Right before a cabinet meeting on Wednesday, the Greek prime minister said he wants more fiscal flexibility across the EU to tackle costly energy. "It is time for bold and joint solutions that will go beyond the general exhortations we have heard from the European Commission regarding the reduction of energy consumption," he said, adding that he had written to European Commission President Ursula von der Leyen.
According to a person familiar with the letter, Mitsotakis suggested letting EU countries exclude, up to a limit, temporary measures from the usual fiscal tallies. He also floated using extra value-added tax revenue that stems from unexpectedly higher prices to support households and businesses.
Governments across the bloc are being pushed to do more as bills jump. Earlier this week, the EU warned members about a potential energy price crunch linked to the Middle East conflict and asked them to consider curbing demand and to keep filling gas storage before winter. Since late February, European gas prices have climbed to more than twice their previous level - a span the report links to the start of a US-led war on Iran - and earlier this month they reached their highest point since late 2022. Companies across Europe say the cost surge is eroding the region's competitiveness, and leaders are expected to put the matter at the heart of their competitiveness debate at the Oct. 15-16 summit.
Athens is already acting. In October, the diesel subsidy will be extended and raised to €0.15 from €0.10. By mid-October, the government plans to announce measures intended to keep the heating oil price under €1.75 per liter, the level recorded in April.
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Bottom line for your wallet: if EU leaders back more flexibility and recycle VAT windfalls into relief, it could shape how much help lands in your utility bills and how quickly those costs cool.
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