Greece plans to eliminate certain bank fees to help households manage the rising cost of living, Prime Minister Kyriakos Mitsotakis announced. The measures include scrapping charges for state and utility transactions and capping fees for money transfers up to €5,000 at €0.50. These steps aim to ease financial burdens on citizens while maintaining fiscal stability.
The government also intends to double the property tax on approximately 25,000 unused real estate properties held by banks starting in 2026. This initiative is designed to increase housing availability and curb high rental prices. The property tax reform complements broader efforts to address housing shortages.
The changes are expected to significantly impact banks, which generate around €200 million annually from retail transaction fees. Analysts estimate that the fee reductions could cost financial institutions tens of millions of euros. However, Greece’s major banks are in a stronger position now, having reduced their non-performing loan ratio from 45% in 2017 to under 6% and earning €3.8 billion in profits in 2023.
In addition to fee reductions, €100 million from the banking sector will be allocated to renovate and build new schools. This funding reflects the government’s commitment to channeling financial resources toward social initiatives, particularly education infrastructure, to benefit communities nationwide.
These measures come as the government faces declining approval ratings in opinion polls. By addressing economic pressures and improving public services, Prime Minister Mitsotakis aims to balance immediate relief for citizens with long-term economic growth, projected at 2.3% in the 2025 state budget approved by parliament.