![\"Greece](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/11\/Greek_parliament_Athens_Greece_sunny_credit_GR.jpeg\")
<\/p>\n<\/p>\n
\u201cOur target is to stop being the most indebted country in Europe in the next years,\u201d Finance Minister Kyriakos Pierrakakis said. Credit: Greek Reporter<\/p>\n
Greece<\/a>\u2019s final budget plan projects accelerated economic growth for 2026 and a significant reduction in its public debt, by almost eight percentage points, driven by increased public and private investment and sustained consumer spending.<\/p>\n The government expects economic output<\/a> to rise 2.4% next year, outperforming Europe\u2019s major economies, following expansion of 2.2% this year, partly with the help of European Union recovery funds.<\/p>\n Greece projects a primary surplus, which excludes debt servicing costs, of 2.8% of gross domestic product next year, on the back of higher tax revenue and lower unemployment. Since emerging from a bailout in 2018, the country has regained its investment grade ratings in 2023, revived its banking system, and relied solely on debt markets for its borrowing needs.<\/p>\n Its public debt<\/a>, now the highest in the Eurozone<\/a>, is seen dropping by 7.7 percentage points to 138.2% of GDP in 2026 from 145.9% this year and to below 120% in 2029. \u201cOur target is to stop being the most indebted country in Europe in the next years,\u201d Finance Minister Kyriakos Pierrakakis said at a press conference presenting next year\u2019s budget plan.<\/p>\n Greece\u2019s 2026 budget includes tax breaks<\/p>\n The new budget includes tax breaks of about 1.7 billion euros ($1.96 billion) to better support households with children and fund pension hikes amid the rising cost of living, funded by the primary surplus.<\/p>\n Greece should achieve a primary surplus of approximately 2% annually, compared to 3.7% this year, to cover its interest rate payments and maintain a sustainable debt burden. The country plans to borrow about 9 billion euros (about $10.37 billion) next year from bond markets and repay more bailout loans in December ahead of schedule.<\/p>\n