A package of economic measures worth more than €1 billion is expected to be unveiled at this year’s Thessaloniki International Fair (TIF), according to Deputy Minister of National Economy and Finance Nikos Papathanasis, setting the stage for the government’s next round of tax and income-support measures.
The middle class, pensioners, families, young people and small and medium-sized businesses are expected to be at the center of the package, although the final mix of measures has yet to be decided.
Papathanasis made clear that the final decisions rest with Prime Minister Kyriakos Mitsotakis, but confirmed that the overall package will exceed the €1 billion threshold.
The big test after the Recovery Fund
The announcement comes at a critical moment for the Greek economy.
The EU-backed Recovery and Resilience Facility is entering its final phase, shifting attention to whether Greece can maintain its investment momentum once one of the most powerful sources of European funding begins to fade.
Papathanasis firmly rejected predictions that the end of the Recovery Fund could push the economy into recession.
“There will be no recession,” he said, arguing that Greece will continue to grow faster than the European average.
According to the figures he cited, Greek economic growth is expected to run at around 2%, compared with approximately 0.9% for Europe.
The government’s argument is that the end of the Recovery Fund should not be confused with the end of large-scale investment financing.
€23 billion for the “next day”
At the center of the post-Recovery Fund strategy is Greece’s 2026–2030 National Development Programme.
The government plans to mobilize approximately €23 billion in national resources, more than double the €10 billion initially provided under the previous programme.
The money is expected to finance projects and interventions across areas including transport infrastructure, schools and hospitals, water networks, housing, digital services, the green transition, demographic policy and energy resilience.
For Athens, the programme is intended to become one of the main bridges between the Recovery Fund era and the next investment cycle.
The message from Papathanasis is clear:
the Recovery Fund may be ending, but public investment is not.
Can Greece fill the investment gap?
That is also where the real economic challenge begins.
The Recovery Fund has become a major driver of Greek investment, financing infrastructure, energy, healthcare, digital transformation and private-sector projects.
Its completion therefore raises an unavoidable question:
What will replace that investment firepower?
The government’s answer is a combination of the National Development Programme, EU structural funds, new European financing instruments and national resources.
Whether those mechanisms can fully compensate for the gradual disappearance of Recovery Fund money will be one of the most important tests facing the Greek economy over the coming years.
Housing moves to the front of the agenda
Papathanasis also placed particular emphasis on Greece’s housing crisis, especially the shortage and rising cost of student accommodation.
According to the deputy minister, projects are underway for the construction of more than 8,000 student housing units across the country, which he described as the largest student accommodation programme ever undertaken in Greece.
The student housing allowance can also reach €2,500 per student in cases where students share accommodation.
Housing has increasingly become one of the government’s most politically sensitive economic issues as rents and property prices have put growing pressure on household budgets.
“My Home II” and thousands of closed properties
Papathanasis said approximately 14,000 homes have so far benefited from the “My Home II” programme, with the number expected to rise further before completion.
The final disbursement deadline has been extended to August 31, 2026.
At the same time, around 9,000 applications have been submitted by property owners seeking support to renovate homes that are currently sitting empty.
The objective is to bring more unused properties back onto the market and gradually increase housing supply.
The government is therefore pursuing the housing problem from both sides: helping households buy homes while simultaneously trying to increase the number of properties available for rent.
SMEs promised new access to cheaper financing
Papathanasis also rejected opposition criticism that Recovery Fund lending has disproportionately benefited large corporations.
According to the figures he cited, small and medium-sized enterprises account for roughly 60% of the number of loans issued through the Recovery Fund’s loan component.
For the next phase, he signaled additional financing instruments through the Hellenic Development Bank, aimed particularly at helping small and very small businesses obtain loans at lower cost.
Access to financing remains one of the key structural challenges facing Greek SMEs, especially those too small to tap capital markets directly.
Unemployment down, but incomes remain the real political test
Papathanasis also highlighted the improvement in Greece’s labor market, pointing to unemployment falling to around 8%, compared with levels close to 18% in the past, alongside the creation of more than 600,000 jobs over the period he referenced.
He argued that higher disposable income cannot come exclusively through government benefits.
Instead, it must also come from higher employment, wage increases and lower taxation.
That distinction will become increasingly important as the government determines how much of its available fiscal space should be used for permanent tax reductions rather than one-off support measures.
All eyes now turn to Thessaloniki
The next major economic event is therefore the Thessaloniki International Fair, where Prime Minister Mitsotakis is expected to reveal the final package.
Fiscal performance, tax revenues and European budget rules will determine how much room Athens ultimately has for additional tax cuts and income-support measures.
Papathanasis has already provided the headline number: more than €1 billion.
The political question is how that money will be distributed.
The middle class, pensioners, families, young people and SMEs have all been placed near the front of the queue.
The real test will come when the government reveals who gets the biggest tax relief, who receives direct support — and how much money households will actually see in their pockets.