1.9.2023
EN
Official Journal of the European Union
C 312/73
(27)
The 2023 Stability Programme outlines a medium-term fiscal path until 2026.
According to the 2023 Stability Programme, the general government deficit is expected to decline to 0,5 % of GDP in 2025 and to 0,1 % by 2026.
Therefore, the general government deficit is planned to remain below 3 % of GDP over the Programme horizon.
According to the 2023 Stability Programme, the general government debt-to-GDP ratio is expected to decrease from 150,8 % at the end of 2024 to 135,2 % by the end of 2026.
(28)
Building on best practices and reforms undertaken as part of the recovery and resilience plan, modifications to Greece's tax policy framework could help address the investment gap.
More specifically, the introduction of a wider advance tax-ruling system could strengthen legal certainty for investors and increase ongoing efforts to simplify the tax system.
A review of the tax system could also help enlarge the tax base as regards the selfemployed and support investment.
Tax compliance could be improved by extending the application of electronic payments and making increased use of the information that originates from electronic payments, considering in particular recent evidence of a growing disparity between declared low incomes and the apparently rapidly rising turnover of the self-employed.
This could be done, in particular, by making better use of the information that originates from electronic payments for targeted professions.
The ongoing digital transformation of the Inde­ pendent Authority for Public Revenue is expected to contribute to that objective.
However, it is essential that the authority's operational autonomy to manage and develop its HR and IT infrastructure be further increased given the ongoing challenges to tax systems worldwide.
(29)
Greece has continued to take steps to modernise its public administration, but its overall performance remains relatively low.
Following a significant adjustment after 2010, the size and cost of public administration has been broadly aligned with the Union average.
Greece's wage bill remained stable in 2022 at 10,8 % of GDP, slightly above the Union average (10,2 % of GDP).
Ensuring continued application of the unified wage grid, while maintaining current staffing levels through the continued application of the one-in-one-out hiring rule for permanent staff and of the ceiling for temporary staff that was introduced in 2022, will be key to safeguarding those gains.
The recovery and resilience plan contains measures to improve the effectiveness of public adminis­ tration, with a particular focus on improving its digital services.
At the same time, attracting and maintaining high-calibre staff remains a challenge.
This could be addressed in a structural manner through special/supple­ mentary wage grids for specific functions or bodies as well as a well-defined system of allowances introduced as an integral part of the new HR management system, while safeguarding the integrity of the unified wage grid and the overall size of the wage bill.
(30)
In accordance with Article 19(3), point (b), of Regulation (EU) 2021/241 and criterion 2.2 of Annex V to that Regulation, the recovery and resilience plan includes an extensive set of mutually reinforcing reforms and investments to be implemented by 2026.
The implementation of Greece's recovery and resilience plan has so far been well underway.
Going forward, it will be important to maintain the implementation momentum.
Greece submitted three payment requests (16) for non-repayable financial support and two payment requests for loan support, corresponding to 85 milestones and targets in the plan.
To date, Greece has received an overall disbursement of EUR 7 126 million (17).
In accordance with Article 14(6) of Regulation (EU) 2021/241, on 29 March 2023, Greece expressed its intention to request EUR 5 000 million of additional loan support under the Facility.
Greece has made a solid start to implementing its plan and has established a management and control system to monitor and coordinate the timely completion of the reforms and investments.
Going forward, it will be important to maintain and enhance those efforts considering the significant number of reforms and investments that are planned to be implemented, in particular as the completion of a number of those reforms and investments will require timely progress with various preparatory steps, including public procurement procedures.
The continued implementation of the plan depends on the administrative and implementation capacity of the assigned implementing bodies, including the regional and local administration.
The swift inclusion of the new REPowerEU chapter in the recovery and resilience plan will allow additional reforms and investments to be financed in support of Greece's strategic objectives in the field of energy and the green transition.
The systematic and effective involvement of local and regional authorities, social partners and other relevant stakeholders remains important for the successful implementation of the recovery and resilience plan, as well as other economic and employment policies going beyond that plan, in order to ensure broad ownership of the overall policy agenda.
(16) Greece submitted its third payment request for grants on 16 May 2023 and the assessment by the Commission is ongoing.
(17) For grants, the disbursed amount for non-repayable financial support (excluding pre-financing) is EUR 3 436 million and the disbursed amount for loan support (excluding pre-financing) is EUR 3 690 million.