Greek Prime Minister Kyriakos Mitsotakis is preparing a broad economic support package as his government moves toward the next national election. The measures are expected to focus on tax relief, household support, pensions, wages, businesses, and the middle class, as the government seeks to use stronger public finances to ease pressure on voters.
The package is expected to be presented at the Thessaloniki International Fair on September 5. Government officials have indicated that the measures will form part of a wider four year economic and social plan covering the period ahead of the next election.
Greece Prepares More Than €2 Billion in Measures
Reports indicate that Mitsotakis is preparing an economic package worth more than €2 billion. The measures are expected to address the cost of living while offering additional support to households, pensioners, workers, small businesses, and families with children.
The government has emphasized that the additional spending will be supported by improved fiscal performance. Deputy Prime Minister Kostis Hatzidakis has described the available fiscal room as a result of economic growth and efforts to reduce tax evasion.
Some measures are expected to begin before the end of 2026, while others could take effect from January 2027. The government is also preparing policies that could remain in place for several years rather than providing only temporary relief.
Tax Relief Could Become a Major Election Issue
Tax cuts are expected to be one of the central elements of the government’s economic program.
The government has been seeking ways to reduce the tax burden while maintaining fiscal discipline. Greece has made significant progress in improving its public finances since the debt crisis, giving policymakers more room to consider targeted support.
The planned measures could particularly benefit middle income households and small and medium sized businesses. Lower taxes could increase disposable income for families while giving businesses additional resources for investment and hiring.
However, the government must balance tax relief with its commitments under European fiscal rules. Maintaining credibility with financial markets remains important because Greece continues to carry a large public debt burden.
Pensioners Could Receive Additional Support
Pensioners are another important group expected to benefit from the new package.
Government officials have discussed a permanent increase in pension payments, along with changes to existing support measures. Reports have also pointed to a potential increase in an annual pension payment that could become a more permanent form of assistance.
The issue is politically important because pensioners represent a large voting group in Greece. Rising living costs have also increased pressure on governments across Europe to protect household purchasing power.
A permanent benefit, however, creates a recurring cost for the state. That means the government must demonstrate that additional spending can be supported by stable revenues and economic growth.
Minimum Wage and Families Are Also in Focus
The government is expected to outline a roadmap for future minimum wage increases as part of the broader economic plan.
Families with children are also expected to receive additional support. The measures could help address household costs while supporting the government’s longer term demographic objectives.
Greece has faced significant demographic challenges, including a low birth rate and an aging population. Policymakers have increasingly focused on helping younger households manage housing, childcare, and living costs.
Additional income support could therefore serve both economic and political objectives.
Stronger Fiscal Position Gives Greece More Room
The government’s ability to announce new measures is linked to Greece’s improved fiscal position.
Mitsotakis has argued that the country now has greater fiscal credibility and room to support households during economic shocks. In July, he said Greece expected to spend about €800 million during 2026 on additional measures related to the energy crisis caused by conflict in the Middle East.
Greece is also accelerating debt repayment. The government has been working to increase early debt repayments to about €13 billion in 2026, compared with an earlier target of €8.79 billion.
That combination of fiscal support and debt reduction is important for the government’s economic credibility.
Election Timing Remains a Major Question
The economic announcements are taking place as speculation grows about when Greece will hold its next election.
The government’s current term runs until 2027, but political observers have been discussing the possibility of an election in late 2026 or early 2027.
Mitsotakis has previously said that the election will take place at the end of his term and has rejected repeated speculation about an early vote.
Still, the timing of this year’s economic announcements has attracted attention because the Thessaloniki International Fair is traditionally an important platform for the government to present its economic priorities.
This year’s speech is expected to be especially significant because it will outline policies that could shape the political debate before the election.
Greece Wants to Avoid Past Fiscal Mistakes
The government is also attempting to distinguish its economic approach from the spending policies that contributed to Greece’s earlier financial problems.
Mitsotakis has repeatedly stressed that new promises must have reliable funding. In July, he warned against making commitments that cannot be supported by available public finances.
That message reflects the importance of fiscal credibility for Greece.
The country has spent years rebuilding its financial position after the sovereign debt crisis. Large permanent spending increases without stable funding could therefore create concerns among investors and European policymakers.
The challenge for the government is to provide meaningful support while keeping public finances under control.
Businesses Could Receive Targeted Relief
Small and medium sized businesses are another major target of the planned package.
Higher labor costs, energy prices, taxes, and financing expenses have placed pressure on businesses across Europe. Targeted tax and social contribution relief could help Greek companies manage those costs.
The government has also linked its economic strategy to investment and growth. Greece’s national policy program for 2026 includes measures designed to strengthen income, attract new investment, support businesses, and accelerate public investment.
Additional support for businesses could therefore be presented as part of a broader growth strategy rather than simply an election measure.
Investors Will Watch the Fiscal Impact
Financial markets are likely to focus on how the government finances the new measures.
Additional spending can support household consumption and economic growth in the short term. However, investors will want to know whether the measures are permanent, temporary, or linked to stronger tax revenues.
The government’s fiscal position will remain important for Greece’s borrowing costs and credit outlook.
A carefully funded package could strengthen confidence by showing that Greece can provide support without abandoning fiscal discipline. A package that creates large unfunded commitments could produce the opposite effect.
Greece Enters an Important Political and Economic Period
Mitsotakis is preparing to present an economic plan that combines household support, tax relief, pension measures, wage policies, business assistance, and longer term reforms.
The scale of the package shows that economic policy will play an important role in Greece’s next election.
At the same time, the government faces a difficult balancing act. Voters want relief from high living costs, while investors and European institutions expect Greece to maintain control over its finances.
The Thessaloniki International Fair will provide the clearest picture yet of the government’s economic priorities for the years ahead. Whether the measures strengthen household confidence, support growth, and maintain fiscal credibility could influence both Greece’s economy and its political landscape as the country approaches its next national election.
