Greek PM Dismisses Snap Elections, Unveils Major Tax Cuts & Wage Hikes
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Greek PM Rules Out Snap Elections, Announces Major Tax and Wage Reforms
Key Announcements and Economic Context
By Lefteris Papadimas
Political Landscape and Election Timing
ATHENS, Sept 6 (Reuters) – Greek Prime Minister Kyriakos Mitsotakis ruled out snap elections on Sunday a day after announcing a string of tax cuts and wage hikes, as he seeks to recover lost ground in opinion polls ahead of a general election due next year.
His centre-right government, which was re-elected with 40.5% of the vote in 2023 promising to increase incomes, remains ahead in opinion polls but support has slipped to below 30% amid a protracted cost-of-living crisis and allegations of corruption.
Official Statement on Election Date
“Elections will be held in spring 2027,” he said during a press briefing on Sunday, dismissing media speculation about snap elections this year. He added that he believed his party could still secure an outright majority and win a third consecutive four-year term.
Tax and Wage Reform Measures
Details of the Announced Reforms
On Saturday, Mitsotakis announced income tax breaks and wage hikes worth €3.5 billion ($4.06 billion), equivalent to 1.5% of GDP, to be rolled out over the next four years. He also pledged to cut unemployment to 6% and reduce public debt to below 110% of GDP by 2030.
Specific Benefits and Reductions
The measures include an annual bonus of €400 for pensioners and €500 for public servants, a zero tax rate on annual incomes of up to €20,000 for farmers and families with three children, and a gradual reduction in advance tax payments for the self-employed and businesses to 50%.
Greece’s Economic Recovery
Post-Crisis Performance
After a financial crisis in 2009 that triggered fears Greece would crash out of the euro zone, the country is now one of the best-performing in Europe.
Current Economic Indicators
Greece’s economy is expanding at an annual rate of 2%, outpacing the euro zone average. It expects a primary surplus of about 4% this year, double what was initially expected, giving fiscal space to fund the new measures.
(Reporting by Lefteris Papadimas; Editing by Ros Russell)
