Greek Prime Minister Kyriakos Mitsotakis announced that starting next year, families with low incomes and four children will benefit from a zero tax rate, as well as an increase in pensions, reported Lokalno.

According to him, strong economic growth, a budget surplus larger than expected, and improved tax collection make it possible to fund this package. “We all know that Greeks struggle to make ends meet. That is why our priority is to support their incomes,” the Prime Minister emphasized.

The reform foresees a 2% reduction in the tax rate across all categories, as well as the elimination of property taxes in areas far from major centers, to encourage young people to settle in rural regions. The total value of the measures amounts to €1.6 billion.

After the debt crisis from 2009 to 2018, the Greek economy, driven mainly by tourism, has recovered and is now approaching pre-crisis levels, Reuters reports. Nevertheless, the country remains the most indebted in Europe, and disposable income continues to lag behind the EU average, as rising energy, food, and housing costs erode purchasing power despite a cumulative 35% increase in the minimum wage. |BGNES