After a short break on the island of Tinos, Prime Minister Kyriakos Mitsotakis returned to his office at the Maximos Mansion on Tuesday morning. Without wasting time, he got back to work, awaiting Eurostat’s announcement on Greece’s budget surplus. One hour later, at 1 p.m., the Greek PM unexpectedly addressed the nation in a televised message.
In his address, Mitsotakis announced permanent support measures worth a total of €1 billion. “Thanks to everyone’s efforts, we did much better than expected,” he said, unveiling three key measures:
A monthly rent refund every November for tenants, based on income criteria similar to the “My Home 2” program.
A €250 payment every November for 1.5 million low-income pensioners, uninsured elderly, and persons with disabilities.
An annual increase of €500 million to the Public Investment Program.
These announcements came shortly after Eurostat confirmed a record primary surplus of 4.8% of GDP and a final fiscal surplus of 1.3% for 2024.
The government sees this moment as an opportunity to re-engage the middle class, a social group that has been drifting away from incumbent political party New Democracy, according to recent polling. This demographic, often referred to as the backbone of Greek society, has been especially hard-hit by high living costs and the housing crisis, particularly in urban centers.
Why now?
Government sources explain that the timing of the announcements coincides with the release of the 2024 fiscal results by the Hellenic Statistical Authority and Eurostat. These results provided the financial leeway to implement new support measures.
According to government reasoning, this fiscal space is being transformed into social and developmental capital — without endangering economic and fiscal stability. Under the EU’s new fiscal rules, the 2024 surplus can be used in 2025. That’s why the new permanent measures for tenants, low-income pensioners, the uninsured elderly, and people with disabilities will begin in November, along with the €500 million increase in public investment.
Where did the “super-surplus” come from?
Government officials firmly reject claims that the surplus came from overtaxing citizens. Instead, they credit three key factors:
Combating tax evasion using modern digital tools, including linking POS systems with cash registers.
Job creation and economic growth, with over 500,000 new jobs created under Mitsotakis’s tenure — many with rising wages.
Spending cuts in the public sector through waste reduction — aligning with the EU’s new rules that focus on expenditure levels, not just surpluses.
The Greek PM posted online that “the goal of this government is for collective progress to gradually become individual prosperity.”
The government also challenged the opposition, stating that all fiscal room has now been used. If the opposition wants to propose more spending, they should also specify who will be taxed to fund it.
Attempt to address the housing issue
One of the most pressing problems for the middle class is the housing crisis — an issue that has defied past solutions. Supporting tenants, including parents paying rent for their children studying away from home, is now a top government priority. Hence, the decision to refund one month’s rent annually for primary residences and student housing, targeting an estimated 80% of renting households.
Some of the new measures also support the most vulnerable. According to the Maximos Mansion, approximately 1.5 million low-income pensioners, uninsured elderly, and persons with disabilities will receive a permanent annual supplement of €250, in addition to their existing income. This will also be paid at the end of every November.
As part of the rollout, the Greek PM is scheduled to visit the Ministry of Social Cohesion and Family at 10 a.m. today. Following a meeting with ministry leadership, joint statements will be made on camera.
