Greece. Announcement of pension increases for the first time in over 10 years – Greek Prime Minister Kyriakos Mitsotakis on details

Greek Prime Minister Kyriakos Mitsotakis announced that pensions will increase in 2023. It will be the first increase in benefits in this country since the outbreak of the financial crisis, i.e. in over ten years. The minimum wage is also to go up again.

– After many years, they will increase next year pensions for 1.5 million retirees, Kyriakos Mitsotakis said in the annual economic speech in Thessaloniki.

The conservative Mitsotakis, whose party is facing parliamentary elections in 2023, announced that the indexation of pensions will be indexed to the growth of gross domestic product (GDP) and the inflation rate.

Minimum wage, which the government recently increased to € 713 a month, is to be increased again next May. However, the prime minister did not specify the amount.

The so-called a solidarity tax paid by public and private sector employees, introduced during the country’s sovereign debt crisis.

Mitsotakis has promised the government will take steps to mitigate the severity of the impact on growing households energy prices and high inflation. Since last year, the amount of government aid for these purposes has amounted to approximately EUR 8 billion, according to official data.

According to the information provided by the head of the Greek government, all the announced steps will cost 5.5 billion euros in total.

Mitsotakis said economic growth in Greece will exceed 5% this year. This is more than the government’s previous forecast, according to which GDP growth was supposed to amount to 3.1%.

Kyriakos MitsotakisEPA / ACHILLEAS CHIRAS

Greece’s debt

Greece remains the most indebted country the euro area. In 2010-2015, it received over EUR 260 billion in international aid in return for very severe austerity measures, including cuts in wages and pensions.

After 2018, the country’s situation improved somewhat, and lenders agreed to ease them.

In the second half of August this year. 12 years later, strict supervision of creditors from the European Union over Greece’s public finances was formally ended. The country no longer has to undergo quarterly checks to receive payments from the bailout package.

Main photo source: PAP / EPA / ACHILLEAS CHIRAS

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