Greece implements debt reduction plan amid fiscal challenges

Greece is pursuing a strategic economic agenda focused on debt reduction and fiscal management. The Ministry of National Economy and Finance is implementing a five-point plan to accelerate the decrease of the national debt. This plan aims to reduce the debt-to-GDP ratio from 145.6% at the end of 2025 to 137.6% by the end of this year, supported by an expected economic growth rate of 2% and a primary surplus exceeding 3.2% of GDP.

Key actions include the early repayment of 6.94 billion euros in June and a planned early repayment of 3 billion euros from the 110 billion euro EFSF loan in September. These moves are intended to reduce future debt servicing obligations, particularly after 2030. If successful, Greece aims to hold the second-highest debt-to-GDP ratio in the EU, trailing only Italy.

However, domestic challenges persist regarding the state's own financial obligations. While the state strictly enforces tax collections from citizens and small businesses, it currently faces overdue liabilities to private individuals and suppliers exceeding 3.5 billion euros. This discrepancy between strict enforcement on taxpayers and the state's own delayed payments remains a point of domestic contention.