The government's economic staff is entering the final stretch for the finalisation of the 2025 budget figures in the coming days as the government's economic staff begins its deliberations on the decisions that will reflect the main priorities of economic policy for the coming year.

According to Athens News Agency, the government's top political and economic priorities will determine decisions in a number of important economic sectors, including how to support the economically vulnerable, how to maintain fiscal discipline in accordance with the new EU fiscal rules, how to continue the tax cut policy, and how to deal with day-to-day issues.

As a result, the new budget will be an exercise in striking a balance between the need to continue the government's policy of supporting low incomes while also further reducing the tax burden and the obligations to abide by the new fiscal rules, which set a 3% limit on primary expenditure growth in 2025. To the equation should be added the coverage of key spending categories, which include spending on armaments, on the new recruitments announced, and on the award of new pensions, as well as those related to tackling climate change.

The government's "ally" is, of course, the positive developments in the implementation of this year's budget due to the increase in revenues and the primary surplus beyond the targets set, which are expected to facilitate decision-making.

The main announcements on economic policy for 2025 are expected to be made by Prime Minister Kyriakos Mitsotakis from the platform of the TIF in early September. In any case, however, the government has signaled that they will not be characterized by the logic of benefits but will be balanced based on the potential of the economy and the needs of society.

The Ministry of Finance has already announced that an additional allowance will be granted at the end of the year to pensioners who do not receive annual increases due to personal differences. In this context, and given the positive development of this year's budget, the possibility of supporting other vulnerable groups of low-wage earners and low-income pensioners is expected to be considered. There are also suggestions to extend the announced reduction in social security contributions, foreseeing a 0.5% reduction in 2025 and 0.5% in 2027.

The fiscal targets of the new budget will be in line with the projections of the 2024–2025 Stability and Growth Programme. This foresees a primary surplus for 2025 and the following years of 2.1% of GDP. This is a precondition for further reducing public debt, which is expected to fall to 143% of GDP this year.