Mitsotakis unveils tax cuts and pay hikes ahead of Greek election

Greek Prime Minister Kyriakos Mitsotakis has announced a package of tax cuts and salary increases worth over €2 billion, positioning his government for a general election expected next April. The pledges came during his annual state-of-the-economy address at the Thessaloniki Trade Fair on Saturday.

"Our country has overcome stagnation and is now ready to taste the fruits of its efforts," Mitsotakis said. He promised to move forward "with the country's stabilization, relief from the unbearable taxes of the 2023–2027 four-year period, with growth, better income, major and bold reforms."

The measures include tax breaks for self-employed professionals, farmers, and village residents, alongside salary and benefit increases for retirees and public sector workers.

The speech was delivered under heavy security, with more than 3,000 police officers deployed and several streets and subway stations closed near the venue. Over 25,000 people, according to police estimates, joined union-led protests across the city, with farmers driving tractors into the downtown area to demand relief from rising costs.

Greece recorded economic growth of 2.1% last year and has maintained a budget surplus while reducing its high public debt. However, Greek workers currently have the lowest purchasing power in the European Union.

Mitsotakis, who has led the country since 2019, is seeking a third term. Recent polls suggest his New Democracy party may not secure a governing majority. Saturday's event was also overshadowed by a fighter jet crash at an air show near Athens that killed two air force pilots hours earlier.