Greek Prime Minister Kyriakos Mitsotakis presented his economic plan for 2024 at the Thessaloniki International Fair on Saturday. He focused on wage growth, employment, and climate challenges. Mitsotakis announced 45 measures, including higher pensions for 2 million pensioners starting next year and a new increase in the minimum wage in April 2024.
The government plans to spend 3 billion euros on these measures in 2025, which is 1.5% of Greece’s GDP. I do not carry with me today a bag of frivolous benefits, but only suggestions for useful and effective options,” Mitsotakis said. He stressed the need for fiscal responsibility, noting that eight states, including Italy and France, are under European Commission surveillance for overspending.
“I personally will not allow this to happen in Greece,” he added. Greece is still recovering from a budget crisis from 2009 to 2018 that wiped out almost a quarter of its economy. During this time, the country had to make significant cuts to wages and pensions.
Greece still has the second-highest unemployment rate in the EU, at 10%, and one of the lowest purchasing powers in the bloc. Mitsotakis said it is essential for Greece to fight climate change and move to a green economy. Wildfires and floods have caused extensive damage in the country and have cost the government a lot of money.
The prime minister arrived at the fair on Friday and will meet with the TIF-Helexpo board on Saturday morning. He will also tour the fair’s pavilions and hold a press conference on Sunday at noon.
Mitsotakis outlines wage and pension plans
Germany is the honored country at this year’s fair, with 135 companies among the more than 1,300 exhibitors. The fair will have 150 events focused on technology, education, and energy to highlight the growing economic ties between Greece and Germany. Mitsotakis promised to honor his commitments to citizens when they elected him.
He wants every citizen in the country to enjoy prosperity by 2027. The government plans to raise pensions from 830 euros today to 950 euros by April 2027. Mitsotakis also promised a 1% reduction in insurance contributions and a lower taxable income threshold for villages and towns with up to 1,500 people.
Greece will also charge a new fee for people getting off ships at Greek ports, especially in popular tourist spots like Santorini and Mykonos. Mitsotakis incentivized different groups, including private and public sector employees, farmers, and families. He wants to encourage people to buy homes and have more children.
He said no one should be left behind as the country works towards greater prosperity and competitiveness. “We have in front of us 1,000 days…to make good on all our commitments,” Mitsotakis said. Greece’s economy has recovered from the debt crisis, but many still struggle with the rising cost of living.
Mitsotakis is trying to balance giving people what they want with being responsible with money. The Greek economy has done better than expected in recent years, which gives the government room to spend more without risking the economy.
