GREECE
Macro/Political:
- Preliminary data released by the MoF showed that the State Budget balance on a modified cash basis for January – December 2025 presented a surplus of EUR 17mn, against the revised target deficit of EUR 2,586mn and a surplus of EUR 369mn for the same period of 2024. The State Budget Primary Balance amounted to a surplus of EUR 8,006mn, against the primary surplus target of EUR 5,327mn and a primary surplus of EUR 8,698mn in the same period of last year. Excluding an amount of EUR 1,930mn euros relating to under execution and time differentiation of transfer payments to general government bodies and cash payments for military procurement programs, which do not affect General Government results in fiscal terms.
For January – December 2025, State Budget net revenues amounted to EUR 76,940mn, showing a decrease of EUR 921mn against the target. State Budget expenditures amounted to EUR 76,922mn, EUR 3,524mn lower than the target.
Source: Ministry of Finance - The turnover for the enterprises of the economy as a whole in November 2025 amounted to EUR 31.29bn recording a decrease of 0.7% (y-o-y).
Source: ELSTAT - The next meeting between Greek Prime Minister Kyriakos Mitsotakis and Turkish President Recep Tayyip Erdogan is expected to take place in February, with the exact date still to be determined. According to Turkish Foreign Minister Hakan Fidan, the aim of the meeting is to permanently resolve issues in the Aegean and to set aside domestic political considerations.
Source: Kathimerini - Farmers leading the toughest road blockades began easing their protests and gradually reopening national highways across the country, meeting a key government condition for talks with those who had previously refused dialogue. Government spokesman Pavlos Marinakis said a meeting between Prime Minister Kyriakos Mitsotakis and the so-called hardliners was agreed in principle for Monday, on the condition that all roads remain open.
Source: Kathimerini
Markets:
- Moody’s, in a Sector In-Depth report on Greek banks, stated that Greek banks’ growth and revenue diversification plans will continue to support their credit quality. Furthermore, according to the credit rating agency, the insurance sector will play a key role in banks strategic growth, as they aim to become modern bancassurance groups. The agency also expects the profitability of the banking sector to continue to increase, alongside the continuation of sustainable dividend distributions. Credit growth is projected at 8-10%, while their NIMs are expected to remain stable, supported by the ECB policy rate, which is projected to remain at 2%.
Source: Moodys - EIB approved EUR 90 mn in financing for Metlen Energy & Metals to support strategic investments at the company’s historic aluminium of Greece industrial complex in Central Greece. These investments aim to strengthen the EU supply of bauxite and gallium, two critical raw materials essential for Europe’s green and digital transitions.
Source: EIB
CYPRUS
Macro/Political:
- The European Commission has approved the national defence plans of eight EU member States, among which that of Cyprus, paving the way for the release of low-interest, long-term loans under the SAFE (Security Action for Europe) initiative. Cyprus will receive EUR 1.18b.
Source: EU Commission - In September 2025, the number of building permits authorized by the municipal authorities in Cyprus stood at 793. During the period January – September 2025, 5,635 building permits were issued compared to 5,485 in the corresponding period of the previous year, recording an increase of 2.7%. The total value of these permits increased by 18.2% and the total area by 21.9%. The number of dwelling units recorded an increase of 22.9%.
Source: CyStat
