Kyriakos Mitsotakis, the cabinet, and numerous governmental and party officials of New Democracy are relocating to Thessaloniki over the next few days, with attention focused on the Prime Minister’s speech tomorrow at the Thessaloniki International Fair (TIF). In this speech, he is expected to outline a roadmap of income support, everyday reforms, and institutional interventions with a horizon set for 2027, the end of the government’s four-year term.
With the motto “every day counts,” as reported by protothema.gr yesterday, Mr. Mitsotakis will deliver a speech that strikes a balance between the need for fiscal stability and boosting citizens’ incomes, either through permanent increases or ad hoc support measures.
The Prime Minister will arrive in Thessaloniki tonight, where many ministers have already gathered. Upon arrival, he will attend an event hosted by the Ministry of Climate Crisis and Civil Protection at the Met Hotel. Later, as is customary, he will head to the Electra Palace Hotel, where the government spokesperson hosts the traditional gathering with journalists. During these informal discussions, Mr. Mitsotakis is typically reserved, avoiding extensive conversation ahead of his speech. He is also expected to stop by the ARC bar, where the youth wing of New Democracy (ONNED) has a scheduled meeting. On Saturday, he will take his traditional tour of the TIF pavilions, with Germany being this year’s honored country.
The Support Package
Given the challenges faced by the government after the European elections and the absence of significant opposition, Mr. Mitsotakis aims to emphasize everyday measures and boost disposable income. Yesterday, he already began by announcing additional incentives ranging from €200 to €600 per month to attract or retain doctors in remote areas. According to protothema.gr, there will also be new income support for NHS employees, most likely through another increase in overtime pay.
Additionally, members of the armed forces are set to benefit, as the government is considering restoring the long-frozen “night shift” allowances. An emergency bonus will be given this Christmas, not only to pensioners affected by the “personal difference” but also to other vulnerable groups. Mr. Mitsotakis will also announce a new pension increase of at least 2.5%. Farmers will benefit from the permanent exemption of agricultural fuel from the excise tax, along with other potential measures, especially for areas affected by natural disasters. Freelancers can look forward to the abolition of the remaining trade levy and targeted changes to income assessments that have sparked significant reactions. Furthermore, in consultation with the European Commission, fiscal space has been found for a forward-looking reduction in social security contributions by 1 percentage point starting next year, possibly in two stages.
Closing
Despite some behind-the-scenes discussions, the government, through its spokesperson, dismissed any plans for reducing VAT on olive oil yesterday, resisting the “temptation” of cutting indirect taxes, as both Maximos Mansion and the Ministry of Finance believe such measures would have little impact on prices while creating a budget shortfall. There will also be a complete redesign of welfare benefits, including increases in child benefits, housing benefits, and the Guaranteed Minimum Income. Favorable provisions, though not full parity with families with many children, will also apply to families with three children.
Funds will be allocated for the renovation of school buildings, while for housing, as previously reported by protothema.gr, a model involving a “halt” on new Airbnb licenses in overcrowded areas is being considered. Simultaneously, tax incentives will be offered over three years to encourage the opening of vacant apartments. The “Renovate-Rent” program will receive additional funding, and the “My Home 2” program, which offers low-interest housing loans to over 20,000 recipients, will be finalized, with implementation beginning in the first quarter of 2025.
