Filenews 27 May 2022
With a total expenditure of €103 million, the Commission has made a significant contribution to this programme. The government on Friday announced a new package of financial support for the society that has been hit by punctuality, due to inflation and the war in Ukraine. The support package, which comes in addition to the previous support package for the consequences of the Pandemic amounting to €192 million, is a step in the right direction. euro, was decided today in the Council of Ministers.
In his statements after the Ministerial meeting, the Minister of Finance, Konstantinos Petrides, said that after the Pandemic, our country has entered a period of inflation that is primarily due to external factors and the war in Ukraine.
He noted that no government can kill inflation at its root as the increase in liquidity in the market may stoke inflationary pressures by staging a vicious circle of increases.
He said that the Government should in a reasonable and careful way try to help those in need in a costed manner, which will not disturb financial stability. He noted that we are also entering a time when interest rates will rise, which includes an increase in the cost of borrowing and debt servicing by the state itself.
Mr. Petrides said that the measures to deal with the consequences of the Pandemic taken by the Government have been costed at €192 million. Today the Ministry, after consultation, decided to take another 11 measures to support vulnerable groups in particular. The measures, he said, are divided into five sections.
The first measure concerns the support of pensioners, he said and announced that from July the pensions of 165,000 beneficiaries will increase on average by 4.3% with the cost of readjustment ranging around €34 million.
The second section concerns the support of vulnerable groups of the population and one-off targeted support will be granted. In detail, as he said, in the first category that concerns 6,639 households that have dependent children under 18 years of age and have annual gross incomes of the previous year up to €10,000, a lump sum of €150 will be paid for each child up to 18 years old.
The second category concerns 13,008 households with dependent children and annual gross incomes from €10,000 to €19,500. A lump sum of €120 will be paid to these families for each minor child.
In the third category, which concerns 1,804 households with incomes from €19,500 to €29,000 with three or more children. A lump sum of €100 will be paid to these families for the third and each additional child up to the age of 18.
The fourth category, the Minister of Finance said, concerns 1,587 households with income criteria ranging from €29 to €39,000, with three or more children, to which a lump sum of €80 will be paid for the third and each additional child up to 18 years old.
In the 5th category that concerns 1,037 households with income criteria from €39 to €49,000 annual gross income, with three or more children, to which a lump sum of €60 will be paid for the third and for each additional child up to 18 years old.
Approximately 24,075 families and 45,883 children will benefit from the above categories.
The 6th category concerns households that fall under the GMI or the public benefit without dependent children under the age of 18. A lump sum of €100 will be paid to these households for each beneficiary, €50 for the spouse or spouse of the beneficiary and €25 for each child of the beneficiary. In this category, he said, fall 18,000 households or 23,000 people.
Mr. Petrides then referred to the 3rd support measure, which has to do with the immediate announcement of a plan to subsidize care services to children up to the age of 4, to subsidize the tuition fees for attendance at crèches. The measure will support 16,000 beneficiaries with a monthly allowance covering 80% of tuition fees and food with a subsidy of €100 to €300 per month for each child on the basis of criteria. The measure will start in September 2022.
The fourth series of targeted measures concerns electricity, the Minister said, numbering as the first the extension of horizontal and targeted measures to reduce VAT until August 31, 2022.
The 5th measure concerns the increase of the subsidy of beneficiaries of the project for the installation of photovoltaics and thermal insulation of the roof, by increasing the subsidy to the beneficiaries from €750 to €1,000 per kilowatt installed and for domestic consumers from €250 to €375 per kilowatt.
The 6th measure is the expansion of the list of vulnerable energy consumers who will be entitled to an increased subsidy from the RES sponsorship plans and the "save and upgrade" program of the Ministry of Commerce. To this list will be added 19,500 families with a gross income of less than €19000.
Mr. Petrides said that the 7th measure concerns the increase from 90 to 100% of the ability to cover the annual electricity consumption of premises for own consumption by the electricity produced by the photovoltaic system for both residential consumers and businesses.
The 8th measure concerns the acceleration and simplification of the procedures for the licensing of the installation of RES systems and through an order of the Ministry of Interior no building permit will be required for the installation of a photovoltaic system in cases where there is already planning permission.
The 9th measure that falls under the 4th sector, concerns fuel, and as the MFA said, the measure of the tax on the consumption of motor fuels and heating is extended until August 31, 2022.
Mr. Petrides then said that the 5th sector of measures concerns agriculture and animal husbandry. Specifically, he said, the 10 measure is about supporting producer groups and organisations to cover part of their operating costs. The 11th measure concerns additional support to agricultural and livestock sectors to cover part of the price increases due to inflation.
The last 2 measures are expected to benefit around 5,500 farmers and stockbreeders with an additional cost of around €9.5 million.
The total cost of the latest support package for society is €103 million in addition to the €192 million that have already been given, said the Minister of Finance.
Finally, he said that issues were also discussed in the Cabinet with a longer-term aim, such as the intensification of inspections to combat profiteering phenomena.
