Prime Minister Kyriakos Mitsotakis will announce more than €1.5 billion in tax cuts and welfare measures this weekend, in a bid to counter sliding support amid Greece’s cost-of-living crisis and corruption scandals.
The package, to be detailed in his annual economic policy speech on Saturday, will include tax breaks for middle-income earners and families with children, as well as handouts for pensioners.
It is expected to take effect in 2026.
According to Reuters, government officials said the measures will be funded through strong economic growth, a budget surplus and improved tax collection, without risking fiscal targets.
Greece’s economy has recovered to near pre-crisis levels after a decade of austerity, but rising prices for energy, food and housing continue to squeeze households.
Despite wage increases in recent years, disposable incomes remain below the EU average.
Mitsotakis’ New Democracy has seen support fall to around 22–25 per cent in recent polls, down from the 41 per cent vote share that brought it to power in 2019.
The drop follows poor results in last year’s European elections and mounting criticism over corruption cases and the handling of the deadly 2023 train crash.
Pollster Costas Panagopoulos said the new relief measures may not be enough to reverse the government’s declining fortunes.
National elections are due in 2027.
