Forecast European Commission hits authorities rhetoric: maturation successful Greece slows down, ostentation accelerates, and Citizens are again asked to endure. Brussels seems to person realized that a mates much years of such “glossy” policies and Greece will autumn into an economical tailspin.
Spring forecast European Commission was a nasty stroke to the government’s fairy tale astir “economic success”. The Greek system is not collapsing, but it is intelligibly losing steam: maturation is slowing, ostentation is putting unit connected the wallet again, and the effect of European wealth is coming to an end.
According to the forecast European CommissionGDP maturation Greece will alteration from 2.1% successful 2025 until 1.8% successful 2026 and 1.6% successful 2027. This is not a disaster, but besides not the triumph that the authorities Kyriakos Mitsotakis for years sold to voters similar winners of the Economic Olympiad.
Inflation, estimated European Commissionwill turn to 3.7% successful 2026 against 2.9% successful 2025. In 2027 it whitethorn driblet to 2.4%but for households this is small consolation: prices person already risen, and salaries and pensions, arsenic usual, are moving down them somewhere acold behind.
European wealth is moving out
The main occupation is the dependence of the Greek system connected outer support. Means Ταμείο Ανάκαμψης (Recovery Fund, RRF) supported investments and helped the authorities amusement a beauteous picture. But arsenic the programme ends, this momentum will weaken.
And present the main happening becomes clear: for too agelong the authorities has been passing disconnected European funds, tourism and tax revenues from precocious prices arsenic its ain economical miracle. Convenient model: the national pays much for food, vigor and fuel, and the fund vigorously collects much done ΦΠΑ And ΕΦΚ. Success, of course, if you look astatine beingness from Excel.
Citizens are being billed again
The vigor shock, precocious import dependence and rising prices will again deed existent incomes. Private depletion will weaken, and households will spend much carefully. For an system that relies connected consumption, tourism and outer money, this is simply a atrocious signal.
At the aforesaid time, structural problems person not disappeared anywhere: semipermanent unemployment remains high, there are not capable workers successful tourism and construction, the labour marketplace does not lucifer the existent skills of people, and the nationalist debt, adjacent decreasing, remains immense – astir 134% GDP by 2027.
- economic growth slows down;
- inflation puts renewed unit connected families;
- European funds cease to beryllium the main motor;
- citizens’ income lag down prices;
- social irritation will grow.
Editorial comment
Forecast European Commission is not a verdict, but it takes the gloss disconnected the show Mitsotakis. Brussels, successful adust language, shows what citizens already spot each day: the system is increasing weaker, prices are pressing harder, and authorities rhetoric is progressively falling successful enactment with reality.
The main occupation is not 1 atrocious prognosis. The occupation is successful the exemplary where the authorities calls stability a situation successful which the fund benefits from precocious prices, while citizens suffer astatine the store, astatine the state station, and when paying bills.
If the system rests connected European money, tourism and taxes connected rising costs of living, this is not a sustainable strategy, but an costly decoration. And they are again offering to wage for it to those who unrecorded not connected authorities presentations, but connected salaries and pensions.
Greek (GR) · 
English (US) ·