Greek PM pledges 10-percent food subsidy for families

ATHENS: Greek Prime Minister Kyriakos Mitsotakis announced on Saturday a 10-percent subsidy for every household´s food purchases in order to help counter the burden of inflation.

“From next February, the state will cover 10 percent 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.

“The measure comes to 650 million euros ($690 million), an amount that will be covered by taxating the surplus income of the two Greek refineries,” Mitsotakis explained.

Individuals will receive a maximum of 220 euros. For large families with several beneficiaries, the overall amount will be capped at 1,000 euros.

Beneficiaries will be households with an income of 24,000 euros per couple, with an additional 5,000 euros for each child.

According to the finance ministry, the energy crisis and the economic consequences of the war in Ukraine will continue to affect the Greek economy through inflation and the slowdown of economic growth in the eurozone.

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

“A total of more than eight billion euros will be allocated at the national level,” he said.

“Three and a half billion euros will be directed to households and 4.8 billion to businesses. The electricity and natural gas subsidies will continue, while another 500 million euros will be allocated for the increased heating allowance.”

The 2023 budget is the first in 12 years that was drawn up outside a framework of bailout supervision or enhanced surveillance.