Greece Asks EU for More Fiscal Flexibility to Shield Households From Energy Crisis

Greek Prime Minister Kyriakos Mitsotakis has sent a letter to the European Union requesting greater fiscal flexibility to help shield households and businesses from the fallout of the ongoing energy crisis, according to reports.

In the letter to Brussels, Mitsotakis argued that Greece and other heavily indebted European countries need more budgetary room to cushion the impact of rising gas and oil prices, which have climbed in 2026 amid the conflict in the Middle East. He said the higher energy costs were placing additional strain on national budgets already constrained by EU fiscal rules.

The request comes as European governments grapple with how to balance energy support measures against commitments to reduce public debt and deficits under the bloc's fiscal framework. Countries with higher debt loads, including Greece, have periodically pushed for more leeway to respond to external shocks without breaching EU spending limits.

Rising energy prices have been felt across the continent this year, with the increase in oil and gas costs linked to supply disruptions stemming from the conflict in the Middle East. Governments have used a mix of subsidies, tax adjustments and direct support payments to soften the impact on consumers, though such measures carry a fiscal cost.

It was not immediately clear how the European Commission would respond to Greece's request, or whether other member states facing similar pressures would make comparable appeals for flexibility. The Greek government has not detailed what specific measures it would introduce if granted additional fiscal room.