How much ‘discussion’ fits into NATO’s 5% GDP defense spending for Greece? Both the media and newsit.gr have given significant attention to the NATO summit that officially began yesterday. There is also considerable concern regarding Spain’s exemption from the 5% target. A partial answer came from NATO’s Secretary-General, Jens Stoltenberg, when discussing collective defense. Perhaps Spain can contribute to the ‘collective 5%’ without reaching it nationally. Another possible answer involves smaller-budget NATO countries needing plans to reach the 5%. If supply issues persist, they can collaborate on solutions. Does this apply to Greece?
In international trade, German Chancellor Friedrich Mertz criticized the EU Commission led by Ursula von der Leyen over complex negotiations with Trump. The US had imposed tariffs up to 50% but suspended them until July 9, 2025, for ongoing discussions. Mertz emphasized a simpler agreement focusing on key industries like automotive and chemicals.
China enters as a wedge in US-EU trade disputes. Chinese Foreign Minister Wang Yi’s visit to Berlin, Paris, and Brussels before the tariff suspension ends aims to prepare for the EU-China summit in July. Meanwhile, Germany suffers from limited critical raw material supplies from China due to export controls tightened in response to US tariffs.
Energy prices worry Greece’s Ministry of Energy despite surplus electricity production. Retail prices remain high, raising concerns about insufficient competition. Possible solutions include fixed and dynamic pricing options for consumers.
Greece ranks fourth in Europe for indirect taxes at 17.3% of GDP, significantly above the EU average. Despite calls for reform, institutions like the Budget Office oppose VAT cuts, emphasizing increased competitiveness instead. High VAT doesn’t directly affect export prices, yet it impacts domestic affordability.
Forecasts for tax revenues are positive, prompting calls for tax relief on employment. The Budget Office suggests redirecting excess revenue towards easing payroll taxes before public investments.
Finally, there’s an acknowledgment of difficulties completing Greece’s Recovery Fund projects. Even if funds are absorbed by August 2026, they might not be fully utilized by December 2026, risking loss of grants.