In a significant financial revelation, Greece’s Prime Minister announced on Tuesday a new economic plan earmarking 1 billion euros, equivalent to $1.15 billion, to benefit lower-income households and enhance the nation’s public investment program. This comes after Greece distinguished itself as one of the few European Union states to report a budget surplus in 2024.
Out of the EU’s 27 member countries, only six achieved a budget surplus for the year, according to data shared by Eurostat. Greece’s surplus reached 1.3% of its gross domestic product, a contrast to the overall EU deficit amounting to 3.2%. This improvement is particularly notable given Greece’s financial turmoil a decade ago, which significantly destabilized the EU and global financial markets.
In a televised message, Prime Minister Kyriakos Mitsotakis lauded the figures, highlighting the nation’s economic vitality and surplus in government funds. “This achievement is a testament to our national economy’s remarkable performance, exceeding our expectations,” he remarked.
The Prime Minister attributed this economic success to robust growth, efficient tax collection, and a suite of reform strategies, all contributing to surpassing revenue goals. “Even with stringent European fiscal policies, we’re now in a position to return a portion of these funds to our citizens,” Mitsotakis mentioned.
To address ongoing housing issues, Mitsotakis introduced a plan where renters will receive a reimbursement equivalent to one month’s rent every November, starting this year. In addition, older, disabled, and uninsured citizens will receive an annual grant of 250 euros or nearly $290.
Finance Minister Kyriakos Pierrakakis elaborated on the allocation process, noting that these rent reimbursements would target households based on income, covering around 80% of renters, or roughly 948,000 households, across Greece. Meanwhile, the 250-euro benefits will extend to 1.4 million people altogether.
Furthermore, an annual allocation of 500 million euros, approximately $575 million, will bolster the Public Investment Program, aimed at accelerating public infrastructure and social projects. This move is intended to safeguard and stimulate job creation in the face of global uncertainties.
Greece has seen a gradual recovery since its emergence from a nearly decade-long financial crisis. The country once faced staggering unemployment and a dramatic reduction of one-fourth of its economic capacity. Now, with this renewed fiscal strategy, the nation is moving toward sustainable growth and stability.