Prime Minister Kyriakos Mitsotakis has announced a package of measures to help Greece's municipalities cope with soaring energy costs. It includes 540 million euros ($620 million) to be paid out right away.
Speaking at the annual conference of the Central Union of Municipalities of Greece after touring the southern region of Messinia, Mr. Mitsotakis said 300 million euros would go to municipalities immediately for local recycling projects.
Another 240 million euros will be paid this month to clear overdue municipal bills owed to energy suppliers.
He said the local tax on hotel and short-term rental stays will rise from 0.75% to 1%, with the money going to municipalities.
The yearly state grant for repairing school buildings will double.
Another 50 million euros will help towns buy batteries to store power from local renewable energy projects.
Mr. Mitsotakis also promised 200 million euros a year for local roads, funded by a special levy, and a discounted electricity rate for municipalities. He said both would have to wait until energy markets settle.
"I will not deceive you with false promises and uncosted slogans," he said.
He blamed rising living costs on an energy crisis triggered by tensions in the Strait of Hormuz. He said Greece's budget surpluses allow it to absorb part of the higher fuel prices, at a time when other countries cannot.
Mr. Mitsotakis, who is seeking a third term in elections due in 2027, urged voters to avoid "adventures or experiments." He also criticized opposition parties for voting against a law passed Thursday that caps interest rates for vulnerable borrowers at 3%.