Greek PM unveils plan to boost incomes ahead of elections

On September 5, Greek Prime Minister Kyriakos Mitsotakis unveiled a plan to boost incomes ahead of the upcoming elections. The tax reform, estimated to cost €2.2 billion in 2027, amounts to around one percent of Greece's GDP. Key measures include an annual bonus of €400 for pensioners and €500 for public servants, zero income tax for low-income farmers and families with three children, and a reduction in advance tax payments for self-employed individuals and small businesses.

Mitsotakis' center-right government, which secured 40.5% of the vote in 2023 on a promise to increase incomes, currently leads in opinion polls. However, the government has seen its support dip below 30% due to a persistent cost-of-living crisis and allegations of corruption. Despite a financial crisis in 2009 that threatened Greece's exit from the euro zone, the country has since recovered, now ranking among Europe's top performers. Greece's economy is growing at an annual rate of 2%, surpassing the euro zone average.

In addition to the income measures, Mitsotakis announced a new minimum monthly salary of €950, which will rise to €1,000 in 2028. Furthermore, he proposed reducing pension contributions by 0.5%.