Greece’s government announced more than €2 billion in tax relief and pay rises as public anger over the cost of living produced large protests in Thessaloniki. Prime Minister Kyriakos Mitsotakis pledged tax cuts, higher incomes and reforms as the economy stabilises, while labor unions warned affordability remains the country’s most pressing problem. More than 25,000 protesters and over 3,000 police were deployed amid the demonstrations; the same day saw a fatal fighter jet crash near Athens.
Greece Pledges Over €2 Billion in Tax Cuts and Wage Rises as 25,000 Rally Over Cost‑Of‑Living Crisis
A protester shouts slogans with a megaphone during a protest rally near Thessaloniki's international trade fair, in the northern city of Thessaloniki, Greece, Saturday, Sept. 5, 2026. (AP Photo/Giannis Papanikos)(AP Photo/Giannis Papanikos)
Greece's conservative government unveiled broad tax relief and salary increases ahead of next year’s general election as thousands took to the streets of Thessaloniki to protest soaring living costs.
Prime Minister Kyriakos Mitsotakis delivers a speech during Thessaloniki's international trade fair, in the northern city of Thessaloniki, Greece, Saturday, Sept. 5, 2026. (AP Photo/Giannis Papanikos)(AP Photo/Giannis Papanikos)
Prime Minister Kyriakos Mitsotakis used the annual address on the state of the economy in Thessaloniki to promise what he called relief from heavy taxation, higher incomes and “bold reforms” as the recovery continues. He said the country has overcome stagnation and is preparing to deliver the benefits of economic stabilisation to citizens.
Farmes take part in a protest rally during Thessaloniki's international trade fair, in the northern city of Thessaloniki, Greece, Saturday, Sept. 5, 2026. (AP Photo/Giannis Papanikos)(AP Photo/Giannis Papanikos)
Police estimated that more than 25,000 people joined union-led demonstrations across the northern city. Labor groups, protest coalitions and farmers — some of whom drove tractors into central districts — demanded faster, more tangible relief from rising prices and stagnant wages.
Prime Minister Kyriakos Mitsotakis delivers a speech during Thessaloniki's international trade fair, in the northern city of Thessaloniki, Greece, Saturday, Sept. 5, 2026. (AP Photo/Giannis Papanikos)(AP Photo/Giannis Papanikos)
Authorities deployed more than 3,000 officers, temporarily closing streets and subway stations near the venue where the prime minister spoke to ensure public order. The protests reflected persistent public frustration: despite Greece posting 2.1% GDP growth last year and recording a budget surplus while steadily reducing public debt, workers in the country still have the lowest purchasing power in the European Union.
Farmers take part in a protest rally during Thessaloniki's international trade fair, in the northern city of Thessaloniki, Greece, Saturday, Sept. 5, 2026. (AP Photo/Giannis Papanikos)(AP Photo/Giannis Papanikos)
“Wages are low and prices are soaring, so affordability is the most serious problem,” said Yiannis Panagopoulos, head of the GSEE, Greece’s largest labor union.
The government said the package of support measures — worth more than €2 billion (about $2.3 billion) over the coming year — will include tax cuts targeted at self‑employed professionals, farmers and residents of rural villages, along with increased pensions and higher pay for public sector employees.
Mitsotakis, 58, the son of the late conservative premier Constantine Mitsotakis, has led Greece since 2019 as the country emerged from a deep financial crisis. He is seeking a third term in an election expected next April, though opinion polls suggest his center‑right New Democracy party may fall short of an outright parliamentary majority.
The day’s events were also overshadowed by a separate tragedy: a fighter jet crash at an air show near Athens earlier in the day that killed two air force pilots.
Reporting: Derek Gatopoulos contributed from Athens.
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