Kikilias: €300M into the market – €56M shield to keep ferry fares down amid war

Greece is stepping into crisis-management mode as war-driven uncertainty and energy disruptions ripple through the economy, prompting a €300 million support package aimed at cushioning consumers and key sectors. At the heart of the intervention lies the ferry industry, with €56 million allocated to prevent ticket prices from spiraling.

Shipping Minister Vasilis Kikilias struck a stark tone, warning: “No one knows what tomorrow will bring. This is war, and the situation is far from normal.”

Ferry sector under pressure

Ferry transport remains a backbone of Greece’s economy, directly tied to tourism, regional connectivity, and cost of living—especially for island communities.

The government’s move aims to stop rising operational costs from being passed on to passengers: “We are allocating €56 million so that families and travelers are not burdened,” Kikilias stressed.

The measure follows last year’s €27 million support, now more than doubled, reflecting intensifying pressure from fuel prices and global instability.

War and energy shocks fuel inflation risks

Ongoing tensions in the Middle East and attacks on energy infrastructure are already feeding into higher fuel and transport costs.

Kikilias emphasized the unpredictability: “The worst thing that can happen is war. Forecasts are no longer reliable.”

This volatility is hitting shipping hard, raising operational risks and costs across maritime routes.

Safety of Greek seafarers in focus

Beyond economics, the government is closely monitoring maritime security:

• 138 Greek-owned vessels in the wider region
• 11 Greek-flagged ships in the Persian Gulf
• 2 vessels in the Gulf of Oman

“The top priority is the safety of our seafarers,” the minister underlined, noting constant communication with ships in high-risk zones.

Analysis: Preemptive support in a fragile summer outlook

The intervention reflects a measured, strategic response—supporting the economy without exhausting fiscal reserves too early.

However, its effectiveness will depend on:

• The trajectory of geopolitical tensions
• Energy price developments
• The resilience of tourism demand

Ferry prices act as a key transmission channel of inflation in Greece. Keeping them stable is critical to shielding households and sustaining the country’s tourism-driven recovery.

Source: pagenews.gr