The broader conditions may appear unfavorable for the government, yet Kyriakos Mitsotakis is determined to present at the Thessaloniki International Fair (TIF) a wide-ranging package of measures, centered on the principle of sharing growth across Greek society. The initiative, valued at around €1.7 billion, includes the government’s most ambitious tax reform in years, alongside measures for the middle class, families, pensioners, and citizens in the regions. It will also feature commitments to major reforms with a horizon extending to 2030.
In an informal discussion with journalists hosted by government spokesman Pavlos Marinakis, Mr. Mitsotakis stressed that his priority is not short-term gains in the polls but a longer-term strategy leading up to the end of his term. The government’s political wager, he noted, is to regain the initiative through the delivery of concrete commitments to citizens.
At mid-term, he recognizes the need to reconnect with the social groups that backed New Democracy in 2019 and 2023. While an uptick in opinion polls would be welcome, the broader goal is to restore political momentum.
Tax relief for all
Outlining the measures, Mr. Marinakis said they would cover all citizens: “private-sector employees, public servants, freelancers, and pensioners. No one will be excluded, whether through reduced withholding on salaries or lower annual tax payments for the self-employed.”
The plan includes tax cuts for salaries between €10,000 and €60,000, scaled according to the number of children per family, with extra support for households with three or more children. Freelancers will also benefit from deductions, though corporate tax rates remain unchanged.
Pensioners expect the long-promised abolition of the “personal difference,” while uniformed officers will gain from both salary increases and tax bracket adjustments. The government is also preparing announcements on demographic policy and is considering abolishing the ENFIA property tax in small towns and villages.
€1.7 + €1.5 billion
According to Mr. Mitsotakis, permanent tax relief is the safest way to ensure citizens see higher disposable income without fiscal risks. Officials note that, in addition to the €1.7 billion package, previously announced permanent measures worth €1.5 billion will also take effect—some as early as this November, such as support for low-income pensioners and extra rent subsidies.
Reforms, the prime minister will argue, are generating healthy surpluses that allow the government to return resources to society as a whole, not just targeted groups, while safeguarding fiscal stability. He will also highlight geopolitical risks, underlining the need for political stability in Greece.
Political signals
At the same time, Mr. Mitsotakis is aware of efforts to weaken him personally and undermine his goal of securing a third term. Against this backdrop, government officials are closely watching the reemergence of Alexis Tsipras. It is expected that Mr. Mitsotakis will use his TIF speech and press conference to send a clear message about Greece’s political future.
Notably, while Mr. Tsipras addressed supporters at the Vellidion Conference Center, Mr. Mitsotakis was speaking at an event on artificial intelligence—reflecting the different priorities of the two leaders. Though keeping an eye on the former prime minister, Mr. Mitsotakis told journalists he does not currently see him as a direct rival, noting that the centrist electorate, where New Democracy has prevailed in recent years, shows little interest in Mr. Tsipras.
Government officials criticized Mr. Tsipras for “distorting reality” about the 2015–2019 period, rebadging new taxes as “patriotic levies” and rebranding old programs as “new compasses.” They stressed that Greece today is converging with Europe, with per capita income at 70% of the EU average and the highest growth rates in the bloc. “The country is moving forward, not backward,” they concluded.
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