Government Extends Electricity Subsidy Amid Cost-of-Living Crisis
In a decisive move to mitigate the financial strain on citizens, the government has announced the extension of the electricity subsidy until the end of June, a relief effort that is expected to benefit a substantial number of households and businesses across the nation.
This extension follows an extraordinary meeting and is part of a broader strategy to address the cost-of-living crisis. The subsidy, which initially covered electricity consumption up until April 30, will now continue to provide financial aid to over 400,000 households and 100,000 businesses. Despite the cost to the government being projected at €8 million, the actual savings for consumers have diminished since its inception in October, from about €70 to approximately €14 per bimonthly bill for average users, due to the falling oil prices.
Alongside the electricity subsidy, the government is also prolonging the zero VAT rate on essential household items such as bread, milk, and baby products until June’s end. This extension, initially set to conclude at May’s end, represents a continuation of the government’s efforts to ease financial pressures on consumers, with Finance Minister Makis Keravnos highlighting its “significant benefits.”
The zeroed VAT measure is estimated to cost the government an additional €6 million. Moreover, households receiving government benefits will be granted three extra payments over the next three months as compensation for the cessation of the fuel tax subsidy.
President Nikos Christodoulides emphasized the government’s commitment to improving citizens’ lives through practical measures rather than rhetoric. He underscored various initiatives aimed at supporting working families, such as the cost-of-living allowance and wage increases. Addressing criticism from opposition parties, President Christodoulides reaffirmed his administration’s dedication to responsible governance and avoiding policies that could jeopardize the nation’s stability.
The suite of measures introduced by the government reflects a concerted effort to support those most affected by the cost-of-living challenges, with a clear focus on maintaining economic security and providing tangible assistance to those in need.
