Greece's Ministry of National Economy and Finance submitted the 2026 draft state budget to Parliament’s Standing Committee on Economic Affairs, setting out updated macro-fiscal projections alongside tax, housing-related and pension measures. The draft assumes real GDP growth of 2.4% in 2026 and further debt reduction, despite heightened international uncertainty. Key projections include real growth of 2.2% in 2025 and 2.4% in 2026, nominal GDP rising from EUR 249.6bn in 2025 to EUR 260.9bn in 2026, and domestic inflation easing from 2.6% to 2.2%. Investment growth is forecast at 5.7% in 2025 and 10.2% in 2026, supported by a public investment programme of EUR 16.7bn in 2026 compared with EUR 14.6bn in 2025. The unemployment rate is projected at 8.6% in 2026. The primary balance is expected at 3.6% of GDP in 2025 and 2.8% in 2026, with the general government overall balance at 0.6% in 2025 and -0.1% in 2026, while general government debt is forecast at 137.6% of GDP in 2026. Measures referenced in the submission include an income tax reform, the gradual abolition of ENFIA for settlements with up to 1,500 residents, VAT reductions for border islands with up to 20,000 residents, lower taxation of rental income combined with an annual refund of one rent payment, reductions in imputed living expense presumptions for housing and other assets with dependent children exempt from the minimum living expense, and pension changes including a gradual end to offsetting pension increases against the personal difference and a EUR 250 payment each November for low-income pensioners and people with disabilities. The submission was accompanied by the full draft budget text, a summary of key points and ministerial statements for the parliamentary discussion phase.

Original source View in tracker