Greece Plans Tax Cuts and Support for Middle Class, Minister Says

The Greek government is committed to addressing the cost of living crisis through a combination of income support and tax reductions, according to Thanasis Kontogeorgis, Deputy Minister to the Prime Minister. He stated that the government is continuously working on solutions, including digital applications and market agreements, to achieve more stable price reductions.

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We will not enter into a bidding war. There is specific fiscal space that comes from the toil of the Greek people.

Kontogeorgis highlighted ongoing policies aimed at improving incomes, such as direct increases, tax cuts, reduced property taxes (ENFIA), and rental subsidies. He acknowledged that many citizens are struggling with the current economic situation and assured that the government will do everything possible to alleviate their difficulties. The minister noted that the recent inflation figure of 5.2% was largely driven by fuel prices, suggesting inflation would have been lower than the European average otherwise.

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We will continue our policy steadily. The Consumer Protection Authority has been strengthened with control mechanisms.

Looking ahead to the Thessaloniki International Fair (TIF), Kontogeorgis signaled that the government will not engage in an "bidding war" with opposition proposals, stressing the need to operate within the country's fiscal limits. He indicated that significant tax relief measures and targeted support for vulnerable populations are planned, with final decisions to be made by the end of August. He assured citizens that the approach would be focused on both individuals and businesses, similar to previous years.

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We will try to facilitate citizens in this situation, which is not the easiest.

The deputy minister also commented on the political landscape, characterizing the opposition's recent actions as repetitive and indicative of unchanged political strategies. He contrasted this with the government's approach, which he described as pragmatic and aligned with fiscal realities, suggesting that some opposition proposals, while appealing, are not sustainable.

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Some opposition proposals may sound appealing, but what matters is that the blanket covers as far as our feet reach.