Greek Prime Minister Kyriakos Mitsotakis has urged the European Union to adopt more flexible fiscal rules to help member states cope with the ongoing energy crisis, which has significantly increased costs for households and businesses across Europe. Mitsotakis emphasized that the crisis requires a collective European response and cannot be resolved merely by asking consumers to reduce their energy consumption.
In response to the rising energy costs, Greece plans to increase the diesel subsidy at the pump from 10 to 15 cents per litre over the next 15 days. This subsidy, coupled with refinery discounts, is expected to offer a total relief of 20 cents per litre. Additionally, the Greek government is preparing to announce measures to support heating oil consumers before October 15, including an enhanced heating allowance. Mitsotakis stated that the government would continue to assess the situation every two weeks to provide support within the available fiscal limits.
At the European level, Greece has proposed that additional VAT revenue generated by increased prices be used to provide targeted assistance to those most affected by the energy crisis. Mitsotakis has presented this proposal to the European Commission and the Eurogroup, advocating for the adaptation of EU fiscal rules to better address the current energy landscape.
The Greek government’s initiatives reflect a broader concern that the energy crisis is not just a national issue but a challenge that requires coordinated action across the EU. By seeking greater flexibility in fiscal policies, Greece aims to alleviate the financial burden on its citizens while pushing for a united European strategy to tackle the crisis effectively.