Finance Minister Makis Keravnos expressed confidence on Monday that the 2026 state budget will be approved by parliament.

Speaking after signing a tax avoidance agreement with Vietnam, Keravnos said he expects a “good outcome” from the debate that continues in parliament this week, adding that he believes it will attract majority support from most parties.

On tax reform, Keravnos said discussions are ongoing and aimed at maintaining economic growth while ensuring a fairer distribution of the tax burden.

The budget is currently being discussed by the House finance committee and is set to head to the plenum for a vote on Tuesday.

According to what has been heard at the House finance committee, government revenues are projected at €16.49 billion, an increase of 4.5 per cent compared with 2025, while expenditures are estimated at €15.36 billion, up 5.3 per cent year on year.

Most members of the finance committee have expressed satisfaction with the budget while stressing the need for continued restraint in public spending and greater emphasis on defence expenditure.

Disy acknowledged the positive performance of the economy but raised concerns over the absence of major development investments and warned about the risks associated with further expansion of the public sector payroll.

Akel criticised the budget for generating surpluses without a sufficient social programme and announced it would vote against its approval, the only major party to do so.

Diko said the budget consolidates economic stability, but highlighted risks related to housing affordability, while far right Elam demanded a stronger welfare state.

Edek called for a greater focus on local initiatives but broadly agreed with the budgets proposals approach.