Greece exits EU macroeconomic imbalances list, ending 16‑year surveillance

The European Commission has removed Greece from the list of countries facing macro‑economic imbalances, declaring that the nation no longer experiences such vulnerabilities. The decision marks the official end of the special surveillance regime that began with the debt crisis sixteen years ago. Prime Minister Kyriakos Mitsotakis welcomed the move, saying it closes a difficult chapter and restores full economic normality. The Commission cited stronger fiscal fundamentals – a primary budget surplus of 1.7 % of GDP in 2025, a rapid decline in public debt projected to fall to 123.4 % of GDP by 2027, and robust growth of 2.1 % in 2025 – as well as successful reforms, digitalisation of tax administration and effective use of Recovery and Cohesion Fund resources.

In the same report the Commission presented recommendations on Greece’s tax system, noting 1,236 tax exemptions that cost an estimated €22.9 billion in 2024 and a VAT revenue gap of €9.4 billion in 2023 (18.3 % of potential revenues). It called for a review of these exemptions, tighter assessment of their effectiveness, and the introduction of greener taxes on fossil fuels. A parallel European Court of Auditors assessment highlighted that youth unemployment remains high, with Greece at 16.5 % in 2025, despite overall EU youth unemployment falling to 11.6 %.