The measures announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair were detailed by Finance Minister Kostis Hatzidakis, along with Deputy Ministers Christos Dimas and Thanos Petralias.

“We are among the fastest-moving countries in the European Union. We have the largest percentage increases in investments. The government aims to prioritize certain issues such as demographics, housing, and climate change while also addressing demands from certain social groups. Everything proceeds within the framework of fiscal capacity,” said Finance Minister Kostis Hatzidakis in his introduction.

The minister added that “we consistently exceed fiscal targets. We have increased funds for public investments, and tax revenues have risen without increasing taxes. There has been an impressive improvement in the acceleration of the out-of-court settlement mechanism and a new image of our beaches.”

In the past five years, Greece has been among the fastest-growing EU countries, and in some areas, the fastest. Greece is second in terms of growth rates, with triple the rate of increase in disposable income compared to the Eurozone average, he added.

Regarding the recovery of investment-grade status, Hatzidakis emphasized that Greece will save €800 million from borrowing in 2024 alone.

“The increase in net spending will amount to €2.8 billion in 2025 and could reach €3.5 billion,” he noted.

The Minister of National Economy and Finance referred to 12 pay increases and 12 tax reductions:

12 Pay Increases

• New pension increase from January 1, 2025 (estimated at 2.2-2.5%, costing €400 million)
• Expansion of the goal achievement bonus (costing €40 million)
• Incentives for attracting doctors to remote and underserved areas (€16 million)
• €200 support for disabled benefit recipients of OPEKA (€37 million)
• One-time financial aid of €100-200 for pensioners with a personal difference (€100 million)
• Increase in student housing allowance for regional universities (from €1,500 to €2,000 per year, and €2,500 for cohabitation, costing €15 million)
• An extra installment for child benefit recipients of OPEKA (€70 million)
• €200 aid for uninsured elderly (€7 million)
• Public sector wage increase so that the starting salary is not lower than the minimum wage (€100 million)
• 20% increase in nighttime compensation for uniformed personnel (€25 million)
• €200 aid for disability benefit recipients of EFKA (€7 million)
• 50% increase in the monthly allowance for Minimum Guaranteed Income recipients (€22 million)

12 Tax Reductions

• 1% reduction in social security contributions from 2025
• Abolition of the business tax for freelancers
• Permanent refund of excise tax on agricultural diesel
• Income tax exemption for vacant properties that are rented out
• VAT exemption for new constructions
• Abolition of the fixed telephone fee for fiber-optic connections over 100 Mbps
• Exemption from insurance premium tax for children under 18
• Tax exemption for voluntary corporate benefits for new parents
• ENFIA reduction for insured properties against natural disasters
• Flat-rate taxation for NHS doctors
• Incentives for innovation and mergers
• Reduction of stamp tax on a series of transactions

Increases for uniformed personnel are in addition to the general public sector wage increase, as well as the reduction of health insurance contributions by 0.5%, which will apply to both the public and private sectors.