"According to Eurostat's latest estimates for 2025, Greece has the lowest per capita GDP in purchasing power parity in the European Union, at 68% of the European average, now sharing last place with Bulgaria,” PASOK states in a press release.
“Greece’s dismal ranking at the bottom of Europe is the ultimate refutation of the narrative of an ‘economic miracle’ and strong growth. The government stands idly by as the standard of living for Greeks continues to decline; they now have the lowest purchasing power in the EU, while the cost of living is skyrocketing and households are unable to meet basic needs.
“The reality of the numbers reveals that the policy of ‘passes’ and temporary benefits is nothing more than a smokescreen concealing the deep impoverishment of society and the failure of an economic strategy that favors the few at the expense of the overwhelming majority,” he adds.
He then notes:
“In a recent report, the International Monetary Fund endorses the proposals of PASOK-Movement for Change and recommends the establishment of an automatic mechanism that would adjust tax brackets and the tax-free threshold based on inflation, so that citizens do not pay more taxes when they receive nominal pay raises that merely cover the cost of living. The establishment of an automatic mechanism to adjust tax brackets based on inflation is a critical step toward tax fairness.
By replacing piecemeal policy decisions with fixed rules, we ensure that wage increases covering the cost of living will not be “eroded”by automatic tax hikes. Thus, tax policy ceases to be a tool of petty politics and provides citizens with the necessary security to plan their finances. With Greece now ranking last in the EU in terms of purchasing power, the government’s refusal to adopt this mechanism constitutes a deliberate choice to impoverish citizens and bleed their income dry.
PASOK – Movement for Change proposes indexing the tax brackets as a central pillar of a fair tax policy, in order to protect the real income of workers and retirees from the “inflation tax.” The proposal provides for the automatic adjustment of tax brackets and the tax-free threshold in line with the inflation rate, so that nominal wage increases do not lead to an artificial rise in the tax burden. The aim of this mechanism is to halt the impoverishment of the middle class and vulnerable groups, ensuring that households’ purchasing power is not eroded by the combination of high prices and high tax rates.