Fiscal benefit 2% of GDP for Greece, but stricter rules

New EU fiscal rules are set to bring about greater relief for Greece but will also demand increased efforts, according to Hungarian economist Zsolt Darvas. 

In an interview with Kathimerini, Darvas, a senior fellow at the Brussels-based think tank Bruegel, explains that Greece will be spared from additional fiscal adjustments amounting to around 2 percent of GDP over a four-year period, or 0.5 percent of GDP annually. Nonetheless, he emphasizes that within the new framework, the country will be required to formulate a medium-term fiscal structural plan delineating the necessary investments and reforms to address the challenges highlighted within the European Semester - rendering it a more demanding task. 

Darvas elaborates on why the defense provision wouldn't be applicable to Greece, while also sharing his insights on the Greek debt dynamics extending beyond 2032.