Greek FinMin Examines Support Measures in Covid-19 Aftermath

Greek Finance Minister Christos Staikouras. Photo Source: cstaikouras.gr

Seeking ways to ease the burden that the coronavirus (Covid-19) pandemic has had on Greek households and businesses, Finance Minister Christos Staikouras said this week that the government was preparing a mixed package of measures, including tax breaks and voluntary rent reductions.

In an interview to OPEN channel on Wednesday, Staikouras said that formulating the 2021 budget was difficult in view of the uncertainty posed by the Covid-19 health crisis.

“We don’t know how long the health crisis will last,” said Staikouras with regard to permanent tax reductions, adding that the “budget will incorporate the maximum number of possible interventions to reduce the consequences on households and businesses and where possible, there will be interventions in tax policy with tax cuts.”

Syntagma Square, Athens. Photo © GNTO/Y Skoulas

According to reports, the government is preparing a package of mandated and voluntary reductions in rents in certain sectors, and the extension of tax and contribution payments for Covid-19-impacted households and businesses until March 2021.

Stournaras went on to add that suspension of payments to September will be extended into the first quarter of 2021, and a 12- or 24-installment payment plan (at 2.5 percent interest) will be put in place after that.

With regard to mandated 40 percent rent reductions which end this month for services providers in tourism, F&B, transport, culture and sport, Stournaras said the ministry was exploring the possibility of individual negotiations between both parties and possible incentives.