Mitsotakis Announces Bold Financial Reforms and Social Support Measures

11:16 16/12/2024 - Πηγή: iEfimerida

Prime Minister Kyriakos Mitsotakis outlined a comprehensive set of financial and social reforms in Parliament during a debate on the 2025 budget.

The measures, targeting Greece's banking system and key social sectors, aim to alleviate financial strain on citizens,

enhance transparency, and address pressing housing and welfare challenges.

Central to the reforms is the elimination of fees for basic banking transactions, such as payments to public services, energy providers, and telecommunications companies. 

"All charges for these basic transactions are abolished," Mr. Mitsotakis declared, emphasizing the government’s commitment to reducing unnecessary financial burdens. 

Additionally, bank fees for money transfers under €5,000 will be capped at €0.50, curtailing what the prime minister described as "exploitative practices" by financial institutions.

In a move designed to combat housing shortages, the government will double property taxes (ENFIA) from 2026 on idle real estate held by banks and servicers, incentivizing the release of 25,000 vacant properties back into the rental market. 

The measure seeks to stabilize soaring rents and increase housing availability.

To enhance access to credit, especially for small businesses, restrictions on credit providers will be lifted. This step aims to foster competition among financial institutions, driving down lending rates and improving terms for small-scale borrowers. 

"These changes will bring fairer terms for small businesses and entrepreneurs," said Mr. Mitsotakis, highlighting the importance of supporting Greece’s small and medium enterprises.

The reforms also include initiatives emphasizing corporate social responsibility. Greece’s four major banks will contribute €100 million to renovate or construct schools under the "Marietta Giannakou Program," while another €100 million will fund a new agency to facilitate property acquisition and leasing.

Consumers will also gain more transparency in financial services, with the launch of a Bank of Greece platform allowing comparisons of deposit and loan interest rates, as well as other fees. 

Daily transaction limits in the IRIS banking system will increase to €1,000, and fees for prepaid card top-ups up to €100 will be abolished.

In addition to financial measures, Mr. Mitsotakis announced significant social support policies. Starting next year, 310,000 low-income pensioners will receive free medication, addressing what he described as a "longstanding injustice." 

The initiative expands coverage to pensioners who have faced disparities in healthcare access since the discontinuation of the EKAS allowance.

Acknowledging the hazardous duties performed by Greece’s 150,000 police officers, firefighters, coast guard personnel, and armed forces, the government will introduce enhanced benefits for these groups. While specifics are forthcoming, the prime minister assured Parliament that the policy would "recognize and support" the risks they face daily.

The detailed measures reflect the government’s broader aim to combine fiscal growth with tangible benefits for citizens. The economic ministry is expected to provide further clarifications on the implementation of these reforms in the coming days.

By tackling pressing financial issues and addressing social inequalities, Mr. Mitsotakis seeks to strike a balance between economic modernization and improved quality of life for Greek citizens.

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