Greece’s Budget Debate Begins: Key Changes and Highlights

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The debate over Greece’s 2025 state budget begins today, Wednesday, December 11, at 11 a.m. in the House of Representatives.

This week-long process will culminate in a Sunday evening vote, during which opposition parties are traditionally expected to reject the proposal. Notably, some opposition members may take a nuanced stance on defence spending, potentially offering conditional support.

A New Parliamentary Landscape

This year’s budget discussion unfolds against a backdrop of political change. For the first time in over a decade, the New Democracy and PASOK dynamic has returned to prominence. The last such configuration occurred in 2008, with Kostas Karamanlis as prime minister, George Alogoskoufis as finance minister, and George Papandreou leading the opposition.

The revived parliamentary makeup brings fresh dynamics to the debate, with PASOK now positioned as the second-largest party, marking a shift in Greece’s political balance after years of dominance by other parties.

Government’s Economic Argument

The government has framed the budget as a continuation of efforts to bolster citizens’ incomes and reduce tax burdens. According to a government spokesperson, the 2025 budget includes:

  • 12 new tax cuts, including the abolition of the business tax and the reduction of insurance contributions by 1 percentage point.
  • Support for families, such as exempting health insurance premiums for children under 18.
  • Incentives for professionals, including self-taxation for doctors’ on-call fees at a flat rate of 22%.

“These measures reflect the government’s commitment to supporting households and fostering economic growth,” the spokesperson said, previewing the arguments likely to dominate the ruling party’s defense of the budget.

Broader Context and Challenges

The budget debate coincides with several pressing national issues, including crises in military hospitals and allegations of corruption in urban planning authorities. These challenges could add a layer of contention to the parliamentary discussions.

The outcome of this debate will signal the trajectory of Greece’s fiscal policies under the current administration and test the strength of its support within the new parliamentary configuration.

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