Wildfires, heatwaves pose growing fiscal risk to Greece, PM adviser says

Arghyrou declined to say how much public funding would be allocated to the strategy, but said additional investment would be financed largely through higher tax revenues generated by a crackdown on Greece's informal economy.

Greece has no plans to issue catastrophe bonds, which provide funding after major disasters, though Arghyrou said the idea merited consideration.

The government is exploring incentives to boost insurance coverage among households and businesses while encouraging insurers to offer affordable policies.

Prime Minister Mitsotakis is expected to unveil tax incentives for businesses, workers and the self-employed next month ahead of a general election next year. Arghyrou said the measures would not come at the expense of fiscal discipline.

To address those risks, the government is pursuing an investment strategy aimed at strengthening water and energy infrastructure in tourism hotspots from Mykonos to Santorini, while also seeking to attract private capital, Arghyrou told Reuters.