Government announces multitude of financial measures
The government interventions in the economy that the prime minister announced last weekend in Thessaloniki and the National Economy and Finance Ministry explained on Tuesday in detail add up to over 1 billion euros, aimed at boosting citizens’ incomes. They include pension raises, more allowances but only in a highly targeted fashion, and compensation for those hurt by natural disasters.
The bill for the new interventions amounts to €411 million for 2023 plus €613 million for 2024, according to what Minister Kostis Hatzidakis and his deputies told a press conference on Tuesday. Adding that to previous announcements on measures such as civil servants’ raises, a higher tax-free ceiling for families with children etc, the sum comes to €2.5 billion.
“There is no further leeway in the budget,” stressed Deputy Minister Thanos Petralias.
An additional budget of €600 million has been submitted to deal with natural disasters, while the total compensation costs are expected to be over €1 billion and will be extended in the following years, as the damaged buildings will be repaired and compensated for with state aid, said Petralias.
The new interventions include an increase in pensions by about 3% for 2024 and an extra allowance for 750,000 retirees with lower pensions, while from December the minimum guaranteed income will rise 8%, benefiting 225,000 people.
The special consumption tax on oil used in farming will continue for 2023, at a cost of €76 million, while the Market Pass will be extended to November and December for the regions of Thessaly and Evros, affected by the floods and forest fires respectively.
The heating allowance will continue this year, but without the extra discount at the pump, like last year. The maternity allowance for freelancers and farmers is increased to nine months, at the level of the minimum salary. The “three years” and any seniority allowance, suspended since 2012, will be unfrozen as of January 2024. That is also when the capital accumulation tax will be reduced from 0.5% to 0.2% and the stock exchange tax will be reduced by 50%.
The 30% reduction in the pensions of retirees who work is abolished and replaced by a contribution of 10% on the additional remuneration from work.
