This country’s PM has announced 10% food subsidy amid inflation woes

Greek Prime Minister Kyriakos Mitsotakis on Saturday announced a 10-percent subsidy for every household’s food purchases to help counter the burden of inflation.

“From next February, the state will cover 10 percent of each household’s purchases for six months in supermarkets and food businesses (bakeries, pastry shops, fishmongers),” the prime minister told parliament before a vote on the 2023 state budget amid a pre-electoral atmosphere.

The measure would cost 650 million euros ($690 million), said Mitsotakis. Elections in Greece are scheduled by July 2023, but Mitsotakis has said they could be held in the spring. Individuals will receive a maximum of 220 euros. For large families with several beneficiaries, the overall amount will be capped at 1,000 euros.

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The measure is for households with an income of 24,000 euros per couple, with an additional 5,000 euros for each child.

Mitsotakis also said electricity and natural gas subsidies would remain in place.

“A total of more than eight billion euros will be allocated at the national level,” he said.

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The 2023 state budget was approved Saturday, with 156 votes in favour out of a total of 299 votes. It is the first in 12 years to be drawn up outside a framework of bailout supervision or enhanced surveillance.

Greece emerged from financial aid plans in 2018.

But until earlier this year it remained under scrutiny by its creditors, the European Union and the International Monetary Fund, who closely monitored the promised reforms and the country’s finances.