Amid the ongoing global energy crisis, Greek Prime Minister Kyriakos Mitsotakis is advocating for increased flexibility in European Union fiscal rules to better support households and businesses. Mitsotakis emphasizes that the energy crisis presents a Europe-wide challenge, necessitating coordinated action beyond merely urging consumers to cut down on energy consumption. He underscores the immediate goal of preventing escalating energy costs from further burdening Greek households.
In response to the crisis, Greece plans to boost its diesel subsidy at the pump from 10 to 15 cents per litre over the next 15 days, with total relief, including refinery discounts, anticipated to reach 20 cents per litre. Additionally, the Greek government is set to unveil measures related to heating oil by October 15. These will include an increase in the heating allowance, with the government committed to reviewing the situation biweekly to offer support within its fiscal limits.
On an EU level, Greece has proposed using the additional VAT revenue generated by rising prices to deliver targeted aid to households and businesses. Mitsotakis has presented this proposal to the European Commission and Eurogroup, arguing that current EU fiscal rules need to adapt to the prevailing energy environment.
The Greek government’s approach reflects a broader call for EU-level solutions to the energy crisis, highlighting the need for flexibility and innovative fiscal measures. As energy prices continue to pose significant challenges, Greece aims to mitigate the impact on its citizens while advocating for a unified European response.
