Greek Prime Minister Kyriakos Mitsotakis has urged the European Union to adopt more flexible fiscal rules to enable governments to better support households and businesses impacted by the ongoing energy crisis. Mitsotakis emphasized that this crisis is a Europe-wide issue that requires a collaborative approach rather than relying solely on consumer energy conservation.
Addressing the immediate needs in Greece, Mitsotakis announced an increase in diesel subsidies at the pump from 10 to 15 cents per litre, effective over the next two weeks. When combined with discounts from refineries, the total relief is expected to reach 20 cents per litre. Additionally, the Greek government plans to introduce measures for heating oil before October 15, which will include an increase in the heating allowance. Mitsotakis assured that the government would continuously assess the situation every two weeks to ensure ongoing support within Greece’s fiscal capabilities.
On a broader EU level, Greece has proposed the utilization of additional VAT revenue—generated by the surge in energy prices—to offer targeted assistance to those affected. Mitsotakis has presented this proposal to the European Commission and the Eurogroup, arguing for the need to adapt EU fiscal regulations to the current energy landscape.
The Greek Prime Minister’s proposals underscore the urgent need for a coordinated European response to the energy crisis, highlighting the role of fiscal policy in mitigating the impact on citizens and businesses throughout the continent.