Stability and Growth Pact

Last year's primary surplus in Greece proved significantly higher than the budget estimate for 1.1% of gross domestic product, reaching 1.9% of GDP and making it easier to meet this year's target of 2.1% of GDP.

September 20 will most likely be the day on which the member-states of the European Union will submit their first four-year budgetary-structural plans, based on the rules of the new Stability Pact.

The European Union finance ministers reached a compromise agreement for the new Stability and Growth Pact on Wednesday during an Ecofin teleconference, after weeks of arduous consultations on the new reform framework on the pace of debt and deficit reduction by member-states.

The European Union's new fiscal rules should ensure both fiscal discipline and economic growth, while considering countries with high defense spending, noted Greek National Economy and Finance Minister Kostis Hatzidakis on Thursday.

The European Commission recommended to Bulgaria to end the energy support measures for businesses, to emphasize the real implementation of the Recovery Plan and to reduce the deficit in the draft budget proposed by the Cabinet.

The balance of the general government eventually crossed into positive territory from as early as last year, with a primary surplus of 0.1% of gross domestic product or 273 million euros, against a forecast in the 2023 budget for a deficit of 1.6% of GDP or €3.4 billion, according to data published on Friday by ELSTAT and Eurostat, in the context of the European Union's excessive deficit proced

The International Monetary Fund sees Greece returning to fiscal consolidation, with systematic achievement of primary surpluses and debt deleveraging in the coming years, per its spring fiscal report, published on Wednesday.

Economic powerhouse Germany wants EU members to be given binding targets to slash their debts under new spending rules being prepared by Brussels, a document seen by AFP has showed.

In November, the European Commission, the EU's executive arm, put forward plans to reform the Stability and Growth Pact that limits how much EU countries can borrow.

European governments have spent hand over fist, despite ballooning public debt, to prevent the coronavirus pandemic from triggering economic calamity.

Now, the European Union faces calls to loosen its budget rules to allow the largesse to continue, but the topic is a sensitive one for many member states.

The draft budget amendment weakens the budgetary consolidation as it was announced for 2021, the Fiscal Council said on Thursday night, in a release.