FX.co ★ Greece plans €1 billion handout for poor

An economic crisis can hit any country, but everyone has its own methods to respond to it. In some countries, the government advises citizens to tighten their belts, while in other countries, on the contrary, the government cuts their spending. Greece plans to offer handouts worth 1 billion euros to poor Greeks who suffered during the seven-year debt crisis.

Prime Minister Alexis Tsipras announced that the country is ready to allocate 1.4 billion euros to pensioners and other vulnerable groups of the population that were seriously affected by the implementation of the austerity program. Greece was experiencing serious financial problems and was forced to introduce significant restrictions to budget funds spending. Tsipras managed to win the elections primarily thanks to promises to wind down the austerity program but did not fulfill his campaign pledges. As a prime minister, he again had to ask help from the EU and the IMF and even reinforced the previously imposed restrictions. However, such strict measures were not in vain.

Greece achieved its goal: the primary surplus - which excludes debt servicing costs - of 2.2 percent of the gross domestic product, outperforming the 1.75 percent bailout target. The surplus outperformance of 1.4 billion euros will be distributed to social groups that have suffered the biggest pressure during the financial crisis. The Greek Prime Minister stated that for the second year in a row, the government can distribute social dividends among the people who need it most. This year they are more prepared and effective and are able to pay a larger sum.