2027’s draft budget goes to Parliament on Monday, Oct. 5, promising wage and pension increases, tax cuts and housing support, even as an energy crisis threatens household purchasing power.
The plan includes measures totaling 5.035 billion euros. Of that, 2.208 billion euros goes to new initiatives announced at the Thessaloniki International Fair in September, and 2.827 billion euros reflects measures already enacted.
Growth steady, inflation higher
Despite global turmoil, the government still expects growth of around 2% this year and next. Inflation is now projected at 3.6% to 3.8% for 2026, up from an earlier estimate of 3.2%, before easing to 2.8% in 2027. Prices will keep rising, only more slowly.
The forecasts hinge on energy markets and could be revised before the final budget is submitted in November. The primary surplus is expected to stay above 3% of GDP, while public debt is projected to fall below 130% of GDP in 2027, from under 137% this year.
Wages and pensions
A minimum wage increase in April 2027 will come with a half-point cut in employee social security contributions, boosting take-home pay at a cost of 163 million euros. Public sector salaries will rise in step with the minimum wage, costing 382 million euros, and a 500-euro gross Christmas bonus will be added starting in December, costing 433 million euros.
Pensioners will receive their annual increase based on growth and inflation without it being offset by the so-called “personal difference,” at a cost of 750 million euros. The yearly 400-euro net support payment will continue, increased and expanded from November 2026 to reach about 2.2 million recipients.
Tax breaks
Families with three children will pay no income tax on earnings up to 20,000 euros, benefiting about 87,000 taxpayers. Salaried employees will see the gain from January 2027, the self-employed in their 2028 tax returns. Full-time farmers will get the same zero rate, benefiting about 47,000 people.
The self-employed will also see relief on presumptive income rules, while farmers will get the excise tax on agricultural diesel refunded at the pump. The annual business levy will be scrapped for companies in the regions and in Thessaloniki.
Housing and families
The ENFIA property tax will be abolished in villages of up to 2,000 residents, or 2,200 in Western Macedonia. Rent rebate income limits will be raised, with a double rebate for teachers, doctors and nurses serving in the regions. Landlords will benefit from a new intermediate 25% tax rate on rental income. The plan also includes the 2-billion-euro “My Home III” program and a 500-million-euro EU-funded scheme to renovate older homes.
For families, the state will match parents’ contributions to new children’s investment accounts, up to 1,200 euros a year, while nursery vouchers will rise by 10%.
Growth will be backed by an extra 400 million euros in national investment funds, a 7-billion-euro co-financed Public Investment Program and a new 1.5-billion-euro financing tool for small and medium-sized businesses.
