Multiannual Fiscal Programming 2026–2029: What It Foresees for Wages, Pensions, Taxes and Debt through 2029
The 2026 State Budget and the first Multiannual Fiscal Programming (MFP) for 2026–2029 were presented to the Cabinet by Minister of National Economy and Finance Kyriakos Pierrakakis and Deputy Minister Thanos Petralias. The MFP is prepared for the first time under Law 5217/2025, which transposed Council Directive (EU) 2024/1265 (29 April 2024) on fiscal framework requirements for Member States into national law (Law 5217/2025; Directive (EU) 2024/1265).
The MFP must be approved by the Cabinet prior to the parliamentary vote on the state budget and sets specific fiscal targets on a four‑year horizon. The inaugural MFP covers 2026–2029 and aligns with the limits set in the current Medium‑Term Fiscal‑Structural Plan (MTFP) 2025–2028, submitted in October 2024 and approved by the European Council.
Overview of fiscal interventions and cost trajectory - The MFP 2026–2029 includes all fiscal interventions that have been legislated or announced for 2026–2029. - Total cost of interventions: - 2025: €3.04 billion - 2026: €5.94 billion (+€2.90 bn vs. 2025) - 2027: €7.94 billion (+€2.00 bn vs. 2026) - 2028: €9.01 billion (+€1.07 bn vs. 2027) - 2029: €10.10 billion (+€1.09 bn vs. 2028)
Key measures included for 2026–2029 (not exhaustive) - Full removal from 2027 of the offsetting of pension increases against retirees’ personal differences (i.e., ending the practice that reduces pension increases by personal difference amounts). - Full abolition of the ENFIA property tax on main residences in settlements with population up to 1,500 from 2027. - Significant tax reduction for self‑employed professionals in their 2026 income tax settlements (declared in 2027). - Additional 0.5 percentage point cut in social insurance contributions from 2027 as announced. - Large reduction in income tax liabilities for property owners in the 2026 tax year (declared in 2027) owing to lower property tax. - Income tax exemption for foundations and bequests for the 2026 tax year (apparent in 2027 returns). - Annual increases in public sector wages tied to increases in the statutory minimum wage. - Annual pension increases indexed to growth and inflation. - Substantial increases in the National Public Investment Programme: €3.3 bn in 2026, rising to €3.6 bn in 2027, €3.9 bn in 2028 and €4.0 bn in 2029.
Macroeconomic forecasts and fiscal outlook - The MTFP submitted in October 2024 had real GDP growth projections of: 2.0% (2026), 1.5% (2027), 1.3% (2028) and 0.4% (2029). - Those growth forecasts have been revised upward in the MFP to: 2.4% for 2026 (+0.4 pp), 1.7% for 2027 (+0.2 pp), 1.6% for 2028 (+0.3 pp) and 1.3% for 2029 (+0.9 pp). The upward revisions reflect policy measures announced at the Thessaloniki International Fair and in April 2025, higher public investment allocations than previously assumed, and structural reforms that improve medium‑term prospects (Ministry of Finance). - The estimates assume completion of the Recovery and Resilience Facility by 2026 and do not include potential new interventions for 2027–2029. - Inflation is expected to average around 2.2%–2.3% in 2026–2029. - Average annual unemployment is forecast to fall below 8% by the end of the period. - The primary balance of the general government is projected at 2.8% of GDP in 2026 and 2.7% in 2027–2029. - Public debt is projected to decline sharply from 145.9% of GDP in 2025 to 119.0% in 2029.
Supporting documents and presentations - The Ministry of Finance has published the Multiannual Fiscal Programming 2026–2029 and the presentation delivered to the Cabinet alongside the 2026 Budget. See the full MFP 2026–2029 and the Cabinet presentation for detailed tables and assumptions (Ministry of Finance).
