Mitsotakis to announce more than €2 billion in tax cuts and relief measures

Athens, Greece. Prime Minister Kyriakos Mitsotakis is expected to announce more than €2 billion in tax breaks, pay rises and other relief measures on Saturday as his government seeks to address cost-of-living pressures ahead of next year’s election.

The package, worth about 1% of Greece’s gross domestic product, is expected to include pension increases, another rise in the minimum wage, tax breaks for self-employed workers and small businesses, and support for farmers.

Planned measures

Three government officials said Mitsotakis will unveil the measures during his annual economic policy speech on Saturday. The package is expected to cover almost all social groups and farmers without endangering the country’s fiscal health.

The measures will take effect in 2026 and 2027, the officials said. Some tax breaks will extend over four years.

Funding and economic outlook

Strong economic growth, a higher-than-expected budget surplus and more comprehensive tax collection are expected to finance the package.

Greece’s economy is expanding at an annual rate of 2%, above the euro zone average. The government expects a primary surplus equivalent to about 4% of GDP this year, nearly double its initial forecast.

Cost-of-living pressures

Mitsotakis’ centre-right government was re-elected with 40.5% of the vote in 2023 and remains ahead in opinion polls.

Unemployment stands at 7.9%, compared with the European Union average of 6.1%, while GDP per capita in purchasing power is among the lowest in the bloc. Average monthly income remains at its 2009 pre-crisis level of €1,500, according to Labour Ministry data, while food prices, energy costs and residential rents have risen by at least 30% since then.