Greek Prime Minister Kyriakos Mitsotakis has announced plans to raise pensions, reduce taxes, and increase the minimum wage by 2027. In his economic policy speech at the Thessaloniki trade fair, he emphasized that these measures aim to balance strong economic growth with the need to support citizens affected by the high cost of living.
By 2025, pensions will rise by up to 2.5%, and the minimum wage will be increased gradually from the current €830 to €950 by 2027. In addition, Mitsotakis pledged a reduction in social security contributions by 1% and the elimination of a special levy on the self-employed next year. A total of €243 million in windfall tax revenue from energy companies will also be distributed to vulnerable citizens.
Despite Greece’s recovery from its severe debt crisis, the prime minister stressed that the country’s fiscal stability will remain a priority. "I don’t have a bag of unreasonable handouts, but instead offer useful and effective choices," Mitsotakis said, highlighting his government’s commitment to responsible financial management.
During the speech, thousands of protesters gathered outside, demanding better wages and calling for an end to what they referred to as "starvation wages." In response to ongoing concerns over wildfires, floods, and the economic burden of climate change, Mitsotakis announced plans to boost civil protections, assist affected farmers, and offer tax breaks to homeowners who insure against natural disasters.
To address Greece’s declining birthrate, the prime minister introduced extended housing plans and benefits for young parents, while also outlining a defense spending increase of €1.6 billion in 2025. Altogether, these new measures are expected to cost around €3 billion, or 1.5% of GDP, and will be crucial to supporting Greece’s economic recovery while adhering to EU fiscal rules.
Mitsotakis, re-elected last year, continues to face challenges from voters grappling with the rising cost of living, as the lingering effects of the COVID-19 pandemic and recent natural disasters have hit the country hard. However, the proposed reforms aim to bolster the economy and address the pressing needs of Greek citizens while maintaining fiscal prudence.
A detailed press conference is expected on Sunday, where Mitsotakis will provide further insights into his government’s economic and social plans for the coming years.
