He said Putin’s invasion of Ukraine is intended to “legitimize a despotic authoritarianism and allow any local agitator” to do the same, a thinly veiled reference to Greece’s neighbor Turkey and President Recep Tayyip Erdogan’s increasingly aggressive rhetoric. . “In the Ukraine war, we stand by those who defend themselves, we stand with democracy and freedom… we know what it means to have an (aggressive) neighbor,” Mitsotakis said. Putin wants to turn European energy concerns into political destabilization, Mitsotakis added in a keynote speech at the Thessaloniki International Fair, where Greece’s heads of government announce next year’s economic policies. The Greek prime minister reminded his audience that Greece had proposed months ago a cap on natural gas prices and the decoupling of electricity and natural gas prices, and expressed his satisfaction that the European Union is approaching such solutions. “Better late than never,” he told reporters earlier Saturday as he toured the trade fair’s exhibits. Mitsotakis said his government would continue to subsidize electricity bills “whatever the cost”. However, Greek officials also said the subsidies would now include incentives to reduce consumption and, when possible, replace natural gas with other sources of heating fuel. The prime minister announced a series of additional measures, including a 250-euro cost-of-living check for around 2.3 million beneficiaries, increases in pensions and the minimum wage, tax cuts, a 150-million-euro subsidy for farmers to offset higher fuel and feed costs, better wages for the personnel of the national health services and the armed forces and others. In total, he said, these handouts, excluding subsidizing electricity bills, would cost €5.5 billion. Since the beginning of 2020, Greece has spent over €50 billion to support households and businesses affected by the COVID-19 pandemic and now by the energy crisis and rising inflation. Inflation in Greece, down 11.4% year-on-year in August, is slightly off a peak of 12.1% in June, but still at levels not seen since 1994. The strong economy, expected to grow more than 5% in 2022, gives the government room to spend more. But from 2023, Greece’s over-indebted government must also run primary budget surpluses, as agreed with the EU. Next year will also see new elections, probably more than one. The first vote is not expected to result in a single party winning a majority of seats in Parliament and a coalition government looks highly unlikely. This would lead to a second round of elections, which would be held under a different electoral law that would give the winning party a bonus of 30 seats.
Dimitris Nellas reported from Athens, Greece.
