Greek Prime Minister Kyriakos Mitsotakis is urging the European Union to offer more flexibility under its fiscal rules to help member states navigate the ongoing energy crisis. Mitsotakis emphasized that the crisis is a European-wide issue that requires a collective response, rather than simply asking consumers to cut back on energy usage. His primary concern is alleviating the financial burden on Greek households due to rising energy costs.
In response to the crisis, Greece is implementing a series of support measures. The government plans to increase the subsidy for diesel at the pump from 10 to 15 cents per litre in the coming weeks, with additional refinery discounts expected to bring total relief to 20 cents per litre. Furthermore, measures concerning heating oil, including an increase in the heating allowance, are slated to be announced before October 15. Mitsotakis assured that the government will reassess the situation every two weeks to ensure support remains within fiscal constraints.
On a broader scale, Greece has proposed an initiative at the EU level to utilize additional VAT revenue generated by higher prices to provide targeted financial assistance to households and businesses. Mitsotakis has presented this proposal to the European Commission and the Eurogroup, advocating for an adaptation of EU fiscal rules to better suit the current energy landscape.