The bill of the Ministry of National Economy and Finance on the reform of the Financial Management Framework is put in public consultation. The consultation will take two weeks so that the bill then enters Parliament to vote.

The bill entitled “Ensure Financial Balance: Reform Framework for Financial Management – Amendment Law 4270/2014 on the incorporation of Council Directive (EU) 2024/1265 of April 29, 2024 on the amendment of Directive 2011/85/EU on A breakthrough for fiscal policy, modifying the basic principles of public accounting and the current framework of rules and procedures for fiscal management.

In this context:

  • The general principles of fiscal management are amended by incorporating the net expenditure rule, as provided for in the new European framework for economic governance. In particular, the costs of the state and general government bodies should not be increased faster than a particular rate of change, as specified in the four-year medium-term budgetary-acting plan, regardless of the course of public revenue that is not linked to specific policy measures.
  • In addition, the additional provisions for the budget deficit that must remain lower than the 3% of GDP reference price and the general government’s primary balance of the general government that must be surplus
  • Based on the new European Framework of Economic Governance, cases of permissible deviations from the rule of net expenditure (general and national escape clause) are introduced.
  • The architecture of the new fiscal management is based on a medium-term budgetary plan (MSS), which will be compiled every four years and will reflect the budgetary budgetary objective of the country’s net primary expenses. At the same time, rules for ensuring fiscal stability and corrective mechanism for their breach of their breach are established
  • The objectives set by the MDC for the rate of increasing net costs, since they are accepted by the Council of the European Union, are binding both for the annual budget and for multiannual budget planning.
  • Now, prior to the submission of the state budget, a year -long fiscal planning will be drawn up annually, so that public information on medium -term planning
  • In addition, the forecasts of the Directive to strengthen the role of the Greek Financial Council, which is upgraded to an institutional, organizational and operational level, are incorporated.

In addition, the new bill includes the new budgetary measures for citizens and investments announced in April 2025:

  • Return of a rent annually for the main and student residence
  • Annual financial support of 250 euros for retirees, uninsured elderly and people with disabilities
  • Extension of the Reduction of Income Tax Reduction for Building Upgrading Expenditure for the years 2025 and 2026
  • Complementary budget for the aid of the National Public Investment Program of EUR 500 million

In addition to the new bill:

  • The “National Benefit Register” is recommended which will gather in a single and cohesive register the benefits of money and in kind granted by the State to natural persons and productive utilization of public data.
  • The annual increase in pharmaceutical expenditure provided for in the recovery fund is expanded by EUR 100 million per year for the years 2026-2030, with the aim of maintaining Clawback returns.
  • The competence for the National Procedure Simplification Program and the National Register of Administrative Procedures “Mito” is amended, for which the Ministries of National Economy and Finance and Home Affairs will now
  • Settings are introduced to enhance the effectiveness of budget controls by updating the relevant methodology and procedures followed
  • Legislative vacuum is covered in public -government officials with disabilities in need of attendant and/or aid dog
  • The motivation for the achievement of budgetary objectives is extended to the Hellenic Financial Council, and arrangements are introduced for the postings of employees to the Directorate of Action Control of the recovery and resilience mechanism and the Public Debt Management Organization (ODD).

10 +1 questions and answers about the bill

1. What is the basic change introduced?

The general principles of fiscal management are amended and the rule of net expenses is incorporated. That is, state spending should not be increased faster than a particular rate of change, as specified in the four-year medium-term budgetary-dilatic plan, regardless of the course of public revenue that is not linked to specific policy measures.

2. What are you regarded as state costs?

The total costs of the state and general government bodies, including Local Authorities, Social Security Organizations and State Legal Entities, deducting interest, expenditure funded by European programs (NSRF and recovery fund) and extraordinary expenditure.

For our country, net primary spending is estimated at around € 100 billion. For 2026, the target set by the Medium Term, as approved by the European Council, stipulates that above 3.6%cannot be increased. So net costs can increase to around € 3.6 billion in 2026 compared to 2025. It is noted that I am further increased beyond 3.6 billion and up to 0.3% of GDP is possible if the net costs of previous years are lower than the limits set.

3. If we have more revenue, we can’t change the target of expenditure?

Only if the additional revenue relates to active political growth measures, such as the fight against tax evasion. If it is revenue that comes, for example, from a good year in tourism or from increasing consumption, the target of expenditure cannot change.

4. If you get smaller expenses?

You can use the space in the coming years, but up to 0.3% of GDP in addition to the annual goals.
This is exactly what happened with the best primary result of 4.8% in 2024. Because a fiscal space was created by the measures to combat tax evasion, we were able to proceed with additional permanent measures of 1.1 billion euros from 2025 (a rented renum annually, a 250 -euro allowance to retirees and a € 500 million increase). In addition, we have the ability to exceed 3.6% and 2026, up to 0.3% of GDP.

5. In a good year for the economy, the extra revenue is going since they can’t be returned to society?

In times when the economy best performs the additional revenue, they will have to either repay debt or be saved.

6. And in a bad year? Should cost savings be taken?

No. We will be able to continue to increase the costs of the money saved at the same rate, so that we can exit faster than any crisis.

7. If a country exceeds the expenditure rule, does it have sanctions?

Exception is only for emergencies related to emergencies, such as a pandemic or large area of ​​natural disaster. In other cases of exceeding expenditure, the excessive deficit procedure is accompanied by restrictive policies.

8. The old rule dictated that the deficit should not exceed 3% no longer apply?

This provision is still in force. The fiscal deficit must remain lower than 3% of GDP and the fiscal position of the general government’s primary balance that must be surplus.

9. The escape clause is an exception to the rule?

Yes. Greece has activated its request for the exemption of defense spending from targets. It is a process that allows member states fiscal flexibility for defense investments without these costs being calculated on budgetary restrictions.

10. Whenever the expenditure goals are determined?

The architecture of the new fiscal management is based on a medium-term-budget structural plan (MSS), which will be compiled every four years and will reflect the binding objective of the country’s net primary expenses. Now, prior to the submission of the state budget, a year -long fiscal planning will be drawn up annually, so everyone knows the medium -term planning, which will move within the limits set at four -year MDS.

11. What does the bill on the Hellenic Financial Council provides?

It is envisaged to strengthen the role of the Greek Financial Council, which is upgraded to the institutional, organizational and operational level.