The target remains firmly set for a €1.5 billion “package” of measures, which the prime minister will announce from the podium of the Thessaloniki International Fair (TIF) in September. This was clarified by officials from the Ministry of National Economy and Finance, with the €1 billion coming from the much better-than-forecast performance of the budget in both revenue and expenditure, and €500 million saved from the escape clause for defense spending.

The government’s economic staff is already working on proposals for tax cuts for the middle class and aid for vulnerable groups, alongside the interventions on housing, so that final decisions can be taken in August.

As Minister Kyriakos Pierrakakis has recently stated, “we have designed the measures in terms of growth support for the economy, not benefits. The TIF plan is specific and focuses on reducing burdens on the middle class. We want to go horizontally, with a boost to growth and by removing burdens.”

Among the measures being discussed are, according to existing information:

– Tax cuts for middle-income earners, with tweaks to tax brackets and rates in the tax scale.

– Tax reliefs for families with children to support families, with scenarios including an increase in the tax-free threshold.

– Reducing the tax burden on rental income, alongside incentives for landlords to put foreclosed homes they own on the market.

And specifically on the housing issue, Pierrakakis has said that the economic staff is preparing a series of proposals that will create a “positive supply shock” to “see more houses on the market.”

It is noted that, in response to another question on “what will happen to borrowers in Swiss francs?”, ministry officials say that in September there is expected to be a regulation to ease the costs of those who have borrowed in that currency. The possible scenarios, in cooperation with the Bank of Greece and the banks, take into account all parameters (exchange rate, Hercules program, loans already serviced or converted into euros) in order to ensure a proper balance.

The aim is to have the best possible arrangement that does not “hit” securitisation and Hercules. With the Minister of National Economy and Finance having stated that “the Hercules program for red loans must always be safeguarded as well”.