Economic package of 1.5 billion euros to be unveiled at TIF, ministry sources say

The government is still aiming for a package of economic measures amounting to 1.5 billion euros, which will be unveiled by Prime Minister Kyriakos Mitsotakis at the upcoming Thessaloniki International Fair in September, economy and finance ministry sources told to the Athens-Macedonian News Agency on Saturday. They clarified that about one billion euros of this amount will come from overperformance in budget revenue and spending targets, and the remaining 500 million euros will be saved as a result of activating the national escape clause for defence spending.
The government economic team is currently working on proposed tax relief for the middle class and support for vulnerable groups, as well as action for affordable housing, so that final decisions can be made in August. According to a recent statement by National Economy and Finance Minister Kyriakos Pierrakakis, meanwhile, the government is focused on designing measures that support growth, rather than distributing one-off handouts, while the TIF plan "is specific and will focus on reducing the burden for the middle class," emphasizing that the government aims to implement horizontal policies that stimulate growth and ease the tax burden.
Among the measures under discussion, according to sources, are adjustments to tax brackets and rates to reduce the burden on middle incomes, tax relief for families with children and a possible increase in the tax-free threshold, a reduction in the taxation of rental incomes. Additional incentives are also being considered to persuade owners to put currently unused housing stock back on the market.
On the housing front, Pierrakakis has said that the government is examining a series of proposals to create a "positive supply shock" that will increase the number of available homes.
In response to an ANA-MPA question about loans denominated in Swiss francs, ministry officials said a measure is expected in September that will lower the cost of servicing such loans. This will be implemented in collaboration with the Bank of Greece and the banks involved, such that it does not negatively impact securitizations and the 'Hercules' programme for non-performing loans.

 

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