Greek Prime Minister Kyriakos Mitsotakis announced that a tender for the redevelopment of the Thessaloniki Railway Station will launch by the end of 2026.
In his weekly review published on Facebook on Sunday, August 30, 2026, Mitsotakis outlined key infrastructure projects, economic interventions, and social policy updates across Greece.
Thessaloniki, the second largest city in Greece, had waited four decades for its metro system before the government delivered the main trunk line in 2024. In August 2026, authorities handed over the Kalamaria extension to local residents, adding five new stations and 4.78 kilometers of track to complete a system of nearly 15 kilometers.
The unified, fully automated network connects Mikra to the New Railway Station in approximately 25 minutes. Mitsotakis said the extension serves roughly 63,000 daily boardings and removes an estimated 12,000 private vehicles from city streets each day, providing significant environmental benefits. Preliminary study works for further metro extensions into western Thessaloniki are set to begin immediately.
Alongside the metro expansion, the government has launched several other urban initiatives in Thessaloniki. The redevelopment of the Thessaloniki International Fair site was tendered during the summer as promised, creating a 120-dunam metropolitan park aimed at transforming the city center.
The government is also transferring public real estate to the Municipality of Thessaloniki to construct 600 new parking spaces and is granting the Agios Minas building complex to the municipality for reuse. Additional projects include developing the archaeological site at Toumba Hill, creating green space and sports facilities on the Agia Foteini property, building a new 2,000-seat indoor sports arena at the Aristotle University of Thessaloniki, upgrading 12 university building complexes, and assigning the Natural Environment and Climate Change Agency exclusive responsibility for cleaning the Thermaic Gulf.
Western Macedonia Energy Transition
Turning to regional development, Mitsotakis described his recent visits on Friday to Florina and Kozani, where he inspected the new combined heat and power unit operated by the Public Power Corporation in Kardia.
The Public Power Corporation is implementing a 5.75 billion euro investment plan in Western Macedonia through 2030. High-capacity photovoltaic parks are already operating on former lignite mining fields, while projects for energy storage, green hydrogen, and a planned Mega Data Center in Agios Dimitrios continue to progress.
The energy projects are estimated to generate more than 1,800 jobs during construction and approximately 700 permanent jobs during operation, with the data center expected to create further employment. Mitsotakis noted that moving away from the lignite-based productive model that defined Western Macedonia for decades is challenging, but stated that the goal is to provide local residents with greater security and optimism.
European Recovery Fund Results
The implementation period for the European Recovery Fund, known as Greece 2.0, officially concludes on August 31, 2026, five years and five months after its launch on March 31, 2021.
While the initial plan projected a 7 percentage point increase in real gross domestic product, 180,000 new jobs, and a 20 percent rise in investments, actual outcomes exceeded forecasts. Over the implementation period, real gross domestic product grew by 11 percentage points, 550,000 new jobs were created, and total investments rose by 60 percent.
The program included 74 structural reforms designed to modernize state operations. Key measures included digitizing government services, linking hundreds of thousands of cash registers to point of sale terminals, reducing the value-added tax gap, implementing the Digital Work Card, accelerating judicial processes, completing the National Land Registry, advancing green energy transitions, and upgrading healthcare and education facilities.
Following the conclusion of the Recovery Fund, Greece will transition to the Social Climate Fund after the European Commission approved the Greek National Plan. The plan represents the largest allocation approved under the framework so far, delivering 5.3 billion euros including value-added tax through 2032 across 25 planned interventions targeting roughly 1.5 million households and 70,000 micro-enterprises.
Beginning in 2026, the Social Climate Fund will finance social housing, energy upgrades for small businesses, social leasing of electric cars, and 211 new electric buses for Athens and Thessaloniki. Starting in 2027, the program will expand to cover residential energy upgrades, heating improvements, student dormitories, accessible transit for citizens with disabilities, and broader clean public transportation investments.
Economic Support and Education Reforms
In domestic economic policy, the government completed payments for restored widow pensions following July legislation that permanently abolished cuts enacted under the previous Katrougalos-Tsipras law. The measure restored pension levels for more than 8,500 beneficiaries and exempted approximately 75,000 pensioners from returning retroactive payments, while protecting 122,000 individuals receiving two national pensions and children who lost both parents.
A government initiative to lower prices on basic consumer items, including food, household essentials, and school supplies, takes effect on August 31. The program enforces price reductions of 5 percent to 7 percent for two to four months to provide financial relief for family budgets ahead of the new academic year.
Preparations for the upcoming school year involved appointing 5,259 permanent teachers, including 1,421 in special education, with plans to recruit approximately 36,000 substitute teachers. Under the Marietta Giannakou school renovation program, 669 schools have been renovated so far, with technical studies for an additional 500 institutions starting in September.
Educational updates also include expanding Innovation Centers from 13 to 18, establishing new Experimental and Special Schools, and updating school curricula. Starting this academic year, school canteens must restrict offerings to an approved list featuring more fruit, dairy without added sugar, and healthier sandwiches, while soft drinks and processed meats have been removed from shelves.
Industrial Rules and Upcoming Events
Applications for the Personal Assistant program for individuals with disabilities opened on August 26 and will remain open through November 27 at prosopikosvoithos.gov.gr. The program was codified into permanent nationwide law roughly a month ago, currently supporting more than 2,000 personal assistants with specific provisions for island and mountainous municipalities.
The government also enacted its third Special Spatial Framework focused on industry, replacing an outdated 2008 framework to provide clearer siting rules for factories, logistics centers, data centers, and recycling infrastructure while incorporating environmental and natural hazard protections. Mitsotakis concluded his update by noting that he will attend the Thessaloniki International Fair next week to present further policy details, skipping his regular Sunday review.
