Kyriakos Mitsotakis, in his weekly review of the government’s work on social media, discussed wage increases, tax and social security contribution reductions, efforts to support incomes against inflation, financial incentives to attract and retain doctors in problematic and remote areas, and the demographic challenge.
He emphasized that Greece is changing year by year, with the results of this transformation already visible in many areas. He also noted that the 45-point plan presented at the Thessaloniki International Fair (TIF) was not a “basket” of reckless handouts or unrealistic promises, but rather targeted measures aimed at transforming the economy by boosting productivity and outward orientation, while also supporting many social groups, especially the younger generation.
Mitsotakis also committed to continuing the fight to support incomes in the face of inflation, which in recent months has stabilized at lower levels than at the start of the year and is nearing the 2% target.
His full message:
“Good morning! The mandatory summer break and the Thessaloniki International Fair (TIF) kept us apart from our usual Sunday meetings for a while, but starting today, I’m back with our weekly review. I have a lot to share with you, as many things are happening that improve the daily lives of citizens and bring our country closer to European standards.
Last weekend at the TIF, I spoke about the double leap we need to make to reduce the still significant gap in incomes compared to the rest of Europe, while at the same time eliminating the inequalities that keep the country’s regions lagging behind in comparison to Attica.
We are not where we were in 2019. Greece is changing year by year, and in many areas, the results of this transformation are already visible. However, we know we need to move faster, more fairly, and more effectively to make up for the lost time of the more than decade-long crisis.
We are not just another government. We are a different kind of government. A testament to this is the 45-point plan I presented at this year’s TIF. It was not a basket of reckless benefits and unrealistic promises but targeted measures that transform the economy by increasing its productivity and outward focus while supporting many social groups, especially the younger generation. It’s a plan characterized by realism, vision, and responsibility, within the fiscal framework set by the EU, ensuring we never again face crises like in the past.
The 2025 economic policy includes 12 increases in pay (for public and private sector employees, retirees, and vulnerable groups) and 12 tax cuts, the most significant being another one-point reduction in social security contributions. The increase in disposable income is also a response to the issue of inflation, which continues to challenge households. Besides wage and pension increases, we are supporting household incomes in other ways, such as through free digital tutoring for 120,000 senior high school students, free afternoon surgeries for 37,500 citizens, affordable housing loans for 20,000 couples or individual households, and an interest-free program for energy-saving upgrades for at least 20,000 older apartments. We continue the battle to support incomes in the face of inflation, which has stabilized in recent months at lower levels than at the beginning of the year and is now close to the 2% target we have set.
For the medical and nursing staff of the National Health System (NHS), in addition to last year’s pay increases and the 20% increase in their overtime compensation, from 2025, on-call pay for NHS doctors will be subject to separate taxation at a 22% rate, fulfilling a longstanding request of theirs. The average monthly net benefit is estimated at 150 euros, and in many cases, it exceeds 200 euros. Additionally, we are offering an increased incentive of 200 to 600 euros per month, depending on the specialty and location, to attract and retain doctors in problematic and remote areas. I also want to announce something very important aimed at strengthening Primary Healthcare: from January 1, 2025, doctors choosing Internal Medicine or General Medicine as a specialty will receive a one-time financial incentive of 30,000 euros, in addition to their salary as residents. This is intended to increase the number of internists and general practitioners in the NHS, who currently make up just 6% of all specialties, compared to 20% in the rest of Europe’s medical workforce.
Moving on to our policy for supporting families, which is perhaps the government’s most important priority, especially given the demographic challenges we face. That’s why we are establishing a special observatory for demographic trends, which will allow us to monitor developments and take action accordingly. In addition, as I announced at TIF, we are proceeding with the lifelong recognition of the “three-child family” status for nearly 200,000 families, which will be certified through the gov.gr platform. This will increase the hiring quota for three-child families in the public sector to the same level as for large families, raising it from 12% to 16% of all advertised positions. Meanwhile, the existing provisions for large families regarding access to favorable housing programs will continue to apply to three-child families.
