Greek opposition criticizes Mitsotakis over 120-instalment debt plan and fuel relief

Cabinet announcements on debt and servicers

Prime Minister Kyriakos Mitsotakis presented a package of economic interventions during a cabinet meeting on 30 September 2026. The measures expand the existing public debt repayment framework from 72 instalments to 120 instalments, offering individuals and businesses longer schedules to settle outstanding arrears with tax and social security authorities. Alongside tax debt adjustments, the government introduced regulatory enforcement actions against private loan servicing companies. Under the new rules, authorities can impose administrative fines of up to 500,000 euros on servicers that breach agreed debt settlement plans with borrowers. The framework also cancels property seizures and foreclosures for compliant debtors facing servicer violations, while establishing a requirement for borrowers to pay a 15% advance to suspend scheduled auctions.

Opposition challenges economic policy record

The cabinet announcement drew swift pushback from the opposition PASOK-KINAL party, which accused the government of reversing its position on private debt. Party spokesperson Kostas Tsoukalas argued that the new provisions directly contradicted the stance taken by cabinet ministers earlier in the month. On 2 September 2026, Minister of National Economy and Finance Kyriakos Pierrakakis responded to PASOK proposals by asserting that Greece ranked below the European Union average in overdue debt metrics. Pierrakakis also maintained that the existing extrajudicial debt settlement mechanism was generating impressive results, accusing the opposition of building its political presence on false impressions. Tsoukalas noted that 28 days later, the administration adopted expanded debt instalment plans that it had previously dismissed as unnecessary.

In a state of panic, Kyriakos Mitsotakis unraveled the sweater of his economic policy success story in the cabinet today.

Dispute over interest write-downs and foreclosure protections

PASOK argued that offering 120 instalments without haircuts on accrued interest and penalty surcharges leaves the core financial burden unresolved. The opposition contended that heavy interest charges that originated during Greece's economic crisis continue to drain household and corporate budgets without providing genuine relief to the market. Tsoukalas also challenged the administration's 15% cash down payment requirement for pausing property auctions, arguing that bona fide borrowers cannot readily assemble such capital within tight statutory deadlines of just a few days. As an alternative, PASOK reiterated its proposal to reinstate statutory protections for primary residences modeled on Law 3869/2010. The party also demanded that participation by institutional creditors in the extrajudicial settlement mechanism be made legally mandatory rather than voluntary.

Clashes over fuel pricing and excise duties

The confrontation between the government and PASOK also centered on surging energy costs and fuel taxation. While the cabinet approved an increase in subsidies for diesel fuel, PASOK described the package as temporary narrative management after leaving citizens waiting for 12 days. Tsoukalas called Mitsotakis a tax-obsessed leader who stubbornly refuses to cut the Special Consumption Tax on fuel, arguing that elevated excise rates continue to deplete household incomes. The opposition further criticized the government for deferring structural tax relief decisions to European Union discussions in Brussels rather than enacting immediate domestic tax reductions to lower retail fuel costs across the country.