Greek Prime Minister Unveils Ambitious Economic Reforms

Greek Prime Minister Kyriakos Mitsotakis announced plans to increase pensions, cut taxes, and raise the minimum wage by 2025. Amid recovering from a debt crisis, Greece expects a 2.5% economic growth this year. Mitsotakis emphasized balanced economic growth and fiscal prudence in his annual speech.

Greek Prime Minister Kyriakos Mitsotakis promised on Saturday to increase pensions, cut taxes, and social security contributions, as well as raise the minimum wage in 2025, aiming to support those hit by the high cost of living. Greece is recovering from a debt crisis that reduced its economic output by almost a quarter between 2009 and 2018, following austerity measures that included repeated wage and pension cuts.

However, in recent years, Greece has achieved strong economic growth, forecasted at 2.5% for this year. In his annual economic policy speech at the Thessaloniki trade fair, Mitsotakis stated that Greece has changed and emphasized the importance of balanced economic growth being reflected in pensions and wages.

Despite aiming to increase pensions by up to 2.5% and raise the monthly minimum wage from 830 euros to 950 euros by 2027, Mitsotakis promised to adhere to fiscal prudence in line with European Union rules. He also announced the scrapping of a special levy on the self-employed and the distribution of 243 million euros from a windfall tax on energy companies to vulnerable citizens.

Additionally, Mitsotakis addressed the cost-of-living crisis post-COVID-19, the impact of natural disasters, and plummeting birth rates, pledging extended housing plans, tax exemptions for young parents, and boosting civil protections. This comprehensive plan is expected to incur a cost of 3 billion euros in 2025 alone, accounting for about 1.5% of Greece's GDP.

(With inputs from agencies.)