Chrysostom Chufi

With almost € 7 billion support measures for the two years 2026-2027, Kyriakos Pierrakakis is submitting to Parliament in Parliament the draft of his first budget as Minister of Finance. The measures that incorporate the Prime Minister’s announcements at the TIF are “breaking” as follows:

  • € 2.7 billion for 2026
  • € 4.25 billion for 2027

Stand out: 2026 2027

  • Reforming income tax of 1.2 billion € 1.6 billion
  • The abolition of personal difference 75 million € 210 million
  • The new salary of the pure 275 million € 275 million €
  • Pension increases of 467 million € 918 million
  • Salary increases in the State 358 million € 668 million

The middle class is won, and especially families with children and under 30.

Until the last minute they went out and wrote to the Treasury and according to the latest information, GDP for this year is revised from 2.2% to 2.3% (the result of the Bad Second Quarter when the growth “brake” to 1.7%) is accelerated at 2026 to 2.4%. In absolute sizes, GDP will increase by about 10 billion euros and will reach € 260 billion.

In both years, however, Greece will grow significantly more than the eurozone for which the corresponding forecasts are just 1.2% and 1%

The primary surplus is expected in 2026 also at 2.4% of GDP. A rather conservative prediction if one thinks that its primary 2024 reached 4.8% and this year it is expected to exceed 4% this year with tax evasion reduction playing a key role. It is no coincidence that government officials and not by accident but its vice -president, Kostis Hatzidakis, speak openly about a new support package in 2026, probably in March or April. Also the result of the “savvy” surpluses is the large debt reduction, to 145% of GDP this year and to 140% in 2026 after giving early debt repayment such as December € 5.29bn from the first Memorandum.

Support measures deemed necessary as estimates Inflation is not encouraging.

This year it is expected to close at 2.6% half a unit over 2.1% of this year’s budget forecasts and in 2026 – even for 0.2 – it is projected to find 2.2% above its 2% target.

It also stands out for the…. Investments expected to be “stretched” in 2026. Investment 10.2% in 2026 versus 5.7% this year is foreseen in the draft, of course betting on the fact that the recovery fund ends in August 2026 and the pressure will not be lost in August. The successful implementation of the Public Investment Program will also play an important role of € 17 billion.

At the same time, the … traditional machine of the Greek economy, private consumption, is expected to slow down at 1.7% from 1.9% this year.