Prime Minister Kyriakos Mitsotakis’ announcements at the Thessaloniki International Fair (TIF) on September 6 and 7 are expected to be finalized after August 15. As August draws to a close, meetings are expected to become more frequent to ensure that any decisions made do not undermine the direction of public finances.
According to statements by government spokesman Pavlos Marinakis to Ertnews, the fiscal margin for 2026 amounts to 1.5 billion euros and will aim to address the housing problem, to strengthen disposable income with proposals for targeted tax breaks that will be examined by the prime minister and the economic staff. He made particular reference to the need to cover the needs of the middle class, single-parent families and households with two or more children, as, as he pointed out, “the problem also has a demographic dimension, in addition to the economic one.”
The package with the measures under consideration by the government — which will be finalized at the end of the summer, when a clearer picture of the budget’s performance and tax collection efficiency is expected — are measures including reductions in income tax rates (particularly for incomes over 20,000 euros), relief for property owners through new adjustments to the rental income tax scale, a possible reduction in imputed income criteria, and a cut in social security contributions.
Priority will be given to consistent taxpayers, employees and pensioners, with the government estimating that only through tax breaks can their permanent support be achieved.
Based on the Medium-Term Plan, Greece has a margin for increasing spending by 3.6% next year compared to this year, a percentage that translates into 3.6 billion euros. At the same time, there are approximately 700-750 million euros as a reserve that can be spent due to the better performance in 2024, from tackling tax evasion. Based on the above data, the amount totals 4.4 billion euros.
