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Mitsotakis rules out snap election after €3.5bn tax and wage package

In-Cyprus · 2026-09-06

AI SUMMARY

• What happened: Greek Prime Minister Kyriakos Mitsotakis announced there will be no snap elections this year and introduced a €3.5 billion tax and wage package to address the cost-of-living crisis. • Why it matters: The package aims to alleviate financial pressures on citizens and comes amid declining support for Mitsotakis's ruling New Democracy party, which is currently below 30% in opinion polls. • What to watch next: The effectiveness of the new economic measures and their impact on public sentiment will be crucial as Greece approaches the scheduled parliamentary elections in spring 2027.

**Mitsotakis Rules Out Snap Election After Announcing €3.5 Billion Tax and Wage Package**

Greek Prime Minister Kyriakos Mitsotakis has confirmed that there will be no snap elections this year, stating that the next parliamentary vote is scheduled for spring 2027. This announcement follows the unveiling of a significant €3.5 billion tax and wage package aimed at addressing the ongoing cost-of-living crisis in Greece.

During a press briefing on Sunday, Mitsotakis dismissed speculation regarding an early election, emphasizing his belief that his centre-right government can still secure an outright majority and achieve a third consecutive four-year term. Current opinion polls indicate that while the ruling New Democracy party remains ahead, support has dipped below 30%, a notable decrease from the 40.5% it garnered in the 2023 elections. This decline in popularity is attributed to the prolonged economic challenges and allegations of corruption that have surfaced in recent months.

The €3.5 billion package, which represents approximately 1.5% of Greece's gross domestic product (GDP), includes a variety of measures designed to alleviate financial pressures on citizens. Key components of the package include an annual bonus of €400 for pensioners and €500 for public sector employees. Additionally, families with three children and farmers will benefit from a tax exemption on annual earnings of up to €20,000. The government also plans to reduce advance tax payments for self-employed individuals and businesses to 50% over time.

Mitsotakis outlined ambitious economic goals, including a target to reduce unemployment to 6% and public debt to below 110% of GDP by 2030. These measures come as Greece has experienced a notable economic recovery since the financial crisis that began in 2009, which had raised concerns about the country's potential exit from the eurozone. Currently, Greece's economy is growing at an annual rate of 2%, surpassing the eurozone average. The government anticipates a primary budget surplus of around 4% for the current year, double the initial forecasts, providing the necessary financial flexibility to implement the new measures.

As the government navigates the complexities of economic recovery and public sentiment, Mitsotakis's administration remains focused on maintaining stability and fostering growth. The upcoming elections in 2027 will be a critical test for the ruling party as it seeks to address the challenges posed by the ongoing cost-of-living crisis while also managing public expectations in light of recent controversies.

In summary, Prime Minister Mitsotakis has firmly ruled out the possibility of early elections, reaffirming the scheduled timeline for 2027 while introducing a substantial economic package aimed at supporting citizens during a challenging period. The effectiveness of these measures and their impact on public opinion will be closely monitored as Greece moves forward in its recovery journey.

Source: In-Cyprus
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