Greece’s cabinet meets on Thursday in a tense political climate, with ministers set to discuss a minimum wage increase to above 900 euros per month and review foreign policy risks to the economy, officials said.
Foreign Minister George Gerapetritis will brief the cabinet on international developments and war-related risks, while Labour Minister Niki Kerameus is expected to present a proposal to raise the minimum wage as part of a plan to reach 950 euros by 2027.
The meeting comes as a wiretapping scandal has returned to the spotlight and a trial over the Tempe rail disaster begins, adding to political pressure on the government.
Officials said the administration aims to project a more positive economic narrative, arguing it is delivering on key commitments despite uncertainty.
Two labour market targets set for 2027 have already been met, they added, with unemployment falling to 7.7%, below 8%, and the average monthly salary exceeding 1,500 euros.
The government is proceeding cautiously, seeking to balance higher wages with companies’ ability to absorb increased costs without cutting jobs.
Looking ahead, officials said they aim to further reduce unemployment and sustain wage growth in the run-up to the 2027 elections.
“Ultimately, everything will be judged by the economy and the government’s ability to support the middle and lower income groups,” a government source said.
Ministers are also expected to assess progress on milestones linked to the EU’s Recovery and Resilience Fund due by Aug. 31, as well as a draft law on digital governance implementing EU Regulation 2024/1309 to lower the cost of developing gigabit communications networks.
Officials view the wage increase as key to boosting household incomes and underpinning economic stability, while stressing a gradual approach to avoid disruption for businesses.