Time counts in reverse to finalize the package of tax reliefs and meter On the housing issue announced by Prime Minister Kyriakos Mitsotakis in early September at TIF.
Within the next 20 days, the government will make decisions on middle -class relief and lower incomes, aid to economic vulnerable groups and the housing policy measures, which will be announced by the TIF step.
These are key economic policy measures that will be integrated into the budget of 2026 whose draft will be submitted to Parliament on October 6 and the new medium-term structural plan 2026-2029 to be submitted by the government in Brussels.
The strong growth of the Greek economy, the increase in revenue due to tax evasion measures and the escape clause for defense spending have been locked up for 2026 budgetary space of 1.5 billion euros, which will be used to cover the cost of the TIF package. This will reportedly include reductions in the tax rates focusing on the middle income, interventions to support families with children and the treatment of the housing crisis.
Among the measures being considered is the reduction of the tax rate for rents along with the incentives to owners to dispose of houses that remain closed and intensify the housing problem.
The new medium-term structural plan 2026-2029 will reflect the ceilings of public spending for the coming years. This is the annual increase in net primary expenditure already set at 3.6% for 2026, 3.1% for 2027 and 3% for 2028. In Brussels consultations are expected to finalize their corresponding growth rate for 2029. the average of the eurozone. It is recalled that this year the growth rate of the Greek economy is estimated at 2.3%. At the same time, it will be envisaged that Greece will remain in the next few years in the path of achieving high primary surpluses. It is noted that this year, the primary budget surplus is expected to exceed the original target of 2.4% of GDP with estimates raising it to 3.5%. This is a significant goal for the second consecutive year as in 2024 it jumped to 4.8% of GDP.
The forecasts for growth, for primary surpluses and debt will be the strong “papers” of the Greek economy in the coming years, throughout the period of the new revised medium -term structural plan. In terms of growth, it is estimated that the positive impact of the projects of the Development Fund will continue to continue, which is expected to contribute to the positive effects of the three new European environmental funds of € 8 billion in which Greece joined as well as the increase in the national part of the public investment program. The prediction for maintaining high primary surpluses is based on both development potential, on the other hand on the permanent budget revenue from tax evasion measures. Public debt will provide further declining it with the aim of 2028 Greece is not the country with the highest debt in the EU as a percentage of GDP.
Source: RES-EIA