The omnibus bill from the Ministry of National Economy and Finance (YPETHO) is in the final stages of consultation; it includes support measures for economically vulnerable citizens totaling 800 million euros, most of which will be implemented next month.
These are both emergency and permanent measures targeting households, retirees, families, farmers, and those in debt to the government.
The omnibus bill also includes provisions to address the housing crisis, as well as stricter regulations for short-term Airbnb-style rentals in Thessaloniki.
Housing
The government is moving to ban the issuance of new short-term rental permits in the city center, in an effort to curb housing pressure and the surge in rents seen in recent years. The measure is expected to take effect immediately after the law is passed.
The economic team considers this intervention crucial for the housing market in Thessaloniki, as the rapid growth of short-term leases has significantly reduced the availability of housing for long-term rental, particularly in the city’s historic center.
The proposed legislation will also include a provision for the reimbursement of two months’ rent to public servants who work far from their permanent place of residence. This support is primarily intended for doctors, teachers, and nurses working in rural areas who face increased housing costs due to relocation.
Subsidies
The package of measures also includes:
- The emergency financial aid of 150 euros per child, which will be paid out at the end of June to nearly 1 million families.
- An increase in financial assistance from €250 to €300 for retirees over 60, with a simultaneous expansion of the income and asset criteria. Specifically, for unmarried individuals, the annual income threshold rises to €25,000 from €14,000, and the assessed value of real estate to €300,000 from €200,000. For married couples or those in a civil partnership, the annual family income is adjusted to €35,000 from €26,000, and the value of real estate to €400,000.
- Widows over the age of 60 are also eligible for the €300 subsidy, provided that the widow’s pension is their sole source of income
- The adjustment of income thresholds for rent reimbursement. The threshold rises from 20,000 to 25,000 euros and from 28,000 to 35,000 euros, while for single-parent families it reaches up to 39,000 euros, with an additional 5,000 euros per child.
- The extension of the fertilizer subsidy through August, covering 15% of the cost for approximately 250,000 farmers.
Debts
- The lifting of bank account seizures for debtors who are restructuring their debts. The seizure of a debtor’s bank account may now be lifted if 25% of their debt has been paid off and their other obligations to the tax authorities have been settled.
- The expansion of the scope of the out-of-court mechanism to include debts ranging from 5,000 to 10,000 euros, a measure affecting approximately 300,000 individuals.
- The option to settle old, unsettled debts in up to 72 installments. The measure applies to 1.3 million individuals and 284,000 legal entities with €95.3 billion in debts that became due by December 2023, which can now be included in a 72-installment plan, on the sole condition that any new debts falling due as of January 1, 2024, are repaid or settled.
According to the ministry’s plan, the omnibus bill will be accompanied by a supplementary budget of 800 million euros to cover the fiscal cost of the measures.