Breaking news

Cyprus Achieves Largest Debt Reduction in Eurozone

by THEFUTURE.TEAM

Cyprus made significant strides in reducing its government debt, with the debt-to-GDP ratio falling to 70.5% by the end of the second quarter of 2024, according to Eurostat. This represents the largest decrease in the eurozone, with a 2.1% drop from Q1 2024 and a notable 10% reduction from Q2 2023.

In contrast, both the eurozone and the EU saw slight increases in their debt-to-GDP ratios. The eurozone’s ratio increased to 88.1% (up from 87.8% in Q1 2024), and the EU’s rose to 81.5% (up from 81.3%).

Despite Cyprus’ success, some countries continue to struggle with high debt levels. Greece and Italy recorded the highest ratios at 163.6% and 137.0%, respectively. Meanwhile, Bulgaria and Estonia maintained the lowest ratios at 22.1% and 23.8%.

The eurozone’s government debt is largely composed of debt securities, accounting for 84% of the total, while intergovernmental lending made up 1.5% of GDP.

Cyprus’ impressive debt reduction stands in contrast to the increases seen in countries such as Finland and Austria, demonstrating the country’s effective fiscal management amid global economic pressures.

Greece Posts Strong Primary Surplus As Revenues Outpace Budget Targets

by THEFUTURE.TEAM

Greece recorded a primary surplus of €5.77 billion in the first seven months of 2026, exceeding the €4.42 billion target set in the state budget, according to budget execution data released this week.

The broader state budget balance showed a €344 million deficit for the period, significantly below the €1.32 billion shortfall projected in the budget.

Revenue Exceeds Forecast

Net state budget revenue reached €45.26 billion, €2.03 billion above target. Even after excluding €884 million received earlier than scheduled from the Recovery and Resilience Facility, revenue remained €2.40 billion, or 5.7%, above the revised target.

Tax revenue excluding exceptional items stood at €42.35 billion, €990 million above forecast. VAT generated €17.74 billion, while income tax brought in €15.07 billion. Excise duties were weaker, falling €224 million short of target at €3.96 billion.

Transfers generated €4.22 billion, €91 million above target, while other current revenues reached €1.87 billion, €455 million above expectations.

Exceptional Payments Affect Comparisons

Several timing differences and one-off receipts affected the comparison with the budget. These included €135 million from a casino concession at Elliniko and €306 million in VAT related to the 35-year Egnatia motorway concession.

The government also recorded €510 million in public investment programme payments that differed from the original timing, along with €406 million in delayed transfers to general government entities. After adjusting for these items and the casino payment, the primary surplus was €302 million above target.

Officials noted that the primary balance calculated on a fiscal basis differs from the cash-based figure and that the data cover central government rather than the entire general government sector.

Spending And Investment Increase

State spending reached €45.60 billion in the first seven months, €1.05 billion above the budget target and €4.92 billion higher than a year earlier.

Major expenditures included €1.24 billion for the National Organisation for the Provision of Health Services, €1.82 billion for welfare benefits and €915 million for medicines and healthcare supplies. Hospitals and primary healthcare facilities received another €801 million, while public transport organisations received €244 million.

Investment spending rose particularly strongly to €7.60 billion, €855 million above target and €1.47 billion higher than in the same period of 2025. The increase was largely linked to faster implementation of projects financed through the Recovery and Resilience Facility.

July Revenue Beats Monthly Target

July net revenue reached €9.25 billion, €946 million above the monthly target. Public investment programme receipts exceeded the forecast by €363 million, while the state also received €234 million from the Modernisation Fund that had not been included in the 2026 budget projection.

Tax revenue reached €8.97 billion, €406 million or 4.7% above target. VAT receipts were €167 million higher than forecast, while income tax revenue exceeded expectations by €147 million. Public investment programme revenue totalled €418 million in July, compared with a budget target of €55 million.

The figures show stronger-than-budgeted revenue collection alongside higher investment spending during the first seven months of 2026.

The Future Forbes Realty Global Properties
Aretilaw firm
Uol
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter