Strong growth at levels of more than 2% and a primary surplus of 2.4% will provide for the preliminary draft budget of 2026, which is expected to be submitted to Parliament on October 6th.

Will be followed by the submission of the new tax bill to which all the relief and aid announced by the prime minister Kyriakos Mitsotakis from the TIF step. Following TIF’s announcements for the exploitation of the € 1.7 billion fiscal space for the benefit of society focusing on the middle class, the financial staff through the new budget will send a clear message that in 2026 and in the coming years the policy will continue to secure primary surpluses through high growth. The aim is to reduce public debt to levels of less than 120% of GDP in early next decade when the first memorandum, ten years earlier than the original planning, has been repaid prematurely.

In 2025, for another year, the primary surplus will exceed not only the original target of 2.4% but also the higher up -to -date forecasts raised to 3.2% of GDP. Already in the eight months of January – August, the primary surplus amounted to € 8.5 billion against a target of € 4,929 billion in the budget. Newer estimates raise this year’s primary surplus to levels of 3.5%. This means that this year, the country’s fiscal service will be much higher than the original targets.

The growth rate this year expected to move to levels higher than 2% important. Long term provides for GDP growth in 2025 by 2.3% while recently the Bank of Greece has updated its estimation to 2.2%. The resources of the recovery fund are a crucial size for the continuation of the high growth rates of the Greek economy. The program is expected to be completed in September 2026 with the completion of all the mountains it provides and the payment of the installments. The 7th request for funding of € 3.5 billion is expected to be filed in the EU in November. From this amount, € 1.7 billion relates to grants and € 1.8 billion loans. This request is linked to the implementation of specific mountains related to reforms and projects. The 8th and 9th request will be made within 2026.

OR Reduction of public debt is a key priority for the financial government staff and will be reflected in the forecasts of the new budget. With the aim of paying the first memorandum to be repaid by 2031, instead of 2041, the Treasury will proceed next December to another premature repayment of 5.29 billion euros. The forecast for public debt course this year is that it will be diverged to 145% of GDP to further reduce in 2026 below 140% of GDP