Having a budget leeway of about €1.3 billion for new measures, the government is planning for a Thessaloniki International Fair with great political gravity and with increased demands due to the difficult geopolitical setting.
Hampering the expansion of this package is not the lack of the necessary fiscal space, but the limit on the increase of expenses – agreed to in coordination with the European Commission – that prevents the exhaustion of the available resources. However, over a month before the crucial announcements, which will also shape the preelection landscape, two sources are emerging for more leeway, possibly bringing the final amount to €2 billion.
The first is to activate the escape clause for energy spending, an option Brussels opened in early June. The – still incomplete – list of projects, aimed at strengthening energy security and reducing dependence on fossil fuels, is estimated at €300-500 million for 2027. If the clause for this is activated, then a similar fiscal space is created for benefits.
A second critical factor is how much of the revenue from tackling tax evasion will be considered permanent.
