The Cabinet convened with a focus on completing the Recovery Fund, the trajectory of the economy, and measures to tackle the cost-of-living crisis, marking the launch of the new political season. The Prime Minister’s office is seeking to shift the center of gravity toward economic policy — an area where government officials believe Kyriakos Mitsotakis holds a “competitive advantage” over the opposition parties.
In this context, Kyriakos Mitsotakis offered a preview during his opening remarks of the announcements expected at this year’s Thessaloniki International Fair. He signaled that from the podium of the “Vellidio” convention center, he will present the key pillars of economic policy for 2027, as well as a comprehensive roadmap charting Greece’s course through to 2030. He noted that a central reference point is the 200th anniversary of the founding of the Greek state — with the goal of having the country stronger, more productive, and better prepared to face the challenges of an exceptionally turbulent international environment.
Cabinet meeting: Mitsotakis’ message ahead of the Thessaloniki International Fair
This is the “Agenda 2030” — New Democracy’s new government program for a potential third term in office, being drafted under the supervision of Deputy Prime Minister Kostis Hatzidakis. It will also serve as the party’s pre-election platform. “In less than two weeks, we will be in Thessaloniki, where we will have the opportunity to present our economic pillars for next year’s policy. And since this is our last appearance at the Thessaloniki International Fair before the 2027 elections, it will also be an opportunity to begin unfolding the roadmap of our country toward 2030. I have spoken about this milestone of 200 years since the founding of the modern Greek state — a milestone we want to find our country stronger, more productive, more just, and more ready to face the great challenges of a particularly turbulent era,” Kyriakos Mitsotakis said at yesterday’s Cabinet meeting.
What the Prime Minister will present
On the first weekend of September, Prime Minister Kyriakos Mitsotakis is expected to announce from the Thessaloniki International Fair podium the key pillars of economic policy for the coming months leading up to the 2027 elections, as well as a strategic plan with targets through 2030 and interventions across key sectors of the economy and society. Support for the middle class and vulnerable groups through permanent benefits will be a central pillar of the Thessaloniki package. According to government sources, these interventions will follow the same logic as the announcements made at the three previous Thessaloniki fairs during the government’s second term. Housing policy measures — which were included in all three previous fair packages — are cited as one example, as are tax cuts with a focus on families.
What will be at the center of the announcements
The central message of the Prime Minister’s announcements will be the continuation of social support policies alongside the safeguarding of the country’s fiscal stability. Working groups are already meeting regularly at the Bodosaki Foundation building, coordinated by the Deputy Prime Minister, to draft New Democracy’s pre-election program — which will serve as the primary tool for the party’s candidates and officials in the electoral race. The core pillars of “Agenda 2030” were already presented to the Prime Minister before the summer recess.
Who is participating in the working sessions
The working sessions include Minister of State Akis Skertsos, Deputy Minister to the Prime Minister Thanasis Kontogeorgis, and other officials with expertise across specific sectors, all contributing to the formulation of the proposals included in the program. The program is expected to be largely finalized by the end of August. The Prime Minister has already revealed the main pillar of the new pre-election program for New Democracy’s potential third term: a focus on rapid growth and swift support for disposable income. In the same vein, Mitsotakis has stressed that citizens’ purchasing power and household budgets are emerging as the top priority of the new cycle toward 2030 — with the goal of translating macroeconomic progress into tangible benefits for everyone.
The focus on the economy
On the economy, Mitsotakis placed particular emphasis on the ongoing reduction of public debt, describing it as a policy of responsibility toward future generations. He argued that for the first time, a government is reducing public debt at such a rapid pace, expressing confidence that Greece will soon no longer be the most indebted country in Europe.
He also described the improvement in the country’s fiscal standing as a “major national achievement,” noting that Greece is now borrowing at more favorable terms than other major European economies. “For the first time since the early 1980s — and it is worth remembering when public debt truly exploded — there is a government steadily reducing it at such a pace that we will very soon no longer be the most indebted country in Europe,” the Prime Minister stated.
What he said about the cost of living
Addressing the cost-of-living crisis — which he acknowledged remains the most pressing issue for Greek households — Mitsotakis highlighted that signs of price deceleration are already being recorded in key food categories, including olive oil, fruits, and vegetables. He reminded the Cabinet that the National Price Reduction Agreement comes into effect on September 1st, while market-driven initiatives to contain the cost of back-to-school supplies ahead of the new academic year are also expected.
Completion of the Recovery Fund
Special mention was made of the completion of the Recovery Fund on August 31st, with the Prime Minister recalling that in July 2020, Greece secured “the largest package, as a percentage of GDP, in the European Union” — totaling €36 billion in loans and grants. In reviewing how these resources were utilized, he pointed to the digitization of public services, the completion of the National Land Registry, interventions in the energy market and renewables, electric buses, the Thessaloniki Metro and its extension to Kalamaria set to open on Thursday, and the national preventive health screening program. Of the 136 reform milestones, only two remain to be completed, according to information presented at the Cabinet meeting. The Prime Minister also noted that in 2028, Greece will be the first country to receive the new Canadair firefighting aircraft.
According to the Ministry of National Economy and Finance, all outstanding investment and reform milestones are expected to be finalized and delivered by the end of this week, with the goal of fully absorbing all €36 billion of the national allocation by the end of the year.
Originally published in Apogeumatini
