Greece’s government unveiled a series of economic relief measures totaling more than 2 billion euros over the coming year, including tax reductions for self-employed professionals, farmers, and rural residents, alongside salary and benefit increases for retirees and public sector workers.
The announcement came during a state-of-the-economy address delivered by Prime Minister Kyriakos Mitsotakis in Thessaloniki, where it coincided with significant labor unrest. Union-led demonstrations drew more than 25,000 participants according to police estimates, with organized groups staging rallies throughout the city. Farmers participated in the protests by driving tractors into downtown areas, prompting authorities to deploy more than 3,000 police officers and close multiple streets and subway stations in the vicinity of the prime minister’s speech.
Mitsotakis characterized the relief package as part of broader economic stabilization, stating that his country had moved beyond stagnation and was prepared to distribute gains from recent growth. The government points to recent economic achievements, including a budget surplus and growth rate of 2.1% in the preceding year, alongside continued progress in reducing public debt.
Despite these macroeconomic indicators, workers in Greece face significant affordability challenges. The nation’s labor force maintains the lowest purchasing power among European Union member states, a disparity that has fueled public discontent. Leadership of Greece’s largest labor union characterized inadequate wages and rising prices as the most pressing economic concern facing the population.
Mitsotakis, who has served as prime minister since 2019 and previously led the country through its recovery from a major financial crisis, is pursuing a third consecutive term in general elections expected next April. Current polling data suggests his center-right New Democracy party may fall short of securing an independent parliamentary majority in the upcoming vote.
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