Greece's Ministry of National Economy and Finance published Minister Kyriakos Pierrakakis’s parliamentary speech on the bill to ratify the 2026 State Budget, setting out the government’s macro-fiscal projections and a policy package centred on tax reductions, digital tax administration and higher investment. The budget projections include a primary result of 3.7% of GDP in 2025 and 2.8% in 2026, with the general government overall balance at 0.6% in 2025 and -0.2% in 2026. Growth is projected at 2.2% in 2025 and 2.4% in 2026, investment growth at 10.2% in 2026, unemployment at 8.6% and inflation at 2.6% in 2025 and 2.2% in 2026. The speech also set out a declining debt path from 154.2% of GDP in 2024 to 145.9% in 2025 and 138.2% in 2026, with a stated prospect of reaching 119% by 2029. On taxation, the measures described include a two percentage point cut in income tax rates for income between EUR 10,000 and EUR 40,000, a new lower rate for middle incomes, and zero income tax up to age 25 for income up to EUR 20,000, alongside higher tax-free thresholds for large families, ENFIA reductions for thousands of households, reduced presumptive-income criteria and new digital transparency tools; the Public Investment Programme is set at EUR 16.7bn. The tax package was presented as due to take effect from 1 January 2026, alongside implementation of the 2026 budget once ratified by Parliament.
Ministry of National Economy and Finance (Greece) 2025-12-12
Greece's Ministry of National Economy and Finance outlines the 2026 state budget with tax cuts, a 2.8% primary surplus target and a EUR 16.7bn public investment programme
Greece's Ministry of National Economy and Finance released Minister Kyriakos Pierrakakis’s speech on the 2026 State Budget, highlighting macro-fiscal projections and a policy package focused on tax reductions, digital tax administration, and increased investment. Key projections include a primary result of 3.7% of GDP in 2025 and 2.8% in 2026, with growth at 2.2% in 2025 and 2.4% in 2026. Tax measures include a two-point cut in income tax rates for certain brackets, zero income tax for those under 25 earning up to EUR 20,000, and enhanced tax-free thresholds for large families.