Greece battles high inflation, soaring energy costs and seeks third term

Eurostat reports that Greece leads the EU in housing energy upgrades. The Institute of Economic and Industry (IOBE) warns that inflation in Greece remained above the Eurozone average in the first half of 2026, reaching 4.4% in June, driven by a 9.1% rise in energy prices after the Middle‑East conflict triggered a sharp shock. Energy costs now account for a larger share of household budgets than the EU average, and while clean electricity generation has increased, consumer bills stay high.

Prime Minister Kyriakos Mitsotakis told an Endeavour Greece event that his government has “very good chances” of winning a third term by confronting populism with centrist, reform‑focused policies. He highlighted a 41% increase in the minimum wage and ongoing work on an AI strategy to improve public services.

A study by the Bank of Greece shows that the Participation Tax Rate can reach 99.6%, meaning new workers lose almost all additional earnings to taxes and the loss of benefits, making employment financially unattractive for many households. Researchers propose gradual reductions of benefits as incomes rise to correct this distortion.