The Minister of National Economy and Finance Kyriakos Pierrakakis and Deputy Minister Thanos Petralias presented today (Thursday, November 27, 2025) to the Cabinet the 2026 Budget and the Multi-Year Fiscal Plan 2026-2029. It should be noted that the Multi-Year Fiscal Plan is being drafted for the first time, in accordance with law 5217/2025 (A’ 120), which incorporated into the national legal order Directive (EU) 2024/1265 of the Council of April 29, 2024 regarding requirements for fiscal frameworks of member states.
The MYP is approved by the Cabinet before the state budget vote and sets specific fiscal targets over a four-year multi-year horizon. In this context, the first Multi-Year Fiscal Plan covers the period 2026-2029 and presents the fiscal estimates and commitments undertaken for this period, which are consistent with the limits provided for in the current Medium-Term Fiscal-Structural Plan 2025-2028, submitted in October 2024 and approved by the European Council.
The MYP 2026-2029 includes all fiscal interventions that have been legislated or announced for the 2026-2029 period. The cost of interventions amounts to €3.04 billion for 2025, increasing to €5.94 billion in 2026 (an additional €2.9 billion compared to 2025), to €7.94 billion in 2027 (an additional €2 billion compared to 2026), to €9.01 billion in 2028 (an additional €1.07 billion compared to 2027) and to €10.1 billion in 2029 (an additional €1.09 billion compared to 2028).
The interventions for 2026 are reflected as announced in the framework of the 2026 Budget. Some of the interventions concerning 2027 and subsequent years include:
· The complete elimination of the offset of pension increases with the personal difference of pensioners from 2027,
· the complete elimination of property tax for main residences in settlements with up to 1,500 inhabitants from 2027,
· the significant tax reduction that freelancers will have in the income tax settlement of tax year 2026 in 2027 declarations,
· the reduction of insurance contributions by an additional half unit from 2027 as announced,
· the significant reduction that property owners will have in the income tax settlement of tax year 2026 in 2027 declarations from the property tax reduction,
· the income tax exemption for institutions and bequests from tax year 2026 which will be reflected in 2027 declarations,
· the annual increase of public employee salaries in proportion to minimum wage increases,
· the annual increase of pensions in proportion to the growth rate and inflation,
· the significant annual increase of the National Public Investment Program from €3.3 billion in 2026 to €3.6 billion in 2027, €3.9 billion in 2028 and €4.0 billion in 2029.
Real GDP estimation
In the Medium-Term Fiscal-Structural Plan (MTS) submitted in October 2024, the estimated growth rate of real GDP was 2.0% for 2026, 1.5% for 2027, 1.3% for 2028 and 0.4% for 2029. These
forecasts have been revised upward to 2.4% (+0.4%) for 2026, 1.7% (+0.2%) for 2027, 1.6% (+0.3%) for 2028 and 1.3% (+0.9%) for 2029. The upward revision has been contributed to by policy measures announced both at the Thessaloniki International Fair and in April 2025 which are being implemented, the allocation of increased resources for public investment in the coming years compared to MTS forecasts, and the promotion of structural reforms that upgrade the medium-term prospects of the Greek economy. It is noted that these estimates take into account the completion of the Recovery and Resilience Fund within 2026 and do not include possible new interventions to be announced for the years 2027-2029.
Regarding inflation, it is expected to be in the range of 2.2%-2.3% in the period 2026-2029 and average annual unemployment to decline to levels below 8% by the end of the period.
The primary result of the state budget is estimated at 2.8% for 2026 and 2.7% for the period 2027-2029, while particularly significant is the projected rapid de-escalation of debt from 145.9% in 2025 to 119% in 2029.
Attached:
(a) the Multi-Year Fiscal Plan 2026-2029 (in PDF format & Word format)
(b) the presentation to the Cabinet of the 2026 Budget and the Multi-Year Fiscal Plan 2026-2029. Here is the PowerPoint of the MYP 2026.
