THESSALONIKI, Greece – As Greece’s ruling conservative administration readies for a pivotal 2024 general election, Prime Minister Kyriakos Mitsotakis has announced a €2 billion ($2.3 billion) package of broad tax cuts and wage increases – a plan rolled out even as more than 25,000 protesters gathered in Thessaloniki Saturday to decry the country’s ongoing cost-of-living crisis.
Mitsotakis delivered the policy pledge during his annual state-of-the-economy address in Greece’s northern port city, framing the new measures as the long-awaited payoff for years of fiscal recovery after the nation’s crippling decade-long financial crisis. “Our country has pulled itself out of economic stagnation, and now it is time for Greeks to reap the rewards of our collective hard work,” the prime minister said. “As our economy stabilizes, we will deliver relief from crippling taxation, higher household incomes, and far-reaching structural reforms.”
The public appearance came with heightened security: more than 3,000 police officers were deployed across Thessaloniki, closing central streets and subway stations near the speech venue to manage large-scale demonstrations organized by national labor unions and grassroots advocacy groups. Protesters brought agricultural tractors into the city’s downtown core to amplify their demands, drawing attention to widespread financial strain hitting working people and farming communities across the country.
While Greece has posted notable macroeconomic gains in recent years – including a 2.1% GDP growth rate and a federal budget surplus in 2023, alongside steady reductions to its long-standing high public debt – Greek workers retain the lowest purchasing power of any nation in the European Union. “Wages have stagnated while consumer prices continue to skyrocket, and affordability has become the most pressing crisis facing ordinary Greeks,” explained Yiannis Panagopoulos, president of the General Confederation of Greek Workers (GSEE), Greece’s largest labor federation.
The newly announced support package targets multiple key voter blocs ahead of the expected April election, where Mitsotakis – who has held office since 2019 and is seeking a third consecutive term – will fight to retain control of government. The plan includes tax reductions for self-employed workers, small-scale agricultural producers, and residents of small rural villages, alongside across-the-board salary and benefit increases for public sector employees and retired Greeks.
Current polling indicates that Mitsotakis’ center-right New Democracy party holds a lead over opposition groups but is unlikely to secure an outright parliamentary majority, leaving the outcome of the upcoming vote uncertain. Saturday’s policy event was also overshadowed by tragedy: a Greek fighter jet crashed during an air show near Athens several hours before the speech, killing two elite air force pilots.
Derek Gatopoulos contributed additional reporting from Athens.