Greek Prime Minister Kyriakos Mitsotakis has urged the European Union to adopt more flexible fiscal rules to enable governments to better support households and businesses grappling with the global energy crisis. Mitsotakis emphasized that the energy challenge is not just a local issue but a broader European one that necessitates coordinated action beyond simply asking consumers to reduce energy consumption.
In response to rising energy costs, the Greek government is implementing measures to alleviate the financial burden on its citizens. One immediate step is the increase of the diesel subsidy at the pump from 10 to 15 cents per litre over the next 15 days. With additional refinery discounts, the total relief for consumers is expected to be around 20 cents per litre.
Further, the government plans to introduce heating oil measures before October 15, which will include an increase in the heating allowance. Mitsotakis assured that his administration would continue to evaluate the situation every two weeks to provide necessary support within the available fiscal limits.
On the EU front, Greece has put forward a proposal to use the additional VAT revenue generated by higher prices to offer targeted assistance to households and businesses. Mitsotakis has discussed this proposal with the European Commission and the Eurogroup, advocating for an adaptation of EU fiscal rules to better address the current energy environment.