EU calls on Athens to rein in expenditure

Wednesday's recommendations by the European Commission signal a return to fiscal containment, in view of the adoption of a new Stability Pact, as they limit the increase in the so-called net primary costs of 2024 to 2.6% compared to 2023.

At the same time, the Commission calls on the Greek government to address a series of chronic weaknesses in the Greek economy, which it highlights in detail, such as tax evasion, especially among the self-employed, and the low efficiency of the public sector, while it warns about the widening current account deficit and any impending difficulties in absorbing the resources of the Recovery Fund.

In the separate text of the second post-bailout surveillance report, moreover, the Commission acknowledges the significant progress in the economy, in terms of growth, fiscal performance and the banking sector, but points out some delays:...