Pierrakakis: Greece is changing – From deficits to surpluses, from crisis to stability and from stability to fair distribution of growth

Greece is changing: From deficits to surpluses, from crisis to stability, and from stability to a fair distribution of growth.

This was pointed out by the Minister of National Economy and Finance Kyriakos Pierrakakis, specifying the package of 8 measures announced by the Prime Minister.

As the Minister said, of the fiscal space created by the primary surplus, about $500 million will be used to create a surplus of about $500 million. euros are returned to society. And he stressed that the surplus is not conjunctural, it does not come from over-taxation. It comes from the profound structural change in the way the economy works. He clarified that only 10% comes from indirect taxes, the rest is from growth, investment, tackling tax evasion and the digital job card.

According to the Minister, a balanced way of returning the surplus has been chosen. On a permanent basis for all those in need and as a one-off where the impact is cyclical. While, on the private debt arrangements, Pierrakakis said that “we listened to the request of citizens and businesses. It is our responsibility to give a second chance and room for accommodation.”

In conclusion, the Minister noted that “the economy is not just holding up, it is doing well. We choose to be there for every citizen, every family, every business. That is our stamp and that is the stamp we will stick to.”

Speaking about the impact on the economy of the Middle East crisis, Deputy Minister Thanos Petralias said that growth is expected to be revised to 2% this year from 2.4%, while next year it will rise to 2% from 1.7%. At the same time, inflation is forecast to rise to 3.2% this year from 2.2% and to 2.4% in 2027 from 2.2% (with oil prices at $89, as estimated by the Commission). The primary surplus will be 3.2% of GDP in 2026 and 2027, with no new measures. Nominal GDP will rise to €272.8 billion in 2027 from €261.3 billion this year, while public debt will fall to 130.3% of GDP in 2027 from 136.8% of GDP this year. While, next year co-financed MFF will rise to €7 billion from €6.35 billion.