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The fiscal space they have measure Receiving social benefits during an extremely difficult time for families, who must cope with high living costs accuracy Supermarket items or from High rents make housing extremely difficultlooking ahead of her TEF and announcements of the government’s economic policies, including by government staff and the Prime Minister himself Kyriakos Mitsotakis.
This week is therefore a week of decisions to finalize the measures that the Prime Minister will finally announce on the stage of the Thessaloniki International Fair next Saturday (September 7).
The papers and pencils are out and the finance staff is doing all the simulations necessary to determine if this difficult equation works, because they never want to destabilize the nation’s finances.
In this context, we also seek
Most of the measures that the prime minister will announce, which have not yet been finalized, have clear directions to improve the daily lives of citizens.
The main theme of the Prime Minister’s statement is to solve its problems housing and his DemographicsService Upgrade Public Health and educateand everyone’s support Vulnerable groups.
The government’s priority is to support families, especially new families and the purchase of homes. Support for pensioners also remains high on the government’s agenda, and the relevant ministries are developing measures to improve their financial situation. Housing policy, restructuring of social welfare and strengthening employment for young people and women have a central position.
Based on the information currently available, the measures that will be announced but have not yet been finalized are:
A. Roof
1. “My Home II” program: Expand the scope of the program to cover more interested citizens. Over the next two years, the program will reward 20,000 beneficiaries with higher age limits (beneficiaries aged 30-49 years) with bank loans, while expanded income criteria will also apply (up to 40,000 euros). For those with multiple children, the amount will be increased by 4,000 euros per child, while the loan interest rate for the purchase of a home will be zero.
2. Interest Rate Granted: A formula is being sought to provide loans at a lower interest rate to families with three children.
3. Short-term rental: Limit short-term rentals and free up properties for long-term rentals. We are considering setting a maximum rental amount for short-term rentals within a year.
4. Closed apartments: Provide incentives and disincentives for opening closed apartments to increase supply. At the same time, promote residential energy upgrade projects.
5. Social Compensation: Promote the “Social Compensation” program and build more than 2,500 houses for citizens under the age of 39. The “Social Compensation” program is also important for supporting large families.
B. Demographics
Demographic issues are also high on the government’s agenda, with the government seeking to support families and make it easier for young couples to plan their next day through a range of interventions.
1. Welfare: Restructuring of welfare, further increasing child benefits, and reforming the rest of the benefits. Benefits for the second, third child, etc. will be doubled.
2. Care: Children get more free pediatric checkups.
3. Tax relief: Tax relief is given to companies that provide additional benefits to employees with children.
4. Work: Extend maternity benefits for workers on fixed-term contracts and education for hourly workers.
C. Insurance-Labor
Pensions and employment are priorities for the government. Interventions are expected to focus on the following areas:
– Pensions: Increases in main pensions are based on a new wage index and take into account changes in wages from 1 January 2025. Increases in all main pensions are expected to be between 2.5% and 3%.
– Solidarity tax: Reduce the burden of the solidarity tax on pensioners, as pension increases are “eaten away” by the tax.
– Personal difference: A special personal difference allowance may be paid to low pensioners, who will receive none or a small portion of the 2.5%-3% increase in income from 1 January 2025.
– Unemployment benefits: Changes in how benefits are paid and how much they are. They will be tied to an employee’s earnings and years of insurance. They will also be unequal, with more money at the start of unemployment and less at the end.
– Benefits: Increase the non-pension benefits (sickness benefits, etc.) provided by EFKA to the self-employed.
– Collective agreements: Strengthen sectoral and regional collective bargaining and further increase the minimum wage. The aim is to strengthen collective bargaining through a range of interventions and incentives.
——Employment: Strengthen employment for young people under 30 years old and women, and encourage employment for people over 55 years old.
D. Special allowance
The positive development of revenues in the period January-July 2024 provides the possibility of expanding the beneficiaries of social allowances paid at the end of the year, provided that the primary surplus target is not affected.
More than two million citizens, pensioners and vulnerable families are expected to receive emergency benefits. The amount will come from a tax on the remaining profits of refineries, amounting to about 300 million euros.
Finally, permanent measures would involve a further reduction in insurance contributions of half a percentage point.
Source: RES-MPE
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