Greek Prime Minister Kyriakos Mitsotakis highlighted the completion of the Thessaloniki Metro expansion to Kalamaria alongside new social welfare measures covering pensions, grocery prices, and school canteen standards in his weekly policy update published on Facebook on Sunday.
The announcement, delivered ahead of the autumn political and economic season, detailed infrastructure milestones in northern Greece together with targeted financial relief for households facing back-to-school expenses and rising living costs.
Thessaloniki Metro Extension Completed
Mitsotakis said that August marked the official delivery of the metro extension to Kalamaria, describing the project as a critical milestone for Greece's second-largest city. He noted that the metro system had remained a major pending issue for Thessaloniki for four decades until his government opened the main trunk line in 2024, resolving years of delays and public skepticism.
The Thessaloniki Metro is an underground rapid transit system built to serve the metropolitan area of Thessaloniki, the regional capital of Central Macedonia in northern Greece. Construction began in the 2000s but suffered repeated suspensions caused by financial crises, contract disputes, and major archaeological discoveries beneath the urban center. The opening of the main line in late 2024 marked the city's first operational urban rail network, with the Kalamaria branch expanding transit access into the southeastern suburbs.
According to Mitsotakis, delivering the Kalamaria extension fulfills one less outstanding obligation owed to the residents of the northern port city, integrating key residential neighborhoods into the new transport grid.
Pension Cuts Repealed for Thousands
Turning to social policy, Mitsotakis announced the completion of new survivor pension payments following legislative changes introduced in July. The measure permanently abolishes pension reductions originally imposed under earlier bailout-era legislation passed by the Katrougalos and Tsipras administration.
More than 8,500 beneficiaries have seen their survivor pensions fully restored under the new payout system. In addition, approximately 75,000 pensioners will not be required to repay any retroactive sums to the state. The updated legislative framework also protects 122,000 individuals who receive two national pensions, alongside children who have lost both parents.
The Katrougalos law, enacted in 2016 during the tenure of former Prime Minister Alexis Tsipras and Labour Minister George Katrougalos, overhauled Greece's pension system during the international financial bailouts. The law introduced recalculations and caps on survivor benefits that sparked years of legal challenges and political controversy across the country.
Price Cuts on Basic Consumer Goods
The prime minister also outlined government measures aimed at reducing market prices for essential consumer items, including food products, household necessities, and school supplies. Price reductions ranging between 5 percent and 7 percent are set to take effect from Monday for a duration of two to four months.
Mitsotakis said that while the temporary discounts would not resolve every financial pressure affecting household budgets, they offer tangible relief to families during the expensive back-to-school shopping season.
Greece has experienced persistent inflation on food and retail items over recent years, mirroring wider European cost-of-living challenges. Government interventions have previously included monitored basket programs and profit margin caps on essential retail goods to limit price surges for low- and middle-income consumers.
Nutritional Overhaul for School Canteens
Alongside retail discounts, new regulations governing school canteens take effect for the upcoming academic year. Canteens will be restricted to selling products from an approved list that meet strict nutritional criteria.
Under the new rules, school canteens must stock more fresh fruit, dairy products with no added sugar, and healthier sandwich options. Soft drinks and processed meats have been removed from canteen shelves entirely. Mitsotakis said daily habits are formed through routine choices and emphasized that schools have a duty to set the best possible health example for children.
School canteens across Greece operate under ministry-mandated guidelines to regulate youth nutrition and combat childhood obesity rates. The new mandate enforces stricter controls as public education institutions prepare for the national return to classes in September.
