Greek Deputy Prime Minister Kostis Hatzidakis announced a major infrastructure and economic development package for Thessaloniki and Northern Greece on Thursday, pledging to extend the city metro to the northwest and complete the new flyover highway by May 2027.
Speaking at an event titled National Strategy for Regional and Local Development in Northern Greece at the Thessaloniki Concert Hall, Hatzidakis detailed progress across major transport, healthcare, logistics, and urban renewal projects, while launching eight new civic interventions.
Hatzidakis said the government was placing Thessaloniki, Macedonia, and Thrace at the top of its agenda, stating that Northern Greece was rising and that ministers speak through concrete actions. He acknowledged that the region faces lingering challenges, but argued that economic indicators demonstrate a sustained recovery across Central and Western Macedonia.
Unemployment is falling across both administrative regions, while per capita gross domestic product is growing and private enterprise is returning, according to Hatzidakis. He reported an 86 percent surge in new business registrations across Northern Greece between 2019 and 2025, led by Thessaloniki with a 120 percent increase.
Export figures for Northern Greece grew by 50 percent between 2019 and 2024, including a 54.5 percent rise in Central Macedonia and nearly 18 percent in Western Macedonia. Over the same period, installed renewable energy capacity grew 160 percent across Northern Greece and 400 percent in Western Macedonia. Tourism also posted strong gains in arrivals and accommodation revenues, with passenger traffic at Thessaloniki Macedonia Airport approaching an all-time record last year at eight million passengers.
Transport network and port expansion
Hatzidakis emphasized that extending the Thessaloniki Metro into the city's northwestern suburbs represents the next major public works project for Greece's second city, fulfilling a commitment made by Prime Minister Kyriakos Mitsotakis. Meanwhile, construction on the elevated flyover highway is advancing faster than scheduled and will be handed over to residents in May 2027.
At the Port of Thessaloniki, work on the sixth pier has begun and will proceed despite operational challenges. Container traffic through the port increased by 45 percent between 2019 and 2025, while cruise ship calls grew 16-fold and passenger volume expanded 80-fold. Hatzidakis said the expanding port facility will serve as an engine of economic growth for the city and the wider national economy.
Addressing long-standing issues on the national rail network, Hatzidakis confirmed that the main railway axis connecting Athens and Thessaloniki will be fully operational by the end of 2026. The upgraded corridor will feature double tracking, full electrification, digital tele-command control systems, and modern rolling stock.
Expansion of the western Thessaloniki suburban railway has also commenced, adding new lines toward Evosmos, Kordelio, Menemeni, Agios Athanasios, and Chalkidona. Initial improvements at the main Thessaloniki Railway Station are being funded through a three million euro private donation. A separate 66.3 million euro allocation will cover suburban rail expansion alongside a direct rail link to the port's sixth pier, while testing and certification continue for the European Train Control System (ETCS) on the line to Idomeni near the North Macedonian border.
The deputy prime minister noted that the renewal of Thessaloniki's public bus fleet is progressing at a faster pace than in Athens, with zero-emission electric vehicles accounting for a significantly larger share of local transit operations.
Logistics hubs, health services, and schools
Commercial infrastructure development includes a planned 260 million euro logistics hub covering 672 stremmata at the former Gonou military facility. The bidding tender has entered its final round with three candidate consortiums, and a winning contractor will be designated in the coming months. Concession arrangements are also advancing for the Kalamaria Marina, backed by 140.5 million euros in private investment.
Educational infrastructure is receiving an overhaul, with 17 school buildings being upgraded across Central Macedonia, including 16 located in Thessaloniki. Hatzidakis announced that 11 of these facilities will open within days, while the remaining six will be completed in 2027.
In healthcare, Hatzidakis confirmed that legal hurdles delaying the new 425-bed Theageneio Cancer Hospital were cleared by the Council of State, the supreme administrative court of Greece. The 350 million euro Public-Private Partnership tender has entered its final phase, with construction expected to conclude by late 2028. Work is also underway on the new Thessaloniki Pediatric Hospital, targeted for completion in early 2027, alongside renovation programs across six existing hospitals and 33 regional health centers.
Cultural preservation and public parks
Urban revitalization efforts include restoring the historic Government House mansion, locally known as Palataki. The project is being managed by state real estate entity ETAD in coordination with the Hellenic Parliament, with completion slated for 2028.
The 204.6 million euro master plan for the Thessaloniki International Fair trade grounds, previously compared to the proverbial Bridge of Arta due to endless historic delays, has been formally launched by the Mitsotakis administration. Construction will proceed across three distinct phases through 2030.
Green spaces are being expanded through the establishment of the Pavlos Melas Metropolitan Park and a 3,000-stremmata peri-urban forest in the same municipality, funded via a private gift from businessman Stavros Andreadis. Sports infrastructure includes an 11.6 million euro modernization of Kaftanzoglio Stadium, enabling local football clubs PAOK and Iraklis to use the stadium as needed.
Cultural preservation initiatives encompass restorations at the State Conservatory of Thessaloniki, the Ottoman-era Hamza Bey Mosque, and various Byzantine monuments, alongside the construction of the new Holocaust Museum of Greece.
Eight new civic projects launched
Hatzidakis outlined eight newly launched local projects, starting with a comprehensive redevelopment of the main Thessaloniki Railway Station. A public tender will be issued in late 2026 for the project, which Hatzidakis called a milestone transformation to be completed within three to four years.
To relieve urban congestion, 600 new parking bays will be built on land formerly occupied by the Farmaki Military Camp and the Northern Greece Naval Command. The historic former Agios Minas complex will be formally transferred to the Municipality of Thessaloniki.
At the Toumba archaeological site, tendering is underway in coordination with the Culture and Environment Ministries to create a 120-stremmata metropolitan park. Exclusive responsibility for cleaning the Thermaic Gulf has been assigned to OFYPEKA, the national climate and environment agency, to ensure the waterfront is actively maintained.
Higher education facilities will also benefit, with a new 2,000-seat indoor sports arena planned for Aristotle University of Thessaloniki, alongside energy retrofits across 12 university building complexes. Hatzidakis urged that the university energy retrofits be fast-tracked for funding under the national Modernisation Fund.
Finally, a new four-stremmata athletic training facility and public green area will be created in Agia Fotini to support local sports club Aris.
