Greece’s financial staff is expected to finalise the 2025 budget figures in the next few days, reflecting the main priorities of the economic policy for the coming year.

These are decisions in key areas of the economy that will be dictated by the government’s key political and economic priorities, including the support of the economically vulnerable, alongside the need to maintain fiscal discipline provided for by the new EU fiscal rules, the continuation of the policy reducing taxes and dealing with everyday problems.

Therefore, the new budget will have to find the right balance between the obligations to comply with the new fiscal rules that set a 3 percent limit on the growth of primary expenditure in 2025 and the need to continue the policy of supporting low incomes, as the government has already announced, alongside the further reduction of tax burdens.

The government’s “ally” is, of course, the positive developments in the execution of this year’s budget due to the increase in revenues and the primary surplus beyond the goals that have been set, which are expected to facilitate decision-making.

The main announcements on the economic policy of 2025 are expected to be made by Prime Minister Kyriakos Mitsotakis at  the Thessaloniki International Fair (TIF) in early September.

The Finance Ministry has already announced that an additional allowance will be granted to pensioners who do not receive annual increases due to personal differences. In this context, given the positive course of this year’s budget, it is expected to examine the possibility of supporting other vulnerable groups of low-wage and low-pensioners.

The fiscal targets of the new budget will be harmonized with the forecasts of the Stability and Development Program 2024-2025. It is estimated that the primary surplus for 2025 and the following years will stand at 2.1 percent of GDP. This is a condition for the further reduction of public debt, which is expected to fall this year to 143 percent of GDP.