Greek PM Rules Out Early Polls, Unveils €3.5 Billion Tax Cuts and Wage Hikes

Greek Prime Minister Kyriakos Mitsotakis has dismissed speculation of early elections, confirming that the next general election will be held on schedule in spring 2027. The statement came during a press briefing on Sunday, a day after his government unveiled a package of tax cuts and wage increases worth €3.5 billion (about $4.06 billion), equivalent to 1.5% of GDP.

Mitsotakis expressed confidence that his centre-right party, which was re-elected in 2023 with 40.5% of the vote, can secure an outright majority and win a third consecutive four-year term. However, recent opinion polls show support for the government has slipped to below 30%, amid a prolonged cost-of-living crisis and corruption allegations.

The new measures, to be rolled out over the next four years, include an annual bonus of €400 for pensioners and €500 for public servants. Farmers and families with three children will benefit from a zero tax rate on annual incomes up to €20,000. The government also plans to gradually reduce advance tax payments for the self-employed and businesses to 50%.

Mitsotakis also pledged to cut unemployment to 6% and reduce public debt to below 110% of GDP by 2030. Greece, which faced a severe financial crisis in 2009 that threatened its euro zone membership, is now one of Europe's best-performing economies, expanding at an annual rate of 2% — outpacing the euro zone average. The country expects a primary surplus of about 4% this year, double initial projections, providing fiscal room to fund the new measures.