Greece Achieves Historic Labor Agreement: Mitsotakis Highlights First Collective Bargaining Expansion

Prime Minister Kyriakos Mitsotakis marked a landmark week in Greek politics, emphasizing a historic social agreement to expand Collective Labor Agreements (CLAs)—an unprecedented move by a center-right government in Greece.

In his weekly Sunday address, Mitsotakis highlighted achievements across labor, social welfare, and public administration. “We have reached a historic social agreement to strengthen Collective Labor Agreements after seven months of intensive negotiations with national social partners,” he stated, noting the European-aligned aim of extending coverage to more sectors and workers.

Key labor reforms underlined by the Prime Minister include:

• Raising the minimum wage from €650 to €880 and the average wage by 28%.
• Introducing the digital work card and establishing an Independent Labor Inspection Authority, enhancing compliance and enforcement.
• Legislating automatic annual wage increases to ensure employees share in economic growth.

Mitsotakis emphasized that the extension of CLAs balances worker protection with the sustainability of small and medium-sized enterprises, providing higher incomes and labor market stability.

Social and Economic Measures

The Prime Minister also detailed a series of direct social benefits:

• Permanent rent reimbursement of up to €800 for nearly 900,000 households, including supplementary support for students.
• One-time €250 payments to 1.2 million pensioners and additional support for uninsured elderly and disabled citizens.
• Agricultural subsidies totaling €3.7 billion in 2025, with a new transparent system ensuring funds go to genuine producers.

“The new system guarantees fairness, compliance with EU regulations, and ensures no euro of EU funds is lost,”Mitsotakis emphasized, underlining a commitment to sustainable economic governance.

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Broader Reforms and Modernization

Mitsotakis also highlighted significant reforms across justice, consumer protection, and public services:

• Modernization of Inheritance Law, introducing digital wills and stronger safeguards for heirs.
• Creation of an independent Consumer Protection Authority with 300 inspectors and AI-powered tools.
• Digitization of Forensic Services, accelerating case handling for critical investigations.

Other achievements include the operational success of the Thessaloniki Metro, expansion of early childhood education for 6,083 children, and support for Greek athletes, including Deaflympics medalists, through incentive programs totaling €5 million.

Analysis: Political and Social Significance

This week’s developments signal a strategic consolidation of the center-right government’s social and economic agenda:

• Labor market modernization: By extending collective agreements, the government strengthens worker protections while ensuring business stability.
• Social safety net expansion: Direct payments, rent support, and targeted agricultural subsidies aim to reduce inequality and enhance purchasing power.
• Digital governance: AI and digital tools in labor, justice, and consumer protection signal a push toward efficiency, transparency, and modernization.

In sum, Mitsotakis presents a vision of a government that combines fiscal prudence, labor reform, and technological modernization—while emphasizing social cohesion during the festive season.

Source: pagenews.gr