![Commission to Greece: Put a brake on spending – Growth in 2023 at 2.5%](https://www.ot.gr/wp-content/uploads/2022/09/ursulavonderleyen.jpeg)
The Commission is exerting “pressure” on Greece to reduce costs in its second report on post-program supervision in Greece. It neither more nor less calls for capping net primary spending growth in 2024 at 2.6%, while at the same time estimating that there will be larger primary surpluses.
From there, it calls for an end to energy support measures in place until the end of 2023, using the associated savings to reduce the budget deficit. In the event that any new increases in energy prices require support measures, it calls on the Greek government to move towards ensuring that these are aimed at protecting vulnerable households and businesses, are affordable and maintain incentives to save energy.
It also calls for prudent fiscal policy to be ensured, in particular by limiting the nominal increase in nationally financed net primary expenditure in 2024 to no more than 2.6%.
The EU also recommends maintaining nationally funded public investments and ensuring the efficient absorption of the Recovery Fund grants and other EU funds, in particular to promote the green and digital transition.
For the period after 2024, it calls on Greece to pursue a medium-term fiscal strategy of gradual and sustainable tightening, combined with investments and reforms that contribute to higher sustainable growth, to achieve a prudent medium-term fiscal position.
Taxation
On the tax front, based on the reforms carried out as part of the recovery and resilience plan, the Commission calls for improving the investment-friendliness of the tax system by introducing an advance tax system as well as broadening the tax base, including of the review of the current tax structure for the self-employed.
It also recommends tax compliance by expanding the use of electronic payments.
Maintaining and increasing the autonomy of the tax authority, expanding its mandate to develop and manage its information systems and human resources.
It calls on Greece to ensure the efficiency of public administration, while ensuring that it can attract the right skills and maintaining consistency in the single pay scale.
It also urges the continued reduction of non-performing loans and further improvement of the functioning of the secondary market for non-performing loans.
Fiscal policy
The Commission notes the continued growth of the economy at a rate of 5.9% in 2022, much higher than the Eurozone average. However, it predicts, also based on the spring estimates, that growth will slow to 2.5% in 2023 and 1.9% in 2024 due to the strict monetary policy of the restoration of fiscal rules that will place restrictions mainly on the spending of the member states but also of the global economic slowdown.
On the fiscal side, the Commission admits that despite the relatively high expenditure on supporting households and businesses in the face of the energy crisis, Greece managed to show a marginal primary surplus of 0.1% of GDP in 2022. As highlighted, primary surpluses are expected to increase further as support measures related to the pandemic are phased out and the fiscal cost of energy measures is likely to be lower than expected.
In the area of reforms, the report notes progress in continuing to reduce the stock of “red loans”, which it says is helping banks return to profitability and preparing the banking sector for future challenges amid a slowing economy.
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
Latest News
![Gov’t Eyes Return of Power Subsidies Amid Spike in Rates](https://www.ot.gr/wp-content/uploads/2024/07/power-lines-2048x1365-1-600x400.jpg)
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
![ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock](https://www.ot.gr/wp-content/uploads/2024/07/ot_georg_PROIONTA_money-1-600x352.png)
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
![Balkans Blackout Highlights Climate Threats to Power Grids](https://www.ot.gr/wp-content/uploads/2024/07/blackout-1-600x457.png)
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
![Greece in Top 4 Destinations Favored by European Tourists](https://www.ot.gr/wp-content/uploads/2021/06/ploio-600x400.jpg)
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
![Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive](https://www.ot.gr/wp-content/uploads/2024/06/euros-2048x1365-1-600x400.jpg)
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
![First Seaplane Test Flights to Skopelos, Alonissos, Skyros](https://www.ot.gr/wp-content/uploads/2024/06/hellenic-seaplanes-pilotikes-ptiseis-ydatino-pedio-lavriou-600x450.jpeg)
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight
![ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y](https://www.ot.gr/wp-content/uploads/2023/08/unnamed-41.jpg)
ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y
The same price index had decreased 20.8% from May 2022 to May 2023
![Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated](https://www.ot.gr/wp-content/uploads/2024/06/ergasia-ergazomenos-600x300.jpg)
Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated
Specifically, the option "Subjective opinions are prioritized over objective data" ranked highest in importance for young employees, with a score of 3.89 out of 4
![OECD: Job Vacancies on the Rise in Greece](https://www.ot.gr/wp-content/uploads/2024/07/ergasiabusinness-768x556-1-1-600x434.jpeg)
OECD: Job Vacancies on the Rise in Greece
By the fourth quarter of 2023, job vacancies per unemployed person had risen by more than 4, with the index reaching 446 units compared to 100 units in late 2019
![OTE Group: FTTH Program Advancing in Semi-Urban and Rural Areas of Greece](https://www.ot.gr/wp-content/uploads/2024/05/ΟΤΕ-Group_1-600x450.jpg)
OTE Group: FTTH Program Advancing in Semi-Urban and Rural Areas of Greece
This initiative will provide ultra-fast internet speeds of up to 1Gbps to over 350,000 households and businesses in semi-urban and rural areas across the country