ATHENS, Sept 9 (Askume) – Greece will spend an extra 3.5 billion euros ($3.9 billion) on pensions, wage rises and defence next year, Finance Minister Kostis Hatzidakis said on Monday.
Hatzidakis detailed the fiscal plan announced by Greek Prime Minister Kyriakos Mitsotakis over the weekend , which also includes cutting social security contributions and raising the minimum wage.
“We are able to do this because our growth rate is very strong, even higher than the euro zone average,” Hatzidakis told a news conference.
Mitsotakis said during his annual economic policy speech at the Thessaloniki trade fair in northern Greece that Greece will increase pensions by 2.5% in 2025 and raise the monthly minimum wage to offset a rise in the cost of living for families.
Greece is still recovering from a debt crisis that destroyed nearly a quarter of its economic output between 2009 and 2018 and prompted repeated austerity measures including wage and pension cuts.
But its public finances have been steadily improving in recent years, leaving some room in the budget for wage increases. The Greek economy is expected to grow 2.5% this year and maintain a similar level in 2025, which would be higher than the euro zone average.
Earlier on Monday, two government sources told Askume that Greece plans to continue repaying its bailout loans promptly, benefiting from economic recovery and an underlying budget surplus.
(1 USD = 0.9042 EUR)
