Not with a “basket” of benefits for all, but with measures that will leave a social footprint and respond to critical contemporary problems, Kyriakos Mitsotakis will head to Thessaloniki on Friday. For the DETH’s “package”, he draws up a plethora of measures that, in combination – and not piecemeal or disconnected from each other – all together will aim to provide solutions in three key areas: the housing crisis, the demographic problem, and the support of the middle class, which is the “engine” of the Greek economy.

Based on the latest information, the amount of the payments”breaks” the 1.5 billion euro limit that was originally announced. It will move closer to 1.7 billion and will emphasize tax breaks, families with children, young couples, and uniformed workers. These will be permanent measures and will be in place and applied every year, in addition to any other benefits launched from 2026 onwards.

What’s “locked”

The “sure measures” in this year’s TIF package include:>

– Relaxations in direct income taxes with a focus on middle-class incomes (€20,000-50,000 range) so that wage earners and households see immediate disposable income, with priority given to families with children through increased tax credits/tax deductions per child. However, changes – marginal ones – are also expected in the presumption for freelancers.

– Measures for cheaper homes with housing cost relief measures, such as the “1 rent gift” starting in November, such as low-rent housing through social counter-rent, expansion of the “My House” program, etc.

– Benefits for uniformed personnel, in addition to the new “Special Working Conditions and Dangerous Work Conditions” allowance (+100€/month from 1/7/2025), mainly based on the new Armed Forces pay scale, which will be announced in detail in the coming days.

– Families with children: an additional increase in special tax credits for dependent children is proposed, to significantly benefit families with 1-3 children, with a stronger escalation for large families. The targeting is directly linked to demographics being listed as a national priority.

– Wages – pensions: New wage increases, a reduction in insurance contributions, intervention in the personal pensioner’s personal difference and possibly an expansion in the new permanent 250 euro allowance to be given every November are announced.

On the contrary, they are “left out” or postponed:

– Generalized, horizontal benefits without income/family targeting are not included, to preserve fiscal resilience and space for targeted relief.

– Indirect tax reductions / VAT reductions as there is no guarantee that businesses will pass them on to final consumer prices.

– Extensive reductions in rates beyond the targeted middle bracket and an increase in the indirect rate for single people (€8,636 currently) as the burden will fall on targeted rates and family allowances.

Why now

The government’s motto is “supporting society with respect to stability”. The final decisions were helped by the apparent budget outperformance, with a primary surplus of €7.9 billion in the seven months and strong tax revenues (€40.4 billion), giving the necessary room for permanent and targeted interventions without breaking the fiscal balance.