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Support measures: Subsidies with the dropper against soaring prices

Finance Minister Christos Staikouras announced the details of the four new support measures to households and businesses. The 3-month package with a total cost of 1.1 billion euros for some 3,200,000 includes a one-off allowance of 200 euros, subsidy for fuel and electricity bills.

The package aims to strengthen mainly low-incomers and middle-class households and small businesses.

“If we add to these the measures that are already being discussed in parliament (reduction of property tax ENFIA, subsidy for agricultural fuel, fertilizers, etc.), the cost amounts to 1.7 billion euros,” the FinMin said.

The support measures and how they translate in real life::

1. The subsidy for electricity is significantly increased, the subsidy for natural gas is continued and companies are also subsidised. The cost for April is 640 million euros.

The subsidy will be give to all primary residencies independent of annual income, square meters and power supplier. and consumption of up to 300KWh The April support will increase from 40 euros in March to 72 euros

For businesses, the subsidy in April will be 130 euros per MWh, and special subsidy to bakeries and SME.

1.1 subsidy for natural gas will be 20 euros per households and 20 euros per MWh for businesses

2. Financial support to 1.4 million vulnerable households before Easter:
– An additional 1.5 installment of child allowance is granted in April
– An allowance of 200 euros is granted to 677,000 low-income pensioners
– An allowance of 200 euros is granted to 35,000 uninsured elderly people
– An allowance of 200 euros is granted to the disabled
– A double installment is granted to the beneficiaries of the guaranteed minimum income.
The total cost amounts to 324 million euros.

3. Fuel subsidy is provided:
– There will be a direct fuel subsidy for three months to individuals and self-employed, taxpayers registered in Greece,  with a family income of up to 30,000 euros.

Sixty liters of fuel per month will be subsidized, at 0.22 euros per litre, while for island areas it will be 0.27 euros per liter. The minister said that the average monthly consumption is 54 liter.
– Diesel is directly subsidized with 0.15 euros per liter.
– In April, a 200-euro allowance will be granted to taxis.
The total cost amounts to 130 million euros.

In real life the monthly subsidy will be around 12 euros per vehicle (one vehicle per family) and it will be obtained either via an online platform and a kind of special Fuel Pass. The platform is scheduled to open in April. Alternative motorists can have the amount booked on their bank account.

More on the Fuel Pass here in Greek.

4. The installments for the payment of the “repayable advances” are increased to 96 from 60. Reductions for the repayment of government loan amounts remain, such as the 15 pct discount on the one-off repayment. According to the minister, the state has provided loans of 8.3 billion euros through “repayable advances” and will collect 3 billion euros.

The package was announced by PM Kyriakos Mitsotakis on Wednesday evening and it was received with ironic comments by Greeks on social media describing it as “alms.”

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