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Greece's small businesses frozen out of government's energy support plan
Evangelo Sipsas in Athens
Greek Prime Minister Kyriakos Mitsotakis has announced his second set of energy measures. /Costas Baltas/Reuters
Greek Prime Minister Kyriakos Mitsotakis has announced his second set of energy measures. /Costas Baltas/Reuters

Greek Prime Minister Kyriakos Mitsotakis has announced his second set of energy measures. /Costas Baltas/Reuters

Many in Greece have welcomed new measures announced by Prime Minister Kyriakos Mitsotakis to tackle the ongoing energy crisis. It's the second time this year the Greek government has taken action to ease the pressure on embattled households and businesses. 

But not everyone is happy. Some businesses say that they have been left out in the cold.

"Unfortunately the risk nowadays is very high," said local business owner Stefanos Zouridakis. "We used to offer discounts only twice or three times a year, just like everyone else, but now we are forced to offer discounts throughout the year. That's just to pay some of our bills."

He continued: "If you check the numbers coming in, you'll think business is booming, but that money is not enough. I still must use my savings to cover everything. So at the end of the day I'm making less with more tourists."

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Energy prices here in Greece are among the highest in Europe and are expected to increase by another 65 percent, hitting record levels by winter. In addition, the country is already experiencing the highest inflation rate since the early 1990s.  Mitsotakis's government announced a new round of support measures at the weekend, with $5.5 billion in initiatives aimed at supporting Greeks impacted by the ongoing energy crisis.

New tax breaks, an increase in pensions and minimum wage, energy allowances and appliance renewal subsidies are among the measures included. However, some political opponents say the measures don't go far enough, particularly when it comes to small and medium sized businesses.

"These measures add some numbers to the government's communication campaign, but they're just too small to make a change in the needs of households and even smaller for businesses," said Syriza Party MP Sokratis Famellos.

The former minister for energy and environment added: "The energy costs are just too high. Comparing it to last year it is seven to eight times higher, and when it comes to LNG it's close to 15 times higher. So the measures or the grants handed out from the government are not significant for a change." 

In Greece eight out of 10 people in employment work in a small business. This sector contributes close to 60 percent of the country's gross domestic product. It's also the group that says it has been neglected when it comes to relief measures. 

Meanwhile, energy experts say the government in Athens are not entirely to blame for pushing small businesses into debt, accusing Brussels of exacerbating the problem.

"For the past three years there haven't been any subsidies for business that reduce their energy consumption, so no matter what you do, you won't be able to keep up with the increasing prices," Famellos told CGTN. 

"On the other hand the government hasn't included small businesses in the relief measures," he added. "And it's not only Greece. Ever since the pandemic the EU created relief funds to tackle the costs, and used the same package for the energy crisis, but forgot to include small businesses, a sector that unfortunately is fading away."

Greek businesses were badly impacted by the COVID-19 pandemic with some 300,000 of them pulling down their shutters for good. Although the government says measures for small businesses will be forthcoming, many owners are worried that this may come too late.

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