Greece is urging the European Union to allow more flexibility within its fiscal rules as countries grapple with the ongoing energy crisis. Prime Minister Kyriakos Mitsotakis emphasized that this crisis is a European challenge necessitating coordinated action, rather than merely reducing energy consumption.
To mitigate the impact of rising energy costs on Greek households, the government is implementing several measures. Among these is an increase in the diesel subsidy at the pump from 10 to 15 cents per litre over the next 15 days, with total relief expected to reach 20 cents per litre when factoring in refinery discounts. Additionally, Greece plans to announce measures regarding heating oil before October 15, including an increased heating allowance.
Mitsotakis has proposed to EU bodies that additional VAT revenue generated by higher prices be used to provide targeted assistance to those affected. This proposal has been presented to the European Commission and the Eurogroup as part of Greece’s efforts to adapt EU fiscal rules to the current energy climate.
The Greek government intends to continually assess the situation every two weeks, providing support within the available fiscal limits. Mitsotakis made it clear that the government’s immediate goal is to shield households from the pressures of escalating energy costs.