Greek Prime Minister Kyriakos Mitsotakis recently unveiled a new set of policies aimed at improving the purchasing power of citizens and addressing the housing crisis in Greece. The measures include a 14 percent increase in the minimum wage, a 2.5 percent increase in pensions, and the introduction of a new tourist tax. Mitsotakis has set a goal to bring prosperity to Greece by 2027, a country that currently has the second-lowest GDP per capita in the European Union.
During his speech at the Thessaloniki International Fair, Mitsotakis outlined nine key challenges facing his government, including aligning public and private sector wages, transitioning to greener energy sources, and managing the effects of excessive tourism growth. He also emphasized the need to respond to the country’s declining and aging population, a critical issue for a nation heavily reliant on tourism that has been impacted by a prolonged economic crisis worsened by the pandemic.
In light of soaring housing and food prices, as well as high inflation rates, Mitsotakis highlighted the significant income disparities in Greece compared to other European countries. To address this, he announced plans to increase pensions by up to 2.5% in 2025 and gradually raise the minimum wage to 950 euros by 2027. Additionally, incentives to boost the birth rate and tax benefits to stimulate the rental market are part of the government’s strategy.
Furthermore, the Prime Minister shared details on specific measures, such as the gradual abolition of a special levy on the self-employed and the redistribution of revenue from a windfall tax on energy companies to support vulnerable citizens. Mitsotakis also introduced new initiatives, including a fee for cruise ship passengers disembarking at Greek ports and a Golden Visa scheme for foreign investors committing at least 250,000 euros to start-ups.
These policy announcements come at a crucial time for Greece, as the country aims to recover from the economic challenges exacerbated by the pandemic. By addressing key issues related to income inequality, housing affordability, and demographic trends, Mitsotakis’ government is setting a clear path towards economic growth and stability. With a focus on enhancing citizens’ purchasing power and promoting sustainable development, the new policies are expected to provide much-needed relief to the Greek population and contribute to the country’s overall prosperity in the years ahead.
