Record €12.1bn primary surplus sparks €500m relief package amid fiscal overperformance

Greece’s fiscal performance shows a strong upside surprise, with the primary surplus reaching €12.131 billion, or 4.9% of GDP, according to Eurostat data.

This result significantly exceeds the original budget target of €9.25 billion (3.7% of GDP), marking an overperformance of approximately €2.881 billion.

While the figures suggest greater fiscal room for policy action, authorities stress that European fiscal rules significantly limit the portion of surplus that can be directly returned to society.

Government response: controlled redistribution

In response, the government is preparing a €500 million targeted support package, designed as a partial redistribution of the surplus to households and vulnerable groups.

At the same time, officials are set to present a broader economic roadmap for 2026, focused on balancing fiscal discipline with gradual income support.

A government source noted:

“The surplus is strong, but fiscal discipline within the European framework remains non-negotiable.”

The dual interpretation of the surplus

Economists highlight the dual nature of such a strong primary surplus:

• It strengthens investor confidence and creditworthiness
• It simultaneously restricts immediate fiscal expansion or broad spending increases

The extent to which surplus translates into social support is largely determined by EU fiscal governance rules and debt sustainability commitments.

€500 million support package

The upcoming measures are expected to focus on targeted relief rather than universal handouts, aiming to support vulnerable households and boost parts of the real economy.

Policy direction is summarized as:

“fewer horizontal transfers, more targeted interventions.”

2026 economic roadmap

The government’s 2026 strategy reportedly includes:

• Maintaining strong primary surpluses
• Gradual increases in disposable income
• Continued anti-tax-evasion measures
• Controlled public spending discipline
• Sustained debt reduction path

The goal is to preserve market confidence while slowly improving household purchasing power.

Source: pagenews.gr