Greek fiscal policy and 2026 Economic Forum

The Greek government is preparing a significant fiscal package to be presented at the 2026 Economic Forum and the Thessaloniki International Fair (TIF). Initial expectations suggested the forum would serve as a platform for announcing measures targeting tax relief, business support, retirees, farmers, and housing issues. Subsequent details indicate the government is finalizing a package valued at approximately 2 billion euros. This plan, to be presented by Prime Minister Kyriakos Mitsotakis, aims to support the middle class, employees, retirees, and self-employed professionals. Key components include targeted reductions in Value Added Tax (VAT) on specific goods and services, alongside reforms to tax presumptions and estimated income. Officials describe these measures as permanent reforms intended to correct systemic injustices rather than emergency interventions. While the government highlights macroeconomic growth and debt reduction, critics have questioned whether the forum has become a tool for government propaganda, noting structural weaknesses such as low productivity and high trade deficits.

In a separate effort to combat inflation, a National Price Reduction Initiative is being implemented to alleviate household costs. Development Minister Takis Theodorakis reported that approximately 1,500 product codes are targeted for price reductions, with changes expected to appear on supermarket shelves by August 31. As of August 20, the initiative includes 750 branded product codes from 62 suppliers and roughly 100 private-label items. The average price reduction is estimated at 7%, though some items may see discounts of 10% or more. The initiative covers essentials such as dairy, meat, pasta, legumes, cleaning supplies, and hygiene products, with a specific focus on school supplies like notebooks and bags to assist families. While food inflation showed a slight decline in July, Minister Theodorakis warned of potential future pressures from geopolitical uncertainties and rising oil prices.