The government is ready to implement new support measures as today’s surplus announcements pave the way for additional interventions.

More specifically, government spokesman Pavlos Marinakis said the government was optimistic about the surplus, stating yesterday, Tuesday, that if the estimates are confirmed, the Prime Minister will make announcements on new support measures immediately, even today. “Tomorrow the official announcements will be made. There is a structured optimism that we will have good news and if confirmed, the Prime Minister will make announcements on new support measures, immediately. We are doing as much more as we are allowed to do,” he told radio station Parapolitika.

It is reported that in his Sunday post Kyriakos Mitsotakis had noted, speaking about the war turmoil, that “we are on alert for further effects from the rise in inflation,” adding that “if necessary, we will take additional support measures for businesses and households, examining the fiscal margins.”

Exceeding the primary surplus target in 2025 for the fourth consecutive year creates the right conditions for extending household and business support measures or even new ones if deemed necessary. This overshoot is reportedly estimated at at least one percentage point, without ruling out the possibility of the primary surplus reaching 5% of GDP against an estimate of 3.7% in the 2026 budget.

This means that the primary surplus of €9.2 billion projected will be between €11.5 billion and €12 billion. That is higher by 2.3 to 2.8 billion euros. This does not mean that the government will be able to use the entire amount. That is why the economic staff has indeed been in consultations with the Commission for some time now to finalise the amount that will be deemed to be of a “permanent” nature (possibly below €1 billion).

This development is crucial, as the surplus creates the necessary fiscal space for the activation of support measures aimed at absorbing inflationary pressures on a number of goods and in the energy sector. Furthermore, the Government, depending on the needs that arise, is placing particular emphasis on interventions of a permanent nature.

Measures on the table

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Without deviating from the principle that measures should be temporary, targeted and not lead to fiscal “derailment”, the economic staff seems to be considering other measures, depending on developments:

  • Extension of the 20 cents a litre subsidy at the pump for diesel for the month of May. A measure that works to the benefit of consumers and professionals. The cost of the subsidy for the month of April is estimated at around 51 million euros, while if the measure is extended to May, the cost will total 106 euros.
  • Extension of the subsidy to 15% of the amount of farmers’ purchase vouchers for fertilisers. The 15% is calculated from the final amount of the VAT invoice issued between 15 March and 31 May for two months. Beneficiaries are natural persons, professional farmers and legal entities active in the primary sector.
  • New round of Fuel Pass. Applications for the aid for the purchase of fuel or for use in public transport or taxis can be submitted until 30 April. Depending on the development of fuel prices, the possibility of another round of fuel pass is open.

Consumers are set to be relieved by an extension to the cap on the profit margin on food and fuel, something that has been left open by the Ministry of Development.

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