Greek Economy: A Miracle with Two Faces?

Vasilis Stefanakidis analyzes the contradiction between Greece's economic growth and the difficulty citizens face in meeting their financial obligations.

As the government prepares to discuss the 2026 budget, which includes increases in salaries and pensions, as well as small reductions in taxes and insurance contributions, many citizens do not feel relief.

Since 2019, the Mitsotakis government has prioritized fiscal stability and surpluses, restoring the country's credibility with lenders and international markets. This has resulted in early repayment of loans and a reduction of debt as a percentage of GDP.

However, this success has had a side effect: the over-taxation of Greeks, especially through indirect taxes such as VAT and excise duties. This has led to a decrease in household purchasing power and difficulty in coping with high prices.

The government is trying to offset the effects with allowances and small interventions in direct taxes, but dissatisfaction with the economy and high prices remains the dominant problem.

The author points out the government's delay in dealing with cartels and the widening gap between rich and poor, which will affect electoral behavior.