Greek PM Promises Economic Relief Amid Rising Living Costs
ATHENS (Reuters) – Greek Prime Minister Kyriakos Mitsotakis announced plans to increase pensions, reduce taxes and social security contributions, and raise the minimum wage in 2025, aiming to alleviate the strain of high living costs on citizens.
Despite still recovering from a debt crisis that severely shrank its economy between 2009 and 2018, Greece has seen robust economic growth, projected at 2.5% this year. In his annual economic policy speech at the Thessaloniki trade fair, Mitsotakis emphasized distributing this growth equitably to reflect positively on pensions and wages while maintaining fiscal discipline according to EU regulations.
Mitsotakis, leader of the centre-right New Democracy party, which has governed since 2019 and secured a second term last year, outlined plans to raise pensions by up to 2.5% in 2025 and increase the minimum wage from 830 euros ($920) to 950 euros by 2027. He also promised to cut social security contributions by one point, gradually eliminate a special levy on the self-employed, and distribute 243 million euros from a windfall tax on energy companies to the vulnerable.
The PM highlighted the lingering cost of living crisis post-COVID-19, exacerbated by wildfires and floods, as contributing factors to eroding support for New Democracy based on recent opinion polls.
Additional commitments include spending 1.6 billion euros on defense in 2025, extending housing plans, supporting young parents with benefits and tax exemptions to combat declining birth rates, enhancing civil protections, aiding farmers affected by climate change, and reducing property tax for home owners insuring against natural disasters. Government sources estimate 3 billion euros will be spent in 2025, approximately 1.5% of GDP.
Mitsotakis is scheduled to elaborate further in a press conference on Sunday.
(Reporting by Renee Maltezou and Lefteris Papadimas; Editing by David Holmes)
Original Story https://www.livemint.com/news/greek-pm-pledges-pension-wage-hikes-by-2027-within-budget-limits-11725740375157.html
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