Greek Member of the European Parliament Dimitris Tsiodras has called on the European Union to accept proposals by Greek Prime Minister Kyriakos Mitsotakis to exempt national energy support measures from fiscal calculations.
Speaking during a plenary session of the European Parliament, Tsiodras urged the bloc to allow member states to use windfall Value Added Tax revenues stemming from unexpected price increases to directly support households and businesses.
Tsiodras pointed out that the rising cost of living has become the primary concern for citizens in every European country. He noted that a steep increase in fuel prices has intensified economic pressure, affecting everything from daily transportation to food production.
Warning that the upcoming winter is expected to be difficult, the Greek representative stressed that the European Union must exhaust all available tools to assist vulnerable populations. He emphasized that European leaders must move past general exhortations and deliver bold, joint solutions.
Details of the Greek proposal
The proposal urged by Tsiodras originates from a formal letter sent by Mitsotakis to the President of the European Commission. In the letter, the Greek prime minister requested an exemption from EU fiscal rules for temporary state assistance programs designed to protect citizens from soaring energy prices.
The initiative also calls for flexibility regarding Value Added Tax. Under the proposal, member states would be permitted to channel extra tax revenues generated by unexpected price inflation straight into support schemes for families and commercial enterprises.
Tsiodras, who serves as the press spokesperson for the New Democracy party delegation in the European Parliament, told fellow lawmakers that the EU has a duty to use every available margin of maneuver to stand beside struggling citizens.
European fiscal rules and context
European Union fiscal regulations monitor national budget deficits and overall public debt levels across all 27 member countries. Under standard rules enforced by the European Commission, government spending on subsidy programs counts against national budget targets unless an official waiver or exemption is approved.
Value Added Tax is a standard consumption tax applied to goods and services across the European single market. When energy and commodity prices increase rapidly, national governments collect higher nominal tax revenues, creating unexpected budget surpluses that Greece proposes returning to consumers.
Kyriakos Mitsotakis has served as Prime Minister of Greece since July 2019 and leads the centre-right New Democracy party. Tsiodras represents New Democracy in the European Parliament, where the party belongs to the European People's Party group, the largest political grouping in the assembly.
Broader economic impact and next steps
Rising fuel and electricity costs across Europe have driven broader inflation in recent years, placing heavy financial strain on agricultural producers, supply chains, and low-income households. These economic pressures have prompted repeated calls from southern member states for EU-wide fiscal flexibility.
The proposal submitted by Mitsotakis remains before the European Commission, which oversees fiscal governance and legislative proposals in the bloc. European lawmakers are expected to hold further debates on energy policy and cost-of-living relief as member states prepare their national budgets for the coming winter.
