Returning from the US and speaking at the Cabinet, the Prime Minister emphasizes that Greece is considered a pillar of stability. At the same time, he points out the global concern over the instability caused by geopolitical conflicts, energy turmoil and the crisis in the bond market.
The government is moving on three axes: supporting society without putting fiscal stability at risk, reviewing the measures every two weeks in combination with the measures announced at the Thessaloniki International Fair, and European initiatives. In this context, he sent a letter to the President of the Commission requesting extraordinary fiscal flexibility for the member states.
In detail:
Good morning, ladies and gentlemen colleagues. I am returning from the United States, together with the Minister of Foreign Affairs, and from our contacts there, having recorded two facts.
On the one hand, Greece’s upgraded position as a pillar of stability but also of economic progress, amid international inflation and a very major crisis in the global bond market.
And on the other, obviously, the great global concern that exists over the escalation of this instability. Indicatively, I mention that yesterday the borrowing cost of the United States reached levels that the US had not seen since 2002.
You will remember that in the speech at the Thessaloniki International Fair we had spoken of a difficult winter. Indeed, geopolitical uncertainty, from the conflicts in Ukraine, in Hormuz, in the Red Sea, unfortunately continues and persists.
It is an uncertainty that translates into international economic and energy turmoil. The slightest tension in a pipeline, at some oil field in the Gulf, sends oil prices soaring every so often. The result is the automatic increase in transport costs, raw materials, and ultimately the products that end up on supermarket shelves.
It is, therefore, a chain storm, which is knocking on the door of all states, essentially testing the limits of their handling. That is why the government’s choice is to proceed through this difficult international juncture on the basis of three non-negotiable objectives.
First, to support society, without however undermining the resilience of the economy. The last thing we would need is a national crisis within a global crisis.
We will not risk, therefore, under any circumstances all that we have achieved in recent years, nor are we going to endanger international confidence, which is built with great difficulty but also collapses very easily. And this despite the inflation of promises unfortunately circulated by the opposition.
Second, as the situation continues to be extremely fluid, our interventions -in consultation with the Ministry of Finance, but also with the competent Ministries- will now be examined every two weeks.
In combination, however, with the measures of the Thessaloniki International Fair, which we will also have the opportunity to discuss today, because they also require legislative ratification. All the measures of the Thessaloniki International Fair, I want to remind you, essentially concern supporting disposable income, so that we can give citizens breathing space and resilience in the face of prolonged high prices.
From the permanent increase in support for pensioners to the annual rent refund and from care for the family to support for public employees, as well as the measures we have taken to support our farmers.
The third direction, finally, is for every broader initiative to also have a European stamp. Today I sent to the President of the European Commission, and indeed also notified the President of the Eurogroup, a letter in which I ask that we examine options so that member states may acquire additional extraordinary flexibility amid the current crisis.
In other words, it is time for common and bold moves, beyond general exhortations, such as those we have heard to date from the European Commission, for limiting energy consumption.
To the above we are now adding a series of targeted interventions.
First, regarding heating oil, as I have already said, specific announcements will be made in two weeks from now, before the official distribution of heating oil begins on 15 October. What I have said stands: our goal is a price lower than 1.75 euros, that is, where heating oil closed at the end of April this year.
And of course, the amount of the final subsidy -it will be a combined subsidy from the government and the refineries- will ultimately depend on prices, which change daily. That is why, moreover, the announcements will be made as close as possible to 15 October.
At the same time, there will also be an increase in the heating allowance. Let us not forget that horizontal provisions are good and useful, but they benefit the affluent and the non-affluent alike. The same does not apply to the heating allowance. It is a targeted intervention, directed at those who need it most, whether in income or geographic terms. Because, when we talk about heating, a household in Chania cannot be treated in the same way as another in Soufli.
At the same time, as the pressures on diesel fuel concern the entire supply chain, the subsidy at the pump for the next 15 days is increasing from 10 to 15 cents. The refineries are also making their own offers.
Thus, with the refineries’ discount as well, the relief on diesel fuel will reach 20 cents. I want to remind you that the corresponding interventions being made in Europe are moving at this level, possibly even slightly lower. As I said, this is a measure that at this stage will apply for the first 15 days of October.
However, today we would also like to speak about one more measure, one more intervention, which concerns old debts of our fellow citizens but mainly of small and medium-sized enterprises, the repayment of which is becoming increasingly difficult.
