Greece: Forecasts for a recession in the Eurozone in 2022 but positive growth rates for the Greek economy

Additional fiscal space for household and business relief measures is left by the taxation of the surplus profits of energy companies and the extraordinary levy on refining and natural gas companies provided for by the Commission Regulation with a minimum threshold of 33% for the member states. This levy is based on the excess of income at a rate of 20% of the average of the taxable years of the quadrennial 2018-2021. Greece will adopt the rate of 33% imposing taxation on the profits of 2022 as well as the Commission leaves to the discretion of the states the taxation of profits of 2022 or even 2023. These measures generate revenue that is channeled into the energy transition fund and covers 2/3 of state aid for households and businesses.

A series of measures concerning households have been taken and will continue to apply until the end of 2022. The most important of these are fuel and energy subsidies to individuals and households. The government has introduced fuel subsidy to every vehicle owner in the form of lump sum through immaterial digital cards. In the energy sector, every month a state subsidy is announced on electricity tariffs covering 80% of the price increase and 100% for workers with a low annual income.

A measure that was valid until August and will be valid again from November is the subsidy of €0.2 per liter of diesel directly at the gas station pump. It is a measure that concerns individuals but mainly businesses that have been affected by the increase in fuel.

The latest measures announced concerned household heating costs and price increases in basic consumer goods. The heating allowance announced by the relevant ministry is double compared to last year's amounts. In addition, the Ministry of Development, wanting to deal with the increase in prices of basic consumer goods, created a basket with 50 product codes whose prices will not increase due to inflation. In this way it creates a safety net for low income earners who had difficulty in purchasing basic goods.

The coming winter promises to be difficult for all EU member states and brave decisions are needed to protect the vulnerable and create a stable energy climate for businesses to return to growth in 2023.

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