Finance Minister Christos Staikouras, Labor and Social Affairs Minister Kostis Hatzidakis, Deputy Finance Minister Theodoros Skilakakis and Deputy Finance Minister Apostolos Vesiropoulos are currently working on a specialization of the community support measures announced yesterday, Tuesday, by Prime Minister Kyriakos Mitsotakis.

At the beginning of the briefing, Minister of Finance Christos Staikouras spoke about seven interventions undertaken by the government:

1. Grant for emergency assistance from 200 to 300 euros for pensioners who didn’t get promoted due to personal differences until March 31. This applies to more than 1 million pensioners. The total cost of the intervention reaches 280 million euros. Aid is not taxed, is not subject to transfer and confiscation in the hands of the state or third parties, it is not tied and does not count against confirmed debts to the state, is not subject to any fees, charges. or other deduction in favor of the state. Fiscal costs are estimated at 280 million euros.
   Extension of preferential VAT rates until the end of the year (instead of June 2023). For the 2nd semester, the cost of the intervention reaches 250 million euros.
   • Please note that the reduced VAT rate of 13% applies to passenger transportation, coffee, catering, soft drinks, travel package, import and delivery of art objects, zoos, gyms and dance schools.
   • The super-reduced VAT of 6% applies to masks, gloves, antiseptics, disinfectant cleaners, hemodialysis medical supplies, defibrillators and movie tickets.
2. Reimbursement of excise tax on agricultural oil. Cost €76 million
3. Acceleration to distribution of unpaid agricultural compensations. Cost 120 million euros
4. Increasing wages for hazardous and unhealthy jobs 200 euros (from 150 euros) and expanding the specialties of employees who can receive it. The permanent annual cost of the intervention is 250 million euros.
5. New debt settlement system.
   • For those who lost 72 or 120 payments of tax and insurance arrangements before February 1, 2023, there is an option to recover by paying 2 monthly payments until July 31, 2023 to pay off old obligations.
   • The new scheme is being created for those taxpayers who are consistent in their obligations or whose tax and insurance debts were settled as of November 1, 2021, and who continued to serve them. In particular, debts overdue after November 1, 2021 and before February 1 can be included in either 36 payments with an interest rate of 12 payments, or 72 payments with an interest rate applicable to 24 payments. Debts that are included in serviceable standing agreements may also be included if they include new debt (as of November 1, 2021).
6. Improving the extrajudicial mechanism. By a decree of the Ministry of Finance, which will be submitted to Parliament in the coming days, an attempt is being made to increase the effectiveness of the extrajudicial mechanism.
   • Justification of disagreement is mandatory, public posting of the justification on the platform.
   • The scope has been expanded to include indebted debtors such as households with mortgages.
   • New categories of debts are also included, such as debts to third parties collected by the tax administration.
   • The penalty for prepayment to the state is cancelled.
   • The adjustment rate becomes fixed at 3% from the current 5% Euribor.

In addition, the Market Pass platform will open by the end of next week.

Hatzidakis: criteria for the amounts that pensioners will receive

With regard to the one-time assistance to 1,112,000 pensioners who were not increased for personal reasons, Labor Minister Kostis Hatzidakis said that the amount of assistance (between 200 and 300 euros) will depend on three criteria:

1. Partial increase or lack thereof due to personal differences
2. The amount of pension they receive
3. Any other help they receive

Specifically:

560,000 pensioners will receive an increase of 300 euros :

• For those who did not receive the increase, the personal difference and the amount of the basic pension is from 800 to 1000 euros. This is about 120,000 people (5% of the total).
• Low-income pensioners who receive pensions of up to 800 euros a month have a personal difference, and only last Christmas there was an increase.
• Those with a basic pension of between 1,000 and 1,100 euros have a personal difference and see no benefit from the abolition of the solidarity contribution (about 36 euros per year). This group includes 70,000 people.

