Key Features of the Thessaloniki International Fair Economic Package:Targeted Tax Reliefs and Social Measures

The Greek government’s economic package announced at the 2025 Thessaloniki International Fair (ΔΕΘ) allocates €1.76 billion in fiscal measures aimed at alleviating the financial burden on various demographic groups. The primary beneficiaries include families with children, young individuals under 30, and middle-income earners.

Key Components of the Economic Package

1. Tax Reductions for Families and Youth
   • Income Tax Adjustments: Significant reductions in income tax rates for individuals earning above €20,000 annually.
   • Enhanced Tax Allowances: Increased tax-free thresholds for families with children and young adults up to 30 years old.
2. Support for Middle-Income Groups
   • Targeted Tax Reliefs: Introduction of measures specifically designed to ease the tax burden on middle-income households.
3. Pension Increases
   • Across-the-Board Pension Hikes: All pensioners will receive increases ranging from 1.18% to 2.5%, effective January 1, 2026, irrespective of personal differences.
4. Support for Public Sector Employees
   • Salary Enhancements for Uniformed Services: Average monthly salary increases of approximately €110 for uniformed personnel, including police and military staff.
5. Housing Incentives
   • Reduced Rent Taxation: Implementation of lower tax rates for rental incomes between €12,000 and €24,000.
   • Housing Allowances: Introduction of measures to support housing affordability for eligible individuals and families.

Financial Implications

• Immediate Fiscal Impact: The measures are projected to cost €1.2 billion in 2026, increasing to €1.6 billion in 2027, and €1.53 billion annually from 2028 onwards.
• Long-Term Economic Strategy: The package aligns with the government’s broader economic goals of stimulating domestic consumption and supporting vulnerable demographics.

The economic package presented at the 2025 ΔΕΘ reflects the government’s commitment to addressing the financial challenges faced by key segments of the population. By focusing on tax reliefs and social measures, the government aims to foster economic stability and support sustainable growth.

Note: For detailed tables and examples illustrating the impact of these measures on various income groups, please refer to the official government publications and economic reports.

Source: pagenews.gr