With two reports about her Hellas, 2nd grade after the end of enhanced surveillance, but also its recommendations in the context of the European Semester, h European Commission Today, the electoral scene in Athens is based on European reality, which imposes strict fiscal policy and acceleration reforms.

Although both reports are now included in the framework of “normality”, since the European semester concerns all EU countries. and evaluations are made for all who have joined the support programs, they are of particular importance for Greece, as the most indebted country in the EU. The Commission’s recommendations, as expected in Ministry of Financewill pave the way for a new Stability Pact calling for a return to primary surpluses, making debt sustainable. This means a primary surplus of 2-2.5% of GDP from 2024, which is quite close to the targets set by the government in Stability program, which he submitted to the European Commission at the end of April. Since the Commission, in its spring forecasts 10 days ago, estimated that the primary result this year will be 1.9% of GDP (from 0.1% of GDP in 2022), the amount of adjustment that will need to be made in 2024 is not big. However, the government has set a primary surplus target of 0.7% of GDP, even though it provided for 1.1% of GDP in the Stability Program, so it has room for additional support measures before the end of the year. The program notes that the surplus estimate of 1.1% of GDP “does not take into account contingencies or post-election measures that may arise during the year.”

Cancellation of measures

The Commission is expected today to call on member states, including Greece, to phase out support measures against energy accuracy, given that energy prices have fallen. In the event that new support is required, it should be directed only to the financially ill, according to the Commission’s guidelines. After all, its goal is to help the European Central Bank in the fight against inflation, which means that high fuel prices should not be neutralized by government intervention, because in this way consumers are not motivated to save energy. According to Brussels, only income-based support, not horizontal support, can be justified, and then only if prices rise again. Notably, Greece was the country with the third largest energy precision support last year, spending 2.3% of GDP horizontally, compared to only about 0.4% of GDP that would be required to support vulnerable populations.

With regard to the reforms that the 2nd Evaluation is expected to cover, it will indicate, among other things, that the goal of reducing government arrears has not been met as hospitals continue to accumulate debt to their suppliers. On the contrary, he will note that the pension obligations have been met. He also notes that a significant number of restructurings are carried out out of court, but this is a small part of overdue loans.