Newsletter September,2022,09

SEPTEMBER

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Greece announces €5.5 billion plan to support economy, meet fiscal targets

Greece has announced a targeted €5.5 billion program to support individuals and businesses that will help ensure the country’s continued growth even amid the rising challenges of inflation and energy shortages.


The program, announced by Prime Minister Kyriakos Mitsotakis at the 86th Thessaloniki International Fair, includes 21 measures – from tax cuts to investment incentives to mortgage subsidies – that will support those most in need, including families, students, retirees and low-income earners.

Importantly, the targeted nature of the measures ensure that Greece will remain on track with its fiscal targets and its goal of returning to investment grade status by 2023. “What I have presented today has been very carefully budgeted,” said Mr. Mitsotakis. “In no way will they divert us from the path of fiscal convergence. They are, however, necessary measures to support the community and enable it to endure the most difficult winter in decades.”

Among the most significant steps is a new, nationwide policy to help young couples and others, squeezed by rising property prices, buy a home or find affordable housing. According to data by the Bank of Greece, Greek residential property prices rose 9.4% on year in the second quarter of 2022, further extending the country’s real estate boom.

The €1.8 billion program targets more than 100,000 prospective home owners and renters. It envisions a series of reforms ranging from the development of state-owned real estate assets to subsidized loans to a higher investment threshold for Golden Visa applicants.