By Tasos Dasopoulos
New credit for the country's fiscal performance in 2025 and the economy's outlook for 2026, but also "yellow cards" for debt, current account deficit and labour market regulation, come from Brussels over the next few days.
Tomorrow, the European Commission's spring forecasts are expected to be made public, which will make a first impression of the impact of the energy crisis, which closes in a few days' third month. According to information, especially for Greece, there will be a growth higher than the EU average by 2027, which means that the convergence of incomes with the EU average will continue. The Commission notes the good financial performance, reflected in the primary surplus, which reached 4.9% of GDP for 2025, from 4.7% of GDP in 2020 and is expected to exceed 3% of GDP in 2026. Also, credit will be given once again for the debt reduction that reached 9.3% of GDP for 2025 and is expected to continue at about the same pace this year and 2027. The Commission will also point out the achievement without deviations of the ceilings for 2025 and 2026, despite tax reform and exceptional support measures, which have been implemented gradually since the beginning of the year.
Reforms
At the level of reforms, which will be examined in another report within the framework of the European Semester, progress will be made on those which have been incorporated and financed by the Recovery Fund, which is completed in August. However, there will be a note that we should complete the process of speeding up the administration of justice and cadastralism as soon as possible, and it will be noted that efforts on the green and digital transition of the country with the new EU financial programmes should continue.
In the individual report on major budgetary imbalances again in the context of the European Semester, the competitiveness problem of the economy, which is reflected in the current trade deficit, the amount of debt remaining the highest within the EU, despite its rapid decline, and the need to regulate the labour market in order to meet demand, increase overall employment and participation in the labour market of young people and especially women, which is among the lowest in the EU, will be highlighted for the umpteenth time.
Post-memorial supervision
Along with the other reports, the next report on post-memorial supervision will be published, in which criticism will focus on two key issues: The liquidation of red loans and the liquidation of government debts to individuals.
In the first case, it is expected that the progress, recorded by the extrajudicial debt settlement mechanism, which has now regulated debts in a public and private sector amounting to EUR 18.4 billion will be noted. However, the delay in the establishment and operation of the real estate acquisition and re-renting body associated with the application of "personal bankruptcy" will be noted and is still on paper. Also, the legal difficulties in auctioning and clearing loans still faced by servicers will be highlighted.
On the also serious issue of clearing public debt to private individuals, it will be noted that, despite the efforts made, the objectives agreed with European Commission officials are not achieved in any assessment.
