Greece Achieves 1.3% Fiscal Surplus, Announces 10 Billion Euro Welfare Package

Greece has achieved a fiscal surplus of 1.3% of its GDP for 2024, positioning itself as one of the few European Union member states to accomplish this feat. In light of this economic milestone, the Greek government has announced a fiscal welfare package worth 10 billion euros, aimed at supporting low-income households and investing in public projects.

Prime Minister Kyriakos Mitsotakis made the announcement in a nationwide televised address, emphasizing that the surplus reflects a strong economic performance and a surplus in the national treasury. He credited this success to robust economic growth, effective measures to combat tax evasion, and a series of other reforms that have generated additional revenue beyond initial targets. Despite stringent EU fiscal regulations, the government is now able to return a significant portion of these funds to the citizens.

The fiscal welfare package includes several key initiatives. Starting this year, renters will receive a refund of one month's rent in November. Additionally, elderly individuals, disabled persons, and those without social security will each receive a one-time payment of 250 euros at the end of November. The rent refund will be distributed based on household annual income and will benefit around 948,000 households, approximately 80% of all renting households in Greece. The 250-euro welfare payment will benefit a total of 1.4 million people.

Furthermore, the government plans to inject an additional 5 billion euros annually into public investment projects. This investment aims to accelerate the development of public infrastructure and social projects, creating new job opportunities even in the face of international instability.

Greece's economic recovery is a significant turnaround from its severe financial crisis a decade ago. During that period, the country was unable to borrow from international bond markets and relied heavily on international bailouts. The crisis resulted in the loss of a quarter of Greece's economic output and a surge in unemployment. Since then, Greece's fiscal situation has steadily improved, culminating in the current surplus and the ability to provide substantial fiscal benefits to its citizens.

This fiscal surplus and the subsequent welfare package highlight Greece's commitment to economic stability and social welfare. The government's decision to return a portion of the surplus to the citizens and invest in public projects demonstrates a balanced approach to economic management, focusing on both immediate relief for low-income households and long-term infrastructure development. This strategy not only addresses current economic challenges but also lays the groundwork for future growth and stability.

The announcement of the fiscal welfare package has been met with optimism, as it provides tangible benefits to a significant portion of the population. The rent refund and the one-time payment to vulnerable groups are expected to alleviate financial burdens and improve living standards. Additionally, the investment in public projects is anticipated to stimulate economic activity and create job opportunities, further bolstering the country's economic recovery.

In summary, Greece's achievement of a 1.3% fiscal surplus and the subsequent announcement of a 10 billion euro welfare package mark a significant milestone in the country's economic journey. The government's proactive measures to support low-income households and invest in public infrastructure demonstrate a commitment to sustainable economic growth and social welfare. As Greece continues to navigate the challenges of international instability, these initiatives are expected to play a crucial role in strengthening the country's economic resilience and improving the lives of its citizens.