The measures announced by the Prime Minister were analysed by Minister of National Economy and Finance Kyriakos Pierrakakis, Deputy Ministers Thanos Petralias and Giorgos Kotsiras and the Secretary General for Financial Sector and Private Debt Management, Theonis Alambasi.
Kyriakos Pierrakakis first referred to the option of returning €500 million from the surplus back to society. The surplus, he said, is not the result of a conjuncture or over-taxation, but of “deep structural change”, noting that only 10% comes from indirect taxes.
According to the minister, the overperformance is linked to the growth of the economy, the reduction of unemployment, the increase in investment, the intensification of the fight against tax evasion, the digitisation of transactions, the enhancement of tax compliance through the digital job card.
“Balanced policy mix”
He presented the government’s dilemma between one-off interventions or permanent boost to citizens’ income, stressing that a “balanced policy mix” had been chosen.
Kyriakos Pierrakakis said the package of eight measures announced by the prime minister was structured along three axes: Supporting income, easing the cost of living and tackling private debt.
At the same time, he also referred to European rules on interventions in the energy crisis, noting that these should be “targeted, parameterised and temporary”, in line with the European Commission’s guidelines.
The private debt aspect was particularly emphasised, with the minister referring to the need for a “second chance” for citizens and businesses trapped in old debts. The measures for private debt provide for the possibility of lifting the seizure of bank accounts with the repayment of 25% of the debt and the settlement of the rest, the possibility of joining the extralegal for 300,000 citizens, so that it also covers debts from 5,000 to 10.000 euros and the possibility of adjustment up to 72 installments for old unregulated debts (debts until the end of 2023) with fixed terms, low installments and a uniform interest rate
Special reference was made to the aid to pensioners given every November, which increases from 250 euros to 300 euros, while the criteria are broadened. And the special aid to families with children, amounting to 150 euros per child, will be given without any application at the end of June.
On the energy side, the subsidy on diesel is extended for May, with an aid of 20 cents per litre. The cost of the measure amounts to €55 million and concerns owners of diesel vehicles. At the same time, the 15% subsidy on fat continues until August, at an additional cost of €23 million and about 250,000 farmers beneficiaries.
To support households, the income thresholds for rent reimbursement are increased: from 20.000 to 25,000 euros and from 28,000 to 35,000 euros, while for single-parent families the threshold rises from 31,000 to 39,000 euros, with an increase of 5,000 euros per child. The measure, costing 25 million euros, is estimated to cover an additional 70,000 tenants, bringing the total to 1 million.
The Minister of Economy and Finance also announced a revision of forecasts for the Greek economy, lowering the 2026 growth estimate to 2% from 2.4% and pointing to a temporary rise in inflation due to international pressures, while for 2027 he is revising growth upwards to 2% from 1.7%, with a parallel deceleration in prices. At the same time, the co-financed Public Investment Programme is strengthened, rising to €7 billion in 2027 from €6.35 billion, with the contribution of European funds.
In addition, an extraordinary financial aid of 150 euros per child is planned for the end of June, at a total cost of 240 million euros. euros and about 975,000 households beneficiaries.
For pensioners, support is increased from 250 to 300 euros net every November, while income and asset criteria are widened. The measure affects pensioners, uninsured seniors and disabled people, at a cost of 198 million euros and an additional 420,000 beneficiaries, bringing the total to 1.87 million.
Special attention is also being paid to private debt. There is a possibility of lifting the seizure of bank accounts under certain conditions, an expansion of the extrajudicial mechanism to cover debts from 5,000 to 10,000 euros, and the inclusion of old unregulated debts in a regulation of up to 72 instalments. These interventions affect about 1.3 million individuals and 284,000 legal entities, with total debts reaching €95.3 billion.
The package of measures aims to alleviate economic pressures and support wider social groups at a time of increased needs.
“The economy is not just holding up – it is doing well”
Closing his statement, Kyriakos Pierrakakis stressed that the Greek economy is maintaining its momentum and that the government’s interventions allow the state “to be present next to every citizen, family and business.”
“This is our stigma and we will stick to it,” he concluded.
Watch the presentation here
Cotsiris: “Balanced policy mix with a focus on private debt”
At the start of the press conference on the specifics of the support measures announced by the Prime Minister, Deputy Minister of Economy and Finance, responsible for Fiscal Policy, Giorgos Kotsiras, welcomed the journalists and referred to the presentation of the Minister of National Economy and Finance Kyriakos Pierrakakis, who took over the main presentation of the package.
Then, in the context of the specification of the interventions, the economic policy philosophy was presented, with Mr. Kotsiras integrating the new measures into the overall strategy of fiscal stability and social support.
