The Council of Ministers on Wednesday approved seven proposals by Finance Minister Makis Keravnos to tackle inflationary pressures in the economy and the rising cost of living, at a cost of €70 million. Together with the measures already in force, the total cost reaches around €160 million. The government said the measures are the result of responsible fiscal policy, with budget surpluses and the reduction of public debt being returned to society in practice.
The electricity subsidy for vulnerable consumers (tariff category 08) and commercial use (category 10) is renewed for the whole of 2027. The measure benefits 23,300 households, which will have 100% of the increase covered, and around 82,500 businesses, which will receive a subsidy of up to 85%. Zero VAT on basic goods is also extended for the whole of 2027, covering fresh fruit, vegetables, milk, children's nappies, adult nappies and feminine hygiene products. In addition, zero VAT on meat, fish and poultry is renewed and expanded to include bread, dairy products, coffee, sugar and baby food, applying from 12 October 2026 to 31 May 2027.
Heating oil, solar panels and direct support
Excise duty on heating oil is reduced from 7.4 to 2.1 cents per litre from 1 November 2026 to 30 April 2027, while VAT on photovoltaic systems for household consumers falls from 19% to 9% with immediate effect. A one-off emergency payment of €200 will be made to 53,511 vulnerable beneficiaries. The allowance for residents of mountain areas is also increased, benefiting 10,500 households and 24,000 beneficiaries, with an additional €50 per household depending on altitude and an additional €35 per person.
