Μake us preferred on Google Greek industry is again looking to Prime Minister Kyriakos Mitsotakis for relief from high electricity prices, with manufacturers hoping he will use the annual general assembly of the Hellenic Federation of Enterprises (SEV) in Athens on Tuesday to commit the government to a new package of support. Although the event’s official focus is productivity and Greece’s place in a changing Europe, energy costs are expected to dominate the discussion.
Government officials have been considering a support package worth about €100 million for industrial companies struggling with high electricity costs. The proposal would draw on European Union rules that give member states greater flexibility to provide state aid during the current energy crisis. Under the plan being discussed, the government could subsidize up to 70% of the average annual wholesale electricity price for half of a company’s yearly power consumption. Officials are also considering a minimum reference price of €60 per megawatt hour.
Several EU countries, including Germany, Italy, Bulgaria, Slovenia, Austria and Ireland, are already making use of the new state aid mechanisms, according to a recent pointed statement by 16 Greek industry associations, that have called on the New Democracy government to intervene.
Hopes for an announcement grew after SEV President Spyros Theodoropoulos and other federation officials met recently with Environment and Energy Minister Stavros Papastavrou and Deputy Minister Nikos Tsafos. However, it is still unclear what the Prime Minister will do later this afternoon. He could either set out the measures in detail on Tuesday or make a more limited announcement that includes the proposed €100 million package.
Industry leaders had similar expectations at last year’s SEV assembly, when they were also waiting for measures to bring down electricity costs. Mitsotakis stopped short of announcing a package at the time, saying only that support would follow. It arrived six months later, with higher compensation for carbon dioxide costs and lower regulated electricity charges, measures that industry groups said fell short of what was needed.
Mitsotakis is also expected to point to a letter he wrote to Ursula von der Leyen, asking the president of the European Commission to let governments use additional value added tax revenue generated by higher fuel prices to fund support measures. His speech is also expected to touch on changes already introduced or being prepared under Greece’s new developmen framework, as well as revisions to the planning rules governing industrial activity.
Tuesday’s SEV event will focus on “A Productive Greece in a Changing Europe.” Mitsotakis and SEV Chairman Spyros Theodoropoulos are due to speak, with President Konstantinos Tassoulas also attending. François Villeroy de Galhau, honorary governor of the Bank of France, will be the guest of honor and take part in an on stage discussion.
With information from OT.gr