As emphasized, the economic policy is now reflected in measurable results, which are linked to the transition of the Greek economy “from deficits to surpluses, from crisis to stability and from stability to the fair distribution of growth.”
In this context, it was pointed out that a new fiscal space has been created, part of which is already being directed to interventions for the energy crisis, while most of it is being returned to society through targeted measures.
Special emphasis was placed on the fact that the surplus is not attributable to overtaxation or cyclical factors, but is the result of structural changes, such as increasing employment, boosting investment, tackling tax evasion and digitalising economic activity.
Measures with a balance between permanent and temporary interventions
According to what was presented, the government opts for a “balanced policy mix”, combining permanent support measures for lasting needs and temporary targeted interventions to address cyclical pressures, such as those related to the energy crisis, in full compliance with the European framework for targeted, temporary and specific support measures.
Private debt interventions – “Second chance” for debtors
A key point of the briefing was the new framework for dealing with private debt, which, it was underlined, aims to give “deep breathing space” to households and businesses.
Cotsiras said the government has listened carefully to the requests of citizens and professionals who are faced with debts from previous years, which are currently acting as an obstacle to their economic restart.
In this context, there is provision for:
- The possibility of lifting the attachment of a bank account, provided that the debtor has repaid at least 25% of the debt and at the same time has entered into an arrangement for the remaining amount.
- pensioners,
- people with disabilities,
- uninsured seniors.
- For unmarried persons: from 14.000 to 25,000 euros of income
- For married: from 26,000 to 35,000 euros
- Real estate: from 200,000 to 300,000 euros (single) and from 300,000 to 400,000 euros (married)
- Single person: from 20,000 to 25,000 euros
- Married person: from 28,000 to 35,000 euros (+5,000 euros per child)
- Single-parent families: up to 39,000 euros (+5,000 euros per child)
- 1 child: 150 euros
- 2 children: 300 euros
- 3 children: 450 euros
- 4 children: 600 euros
- 5 children: 750 euros
- Growth 2026: from 2.4% to 2%
- Growth 2027: from 1.7% to 2%
- Inflation 2026: from 2.2% to 3.2%
- Inflation 2027: to 2.4%
- There is a margin of 0.1% of GDP for 2026 (around €200 million)
- And 0.4% of GDP for 2027 (around €1 billion).
After the new interventions:
- There is a margin of 0.1% of GDP for 2026 (around €200 million)
- And 0.4% of GDP for 2027 (around €1 billion). €1.0 billion)
How the fiscal space was created
The total space of €800 million comes from:
- €200 million of active revenue measures
- €600 million of permanent expenditure savings
Among the active interventions are the extension of the digital job card, the taxation of online gambling and the e-customer card.
“Return to those most in need”
Closing his presentation, Thanos Petralias stressed that the available fiscal space is being returned in a targeted manner to social groups most affected:
“Pensioners, people with disabilities, renters and families with children are the ones who are supported on a priority basis,” he said.
Alabasi: The new arrangements are the most decisive for the definitive settlement of private debt
The importance of the new interventions on private debt was particularly emphasised by the Secretary General for Financial Sector and Private Debt Management of the Ministry of Finance, Theoni Alambasi, stressing that the measures announced constitute “one of the most decisive moves” for the comprehensive and definitive settlement of the problem.
Alabasi stressed that the new arrangements come to strengthen an already active framework, which has yielded significant results in recent years.
As she said, through the extralegal mechanism some 60,000 arrangements have already been made, involving initial debts of €18 billion, reflecting – as she said – the functionality of the tool in practice.
At the same time, he noted that the private debt to financial institutions has decreased significantly, falling below 26 billion euros compared to 2019, which constitutes a real de-escalation of the phenomenon.
He made a special reference to the envelope of debts to the State and especially to the ADSE, where – as he said – “most of the problem is highlighted”.
According to the data she cited, about 80% of the total overdue debts, which currently amount to €113 billion, relate to old obligations up to 2019.
Alabasi described the two key interventions – the expansion of the extrajudicial mechanism and the 72-dose regulation – as tools that for the first time give “a definitive possibility of settlement” for both individuals and businesses.
As he explained, these arrangements do not constitute fragmentary solutions, but are part of a single framework of consolidation, which allows for the sustainable repayment of debts on realistic terms.
At the same time, he stressed the importance of the possibility of lifting the attachment of bank accounts, noting that this arrangement restores debtors to normal financial functioning, facilitating the repayment of their obligations.
In response to questions, the secretary general noted that the new tools can work in a complementary manner, covering different categories of debtors.
