The European Commission (EC) on Wednesday approved Greece’s national medium-term fiscal-structural plans (MTP) for 2025–2028 as part of the European Semester framework.
The published documents highlight Greece’s significant fiscal results in 2024, noting a 1.7% budget surplus, accompanied by a notable GDP reversal from a 0.7% deficit in 2023.
Greece’s public debt was reduced by 10.3% of GDP—a major step toward long-term fiscal consolidation.
The European Commission acknowledges Greece’s progress in tackling tax evasion, a campaign that has contributed to a primary surplus estimated at 4.8% of GDP—a reflection of improved revenue collection and fiscal discipline.
The country also remained within the cap set for the growth of primary spending. Greece was permitted to raise primary spending by 2.6% in 2024; it recorded a decrease of 0.3%. Expenditure in 2025 is expected to rise by 4.3%, marginally above the 3.7% target.
Defense spending, meanwhile, has slightly declined over the past few years but remains robust. General government defense expenditures accounted for 2.7% of GDP in 2021, 2.6% in 2022, and 2.2% in 2023. According to the Commission’s 2025 Spring Forecast, defense spending is projected to hold steady at 2.4% of GDP in both 2024 and 2025.
