These are the 21 meters of TIF – See the Mitsotakis package in detail

Prime Minister Kyriakos Mitsotakis announced a package of measures to support households and businesses during his speech at the Ioannis Vellidis Conference Center in the context of the 86th Thessaloniki International Exhibition.

The measures announced by the Prime Minister move along three axes.

The first concerns measures that will provide support for energy and accuracy. The second concerns major changes that will come into force from 2023 and remain permanent and the third a cross-cutting plan for housing.

Mitsotakis speech in detail

The classic calendar says that we are entering the last year of our first government term. The “social” calendar, however, states that the needs of the citizens go beyond the four-year period. Much more so when he asks to solve pathologies rooted for decades. Our own “political” calendar wants to see today’s image in the light of Greece in 2030. That is why the slogan “We said it, we did it” must turn its momentum towards tomorrow.
For this reason I am announcing today 21 initiatives, which will be manifested in three time cycles: eight support measures for immediate implementation, until the end of 2022. Twelve major changes, activated from the beginning of 2023 and which will remain on a permanent basis, will be integrated into the budget that we will vote at the end of the year. And a six-point cross-section plan that answers a big problem, that of the roof, especially for young people, which begins to be implemented immediately.
I’ll start with what will come into effect from tomorrow against the needs of the moment:
1st. In December, 2,300,000 of our most vulnerable fellow citizens will be supported again. The aid will be 250 euros and will concern low pensioners, uninsured seniors, people with disabilities and the long-term unemployed. While the beneficiaries of the Minimum Guaranteed Income will collect one more monthly installment and the beneficiaries of the child benefit one and a half installments.
2nd The student housing allowance is immediately increased from 1,000 to 1,500 euros. This will make the daily life of tens of thousands of students in the cities where they study easier.
In addition, for eligible students who decide to live together in the same rented residence, the allowance increases to 2,000 euros per person.
3rd. The heating allowance increased from 84 million last year to 174 million. Today it will reach 300 million. The criteria are widened to provide relief to approximately 1.3 million households.
At the same time, for those beneficiaries who consume oil or other forms of fuel, except natural gas, for the first time this year, the allowance will be doubled. A strong incentive to replace electricity or natural gas with other forms of heating, I emphasize, where this may be feasible. While we are studying and will be ready to announce soon, a special intervention that will reduce the cost of heating oil at the pump for all Greek consumers.
4th For the primary sector, for our farmers and breeders. A subsidy of 60 million euros will be paid to farmers as a defense against the cost of fertilizers. And 50,000 livestock farmers will receive 89 million to cope with increased feed prices.
5th Beneficiaries of the highly successful “Recycle – Change device” program are now increasing by 200,000. We will allocate 140 million euros for this from the Public Investment Program.
More importantly, we secure the necessary space in the grid so that it can no longer accept electricity for consumption by individual producers. We will finance 250,000 small solar panels on residential roofs, in businesses, on farms, which will consume their own energy for free. This program will soon be announced by the Ministries of Energy and Development.
6th After the highly successful summer tourist season, we want to provide additional incentives to extend the tourist season, mainly through the expansion of the Tourism for All program to cover another 200,000 new beneficiaries. Our fellow citizens should not feel that because of the economic crisis they could not go on vacation this year.
In order to extend the tourist season into the winter, we will approve additional funds. They will be allocated so that Greece can be advertised together with the EOT, with airlines, with tour operators, for the period until March 2023.
7th A number – not all, but a number – of the demands of the Armed Forces are being settled immediately: the pay progression of Long-Term Volunteers and Short Reassignment Soldiers. The extension of the 5-year contract and the night compensation. While additional pay is instituted to the crews of warships on duty.
8th In order to create more permanent jobs, from tomorrow until the end of 2023 all companies that convert part-time contracts of their employees into permanent ones will be exempted from 40% of the insurance contributions of these employees.
And something for startups and small businesses planning some new hires: hereafter under one condition: if they increase their average annual number of full-time employees, they won’t pay a startup fee that year.
I am now moving on to the permanent package of measures that will apply from January 2023:
The reduction by 3 units of the insurance contributions is fixed. A measure that increases the disposable income of 2,200,000 workers, reducing at the same time the wage burden for businesses.
The Special Solidarity Contribution is abolished forever and for everyone – public and private employees and pensioners. A burden of memorandums comes to an end and almost 3,000,000 taxpayers are relieved.
