The Council of the European Union has adopted a recommendation outlining fiscal, structural, and reform policies for Greece, urging the country to adhere to specific net expenditure growth limits and continue modernising its economy. The recommendation, dated 22 June 2026 and scheduled for adoption at the Council meeting on 24 June 2026, sets maximum net expenditure growth rates of 3.6% in 2026, 3.1% in 2027, and 3.0% in 2028, with cumulative growth from the 2023 base year reaching 10.3%, 13.7%, and 17.1% respectively. The national escape clause is activated for 2025-2028, allowing deviation from these rates for increased defence spending, following Greece's request on 8 July 2025.
The recommendation notes that Greece is no longer experiencing macroeconomic imbalances as of 3 June 2026, with vulnerabilities related to government and external debt having receded. The Commission projects a general government surplus of 0.8% of GDP in 2026 and 0.6% in 2027, while the debt-to-GDP ratio is projected to fall to 140.7% by end-2026 and 134.4% by end-2027. Greece is also urged to sustain tax compliance gains by maintaining IT systems, evaluate and rationalise 1,236 tax expenditures, and complete customs centralisation at major entry points including the Port of Piraeus.
On the structural front, Greece should continue applying the unified wage grid and maintain staffing levels, with a codified law for multi-level governance expected in 2026. The Council also calls for accelerating the resolution of non-performing loans held by credit servicers, addressing judicial delays in pre- and post-auction disputes. Additionally, Greece should ensure rapid deployment of cohesion policy investments, particularly in innovation, waste management, public urban transport, railways, and retaining human capital outside the capital region.
The recommendation impacts several stakeholders. Greek taxpayers and businesses will face continued fiscal discipline, with net expenditure limits constraining public spending but defence flexibility offering some relief. The banking sector and credit servicers will be affected by the push to resolve non-performing loans, potentially reducing their burden but requiring operational changes. Public administration and local governments will need to implement tax compliance measures and multi-level governance reforms. EU institutions and other member states will monitor Greece's compliance as part of the broader economic surveillance framework.
The Council recommendation is non-binding but carries significant political weight, forming part of the European Semester cycle. The European Commission will assess Greece's progress in subsequent reports, and the Council may issue further recommendations if needed.