New budget with high growth and a clear message of fiscal discipline

Strong growth astatine levels supra 2% and a superior surplus of 2.4% volition beryllium forecast successful the draft budget for 2026, expected to beryllium submitted to parliament connected October 6.

This volition beryllium followed by the submission to the Parliament of the caller taxation measure which volition see each the reliefs and immunodeficiency announced by Prime Minister Kyriakos Mitsotakis from the level of the TIF. Following the TIF’s announcements connected the usage of the 1.7 cardinal euro fiscal abstraction for the payment of society, with a absorption connected the mediate class, the economical unit volition nonstop a wide connection done the caller fund that successful 2026 and the pursuing years the argumentation of ensuring superior surpluses done precocious economical maturation rates and interventions to trim taxation evasion volition continue. The purpose is to trim nationalist indebtedness to levels beneath 120% of GDP astatine the opening of the adjacent decennary erstwhile it volition beryllium repaid aboriginal by 2031, 10 years earlier than primitively planned, the archetypal memorandum.

In 2025, for yet different year, the superior surplus volition transcend not lone the archetypal people of 2.4% but besides the higher updated projections that enactment it astatine 3.2% of GDP. Already successful the 8 months from January to August the superior surplus amounted to €8.5 cardinal against a fund people of €4.929 billion. Newer estimates rise this year’s superior surplus to levels supra 3.5%. This means that the country’s fiscal show this twelvemonth volition again beryllium overmuch higher than the archetypal targets.

The maturation complaint this twelvemonth is expected to determination supra 2% significantly. The semipermanent forecasts GDP maturation successful 2025 of 2.3%, portion the Bank of Greece precocious updated its estimation to 2.2%. The resources of the Recovery Fund are captious for the continuation of the precocious maturation rates of the Greek economy. The programme is expected to beryllium completed successful September 2026 with the completion of each milestones and the outgo of tranches. In November, the 7th petition is expected to beryllium submitted to the EU for €3.5 cardinal of financing. Of this amount, €1.7 cardinal are grants and €1.8 cardinal are loans. This petition is linked to the implementation of circumstantial milestones related to reforms and projects. The 8th and 9th requests volition beryllium submitted successful 2026.

Reducing nationalist indebtedness is simply a cardinal precedence for the government’s economical unit and volition beryllium reflected successful the caller budget’s projections. With the purpose of repaying the loans of the archetypal memorandum by 2031 alternatively of 2041, the Finance Ministry volition marque different aboriginal repayment of €5.29 cardinal adjacent December. The forecast for the way of nationalist indebtedness this twelvemonth is that it volition decelerate to levels of 145% of GDP to autumn further successful 2026 to beneath 140% of GDP.