ATHENS – Riding high with no real opposition – but trying to resurrect – Prime Minister Kyriakos Mitsotakis’ benefit plans for 2025 is tilted toward civil servants and pensioners, along with the military, with 3.5 billion euros ($3.87 billion) more.

Finance Minister Kostis Hatzidakis revealed the details of Mitsotakis’ revelations at the Thessaloniki International Fair of 45 measures aimed at helping young families with children getting homes as well.

There will also be a cut in social security contributions that will help private sector workers as he said he’s trying to bring wages in Greece closer to the European Union average, the country lagging in that sector, workers also taxed higher.

“We can do this because we have very strong growth, higher than the Eurozone’s azone’s average,” Hatzidakis told a news conference, referring to the 20 countries in the 27-member EU which use the euro as a currency.

Mitsotakis had said that Greece would increase pensions up to 2.5 percent in 2025 for most beneficiaries, and would raise the monthly minimum wage in an effort to relieve households struggling with the cost of living, said Reuters.

https://www.reuters.com/world/europe/greece-spend-an-additional-35-bln-euros-next-year-wages-pensions-2024-09-09/

Greece is rebounding from a 2010-18 economic and austerity crisis that required 326 billion euros ($360.22 billion) to stave off collapse but will take decades to repay although under Mitsotakis the country gained investment grade status.

That period brought brutal pay and pension cuts, tax hikes, and measures aimed at workers, pensioners and the poor but Parliament workers were exempted and the rich prospered, many hiding their wealth in secret foreign bank accounts.

The economy is expected to grow by 2.5 percent in 2024 on the back of what looks like another record year in tourism that could bring in more than 21 billion euros ($23.2 billion) although Mitsotakis said he can’t afford to lower a Value Added Tax (VAT) on food as high as 24 percent.

To offset that, he’s trying to raise wages and benefits to a level that will help the households most affected, with inflation subsiding and expectations the economy will grow another 2.5 percent in 2025.

Two government sources not named told Reuters that Greece plans to continue its repayments of bailout loans ahead of schedule, benefiting from its economic recovery and primary budget surpluses that don’t include interest on debt, the cost of running municipalities, state enterprises and some military costs.

About 300 million euros ($331.49 million) will be covered by additional taxes on cruise ship arrivals and passengers and climate change fees although there are worries that heat waves will keep tourists away in coming years.