The high cost of living, now intensified by the energy crisis, constitutes the number one problem for citizens, as well as for the Maximos Mansion, since this issue burns the Mitsotakis government, which until now has failed even with half-measures to stem the tide of social discontent that is now reflected in polling.
While citizens are in despair, the government and Prime Minister K. Mitsotakis himself still promise to provide real relief to citizens' pockets, having already announced interventions for energy costs, while acknowledging that the problem is not solved by magic and that the circumstances are difficult.
However, with winter already characterized as tough, the government is planning two interventions in the fuel market by October 15, when heating oil distribution begins: the finalization of the subsidy and the potential reinstatement of the cap on profit margins for fuel trading companies and gas stations.
In any case, the government avoids the solution demanded by a large segment of the opposition, namely substantial intervention in the EFK (Special Consumption Tax), opting instead for patches.
While citizens' finances are strained, the governmental narrative remains: support at the pump, probable continuation of the refinery discount, a higher heating allowance, and an effort to keep the starting price of heating oil below 1.75 euros per liter.
In fact, Mr. Mitsotakis in his regular Sunday review focuses on measures supporting society against new energy pressures and gives promises for measures by October 15.
«The prolonged standoff around the Strait of Hormuz continuously causes new pressures and, under no circumstances, would I want to bury my head in the sand. We are in a difficult juncture. What takes priority is not letting a global crisis turn into a national dead end for Greek households. We know we cannot magically solve the problem, but we are trying to provide real breathing space. For this reason, for the next 15 days, we are increasing the pump subsidy for diesel fuel from 10 to 15 cents, which, together with the refinery discount, will ultimately reach 20 cents. Concurrently, shortly before October 15, we will announce our measures for heating oil, with the clear objective of keeping the price below 1.75 euros per liter, while we will also proceed with a horizontal increase in the heating allowance, as I have already stated. We will monitor the situation on a biweekly basis, operating at the limits of our fiscal capacity to support society», he emphasizes.
He also recalls the increase from 72 to 120 repayment installments for overdue debts to the Tax Office and social security funds, with a minimum installment of 30 euros and interest rates remaining low, at the level of the 24-installment settlement scheme.
Greece asks Europe for greater fiscal flexibility
Athens' battle for extra fiscal space shifts to Luxembourg, as the energy crisis will be a primary topic of discussion at the Eurogroup on October 8 and on Friday October 9 at ECOFIN, although the ultimate political weight of decisions falls on the Summit of European leaders on October 15 to October 16.
«This energy turmoil is a European problem and cannot be tackled solely with advice to restrict consumption. Joint, bold solutions are urgently needed. For this precise reason, Greece is asking Europe for greater fiscal flexibility. We propose being able to utilize the excess VAT revenues resulting from high prices, directing them straight into targeted support for households and businesses, without these temporary measures counting against strict spending ceilings. Europe's rules and infrastructure were established in other, calmer eras, when energy was cheap. Now the facts have changed radically and we must adjust to reality. I have already sent a relevant letter to the President of the European Commission and the President of the Eurogroup, asking that we take this necessary step», states Mr. Mitsotakis in his review.
Severe storm in Crete: Government delegation visits the island on Monday, October 5
Tomorrow, Monday October 5, a government delegation will visit Crete to coordinate damage assessment and restoration procedures, following the severe storm that left destruction in its wake.
As Mr. Mitsotakis states, «my thoughts are with our fellow citizens who were tested by the disaster, saw properties flooded, and had their daily lives disrupted. The Ministry of Climate Crisis and Civil Protection mobilized the apparatus proactively, placing Crete on high alert, convening the Risk Assessment Committee, and coordinating all involved entities. Warnings were issued via 112 and movements in hazardous areas were restricted. Following the torrential rains, our forces carried out rescues and interventions, while the Region and Municipalities work to restore access to affected areas. On Monday, a government delegation will be on the island to coordinate damage assessments and recovery processes. I thank all those operating in the field. The first priority is human life, immediately followed by support for those affected».
