Mitsotakis unveils €2.2bn support package for 2027 at Thessaloniki Fair

Greek Prime Minister Kyriakos Mitsotakis presented a support package worth €2.2 billion for 2027 at the opening of the Thessaloniki International Fair, outlining immediate measures — pension top-ups, tax relief for small farmers, a newborn savings fund, a Christmas bonus for civil servants — and longer-term goals toward 2030.

Key measures and numbers

Mitsotakis said the plan includes targeted tax relief for farmers, with a full abolition of income tax for those earning up to €20,000 annually and a 50% cut in income tax for those with annual receipts of €30,000. He announced an increase in the annual top-up for all pensioners over 65 from €300 to €400 starting in November this year; the measure will cover 2.3 million pensioners. From 2027, 720,000 state employees will receive a €500 Christmas bonus.

One of the measures Mitsotakis described as "an innovative measure that will encourage a culture of saving" is a newborn savings fund in which the state will match parental contributions. He said that when parents deposit €100 the state will add the same amount, and he claimed that "one child at 18 years, from the locked capital will have over €60,000 as a basis," a step he framed as meant "to invest in the new generation."

To address demographic trends, Mitsotakis announced an abolition of income tax up to €20,000 for families with three children and an increase in the special allowance for large families. To tackle housing and foreign buyer dynamics, he said the transfer tax on property purchases by third-country nationals will rise from 3% to 15%, mentioning China, Turkey and Israel as examples.

For employees in the private sector he set a trajectory for the minimum wage to reach €1,000 in January 2028. He also outlined a long-term goal to reduce electricity prices by 30% over the next three years.

"The programme I presented costs €2.2 billion to 2027 and €3.5 billion to 2030. We always move within the existing fiscal space," Mitsotakis said, adding that Greece currently borrows more cheaply on markets compared with the United States, the United Kingdom, Denmark and Italy. He spoke for 85 minutes and covered migration, energy and defence; he is expected to give fuller details at a press conference on the sidelines of the fair tomorrow.

Earlier in his address Mitsotakis opened by expressing sorrow for the fatal crash of an Hellenic Air Force F-4E Phantom that killed two pilots during the "Athens Flying Week," saying that "today's ceremonial opening is in the shadow of the tragic incident." Ahead of the fair's inauguration, unions staged a series of protests against government policy in Thessaloniki.

Photo: press material from the event