**Greek PM Rules Out Snap Elections After Unveiling Tax Cuts and Wage Hikes**
Greek Prime Minister Kyriakos Mitsotakis has firmly ruled out the possibility of snap elections, affirming that the next general election is scheduled for spring 2027. This announcement comes just a day after he revealed a comprehensive package of tax cuts and wage increases aimed at addressing economic challenges and boosting public support ahead of the upcoming elections.
During a press briefing on Sunday, Mitsotakis emphasized his confidence in his centre-right government’s ability to secure an outright majority in the next election, despite recent declines in public support. His party, New Democracy, was re-elected in 2023 with 40.5% of the vote, but current opinion polls indicate that support has dipped below 30%. This decline is attributed to a prolonged cost-of-living crisis and ongoing allegations of corruption that have affected public sentiment.
Mitsotakis’s announcement on Saturday outlined a significant economic initiative worth €3.5 billion (approximately $4.06 billion), which represents about 1.5% of Greece’s GDP. The plan includes a series of measures designed to alleviate financial pressures on citizens and stimulate economic growth. Key components of the initiative include:
- An annual bonus of €400 for pensioners and €500 for public sector employees.
- A zero tax rate on annual incomes of up to €20,000 for farmers and families with three children.
- A gradual reduction in advance tax payments for self-employed individuals and businesses, decreasing to 50%.
In addition to these measures, Mitsotakis has set ambitious goals for the economy, aiming to reduce unemployment to 6% and public debt to below 110% of GDP by 2030. These targets reflect the government’s commitment to fostering a stable economic environment and improving living standards for Greek citizens.
The backdrop to these announcements is Greece's recovery from a severe financial crisis that began in 2009, which raised concerns about the country’s future within the eurozone. Since then, Greece has emerged as one of the stronger economies in Europe, with an annual growth rate of approximately 2%, surpassing the eurozone average. The government anticipates a primary surplus of about 4% for the current year, which is double the initial expectations and provides the fiscal flexibility needed to implement the new economic measures.
Mitsotakis’s government has positioned itself as a stabilizing force in Greek politics, and the recent economic initiatives are seen as a strategic move to regain public trust and bolster support ahead of the next electoral cycle. By addressing pressing economic issues through direct financial support and tax relief, the Prime Minister aims to mitigate the impact of rising living costs on households and enhance the overall economic outlook for the country.
As the political landscape evolves, the effectiveness of these measures in reversing the decline in public support will be closely monitored. The government’s ability to deliver on its promises and navigate the ongoing challenges will be crucial in determining its success in the upcoming elections.