The finalized text of the national budget includes a series of permanent fiscal interventions for 2024 and 2025, introducing significant changes in the management of the General Government’s expenditures and revenues.
The new permanent fiscal measures will result in an additional fiscal cost of approximately €1.1 billion in 2025 compared to 2024. These measures focus on supporting disposable income, boosting investments and innovation, addressing demographic and housing issues, and tackling climate change challenges.
Total Costs:
- 2024: €1.84 billion (€1.714 billion in expenditures and €126 million in revenues).
- 2025: €2.955 billion (€2.327 billion in expenditures and €628 million in revenues), an increase of €1.115 billion compared to 2024.
The budget report emphasizes that improving the incomes of workers and pensioners remains a key government priority for 2025.
Key Measures:
- Reduction of Social Security Contributions:
- From January 1, 2025, a 1-percentage-point reduction (0.5% for employees and employers).
- Cost: €440 million.
- Abolition of Business Tax:
- Phased out by January 1, 2025 (50% reduction in 2024).
- Cost: €113 million (2024) and €238 million (2025).
- Refund of Excise Duty on Agricultural Diesel:
- Extended in 2024 and made permanent in 2025.
- Cost: €82 million (2024) and €100 million (2025).
- Pension Increases:
- Adjusted based on inflation and GDP.
- Cost: €424 million (2024) and €398 million (2025).
- Public Sector Wage Reform:
- Effective January 1, 2024, with an additional increase in April 2025.
- Cost: €1.067 billion (2024) and €143 million (2025).
- Income Support for National Health System Doctors:
- Salary increases and tax benefits.
- Cost: €45 million (2024) and €56 million (2025).
Support for Households and Vulnerable Groups:
- Year-end Support: €243 million in December 2024 for 1.9 million beneficiaries (e.g., pensioners, uninsured elderly, and OPEKA recipients).
- Minimum Wage Increase: A further increase beyond €830 in April 2025.
Measures for Innovation, Growth, and Investments:
- Incentives for R&D: Tax reductions and support for startups (€41 million annually).
- Abolition of Landline Tax: For connections with speeds of 100 Mbps or higher (€24 million annually).
- Cruise Fee Introduction: Annual revenue of €52 million.
National Demographic Action Plan:
- Birth Allowance Increase: Raised to €2,400–€3,500 retroactively from January 1, 2023.
- Extended Maternity Allowance: Nine months for self-employed individuals and farmers.
- Tax-Free Income Increase: Additional €1,000 for families with children.
