Prime Minister Kyriakos Mitsotakis is poised to unveil a package of tax cuts and financial relief worth over €1.5 billion this weekend, aiming to halt his governing party’s erosion in public support. The announcement is slated for his annual economic policy speech.
Targeted at middle-income households, families with children, and pensioners, the relief package is designed to take effect in 2026. Officials say that Greece’s stronger-than-expected economic growth, budget surplus, and improved tax collections will enable the government to fund the measures without jeopardizing fiscal stability.
Greece’s economy has rebounded since the debt crisis of 2009–2018, with tourism playing a key role. However, rising living costs—particularly in energy, food, and housing—continue to squeeze household budgets. Despite a cumulative increase of 35% in the minimum wage, disposable income remains below the EU average.
The Prime Minister’s New Democracy party has seen its polling numbers plunge from 41% in 2019 to between 22% and 25% this summer. The decline has been attributed not only to economic hardships but also to repeated corruption scandals—most notably the misuse of EU farm subsidies—and the government’s handling of a fatal train crash in 2023.
Political analysts caution that even well-intentioned fiscal relief may do little to reverse Mitsotakis’s slumping approval ratings. "It may well be the toughest period for the government," remarked Costas Panagopoulos, head of ALCO pollsters.
With national elections scheduled for 2027, the coming months could determine whether this relief package delivers a genuine recovery in voter trust—or proves too little, too late.
Cabinet Led by Mitsotakis to Consider Energy, Economy, and Culture Reforms
New Study Reveals Declining Birth Rates and Rising Deaths
Ακολουθήστε το Lykavitos.gr στο Google News
και μάθετε πρώτοι όλες τις ειδήσεις
