Greek bonds an investment haven – Greece gains from the crisis in France

Greece Now Outperforming France successful Market Confidence, Says Budget Office Report

Greece present appears much reliable than France successful the markets, according to the Budget Office’s quarterly report, which devotes a peculiar section to France arsenic a “case study” of however governmental instability tin crook into an economical burden.

Since mid-August, governmental uncertainty successful Paris has pushed French enslaved yields supra Greek ones, with the spread persisting for implicit a month. Fitch’s downgrade of France to its lowest standing successful past further highlighted the outgo of instability. In contrast, Greece has benefited: the operation of turmoil overseas and prudent home fiscal argumentation has improved the lasting of Greek bonds, attracting much capitalist interest, superior inflows, and lowering refinancing costs.

The Office stresses that this turnaround is not accidental but grounded successful stronger fiscal show and coagulated growth. Greece is expanding astatine 2.2% this year, supra the Eurozone average, with a superior surplus of much than €9 cardinal and fixed concern up 6.5%.

Still, risks remain. Inflation is stuck astatine 3.1%, higher than the Eurozone’s 2%, eroding competitiveness. The lodging marketplace is nether terrible strain, with rising rents and constricted supply—driven successful portion by short-term rentals—posing a societal challenge, particularly for younger households. Public indebtedness besides remains the highest successful the Eurozone.

According to Professor Yannis Tsoukalas, caput of the Budget Office, the wide government’s superior surplus reached €9.2 cardinal successful the archetypal 7 months of 2025, up €2.7 cardinal year-on-year. Tax revenues roseate sharply, chiefly from income taxation (+€2.6 billion) and VAT (+€1.1 billion). He noted that exceeding this year’s 3.2% of GDP superior surplus people is “very likely.”

The system grew by 1.7% successful Q2 2025, versus 1.5% successful the Eurozone, supported by depletion (+1.1%), services exports (+3.9%) and concern (+6.5%). Employment besides strengthened, with unemployment dropping to 8.9% from 10% a twelvemonth earlier, though unit shortages persist successful nationalist administration, wellness attraction and manufacturing.

The study concludes that portion Greece’s comparative credibility has improved significantly, persistent ostentation and a deepening lodging situation endanger to undermine the country’s hard-won economical stability.