Inflation: New government support package

A braver package of support measures, for interventions for rising fuel prices that will be activated on July 1, has been announced, while on the table is the granting of a second emergency financial aid tranche (“inflation voucher”) for vulnerable households.

Higher than expected tax revenues in April and May freed up more than 300 million euros in fiscal space, while the June tax revenues are expected to “unlock” the second emergency aid tranche.

According to information, the government plan to stem rising price problems provides:

1. Fuel Pass 2

The petrol allowance will be increased and will be granted for the quarter of July, August, September. The amount of aid will be over the 30-50 euros provided for in the first round of the Fuel Pass with the information indicating that the amounts may exceed 60 euros. Emphasis will be given to the island regions of the country. At the same time, income criteria rises to the level of 45,000 euros. The existing model will be followed for the granting of the allowance.

In particular, natural persons and self-employed persons will apply on the online platform provided that they meet the new limit for family income, own an active vehicle or motorcycle-moped that is insured and does not owe road tax.

2. Summer “gifts”

On the table of the financial staff is the new inflation voucher that is being considered for vulnerable households along the model followed at Easter. If the fiscal space is secured, then the money will be distributed to the beneficiaries in July.

3. Diesel fuel

The subsidy on the diesel fuel at the pump will continue after June with an increase of the subsidy amount which is at 12 cents per liter today. It is noted that with VAT the subsidy on diesel reaches today 15 cents per liter.

4. Islands – barren lines

A higher subsidy for liquid fuels is planned for the island regions of the country and an increase of the state subsidy for the barren lines in order to keep the prices of the ferry tickets low.