The Greek Financial Council (SFS) completed the assessment of the macroeconomic forecasts that form the basis for the Preliminary draft of State 2025 (SPC 2025), which the Ministry of Finance (SPA) currently submits to the House and considers to be in compliance with its financial rules, although it points to geopolitical uncertainty. As stated in a press release, the new European economic governance framework, which entered into force in April 2024 in the EU, focuses on the continued debt reduction as a percentage of GDP in compliance with the 3% and 60% of GDP reference values for deficit and debt respectively. The main monitoring variable of the above course is net primary costs. According to the EAC, the draft budget of 2025 drawn up by the officials of the Ministry of Finance fully complies with these rules. The general government debt is forecast to decrease from 153.7% of GDP in 2024 to 149.1% of GDP in 2025 and the budget deficit from 1% to 0.6%, respectively. Primary expenditure is not expected to exceed 2.6% for 2024 and 3.7% for 2025. The EAC confirms that the assumptions made for macroeconomic and fiscal developments (development for 2024 2.2% and 2025 2.3% and primary surplus 2.4% of GDP and 2.5% of GDP respectively) are consistent with the objectives of fiscal stability. The above forecasts are in line with the medium-term financial framework of the Ministry for the period 2025-2028. The budgetary improvement foreseen for 2025 is supported by strengthening the investment climate and strong growth potential. However, significant external risks, such as geopolitical uncertainty and economic developments at European and international level, are factors of uncertainty. The EAC adopts the macroeconomic forecasts of the State Budget Plan 2025 and finds that the financial objectives are in full compliance with the new European Economic Governance Framework.
Budget 2025: Approves the Greek Financial Board’s draft
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