Prime Minister Kyriakos Mitsotakis has directed his cabinet to focus on easing the financial burdens of Greek households, emphasizing the need for tangible economic relief despite Greece’s strong macroeconomic performance.
During a meeting on Monday, Mr. Mitsotakis urged ministers to prioritize measures that directly impact citizens’ purchasing power as inflation and high living costs continue to strain many families.
The 2025 budget includes tax reductions for households and businesses, as well as wage increases, aiming to restore balance after years of economic strain.
While the government lauded its achievements in reducing unemployment and increasing salaries, Mr. Mitsotakis acknowledged the public’s pressing concerns. “If you’re struggling to make ends meet, GDP growth is irrelevant,” a senior government source stated, signaling plans for additional tax cuts targeting the middle class over the next two years.
The government’s economic strategy is being framed as a cornerstone of its political platform for the next general elections in 2027.
The success of policies aimed at delivering higher wages and fewer taxes will be critical to maintaining public confidence, government officials noted.
However, Mr. Mitsotakis stressed the importance of balancing social relief measures with fiscal discipline.
“Our focus remains on helping citizens without jeopardizing Greece’s financial stability,” he told ministers.
To finance these measures, the government aims to combat tax evasion and attract foreign investment. Mr. Mitsotakis highlighted the importance of policies that strengthen Greece’s economic foundation while addressing immediate social needs.
The prime minister’s remarks also targeted opposition proposals, including a recent PASOK plan to cut value-added tax (VAT).
Criticizing the plan as populist and poorly conceived, Mr. Mitsotakis labeled PASOK as a “green Syriza,” urging policymakers to focus on credible, well-researched solutions.
“What these times demand are truth, seriousness, and substantial proposals—not rhetorical fireworks,” he said.
With the parliamentary debate on the 2025 budget approaching, the government is positioning its fiscal agenda as a calculated effort to improve economic resilience while addressing citizens’ concerns about the cost of living.
By Yiannis Kandellis