Greek Prime Minister Kyriakos Mitsotakis announced a series of tax cuts and support packages aimed at supporting the middle class.

Macro/Political:

• Greek PM Kyriakos Mitsotakis announced a EUR 1.6bn reform of the country’s income tax system, aimed at supporting the middle class, which has struggled to recover from years of crisis. In his annual speech at the Thessaloniki International Fair Greek PM outlined the government’s policy priorities for the coming year, and unveiled cuts to income tax rates, particularly for families with children. Under the new plan, families with four or more children will pay no income tax on the first EUR 20,000 of annual income, in a bid to address Greece’s low birth rates. He also announced additional benefits for pensioners, higher wages for security force employees and diplomats, as well as the continuation of certain tax cuts first introduced during Greece’s decade-long debt crisis. Mr.  Mitsotakis further confirmed that national elections will be held (under the same electoral law) in 2027, at the end of his government’s full four-year term, ruling out the possibility of an early vote.

• DBRS affirmed Greece’s credit rating at BBB with a stable trend, noting that the assessment reflects balanced near-term risks. Greece’s economy grew by 2.3% in 2024, well above the EU average of 0.9%. Growth was supported mainly by strong domestic demand, while robust activity and recurrent primary surpluses have steadily reduced the debt-to-GDP ratio. DBRS indicated that Greece’s rating could be upgraded if: (1) there is a further material reduction in the public debt ratio, underpinned by sustained primary surpluses; or (2) reforms continue to be implemented that boost investment and strengthen longer-term growth prospects. Conversely, the rating could be downgraded if: (1) fiscal discipline weakens for a prolonged period or contingent liabilities materialize, putting the public debt ratio on a sustained upward path; (2) structural reforms are reversed; or (3) the country’s external position deteriorates significantly.
  Source: DBRS

• According to ELSTAT, Greece’s GDP growth rate in 2Q25 stood at 0.6% (q-o-q) , and 1.7% (y-o-y).
  Source: ELSTAT

• In August 2025, the Athens International airport’s passenger traffic amounted to 3.88 million, 6.7% higher than August 2024. During the first eight months of 2025, the airport’s passenger traffic reached 22.713 million, above the 2024 levels by 6.8%.
  Source: ATHEX