Maintaining fiscal stability, further tax cuts for consistent taxpayers focusing on the middle class and faster absorption of the recovery fund’s funds for the implementation of critical reforms and investment are the Ministry of Finance’s key priorities for the next two years.

The change in the leadership of the finance ministry with the placement of Mr. Pierrakakis At the helm of the economy, it does not change the main goals of the government’s economic policy, which will continue to be based on the strong dynamics of the Greek economy, the over -performance of the budget and the great opportunity for the country the 36 billion euros of the national program of Greece 2.0.

The Treasury has a critical semester ahead of which dozens of milestones and targets will have to be fulfilled in order to achieve the disbursement of additional resources exceeding 9 billion euros and relate to the 6th and 7th installment of the recovery fund. This is a crucial step to win the big national bet on the full absorption of Greece’s 2.0 funds by mid -2026. Until then our country should have achieved the remaining 18 billion -euro absorption as 18 billion euros have already been collected from the fund. It is a prerequisite, from today until June 2026, to complete the implementation of 240 remaining mountains to complete the program.

The budget over -reward in January is also overcoming this year’s primary surplus target, as happened last year, creating the additional fiscal space for further tax cuts announced by the government. This particular positive development comes to add the Commission’s plan for the defense spending clause from the deficit of members. The final proposal of the Commission is to be announced on March 19, so the exact percentage of defense spending will be clear from the deficit. In any case, with this exception, Greece will benefit almost 3% of GDP on equipment programs. The profit will be the significant expansion of fiscal margins for this year and in the coming years that will be used to return to consistent taxpayers and other wider categories of citizens the dividend of the development of the Greek economy.

On the basis of these data, the government is already planning the agenda of new tax breaks that the prime minister is expected to announce in TIF in September. Decisions are expected to be finalized in the coming months after “locking” – on the basis of the Commission’s decisions on defense spending and final estimates of the primary surplus of 2024 – the budgetary margins that will “fund” the new reductions.

Among other things, the government’s plans for changes in taxation include:

  • The implementation of a new tax scale with rates that will lead to resolution for incomes of up to 40-50,000 euros. These are income that defines the middle class.
  • The reduction of living documents
  • Further reduction in contributions for employees and businesses, in addition to the scheduled reduction by 0.5% announced for 2027.

Additional interventions for a new reduction in ENFIA as well as a reduction in independent rental taxation are being considered.