Starting with the package of tax relief and support measures to be unveiled at the Thessaloniki International Fair (TIF), the Greek economy is set to enter, from next month, a four month period of intense developments. These will include the largest reduction in public debt this year and in the years ahead through early loan repayments, along with the prospect of further credit rating upgrades in the new round of assessments due to conclude in November.

On the first weekend of September, Prime Minister Kyriakos Mitsotakis is expected to announce, from the podium of the TIF, the main pillars of economic policy for the months leading up to the 2027 elections, as well as a strategic plan with targets through to 2030 and interventions across key areas of the economy and society. Government sources say preparations are intensifying to finalise these announcements, which will place emphasis on reducing the tax and social security burden and on protecting small and medium sized businesses and pensioners. Support for the middle class and vulnerable groups through permanent benefits will be a central plank of the package. According to government sources, the measures will follow the same logic as the announcements made at the three previous editions of the fair during the government’s second term. Housing measures, for example, featured in the packages unveiled at all three previous fairs, as did tax cuts aimed at families.

The central message of the prime minister’s announcements will be the continuation of the government’s policy of supporting society, while safeguarding the country’s fiscal stability. This twin approach to economic policy, according to senior officials, rests on strong economic growth and a reduction in tax evasion, which together generate primary surpluses. These are then returned to society as a dividend or used to further reduce public debt. In this vein, the government has already announced that this year it will increase further the amount of public debt being repaid early, taking the annual total to 13 billion euros, up from the 8.79 billion euros originally forecast. This was made possible precisely because of the economy’s strong fiscal performance. The total includes 6.94 billion euros repaid in June relating to bilateral loans under the Greek Loan Facility (GLF), as well as loans from the European Financial Stability Facility (EFSF) worth 2.5 billion euros, a 1.2 billion euro reduction in treasury bills, and the early repayment of a 2.2 billion euro bond due to mature in December 2027. The benefit from these moves is estimated at 2.6 million euros over the next seven years.

These developments will feed into the new round of credit reviews of the country’s creditworthiness, which begins in the coming fortnight. The process opens with the Canadian rating agency DBRS, which publishes its report on 4 September, followed on 18 September by Moody’s and the German agency Scope. DBRS and Scope currently rate Greece at investment grade BBB, while Moody’s rating sits one notch lower, at Baa3. Standard & Poor’s review follows on 23 October, with Fitch’s assessment due on 6 November, both of which currently rate Greece at BBB. Economic analysts and industry figures see a further upgrade as likely, given the bigger debt reduction driven by the early repayments. Based on this year’s larger early repayment, public debt is expected to fall below 110% of GDP by 2031, a year earlier than initially projected, with the government aiming to break below the 100% of GDP threshold by the mid-2030s. Public debt is estimated to reach 136.8% of GDP this year, before falling below 120% of GDP in 2029.

The 2026 fair and the three previous editions

A brief look back at recent editions of the fair shows the following.

In 2025, the government announced the biggest change to taxation in decades, centred on benefits for families and young workers. This included a two percentage point cut to all tax rates for incomes up to 40,000 euros and the introduction of an intermediate 39% rate for incomes between 40,000 and 60,000 euros. Additional rate cuts were announced for families with children, income tax was scrapped entirely for people under 25 earning up to 20,000 euros, and the ENFIA property tax was cut by 50% in thousands of small settlements with populations of up to 1,500, a levy due to be abolished altogether in 2027.

In 2024, 45 measures were unveiled, including cuts to social security contributions, the complete abolition of the business activity levy for self employed professionals, and the scrapping of pension reductions for working pensioners. Housing also featured prominently, with the My Home 2 scheme and a three year exemption from rental income tax for landlords who let their properties on long term leases.

In 2023, among other announcements, the government unfroze mandatory three yearly pay increments for workers, ending a 12 year freeze imposed under the country’s bailout programmes. The tax free threshold for families with children was raised by 1,000 euros, and a series of measures made the use of card payment terminals compulsory across almost all sectors of retail and services. Support measures were also introduced for regions hit by Storm Daniel.