New Democracy tax pledges put spotlight on available fiscal space

EconomyProgramme Tags: ESM, Eurogroup, Mitsotakis, New Democracy, Taxes
Photo by MacroPolis
Photo by MacroPolis

Following the announcement by Prime Minister Kyriakos Mitsotakis on Saturday of immediate tax cuts, with others to follow, focus is turning to the government’s ability to find the fiscal space necessary to implement the measures while also meeting the primary surplus target for this year and 2020.

Mitsotakis made it clear in his speech in Parliament that the government will not challenge the 3.5 percent of GDP primary surplus target for this year or next. He indicated that New Democracy plans to start discussing the issue, and pushing for lower t...

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