Greek Prime Minister Kyriakos Mitsotakis has urged the European Union to offer more flexibility in its fiscal rules to help member states manage the escalating costs of the global energy crisis. Mitsotakis emphasized that the crisis is a shared European issue that demands coordinated action rather than simply encouraging consumers to cut back on energy usage.
In Greece, the government is taking steps to alleviate the financial burden on households by increasing the diesel subsidy at the pump from 10 to 15 cents per litre over the next 15 days. This measure, combined with existing refinery discounts, is expected to provide a total relief of 20 cents per litre.
Further measures are anticipated as the government plans to introduce heating oil assistance by October 15. This will include an increase in the heating allowance, as the Greek government commits to reviewing the situation bi-weekly to ensure support remains within fiscal constraints.
At the EU level, Greece has proposed that the additional VAT revenue generated from higher prices should be used to provide targeted assistance to those affected by the energy crisis. Mitsotakis has presented this proposal to the European Commission and Eurogroup, arguing for a revision of EU fiscal rules to better align with the current energy landscape.