Recovery Fund, unemployment, regional development
The Prime Minister notes that «we submitted the final two disbursement requests to the EU, completing the required milestones on schedule, as on all previous occasions, which means we will absorb the entirety of the Fund's resources, totaling 36 billion euros, close to 16% of GDP, the largest European support relative to the size of our economy (moreover, the European Commission itself recognized that Greece distinguished itself in utilizing the Recovery Fund among the 27 member states). To put it another way, in half the time of an ESPA program, we managed to absorb nearly twice the funds. How and what did we achieve? Through an organized plan, «Greece 2.0», based on the recommendations of the Pissarides report, we managed to rebuild the economy following the severe blow of the ten-year crisis. Real GDP increased by 11 points, more than 550,000 new jobs were created, and investments soared by 60%, exceeding our initial estimates».
He points to figures showing how much the utilization of the RRF has already changed the lives of all Greeks, highlighting that major infrastructure works are added to the reforms that improved state functionality and daily life.
Looking ahead past the Recovery Fund, he recalls that the National Development Program is already in place, mobilizing investments of 23 billion euros, 13 billion more than the previous programming period, alongside resources exceeding 8 billion euros from the Social Climate Fund, the Modernisation Fund, and the Decarbonisation Fund, while 19 billion euros remain from ESPA 2021-2027.
Furthermore, he focuses on the labor market, noting that unemployment dropped to 7.4% this past August, the second lowest percentage ever recorded in our country, with August marking the third month this year with unemployment under 8%.
In addition, he mentions the establishment of the National Model Center for Dementia, as well as regional topics, such as the operational launch by IPTO of upgraded high-voltage interconnections between Zakynthos and Kefalonia and between Kefalonia and Lefkada; the next electrical interconnection will link Corfu to the mainland grid, via Igoumenitsa, within 2027; and a new undergraduate program of the International Hellenic University in «Maritime and Intermodal Transport Management» is being established in Katerini.
He does not fail to mention yesterday's signing of the protocol for the return to Greece of religious relics transported to Sofia in 1917 during World War I, alongside the handover to Bulgaria of the remains of Tsar Samuel, discovered in 1965 at the Basilica of Saint Achillios in Florina.
He concludes with today's anniversary of the founding of New Democracy, «which we celebrate tomorrow, Monday, at 18:00, at the old OSY depot. We are proud of our ideas, values, and journey that began on this day, on October 4, 1974. With its founding declaration, signed by Konstantinos Karamanlis, calling upon us to serve the nation, «far and above the old, misleading labels of the left, the right, and the center»».
The complete weekly review by K. Mitsotakis follows:
«Good morning! October is already here, with autumn making its presence felt, unfortunately with particular intensity in Crete. My thoughts are with our fellow citizens who were tested by the disaster, saw properties flooded, and had their daily lives disrupted. The Ministry of Climate Crisis and Civil Protection mobilized the apparatus proactively, placing Crete on high alert, convening the Risk Assessment Committee, and coordinating all involved entities. Warnings were issued via 112 and movements in hazardous areas were restricted. Following the torrential rains, our forces carried out rescues and interventions, while the Region and Municipalities work to restore access to affected areas. On Monday, a government delegation will be on the island to coordinate damage assessments and recovery processes. I thank all those operating in the field. The first priority is human life, immediately followed by support for those affected.
Turning to the important developments of the week, I begin with the support measures for society against new energy pressures. The prolonged standoff around the Strait of Hormuz continuously causes new pressures and, under no circumstances, would I want to bury my head in the sand. We are in a difficult juncture. What takes priority is not letting a global crisis turn into a national dead end for Greek households. We know we cannot magically solve the problem, but we are trying to provide real breathing space. For this reason, for the next 15 days, we are increasing the pump subsidy for diesel fuel from 10 to 15 cents, which, together with the refinery discount, will ultimately reach 20 cents. Concurrently, shortly before October 15, we will announce our measures for heating oil, with the clear objective of keeping the price below 1.75 euros per liter, while we will also proceed with a horizontal increase in the heating allowance, as I have already stated. We will monitor the situation on a biweekly basis, operating at the limits of our fiscal capacity to support society.
Yet I insist on emphasizing that this energy turmoil is a European problem and cannot be tackled solely with advice to restrict consumption. Joint, bold solutions are urgently needed. For this precise reason, Greece is asking Europe for greater fiscal flexibility. We propose being able to utilize the excess VAT revenues resulting from high prices, directing them straight into targeted support for households and businesses, without these temporary measures counting against strict spending ceilings. Europe's rules and infrastructure were established in other, calmer eras, when energy was cheap. Now the facts have changed radically and we must adjust to reality. I have already sent a relevant letter to the President of the European Commission and the President of the Eurogroup, asking that we take this necessary step.
