Greece's PM promises tax relief and wage hikes as thousands protest cost of living crisis
Prime Minister Kyriakos Mitsotakis announced over €2 billion in support measures ahead of elections while more than 25,000 protesters gathered in Thessaloniki demanding relief from high prices and low wages.
What happened
Greek Prime Minister Kyriakos Mitsotakis delivered a state-of-the-nation speech in Thessaloniki on Saturday announcing sweeping tax breaks and pay increases totaling more than 2 billion euros over the next year, including tax relief for self-employed professionals, farmers, and villagers, plus salary and benefit increases for retirees and public sector workers. The announcement came as more than 25,000 protesters, organized by labor unions and protest groups, demonstrated in the same city over the cost of living crisis, with farmers driving tractors into the downtown area. Police deployed more than 3,000 officers and closed streets and subway stations near the venue. Mitsotakis, who has served as prime minister since 2019, is seeking a third term in an election expected in April.
Context
Greece achieved a budget surplus and 2.1% economic growth last year while reducing its public debt, but workers face the European Union's lowest purchasing power, according to the head of Greece's largest labor union. The disconnect between macro-economic gains and household affordability—wages remaining low while prices soar—represents the central political challenge facing Mitsotakis. Current polling suggests his center-right New Democracy party would not achieve a governing majority in parliament, making the timing and scale of these relief measures significant for his electoral prospects.