ATHENS, April 22 (Reuters) - Greece on Wednesday announced 500 million euros ($587.55 million) in extra aid to households and farmers struggling with the impact of the Iran war after a higher primary
Greece announces aid worth 500 million euros to contain impact of Iran war
Greece Unveils Financial Support Measures Amid Iran War Impact
Government Announces New Aid Package
ATHENS, April 22 (Reuters) - Greece on Wednesday announced 500 million euros ($587.55 million) in extra aid to households and farmers struggling with the impact of the Iran war after a higher primary budget surplus in 2025 offered headroom for fresh support.
Details of the Support Measures
Prime Minister Kyriakos Mitsotakis said the government will offer a mix of emergency and permanent measures, which include extending fuel subsidies for May and fertiliser subsidies until August. He also announced a one-off allowance for families with children and higher annual aid for low-income pensioners.
Prime Minister's Statement
"It is the best we can do without disrupting the economic balance that we have achieved with such hard work," Prime Minister Kyriakos Mitsotakis said in a statement. "The nation's economy is holding up and doing better than expected. However, the stress of the supermarket, the expenses of children, more expensive fuel and the care of the elderly remain."
Economic Context and Fiscal Space
Greece reported a higher budget surplus for 2025, giving it fiscal space to extend more aid to households and farmers hit by rising living costs amid the war in Iran and ongoing tensions in the Strait of Hormuz which have disrupted energy supplies.
Finance Minister's Remarks and Projections
Greek Finance Minister Kyriakos Pierrakakis cited robust economic output, higher investment, a lower jobless rate and the fight against tax evasion for the 2025 surplus.
But for 2026, the country had to trim its growth estimate to 2% from 2.4% previously to reflect pressure from the Iran war on energy and supply chains, Pierrakakis told a news conference on Wednesday.
Inflation and Growth Forecasts
The new projection confirmed a Reuters report this month. Inflation was also revised upward to 3.2% from 2.2%.
Previous and Ongoing Support Initiatives
With the economy recovering well from a 2009-2018 debt crisis but relying heavily on Middle East oil imports, the government has already offered subsidies for fuel and fertilizers and ferry ticket discounts worth a total of 300 million euros. It has also pledged separate aid worth 100 million euros a year for the next five years to help industries and smaller businesses with surging energy costs.
($1 = 0.8510 euros)
(Reporting by Renee Maltezou, Additional reporting by Angeliki Koutantou; Editing by Philippa Fletcher, Alexandra Hudson)
