The Economic and Financial Affairs Council (Ecofin) has officially approved the medium-term fiscal-structural plans of 21 European Union member states, including Greece, during its meeting on Tuesday.
This marks a significant step under the EU's new economic governance framework.
For Greece, the endorsed plan covers the period from 2025 to 2028, outlining specific fiscal targets aimed at reducing public debt while ensuring sustainable growth. According to the approved trajectory, Greece's maximum net expenditure growth is capped at 3% in 2025, 3.2% in 2026, 3.1% in 2027, and 3% in 2028. Under this plan, Greece's public debt is expected to drop significantly, from 153.7% of GDP in 2024 to 133.4% by 2028.
"This first round of medium-term fiscal-structural plans represents a cornerstone of the EU's new economic governance framework," Ecofin stated. The plans combine fiscal trajectories with key reforms and investments, aiming to strengthen debt sustainability while fostering sustainable and inclusive growth.
In addition to Greece, other countries whose plans were approved include Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
Five member states—Finland, France, Ireland, Italy, and Romania—were granted an extension of the standard four-year fiscal adjustment period to seven years, conditional on commitments to implement reforms and investments during this extended timeframe.
A central goal of these plans is to ensure that public debt is either on a plausibly downward trajectory or remains at prudent levels by the end of the adjustment period. Additionally, all governments are expected to bring and maintain deficits below the EU's 3% of GDP reference value over the medium term.
Ecofin's decision reflects a collective effort to balance fiscal responsibility with growth-oriented strategies across the EU.
(Source: Amna)