A series of permanent budgetary interventions for the years 2024 and 2025 include – among others – the budgetwith several significant changes being observed at the level of expense and revenue management

The final text incorporates tax reductions and support measures totaling 1.1 billion euroamong which the new reduction in insurance contributions by one unit from 2025, the abolition of the pretense fee for freelancers paid with blocks, but also new salary increases for civil servants since April.

The total cost of the interventions amounts to 1,840 million. euros for 2024, of which 1,714 million euros concern expenses and 126 million euro revenue. For 2025, costs are projected to increase by 1,115 million. euros, reaching 2,955 million euros, with 2,327 million euros to come from expenses and 628 million euros from revenue.

In particular, the main permanent fiscal interventions implemented in 2024 as well as the new ones, which will be implemented from 2025, are the following:

  • reduction from 01.01.2025, by one percentage point, of insurance contributions. In particular, this reduction is broken down into a 0.5% reduction in employee contributions and 0.5% in employer health sector contributions, with the annual net cost for 2025 amounting to 440 million. euro. It is noted that with this reduction in insurance contributions, their cumulative reduction from 2019 amounts to 5.4 percentage points (from 40.56% to 35.16%)
  • abolition from 01.01.2025 of the self-employment tax, following the 50% reduction in 2024, at a cost of 113 million euros for 2024 and 238 million euro for 2025,
  • extension of the return of the EFFK to agricultural oil for 2024 and its permanence from 2025, with a new system based on actual consumption, at a cost of 82 million. euros for 2024 and 100 million euro for 2025,
  • increase in pensions based on the rate of change of inflation and GDP, at a cost of 424 million euros for 2024 and an additional 398 million euro for 2025,
  • reform of the payroll in the public sector from 01.01.2024, which increased the salaries of all civil servants, with a special emphasis on low-paid employees, employees with children as well as employees holding positions of responsibility. The total annual gross cost (including employer contributions) amounts to 1,067 million. euro. In addition, from April 2025 there will be a new increase in the basic salaries of all civil servants, so that the entry salary in the State does not fall short of the level of the minimum wage in the private sector. The gross cost of the new intervention for 2025 is estimated in principle at 143 million. Euros approx. However, it is noted that the final cost depends on the final increase in the minimum wage,
  • increasing the income of NHS doctors by increasing their on-call compensation by 20% from 01.01.2024 at a cost of 45 million. euros as well as through the establishment from September 2024 of an increased incentive to attract and stay in problematic and barren areas, at a cost of 5 million. euros for 2024 and 16 million euros for 2025. In addition, from 01.01.2025, the independent taxation of the on-call compensation of the National Health Service doctors with a rate of 22%, at a cost of 40 million. euro,
  • increase from 2024 in special compensation for Navy ship crews on mission and for Armed Forces personnel performing special missions, at a cost of 15 million euro,
  • increase from 01.01.2025 of the compensation for the night employment of uniformed personnel (Hellenic Police – ELAS, Fire Brigade – PS, Coast Guard – Hellenic Coast Guard – LS-ELAKT, Armed Forces), at a cost of 25 million euro and
  • increase in the salaries of military school students with a total cost of 14 million euros and specifically, an increase: (a) from 165 euros to 609 euros per month of the salaries of the students of the Higher Military Educational Institutions and (b) from 125 euros to 249 euros per month of the salaries of the students of the Higher Military Schools of NCOs.

Revenue 1.881 billion euros from privatizations

At 365 billion Euros or 154% of GDP is estimated to be the public debt at the end of 2024, against 369.099 billion. euros or 163.9% of GDP in 2023, showing a decrease of 9.9 percentage points compared to 2023. For 2025, it is also predicted to be 365 billion. euros of GDP, showing a decrease of 6.5 percentage points of GDP compared to 2024, which affects the difference in the amount of GDP.

The cash revenues from privatizations expected to be realized through the TAIPED are estimated at 1.881 billion. euros and are distinguished as follows:

  • amount of 1.378 billion Euro included in the categories “Sales of goods and services” and “Other current income” (non-financial transactions), concerns concession contracts, the main one being the Egnatia Road concession contract with projected revenues of 1.35 billion. euro
  • amount of 37 million euros included in the category “Sales of fixed assets” (non-financial transactions), refers to sales of fixed assets
  • amount of 467 million euros included in category 45 “Equity securities and shares of investment funds” (financial transactions), refers to sales of shares of various companies with the State and/or TAIPED as a shareholder

At the same time, 2025 is expected to be the year of the full evolution of the EESYP (Super Fund) into a Sovereign Wealth Fund, with the completion of the absorption of TAIPED and the assets of the HFSF as well as with the activation of the new Investment Fund, whose investments are expected to be a catalyst for attracting further capital.

