“I will not make promises, nor give money that does not exist,” Prime Minister Kyriakos Mitsotakis said at the beginning of his speech at the 89th TIF.
Greece has gone from bankruptcy to growth, he stressed, noting that “the country of the old memoranda now presents some of the highest GDP growth figures.”
He also focused on achieving fiscal balance, comparing the borrowing rates of Greece and France. “We have managed to reduce taxes and increase social spending,” he pointed out.
Moreover, he noted that the dividend of growth needs to return to citizens and added that strong growth and the crackdown on tax evasion bring in revenue.
“I make no concessions on the country’s security”
“I do not make any concessions to the security of the country. Just as I do not make any concessions to our position at the core of Europe.”
Mitsotakis highlighted his decision to accelerate so that “in 2027 a new four-year period will dawn for the country and the party.”
The Prime Minister reiterated that the potential of the economy through the changes that have occurred allows for the return of rent to tenants every November, as well as increases in the salaries of armed forces personnel and diplomats.
“Every support measure should be financed without threatening fiscal balance,” he stressed, noting that the entire framework of the government’s policy is based on fiscal stability.
He noted that the best way to return the dividend to citizens is not through allowances, but through tax cuts. “We believe in economic freedom,” he pointed out.
The boldest tax reform
“But now the time has come to support those who have not benefited as much as others and we will do so with the boldest reform of the tax system,” he stressed, referring to a reform worth 1.6 billion euros that will relieve 4 million citizens.
“And next year we are reducing the basic tax rates by 2 points. These will fall further depending on the number of children in each household,” the prime minister said.
Zero tax for workers under 25 with income up to 20,000 euros
Mitsotakis said that no worker under 25 with income up to 20,000 euros will pay tax.
He also said that young people between 25 and 30 years old will be taxed at a reduced rate of 9%.
Interventions in the real estate market
A lower rate of 25% is being introduced for rental income from 12,000 to 24,000 euros, the Prime Minister announced. He spoke of a regulation that concerns approximately 150,000 properties.
Mitsotakis also announced that:
- From 2026 ENFIA will be reduced by half and from 2027 it will be zeroed for anyone who has a primary residence in any Greek village with a population of less than 1,500 inhabitants.
- 30% VAT reduction on islands with less than 20,000 inhabitants.
- Doubling of the deduction for investment expenses made in the Greek defense and vehicle manufacturing sectors, in order to promote investments in defense.
- Simplification of licensing with a focus on investments in industry, alongside actions to enhance extroversion.
“We will not hesitate to intervene” on electricity prices
Regarding electricity prices, Mitsotakis stressed that lower wholesale prices must be passed on to consumers.
Otherwise, as he stressed, the government will not hesitate to intervene.
