Compatible with the planning of the country’s fiscal policy for the coming years are the net primary expenditure targets sent by the European Commission to Greece, based on the new fiscal framework.

This was reported by agents of the Ministry of National Economy and Finance, according to which the objectives of net primary expenditure foresee a maximum permitted annual increase of net primary expenditure in the region of 3% (on average) per year for the period 2025-2028 (it is recalled that the corresponding objective for 2024 it was 2.6%).

The targets for achieving net primary costs will be finalized after a technical dialogue with the European Commission and will be integrated into the Medium-Term Fiscal-Structural Program that will be submitted by Greece to the Commission in the autumn.

Overall, the same factors point out, the above objectives are compatible with the planning of the fiscal policy for the coming years and reflect the significant progress that Greece has achieved in all the variables that determine the sustainability of the Greek public debt: It is characteristic that the period following the outbreak of the pandemic (i.e. the three-year period 2021-2023) the debt-to-GDP ratio in Greece showed a reduction that is a record in the history of the eurozone.

At the same time, Greece has returned to a healthy primary surplus, has regained investment grade – thus significantly reducing the cost of public borrowing – and is showing a growth rate significantly higher than the European average.

These positive performances, they add, are the result of a generally successful economic policy, which allows the continuation of policies friendly to development and social cohesion.

According to the officials of the Ministry of the Interior, the government’s decision for additional measures to boost citizens’ incomes and further reduce burdens for 2025, amounting to 880 million euros, as foreseen in the Stability Program of April, moves in this context, namely:

-The reduction of insurance contributions by 0.5%, costing 225 million euros.

– The reduction, essentially abolition, of the professional fee for professionals, costing 120 million euros.

-The permanent return of the Special Consumption Tax to farmers, costing 100 million euros.

– The increase of the student housing allowance (15 million euros).

– The increase in pensions, which, based on the well-known mathematical formula, is estimated to be around 400 million euros.

-The suspension of VAT on construction, costing 20 million euros.