Greek Prime Minister Announces Major Tax Reforms and Wage Hikes

Greek Prime Minister Kyriakos Mitsotakis unveils significant tax breaks and wage increases for workers, pensioners, and the self-employed, totaling €2.2 billion, as part of a broader economic strategy ahead of upcoming elections. Despite being re-elected in 2023, his government's support has waned amid economic challenges.

In a significant policy shift ahead of national elections, Greek Prime Minister Kyriakos Mitsotakis has introduced a series of tax reforms and wage hikes aimed at boosting incomes for various sectors, including workers, pensioners, and the self-employed.

The €2.2 billion plan includes tax breaks and annual bonuses for pensioners and public servants, alongside full tax exemptions for low-income farmers and families with three children. With Greece's economy currently performing robustly post-2009 financial crisis, the measures leverage fiscal space created by a projected primary surplus.

Despite these initiatives, the government's popularity has dipped amid lingering economic challenges and allegations of corruption. The new reforms, however, align with Mitsotakis's commitment to improving living standards, as evidenced by plans to raise the minimum salary further by 2028.