The government is expected to announce by the end of this month a new program to address the housing problem, which will combine the subsidy for renovation with the energy upgrading of old properties, after securing the approval of the European Commission.
The program’s resources will come from the revision of the EU-subsidized NSRF, which is currently under way. They will be removed from other NSRF programs in order to be moved to housing, which is one of the priorities of the Commission. Commission President Ursula von der Leyen also mentioned this issue on Wednesday, even announcing the convening of a special housing summit.
The good news is that the priorities of the Commission and Greece coincide here: Housing is a pan-European as well as Greek problem. However, the two sides must also agree on the content of the new program and this has not yet been achieved.
The government’s initial idea to subsidize the interest rate on housing loans was not accepted by the Commission, apparently because it was believed that demand would increase and therefore so would property prices. Therefore, the negotiations turned to a program to increase supply. The government seeks to bring old properties onto the market, after they have been renovated, with a subsidy from the National Strategic Reference Framework. The negotiations with Brussels are ongoing, but have not been finalized, which is why housing was largely absent from the TIF basket. However, it will be among the next programs to be presented.
Referring to the housing issue, Alternate Economy Minister Nikos Papathanasis said on Monday that in order for old houses to enter the market, the Exoikonomo program, which is limited to energy upgrades, is not enough, but something broader is needed that also covers renovation. “We are currently trying to renovate with energy upgrades and are negotiating with the European Commission,” he said, adding that they have not yet received approval. “We are in negotiations because it is not easy, just like My House 2, which took us eight months,” he commented.
