Amid the ongoing global energy crisis, Greek Prime Minister Kyriakos Mitsotakis has called for greater flexibility in European Union fiscal rules to assist governments in supporting households and businesses. Emphasizing the challenge as a broader European issue, Mitsotakis argues that coordinated action is necessary and reducing consumer energy consumption alone won’t suffice to address the crisis.
To alleviate the pressure of rising energy costs on Greek households, the government has announced an increase in the diesel subsidy at the pump, raising it from 10 to 15 cents per litre over the next 15 days. When combined with refinery discounts, this relief is expected to total 20 cents per litre. Additionally, the government plans to introduce measures to aid with heating oil costs by October 15, including an increase in the heating allowance. Mitsotakis assures that the situation will be reviewed every two weeks to provide support within the available fiscal limits.
On a broader EU level, Greece has proposed using the additional VAT revenue generated by higher prices to offer targeted assistance to households and businesses. This proposal has been presented to the European Commission and Eurogroup, with Mitsotakis advocating for an adaptation of EU fiscal rules to better suit the current energy landscape.
The Greek government is taking these steps as part of its immediate priority to prevent the surge in energy costs from burdening its citizens further. Mitsotakis’s call for EU flexibility reflects a need for collective action and reform at a European level to effectively manage the energy crisis.