Kyriakos Mitsotakis announced new economic support measures for society against the impacts of war, unveiling a package of 4 targeted measures for April-May worth €300 million. As the Prime Minister emphasizes, “we are leading the formation of a unified European response – until then we are also moving unilaterally at the national level.”
Kyriakos Mitsotakis: Detailed support measures
According to what the Prime Minister announced, the support measures are as follows:
- 1. We subsidize diesel fuel in the distribution network by 16 cents/liter – benefit at the final price (with VAT) of 20 cents/liter.
- 2. We grant a Digital Fuel Card for support against gasoline price increases – it will be used at gas stations, public transport and taxis. Average support of 36 cents/liter – with average monthly consumption of 70 liters, €50 for two months in mainland Greece and €60 on the islands.
- 3. To relieve farmers from sharp increases in fertilizer costs, we subsidize 15% of their purchase receipts.
- 4. We establish compensation for ferry companies that will be linked to mandatory ticket discounts, to keep prices at last year’s levels.
Kyriakos Mitsotakis makes clear that the cost of the initiative will be covered by public funds and taxation of profits from online casino-type gambling players, to secure €100 million. “Measures enabled by prudent fiscal management strengthen social safety nets in turbulent times without endangering our achievements. We keep reserves if the global economic situation deteriorates significantly – the government stands and will stand by every Greek woman and man,” he notes.
The measures will be detailed at 13:30 in a press conference by Minister of National Economy and Finance Kyriakos Pierrakakis and Deputy Minister Thanos Petralia.
Kyriakos Mitsotakis’s announcement
From the first moment of the conflict in Iran, I stated that the government would take initiatives to build a “bulwark” against the consequences of this new major crisis. We immediately moved in the geopolitical field, protecting Cyprus, stability and energy security in the region.
At the same time, however, we must support households and businesses against international economic instability. Particularly in the fuel sector, as this is connected to production costs, product price increases, and citizens’ daily lives.
You know that Greece already leads in forming a unified European response. Until then, however, the government is determined to move unilaterally at the national level. Always within our fiscal capabilities.
Thus, today I announce a package of four targeted measures that will apply for April and May. The program amounts to about €300 million. The support it entails addresses almost the entire population.
Specifically:
First, to limit the negative impact from the global rise in oil prices on the supply chain, goods transport and agricultural production, we intervene in diesel fuel costs. The state will therefore subsidize it in the distribution network by 16 cents per liter. This means the benefit for consumers and professionals at the final price – with VAT – will amount to 20 cents per liter. I repeat: our goal here is to prevent production cost increases from moving to product prices.
Second, aiming to strengthen households against gasoline price increases, special support is granted through a Digital Fuel Card. This can be used at gas stations, public transport, and taxis. Support calculated at an average of 36 cents per liter. That is, with average monthly consumption of 70 liters, the measure translates to €50 for two months for mainland Greece and €60 for our islands. The criteria for issuing this card will be expanded to cover about 3 out of 4 million vehicle owners.
Third, we also promote specific interventions to relieve farmers from sharp fertilizer price increases. Thus, the state will subsidize 15% of their purchase receipts.
Fourth, as defense against the effects of high marine fuel prices, special compensation is established for ferry companies. However, compensation that will be linked to mandatory discounts they must follow on tickets. Our goal is to keep ferry ticket prices close to last year’s levels.
One more thing. I think the initiative’s cost needs to be covered not only by public funds, but also by sectors showing increased profitability while having a smaller social footprint.
Thus, taxation of profits from online casino-type gambling players is modified to secure €100 million. A fair intervention, I think, which will be analyzed shortly, along with all program details, by the responsible Ministers.
What I would like to emphasize is that the above is made possible thanks to the benefits brought by the economy’s positive trajectory and prudent fiscal management. These are measures that strengthen social “bulwarks” in turbulent times. However, they do not weaken the essence of this effort, nor do they endanger what we have achieved.
And because no one knows how long this war will last, we obviously keep reserves in case the global economic situation deteriorates significantly.
Our message, therefore, is one: the government stands and will stand by every Greek woman and man, as it has done in every difficult moment so far. While our homeland will overcome all storms caused by events beyond our borders, having unity and social cohesion as daily weapons. In uncertain times, the homeland needs a steady compass in its orientation.
