The Commission positively assesses the progress in the implementation of Greece’s medium-term plan

The European Commission positively assesses the progress regarding the implementation of Greece’s medium-term plan, within the framework of the spring package of the European Semester that was made public.

Specifically, the Commission evaluated the progress regarding the implementation of the medium-term plans of 18 member states submitted last autumn. 

For 12 member states (Greece, Austria, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, Latvia, Lithuania, Slovenia, Sweden), the Commission assesses their medium-term plans as “compliant with the recommended maximum increase in net expenditures, taking into account the flexibility under the national escape clause, as applicable”.

 Portugal and Spain are generally compliant, with limited deviations from their recommended paths. However, for Cyprus, Ireland, Luxembourg, and the Netherlands, the Commission considers that there is a risk of deviation from the recommended maximum growth rates set by the Council.

Regarding the member states subject to excessive deficit procedure (EDP), the Commission considers that for France, Italy, Hungary, Malta, Poland, and Slovakia, no further measures need to be taken under the EDP for these countries at this stage.

For Belgium, following the submission of its medium-term plan, the Commission recommended a new corrective path, which is currently pending approval from the Council.  In contrast, Romania’s increase in net expenditures significantly exceeds the upper limit set by its corrective path; therefore, the Commission finds that Romania has not taken effective measures. For Austria, the Commission considers that the initiation of excessive deficit procedure is justified.

ASSESSMENT OF MACROECONOMIC IMBALANCES

According to the Commission’s assessment, Greece, Hungary, Italy, the Netherlands, Slovakia, and Sweden continue to face macroeconomic imbalances, as their vulnerabilities remain overall significant.

Cyprus is classified among the countries that “do not face imbalances,” as vulnerabilities related to its external and private debt are receding, partly due to strong economic growth, while public debt is decreasing thanks to ongoing fiscal surpluses.

Germany is also classified as a country that “does not face imbalances,” as vulnerabilities related to the large current account surplus have diminished over the years, and significant policy progress was recently announced.

Romania continues to face excessive imbalances. (4/6/25)