ATHENS (Reuters) -The Greek government promised help with energy costs for farmers on Friday, including a one-year extension of a tax rebate for agricultural diesel, hoping to calm protests by farmers who are also seeking fast compensation for losses in flooding.
Prime Minister Kyriakos Mitsotakis told parliament the diesel measure would cost the state 82 million euros ($89.31 million) in 2024 and announced additional steps to help farmers.
"Things will improve for our farmers... and solving their problems is in the heart of our government's priorities," he said.
Farmers have been setting up blockades in central and northern Greece, echoing protests by farmers in other parts of Europe, and have threatened to step up their action unless the government helps them cope with higher energy prices and the growing impact of climate change.
Mitsotakis, who met protesting farmers in central Greece this week, said PPC, Greece's biggest power utility, would offer an extra 10% rebate on electricity for farmers from May to September.
The government also promised that farmers' overdue power and water bills will be settled.
Farmers said the actions announced were not enough and unions will convene after a planned rally on Saturday to decide their next moves.
"The measures ... are not adequate. We want a permanent tax exemption on diesel," said Rizos Maroudas, president of the farmers federation in Larissa in central Greece.
Thousands of farmers in Thessaly, one of Greece's breadbasket regions, saw swathes of crops and thousands of animals submerged in flood water when two rainstorms hit the area in September. Sixteen people died in the floods.
Mitsotakis said the state will spend in total 3.3 billion euros over the coming years to repair damage in Thessaly.