The Greek Ministry of Economy and Finance on Tuesday unveiled further details of the recently announced €1 billion support package for low-income pensioners and renters, as well as a major boost to the country’s Public Investment Programme.
The clarification follows Prime Minister Kyriakos Mitsotakis’ announcement of new social support measures aimed at easing the burden on vulnerable groups.
Primary Surplus Enables New Support Policies
Speaking at a press briefing, Economy and Finance Minister Kyriakos Pierrakakis emphasized that Greece’s strong fiscal performance provided the foundation for the new measures. “The primary surplus announced today acts as a secure starting point,” Pierrakakis said, noting that Greece is one of only five Eurozone nations to post a net primary surplus.
He credited the fiscal overperformance to a crackdown on tax evasion, accelerated economic growth, and tight control over public spending.
Support for Renters
A key component of the package is rent relief for both main residences and student housing. Eligible households will receive up to €800 for primary residences, with an additional €50 per dependent. Student accommodation is also covered up to €800.
Income thresholds for eligibility are:
- €20,000 for single-person households
- €28,000 for couples without children
- €28,000 + €4,000 per child for families with children
- €31,000 for single-parent households, plus €5,000 per additional child after the first
Approximately 80% of Greek households are expected to qualify, based on 2024 tax returns for income earned in 2023. In total, an estimated 1.19 million households will benefit, with an annual fiscal impact of €230 million. The measure also aims to promote full disclosure of rental payments, which currently average €255 per month.
Support for Pensioners
Low-income pensioners will receive an annual €250 allowance starting in November 2025. Eligibility includes:
- Single pensioners earning up to €14,000 annually or couples earning up to €26,000
- Real estate assets must not exceed €200,000 for singles and €300,000 for couples
The support will also extend to:
- 34,357 very elderly pensioners
- 248,823 people with disabilities
In total, 1.44 million individuals are expected to receive support, with a budget allocation of €360 million annually.
Expansion of Public Investment
Finally, Pierrakakis announced a €500 million increase in the Public Investment Programme budget, describing it as the largest such programme in Greece’s history. The expansion is intended to stimulate economic growth through infrastructure and development projects.
The overall package, totalling €1 billion, underscores the government’s commitment to supporting lower-income Greeks and driving forward economic resilience and development.
(Source: Amna)