Government announces new support package effective in July

Most of the measures had already been announced by the Prime Minister last March, following Eurostat’s confirmation of the Greek economy’s fiscal overperformance in 2025. They are expected to come into effect from late June and throughout July.

€150 Child Benefit by the End of June

The first measure to be implemented concerns extraordinary financial assistance for families with children. Payments are expected to be completed by 30 June, with no application required from beneficiaries.

The support amounts to €150 per child and applies to families with an annual income of up to €40,000 for couples or €39,000 for single-parent households, with an additional income threshold increase of €5,000 for each additional child.

The amounts will be credited directly to the bank accounts registered with the Independent Authority for Public Revenue (AADE). The payment will be tax-free, exempt from seizure, and will not be taken into account when calculating eligibility for other social benefits.

Six Additional Measures to Take Effect in July

Following the passage of the bill, six further interventions will be implemented:

1. Personal Difference Allowance for Public Sector Employees

From 1 July, an allowance of up to €300 per month will be introduced for public sector employees receiving a “personal difference” payment. The allowance will be offset against the existing personal difference, resulting in permanent salary increases for thousands of employees.

2. Increase of the Protected Bank Account Threshold to €1,600

Upon publication of the law, the protected amount of seizure-exempt bank accounts will increase from €1,250 to €1,600. The measure applies to debts owed both to the State and to private creditors, enhancing liquidity for thousands of households.

3. Lifting of Seizures for Regulated Debts

A new procedure for the release of frozen bank accounts will be introduced during July for taxpayers whose accounts are already subject to seizure. Eligibility requires repayment of at least 25% of the outstanding debt and inclusion of the remaining balance in an approved repayment arrangement.

4. New Repayment Scheme of up to 72 Installments for Tax Debts

Taxpayers will be able to join an extraordinary repayment scheme of up to 72 monthly installments for outstanding tax and customs liabilities incurred before 2024 that were not included in an active repayment arrangement in April 2026.

Applications will be submitted through the myAADE platform until the end of the year, with a minimum monthly installment of €30.

5. 72-Installment Scheme for Social Security Debts

A similar arrangement will be available for debts owed to social security funds and the Centre for the Collection of Social Security Debts (KEAO), covering liabilities accumulated up to the end of 2023.

6. Expansion of the Out-of-Court Debt Settlement Mechanism

From late July, access to the out-of-court debt settlement mechanism will be expanded to debtors with smaller liabilities. The minimum debt threshold will be reduced from €10,000 to €5,000, enabling more citizens to benefit from debt write-downs and long-term repayment arrangements.

New Support Measures from September

The government’s plan also includes a second round of interventions after the summer. From September onwards, new measures are expected to be introduced, including enhanced protection of primary residences through the out-of-court settlement mechanism, a subsidy equivalent to two months’ rent for teachers, doctors, and nurses serving in remote areas, and an increase in the annual financial support provided to pensioners and vulnerable social groups from €250 to €300.

As the government’s economic team is already preparing for the announcements to be made at the Thessaloniki International Fair (TIF), the new package of measures represents the first phase in the utilization of the fiscal space created by the Greek economy’s stronger-than-expected performance. The objective is to support household incomes and provide relief to citizens facing financial obligations and housing-related pressures.