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Greece Posts Strong Primary Surplus As Revenues Outpace Budget Targets

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.

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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