Greece: Kyriakos Mitsotakis announces a 2.2 billion euro aid and tax cut plan

Greek Prime Minister Kyriakos Mitsotakis announced this Saturday, September 5, a vast aid and tax relief program of 2.2 billion euros in 2027, the year of the legislative elections. The conservative leader, who is aiming for a third term, hoped “that the benefits of growth would return to society (...) without ever endangering budgetary stability”, during a back-to-school speech in Thessaloniki. Among the aid measures announced is an increase in the minimum wage to 1,000 euros gross in January 2028.

Despite the economic recovery and growth of more than 2% since the end of the economic crisis (2010-2018), some Greeks feel excluded from this improvement due in particular to rampant inflation and a cost of living which continues to increase, without wages following suit. More than 36% of private sector workers were paid less than 1,000 euros gross per month in 2025, according to the national statistics authority. The minimum wage, set at 920 euros gross, has been increased several times but remains one of the lowest in the euro zone.

Prime Minister Kyriakos Mitsotakis assured Saturday evening that he had “felt the anguish” of his citizens “in the face of the high cost of living and their expectation that the success of the economy will be reflected in their own wallets”. Kyriakos Mitsotakis also announced an aid program for low-income families with three children. The tax on the purchase of properties by non-EU nationals is increased from 3 to 15% to avoid the multiplication of investments in seasonal rentals, which have contributed to the housing crisis in Greece.

Kyriakos Mitsotakis defends his record

The Prime Minister defended the results of his two successive mandates. “Greece now borrows at a lower cost than many countries in Europe. Unemployment fell to 7.9%, down from 18% when we took over the country. The country which was besieged by thousands of migrants now has impenetrable borders,” he said. “We need to remember where we come from. Should we risk jeopardizing these achievements with new adventures?” he said on Saturday evening.

Cornered by several scandals, notably fraud in European agricultural subsidies, the conservative party in power is losing ground in the polls but remains in the lead. According to a poll by the Interview institute, he would collect 26.5% of voting intentions followed by the party of former left-wing Prime Minister Alexis Tsipras (14.5%) and the Socialist Party (10%).