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Inflation rose sharply in April 2026, climbing to 4.6% from 3.4% in the previous month, mainly driven by sustained pressures in the energy sector. The increase has intensified concerns over the cost of living, prompting the government to move forward with a new package of support measures.
Following the announcement of a €12.1 billion primary surplus in 2025, the government’s economic team unveiled a €500 million intervention plan aimed at easing the burden on households and addressing key structural issues. The measures are structured around three main pillars: income support, reducing the cost of living, and tackling private debt. Particular emphasis is placed on pensioners, low-income families, and farmers.
In terms of private debt, the government is introducing a series of relief mechanisms intended to improve repayment capacity and reduce financial pressure on citizens. Among the key measures is the possibility of lifting bank account seizures, provided that 25% of the outstanding debt is repaid, with the remaining balance settled through a regulated arrangement. At the same time, the extrajudicial debt settlement mechanism is being expanded to cover debts ranging from €5,000 to €10,000, a move expected to benefit approximately 300,000 citizens. Additionally, a new framework allows for the settlement of debts incurred up to the end of 2023 in up to 72 installments, affecting more than 1.5 million individuals and legal entities.
Alongside debt interventions, the government is strengthening its social support policies. Annual financial assistance for pensioners will increase from €250 to €300, while eligibility criteria are being broadened to cover up to 85% of individuals over the age of 65. Rent support is also being expanded, with the refund scheme now expected to reach approximately 86% of tenants, or around one million citizens.
Further relief is provided through extraordinary financial support measures. Households will receive €150 for each dependent child, benefiting roughly one million families and an estimated 3.3 million individuals. In addition, emergency aid for vulnerable groups, which include pensioners, people with disabilities and uninsured elderly individuals, will increase from €250 to €400, while income and property criteria are being adjusted to include more beneficiaries.
Targeted interventions are also being implemented in the energy and agricultural sectors, where cost pressures remain particularly high. The diesel subsidy will be extended for May, amounting to €0.20 per liter including VAT, with a total fiscal cost of €55 million. Meanwhile, the fertilizer subsidy for professional farmers, covering 15% of the value of invoices, will remain in place until August 2026, with an estimated cost of €41 million.
Overall, the package reflects an effort to address the immediate impact of inflation while maintaining fiscal balance. However, with energy prices continuing to exert upward pressure, the effectiveness of these measures will likely be tested in the coming months.
Reference/Citation
CNN Greece
Capital.gr
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