Restricted spending options

Ministry of Finance officials call them "the elephants in the room." They refer to defense and pensions, where increased spending needs severely restrict the margin of maneuver for spending on other items.

The European Commission is strict: Spending increases have limits. And, in Greece's case they cannot exceed 3-3.2% annually. This is not an arbitrary limit; it is compatible with the government's own plan to achieve primary budget surpluses - excluding servicing the country's debt - equal to 2.1% of GDP in both 2024 and 2025. This is part of the Stability Pact goals submitted by the government in April and are prerequisites for reducing the debt as a percentage of GDP by 1 point, as the Commission demands of countries whose debt exceeds 60% of GDP. And Greece is way above the limit: At the end of the year's first quarter, debt stood at 159.8% of GDP, having declined from...