“It’s time to support the middle class, the Greek family and young people”declared Kyriakos Mitsotakis on Saturday evening, during his back-to-school speech at the Thessaloniki International Fair. The conservative Prime Minister announced a series of tax cuts totaling 1.6 billion euros, the first cut since the end of the economic crisis in 2018. More than four million taxpayers are expected to benefit.
The head of government specified that these measures were primarily aimed at families, while Greece has for several decades experienced one of the lowest fertility rates in Europe, with 1.4 children per woman. “We are adding yet another arrow to our quiver in the battle against the demographic problem”he insisted. Inspired by the French model, the new system of tax shares will increase according to the number of children. Families with four children will be completely exempt from tax.
The government’s popularity in free fall
In addition to the demographic issue, the government has promised other targeted relief: a 50% reduction in property tax for villages with less than 1,500 inhabitants, a 30% reduction in VAT on small islands close to Turkey, as well as exemptions for young workers. Those under 25 whose income does not exceed 20,000 euros will not pay tax. Those aged 25-30 will receive a significant discount.
These announcements come in a tense climate. According to AFP, some 10,000 people demonstrated in Thessaloniki against the government, in particular because of a reform of labor law. The left-wing opposition immediately criticized the tax measures. “No matter how many promises Mr. Mitsotakis announces today, he cannot hide what all Greeks know: Greece has the lowest wage in the Eurozone and the lowest purchasing power. “, denounced Sokratis Famellos, leader of the Syriza party.
Since 2011, Greece has lost 500,000 inhabitants, according to official censuses. For Kyriakos Mitsotakis, the issue is clear: “We must bring life back to Greek villages. »
