Tax Cuts for Middle Class, Demographic Policies on Mitsotakis’ Thessaloniki Agenda

At this year's Thessaloniki International Fair, Prime Minister Kyriakos Mitsotakis is expected to unveil tax relief measures and policies addressing Greece’s demographic challenge.

The Greek government is finalizing the measures Prime Minister Kyriakos Mitsotakis will announce at the Thessaloniki International Fair (DETH) this week, with the focus on tax cuts and demographic policy.

According to government sources, the premier’s announcements will target direct tax reductions, aimed primarily at the middle class and families. While final decisions have not yet been made, officials stress that any cuts will be “felt directly in the pockets of Greeks.” The government is seeking to balance these measures with the fiscal space provided by budget surpluses and the constraints of European fiscal rules.

Mitsotakis will travel to Thessaloniki on Thursday, where he is scheduled to meet with local business and industry representatives as well as municipal officials before his keynote address at DETH.

Demographic challenge a central priority

Beyond tax policy, the government is highlighting Greece’s demographic decline as a long-term national problem. Measures to support families, particularly those with multiple children, are expected to feature prominently in Mitsotakis’ announcements.

Officials point to past initiatives, including the child birth allowance introduced in 2019, as part of ongoing efforts to address population decline. This year, additional support is anticipated for large families and those with the greatest financial needs.

Background

The Thessaloniki International Fair (DETH) is Greece’s largest annual trade and policy event, traditionally serving as a platform for the prime minister to outline the government’s economic agenda for the coming year. Taxation and demographic policy have been recurring themes in Mitsotakis’ addresses, reflecting both immediate fiscal policy priorities and longer-term social concerns.

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