Greek Prime Minister Kyriakos Mitsotakis has unveiled a bold economic plan aimed at tackling the country’s persistent economic challenges and improving the lives of its citizens. This plan, announced at the opening of the Thessaloniki International Fair (TIF), outlines a multi-pronged approach to address issues such as low purchasing power, the housing crisis, and a declining population.
At the heart of the plan is a significant increase in the minimum wage, which will rise to €950 ($1,050) per month by 2027. This represents a substantial increase from the current €830 ($920) and aims to provide much-needed relief to low-income earners. In addition, pensions will be raised by up to 2.5 percent in 2025, providing a boost to the country’s aging population.
Recognizing the escalating cost of living, Mitsotakis also outlined measures to combat inflation and its impact on food and housing costs. The government will distribute the €243 million ($268 million) revenue from a windfall tax on energy companies to vulnerable citizens, offering crucial financial support. To further stimulate the housing market, the government will introduce tax benefits to incentivize rental properties.
Furthermore, Mitsotakis acknowledged the challenges posed by Greece’s heavy reliance on tourism, vowing to implement a comprehensive plan to mitigate the sector’s impact on the environment and economy. This includes a new fee for passengers disembarking from cruise ships in Greek ports, aimed at generating revenue while managing the influx of tourists.
The Prime Minister also addressed the country’s demographic challenges, outlining plans to increase the birth rate through incentives and to attract foreign investment with a new Golden Visa scheme for those investing at least €250,000 ($277,000) in start-ups.
Greece, with a population of 10 million, has faced significant economic difficulties in recent years, including a near decade-long economic crisis exacerbated by the post-pandemic recession. The country has one of the lowest GDP per capita in the European Union, and average annual income in Greece is half the European average. Mitsotakis aims to bring prosperity to Greece by 2027 through these ambitious economic reforms.