Other measures include the restructuring and increase of the three main OPEKA (Social Welfare Organization) allowances (Minimum Guaranteed Income, Housing Allowance, and Child Allowance), the nationwide expansion of the “Neighborhood Nannies” program, which is funded by the NSRF with 100 million euros, and giving municipalities the ability to add 20,000 new spots in municipal and private daycare centers. We have already increased the 2023 budget for daycare centers and Creative Centers for People with Disabilities (KEDDY) by 18 million euros, which means an additional 6,300 vouchers (5,000 for infants and toddlers and 1,300 for people with disabilities over 22 years old, bringing the total to 173,364 spots). Additionally, private health insurance for children up to 18 years old and voluntary benefits and vouchers provided by businesses to young parents will now be tax-exempt. A significant measure is also the provision of free fertility screening for women aged 30-35.
On the housing front, which is an issue troubling many major European cities, after intense negotiations with the European Commission, the second “My Home” program, worth 2 billion euros and funded by the Recovery Fund, is launching immediately. This will allow young people and couples up to 50 years old to acquire a home with an interest rate half of the commercial rate. The mortgage installment will be lower than what they would pay to rent a house of similar standards. Additionally, we have secured 400 million euros from the Recovery Fund for loans up to 20,000 euros, with zero interest, aimed solely at the energy upgrade of nearly 20,000 older residences. This program runs in parallel with the “Renovate-Rent” scheme and other initiatives of the Ministry of Energy.
Furthermore, responding to long-standing requests from property owner associations, we are introducing a three-year tax exemption for owners who lease out currently vacant apartments under long-term rental agreements. There are over 700,000 vacant apartments, of which 250-300,000 are in Attica alone. Regarding short-term rentals, which are linked to the issue of high housing costs, we are establishing new incentives and disincentives to balance the right to profit for some with the right to affordable housing for others. We are also continuing our social housing plan by utilizing dormant state properties, such as the 18-acre site of HROPEI, where hundreds of apartments could be built. Similar, smaller but significant properties in good locations exist across Attica and the rest of Greece. There will also be an amendment to the legislation to make the framework for social property development more attractive. I will write to you about this when we have more updates.
The new school year has begun, with 11 important changes in primary and secondary education that I believe will significantly improve the daily lives of students, teachers, and parents. I want to highlight the addition of 10,000 new permanent teaching positions—a record number—this year. Compared to 2023, appointments in special education have quadrupled, and the positions for Special Educational and Auxiliary Staff across all specialties have increased eightfold. This week also marks the pilot launch of an innovative and important initiative, the digital tutoring program for subjects in the nationwide exams, which will be completely free for all students, with live afternoon lessons covering the entire syllabus. I am pleased that the “Phone in the Bag” initiative has been well-received by both parents and students. Another significant state intervention is the “Marietta Giannakou” program, worth 250 million euros, for the renovation of hundreds of schools across Greece. The funds will come from the Public Investment Program, but this is also an opportunity for wealthy private donors to contribute.
Regarding the labor market, the pilot implementation of the digital work card is now being extended to the tourism and hospitality sectors. The measure is already successfully applied to approximately 750,000 employees working in banks, large supermarkets, insurance companies, security companies, and public utilities (DEKOs), with the total number of businesses now estimated at 73,000. With its extension to tourism and hospitality, the number of workers covered is expected to reach around 1.5 million. The goal of the digital work card is to fully protect workers’ rights and shield them from abusive policies related to undeclared overtime and illegal work-hour changes or excesses. Its effectiveness is confirmed by the significant increases in declared overtime in the sectors where it has been introduced, such as supermarkets, where a cumulative increase of 61.2% was observed from the start of the program until the end of 2023.
Lastly, a word on sports, as the new football season has begun with new safety regulations both inside and outside the stadiums, for the first time including fan club operations. We had committed to allowing only one fan club per football club, and we are delivering on this promise. Seven fan clubs representing Super League 1 teams—AEK, Aris, Olympiacos, OFI, Panathinaikos, Panserraikos, and PAOK, along with club of Iraklis—have already received certification from the Ministry of Sports for the timely submission of their required information. Following inspections, they will receive their annual operating license. The entire process is now completed digitally through the Fan Club Membership Registry on gov.gr, facilitating the quick and accurate search of necessary information for public safety reasons. It’s essential for the state, citizens, and sports stakeholders to work together to protect sports from the violence of the few.
That’s all for today. As you can see, we are back with full force, and we will continue in this way.
See you next Sunday!”
