Greek government sets September price cuts, DEH package and recovery‑fund rollout

The Greek government has outlined three priority pillars for the coming weeks leading up to September.

First, a price‑cut agreement with major supermarket chains will lower the cost of about 500 basic consumer goods – such as milk, pasta, flour, baby items, meat, dairy and personal‑care products – by at least 10 % and in some cases up to 20 %, starting in September. Development Minister Takis Theodorikakos said the aim is to make the savings tangible for households.

Second, Finance Minister Kyriakos Pira­rakis announced a fiscal space of roughly €1 billion for tax reliefs and targeted income‑support measures that will be presented at the upcoming DEH (mid‑term fiscal plan) in September. The package is intended to boost disposable incomes while keeping public‑finance risks low.

Third, the EU Recovery Fund programme is being finalised. Deputy Finance Minister Nikos Papathanasiou reaffirmed that 68 % of the allocated €24.6 billion – about €16.7 billion, or 10.9 % of Greece’s 2023 GDP – has already reached the economy, and that all milestones must be met by the end of August, with the final disbursement scheduled for December 2026.

The measures come as inflation in Greece eased to 3.9 % in July (down from 4.9 % in May), helped by lower oil prices around $70 per barrel after a US‑Iran cease‑fire. The government aims to curb price pressures, raise household incomes and sustain growth through continued EU‑fund investments.