Following the recipe of 2019, where the first piece of legislation was the reduction of the ENFIA, the government will present perhaps within the next week its first intervention with tax reliefs and measures to support the weak, which will include a series of pre-election commitments, which as a public denominator will have the improvement of disposable income in an extremely difficult period due to the continuation of inflationary pressures, especially in food.

According to information, but also based on what the prime minister has mentioned Kyriakos Mitsotakis as well as the finance minister Kostis Hatzidakisthe bill that will likely be passed before Parliament closes in August for the summer recess, will include all of the government’s pre-election commitments, most of which will concern 2024.

The total amount of the interventions will be in the region of 2 billion euros and will concern approximately 3 million households. A part of the intervention, however, will concern 2023 and will be related to the extension of the market pass measure.

Beneficiaries of the overall intervention include low-wage earners, pensioners, civil servants, property owners, as well as young people entitled to specific benefits. At this stage, it is not certain whether provision will be made for the granting of an extraordinary allowance to economically weaker social groups at Christmas, and this is because they do not want the government to send the wrong message to the markets, on the eve of the imminent acquisition of investment grade.

The government’s goal is to maintain the primary surplus of 2023 above 1% of GDP and to have a solid base, so that in 2024 things will develop more gently, since there is a forecast – until further notice at least – for a surplus of 2% .

This year’s measures will – probably – also include the market pass extension for three plus two months, so as to reach his grant, by the end of the year. The measure expires in July, with payments to be completed within the following week. Initially, an extension will be given until the end of October, with possibly expanded criteria, number of beneficiaries and amounts, and then, if the same reasons exist, a new two-month extension will be given until the end of December 2024.

It is worth noting that an extension has already been given until the end of the year, both in terms of the household basket, as well as in terms of the maximum profit margin for businesses that trade in basic consumer products and fuels in order to deal with unfair profiteering at the expense of consumers , as stated in a relevant announcement of the Ministry of Development issued on Friday.

To all this should be added the new increase in pensions that will take effect from January 1st, but at this moment its amount cannot be clearly determined.

Let’s look in detail at the measures that will likely be included in the new bill of the Ministry of Finance that will be immediately put into consultation:

  • Tax-free increase: It will increase by 1,000 euros for employees, pensioners and farmers with children from January 1, 2024. Based on the above, the tax-free limit for taxpayers without children remains at 8,633 euros, for families with one child it increases from 9,000 euros to 10,000 euros, with two children from 10,000 to 11,000 euros, with three children at 12,000 euros and with four children at 13,000 euros. The annual benefit is 90 euros for families with one child and 220 euros for families with more children.
  • LIGHT: A 10% reduction in ENFIA will be provided for houses insured against natural disasters. Homeowners who have insured their homes for all of 2023 will see a 10% discount on their 2024 ENFIA, while those who insure their homes in 2024 will earn a property tax discount in 2025.
  • New payroll: Changes to all salary scales will be brought about by the new salary scale for civil servants, with an emphasis on the lowest (introductory salaries) but also on positions of responsibility, uniformed and faculty members (Teaching Research Staff). The changes are estimated to affect the salaries of around 600,000-700,000 employees.
  • Minimum guaranteed income: Increase from 1-1-2024 by 8% of the minimum guaranteed income. It will be set at 216 euros from 200 euros which is currently for a one-person household. In particular, those who receive 200 euros today will receive 216 euros, those who receive 300 euros will receive 324 euros, while those who currently receive 400 euros per month will receive 432 euros from 1.1.2024.
  • Maternity allowance: Increase in maternity allowance for freelancers and farmers. From 4 months it will be set to 9 months at the level of the minimum wage (from 150 to 200 euros which is today).
  • Zero participation in pharmaceutical expenses: Permanentization of the exemption of former EKAS beneficiaries from their participation in pharmaceutical expenses. In this way, more than 600,000 low-income pensioners who permanently lost EKAS will have free medicines. Access to free medicines was initially instituted as a compensation for the loss of EKAS and since then it has been extended every year by special legislation.
  • Youth pass: will be granted to young people who reach adulthood and the year of first application in 2024. Beneficiaries will be, every year, the young people who will complete the age of 18 and 19 years, which are estimated at 200,000 per year. The voucher of 150 euros can be used in businesses in the tourism and cultural sector, as well as in transport. It will be a digital debit card, like the Freedom Pass.
  • Family allowance: Increase in family allowance for civil servants. The benefit for one child will increase from 50 to 70 euros, for two children from 70 to 120 euros, for three children to 170 euros and for four children to 220 euros.