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Greece Posts €593.4 Million Fiscal Surplus In Early 2026

The Greek government recorded a modest contraction in its fiscal surplus during the January-April 2026 period, with figures falling to €593.4 million compared to €614 million in the corresponding period of 2025. This development comes as the surplus as a percentage of GDP slipped from 1.7% to 1.5%, according to preliminary data released by the Hellenic Statistical Authority.

Robust Revenue Growth Driven By Tax And Social Contributions

Total government revenue increased by 4% year-on-year to €4.995 billion from €4.801 billion. Income and wealth tax receipts rose by 10.3% to €1.292 billion, while social contributions increased by 8.3% to €1.687 billion. Revenue from taxes on production and imports climbed 2.9% to €1.533 billion, and net VAT receipts grew 5.4% to €1.047 billion. The figures point to continued strength in tax collection despite a softer fiscal balance.

Offsetting Revenue Gains With Declines In Other Income Streams

Growth in tax revenues was partly offset by weaker performance in several other income categories. Revenue from interest and dividends declined by 27.8% to €61.2 million, while current transfers fell 31.2% to €87 million. Income from fees and services also decreased by 12% to €318.4 million.

Increased Expenditures Reflect Shifts In Spending Priorities

Government expenditure rose by 5.1% to €4.402 billion, compared with €4.187 billion in the corresponding period of 2025. Social benefits recorded the largest increase, rising 6.4% to €1.824 billion. Personnel costs increased by 1.9% to €1.295 billion, while interest payments climbed 19.2% to €177.3 million. Other current expenditures rose by 13.6% to €331.7 million, and intermediate consumption increased by 5.1% to €431.2 million.

Capital Spending And Subsector Results

Capital expenditure edged down 0.9% to €320 million. Gross fixed capital formation fell 3.5% to €244.3 million, while subsidies declined by 19.2% to €23.5 million. At the subsector level, the central government surplus narrowed to €166.8 million from €244 million a year earlier. Social Security Organizations improved their surplus to €436.4 million from €389.2 million, while local government deficits decreased to €9.8 million from €19.2 million. The figures suggest that while revenue growth remains resilient, rising spending pressures continue to weigh on Greece’s overall fiscal position.

Limassol Port Electrification Awaits Grid Connection And EU Funding

Plans to equip Limassol port with shore-side electricity are advancing at the technical level, but unresolved administrative procedures, a pending grid connection and the need to secure European funding continue to delay implementation.

The proposed shore-power system, also known as cold ironing, would allow vessels to connect to electricity while berthed, reducing reliance on onboard engines and cutting emissions and noise in the surrounding area.

Technical Studies Near Completion

Transport Minister Evi Tsolaki said work is progressing through the EU-backed DecarbonLim programme, which is preparing the technical assessment and feasibility study required before construction can begin. The ministry is seeking regular updates from the Cyprus Ports Authority on the studies’ completion timetable.

The initiative also involves Frederick University, Eurogate Container Terminal Limassol, DP World Limassol, the Electricity Authority of Cyprus, the Cyprus Transmission System Operator and Limassol Municipality.

Grid Connection Remains A Key Hurdle

Despite progress on the studies, construction cannot proceed until the project secures a connection to the national transmission network.

Tsolaki said the ministry has requested land from the Department of Lands and Surveys for an electricity substation. Once the site is allocated, the relevant applications can be submitted to the Cyprus Transmission System Operator to advance the grid-connection process.

Until these steps are completed, the project will remain in the preparatory phase, even if the technical studies are finalised.

European Funding Adds Urgency

The feasibility work under DecarbonLim will support an application for construction financing, Tsolaki said. A competitive European funding call is currently open, and the ministry intends to submit an application within the required timeframe.

The funding window has raised concerns in parliament. MP Fotini Tsiridou warned that further delays could undermine Cyprus’ chances of securing EU support, noting that similar port electrification projects elsewhere in the bloc have already received funding.

Speaking to Entrepreneurial Limassol, published by the Limassol Chamber of Commerce and Industry, Tsiridou said she had observed some progress but had yet to receive a formal response to her parliamentary question.

Environmental And Commercial Benefits

Tsiridou argued that shore-side electricity would deliver benefits beyond emissions reductions, including less noise and air pollution for residents near the port.

“Our port should not be disconnected from the rest of the city,” she said, describing shore-power infrastructure as both a necessity and a European obligation.

Across Europe, port electrification is increasingly linked to environmental performance and competitiveness. By allowing compatible vessels to switch off auxiliary engines while docked, shore-power systems can reduce local emissions and noise while supporting wider decarbonisation goals.

Construction Timetable Still Unclear

The Cyprus Ports Authority signed a contract with DBA S.p.A. in July 2025 for a comprehensive study of the system’s technical, economic and environmental requirements. The work was intended to establish the basis for installation and identify any necessary port infrastructure upgrades.

More than a year later, key steps concerning land allocation, grid connection and financing remain unresolved. No timetable has been announced for completing these procedures or submitting the final funding application.

Limassol’s shore-power project therefore remains between planning and implementation. Its next milestones are securing the substation site, progressing the transmission-network application and obtaining construction financing. Until these are in place, the port’s transition to shore-side electricity cannot move into the construction phase.

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