ATHENS – [ANA-MPA]
Greek Finance Minister Kyriakos Pierrakakis on October 5 presented the draft 2027 budget amid intense pressure on international bond markets and energy market volatility.
Pierrakakis spoke of “a proof of the stability and credibility”, forecasting growth above the European average, primary surpluses of more than 3% of GDP and a rapid reduction in public debt.
“Today we submitted the draft 2027 budget at a time when certainties are being tested internationally. Bond markets are under strong pressure, major European economies are facing mounting fiscal challenges, and volatility in energy markets persists. Against this backdrop, Greece has achieved stability and credibility. It has built resilience that enables it to address international turbulence from a stronger position. We are determined to protect this achievement”, he stressed.
On the macroeconomic front, the draft budget forecasts growth of 2.3% in 2027, compared with an average of 1.2% in the eurozone, with investment rising by 7.9%, unemployment falling to 7.9% — its lowest level since 2008 — and employee compensation increasing by 3.9%, up from 3.7% in 2026.
Inflation remains one of the most volatile variables, as it is directly affected by international energy prices. Nevertheless, it is expected to ease in 2027, Pierrakakis said, with the draft budget forecasting a slowdown in the average 12-month annual inflation rate from 3.8% this year to 2.6% in 2027.
“For the government and the economic policy team, growth only matters when it translates into people’s everyday lives”, Pierrakakis stressed. “We aim to higher incomes and lower cost-of-living pressures. Economic progress must become progress for every family.”
On his part, Deputy Finance Minister Thanos Petralias said that the 2027 draft budget includes an additional €200 million under general government expenditure allocations to address potential needs for energy cost subsidies during the first months of the year.
