Greek Prime Minister Kyriakos Mitsotakis ruled out the possibility of a snap election on Sunday, pledging instead to complete his mandate through 2027 while announcing major tax cuts aimed at tackling the country’s cost-of-living crisis.
Speaking a day after his annual economic policy address, Mitsotakis confirmed that income tax breaks worth €1.6 billion ($1.87 billion) will take effect in 2026. The measures, he said, are designed to help families struggling with high prices and to encourage a higher birth rate.
“I wanted to send a message to families that we hear them,” the prime minister told reporters.
Tax cuts amid political headwinds
The tax relief package is expected to benefit middle-income households, including traditional supporters of his centre-right New Democracy party, which has seen its popularity dip sharply in recent months.
Polls show support sliding to 22–25%, a steep decline from the 41% Mitsotakis secured in the 2023 election and the 39.9% when New Democracy first came to power in 2019. Rising food, housing, and energy costs, alongside corruption investigations involving EU subsidies and recycling fraud, have eroded public confidence.
Political strategy and migration stance
Analysts say the government’s policies, including a tougher line on migration, reflect a shift to the right aimed at shoring up its base. In July, Greece temporarily stopped processing asylum applications from North Africa for three months to curb arrivals. Mitsotakis said no decision has been made on whether to extend the measure.
The prime minister also left open the possibility of seeking a third term beyond 2027, despite his party’s weakened standing.
Infrastructure and EU projects
Mitsotakis reaffirmed his commitment to the long-delayed €1.9 billion EU-financed subsea power cable project linking Europe to Cyprus. The project has faced repeated setbacks and an investigation by European prosecutors, but Mitsotakis insisted it would be completed, urging Cyprus to demonstrate “a clear will for progress.”
