The government is trying to spread a safety net that will cover most households in an effort to mitigate the effects of increased prices in energy, but also in some of the essential goods.

The Greek Prime Minister, Mr. Kyriakos Mitsotakis, in his statements, referred to the State’s intentions by stating that those who will see excessively increased bills, they will be given the opportunity to pay them in installments, obviously referring to the electricity and gas bills.

Mr. Kyriakos Mitsotakis noted that “the measures proposed by the Commission are in line with the already legislated initiatives of the Greek government” and stressed the government’s emphasis on supporting households, especially those vulnerable to electricity prices and the heating costs, next winter.

“I really believe that the Commission’s observations are particularly important and we will adopt them: The possibility for our fellow citizens, who may see a sharp increase in heating costs, to repay their obligations within a reasonable time, through a system of regulations, so that the financial burden during the winter is not too great”, the prime minister stressed, among other things.

At the same time, Mr. Kyriakos Mitsotakis noted that proposals should be considered “such as the possibility of buying natural gas, as European Union, that is, to acheive in the sector of natural gas what achieved extremely successfully in vaccines.”

The new interventions of the Greek government

The Ministry of Finance is considering and examining various and alternative scenarios, which will be implemented, depending on the course of international energy prices, but also the fiscal space that will be formed as a result of the growth rate that will be achieved.

There are two ways to stimulate income. The first through tax relief and the second through aid (social dividend). Final decisions have not yet been taken and this will be done either through the final text of the 2022 budget, which will be tabled on 21 November, or even later in December, in order to have a better picture of budget implementation.

However, no matter what measures will be taken, it is very difficult to have a permanent character, something that extremely limits any interventions. So, it will either have the character of an allowance, or a lump sum payment (social dividend to specific social groups).

The first samples, however, are particularly encouraging. Tax revenues, both monthly (September 2021) and 9-month (January-September), are significantly above the target, as described in the medium-term, with two main sources, tourism and the course of business profits.

It is therefore highly likely that, by the time the budget is finally tabled in November, there will be a revision of the 6.1% growth target in 2021.

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