There is no time to waste for the new ministers who will be called upon to start implementing measures that will contribute to the support of workers and pensioners and which will actually begin to unfold throughout the four-year period.
A significant part of the measures may begin to be implemented towards the end of the year, however, the relevant preparation should be concluded by the end of summer or early autumn at the latest as they should be included in a relevant bill.
The possibility of new interventions cannot be ruled out provided that there is additional fiscal space. And this is not at all unlikely as natural gas prices remain at much lower levels than those estimated in this year’s budget, which is 120 euros/MWh.
What is planned for pensioners:
· a new increase in pensions by 3.4% or even higher as of January 2024.
· an extraordinary financial support for low-income pensioners at the end of the year.
· a further reduction below 30% of the withholding rate for working pensioners with the aim of providing an additional incentive.
Moreover, public sector employees are expected to see an increase in their salaries in 2024.
For workers in the private sector, the minimum wage will gradually increase to 950 euros over the next four-year period from 780 euros.
The tax-free threshold is also expected to increase by 1,000 euros for families with children.
The “driving force” for the financing of the majority of these measures is the high growth rates that the Greek economy is estimated to record in the coming years. According to the forecasts of the Stability Program sent in April to the Commission, the Greek economy will grow 2.3% and 3% in 2024 and 2025, while the primary surplus will exceed 2% of GDP as of 2024.
