measure

At the Maximos Palace, one meeting follows the other with the aim of putting the final touches on the package of benefits that the Prime Minister will announce at the TIF. The basket of benefits is not expected to be large. But it will be targeted at what hurts the ND, i.e. the issues of everyday life.

For Kyriakos Mitsotakis, the government’s turn to the problems of everyday life is a one-way street. And the losses of the European elections, as all the latest measurements show, do not seem to be making up.

In the government staff they know that everyday life is the government’s big bet. If she can get the message out that she can deal with her problems, she can hope for a recovery. If not, then the efforts to free the ND from the polling cord as soon as possible will fall into the void.

“Every day counts”

Mitsotakis, as reported by his colleagues, operates with the logic that “every day counts”. But also every day the message of efficiency should be transmitted. From the front of accuracy to the housing crisis and the crisis of the operation of the NHS which appears to be broken there is the need to have concrete and measurable results.

It is no coincidence that personally Mitsotakis, together with the relevant ministers, comes forward with public appearances of a “social” and “developmental” nature: from Thessaloniki he presented the “national strategy” for regional development, from long-suffering Thessaly he admitted that “the damage and the wounds are here”, presenting short-term and long-term plans, from a nursery school in Thisio spoke of “substantial support” for families with young children, etc.

The basket of benefits

The financial staff has delivered its final recommendations, while the discussion with Brussels on the additional fiscal space, in addition to the already foreseen 3 billion euros, which will allow them to “unlock” some additional interventions, is being completed. Insurance contributions are being discussed in particular (it has been announced that they will be reduced by 0.5% and possibly lock in a larger reduction that will reach 1%).

The possibility of extra benefits being directed towards ESY workers is also being discussed. What is considered certain is that an attempt will be made in the TIF basket to include measures for freelancers, pensioners and vulnerable groups.

According to information in Maximou, they are betting on 1 billion euros from community funds to extend the “My Home” program from the beginning of 2025 to up to 50 years old, while they are also focusing on tax incentives for property owners to open their closed apartments and to throw them into the long-term lease. ¨As mentioned in the relevant report, this is an issue that the right-wing ND voters are particularly pushing for (and) considering that the support of the family has been left behind.

How does the game turn?

In this context, an increase in the child allowance (and an increase in the foster care allowance) should be expected, as well as “injections” in other social benefits. As far as those with three children are concerned, it is expected, not complete identification with those with many children, but a clear strengthening of them: in other words, to obtain more privileges by “getting closer” to the group of those with many children. One of the proposals on the table is the lifelong recognition of triplets – to stop the family from losing this status and therefore the related benefits from the moment a child reaches adulthood.

Regarding the Prime Minister’s speech, his associates stress that it will have as its central philosophy the logic of “what we said, what we did, what we will do from now on”. In M. Maximou’s opinion, at the present stage the ND remains the main player in the political scene. The question is whether he can turn the game around and make up for the losses he is showing.

This year’s presence of Kyriakos Mitsotakis at the TIF next weekend has very different elements from the previous five. Above all, it has an element of political criticality, as the Prime Minister is called upon to reverse the heavy climate for the government after the recent European elections and to achieve the much-desired “restart”.

The interventions that will obviously be announced and will basically have an economic-social nature, with a view to supporting the weaker and vulnerable, will however focus on housing, with restrictions on airbnb, tax incentives for long-term leases, etc. and other measures.

The significant institutional intervention and the brake from the Stability Pact

It is also widely rumored that Kyriakos Mitsotakis will also include in his announcements an important institutional intervention, in view of the ongoing constitutional review.

However, the announcements are subject to the contradictions and limitations of the revised Stability Pact, which puts the brakes on deficits and spending, as well as the unfavorable international economic situation, which due to wars does not show many signs of optimism.

Based on these, the measures expected to be announced by Kyriakos Mitsotakis in Saturday’s speech will include the following:

• The program “My House 2”, amounting to 2 billion euros. 50% of its financing will be covered by loans from the Recovery Fund and the remaining 50% by bank borrowing.
• The expansion of the beneficiaries, with the age criterion reaching 50 years, from 39 that was in the previous program
• The expansion of the income criteria with zero interest for three and many children
• The age of the properties should be less than 15 years.
• Social Compensation. By the end of the year or at the beginning of 2025, the first international tender is expected to be announced for the construction of 3,000 houses on State plots and the utilization of 1,600 vacant properties throughout the country
• There will be improvements to the “Renovate – Rent” program, which is expected to start immediately. Among other things, it is expected to announce an increase in the subsidy from 4,000 to 6,000 euros (60% for total costs up to 10,000 euros) and the advance payment of the amount to 50%.
• Support of vulnerable social groups with permanent measures amounting to 880 million euros which will be included in the 2025 budget. They will include: Reduction of insurance contributions by 0.5%, costing 215 million euros (possibly the reduction will reach 0.75 %), abolition of the business tax for professionals, costing 120 million euros, permanent return of the Special Consumption Tax to farmers, costing 100 million euros, increase in student housing allowance, costing 15 million euros, increase in pensions costing approximately 400 million euros, suspension of VAT on construction, costing 20 million euros.
• In particular, with regard to increases for the 2.4 million pensioners, interventions are envisaged that will be legislated with the mini-insurance policy: Horizontal increase of 2.6% – 2.8% for all, granting of a “personal difference allowance” to all those have a personal difference and lose the general increase, finalization by EFKA of the list of beneficiaries to whom the 300 million euros will be shared from the taxation of the super profits of the refineries, increases of up to 42 euros per month in the main pensions that exceed 1,400 euros through the change of the scale of the Emergency Pensioner Solidarity Contribution