In a difficult political period for the conservative government and in the 7th year of his mandate, Greek Prime Minister Kyriakos Mitsotakis has presented a new package of economic and social reforms, worth 1.6 billion euros, from the 89th Thessaloniki International Fair. The package aims to support over 4 million Greek citizens and, according to the Prime Minister, constitutes “the most courageous reforms in recent years.”
Mitsotakis said Greece had moved from “crisis to stability,” citing falling unemployment, rising investment and tourism as evidence of his government’s economic success. However, he acknowledged that the cost of living remains a serious challenge for many Greeks and pledged support without compromising fiscal stability.
Main measures for citizens
The package includes a series of measures that directly affect family budgets:
Tax reduction: 2 points for everyone and additional reduction for families with children.
Zero tax for young people up to 25 years old with income up to 20 thousand euros.
Tax reduction from 22% to 9% for citizens up to the age of 30.
The benefits for citizens from these measures are estimated at 400 to 4,100 euros per year.
In an effort to curb the rise in housing prices, the government plans to:
The construction of 2,000 apartments for homeless citizens, in former military barracks.
Reduction of the tax rate for rents from 12 thousand to 24 thousand euros, by 25%.
Exemption from ENFIA tax for the first residence in villages with less than 1,500 inhabitants - initially halved in 2026 and then total abolition in 2027.
VAT reduction by 30% on small border islands.
Salary increases and support for pensioners
More than 151,000 employees in the security and diplomatic sectors will benefit from salary increases, including:
military
Police
Firefighters
Coast Guard
Diplomats
For retirees, the "personal difference" will be halved in 2026 and completely abolished in 2027, bringing benefits to hundreds of thousands of beneficiaries.
Reform until 2030
Mitsotakis also presented four long-term reforms, which will extend until 2030:
A new national diploma for education
Modernized public health system
Modernization of urban planning and cadastre
New national energy map
"I do not give empty promises or money that does not exist. I only give concrete plans for development, with the aim that in 2027 the country will open a new, even more successful chapter," declared Mitsotakis.
Protests on the streets
In contrast to the prime minister's upbeat tone, Thessaloniki was gripped by anti-government protests on Saturday afternoon, organized by the country's main unions. The protests reflect public discontent over the cost of living and the housing crisis.
Meanwhile, protests were held in Athens and other cities to remember the victims of the train disaster two years ago, which killed 57 people. The victims' families and citizens demanded justice and accountability.
