Full Breakdown
Greek Prime Minister Rules Out Snap Elections After Unveiling €3.5 Billion Tax and Wage Package
9/10/2026, 7:01:08 AM
Political Context and Election Timing
By September 6, Prime Minister Kyriakos Mitsotakis announced that Greece’s next parliamentary election will take place in the spring of 2027, dismissing media speculation about an early vote. His centre-right New Democracy party, re-elected in 2023 with 40.5 % of the vote, remains ahead in opinion polls but support has slipped below 30 % amid a prolonged cost-of-living crisis and corruption allegations.
Fiscal Package Overview
The government introduced a fiscal package worth €3.5 billion—about 1.5 % of GDP—to be spread over four years. Key elements include:
- A €400 annual bonus for pensioners and a €500 bonus for public-sector employees.
- Zero income-tax rates on earnings up to €20,000 for farmers and for families with three children, beginning 2026-2027.
- A €500 gross Christmas bonus for civil servants starting December 2027 and a permanent €80 gross monthly salary rise for them from January 2028.
- A minimum wage increase to €1,000 by January 2028 for private-sector workers.
- Reductions in advance tax payments for the self-employed and businesses to 50 % over a phased schedule, plus accelerated depreciation for equipment upgrades.
- A €2 billion “My Home 3” housing programme and abolition of the ENFIA property tax in small settlements from 2027.
Economic Outlook
According to the Reuters report, Greece’s economy is expanding at an annual 2 % rate, outpacing the euro-zone average, and the government expects a primary surplus of roughly 4 % this year—double earlier forecasts—providing fiscal space for the new measures.
Official Statements & Responses
Mitsotakis told reporters that his party could still secure an outright majority and a third consecutive four-year term.
Implementation Milestones
The rollout begins with the pensioner bonus in 2026, followed by the civil-servant Christmas bonus in December 2027 and wage hikes in January 2028. Additional steps include a gradual 30 % cut in wholesale electricity prices between 2027-2029, a 50 % reduction in household electricity surcharges from January 2027, and an increase in the property-transfer tax on non-EU buyers from 3 % to 15 %. These measures are slated to benefit roughly 218,000 people, raising average annual incomes by €220.
