The Greek government has earmarked 4.336 billion euros, or 2.2% of GDP, in measures to support households and enterprises against the energy crisis and rising inflationary pressures this year, up from 991 million (0.5% of GDP) in 2021, according to the Stability Programme submitted to the European Commission.
More specifically, the Finance ministry envisaged measures worth 3.614 billion euros to subsidize electricity and natural gas, 324 million in support to vulnerable households, 130 million euros in subsidies for fuel purchase and 90 million euros in subsidies for heating oil.
Finance Minister Christos Staikouras in comments made to “Parapolitika 90.1” radio station on Tuesday said the government’s intervention will be even more generous and noted that a good execution of the state budget has created fiscal room that will be exploited.
Under the base scenario included in the Stability Programme, the Greek economy will grow by 3.1% this year (4.5% in the state budget) and the inflation rate will rise by 5.6% on average (0.8% in the state budget). However, under the adverse scenario, the Greek economy could take a hit from a steep increase in oil, natural gas and commodities prices, pushing the inflation rate 2 percentage points higher. This could lead to a loss of one percentage point in GDP growth, 1.3 point in private consumption, 1.7 point in exports and 2.2 points in investments.