Mitsotakis unveils €95 million electricity subsidy for Greek industry

Electricity subsidies for Greek industry

Greek Prime Minister Kyriakos Mitsotakis announced targeted industrial support to offset rising electricity costs during his address to the Hellenic Federation of Enterprises (SEV) on 6 October 2026. The relief package specifically targets key manufacturing sectors, including cement, food production, paper, and plastics, alongside extra assistance for energy-intensive industrial enterprises. The mechanism operates through European Union state aid allowances and the temporary European safety net designed to mitigate crisis impacts. The intervention will directly lift 95 million euros in costs from production, with broader reporting citing total burden reductions reaching up to 195 million euros. Mitsotakis framed the measure as an essential shield against international volatility and energy market pressures.

Mitsotakis detailed the rationale and structure of the industrial energy subsidies during his speech:

Extraordinary conditions require extraordinary interventions. With the margins of State Aid and the temporary European safety net against crisis impacts, we are proceeding with an immediate electricity subsidy in sectors such as cement, food, paper, and plastics, as well as additional support for energy-intensive businesses beyond emissions compensation.

Macroeconomic progress and borrowing rates

Addressing the business assembly for the seventh time during his premiership, Mitsotakis reviewed the structural trajectory of the Greek economy. He stated that Greece is recording the fastest rate of public debt reduction among all member countries in the Organisation for Economic Co-operation and Development (OECD). Mitsotakis also noted that Greece currently secures sovereign borrowing at lower interest rates than four Group of Seven (G7) economies. He asserted that the government will refuse any fiscal policies that could send misleading signals domestically or abroad, identifying economic credibility as the fundamental anchor of ongoing stability.

Mitsotakis stressed the necessity of safeguarding the country's financial gains during his remarks:

Our country is recording the fastest debt reduction in the history of the OECD. Greece borrows more cheaply than four G7 states. We will not put at risk the stability that we acquired with so much effort.

Calls for European fiscal flexibility

Addressing the wider geopolitical environment, Mitsotakis noted how international instability continues to affect public finances, business planning, and citizen living costs. He argued that extraordinary external pressures necessitate coordinated supranational responses equipped with greater budgetary leeway for national governments. Mitsotakis recalled that he had previously submitted a formal proposal on fiscal flexibility to European Commission President Ursula von der Leyen. He emphasized that European institutions must balance economic discipline with flexible intervention mechanisms during acute economic crises.

Energy transition and regional strategy

Turning to structural development, Mitsotakis outlined the government's national strategy for regional growth and domestic energy security. He stated that Greece has increased the share of renewable energy sources in its domestic electricity generation mix. According to Mitsotakis, this green energy transition has helped keep wholesale electricity prices in Greece among the lowest across Europe. He concluded that these structural gains provide a foundation for further industrial and regional expansion.

Reflecting on the country's economic shift during his years in office, Mitsotakis addressed the assembled business leaders:

I am addressing you for the seventh time as prime minister from the podium of the SEV General Assembly, and indeed it is enough to reflect on the country's course during this period to see the leaps we have achieved. Because indeed Greece managed to transition from stagnation to growth, and from the margins of Europe we found ourselves at its center. It was a difficult effort, but rapid in relation to its results.