Greece faces rising fuel costs and economic policy shifts

Greece is facing several economic developments. The government is considering extending diesel subsidies beyond August 31 to mitigate rising fuel costs, as diesel prices have surpassed 2 euros per liter. This follows a significant 12.1% increase in diesel prices in July, according to Eurostat, which was among the highest in the EU. The decision comes amid rising international oil prices driven by Middle East tensions and Brent crude trading above 94 dollars per barrel.

In the broader economy, Prime Minister Kyriakos Mitsotakis is expected to outline economic policy axes through 2027 and a strategic plan toward 2030. Key focuses include reducing public debt through early repayments and implementing IMF-related relief packages aimed at supporting the middle class, pensioners, and small businesses.

Additionally, the short-term rental market in Greece has seen prices double over the last decade. In July 2026, the average daily rate (ADR) reached 200.35 euros, a 12.8% annual increase that significantly exceeds the European average of 159.20 euros.