The direct fiscal cost for the compensation of those affected by the catastrophic floods of the last few days, as well as for the immediate restoration of public infrastructure, is expected to amount to several hundred million euros.
More specifically, it is estimated that the cost to the state budget in 2023 will exceed 700 million euros, although an exact estimate cannot be made until the full extent of the disaster is revealed.
However, the final cost that includes compensations to be granted by the State, for damaged homes, lost agricultural production, damage to businesses, extensions of tax payments, but also the cost of restoring damaged infrastructure, such as roads, bridges, dam, etc., is estimated that it will significantly exceed 1 billion euros, with the amount extending over the next few years as well.
This amount will be added to the equivalent for the compensations for the fires, adding further pressure in the execution of this year’s state budget.
Therefore, a new supplementary budget will likely be submitted for this year, but this will depend on the final amount of the compensations to be paid in 2023. In addition, any economic aid proed to offset the cost of high prices may also be reduced.