In this pressing juncture, we are moving to increase from 72 to 120 the repayment installments for overdue debts to the Tax Office and social security funds, with a minimum installment of 30 euros and interest rates remaining low, at the level of the 24-installment settlement scheme. Simultaneously, we are tightening terms for loan servicers, protecting compliant debtors from auctions or foreclosures. If a company violates an agreed settlement, the enforcement action will be annulled, a fine of up to 500,000 euros will be imposed, and the citizen will be credited with 5 installments of the initial agreement. There will be a 15% cap on the advance payment, replacing the creditor's unilateral discretion. And if the citizen does not receive a complete account of their debt within 45 days, interest accrual will freeze. Our goal is to create a safety net, as is already done with the extrajudicial mechanism for primary residences, so that citizens can have a genuine second chance.
Moving to another topic, I turn to a major cycle completed this week: we submitted the final two disbursement requests to the EU, completing the required milestones on schedule, as on all previous occasions, which means we will absorb the entirety of the Fund's resources, totaling 36 billion euros, close to 16% of GDP, the largest European support relative to the size of our economy (moreover, the European Commission itself recognized that Greece distinguished itself in utilizing the Recovery Fund among the 27 member states). To put it another way, in half the time of an ESPA program, we managed to absorb nearly twice the funds. How and what did we achieve? Through an organized plan, «Greece 2.0», based on the recommendations of the Pissarides report, we managed to rebuild the economy following the severe blow of the ten-year crisis. Real GDP increased by 11 points, more than 550,000 new jobs were created, and investments soared by 60%, exceeding our initial estimates.
I want us, however, to pause on a few other numbers showing how much the utilization of the RRF has already changed the lives of all Greeks:
-9 million citizens use https://www.gov.gr/el.
-7 million citizens received free preventive health screenings, with over 300,000 referred in a timely manner for further treatment.
-5.2 million citizens have already registered with their free personal doctor and 165,000 children have their free personal pediatrician.
-2.5 million workers are protected by the digital work card and over 7.5 million overtime hours were recorded and paid.
-1.2 million insured individuals utilize the digital health record.
-410,000 students utilize the free digital tutoring program (which, I should mention, commenced operations for the 2026 to 2027 academic year).
-More than 180,000 households benefited from energy-saving programs and replacements of heating and solar water heating systems.
-25,500 residents of mountainous and island areas were examined by mobile health units.
-Over 23,000 households acquired their first home thanks to the «My Home» 1 and 2 programs.
-20,000 fellow citizens underwent operations through free afternoon surgeries.
-1,812 individuals with disabilities received their personal assistant.
-99% of the country now possesses uploaded cadastre data.
Major infrastructure works add to the reforms that improved state functionality and everyday life for citizens. Without minimizing the importance of all these projects and reforms, I firmly believe that the greatest legacy «Greece 2.0» leaves us is not merely the 36 billion euros, but the proof that the Greek state can deliver. It can plan, it can execute, it can confront rigidities of the past and move forward. This is our true achievement: that we shed the belief that «nothing changes here». The challenge is no longer whether we can succeed, but whether we will have the courage to never lower the bar again.
And precisely because we proved we can, it is important to answer the next question: what happens after the Recovery Fund? The answer is that the next day does not start from zero, nor does it rely on wishful thinking. The National Development Program already exists, which will mobilize 23 billion euros in investments, 13 billion more than the previous programming period. There are also resources exceeding 8 billion euros from the Social Climate Fund, the Modernisation Fund, and the Decarbonisation Fund, while 19 billion euros remain from ESPA 2021-2027. Ahead lies the new major European negotiation, for resources exceeding 49 billion euros. And it is of particular importance that this negotiation will very likely take place during the Greek Presidency of the Council of the European Union, in the second half of 2027. That is why the preparation of the Presidency is not a routine formality, but one of the 12 horizontal priorities of government planning presented at the recent Cabinet meeting. Because the issue is not merely how much funding the country will have at its disposal. It is where it will go and what outcome it will produce. Our core objectives leading up to 2030 are clear: sustainable growth and higher incomes, stronger defense and international presence, a more effective state and faster justice, better education and healthcare services, safer transportation, affordable energy, and protection of the natural environment.
