The Greek parliament approved the government’s 2024 budget, marking the country’s return to an investment-grade status in its debt for the first time in 14 years.
With a vote of 158-142 in the 300-member body, the budget received support solely from lawmakers belonging to the governing conservative New Democracy party. Notably, the defence budget also saw significant approval with a vote of 249-51, a wider margin than usual.
The budget deliberations, held over five days, remained relatively subdued.
Projections outlined in the budget anticipate a 2.9% economic growth for 2024, an increase from the anticipated 2.4% in 2023, surpassing the Eurozone average by fourfold. Prime Minister Kyriakos Mitsotakis expressed hope for a growth rate of at least 3%, banking on robust investment expenditure slated to rise by 15.1%.
Expectations indicate that Greece’s gross domestic product, adjusted for inflation, is set to surpass 200 billion euros ($218 billion) for the first time since 2010, a pivotal moment following Greece’s debt default and subsequent rescue.
Inflation estimates stand at an average of 2.8%, slightly surpassing initial forecasts, primarily due to consistently high food prices. The government plans to allocate around 2.5 billion euros in subsidies to assist lower-income groups impacted by inflation, particularly addressing the surge in electricity prices.
Responding to opposition criticisms regarding the prevalence of low-paying, precarious jobs, Mitsotakis highlighted an upcoming fourth increase in the minimum wage within three years, scheduled for April. Additionally, approximately 660,000 civil servants are slated to witness real pay raises in January, a first in 14 years.
Acknowledging persisting challenges in the economy and governmental operations that contributed to the financial crisis of the 2010s, Mitsotakis emphasized the necessity for more substantial and comprehensive reforms.
Following the budget vote, the parliament adjourned for the year-end holidays, adhering to customary practice.
