In public consultation today (5.6.2025) is set out today (5.6.2025) bill of the Ministry of Finance for the reform of the Financial Management Framework.
This bill includes measures to reinforce the rented citizens, retirees, elderly and people with disabilities (people with disabilities) and the increase in the national public investment program.
The consultation will take two weeks so that the bill then enters Parliament to vote.
The bill entitled “Ensure Financial Balance: Financial Management Framework Reform – Amendment Law 4270/2014 on the incorporation of Council Directive (EU) 2024/1265 of April 29, 2024 on the amendment of Directive 2011/85/EU on Fiscal policy, modifying the basic principles of public accounting and the current framework for rules and procedures for fiscal management.
In this context:
- General principles of fiscal management are treated by incorporating the rule of net costs, as provided for in the new European framework for economic governance. In particular, the costs of the state and general government bodies should not be increased faster than a particular rate of change, as specified in the four-year medium-term budgetary-acting plan, regardless of the course of public revenue that is not linked to specific policy measures.
- In addition, the additional provisions for the budget deficit that must remain lower than the 3% of GDP reference price and the general government’s primary balance of the general government that must be surplus
- Based on the new European Framework of Economic Governance, cases of permissible deviations from the rule of net expenditure (general and national escape clause) are introduced.
- The architecture of the new fiscal management is based on a medium-term budgetary plan (MSS), which will be compiled every four years and will reflect the budgetary budgetary objective of the country’s net primary expenses. At the same time, rules for ensuring fiscal stability and corrective mechanism for their breach of their breach are established
- The objectives set by the MDC for the rate of increasing net costs, since they are accepted by the Council of the European Union, are binding both for the annual budget and for multiannual budget planning.
- Now, prior to the submission of the state budget, a year -long fiscal planning will be drawn up annually, so that public information on medium -term planning
- In addition, the forecasts of the Directive to strengthen the role of the Greek Financial Council, which is upgraded to an institutional, organizational and operational level, are incorporated.
In addition, the new bill includes the new budgetary measures for citizens and investments announced in April 2025:
- Return of a rent annually for the main and student residence
- Annual financial support of 250 euros for retirees, uninsured elderly and disabled
- Extension of the Reduction of Income Tax Reduction for Building Upgrading Expenditure for the years 2025 and 2026
- Complementary budget for the aid of the National Public Investment Program of EUR 500 million
In addition to the new bill:
- The “National Benefit Register” is recommended which will gather in a single and cohesive register the benefits of money and in kind granted by the State to natural persons and productive utilization of public data.
- The annual increase in pharmaceutical expenditure provided for in the recovery fund is expanded by EUR 100 million per year for the years 2026-2030, with the aim of maintaining Clawback returns.
- The competence for the National Procedure Simplification Program and the National Register of Administrative Procedures “Mito” is amended, for which the Ministries of National Economy and Finance and Home Affairs will now
- Settings are introduced to enhance the effectiveness of budget controls by updating the relevant methodology and procedures followed
- Legislative vacuum is covered in public -government officials with disabilities in need of attendant and/or aid dog
- The incentive to achieve budgetary objectives is also expanded to the Hellenic Financial Council, and regulations are introduced for the postings of employees to the Directorate of Action Control of the Recovery and Resilience Mechanism and the Public Debt Management Organization (ORDIX).