In news from the labor market, unemployment dropped to 7.4% this past August, the second lowest percentage ever recorded in our country, with August marking the third month this year with unemployment under 8%. It is worth noting that improvements are recorded across all individual categories: among men, unemployment settled at 4.9%, down from 6.9% last August; among women, at 10.3%, down from 11.1%; while significant improvement is also recorded in youth unemployment, dropping to 15.6%, down from 21.8%. This progress does not arrive on its own, but through targeted policies focusing where room for improvement remains. I will offer two examples: for women, who continue to face more obstacles in the labor market, the expansion of the business subsidy program for hiring 10,000 unemployed women, emphasizing mothers of minor children, and its reinforcement with 5,000 additional full-time positions. For our youth, we are strengthening vocational education and training, linking it more closely to actual enterprise needs through DYPA branches within businesses, and supporting ages 18 to 29 with entrepreneurship programs to make their own career start. We continue forward, ensuring this progress reaches even more of our citizens.
The next item of the week I will mention is the establishment of the National Model Center for Dementia. We are speaking of one of the most serious, complex, and rapidly growing public health challenges globally. In our country, approximately 214,000 fellow citizens already live with diagnosed dementia, while the emotional and physical burden on their families is often immense. The new Center will offer free holistic care to individuals with early-stage dementia, such as memory assessments, day care, home care, and telemedicine. Simultaneously, it will support and train caregivers, including informal caregivers who frequently carry this burden without adequate guidance. It will also play a role in prevention, education, and research. The project is implemented thanks to a donation of 4.49 million euros from the National Bank of Greece and the public benefit foundations of the «Initiative '21», in cooperation with the Ministry of Health. It is an initiative concerning health, but also the dignity of patients, their families, and all those waging this difficult struggle every day.
Regional topics now. Upgraded high-voltage interconnections between Zakynthos and Kefalonia and between Kefalonia and Lefkada were put into operation by IPTO, replacing lines that had operated for decades. This means safer and more resilient electricity supply for the Ionian Islands, particularly during the summer months when tourist traffic significantly raises power demand. The next electrical interconnection will connect Corfu to the mainland system, via Igoumenitsa, within 2027. In Katerini, a new undergraduate program of the International Hellenic University in «Maritime and Intermodal Transport Management» is being established, adding another educational choice outside the large university hubs. In the Peloponnese, we are allocating 3.5 million euros for the participation of persons with disabilities and citizens over 65 facing risk of poverty or social exclusion in sports, cultural, and recreational activities. In Boeotia, the new Emergency Department of the General Hospital of Thebes and the renovated Health Centers of Distomo and Aliartos were inaugurated. In Kos and Syros, the Region of South Aegean is allocating 2.8 million euros from European funds for two new Integrated Mental Health Day Centers, for individuals with dementia and Alzheimer's in Kos and for individuals with autism and neurodevelopmental disorders in Syros. In Megalopoli, correspondingly, a 3.5 million euro project is underway for the bioclimatic upgrade of a section of the road network, within the broader framework of the Just Development Transition. In Corfu, following a multi-month effort, funding of 21.1 million euros was secured to proceed with the contract signing for the project «Water Supply of the City of Corfu from the Chrysiida Water Treatment Plant». This is an intervention addressing a chronic and very real problem for island residents and visitors alike.
And I conclude with yesterday, which was special for our Orthodox cultural heritage. Together with the esteemed Prime Minister of Bulgaria, we attended the signing of the protocol for the return to Greece of religious relics that were taken to Sofia in 1917 during World War I, as well as the handover to Bulgaria of the remains of Tsar Samuel, discovered in 1965 at the Basilica of Saint Achillios in Florina. Regarding the Greek treasures, these are 48 relics from the Holy Monasteries of Panagia Eikosifoinissa and Timios Prodromos of Serres, as well as from the Holy Metropolis of Serres and Nigrita. They will be exhibited at the Museum of Byzantine Culture until November 5 and will subsequently return to their «home». This is the first step, and certainly not the last, toward the repatriation of all our relics, within the framework of the active cultural diplomacy we have pursued in recent years with tangible results.
Before leaving you, however, I would like to make a special mention of today, the anniversary of the founding of New Democracy, which we celebrate tomorrow, Monday, at 18:00, at the old OSY depot. We are proud of our ideas, values, and journey that began on this day, on October 4, 1974. With its founding declaration, signed by Konstantinos Karamanlis, calling upon us to serve the nation, «far and above the old, misleading labels of the left, the right, and the center».
We renew our appointment for next Sunday. Have a pleasant rest of your day!»
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