Greece's conservative government has pledged significant tax reductions and pay increases ahead of next year's general election, a move announced as thousands protested the nation's high cost of living.
Prime Minister Kyriakos Mitsotakis stated that as the country stabilizes, "there will be relief from heavy taxes, higher incomes and bold reforms." He made these remarks during his annual economic address in Thessaloniki, where police estimated more than 25,000 people participated in union-led demonstrations. Farmers drove tractors into the city center as part of the rallies.
In the past year, Greece achieved a budget surplus and 2.1% economic growth, while also working to decrease its substantial public debt. However, workers in Greece experienced the lowest purchasing power within the European Union.
"Wages are low and prices are soaring, so affordability is the most serious problem," said Yiannis Panagopoulos, head of Greece's largest labor union, the GSEE.
The government's support package, valued at over 2 billion euros ($2.3 billion) for the upcoming year, includes tax breaks for self-employed professionals, farmers, and rural residents. It also mandates salary and benefit increases for retirees and public sector employees.
Mitsotakis, who has led Greece since 2019 as the nation recovered from a major financial crisis, is seeking a third term in office. An election is anticipated in April, but current polling suggests his center-right New Democracy party may not secure a parliamentary majority.
Earlier on Saturday, two air force pilots were killed when a fighter jet crashed during an air show near Athens. This incident preceded the prime minister's address and the subsequent protests.