Greek PM promises four-year tax cut plan ahead of elections

Greek Prime Minister Kyriakos Mitsotakis presented a four-year tax-cutting plan on Saturday in a speech widely seen as an early campaign pitch ahead of next year's national elections. He promised a "leap in prosperity for all" and repeatedly stressed the need for political stability.

The plan includes tax cuts for farmers, self-employed workers, pensioners and civil servants, along with a gradual increase of the minimum wage to one thousand euros by 2028.

Farmers in focus

Mitsotakis placed particular emphasis on farmers, who have been hit hard by payment delays following a recent scandal over EU agricultural subsidies. He said taxes would be abolished entirely for people earning less than 20,000 euros a year, while livestock farmers were promised a comprehensive set of measures to provide long-term protection against animal diseases.

The prime minister also announced a new savings account scheme for every newborn child: if parents choose to deposit a certain amount each month, the state will match that contribution until the child reaches adulthood.

Election backdrop

Greece's next general election is due in 2027, though there has been speculation about early elections this year. For now, the most likely scenario points to a vote in mid-May 2027. Greece is also set to take over the rotating presidency of the Council of the EU in July.

According to recent polls, Mitsotakis's ruling New Democracy party could struggle to win an absolute majority and form a single-party government.

Separately, Greece plans to repay around 13 billion euros of debt early in 2026 in order to bring its borrowing below Italy's level by year's end. In July, the country also approved a large defence procurement package worth 4.2 billion euros.