Mitsotakis sets out €2.2 billion package as he eyes third term

Greek Prime Minister Kyriakos Mitsotakis used a major package of tax cuts and financial support to make the case for a third term in office, arguing that Greece should not risk reversing the economic progress achieved since the country emerged from its debt crisis.

Presenting measures worth €2.2 billion for 2027 at the opening of the Thessaloniki International Fair, Mitsotakis confirmed that parliamentary elections will be held in spring 2027. He framed the package not simply as immediate relief for households and businesses, but as the beginning of a broader programme running through 2031.

“The fruits of economic growth” must return to society, Mitsotakis said, presenting the measures as a response to persistent concerns over living costs, housing and household finances. The government estimates that the fiscal impact of the package will rise to €3.5 billion by 2030.

The announcement comes as the government seeks to demonstrate that Greece’s economic recovery is translating into higher living standards. Although the country has moved well beyond the sovereign debt crisis that began in 2008, household purchasing power and the cost of living remain politically sensitive issues.

The government has also recently sought to contain consumer prices. At the end of August, the Development Ministry launched an initiative covering more than 1,740 product codes, with participating companies announcing average reductions of 9.5%. The measures cover a range of food, school supplies and supermarket products, although the reductions apply to the participating products rather than representing an overall fall in food prices.

Relief for households

Much of Mitsotakis’ package is aimed at households.

Pensioners will receive an expanded annual payment in November, while the government plans to abolish a reduction affecting widows’ pensions introduced under the Tsipras-Katrougalos pension framework.

Families with children will receive additional tax relief, with particular support for larger families. The package also includes a new savings scheme for children, under which the state will match parental deposits up to a set limit until the child reaches adulthood.

For workers, the government plans another increase in the minimum wage and a further reduction in social security contributions. Mitsotakis said the minimum wage should rise above €950 in 2027, with the government’s longer-term target of €1,000 in early 2028.

Energy and housing are another central part of the programme. The government aims to reduce electricity costs over the coming years and cut certain social utility charges. It is also expanding subsidised housing measures for younger households and extending property-tax relief to additional smaller settlements.

For businesses and the self-employed, the package combines tax relief with changes to the way income is assessed. Farmers will receive additional tax support, while measures are also planned to improve access to financing for small and medium-sized enterprises.

From recovery to a political programme

Mitsotakis presented the measures as affordable because of the improvement in Greece’s public finances and wider economy.

He pointed to unemployment falling from 18% in 2019 to 7.9% in the second quarter of 2026, alongside the creation of around 600,000 jobs. Greece has also regained investment-grade status, while public debt has continued to decline.

The prime minister nevertheless warned that the new commitments would have to remain within the country’s fiscal room for manoeuvre, arguing that overspending could once again expose Greece to European scrutiny. He described the package as a “passport of credibility”.

The economic targets he set out extend well beyond the next election. Mitsotakis wants unemployment to fall below 6%, average wages to rise above €1,800 and annual economic growth to remain above 2%. His broader programme also includes higher investment, further debt reduction, support for manufacturing and the digitalisation of small businesses, as well as reforms in justice, education and public services.

But the speech was ultimately as much about the next election as it was about economic policy.

Mitsotakis presented the 2027 vote as a choice between continuing the current trajectory and risking a return to what he described as a period of uncertainty. Greece, he argued, needs a “steady hand”, a strong government and clear solutions.

Asked why he should seek a third four-year term, the prime minister said the simplest answer was to prevent the country from going backwards. But he sought to give the argument a broader political meaning, saying a third term should mark a new phase based on what he called a “progress and prosperity agreement”.

He also pointed to Greece’s upcoming EU Council presidency in the second half of 2027 and the 200th anniversary of the modern Greek state in 2030 as milestones for the country’s next political cycle.

Sources: BGNES, www.primeminister.gr

Caption: Greek Prime Minister Kyriakos Mitsotakis addresses the inaugural ceremony of the 90th Thessaloniki International Fair in Thessaloniki, Greece, 5 September 2026. Τhe anniversary 90th Thessaloniki International Fair (TIF) opened its doors with more than 1,000 exhibitors, Japan as the honoured country, 25 participating countries, 11 thematic sections, a special exhibition marking 100 years since the first event was held in 1926, and a rich programme of parallel events. The 90th Thessaloniki International Fair (TIF), will take place from 5 to 13 September 2026. EPA/ACHILLEAS CHIRAS