Critics warn Greece's 2027 budget repeats same fiscal approach

Greece’s proposed 2027 budget follows the same fiscal pattern as the past three years, focusing on high primary surpluses, limited inflation-driven revenue growth, and modest corrective benefits for employees and pensioners. Observers criticize the indirect tax structure, especially VAT, for placing a heavier load on lower-income earners while the extra revenue does not translate into broader social benefits. The budget projects a sizable increase in tax receipts, yet the accompanying relief measures are described as insufficient given the persistent cost-of-living pressures and geopolitical uncertainty.

Dependence on European recovery funds remains high, raising doubts about the sustainability of growth without a stronger domestic production base. An ambitious investment rise is forecast, but its feasibility is uncertain as EU funding phases out. Overall, the plan is seen as offering nominal wage and pension hikes that barely outpace inflation, while underfunding health and education sectors.