PASOK proposes new measures to tackle Greece's private debt

PASOK leader Nikos Androulakis has presented a comprehensive “10+1” proposal package aimed at addressing Greece’s private debt crisis, which has reached an estimated 417 billion euros. The plan, presented at a special event in Athens, focuses on providing a “second chance” for vulnerable debtors and protecting primary residences. Key measures include restoring protections for homes valued up to 200,000-320,000 euros, implementing a 120-installment repayment plan for debts to the state, and establishing stricter rules for servicers and debt funds.

The proposals have sparked a sharp political confrontation with the ruling New Democracy government. The Ministry of National Economy and Finance dismissed the plan as a collection of “old recipes” and “already implemented policies,” arguing that many of PASOK’s suggestions, such as primary residence protection, are already being addressed through existing legal mechanisms and extrajudicial processes.

PASOK officials, including Milena Apostolaki and Dimitris Spyrakos, countered that the government’s current approach prioritizes creditors over citizens and fails to address the social reality of the debt crisis. They argue that the current system allows for the massive redistribution of property through auctions, leaving many households and small businesses vulnerable.