Newsflash from Monday, 6 October 2025: Greece’s public debt is projected to drop below 140% of GDP by 2026, according to Finance Minister Kyriakos Pierrakakis. The new budget plan signals fiscal stability, growth above 2%, and continued tax relief for families and professionals.
Greece’s Debt Set to Drop Below 140% of GDP — A Milestone in Fiscal Recovery
Greece is entering a new era of economic confidence and fiscal stability. According to Minister of National Economy and Finance Kyriakos Pierrakakis, the country’s public debt is projected to fall below 140% of GDP by 2026, marking one of the most significant improvements in Greece’s financial position since the debt crisis.
In an interview with Real News, highlighted by Creta Times, Pierrakakis stated that the 2026 target reflects the government’s commitment to fiscal discipline, steady growth, and social support policies.
> “The public debt, a long-standing burden for the country, is steadily decreasing. For 2025, it is estimated at 145% of GDP, and by 2026 it will fall below 140%,” Pierrakakis said.
Growth, Stability, and a New Economic Chapter
The 2026 budget draft, to be submitted to Parliament this week, outlines a continued trajectory of growth exceeding 2% annually, outpacing the eurozone average. This performance reinforces Greece’s reputation among investors and international institutions as a country that has successfully transitioned from crisis management to sustainable development.
Recent reports from the OECD and DBRS Morningstar confirm this positive outlook, citing Greece’s strong primary surplus and ongoing debt reduction as key drivers of its economic recovery.
Tax Relief and Support for the Middle Class
Beyond fiscal stability, the government’s plan includes targeted tax cuts and incentives for families, young professionals, and property owners.
Through the new digital platform taxcalc2025.minfin.gr, citizens can calculate their expected annual tax savings under the latest reforms.
For example:
– A family with two children and dual incomes of €30,000 per parent will see an annual tax benefit of €2,400.
– Families with three children will gain up to €4,200 per year, equivalent to a €350 monthly boost.
– Young workers earning €19,000 annually will save approximately €2,243 per year.
Pierrakakis emphasized that while inflation remains a challenge, these permanent tax reductions will “leave more money in citizens’ pockets” and strengthen household resilience.
Tackling Inflation and Housing Challenges
The Finance Minister also addressed inflation and housing pressures, noting that the government is pursuing a dual strategy:
1. Reducing taxes to increase disposable income.
2. Implementing stricter rules on short-term rentals to bring more homes back into the long-term market.
New measures will expand tax incentives for property owners — including larger deductions for families with multiple children and professionals such as teachers, doctors, and police officers who relocate for work.
European Cooperation and Fiscal Oversight
Pierrakakis praised the productive collaboration with European Chief Prosecutor Laura Kövesi, noting shared goals in combating tax and customs fraud. He also announced plans to strengthen the European Public Prosecutor’s Office in Athens, ensuring faster and more transparent investigations.
A Turning Point for Greece’s Economy
With public debt steadily declining, inflation easing to 1.8%, and growth remaining robust, Greece appears to have turned the page on a decade of financial turmoil.
The 2026 budget aims to balance growth and fiscal prudence, creating room for future social measures while maintaining investor confidence.
> “This is a budget of stability and perspective,” Pierrakakis concluded. “Greece has left the crises behind and is moving forward with confidence.”
