The first Cabinet meeting of the new political season, scheduled for next Monday following the August recess, marks the beginning of what is shaping up to be an unmistakably pre-election political marathon — one that will kick off at the 90th Thessaloniki International Fair, with the social dimension of Kyriakos Mitsotakis’ announcements set to serve as the cornerstone of the government’s strategy.
Against this backdrop, the presumptive income tax framework — which has sparked widespread backlash among approximately 400,000 self-employed professionals — is set to be abolished in the very near future, offering much-needed relief to a large number of small and medium-sized business owners. This move encapsulates the broader direction the government intends to pursue in the months leading up to next spring’s elections.
The government’s inner circle returns to Maximos Mansion next week to finalize the package of measures, with the dual goal of reclaiming a dynamic parliamentary majority and reconnecting with traditional voter bases — particularly large professional groups such as the self-employed — by building a positive agenda ahead of the next electoral cycle.
Central to the entire plan is the effort to re-engage the middle class, and more specifically small business owners and freelancers, who have long been voicing their discontent over the imposition of a minimum presumptive income threshold in the tax system. Along these lines, government spokesman Pavlos Marinakis signaled a gradual phasing out of the presumptive income framework, stating: “As the anti-tax evasion measures are implemented and begin to bear fruit, the presumptive income thresholds for compliant self-employed professionals must gradually be lifted” — echoing the Prime Minister’s earlier characterization of the measure as temporary in nature.
Corrective interventions
Marinakis was clear, however, that there is no question of reinstating a 13th and 14th month salary or pension bonus, citing the lack of sufficient fiscal resources and the need for targeted, permanent interventions. He stressed that all government announcements would remain within the available fiscal space. The government is seeking to smooth out the rough edges of its tax reform by signaling corrective adjustments — sending a message that it is listening to grievances from segments of its social base that have been drifting away from the ruling party.
“What the Prime Minister said at the time — and remember this phrase, because it will prove useful to all of us in the weeks to come — is that the goal is not to keep the presumptive income thresholds indefinitely, but rather, once all the remaining anti-tax evasion measures have been implemented and proven effective, to then consider gradually removing them, either altogether or one by one,” Marinakis noted (news247.gr), speaking about the government’s intention to abolish the presumptive income system.
Maximos Mansion, through the government spokesman, sets the available fiscal space for benefits at just over €1 billion, though sources suggest the package of measures could reach as high as €1.5 billion. The final figure will be determined by the actual progress of Budget execution and, crucially, August’s tax revenue data. The current month is considered the most decisive, as tourism revenues, the clearance of tax returns, and VAT receipts will determine the precise size of the additional fiscal headroom to be channeled back into society and the economy.
Among the beneficiaries of these measures are pensioners, public and private sector employees, freelancers, and the self-employed — in short, the vast electoral body that ultimately decides which governments rise and fall. In this sense, Kyriakos Mitsotakis’ appearance in Thessaloniki this year will carry a clear and unmistakable social imprint. At the heart of the Prime Minister’s announcements will be tackling the cost-of-living crisis and boosting household disposable income through targeted tax cuts.
Wage increases
At the same time, the acute housing crisis is being treated as a frontline priority, with the government preparing announcements on the expansion of affordable housing programs, incentives to bring vacant properties back onto the market, and further restrictions on short-term rentals. The planned tax relief measures and increases in disposable income — including a new rise in the minimum wage set for the new year — are, however, being put to the test by the ongoing cost-of-living pressures that continue to rapidly erode household purchasing power.
The relaunch from Thessaloniki, at the starting line of the political marathon to which Kyriakos Mitsotakis so often refers, is viewed by Maximos Mansion as an opportunity to shift the political climate. It is worth noting that, alongside the Prime Minister’s announcements, both PASOK and ELAS will be staging their own battles in the co-capital. In this political landscape — where the opposition is struggling to find its footing while wrestling with its own internal contradictions — the critical question of whether the new package of measures will prove sufficient to halt the government’s declining approval ratings and rally voters back to its side will ultimately depend on how quickly and tangibly those announcements translate into real benefits felt in citizens’ wallets and everyday lives.
