Greece's fiscal position is expected to show an impressive improvement in 2025, at a time when eurozone leaders are facing huge fiscal challenges with spill-over effects on their governments.

Speaking to SKAI today, Greek Finance Minister Kostis Hatzidakis said the fiscal deficit will approach zero this year, while he estimated that the primary surplus will reach or exceed 2.5% of GDP.

According to reports, the momentum in budget revenues following the implementation of measures to combat tax evasion paves the way for limiting the deficit to the range of 0.3%–0.4%, while for the primary surplus, a surplus above 2.5% is more than likely.

In the latest forecasts of the Ministry of Finance, as agreed with the Commission in the Fiscal Structural Framework for the next four years, the fiscal deficit was set at 1% of GDP this year and 0.6% for 2025 and the primary surplus at 2.4% (from 2.1% projected in the budget) and 2.5% of GDP for 2025, a performance that is expected to be exceeded this year.

The better fiscal performance does not open a window for additional year-end benefits as was common in previous years, as the activation of the new rules on primary expenditure growth ceilings closes any such possibility.