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Greece Boosts Relief Amid Budget Surplus

Bloomberg Markets •
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Greece unveiled a €500 million relief package after its 2025 budget posted a 1.7 % GDP surplus, well above the 0.6 % target. Prime Minister Kyriakos Mitsotakis outlined cash handouts for families with children, expanded renter support, and extended diesel and fertilizer subsidies for families across the country and ensuring price stability for essential goods.

Eurostat and national statistics revealed the surplus beat expectations by a full percentage point, marking the fourth straight year of over‑performance. This fiscal slack gives Athens breathing room to address rising living costs, a top concern in polls amid inflationary pressures from the Iran conflict for households and businesses through policy.

Earlier this month, the government capped profit margins on fuel and groceries until June and rolled out a €300 million subsidy scheme covering diesel, gasoline, and fertilizers, plus targeted aid for coastal shippers. These moves aim to blunt price spikes without upsetting the fragile fiscal equilibrium for Greek consumers and industry.

With a national election looming next spring, Mitsotakis signals that the package is the 'best we can do without disturbing the hard‑earned economic balance,' according to his televised address. The €500 million outlay reinforces Greece’s trajectory back to fiscal normalcy while tempering social discontent for investors and policy makers in the coming term.