Greek PM Announces Sweeping Changes in 2025 State Budget
These measures aim to foster fairer banking practices and enhance the availability of affordable housing and credit
Greek Prime Minister Kyriakos Mitsotakis unveiled a series of major initiatives as part of the 2025 state budget during a speech in Parliament Sunday evening. His announcements focused on reducing banking charges, improving conditions for vulnerable groups, and addressing critical social and economic needs.
Banking Reform: Zero Fees and New Regulations
A significant highlight of the Prime Minister’s speech was the elimination of fees on basic banking transactions. The measures aim to reduce the financial burden on households and include:
- Zero charges for payments to public entities, social security funds, municipalities, and utility companies (energy, water, telecommunications).
- A cap of €0.50 per transaction for money transfers under €5,000.
- Doubling the property tax rate (ENFIA) on properties managed by banks and loan servicers by 2026, freeing up an estimated 25,000 homes for the market to curb rental costs.
- Removal of older restrictions on Credit Provision Companies to expand loan availability.
- Allocation of €100 million from the financial sector to renovate or build new schools under the “Marietta Giannakou” Program.
- An additional €100 million to establish a Property Acquisition and Leaseback Agency to support struggling homeowners.
- Increasing the daily transaction limit in the IRIS payment system to €1,000, with no fees for loading prepaid cards up to €100.
- Allowing citizens to compare interest rates and fees transparently via the Bank of Greece’s website.
These measures aim to foster fairer banking practices and enhance the availability of affordable housing and credit.
Support for Vulnerable Groups
Addressing social inequalities, Mitsotakis announced critical initiatives for low-income pensioners and uniformed personnel:
- All eligible recipients of the EKAS low-income benefit—totaling 310,000 pensioners—will have free access to prescription medications starting in 2025.
- Benefits for the personnel who engage in work of potentially hazardous nature; Specific for the 150,000 members of the police, fire brigade, coast guard, and armed forces will be announced soon.
Source: Tovima.com
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