Greek PM Unveils 1.6-Bn-Euro Economic Plan For 2026

(MENAFN- IANS) Athens, Sep 7 (IANS) Greece Prime Minister Kyriakos Mitsotakis has announced a 1.6-billion-euro ($1.88 billion) economic package for 2026, featuring broad tax cuts and targeted support for families and young workers.

Speaking at the 89th Thessaloniki International Fair, Mitsotakis said on Saturday that the measures aim to ease demographic pressures and rising living costs while keeping public finances stable.

Key steps include a permanent two-percentage-point cut in income tax for all taxpayers, zero tax for workers under 25 earning up to 20,000 euros annually, and significant relief for households with children, Xinhua news agency reported.

Families with four or more children will pay no income tax.

Middle-income earners will also benefit from reduced tax rates, while pensioners and uniformed personnel will see pay increases.

The Greek Prime Minister said the measures are possible thanks to growth, reforms against tax evasion and fiscal discipline.

"Fiscal stability is the foundation of our policy," Mitsotakis said, stressing that growth dividends should return to citizens through lower taxes rather than handouts.

He noted that his administration has already eliminated 72 levies and pledged the boldest income tax reform since Greece's transition to democracy in 1974.

Mitsotakis also pledged to halve property tax (ENFIA) in villages under 1,500 residents by 2026 and abolish it entirely in 2027.

He outlined four long-term reforms requiring cross-party consensus: a national high school diploma for university entry, a modernised public health system, streamlined zoning and a complete land registry, and a national energy roadmap securing affordable electricity and autonomy.

"2026 and 2027 are milestones, but our destination is 2030," the Prime Minister said, framing the tax cuts and reforms as part of a broader strategy to strengthen growth, support families, and modernise the state.

But Greece remains Europe's most indebted nation and disposable incomes still trail the EU average due to rising energy, food and housing prices that hurt purchasing power, despite a cumulative 35 per cent minimum wage increase.

The tax reform includes lower taxation by two percentage points for all brackets and a zero tax rate for low-income families with four children amid tumbling birth rates and rising housing costs.

Meanwhile, thousands protested in Thessaloniki, Athens and other cities, criticising the package as inadequate and voicing anger over corruption scandals and the government's handling of last year's fatal train crash. (1 euro = $1.17)

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