The indirect shadow of PSI on the budget
A sobering finding from the Centre for Economic Policy Research (KEFIM) shows that 43% of pension payments in 2025 were financed through the general state budget — confirming that the social insurance system continues to rely on general taxation, i.e., citizens’ pockets, as contributions alone remain insufficient to cover pension liabilities. While not the sole factor, the severe blow dealt to pension fund reserves during the crisis years cannot be overlooked. That damage still contributes today to the growing need for direct fiscal support to pensions.
According to earlier research by the Centre for Planning and Economic Research (KEPE), the 2012 Private Sector Involvement (PSI) debt restructuring reduced the assets of Social Security Funds by €11.8 billion — a staggering 45.9% of their total asset base. KEPE noted that while the PSI haircut did not single-handedly create the pension funding gap, it significantly accelerated pressure on a system already weakened by recession, rising unemployment, and falling wages.
A shifting balance between state and market in strategic enterprises
Another hallmark of the long crisis period — which included PSI — was the heavy emphasis on privatizations, concessions, and reductions in state shareholdings. Today, however, the state is acquiring new tools to maintain an active, investment-oriented presence in companies deemed critical to the national economy.
The most debated amendment in the Ministry of National Economy and Finance’s omnibus bill signals a selective recalibration of the state-market mix for strategic enterprises. It allows the Greek state to participate in capital increases of listed companies in which it holds a critical stake — without disrupting market mechanisms. The change reflects a clear intent: in energy, infrastructure networks, interconnections, and other vital infrastructure, the state aims to remain not only a regulator but also an active investor.
Tsafos’ message on de-carbonization
Deputy Minister of Environment and Energy Nikos Tsafos has placed energy security above emissions reduction in policy priorities. In a recent public statement, he articulated this position unequivocally — effectively signaling the government’s future direction amid complex geopolitical and economic conditions. At the same time, latest data show Greece’s CO₂ emissions have plummeted by 62.7% between 2005 and 2025, lending context to the Ministry’s current emphasis.
EFKA’s building enters the market in Piraeus
The sale of EFKA’s property at 4 Kasimati Street in Piraeus is expected to further upgrade the area. The Social Insurance Fund has launched a public tender for the lease of its multi-storey building — totaling 1,504.56 square meters. The aim is for the site to host a hotel operation. The winning bidder will be responsible for full reconstruction, with a minimum investment requirement of €3 million plus VAT.