New “Exoikonomo” Programme to Inject €1.6B into Small Businesses and Vulnerable Households

The Greek government has announced a major expansion of the “Exoikonomo” energy‑saving scheme, injecting around €1.6 billion into targeted subsidies for very small businesses and vulnerable households as part of a broader €5.3 billion intervention package funded through the EU’s Social Climate Fund.

The announcement came yesterday in a press conference chaired by Deputy Prime Minister Kostis Hatzidakis, with input from 13 ministries, and sets out a broad strategy of climate action combined with social support and economic resilience.

What the New Programme Includes

Under the revamped “Exoikonomo” initiative:

• Nearly €1.2 billion of the total budget is earmarked for energy‑efficiency upgrades in 62,000 vulnerable households, including deep retrofit measures such as insulation, window replacement, shading systems, and heat pumps.
• 10,000 very small businesses — typically micro‑enterprises with high energy costs — will be supported with subsidies for building upgrades and replacement of outdated heating and energy systems, including heat pumps and solar thermal systems.

According to the government, subsidy levels may reach up to 80% for households in need, and a new option for phased repayments via electricity bills is introduced to ease upfront financial barriers.

EU Social Climate Fund: A Hybrid Strategy

The programme is part of Greece’s proposal to the EU Social Climate Fund, which aims to blend green transition goals with social justice by directing revenues from carbon markets toward those most affected by energy costs.

In total, the government’s climate plan — subject to approval by the European Commission — envisions 25 measures worth €5.3 billion aimed at:

• Energy upgrades of homes and buildings
• Social housing support
• Clean transport initiatives and broader social mobility support for citizens and micro‑businesses alike.

Greece’s programme is ambitious: it targets around 1.5 million households and 70,000 small firms overall, making it one of the largest national submissions in the EU in terms of per capita allocation.

Policy Rationale and Broader Context

Officials emphasize that environmental objectives must be balanced with social cohesion and practical economic support — a response to previous criticism that climate programmes often left behind vulnerable populations.

The revamped “Exoikonomo” builds on earlier versions of the scheme, addressing prior bottlenecks such as bureaucratic delays and limited uptake by improving funding levels and reducing barriers for eligible participants.

This effort also aligns with extended deadlines for existing EU energy‑efficiency programmes, with the government recently extending completion timelines for Recovery Fund energy projects to ensure broader participation.

Who Benefits?

The programme is designed to help those most affected by energy cost pressures:

• Households with low or moderate incomes, including families with children or members with disabilities.
• Very small enterprises (typically those with fewer than 10 employees and under €2 million in turnover) with high energy costs relative to revenue.

By coupling energy savings with financial relief, Greek authorities argue the initiative will lower energy bills, stimulate investment, and boost the resilience of vulnerable groups and micro‑businesses.

Looking Ahead

The “New Exoikonomo” represents a strategic shift in Greece’s approach to climate and social policy — linking environmental goals with inclusive economic support. Once approved by the European Union, it could serve as a model for balancing green transition goals with social equity across member states

Source: pagenews.gr