In the public sector, together with the abolition of the Solidarity Contribution and the establishment for the first time of Incentives for the Achievement of Goals, the non-remunerative Contribution in favor of the former Employee Welfare Fund is also ending. Another relief.
In practice, a head of the State Department benefits annually by 364 euros. An ordinary employee, newly hired, by 109 euros. A director by 591 euros. And a general manager by 1,125 euros.
After many years, the pensions of 1,500,000 pensioners with little or no personal difference are increasing. The amount of the increase will result by 50% from the increase in GDP and by 50% from the change in the Consumer Price Index. For this year it is estimated that it will be over 6%.
Pensioners who have a high personal difference will see an increase in their incomes, not from the increase in pensions, which will limit the amount of the personal difference, but from the abolition of the Solidarity Contribution, as we are mainly talking about pensioners with higher pensions.
From 1/1/2023, the Special Payroll of the 20,000 doctors of the National Health Service is reformed with an increase in the basic salary and liability allowances. The increase will average around 10% of their total salary.
However, the reform of the Payroll of almost 600,000 Public Servants also begins. With an emphasis on the low-wage earners but also the support of those who hold positions of responsibility. And with the aim of its implementation from 1/1/2024.
In order to support the family, to deal with demographics, but also to restore justice to new mothers, the maternity allowance in the private sector is immediately extended from 6 to 9 months.
The reduced VAT on transport, coffee and non-alcoholic drinks is extended until June 2023. And the same will apply to Culture and Tourism, gyms and dance schools.
However, the 24% VAT on new buildings remains suspended until the end of 2024, in order to support the construction industry.
The operating framework of the Greek Capital Market is reformed with important investment and tax incentives. Also, from 1/1/2023, to improve the quality of life in local communities, the Central Autonomous Resources of the Local Government will increase by 120 million euros per year. Money that will translate into projects for everyone.
Finally, with the new year begins the process for the new adjustment of the minimum wage, as we have done twice so far. We aim to have it implemented on May 1, 2023.
Friends,
The measures I am announcing today, extraordinary for the rest of 2022 and permanent from 2023, add up to approximately 5.5 billion, without counting the monthly electricity subsidy for everyone. They are, in fact, to be added to the almost 50 billion that the state has made available as an embankment in the successive crises.
Thus, a safety net is developed for society and the foundations are laid for a better future. With three objectives: relief of the citizens. Preservation of jobs. Business stimulation.
This comprehensive plan is complemented by an ambitious plan for a critical problem of the time: housing, especially of young people and couples.
Thus, we are launching a €1.8 billion program that will target over 100,000 beneficiaries with a series of initiatives to help them buy or rent a cheaper home.
These actions start from next month. While those that require new constructions will obviously be developed gradually. Specifically: In addition to the increase in the student housing allowance from 1,000 to 1,500 euros and with conditions to 2,000 euros for 50,000 young people, the construction of 8,150 places in five modern Student Residences at the Universities of Crete, Thessaly, Western Macedonia, Thrace and Western Attica will begin immediately. The sites have already been determined and the projects will be done with PPP.
A special loan program is launched, initially amounting to 500 million euros, with co-financing of 375 million from the state and 125 million from the banks. What is our purpose? To ensure a very low, almost zero interest rate, for the purchase of a first home by thousands of our fellow citizens up to 39 years old, in areas with older buildings.
In practice, a couple, with minimal participation, will buy a house worth 100,000 euros with monthly installments of 275 euros. An amount, that is, much less than the rent he would give.
Just to increase home ownership and renovate older homes, we are also creating a targeted ‘Save and Renovate’ for 20,000 young people. Each beneficiary will receive up to 20,000 euros for energy interventions in their property, along with an additional support of 3,000 euros and a low-interest loan of up to 7,000 euros.
At the same time, as an incentive to at least 10,000 owners of closed properties, a state subsidy of up to 10,000 euros will be given to renovate them. With the obligation, however, to rent them on long-term leases. The state thus covers up to 40% of the renovation costs of each closed apartment.
For public land and buildings, the “social consideration” is also established: the state will offer its idle assets to private builders and they, at their expense, will build modern housing. Half will be rented at a low rent to new tenants, while the remaining spaces will be used commercially by private individuals.
Also, in order to increase the available real estate for Greeks, the investment limit for the granting of a Golden VISA license is increased from 250,000 to 500,000 euros.
While the “Estia 2” Program starts in December. According to this, the State will lease, in the first phase, 1,000 private properties. To make them available, then, with express procedures and very low rent to vulnerable households.
As you can see, this is a coherent program of care and development. Which relieves the workers, but also encourages entrepreneurship.

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