Kyriakos Mitsotakis, in his speech at the 88th International Exhibition of Thessaloniki on September 7, 2024, developed a reform plan with interventions aimed at increasing incomes, developing the country's productive potential, alleviating inequalities, and addressing important problems such as housing and demographics.
Greek Prime Minister Kyriakos Mitsotakis promised on Saturday to increase pensions, cut taxes and social security contributions, and increase the minimum wage in 2025, looking to support people squeezed by the high cost of living.
Greece is still recovering from a debt crisis that wiped out nearly a fourth of its economic output in 2009-2018, due to austerity measures that included repeated wage and pension cuts.
But over recent years it has been achieving strong economic growth, which is seen at 2.5% this year.
In his annual economic policy speech at the Thessaloniki trade fair in northern Greece, Mitsotakis said Greece has changed, with strong economic growth that should be distributed in a balanced way, and be reflected in pensions and wages.
But he also promised to maintain fiscal prudence in line with European Union rules.
"I don't have with me today a bag with reckless handouts but only suggestions for useful and effective choices," said the leader of the centre-right New Democracy party, which came to power in 2019 and won a second term last year.
In detail, the 45 measures announced by Kyriakos Mitsotakis are as follows:
1) Insurance contributions will be reduced by 1% from January 1st, instead of the originally planned 0.5%.
2) More than 2,000,000 pensions will increase from January 1st, with rates rising from 2.2% to 2.5%.
3) The minimum wage will increase in April, from 830 euros today, with the aim of reaching 950 euros by April 2027, automatically raising the three-year salary and many benefits.
4) In December, 670,000 pensioners with an income of up to 1,600 euros who still have a personal difference will receive up to 200 euros.
5) The 767,000 Child Benefit beneficiaries will receive an additional installment of the benefit in December.
6) The 220,000 beneficiaries of disability allowances from OPEKA and EFKA, along with 35,000 uninsured seniors, will receive a reinforcement of 200 euros.
7) The 205,000 beneficiaries of the Minimum Guaranteed Income will receive an increase of 50%.
8) From spring, nearly 700,000 civil servants will begin to see new annual increases, gradually reaching 100 euros per month.
9) The on-call remuneration of NHS doctors will be taxed independently at a rate of 22%, equivalent to an average salary increase of 130 euros per month.
10) An additional incentive of up to 7,200 euros per year will be provided to doctors who staff health structures in remote areas.
11) Free afternoon surgeries for 37,000 citizens will be funded by resources from the Recovery Fund.
12) A new "Marietta Giannakou" program will upgrade and renovate hundreds of schools, with an amount of 250 million euros from the Public Investment Program, aiming to significantly increase this amount through private sponsorships.
13) The compensation for night work of enlisted men (Armed Forces, Coast Guard, Police, and Fire Brigade) will increase by 20%.
14) The Business Tax will be completely abolished, resulting in an annual benefit of 325 euros for each self-employed individual or sole proprietorship.
15) The minimum taxable amount for freelancers will be reduced in areas with 1,500 inhabitants instead of 500, and the maximum employee salary criterion will be calculated only comparatively, not additively.
16) The Special Phone Tax, which amounts to 5% for fiber optic connections with speeds over 100Mbps, will be abolished.
17) Allowances for new parents will be increased by 20 million euros, with 173,000 vouchers and 20,000 new nursery places.
18) Employers who facilitate their staff with benefits up to 5,000 euros annually for new parents will be exempt from tax on this amount, which will increase for each new family member.
19) Equalization of the rights of families with three children with those with more, irrespective of income: from public sector appointments and university admissions to participation in Social Tourism programs.
20) The "Neighborhood Nannies" program will be expanded with vouchers up to 500 euros for each child.
21) Immediate abolition of the 15% tax on health insurance for children up to 18 years old.
22) Free fertility testing for women aged 30 to 35 years old and simplification of EOFYY coverage in assisted reproduction procedures.
23) Reform of unemployment benefits so they do not serve as an alibi for undeclared work, directing aid to those truly in need.
24) The three main social allowances—Minimum Guaranteed Income, housing allowance, and childcare allowance—will be more equitable, effective, and targeted, aiming to reduce child poverty in the country.
25) From 2025 onwards, the refund of the Special Consumption Tax on agricultural diesel will be permanent, and these amounts will be returned in a fair and proportional manner.
26) A flexible system for managing farmers' and cooperatives' "red" loans will be instituted, allowing interest reduction and partial capital forgiveness according to their capabilities, with options for refinancing, definitive settlement, and elimination of obligations over time.
27) A program of 600 million euros will boost greenhouse cultivation across the country.
28) A plan about exchanging and developing dormant public lands belonging to the Ministry of Agricultural Development, where investors will develop large-scale greenhouses exclusively for high-value export agricultural products.
29) The "My Home" II program, with a budget of 2 billion euros from the Recovery Fund, will be launched for more than 15,000 young people or couples up to 50 years old to acquire a first residence, at half the commercial interest rate.
30) A 400-million-euro program will offer zero-interest loans up to 20,000 euros, targeting energy upgrades for thousands of old homes.
31) Owners who rent closed properties or convert short-term leases to long-term will be exempt from rent tax for three years.
32) Contracts through platforms will be subject to a new, increased fee.
33) New short-term leases will be prohibited for at least one year in Athens' three central apartments.
34) The ENFIA discount will increase by 20% for owners who insure houses worth up to 500,000 euros.
35) Higher-value immovable properties will retain a 10% VAT discount if insured; otherwise, they won't be compensated by the state for damage from April 2025.
36) Businesses with a turnover of more than 500,000 euros must insure against natural disasters; otherwise, they will not be reimbursed. This applies to every new contract and renewal of old vehicle contracts for private or business use.
37) Incentives for innovation, business mergers, and acquisitions will expand with tax rebates up to 315% for research investments.
38) The minimum capital limit of a company resulting from smaller transformations is reduced to 100,000 euros.
39) Past Stamp Duty on numerous transactions: from business loan interest or insurance transactions to import credits and engineering budgets. And from forming non-profit legal entities to issuing a simple professional license.
40) Grant "Golden Visa" for funds used to finance startup companies, with a minimum of 250,000 euros.
41) A new National Investment Fund will be established with 300 million euros to incentivize dynamic initiatives, especially in sectors with high added value.
42) 12+1 regional development plans will be formed with many small and large projects in each municipality and mountain or island community.
43) The abolition of 15 time-consuming bureaucratic procedures will reduce the administrative burden by 25%, mainly for our export businesses.
44) A Cruise Fee will be imposed per passenger disembarking at a Greek port, with higher rates in Santorini and Mykonos, lower in other ports, and scaled by the period.
45) The Climate Crisis Resilience Fee will increase from April to October, proportionally, for hotels, accommodation, and rental properties through platforms. The specific revenue will go back to the local communities to better organize their infrastructure against the burden they receive every summer.