Summary of Greece’s Approved Budget
- The budget was sanctioned with a majority of 158 votes by Prime Minister Kyriakos Mitsotakis’ conservative government in the 300-seat house.
- Athens is aiming for a primary budget surplus, excluding debt-servicing costs, of 2.1% of GDP in the upcoming year, an upgrade from this year’s 1.1% surplus.
- Greece, being the euro zone’s most burdened nation in terms of debt, has seen robust recovery since leaving international bailouts worth over 260 billion euro in 2018, symbolizing the culmination of a decade-long debt crisis.
- Having regained its investment-grade status after 13 years in 2023, for the sustainability of its debt, the nation needs to maintain primary budget surpluses.
- An amount of 1.4 billion euro is slated for spending to spur income, including the first salary increases for civil servants since 2010.
Greek Budget Vote Shows Strength of Conservative Government
Prime Minister Kyriakos Mitsotakis’ conservative regime successfully couched the budget with 158 votes in favour, in the 300-member house.
Primary Budget Surplus Targets Increase
Athens is focusing on reaching a primary budget surplus (excluding debt servicing expenditures) of 2.1% of GDP next year, marking an improvement from this year’s surplus of 1.1%.
Greece’s Remarkable Recovery from Debt Crisis
Greece, the Eurozones’s most heavily indebted country, has bounced back significantly since exiting international bailouts exceeding 260 billion euros in 2018, signaling the completion of a long-winded debt crisis.
Investment Grade Status & Debt Sustainability
The nation, recovering its investment-grade stature in 2023 after a 13-year hiatus, is under the obligation to uphold primary budget surpluses for the sustainability of its debt.
Spending Allocations to Boost Income
The budget includes a provision for an expenditure of 1.4 billion euros aimed at income augmentation, which features pay raises for government employees for the first time since 2010.
Given Greece’s successful recovery from its debt crisis and the country’s current positive economic direction, this could potentially impact forex or trading. Investors looking at Euro-denominated assets may see Greece as an increasingly attractive option due to its budget surpluses and investment-grade status.