Mitsotakis unveils 8-point relief package: subsidies, payouts & debt relief measures

The government announces a €500 million intervention aimed at households, farmers, pensioners and debtors amid ongoing cost-of-living pressures despite stronger-than-expected fiscal performance.

In a political and economic environment marked by improved fiscal results but persistent household strain, the Greek government has announced a new package of relief measures.

The Prime Minister emphasized that the economy is performing better than expected, while acknowledging that the pressure on citizens remains significant.

He stated:

“The national economy is resilient and performing better than anticipated.”

At the same time, he stressed that the fiscal surplus should be returned to society in a structured way:

“This is a dividend of progress that the state is returning to society.”

The 8 Key Measures

The package includes interventions across energy, agriculture, family support, pensions, housing and debt relief:

• Extension of diesel subsidy (20 cents) until May
• Continuation of fertilizer subsidy (15%) until August
• One-off child benefit of €150 per child (end of June)
• Increase of annual support to €300 for low-income pensioners, uninsured elderly and disabled citizens
• Expansion of rent rebate eligibility covering more households
• Debt relief via removal of account seizures after 25% repayment and settlement of obligations
• Inclusion of €5,000–€10,000 debts in out-of-court settlement mechanism
• New 72-installment repayment scheme for debts overdue up to December 2023

Political Messaging

The Prime Minister framed the measures as both socially targeted and fiscally responsible:

“No state, no matter how strong, can address the consequences of a global economic crisis alone.”

He also acknowledged criticism regarding the scale of support:

“I know many will argue the measures are insufficient.”

This package reflects a broader European trend of governments redistributing fiscal surpluses after inflationary shocks and energy crises.

Key analytical points:

• Such packages typically offer short-term household relief rather than structural income growth
• The biggest pressure points in Europe remain food inflation, housing costs, and energy prices
• Debt restructuring measures tend to ease liquidity pressure but do not reduce total household indebtedness

Politically, these interventions often serve a dual purpose: economic stabilization and reinforcement of social cohesion ahead of future fiscal cycles or electoral milestones.

Source: pagenews.gr