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Mitsotakis Announces €3.5B Tax Cut, Wage Boost Package

9/7/2026

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Summary

Story summary

Greek Prime Minister Kyriakos Mitsotakis announced a €3.5 billion tax-cut and wage-increase package.
The plan gives pensioners a €400 annual bonus and public servants €500.
Farmers and three-child families get zero tax on income up to €20,000.
Advance tax payments for self-employed and businesses will drop to 50% over four years, 1.5% of GDP.
Mitsotakis pledged unemployment at 6% and debt below 110% of GDP by 2030, and elections in spring 2027.

History

Historical Context

After the euro’s launch in 1999 and Greece’s entry on 1 January 2001, the government cut spending to meet the Stability and Growth Pact’s 3 % deficit and 60 % debt limits. In 2024 Prime Minister Kyriakos Mitsotakis proposed a €3.5 billion tax-cut plan with pension bonuses and lower advance tax, targeting debt around 110 % of GDP by 2030. The move mirrors Greece’s shift from austerity to growth-oriented policy.

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Story summary

Greek Prime Minister Kyriakos Mitsotakis announced a €3.5 billion tax-cut and wage-increase package.
The plan gives pensioners a €400 annual bonus and public servants €500.
Farmers and three-child families get zero tax on income up to €20,000.
Advance tax payments for self-employed and businesses will drop to 50% over four years, 1.5% of GDP.
Mitsotakis pledged unemployment at 6% and debt below 110% of GDP by 2030, and elections in spring 2027.

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