Interventions to deal with the demographic problem

The demographic is one of the most important problems facing not only our country, but the whole of Europe and the rest of the developed countries, to deal with which both budgetary and institutional measures are required and adopted. In particular, in addition to the permanent interventions whose implementation began within the previous four years (indicatively, payment of an allowance of 2,000 euros for each child born, an increase in the tax-free allowance for families with children, an extension of the private sector maternity allowance from six to nine months , VAT reduction on baby items, etc.), are implemented from 2024 and significant budgetary and institutional interventions are planned for 2025 in the context of the wider National Demographic Action Plan.

Indicatively, the following measures are mentioned:

  • increase of the birth allowance from 2,000 euros to 2,400 to 3,500 euros (depending on the number of children) with retroactive effect from 01.01.2023, at a cost of 90 million euros for 2024 and 45 million euros for 2025
  • increasing the maternity allowance for freelancers and farmers from four to nine months at the level of the minimum wage from 2024, at an annual cost of 43 million euro
  • increase of the tax-free allowance, from 01.01.2024, by 1,000 euros for taxpayers with dependent children, with an annual cost of 135 million. euro
  • increase of the family allowance, from 01.01.2024, by 20 euros for the first child and by 50 euros for the second and for each additional child, as part of the reform of the public sector payroll, with an annual cost of 155 million. euro
  • abolition from 2025 of the tax on health insurance premiums (15%) for children up to 18 years of age, with an annual cost of 17 million. euro
  • establishing from 2025 a tax exemption for the voluntary benefits of businesses in favor of new parents as well as for benefits related to nurseries, with an annual cost of 6 million. euro
  • increase from the new academic year of the student housing allowance for regional Universities by 500 euros, at a cost of 15 million. euros for 2025
  • creation of the new “Marietta Giannakou” program in the national branch of APDE, amounting to 250 million euros, with the possibility of attracting additional private funds, to upgrade the country’s school infrastructure

Interventions to deal with the housing problem

From 2025, the interventions are expanded and include, in addition to financial support, incentives for the utilization of empty houses. Specifically, the main interventions consist of:

  • creation of a new program “My HOME II”, with a total budget of 2 billion euros, of which 1 billion euros is financed by the loan arm of TAA and 1 billion euros from commercial banks. The interest rate will be reduced by 50% from the current commercial rate, as the amount financed by TAA will be interest-free. The age and income criteria are expanded compared to the first program “My HOME”. The program will cover individuals and couples aged 25 to 50, with an income ranging from 10,000 euros to 20,000 euros for a single person, while for a couple it increases to 28,000 euros with an additional 4,000 euros for each child.
  • creation of a new “Upgrading my Home” program with the main purpose of energy improvement of old houses. It is planned to grant a loan of up to 25,000 euros with zero interest and a total budget of 400 million. euros, of which an amount of 300 million euros is financed by the loan arm of TAA and an amount of 100 million. euros from commercial banks
  • exemption for three years from the income tax of the rental income of properties up to 120 sq.m., which will be let out on a long-term lease, while they have been vacant or on a short-term lease for at least three years. The estimated cost for 2025 amounts to 3 million. euros and for the years 2026 – 2028 to 13 million euros per year
  • ban on new short-term rentals during 2025 for apartments located in the first, second and third municipal districts of the center of Athens, due to the particularly high percentage of apartments available for short-term rentals
  • increase of the climate crisis resistance fee for short-term rentals, during the winter months from 0.5 euros to 2 euros per night, and during the summer months from 1.5 euros to 8 euros per night
  • doubling the maximum subsidy of the “Renovate – Rent” program from the amount of 4,000 euros to the amount of 8,000 euros, which will cover 60% against 40% of the costs. The program has a budget of 50 million. euros and specifically, 25 million euros for 2024 and 25 million euros for 2025
  • extension for one more year (until the end of 2025) of the suspension of VAT on new buildings, with the aim of increasing the number of houses to be made available, with an annual cost of 18 million. euro
  • utilization of State real estate through tender procedures, within the framework of the “Social Compensation” program, at the expense of the contractor, who has the possibility of exploiting the property and, at the same time, the obligation to rent it
  • increase of the housing allowance, in the context of the general reform of allowances, from the amount of 70 euros to the amount of 125 euros and to the amount of 75 euros, depending on the income scale, which is increased by 30% for each child, while at the same time introducing and targeted asset criteria