Greece eliminates bank fees as households struggle with rising costs
- Greece's government will eliminate bank fees for certain retail transactions to assist households during a cost-of-living crisis.
- This decision includes a cap of 0.5 euros on money transfers up to 5,000 euros and applies to transactions with state and utility companies.
- The government aims to boost the supply of housing and reduce rents while maintaining fiscal stability through these measures.
On December 15, 2024, in Greece, Prime Minister Kyriakos Mitsotakis announced the government's decision to eliminate various bank fees associated with retail transactions as part of broader measures aimed at alleviating the financial strain on households amidst a cost-of-living crisis. This policy change is a significant step that reflects the government's recognition of the urgent need to assist citizens facing increasing economic pressures. In addition to the removal of bank fees, the government plans to introduce a 0.5 euro cap on money transfers up to 5,000 euros. This legislative action is designed to provide financial relief to residents, enabling them to manage their transactions without incurring excessive costs. It's crucial to note that these changes also apply to transactions with the state and utility companies, addressing additional burdens that citizens face in their everyday financial interactions. The fiscal implications of these measures are noteworthy, as the banking sector currently generates around 200 million euros annually from fees. Analysts predict that reducing these charges could result in substantial revenue losses for banks; however, the government justifies the necessity of these interventions by emphasizing their alignment with fiscal stability and social responsibility. The financial strain caused by the rising cost of living has prompted the government to take decisive action to enhance the living standards of its citizens. Furthermore, Greece's banking sector is showing signs of recovery with improved non-performing loan ratios and a return to profitability. This positive trend indicates that the country's banks are well-positioned to absorb the potential losses associated with the removal of fees. As Mitsotakis addressed parliament, he also mentioned plans to increase property taxes on unused real estate properties owned by banks, which is intended to tackle the housing supply crisis and further reduce pressures on rental prices. As the country moves forward with these reforms, the government hopes to strike a balance between promoting economic growth and ensuring the welfare of its citizens.