Greece's cash deficit widens and minimum wage target set for 2027

The Bank of Greece reported that the central administration’s cash deficit grew to €3.161 trillion in the first half of 2026, up from a €465 billion deficit in the same period of 2025. Revenues of the regular budget rose 3.7% to €33.744 trillion, while expenditures increased 10.4% to €34.890 trillion, pushing the net regular‑budget result to a €4.151 trillion loss. Interest payments reached €5.159 trillion, and after accounting for them the primary result turned negative by €1.148 trillion. The primary surplus of the central administration fell sharply to €1.998 trillion from €4.542 trillion a year earlier.

In parallel, the Greek government set a new wage target: the gross minimum wage is to rise to €950 by 1 April 2027 (up from €920 in 2026), while the average gross wage in the private sector is aimed at €1,500 by 2027. Real wages remain pressured, with purchasing power at only 68% of the EU average. The government also seeks to increase coverage of collective agreements from about 30% to 80% to boost wages and benefits.

These developments highlight Greece’s fiscal challenges and its effort to improve household income through wage policy reforms.