Greek Government Signals Tax Cuts as Elections Loom

Deputy Prime Minister Kostis Hatzidakis unveiled a year-end report and a 30-point reform plan, signaling tax relief, infrastructure upgrades and digital reforms

Greece’s deputy prime minister, Kostis Hatzidakis, on Tuesday presented a sweeping review of the government’s work in 2025 and a forward-looking policy blueprint for 2026, signaling new tax cuts, major infrastructure projects and a broad package of institutional reforms.

Speaking at a news conference alongside Minister of State Akis Skertsos, Hatzidakis said the government’s annual accounting and the unveiling of next year’s priorities were meant to underline what he described as a culture of “measurable progress” and political accountability.

“We want to do what we say, and say what we mean,” he said.

Tax Relief and Pre-Election Signals

Striking a distinctly pre-election note, Hatzidakis said this year’s Thessaloniki International Fair -Greece’s traditional stage for major policy announcements- would include new tax relief measures for individuals and businesses. The measures are to be unveiled by Prime Minister Kyriakos Mitsotakis and would take effect in 2027.

Asked whether the government might introduce tax measures earlier in the spring, as it did last year, Hatzidakis said the focus remained on the September fair. “Our planning is centered on Thessaloniki,” he said. “I’m not aware of anything scheduled for the spring.”

He also stressed that Mitsotakis and the ruling New Democracy party had made fewer campaign promises than their rivals in the 2019 and 2023 elections, arguing that the administration had focused instead on honoring its commitments.

Hatzidakis said 66% of the milestones set for 2025 under the government’s Unified Strategic Plan for 2025–2026 had been completed. That amounts to 3,701 of 5,637 targets achieved within the year. The data, he said, was meant to reinforce the government’s emphasis on transparency and results-driven governance.

A 30-Point Reform Agenda for 2026

The 2026 plan centers on 30 reforms and projects spanning the economy, labor market, health care, justice, defense, infrastructure and social policy.

Among the headline commitments:

  • Tax policy: New tax cuts for citizens and businesses to be announced at the Thessaloniki International Fair.
  • Wages: A new increase in the minimum wage, with the government reiterating its target of 950 euros by 2027.
  • Bureaucracy: The review and simplification of 400 administrative procedures on the MITOS digital platform, which catalogs public-sector processes.
  • EU funding: Completion of Greece’s National Recovery and Resilience Plan and the launch of the Greek Social Climate Plan, with projects totaling 5.3 billion euros, pending approval by the European Union.

Labor and Health Reforms

As part of its labor reforms, the government plans to expand the digital work card system across the entire private sector by the end of the year and roll it out in the public sector. The system, which is designed to curb undeclared and underreported work,  is already operating in state-owned enterprises.

In health care, the goal is to complete upgrades to 156 health centers and 80 hospitals, a project financed through the EU recovery fund.

Education, Housing and Social Policy

The government also pledged to expand the “Marietta Giannakou” school renovation program to include a further 214 school units.

On housing, officials announced the launch of an affordable housing program on four inactive military sites and in an initial group of public properties, using tools such as social housing and public-private development schemes.

Defense and Justice

On defense, Greece is set to receive two new FDI frigates, in addition to Kimon the country’s first Belharra-class warship which was already delivered a few days ago.

On judicial reform, the government plans to roll out a digital case file system covering all land registry disputes and 60% of civil cases.

Infrastructure and Transport

Major infrastructure projects slated for completion include the full delivery of the E65 highway in central Greece, the extension of the Thessaloniki Metro to the coastal district of Kalamaria, and upgrades along the Athens–Thessaloniki rail corridor. The plan also calls for broader improvements to rail transport and civil aviation safety systems, as well as the long-delayed completion of Greece’s national cadaster.

Agriculture and Consumer Protection

The government plans to launch a new permanent digital system for farm subsidies and begin strategic planning for the next phase of the European Union’s Common Agricultural Policy.

On the consumer side, officials said a new National Authority for Consumer Protection will begin operations, alongside a digital platform that will allow price comparisons of basic goods at both the national and international levels.

A Broader State Overhaul

Other initiatives outlined for 2026 include:

  • Special spatial planning frameworks for tourism, renewable energy and industry.
  • Preparations for Greece’s upcoming presidency of the Council of the European Union.
  • An electronic border surveillance system.
  • A government-wide digital platform to monitor budget execution (govERP).
  • The operational launch of the “Pharos” AI Factory.
  • Accessible infrastructure on 238 beaches.
  • Final design studies for the National Archaeological Museum.
  • Measures to implement the EU’s new Migration Pact, with an emphasis on returns.
  • Upgrades to maritime traffic monitoring systems (VTMIS).
  • A housing program for the armed forces, with 815 residences.
  • Deliveries of projects under the AIGIS civil protection program for 2025–2027.

Source: ot.gr

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