Greek government announces new measures to combat energy crisis and inflation

On September 30, 2026, Greek Prime Minister Kyriakos Mitsotakis announced a comprehensive package of measures designed to support households and businesses amid the ongoing global energy crisis and rising inflation. The government’s strategy focuses on debt relief and direct price interventions to mitigate the impact of the cost-of-living surge.

Key measures include extending the debt repayment scheme from 72 to 120 installments for old arrears, increasing the fuel subsidy to 15 cents per liter—resulting in a total pump reduction of 20 cents—and capping heating oil prices below 1.75 euros per liter. Additionally, the government has introduced electricity subsidies for vulnerable households, a zero-rated VAT on essential food items such as milk and bread, and a reduction in the excise tax on heating oil.

Prime Minister Mitsotakis stated that these interventions will be reviewed every 15 days due to high market volatility. Furthermore, Greece is pushing for greater fiscal flexibility at the European Union level to address these challenges collectively. The administration aims to provide immediate financial relief to families while maintaining economic stability during these volatile conditions.