Greece social security debt reaches 52.42 billion euros

Greece's social security system faces a growing debt crisis, with total arrears reaching 52.42 billion euros. This figure represents a 50% increase since 2019, when the debt stood at 35 billion euros.

According to the latest KEAO report for the second quarter of the year, debt increased by over 600 million euros in just three months. This upward trend persisted despite KEAO collections totaling 450 million euros during the same period. The report suggests that the scale of the debt is so large that even significant collections and additional fees are insufficient to reverse the trajectory.

Concerns are rising regarding the long-term stability of pension benefits. While current pensions remain secured, the uncontrolled growth of debt poses a threat to future sustainability. Efforts to mitigate the issue, such as the recent 72-installment repayment scheme, face limitations due to a 5.5% interest rate and eligibility restrictions. Furthermore, revenue growth through increased employment and lower unemployment appears to be reaching a plateau, as unemployment remains difficult to push below 8%.