Greek Prime Minister Kyriakos Mitsotakis announced a package of tax breaks, wage increases, and income support measures on Saturday during his keynote address at the 90th Thessaloniki International Fair. The steps target self-employed professionals, farmers, families with multiple children, pensioners, and public sector workers as the center-right government seeks to address ongoing cost-of-living concerns ahead of next year's elections.

The measures include reducing the advance income tax rate for self-employed professionals from 55 percent to 50 percent starting in the 2027 tax year. For legal entities, the advance tax will drop by five percentage points annually from 2028 until it reaches 50 percent. The business levy will be eliminated in regional Greece and Thessaloniki in 2027 and cut by half in Attica. Professional farmers and families with three children will pay no income tax on earnings up to €20,000 annually from January 2027. Refunds of the special consumption tax on agricultural diesel will begin at the pump from November 1, 2026.

Additional support includes an annual €400 bonus for pensioners and €500 for public employees. The package is projected to cost approximately €2 billion to €3.5 billion over several years, or about 1 to 1.5 percent of GDP. Mitsotakis highlighted Greece's economic recovery, including recent budget surpluses and growth, as enabling the relief without compromising fiscal stability.

The announcements came as more than 25,000 people joined union-led protests in Thessaloniki. Farmers drove tractors into the city center, and labor leaders criticized low wages and rising prices. Union head Yiannis Panagopoulos stated that affordability remains the primary challenge for workers.

Greece's government, re-elected in 2023, has faced declining poll numbers amid persistent inflation pressures and prior farmer demonstrations over energy costs and product prices. The new steps build on earlier minimum wage hikes and other relief efforts while aiming to maintain debt reduction targets below 110 percent of GDP by 2030.