Reach of ‘social dividend’ may grow

Finance Ministry sources have noted that the so-called social dividend will go toward the weakest social groups, such as the unemployed and people on low wages, and not just retirees with low pensions.

The amount to be handed out from the primary surplus overrun is estimated to reach or even exceed 400 million euros. The draft budget submitted to the European Commission puts the figure at 0.2 percent of gross domestic product – i.e. around 380 million euros – and indications to date regarding the course of revenues lead to the conclusion it may well head even higher.

The same sources speak of particularly encouraging takings from the debt settlement program with up to 120 tranches, which can guarantee an increased social dividend. Nevertheless they also cite a minimum figure of 250 million euros.

The definitive decisions about who precisely will receive the handouts have not yet been made, and Prime Minister Kyriakos Mitsotakis will have the final word. The creditors have said the decisions rest with the government, but have clearly expressed their preference for the handouts to be given to the financially weakest, with low or no salaries.