By Yannis Anifantis

Him state budget for 2025 together with all the accompanying reports was submitted to the Parliament by the Minister of Finance Kostis Hatzidakis.

This will be followed by the debate on the state budget in the competent committee of economic affairs, in the coming week of November 25, 26 and 27.

The Plenary debate will begin on Wednesday 11 December and culminate with speeches by political leaders and the vote on Sunday 15 December.

The budget text incorporates tax reductions and support measures totaling 1.1 billion. euros, among which the new reduction of social security contributions by one unit from 2025, the abolition of the gratuity fee for freelancers paid in blocks and new increases in the salaries of civil servants from April.

The budget envisages a primary surplus of 2.4% of GDP in 2025 with a deficit of 0.6% of GDP, one of the lowest in the Eurozone but also almost triple the Eurozone growth rate of over 2 both this year and next year.

Despite the tax reductions, tax revenues appear to have increased by 1.8 billion euros this year, while it is predicted that they will increase by an additional 2 billion euros in 2025.

K. Hatzidakis: With fiscal prudence and growth, we are raising Greece higher

The Minister of National Economy and Finance, Kostis Hatzidakis, accompanied by the Deputy Minister of National Economy and Finance, Athanasios Petralia, today presented the State Budget for 2025 to the Parliament.

On the subject, Mr. Hatzidakis made the following statement: “The 2025 Budget reflects that fiscal prudence and growth are harmoniously combined in Greece.
On the one hand, the State Budget records that in 2025 Greece will have the fourth highest primary surplus in the entire European Union, a total deficit that will reach zero and the fastest rates of public debt reduction in all 27 member states of the EU.

With lower taxes we have more revenue. This is due to the combination of growth – as in our country we have much more important growth than the average of the eurozone – and the initiatives to limit tax evasion which already have tangible results.

At the same time, we continue our pro-investment policy. Investment and exports will increase in 2025. So will public investment, which has more than doubled in 2024 compared to 2019 and will increase even more next year. Unemployment will fall to pre-crisis levels.

I also underline that in relation to 2019 in 2025 the expenditure on Health will have increased by 74% while the expenditure on Defense by 73% underlining the relevant priorities of the Government. At the same time, the expenses for the protection of the environment in relation to the previous years increase significantly in the 2025 Budget because it is a matter of absolute priority for the Government to protect our natural wealth, as well as the protection from the consequences of climate change.

In a few words, the 2025 Budget is a Budget which, by combining fiscal seriousness with economic development, responds to national and social priorities, heals the wounds of the crisis of the past decade and contributes to our country rising even higher!”

THE Deputy Minister Mr. Petralias made the following statement: “A little while ago the 2025 Budget was tabled in the Hellenic Parliament. I would like to mention that – as it is a great honor for me, it is the 6th Budget that I participate in writing – the 2025 Budget has nothing to do with with 2019 or 2020, as it finds an independent, unsupervised – without that meaning without goals – a country which has received investment grade, with healthy public finances, much lower debt and – if you like – a much bigger country as GDP in 2025 will have grown by 62 billion. or 34% compared to 2019.

As in the draft Budget, the growth rate is expected to rise to 2.2% this year and 2.3% in 2025 and the primary surplus to form 2.5% this year and 2.4% of GDP next year.

The 2025 Budget includes all the interventions that have been announced, including those presented at the International Exhibition of Thessaloniki and afterwards. The new permanent fiscal measures result in an additional fiscal cost in 2025 compared to 2024 of around 1.1 billion. euros and focus on supporting disposable income, boosting investment and innovation, addressing the demographic and housing issue as well as addressing the challenges of climate change.
The calculated increase in the primary expenditure index in 2025 amounts to 3.6% with the objective you know from the Medium Term to be 3.7%.

In this context, the debt is expected to decrease from 163.9% in 2023, to 154% in 2024 and further to 147.5% in 2025. That is, by 10 and 6.5 points respectively in 2024 and 2025.

Finally, despite the external turmoil caused by geopolitical developments, the Greek economy appears strong and resilient. Our concern is to keep the country on this stable and positive course, which is the only basis that enables us to improve the real income of citizens.”