During his speech in Parliament regarding the bill regulating the minimum wage, Prime Minister Kyriakos Mitsotakis also addressed the banking system, indicating that government intervention is imminent.

The Prime Minister stated that the government had called on the banks to resolve operational issues, but their response has been disappointing. “High fees, low deposit interest rates, loans not being granted, and properties not being auctioned to lower market prices” were some of the issues highlighted by Mr. Mitsotakis. “Expect very soon the government’s intervention with our proposals,” he remarked.

In addition, Mr. Mitsotakis discussed the minimum wage, emphasizing that it should not be a mere means of survival but the starting point of a career. He noted that, under this bill, from 2027 onwards, the minimum wage will only increase and can no longer be reduced.

“The government pledged before the 2023 elections that the minimum wage would reach €950 and the average wage €1,500. This is a target we will not only meet but surpass,” he added.

On the topic of inflation, the Prime Minister criticized solutions proposed by PASOK, such as reducing VAT on specific products, arguing that they are both non-compliant with EU regulations and ineffective. He cited examples: “In Spain, flour with zero VAT saw a 30% increase, while in Greece, the rise was 17%. The same applies to milk. Such measures ultimately benefit intermediaries, not consumers. Additionally, selective VAT reductions for specific products are not feasible,” he explained.

“I’ll reiterate in today’s plenary session: public discourse has no room for uncosted slogans or hidden agendas suggesting new taxes or higher rates, as I heard from one of your MPs, Mr. Androulakis,” the Prime Minister concluded.

Watch live the Prime Minister’s speech

During his briefing to political editors on this bill, government spokesperson Pavlos Marinakis highlighted the innovations of the new proposed system for calculating the minimum wage using a mathematical formula, which include:

• Enhancing security for workers, as it ensures that the minimum wage cannot be reduced.
• Linking the minimum wage to real economic indicators, such as inflation and productivity. It takes into account price developments for the lowest 20% of the income distribution while also ensuring that workers benefit from economic growth by tying their wages to business profits.
• Basing the system on objective data from the Hellenic Statistical Authority (ELSTAT), thereby boosting transparency and trust.
• Including the public sector for the first time, ensuring that public employees are also protected and receive the nominal increases applied to the private sector minimum wage.
• The calculation mechanism applies from 2027 onwards, starting at a baseline of €950.

According to Mr. Marinakis, this bill comes at a time of significant labor market transformation over the past 5.5 years:

• Unemployment has decreased by roughly 50%, reaching its lowest single-digit rate since 2009.
• 500,000 new jobs have been created.
• The minimum wage has increased by 28%, from €650 to €830, while the average wage has risen by 21%.
• Greece ranks 11th among the 22 EU member states with a legislatively established minimum wage.
• The number of employed youth has increased by 28.9%.
• Similarly, employed women have increased by 24.6%.
• The implementation of the Digital Work Card has significantly boosted declared overtime, with some sectors seeing increases of up to 61%.
• Social security contributions have been reduced by 5.5 percentage points, benefiting both businesses and employees.

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