Amid a challenging global energy crisis, Greek Prime Minister Kyriakos Mitsotakis is advocating for increased flexibility in European Union fiscal rules. Mitsotakis argues that coordinated action is necessary to address the crisis, which has led to rising energy costs impacting households and businesses across Europe. He emphasizes that simply urging consumers to reduce energy consumption is insufficient to tackle the broader issue.
In response to the crisis, Greece is implementing several domestic support measures. The government plans to raise 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 including refinery discounts. Additionally, measures concerning heating oil are set to be announced before October 15, which will include an increase in the heating allowance. Mitsotakis assures that the government will continue to review the situation bi-weekly to provide support within the nation’s fiscal capacity.
At the European level, Greece has proposed a strategy to utilize additional VAT revenue collected due to higher prices as a means to offer targeted assistance to those most affected by the crisis. Mitsotakis has presented this proposal to the European Commission and the Eurogroup, urging for an adaptation of the EU’s fiscal rules to better suit the current energy landscape.
By pushing for these changes, Mitsotakis aims to alleviate the economic burden on Greek citizens and businesses, while also calling for a European-wide strategy to address what he sees as an issue that transcends national borders and requires pan-European solutions.