Greek PM Mitsotakis unveils tax‑cut and support package at Thessaloniki Fair

In August, Prime Minister Kyriakos Mitsotakis will present a new economic package at the International Thessaloniki Fair. The plan targets the Greek middle class and is built around three pillars – tax reductions, wage increases and pension boosts – while stressing that the measures will be cost‑ed and not add to public spending.

The package includes permanent support measures and occasional interventions, such as a 10‑cent‑per‑liter diesel subsidy for August. It is aimed at four groups: self‑employed professionals (with changes to the tax‑base system), retirees (a €300 pension increase and the planned removal of the personal pension difference in 2027), salaried workers (a rise in the minimum wage and stronger collective agreements) and young people seeking home ownership (including the “My Home” programme). The government also announced the removal of pension‑cut thresholds and an increase in the tax‑free allowance for gifts, with retroactive effect from 1 January.

The announcement follows criticism of a seven‑year period of high taxes on micro‑ and small‑medium enterprises, which employ about 87 % of the workforce. Official budget figures for the first half of 2026 show a primary surplus target of €1.9 billion, an actual surplus of €4.4 billion and a total surplus of €2.5 billion, reflecting a large fiscal over‑performance that the government attributes to increased tax revenues.