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Greece's re-elected PM outlines government goals up to 2027

Published 07/06/2023, 09:51 AM
Updated 07/06/2023, 12:33 PM
© Reuters. FILE PHOTO: Greek Prime Minister Kyriakos Mitsotakis signs a document during a swearing-in ceremony of the newly appointed members of the government at the Presidential Palace in Athens, Greece, June 27, 2023. REUTERS/Stoyan Nenov/File Photo

By Renee Maltezou and Lefteris Papadimas

ATHENS (Reuters) -Greece's re-elected Prime Minister Kyriakos Mitsotakis on Thursday pledged his conservative government would "fix the sins of the past" and over the next four years cut taxes, boost wages and pensions, and repay bailout debts earlier than expected.

Mitsotakis, 55, won 158 sets in the 300-seat parliament in a June 25 national election, securing a clear majority to push ahead with his plan in a country which emerged from a huge debt crisis five years ago that rocked the euro zone.

The leader of the centre-right New Democracy party said in his first parliamentary address since the election that his party received a mandate to move fast with reforms.

Mitsotakis pledged to help Greece achieve robust growth, regain this year an investment grade credit rating after 13 years and repay earlier than expected bilateral loans from its first bailout agreement with the euro zone.

He promised to give pensioners a one-off annual bonus again this year, extend measures to shield households from a cost-of-living crisis and increase a tax-exemption threshold by 1,000 euros for households with children from next year.

The premier also said the monthly minimum wage would be raised to 950 euros from 780 euros currently, while social security contributions would be cut by one percentage point. A business tax on the self-employed would be gradually reduced.

"Better days lie ahead," he told parliament, promising to crack down on tax evasion and to reform the country's ailing health sector.

The cost of New Democracy's pre-election programme is estimated at 9 billion euros.

Mitsotakis says Greece, still the euro zone's most indebted nation, can achieve primary surpluses of around 2% annually, despite the relief measures.

"At the beginning of my new term I'm not promising miracles, just hard work," he told lawmakers.

Mitsotakis was kicking off a three-day parliamentary process which will conclude with a confidence vote on June 8.

The election was a heavy defeat for Alexis Tsipras' Syriza, the leftist party which ruled Greece in 2015-2019, at the peak of its debt crisis. Tsipras lost 39 seats and resigned last week.

© Reuters. FILE PHOTO: Greek Prime Minister Kyriakos Mitsotakis signs a document during a swearing-in ceremony of the newly appointed members of the government at the Presidential Palace in Athens, Greece, June 27, 2023. REUTERS/Stoyan Nenov/File Photo

Fringe parties of the political left and right - including an anti-immigrant party calling themselves the Spartans - got a foothold in parliament.

Analysts have said it was unlikely that far-right parties, which received over 12% of the vote, could define government policy. But they are expected to stir public debate on LGBTQ+ issues, migration and relations with Greece's historic rival Turkey.

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