Filenews 5 June 2025 - by Tasos Dasopoulou
The European Commission's assessment of the progress of the implementation of the Medium-Term Structural and Financial Plan 2025-2028 for Greece, which takes place in the framework of the European Semester, is positive.
In the Commission's texts published today and concerning the assessments of the updated medium-term plans, it is stressed that Greece improved its fiscal performance in 2024 by recording a budget surplus of 1.7% of GDP against a deficit of 0.7% of GDP, while its debt reduction reached 10.3% of GDP. Therefore, it more than meets the requirements of the new fiscal rules.
The Commission also credits the effort to combat tax evasion, which has led to a record primary surplus of 4.8% of GDP.
At the same time, it notes that the country is fully compliant with the ceilings for the increase of primary expenditure for the years 2024-2025, since in 2024 it had a marginal decrease of 0.3% against a target of 2.6% increase in expenditure, while for 2025 expenditure is expected to increase by 4.3% against a target for an increase in expenditure of 3.7%. Therefore, at a two-year level, Greece is below the targets for an increase in net primary expenditure. The Commission also finds that the projects of Austria, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, Latvia, Lithuania, Slovenia and Sweden are also compliant.
As for the case-by-case recommendations for large fiscal imbalances in the member states, Greece is referred to as a country that continues to have a problem with its high debt ratio, current account deficit and unemployment rate, which remains the second highest in the EU.
Escape clause on defence spending
The Commission also reports that 16 Member States have requested the activation of the national escape clause. These are Greece, Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Slovenia, Slovakia and Finland. This is a critical number of countries, which shows the benefit of adhering to a coordinated approach to the EU's new defense policy. Within the day, the legal margins that the activation of the escape clause for spending will also be announced.
Later today, the post-memorandum assessments for Greece, Spain, Ireland and Portugal are expected to be announced.
