Greece’s Prime Minister Kyriakos Mitsotakis is expected to unveil a four-year package of measures at the Thessaloniki International Fair (TIF), with a budget that could reach as much as 5 billion euros, as the government seeks to use the final fair before the next elections to present its pre-election agenda.Based on consultations already held with the European Commission under the implementation of the Stability and Growth Pact, and taking into account the need to comply with the net expenditure rule, the economic team now has a clear picture of the fiscal space available for the 2027-2030 period without risking the activation of the excessive deficit procedure.According to available information, the government’s fiscal room is expected to develop as follows:Fiscal space2027:
Around 1 billion euros is available for permanent support measures or broader fiscal interventions. This does not include measures that could be financed through the extension of the escape clause, not only for defence spending but also for projects linked to addressing the energy crisis. These could add a further 400-500 million.2028:
No additional fiscal space appears to be available at this stage. However, the extension of the escape clause for energy-related measures remains in effect, potentially providing an additional amount of 500 million.2029 and 2030:
