Greek premier to unveil €2 billion income-boost package ahead of elections
Prime Minister Kyriakos Mitsotakis will announce a €2 billion plan of tax cuts, wage hikes and other benefits on Saturday as he tries to regain poll support before next year’s vote.
In his annual economic policy address, Prime Minister Kyriakos Mitsotakis will roll out a €2 billion package designed to lift household incomes and shore up his centre-right government’s standing before the 2027 election. The proposal, equal to about 1% of national output, includes pension boosts, a rise in the statutory minimum wage, tax breaks for the self-employed and small businesses, and targeted relief for the agricultural sector.
Officials say the scheme will not jeopardise fiscal health, relying on 2% annual growth, a primary surplus of around 4% of GDP, and improved tax collection. The benefits will take effect in 2026 and 2027, with some tax cuts extending over four years. The move comes as the ruling party’s support has slipped to about 29% amid rising living costs, high unemployment and recent farmer protests over low prices and a farm-aid fraud scandal.
Why it matters
The plan could reshape Greece’s economy and influence voter sentiment ahead of a crucial national election.
How the sides frame it
MODERATE AGREEMENTLeft-leaning coverage details the specific pension relief measures and their direct benefits to retirees, while right-leaning coverage frames the package as a €2 billion income-boost aimed at shoring up the ruling party’s standing ahead of the 2027 election and stresses fiscal sustainability.
LEFT
Describes the concrete pension reforms and how they will lower contributions and increase payments for retirees
RIGHT
Portrays the package as a political and economic boost before elections, emphasizing cost-of-living relief, fiscal health, and party support
The left emphasises
- revised Solidarity Contribution applied only above €1,468
- pension increases of 2.6%-2.8% before taxes
- one-off payment of €400-€446 to about 85% of pensioners
The right emphasises
- €2 billion package equal to about 1% of GDP
- aimed at lifting household incomes and supporting the centre-right government before the 2027 election
- officials say it will not jeopardise fiscal health, relying on 2% growth and a primary surplus
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