LAST UPDATE: 19:27
By Dimitris Gatsios
Pointing to Europe’s stance on the waves of the energy crisis and precision, and pointing out that the difficulties of businesses and households can no longer wait, the Prime Minister, in his message to the people, announced a four-field support program.
In particular, according to the announcements of Mr. Mitsotakis:
– There will be a return to each first home owner of 60% of all additional charges retroactively from December to May, while the limit of extraordinary compensation will be 600 euros and will apply to all our fellow citizens with an annual income of up to 45,000 euros .
– In May and June there will be coverage by 50% of the increase in consumption beyond 300 kilowatt hours, while the new discount will apply to non-main residences.
Power companies will pay their share of solidarity with society. Their additional conjunctural income will be taxed with a special fee of 90%.
– There will be a system for disconnecting international gas increases from electricity bills.
“We are setting an indirect ceiling and stabilizing the prices that reach the consumer. In essence, the adjustment clause is suspended,” the prime minister said, adding that the new package will absorb 70% to 80% of the increase in the price of a kilowatt-hour business for households. farmers.
“In contrast to the initiatives it has taken for the Recovery Fund, Europe appears to be under the circumstances. We continue to demand a European solution, but we are not inactive. We will not wait for it,” he said. noting that the new interventions also alleviate the middle class.
“I am determined to correct the injustices of yesterday. To better organize the defense of today. To prevent the dangers of tomorrow,” said Mr. Mitsotakis and announced that in parallel with the “save” program, “save” for businesses is being launched. .
“Prudent policy has brought a lower deficit in 2021 and positive international ratings. I am not going to wait until the slow-moving European ocean changes course,” was the message sent by the prime minister.
The Prime Minister’s full message on the new package is as follows:
My dear fellow citizens,
The Russian invasion of Ukraine and the war that continues there hit the whole world, Europe and our country. And it is carried out not only with missiles and bombs, but also with weapons, energy and the price of gas, which has climbed to unprecedented heights.
This is what causes successive price increases, especially in electricity. A problem that can only be tackled at the root of a single European answer.
However, in contrast to the initiatives it has taken for the Recovery Fund, here Europe appears – to date at least – under the circumstances. And, unfortunately, its solution is slow. That is why Greece continues to claim it but in the meantime it is not inactive. He will not wait for her. Because first I feel that the difficulties of our businesses and households can not wait any longer.
With my decision, therefore, a new National Support Program is launched, with a firm orientation of the weakest. This time, however, with measures of significant relief for the middle class.
We helped a lot the vulnerable households, which had low consumption. But it is true that those who used a little more electricity – because they had to, for example, heat with air conditioning or have a small second home – see huge increases in their bills. With state support, albeit large, to prove small to lift their weight.
That is changing from today. I am determined to correct yesterday’s injustices, to better organize today’s defense, but also to prevent tomorrow’s dangers.
Our new Program intervenes in four areas: First, the state returns to the individual bank account of each first homeowner or tenant 60% of all additional charges incurred, retroactively from December to May. The limit of this extraordinary compensation will be 600 euros and will concern all our fellow citizens with an annual income of up to 45,000 euros.
At the same time, for May and June, any increase in consumption beyond 300 KWh will be covered by 50%. While, in addition, the new discount will apply to non-main residences, and in fact for the total monthly consumption.
Secondly, as I have said, power companies will be called upon to pay their own share of solidarity with society, which is being tested with precision. Therefore, based on the final conclusion of the Independent Energy Regulatory Authority, which is expected in the next few days, their additional conjunctural income will be taxed with a special fee of 90%.
These are, after all, amounts that will be allocated to relieve Greek households and businesses. Because they are hours of state action but also hours of responsibility for all of us.
Third, regardless of European decisions, the Greek government, on its own initiative, has been launching a system since July that disconnects international gas increases from the country’s electricity bills. The duration of this scheme will be up to one year.
In simple words, and with a double state intervention in both the wholesale and the retail energy market, we are setting an indirect ceiling. And, at the same time, we stabilize the prices that reach the consumer. This effectively suspends the adjustment clause. And the super-revenues of the energy companies are “cut with a knife”.
The initiative is fair, documented and costed. And, most importantly, it does not create competition problems that could legally challenge its positive effects on consumers.
Finally, we turn energy savings into a “shield” for every citizen and every business against the blackmail of those who bet on its pointless waste.
In the coming weeks, the “Recycle – change device” program begins, which bravely rewards the withdrawal of old, energy-intensive air conditioners and refrigerators. While in the fall, in parallel with the program “Saving” of homes, “Saving for Business” is launched. A plan that will allow, among other things, the installation of photovoltaic units on the roofs of their buildings.
But the cheapest energy is the one that is never consumed. Therefore, small changes in our habits, such as small changes in the settings of our air conditioners, will immediately bring lower bills. This is how we help the environment and our wallet.
My fellow citizens,
It took time and study to come up with these four interventions. Because such a multi-level program was indeed a complex exercise, with many technical, economic and even political parameters.
It was, however, formed in an immediate realistic plan thanks to the consistent and prudent policy that preceded. It is the one that brought the lowest deficit in 2021 and positive international ratings. And now it is financing our new initiative, together with the resources from the revenues of the power generators.
May we also be able to obtain European funding to reduce the burden on the state budget. But I’ll not wait until the slow – moving European ocean changes course.
I will be honest, however: as long as the war lasts, no national support will be able to absorb all the increases and keep energy prices where they were before the crisis. Anyone who claims to be able to do so is lying to you.
As early as the autumn, after all, the state absorbs part of the increases, while strengthening, as much as possible, the disposable income with new, permanent reductions of taxes and contributions. These days, in fact, eight out of ten of our fellow citizens will be asked to pay even lower ENFIA.
And now, the new intervention package will absorb 70% to 80% of the increase in the price per kilowatt hour for our households, businesses and farmers. With a horizon of the next 12 months and with interventions on all fronts.
The state must stand by the people when faced with violent change that they alone cannot manage. We did it during the pandemic, we do it now, with the energy crisis.
A state that protects society by fairly sharing the cost of any forced adjustment. But also a state that fights for the development of the country so that the fruits of collective progress are tasted by all citizens. This is my vision and this is what I serve consistently, every day.
Thank you.
Source: Capital
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