As she explained:
- The out-of-court mechanism is aimed at more complex and higher debts, with now wider access as the inclusion threshold is reduced from 10.000 to 5,000 euros.
- 72 instalments are a simpler and more direct tool for a broader base of debtors, individuals and small businesses.
According to her,the combination of the two interventions dcreates an integrated framework for private debt management, allowing for a targeted approach depending on the debtor’s profile.
Closing her statement, Ms. Alambasi stressed that the main objective of the measures is to reintegrate debtors into economic activity in a sustainable manner, so that they can meet their obligations without remaining trapped in old debts.
“These interventions provide a real prospect of a solution and not just temporary facilities”, she noted.
As emphasized, the aim of this regulation is to restore citizens’ access to the banking system and enhance the possibility of financial reintegration, in a framework that does not treat cases horizontally, but emphasizes the realistic possibility of repayment.
Petralias: “800 million. 800 million fiscal space – returned to pensioners, families and tenants”
With extensive reference to the fiscal strategy and the new support measures, Deputy Minister of National Economy and Finance, responsible for Fiscal Policy, Thanos Petralias, presented the framework in which the package of interventions is part of, noting that the available fiscal space of 800 million euros is not enough. 800 euros is targeted at social groups most affected by economic pressures.
“Importance of private debt measures”
Starting his presentation, Mr Petralias focused in particular on private debt measures, which he described as crucial “in view of current developments and the new inflation crisis”.
As he stressed, the regulations for 72 instalments, the lifting of the seizure of bank accounts and the expansion of the out-of-court mechanism for smaller debtors, create an important safety net for businesses and freelancers, facilitating their financial restart.
Fiscal measures: Extensions and targeted aid
The Deputy Minister then went on to present the fiscal measures, noting that the first two measures are extensions of already existing actions.
Extension of subsidy on diesel
The subsidy on diesel is extended for May, with a total aid amount of 20 cents per litre (16 cents plus VAT), at a fiscal cost of €55 million.
In view of the slight deflation of the international price of Brent oil, Mr. Petralias stressed that the government chose to maintain the subsidy because of the strong fluctuation and uncertainty in the markets, with the aim of protecting the supply chain and price stability.
Subsidy extension for fertilizers
Along the same lines, the fertilizer subsidy, which covers 15% of the value of invoices for professional farmers, is extended until August.
The intervention covers the period June-August, at a total cost of €41 million (of which €23 million is additional expenditure), as – as noted – the international price of urea remains high with no substantial de-escalation.
Pensioners’ support: ‘The biggest permanent fiscal intervention’
Petralias placed particular emphasis on the measure of financial support for pensioners, which he described as the biggest permanent fiscal intervention of the period, at a cost of €200 million.
Increase in aid and expansion of beneficiaries
The aid is increased from 250 to 400 euros net and is extended to:
At the same time, the income and property criteria are significantly expanded:
Increase of beneficiaries to 85%
As mentioned, the beneficiaries are increased from 1.24 million to 1.66 million. pensioners over 65 years of age, while the total including disabled and uninsured seniors reaches 1.87 million people.
Coverage now reaches 85% of pensioners.
The Deputy Minister also recalled that from 2027 pensions will be increased based on GDP and inflation, without offsetting personal difference.
Rent reimbursement: Consolidation of income thresholds
Significant change is also recorded in the rent rebate measure, where the income criteria are consolidated with those for pensioner support.
New income limits
The measure now covers 1.02 million people.
The measure covers 1.02 million households out of 1.19 million households renting a home, i.e. about 86%.
The budgetary cost amounts to €25 million.
At the same time, a special arrangement for about 50,000 doctors and nurses was announced, who will receive double rent reimbursement without income criteria.
Exceptional support for families with children
Another key measure, amounting to €240 million, will be introduced. 240 euro, concerns the extraordinary financial support for families with children, which will be paid at the end of June.
Covering 80% of families
The measure covers about 80% of families with children (975,000 households) and is based on the same income criteria as the other interventions.
The support will be granted automatically, without application, based on 2025 tax returns and with the necessary condition of IBAN registration.
Aid amounts
The measure, he stressed, aims to relieve households from inflationary pressures.
Macroeconomic forecasts and fiscal outlook
Mr. Petralias also presented the revised macroeconomic estimates:
The primary surplus is estimated at 3.2% for 2026 and 2027.
At the same time, government debt continues its deceleration, falling from 130.8% to 103.3% in 2027.
Fiscal space and expenditure target
A key point of the presentation was the “net expenditure target”, which – as highlighted – is the key indicator of fiscal surveillance in the EU.
After the new interventions:
