Watch live: Mitsotakis’ speech at the 88th Thessaloniki International Fair – 2 million pensions and the minimum wage to increase, 3-year tax exemption for rented vacant homes

At this moment, Prime Minister Kyriakos Mitsotakis is unveiling the new economic roadmap until 2025 during his speech at the 88th Thessaloniki International Fair. According to reports, Mitsotakis will present a package of measures and interventions aimed at supporting social and professional groups impacted by the crisis.

The package is expected to include a new “social voucher” for pensioners and vulnerable groups, performance incentives and allowance increases for public sector employees, tax breaks for property owners, and regulations for Airbnb to open up thousands of homes for rent. Additionally, there will be new housing acquisition programs, relief for farmers, and other interventions.

Watch live:

“I don’t carry a bag of reckless promises,” said Prime Minister Kyriakos Mitsotakis, but rather proposals for useful and effective choices.

Starting January 1, 2025, 2 million pensions will increase, and from April 2025, the minimum wage will also rise, he announced. Additionally, on-call pay in the National Health System (NHS) will be taxed at a flat rate of 22%, resulting in a €130 increase. For uniformed personnel, he said night shift compensation will be increased by 20%.

More specifically, Mr. Mitsotakis announced:

SOCIAL DIVIDEND FROM REFINERIES

• €243 million from refinery taxation to nearly 2 million citizens at the end of the year.
• 670,000 pensioners with an income of €200.
• 767,000 receiving child benefits will get an additional payment.
• OPEKA and EFKA benefit recipients will receive €200.
• The Guaranteed Minimum Income will increase by 50%.

HEALTHCARE

On-call pay in the NHS will be taxed at a flat rate of 22%, increasing wages by up to €130.

UNIFORMED PERSONNEL

Night shift compensation in the Armed Forces, Police, and Fire Department will increase by 20%. “This is a small recognition of their contribution. I have exhausted every fiscal margin. Those who wear the national insignia should feel that their country is always beside them,” the Prime Minister stated.

Also:

• A 1% reduction in social security contributions, instead of the planned 0.5%. By 2027, Greece will have reduced non-salary costs by 6 points, below the European average.
• Full abolition of the business tax for every self-employed person or individual business. Improvements to the minimum taxable amount are coming, and the imputed income threshold for areas with 1,500 residents instead of 500 will be halved. This will significantly support villages.
• The telephone tax will be fully abolished. A 5% tax will apply to connections above 100 Mbps.

Simultaneously:

1. €20 million will be added to benefits for new parents.
2. Incentives will be provided for businesses to support employees who have children.
3. The rights of families with three children will align with those of families with many children.

HOUSING

The Prime Minister also said that the second “My Home” program will start immediately, funded by the Recovery Fund.

More detailed measures:

FAMILY SUPPORT MEASURES

• Increasing vouchers for daycare centers by €20 million, creating 20,000 new daycare spots.
• Employers supporting workers with up to €5,000 annually will be tax-exempt on that amount.
• The rights of families with three children will align with those of larger families in terms of public sector hiring, transfers, and social tourism programs.
• A 15% tax on health insurance for children up to 18 will be abolished, and free fertility checks for women aged 30-35 will be offered. Coverage for assisted reproduction through EOPYY will be simplified.

BENEFITS

A careful reform of benefit policies, including unemployment benefits. “If someone can find work, they should not be dependent on unemployment benefits,” Mitsotakis said. Child benefits, housing benefits, and the Guaranteed Minimum Income will become fairer, but the amount of support will also be increased where there are real needs and inequalities.

AGRICULTURAL SUPPORT

• The refund of the Fuel Excise Duty on agricultural diesel will be made permanent. Starting in 2025, these amounts will be returned in a fair and proportional way.
• A flexible scheme for managing “bad” loans of farmers and cooperatives will be established.

HOUSING

• The “My Home” program will begin immediately, with funding from the Recovery Fund. More than 15,000 young couples under 50 will benefit. €400 million has been secured from the Recovery Fund to provide loans of up to €20,000 with zero interest for the energy upgrade of 20,000 homes.
• A 3-year tax exemption will be granted for anyone renting a currently vacant apartment, and the same applies if a short-term rental is converted into a long-term lease.

SCHOOLS

€250 million will be allocated to renovate dozens of schools, in a program named after Marietta Giannakou to honor her contribution.

Additionally:

• The “Golden Visa” threshold will be €250,000 for investments in startups instead of real estate.

AFTERNOON SURGERIES

Soon, €51 million from the Recovery Fund will be allocated for free afternoon surgeries to help 37,000 citizens on waiting lists.

TOURISM

A cruise tax per passenger will be introduced, with higher rates for Santorini and Mykonos.

The Prime Minister also addressed the recent wildfires, saying that no one has a monopoly on social sensitivity: “I am the first to be frustrated when a state that extinguished 4,000 fires is hurt by one that got out of control.” He outlined Greece’s defense for 2027, mentioning the Rafale jets and Belharra frigates.

Mitsotakis concluded by emphasizing that New Democracy is at the forefront of reforms, making it the most resilient government in Greece since the post-dictatorship era. He noted that the government has over 1,000 days of clear political time to fulfill all its commitments, adding that New Democracy kept Greece in the European family, achieved significant victories, and stood on the right side of history.

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