Greek Prime Minister Kyriakos Mitsotakis ruled out snap elections on Sunday, saying the country will hold its next general election in spring 2027, as his government seeks to regain support after announcing a €3.5 billion package of tax cuts and wage increases.
“Elections will be held in spring 2027,” Mitsotakis said at a press briefing, dismissing speculation that he could call an early election this year. He also said he believed his centre-right New Democracy party could still win an outright majority and secure a third consecutive four-year term.
New Democracy won re-election in 2023 with 40.5% of the vote and pledged to raise incomes. However, its support has fallen below 30% in opinion polls amid a prolonged cost-of-living crisis and corruption allegations.
The government announced the new economic measures on Saturday, with Mitsotakis unveiling €3.5 billion in tax cuts and wage increases to be introduced over the next four years. The package represents around 1.5% of Greece’s gross domestic product.
The measures include an annual €400 bonus for pensioners and €500 for public servants. The government will also introduce a zero income-tax rate for annual incomes of up to €20,000 for farmers and families with three children.
Self-employed workers and businesses will gradually see their advance tax payments reduced to 50%.
Mitsotakis also pledged to reduce unemployment to 6% and bring public debt below 110% of GDP by 2030.
The prime minister’s government has more fiscal room to fund the measures as Greece’s economy continues to outperform the wider euro zone.
Greece’s economy is growing at an annual rate of around 2%, above the euro zone average, while the government expects a primary budget surplus of about 4% this year — twice its original forecast.
The country’s economic turnaround marks a significant shift from the financial crisis that began in 2009 and raised fears that Greece could leave the euro zone.
With the next election now firmly scheduled for spring 2027, Mitsotakis faces the challenge of turning the improving economic picture into stronger public support before voters return to the polls.
(Source: Reuters)
