Detailing the package of eight measures announced by the prime minister, Finance Minister Kyriakos Pierrakakis emphasized that “Greece is changing: From deficits to surpluses, from crisis to stability and from stability to fair distribution of growth.” As the minister said, from the fiscal space created by the primary surplus, approximately 500 million euros are being returned to society. He stressed that the surplus is not circumstantial and does not come from overtaxation. It stems from deep structural changes in how the economy operates. He clarified that only 10% comes from indirect taxes, while the rest comes from growth, investments, tackling tax evasion, and the digital work card.
Kyriakos Pierrakakis: Breaking down the measures announced by Kyriakos Mitsotakis
According to the minister, a balanced approach was chosen for returning the surplus. On a permanent basis for all those in need and one-time where the impacts are circumstantial. Regarding private debt arrangements, Mr. Pierrakakis said “we listened to the requests of citizens and businesses. It is our responsibility to give a second chance and provide facilitation space.”
In conclusion, the minister noted that “the economy is not just holding up, it’s doing well. We choose to stand by every citizen, every family, every business. This is our hallmark and we will persist in this approach.”
Breaking down the economic impacts from the Middle East crisis, Deputy Minister Thanos Petralias mentioned that growth is forecast to be revised to 2% this year from 2.4%, while next year it will increase to 2% from 1.7%. Meanwhile, inflation is expected to rise this year to 3.2% from 2.2% and in 2027 to 2.4% from 2.2% (with oil price at $89, as the Commission also estimates). The primary surplus will be 3.2% of GDP in 2026 and 2027, without new measures. Nominal GDP will increase to €272.8 billion in 2027 from €261.3 billion this year, while public debt will decrease to 130.3% of GDP in 2027 from 136.8% of GDP this year. Next year, the co-financed Public Investment Program will increase to €7 billion from €6.35 billion.
