Greece's Prime Minister Promised a Major Tax Cut
Greek Prime Minister Kyriakos Mitsotakis presented a four-year plan to lower taxes and increase household incomes. He promised relief for farmers, retirees, the self-employed, and civil servants, and aims to raise the minimum wage to 1,000 euros by 2028. These announcements came amid a decline in his party’s popularity and as the country prepares for the 2027 parliamentary elections.
Greek Prime Minister Kyriakos Mitsotakis presented a plan for economic changes over the next four years on Saturday. The plan places its main emphasis on lowering taxes and increasing citizens’ incomes. The prime minister’s speech had a distinct pre-election tone. Mitsotakis spoke of the need for political stability and promised citizens what he called “a leap in prosperity for all.”
His statements came at a time when the ruling New Democracy party is losing ground in opinion polls. Party officials fear that it will be difficult to maintain a single-party government after the next election.
Who Is Promised Tax Cuts?
Mitsotakis announced tax relief for several large segments of the population. These include, in particular, farmers, the self-employed, retirees, and civil servants. The prime minister paid special attention to low-income earners. According to him, taxes for those earning less than 20,000 euros a year will be eliminated.
This is set to be one of the key elements of the government’s new economic plan. At the same time, Mitsotakis promised to gradually raise the minimum wage. By 2028, according to his plan, it is set to reach 1,000 euros. In this way, the government aims to simultaneously reduce the tax burden and increase the incomes of those with the lowest wages.
A Separate Plan for Farmers
The prime minister paid special attention to farmers. The agricultural sector has recently been at the center of a serious scandal involving European Union subsidy payments. Due to problems and delays in payments, many farmers have faced financial difficulties.
Mitsotakis promised to take this into account in the new tax policy. He stated that farmers with incomes below 20,000 euros should be completely exempt from taxes.
A separate focus is on farmers engaged in livestock farming. The government plans to offer them a set of measures designed to help protect their farms from animal diseases in the long term. This is a critical issue for Greece, as disease outbreaks can cause significant financial losses for farmers.
Money for Newborns
Another proposal from Mitsotakis concerns families with children. The prime minister announced the creation of a savings account for every newborn child.
The mechanism he proposed involves joint contributions from parents and the state. If parents deposit a certain amount into the account each month, the state will match that amount. This money will accumulate until the child turns 18. In this way, the government aims to provide young people with financial support that they can access once they reach adulthood.
Why Mitsotakis Brought This Up Right Now
The prime minister’s economic promises came on the eve of parliamentary elections. The next nationwide elections in Greece are scheduled for 2027. The most likely scenario at this point is a vote in mid-May.
At the same time, speculation periodically arises in the country about possible early elections as early as this year. However, for now, the 2027 election scenario remains the main one. The timing of the election is also important in light of the international agenda. In July 2027, Greece is set to assume the rotating presidency of the Council of the European Union.
“New Democracy” Risks Losing Its Majority
Mitsotakis’s New Democracy party is currently struggling in the polls. Recent surveys indicate that the party may have difficulty securing an absolute majority in the upcoming elections. If the party is unable to form a government on its own, it will have to seek coalition partners. This will mean more complex negotiations and could shift the current balance of power in Greek politics.
That is precisely why Mitsotakis’s economic promises have not only a social but also an obvious political context. The prime minister is trying to show voters that economic growth can translate into tangible benefits for ordinary citizens—through lower taxes, higher wages, and additional support for families.
In his speech, he called for maintaining political stability and linked it to the ability to continue economic reforms. “A leap in prosperity for all”—that is how Mitsotakis described the course he has proposed.
What the Government Promises
The Greek prime minister’s new plan covers several areas at once. Among the main promises are tax cuts for farmers, the self-employed, retirees, and civil servants. For people earning less than 20,000 euros a year, Mitsotakis promised a complete tax exemption. The government also aims to raise the minimum wage to 1,000 euros by 2028.
For families with children, a savings account system is proposed, under which the government will match the amount parents contribute. Farmers engaged in livestock farming are being promised additional measures to protect against animal diseases. All of this is set to become part of the economic program for the next four years.
At the same time, the fulfillment of these promises will depend on the state of the Greek economy and the capacity of the national budget. The political outcome of the program will become clear after the next parliamentary elections. For now, Mitsotakis is banking on economic arguments and trying to convince voters that the government is capable of providing them with higher incomes and a lower tax burden. This is reported by Euractiv.
In Greece, an F-4 Phantom military jet crashed on September 5 at a base near Athens during the annual Athens Flying Week airshow. Two pilots were killed in the crash, Channel NewsAsia reports, citing the Greek news agency ANA.
