Stability, security, growth - Is new budget enough to boost Greece?

The Greek government's new budget marks an important step as the country works to balance fiscal responsibility with economic growth. 

Coming at a time of global economic uncertainty, inflation pressures and post-pandemic recovery, the budget shows a clear commitment to stability while aiming for long-term development.

Greece is aiming for a 3 percent GDP growth rate, driven by strong investment and steady consumer demand. Public debt, a long-standing challenge since the debt crisis, is projected to drop further to around 161 percent of GDP - an improvement compared to over 200 percent a decade ago.

The government is also targeting a primary budget surplus of 1.7 percent of GDP, meeting EU requirements. Meanwhile, inflation is expected to ease to about 2.5 percent, thanks to stabilized energy markets and a slower pace of global monetary tightening.

Protecting household purchasing power remains a key priority for the government.

The budget places a strong emphasis on strengthening Greece's economic foundation through targeted investments.

Health, social and climate goals

There's a big push to increase funding for healthcare and social welfare, with the aim of reducing inequality and improving the lives of vulnerable populations. At the same time, substantial resources are being directed toward renewable energy and infrastructure modernization, ensuring Greece stays aligned with EU climate goals.

Defense spending remains a major focus, reflecting the ongoing tensions in the Eastern Mediterranean. Another priority is digital transformation, with efforts to modernize public services and encourage private-sector innovation - moves that aim to make Greece more competitive and resilient.

Challenges lie ahead. Rising borrowing costs, driven by tighter global monetary policies, could put pressure on public finances. 

External risks, like geopolitical instability and fluctuating energy prices, also pose potential threats to economic growth. To address these challenges the government will need to continue structural reforms, such as streamlining bureaucracy, making the labor market more flexible and attracting foreign investment.

Overall, the budget is a step forward in Greece's recovery journey after years of economic hardship. The government believe it reflects a balance between fiscal responsibility and the need to invest in critical areas for the future. 

However, as global uncertainties persist, Greece will need to remain adaptable and vigilant to ensure it stays on the path toward sustainable growth and stability.