It is rare for the IMF to hand out praise in its reports, speaking of “huge achievements.” For Greece in 2026, however, it did.

The head of the mission, Joong Shik Kang, presenting the conclusions of the Article IV Consultation, did not hold back: public debt fell by 65 percentage points over five years—to 145% of GDP. For 2025, the primary surplus exceeded 4% of GDP, compared to a 3.7% budget target. Tourism broke every record, while unemployment dropped to its lowest level since the Global Financial Crisis.

Praise…

The commendations mainly concern:

– Public debt trajectory: Kang described it as a “huge achievement.” For an international organization like the IMF—usually strict in tone (especially on debt issues)—this sounds almost like a cheer.

– Energy price pressures: The IMF highlights the fiscal strength that allows support measures (instead of austerity), but recommends that any aid to households amid the new global crisis be “targeted and temporary,” not broad and generalized. In other words, it cautions against sweeping support packages that could distort markets and public finances.

– The “post-Recovery Fund era”: The IMF appears optimistic, noting that for three years after the end of the Recovery Fund in August 2026, investments will continue through its loan programs. Greece is also expected to benefit from future European funds, while private investment is set to continue.

…but also a “to-do list”

After the praise come the recommendations. The IMF clearly states that fiscal policy should now shift toward purchasing power and housing. A surplus alone is no longer enough as an end goal—the recovery must now be felt in citizens’ wallets.

Among other things, in its statement following the mission’s visit for the annual Article IV report, the IMF proposes:

– Adjustments and indexation of tax brackets and the tax-free threshold: It recommends a transparent mechanism to adjust income tax scales so inflation does not silently erode real household incomes—the so-called “bracket creep.” In practice, tax brackets would be updated annually so taxpayers are not pushed into higher tax bands as wages rise.

– A major caveat: At the same time, the IMF calls for the abolition of certain tax exemptions (referred to as “tax expenditures” in the state budget). This could put benefits such as the reduced VAT on islands (by 30%) and various exemptions for households and professionals under scrutiny. However, the IMF suggests a multi-year evaluation framework—meaning not all relief measures should be abolished, but rather regularly reviewed and retained only if fair and effective.

– Public procurement: It recommends centralizing, supervising, and expanding e-procurement systems to improve the efficiency of public investment execution.