Greece to Cut Taxes, Raise Minimum Wage

Greek Prime Minister Kyriakos Mitsotakis announced tax breaks and income increases for employees, retirees and self-employed individuals. The measures, worth €2.2bn ($2.56bn), will take effect in 2027, when Greece is set to hold parliamentary elections.

The package includes an annual allowance of €400 ($465) for retirees and €500 ($581) for public sector employees. Low-income farmers and low-income families with three children will be exempt from income tax. The government will also reduce tax prepayments for self-employed individuals and small businesses.

Mitsotakis also announced an increase in the minimum monthly wage to €950 ($1,104), rising to €1,000 ($1,162) by 2028. Pension contributions are set to be reduced by 0.5%.

The Greek economy is growing at a year-over-year rate of about 2%, faster than the eurozone average. The government expects a primary budget surplus of about 4% of GDP this year, nearly double the original estimate.

Mitsotakis's center-right government continues to lead in the polls, but its support has fallen below 30% due to the high cost of living and allegations of corruption.

(Reuters, lud)