Greece’s government is finalizing a wide-ranging economic relief package expected to cost more than 1.7 billion euros, with measures targeting workers, pensioners, businesses, farmers and young families, ahead of Prime Minister Kyriakos Mitsotakis’ keynote speech at the Thessaloniki International Fair on Sept. 5.
The plan includes a roadmap for further increases in the minimum wage, a horizontal pension rise of 2.5% to 2.7% from Jan. 1, 2027, and a new permanent supplementary benefit for all pensioners.
Officials are also discussing changes to the special solidarity levy and an increase in the annual €300 pension bonus, potentially rebranded as a “13th national pension.”
For businesses, especially small and medium-sized enterprises, the government is considering reducing advance tax payments, cutting employer social security contributions further and extending the period for offsetting tax losses beyond the current five years.
A reduction in the corporate tax rate from 22% to 20% is also under discussion.
Self-employed professionals could see reforms to the presumptive-income taxation system, including a “tax compliance bonus” that would gradually reduce or eliminate deemed income for those with strong tax and contribution records.
Minimum deemed income levels may be lowered for certain categories, with expanded exemptions for small businesses in mountainous and island regions.
Additional measures are expected to support first-time home buyers, increase child benefits and the guaranteed minimum income, and accelerate farm subsidy payments.
A new agricultural entrepreneurship fund via the Hellenic Development Bank is also in the works.
Finance Minister Kyriakos Pierrakakis said the goal is to lighten household budgets and reduce tax burdens with permanent measures within the economy’s real capacity.
Final details will be announced at the fair, which runs Sept. 5-13.