The Greek prime minister’s presence this weekend at the Thessaloniki International Fair (TIF), where the country’s head of government delivers an annual state-of-the-economy address and outlines policy priorities, may be markedly different this year, given that PM Kyriakos Mitsotakis faces the challenge of reversing so-called electoral “fatigue,” given that a center-right government with him at the helm has been solidly in power since July 2019.
The expected initiatives to be announced at the annual Thessaloniki International Fair will largely have economic and social characteristics, again aimed at weaker and more vulnerable social groups. However, another emphasis will be dealing with a housing shortage in a handful of urban areas, especially the Athens-Piraeus agglomeration, where roughly half the country’s population resides. Possible measures may include restrictions on owners’ rights to lease their property on Airbnb-type platforms, tax incentives for long-term leases, and other measures.
As reported in the local media this past week, the Greek prime minister will unveil a plan that includes the following interventions:
- Changes regarding the ‘My Home 2’ program, expanding age eligibility from 39 years to 50, widening income criteria with zero interest for families with three or more children, and setting a requirement that properties must be less than 15 years old.
- An initiative to address an urban housing shortage, with the construction of 3,000 residences on public land and the utilization of 1,600 more vacant properties by the end of this year or early 2025.
Changes are also expected in the ‘Renovate-Rent’ program, which includes a subsidy increase from 4,000 to 6,000 euros and the advance payment rate rising to 50%
Support for so-called vulnerable social groups, such as the long-term unemployed, low-income pensioners, people with disabilities etc.: Permanent measures worth 880 million euros will be included in the 2025 budget. These measures will encompass a reduction in social security contributions by 0.5%, the abolition of the business tax for professionals, the permanent return of the special consumption tax for farmers, an increase in student housing allowances, a rise in pensions and a suspension of VAT on construction.
Specifically regarding the increases for Greece’s low-income pensioners, a series of interventions will include a horizontal increase of 2.6%–2.8% for all, the provision of a ‘personal difference allowance’ for those who lose out on the general increase, and the finalization by the Hellenic Social Security Institution (EFKA) of the list of beneficiaries who will share 300 million euros from the taxation of excess refinery profits.