394,000 pensioners will receive increase 250 euros:

• Those with a basic pension between 1,100 and 1,600 euros per month have a personal difference and have benefited from the abolition of the solidarity contribution of about 110 euros. This group includes 300,000 pensioners.
• Pensioners who did not see the full increase, but received a smaller amount. These are 94,000 pensioners who receive the amount of their basic pensions up to 1100 euros and have an increase of up to 3.49%.

158 thousand pensioners will receive an increase 200 euros:

• The 35,000 pensioners whose basic pension is between 1,100 and 1,600 euros increased by 3.49%.
• Pensioners with a basic pension of up to 1,110 euros increased by 3.5% to 6.9%.

It is noted that pensioners receiving a pension of more than 1,600 euros are not insured.

Vesiropoulos: Debt Repayment Criteria

The opportunity to reunite with 72 and 120 dose settings in thousands debtors who lost them during the energy crisis provides government, This was announced by the Deputy Minister of Finance Apostolos Vesiropoulos.

In particular, those who missed the 72 or 120 dose schedule will be able to reunite with them using paid in two monthly installments. All benefits of the 120 payment agreement, such as the separation of bank accounts, will also be restored.

For the same debtors who recover 72 or 120 installments and have unsettled debts, they are obliged Within a month from the date of confirmation of the revival, include these irregular debts in a fixed scheme of 24 or 48 payments, giving them an additional opportunity, without taking into account any previous inclusion of them in a fixed scheme of 24 or 48 payments.

• 1st example: I have a 120 payment agreement and stopped paying in Feb 2022. In April 2023, I apply for renewal and pay in two installments, thus confirming the renewal of the agreement along with its benefits, such as unleashing bank accounts.
• 2nd example: I am reanimating the 120 installment agreement and at the same time I have other unsettled debts. I am obliged to include them in a fixed scheme of 24 or 48 payments within one month from the date of confirmation of the revival of 120 payments.

Parallel new setting for 36 or 72 doses for those permanent taxpayers who had no delinquent or delinquent debts by November 1, 2021 and who acquired delinquent debts after that date, on payment of all 120 or 72 installment agreements, if they had such agreements. For these debtors, the minimum monthly payment amount is 30 euros and benefits of 120 payments will apply.

In addition, those with arrears have the option of joining the 36 or 72 installments. November 1, 2021 to February 1, 2023 and have already joined 24 or 48 doses.

“If, as of November 1, 2021, there are repaid debts in a fixed order of 24 or 48 installments, which I subsequently lost, and at the same time new debts were confirmed to me after this point in time, then new debts can be included in the new order of 36 or 72 installments and at the same time, within a month after the inclusion of new debts in the order of 36 or 72 installments, I am obliged to again include the debts of the lost fixed amount in the established order of 24 or 48 parts,” said Mr. Vesiropoulos.

• 1st example: I had delinquent debts from November 1, 2021 to February 2023. I include them in the calculation in the calculation of 72 installments, because as of November 1, 2021, they had neither delinquent nor past due debts.
• 2nd example: I became arrears for November 2021, after which I entered a fixed scheme of 24 or 48 payments. I can include these debts in the 72 payment arrangement.
• 3rd example: On November 1, 2021, I paid off debts with a fixed agreement of 24 payments that I lost in March 2022. New debts were confirmed in April 2022, and now I can meet 72 payments. At the same time, I must include the debts of the lost 24-payment agreement into the new permanent 24-payment agreement within one month of joining the new agreement.

T. Skilakakis: Measures are compatible with the budget

The announced new measures are compatible with the budget, Deputy Finance Minister Theodoros Skilakakis said.

According to him, the developments that allow taking action are:

1. Confidence with which to speak of a satisfactory growth rate in 2023, after EU forecasts predicting growth of 2.2% this year.
2. Stabilization of natural gas prices at a much lower level than budgeted, which reduces the need for subsidies as well as government energy costs.
3. Improved tax revenue. “We still don’t have the final picture because February has to end and the results so far are better than what was budgeted,” said Mr. Skilakakis.

The total cost is 800 million euros, of which 650 million euros is additional budgetary space. The specific policy is fully compatible with our policy of first securing fiscal space and then taking action,” Mr. Skilakakis also noted.