As Greece enters a crucial political and economic period, multiple scenarios are unfolding. The government appears increasingly pessimistic about the country’s trajectory, fueling speculation about snap elections possibly being called by autumn 2025. Amid this uncertainty, an extensive economic package is expected to be announced during the Thessaloniki International Fair (DETH), potentially paving the way for a public referendum on policy direction through electoral change or prolonged instability.
While numerous proposals have already reached the economic team, more are anticipated before September, and even more may leak to the media. Readers are advised to take such leaks with caution, as they often originate from officials unaware of the country’s true fiscal constraints—especially following commitments to increase defense spending.
Meanwhile, attention turns to rural Greece, where revelations from the OPEKEPE scandal are sending shockwaves through small communities. These investigations into illegal agricultural subsidies are poised to upend livelihoods, further highlighting the disconnect between urban centers and provincial life.
In housing policy, the government continues shifting toward demand-side support, exemplified by recent announcements of rent subsidies for public sector workers in remote areas. While such measures provide immediate relief, critics argue they may inadvertently drive up property prices rather than expand supply.
Defense spending remains another hot-button issue, especially as Europe grapples with how to build its own military-industrial capacity without relying heavily on U.S. suppliers or Chinese raw materials. Spain’s finance minister has proposed a balanced approach that aligns NATO defense goals with financial stability, a model that could influence Greece’s position within the Eurogroup.
Finally, energy costs are surging, with electricity bills rising up to 15% due to increased wholesale prices and market expectations. With natural gas prices offering only temporary relief, households and businesses face mounting pressure, raising concerns about inflationary spillover effects across the economy.