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[POLITICS] · Greece · 5 sources

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Greece: Government defends fiscal policy as mayors warn of budget crisis

Government spokesperson Pavlos Marinakis outlined the fiscal strategy of the New Democracy party, emphasizing that achieving self-sufficiency is the primary goal for realistic governance. He stated that any permanent increase in social benefits is contingent upon growing the economy, reducing tax evasion, and maintaining strict spending limits. Marinakis highlighted economic indicators such as the creation of 600,000 jobs, an increase in investments from 10% to 17.5% of GDP, and a rise in exports from 20% to 40%. He also noted that 91 taxes have been reduced or abolished.

In contrast, Athens Mayor Haris Doukas criticized the current financial situation for local authorities. He argued that municipalities are facing a fiscal crisis, comparing current budget constraints to those seen during previous memorandum periods. Doukas noted that the Athens municipal budget is expected to drop to 650 million euros this year from 1.1 billion euros in 2024. He further claimed that local governments are receiving insufficient resources from the Recovery Fund to meet even basic salary requirements.

Entities

Athens · Haris Doukas · New Democracy · PASOK · Pavlos Marinakis

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