Greek Prime Minister Kyriakos Mitsotakis will outline his government's medium-term economic agenda at the Thessaloniki International Fair during the first weekend of September, introducing permanent tax relief and expanded social support.
The keynote address at the annual trade and economic forum in northern Greece will establish policy priorities through to the 2027 general election while setting out a broader strategic plan with targets extending to 2030.
Government officials are finalizing the announcements, which focus on reducing tax and social security contributions, protecting retirees, and supporting small and medium-sized enterprises.
According to government sources, the measures will prioritize permanent benefits for the middle class and vulnerable households, maintaining the policy direction established during previous appearances at the exhibition.
Fiscal Strategy and Social Dividend
Ministers emphasize that the economic package rests on a dual strategy of maintaining social welfare initiatives while guaranteeing strict national fiscal stability.
Government sources said robust economic growth and improved tax compliance have generated higher primary surpluses, allowing the state to fund permanent social dividends while accelerating the repayment of public debt.
Greece has increased its planned early debt redemptions for this year to 13 billion euros, up from the 8.79 billion euros initially budgeted.
The expanded early debt repayments were made possible by strong budget performance throughout the first half of the year, finance officials said.
The 13 billion euro debt settlement includes 6.94 billion euros paid in June to clear bilateral loans under the Greek Loan Facility, which was established during the European debt crisis.
The total also includes 2.5 billion euros in European Financial Stability Facility bailout loans, a 1.2 billion euro reduction in outstanding short-term treasury bills, and the early redemption of a 2.2 billion euro bond maturing in December 2027.
Government calculations show these early prepayments will generate 2.6 million euros in net interest savings over the next seven years.
Sovereign Debt Targets and Rating Reviews
Accelerated debt repayments are projected to lower Greece's public debt ratio to 136.8 percent of gross domestic product this year, before dropping below 120 percent by 2029.
Officials project that public debt will drop below 110 percent of gross domestic product by 2031, reaching that threshold a full year earlier than previous government forecasts.
The administration has set a long-term target to bring total sovereign debt below 100 percent of economic output by the middle of the 2030s.
International credit rating agencies will evaluate Greece's creditworthiness during an autumn assessment cycle running over the next fortnight through to November.
Canadian agency DBRS Morningstar will open the evaluation cycle on September 4, followed on September 18 by United States rating agency Moody's and German firm Scope Ratings.
DBRS and Scope currently assign Greece an investment-grade BBB rating, whereas Moody's maintains a Baa3 rating, which sits one notch below investment grade.
Standard and Poor's will release its assessment on October 23, followed by Fitch Ratings on November 6. Both agencies currently hold Greece at a BBB investment grade.
Financial analysts and economic observers consider a credit rating upgrade likely, citing the accelerated debt reduction achieved through early repayments.
Preceding Annual Economic Packages
The upcoming policy address builds upon economic measures introduced at the Thessaloniki International Fair over the past three years of the government's second term.
At the 2025 fair, the government enacted major tax reforms, cutting all income tax rates by 2 percentage points for annual incomes up to 40,000 euros.
The 2025 reforms introduced an intermediate 39 percent tax bracket for earnings between 40,000 euros and 60,000 euros, provided targeted tax cuts for families with children, and zeroed income tax for workers under 25 earning up to 20,000 euros.
The government also halved the ENFIA unified property tax in thousands of small settlements with populations up to 1,500 residents, with complete abolition scheduled for 2027.
The 2024 package comprised 45 individual measures, including reductions in social security contributions and the total elimination of the self-employed business fee.
The 2024 initiatives also removed pension deduction penalties for working retirees, introduced the My Home 2 housing program, and granted a three-year tax exemption on rental income for landlords converting properties into long-term leases.
In 2023, the government unfroze salary seniority bonuses, known as three-year wage increases, which had been suspended for 12 years under international bailout agreements.
The 2023 measures further raised the tax-free income threshold by 1,000 euros for households with children, mandated point-of-sale card terminals across retail sectors, and provided state relief following severe damage caused by Storm Daniel.
