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Greek PM pledges 10% food subsidy for families

Allbet登录网址 2022年12月23日 社会 3 0

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Helping hand: A farmer cleans bundles of leeks placed into slow-moving water in northern Greece. The country’s food purchases are burdened by inflation, prompting government aid. — AFP

ATHENS: Greek Prime Minister Kyriakos Mitsotakis has announced a 10% subsidy for every household’s food purchases to help counter the burden of inflation.

“From next February, the state will cover 10% of each household’s purchases for six months in supermarkets and food businesses (bakeries, pastry shops, fishmongers),” the prime minister told Parliament before a vote on the 2023 state budget amid a pre-electoral atmosphere.

The measure would cost €650mil (US$690mil or RM3.05bil), said Mitsotakis.

Elections in Greece are scheduled by July 2023, but Mitsotakis has said they could be held in the spring.

Individuals will receive a maximum of €220 (RM1,030).

For large families with several beneficiaries, the overall amount will be capped at €1,000 (RM4,685).

The measure is for households with an income of €24,000 (RM112,451) per couple, with an additional €5,000 (RM23,247) for each child.

Mitsotakis also said electricity and natural gas subsidies would remain in place.

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“A total of more than €8bil (RM37.4bil) will be allocated at the national level,” he said.

The 2023 state budget was approved Saturday, with 156 votes in favour out of a total of 299 votes.

It is the first in 12 years to be drawn up outside a framework of bailout supervision or enhanced surveillance. Greece emerged from financial aid plans in 2018.

But until earlier this year it remained under scrutiny by its creditors, the European Union and the International Monetary Fund, who closely monitored the promised reforms and the country’s finances.

Reports have stated that Greece’s economy is projected to grow at a slower pace next year after a strong rebound this year, thanks to tourism.

This is as soaring energy costs and inflation are expected to curb domestic demand and exports.

The country’s economic output is seen increasing by 2.1% next year from 5.3% this year, based on the government’s 2023 draft budget.

Next year, Greece is expected to achieve a 0.7% of gross domestic product primary surplus – which excludes debt servicing outlays – from a 1.7% budget deficit in 2022. — AFP


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