Greece’s government has officially submitted its 2026 State Budget to Parliament, with Finance Minister Kyriakos Pierrakakis unveiling a sweeping €3.2 billion package of permanent support measures. Over 5 million households are expected to benefit, as the plan targets cost-of-living pressures and aims to narrow income inequality.

The budget includes targeted tax relief for households earning between €20,000 and €60,000 annually, rent refunds for tens of thousands of families spending a large portion of their income on housing, and the gradual abolition of the “personal difference” clause in older pensions. Minimum wage and public sector salaries will also see increases, with the minimum wage set to rise to €950 by 2027.

According to Greece’s General Accounting Office, these measures are projected to reduce poverty among the most vulnerable households by 5.5 percentage points, while the overall poverty rate is expected to drop from 16.9% in 2025 to 15.1% in 2026. The plan also features a 30% VAT reduction for remote islands and the suspension of imputed living expenses for new mothers.

Prime Minister Kyriakos Mitsotakis emphasized that these reforms are designed to put more money in citizens’ pockets, not just through short-term subsidies. He pointed to Greece’s 2024 fiscal surplus of €11.4 billion (4.8% of GDP) as the foundation for sustainable, long-term reforms without jeopardizing fiscal stability.

Additional measures include new housing support and family benefits, with a new home renovation program set to be announced before year-end. The government says these initiatives will continue for years, aiming to build a fairer and more resilient economic structure.