercules”. The Minister of National Economy and Finance has characteristically stated that “the ‘Hercules’ program for non-performing loans must always be safeguarded”.
