A major achievement for Greece in its economic recovery process comes with the positive comments about Greek economic planning being made by European officials currently. The European Commission’s recent rating is a very important endorsement of Greek economic control and vision because this comes at a time when most member nations of the Eurozone continue to come under the scanner for economic policies.
Twelve countries in the Eurozone receive full ‘compliance’ status
The European Commission has adopted positive assessments for Greece’s 2026 draft budgetary plan and medium-term fiscal stance in the Autumn Package of the European Semester, released on Tuesday. European Economy Commissioner Valdis Dombrovskis introduced the broad assessments of 17 out of 20 member nations within the Eurozone, with only Belgium, Spain, and Austria being excluded from the assessments. This is a wide-ranging exercise showing the Commission’s commitment to fiscal discipline within the monetary union.
Greece satisfied a group of eleven other member nations—Cyprus, Estonia, Finland, France, Germany, Ireland, Italy, Latvia, Luxembourg, Portugal, and Slovakia—to fully comply with the fiscal recommendations of the Council’s decision. The member states showed compliance with recommended net expenditures, besides being called upon to follow through with budget policies in 2026. The recognition makes Greece one of the most financially prudent nations within Europe, considering its past performance within the economy.
It included criteria such as flexibility provisions regarding increased military spending, echoing a need for present-day European security priorities. However, since a total of sixteen member states were subject to the activation of the escape clause within the national framework, defense outlay flexibility provisions were taken into account in the Commission’s evaluations in these nations.
Five member states have warnings regarding compliance
The Commission has detected deficit paths of worrying fiscal impact among five member states within the eurozone, highlighting risks of non-compliance with established guidelines among Croatia, Lithuania, and Slovenia. The budget situation of the Netherlands and Malta is much worse, with a significant possibility of non-compliance due to fiscal risks concerning eurozone stability. The member states were given a direct recommendation to take corrective action related to ensuring the fiscal paths of 2026 comply with European Union guidelines.
“Twelve member states, namely Greece, Cyprus, Estonia, Finland, France, Germany, Ireland, Italy, Latvia, Luxembourg, Portugal, and Slovakia, were found in full compliance with the fiscal recommendations issued by the Council, and they were encouraged to follow through with the budget policies earmarked for 2026,”
Apart from the eurozone, the Commission has made an assessment of fiscal surveillance among member states, deeming seven member states fully compliant with the established standards, namely Austria, Belgium, Czechia, Denmark, Sweden, Poland, and Romania. Conversely, three member states—Bulgaria, Hungary, and Spain—are potentially non-compliant within the European Union’s varying economic setting.
Recovery plans must be completed by the August deadline
Nine member states, including Austria, Belgium, France, Hungary, Italy, Malta, Poland, Romania, and Slovakia, continue to be addressed within the Excessive Deficit Procedure, although temporarily waived given today’s economic situation. The nine member states have commitments to see deficit levels below 3% of GDP, with a re-evaluation by the Commission due in the spring of 2026 when full-year 2025 financial information is available. The Commission stressed the need for a rapid implementation of RRPs by August 31, 2026, ensuring full utilization of European Union finances allocated for post-pandemic economic recovery.
The positive budget outlook for Greece is a significant step forward in the economic recovery of the country, proof of a smooth execution of fiscal reforms and economic strategy. The support of the European Commission proves Greek dedication to prudent governance, although some challenges need to be addressed by other nations within the euro area, which may be struggling with the economic conditions in Europe today.