I know that this problem is very serious, especially for a segment of small businesses that continue to carry debts coming from the past, whose servicing in an environment of rising production costs is becoming increasingly difficult.
That is why, in consultation with the Ministry of Finance, we are proceeding with a bold initiative: we are expanding the 72-instalment regime to 120, with a minimum payment amount of 30 euros.
This is a framework that will include debts to the tax office and the social security funds. The arrangement, in fact, will cover overdue debts up to the end of December 2024, instead of the end of December 2023 as applies until today. There, of course, all our fellow citizens who are already in the 72-instalment regime will also be able to join automatically.
Practically, in this difficult juncture, we are giving more time and a smaller monthly burden so that more citizens and more businesses can return to consistency.
Finally, one more intervention, which the Ministry of Finance will also have the opportunity to specify further later on: it concerns the establishment of even stricter terms for servicers, protecting the consistent debtor from auction or seizure.
Thus, if a servicer violates an agreed arrangement, then this act will be annulled and a fine of up to 500,000 euros will be imposed on it, while the citizen will also automatically be credited with five instalments of the original agreement.
With the same provision, which will soon also take the form of law, we are turning an essentially non-binding direct negotiation process into a much clearer and more defined framework, with rules and response deadlines from servicers, as well as a documented settlement proposal.
There will now be a 15% cap on the down payment, instead of the creditor’s free discretion that applies until now. And if the citizen does not receive a full picture of his debt within 45 days, then the interest will also “freeze”.
I want to note that the threshold for inclusion in the out-of-court mechanism has already fallen to 5,000 euros, with the possibility of an even more favorable arrangement, which reaches up to 240 instalments. In this way, thousands of beneficiaries have a second chance to settle their obligations, breathing easier under the weight of surcharges.
We are responding, therefore, to this extremely adverse international juncture by making use of the benefits of a prudent economic policy of seven years, extending our national policies on many levels and with different “barriers” against the cost of living.
Above all, however, in a socially fair way so that our most vulnerable fellow citizens benefit more. Besides, this is also the direction of the European Commission: the measures should be temporary and above all targeted and accompanied, as I said, by European initiatives as well, but -I say this with absolute clarity- staying away from slogans and easy “solutions” that can only bring adventures.
This is also our difference from the opposition, which promises everything knowing full well that it will not be called upon to implement it, which fragmentarily copies measures from other states, although many times they produce a smaller result, in other words proclaiming easy “solutions” to extremely difficult and complex problems.
I think that, from this point of view, it is crucial that we all appear informed about the big picture, as well as about our individual choices. Not to deny the difficult daily reality, but to explain, with courage and confidence, that there are no magic solutions. Because the only way to overcome this international instability is that of internal stability and support measures for society, always based on our real resilience.
I insist, therefore, on the observation that more than ever today public dialogue must be serious, society must be as united as possible but also properly informed, without being carried away by fake news, by propaganda tricks, and the political personnel must also be mature enough to serve the demands of the times, with us first of all, the members of the government.
We know very well, ladies and gentlemen colleagues, that in public confrontation style also creates impressions. Therefore, under these conditions, our discourse must not only be persuasive, it must also be measured, unified and precise, knowing that at the end of the day we will all be judged by the citizens. But until then, of course, it is my responsibility to assess the individual behavior of Members of Parliament and Ministers.
In the meantime, what takes priority is visible government work and the projection it deserves, with respect, because in it are reflected the efforts of our people, with modesty, because there our duty is recorded, but also with pride, because in this way the slogan “we said it and we are doing it” is also vindicated.
Thus, in closing, from the rich agenda of the Cabinet I want to dwell on one important initiative, which we have already announced and which the Minister of State and the Minister of Digital Governance will present afterwards.
We are submitting to Parliament the legislative regulation for the age limit of 15 years for our children’s and adolescents’ access to social media. With the Kids Wallet we already have an age verification tool, now we are taking the next institutional step, we are also going one step further than the proposals of the European Commission.
It is our duty to protect our children from addictive behaviors, which essentially keep them glued to a mobile phone screen. It is an initiative for which we will seek a broader agreement among the parties, as the effort to protect our children’s mental health and to ensure more quality time away from screens, I believe, constitutes our common duty.