Μake us preferred on Google The Greek government will increase the heating allowance without widening eligibility, Finance Minister Kyriakos Pierrakakis said Monday, offering further details on as of yet unannounced measures that the government is preparing to address higher energy costs.
The income and property criteria used to determine eligibility will remain unchanged, Pierrakakis told SKAI television, meaning the number of households receiving the benefit will not increase. Instead, those who already qualify will receive a larger payment.
The comments provided further detail on an announcement by Prime Minister Kyriakos Mitsotakis last week, when he said the government planned an across-the-board increase in heating allowances as part of a wider package to reduce winter fuel costs. Pierrakakis made clear that the increase would apply to the amount paid to existing recipients, rather than to the number of households eligible for the benefit. “The criteria will not change. The number of beneficiaries will not change. The amount that reaches their pockets will increase,” he said.
Pierrakakis, who also serves as president of the Eurogroup, singled out northern Greece, including Kozani and Drama, where colder winters mean higher heating needs.
Focus on the Price at the Pump
Pierrakakis did not specify how the government intends to bring the retail price of heating oil down, leaving open whether the intervention would come through fuel taxes, subsidies or another form of support. “We don’t care about the mechanism. We care about the price on the board,” he said, referring to the figure displayed at gas stations.
The discussion has also focused on the Special Consumption Tax. Pierrakakis said the levy brings in about €4 billion a year, and argued that any reduction would have to be considered alongside the cost of other government commitments.
He also criticized opposition proposals for broader tax cuts and additional benefits, saying such measures could not be considered independently of their fiscal cost. “In politics, you have to be able to add, subtract, multiply and divide, especially at the Finance Ministry,” he said. “It is not a wish list.”
Further Measures Depend on Fiscal Room
Pierrakakis said any additional support would depend on the amount of fiscal room available, while pointing to government estimates that stronger tax collection and higher employment have improved the public finances. According to the minister, measures against tax evasion have generated €2 billion in additional revenue, while employment has increased by 600,000 since 2019, which has also provided a further boost to government coffers. He also claimed that Greece was third in Europe for energy-related support as a share of GDP. “Reserves are not unlimited,” he said. “We operate on the basis of what the economy can afford.”
Previously Announced Support Due in November
Pierrakakis also referred to more than €1.1 billion in measures already scheduled for November. He said about €880 million would go to pensioners, while roughly €250 million would be used for the refund of one month’s rent. He also referred to the €2.2 billion package announced at the Thessaloniki International Fair.
He closed by acknowledging that, for households, the effects of government policy is ultimately measured less through headline economic indicators than through everyday spending power. “The only macroeconomic indicator that matters to people watching us is what happens in their wallet and at the supermarket checkout,” he said.
Source: OT.gr
