GREECE
Macro/Political:
- On Wednesday (07/10), Greece will auction 13 Weeks T-Bills with maturity January 8th, 2027. The amount to be auctioned is EUR 400mn.
Source: PDMA
- The first draft of the 2027 Budget will be submitted to Parliament today, with wide-open fronts and alternative scenarios for the evolution of key macroeconomic and fiscal figures. More specifically, the targets of the new Budget are inflation below 3%, with projections for 2026 inflation at 3.6–3.8% and for 2027 to fall to 2.8%. Another target is the continuation of the declining trajectory of government debt, both in terms of the debt-to-GDP ratio and in absolute terms. The projection for the debt-to-GDP ratio for 2026 is 136%, with a further decline to 130% in 2027.
The other target is for Greece to have a debt-to-GDP ratio closer to that of other Eurozone members. As Greece is expected to have a lower debt-to-GDP ratio than Italy this year, the next target is to surpass France and Belgium as well. The fourth target is to maintain GDP growth in the 2% area, with projections of 2% for both 2026 and 2027. The fifth target is to attract more foreign direct investment, as 2027 marks the end of the RRF, which is expected to directly affect the total level of FDI.
The remaining two targets of the draft Budget are to set a new historical record for nominal GDP, with EUR 263bn expected for 2026 and EUR 275bn for 2027. The final target is for 2027 to close without a deficit in general government terms, with primary surpluses above 3% of GDP.
Source: Naftemporiki Print Edition (05 October, pg.3)
- US Secretary of State Marco Rubio is due to arrive in Athens tomorrow, placing defence cooperation at the centre of his visit, which Greek officials view as a reaffirmation of the strategic relationship between Greece and the US. It is important to note that Greece is the only stop on Rubio’s European tour where he is expected to stay for two nights. Furthermore, Athens and Washington have been engaged in detailed discussions over possible defence agreements and military equipment. Greece is seeking access to surplus defence material through the Pentagon’s Excess Defense Articles programme and has expressed interest in Stryker wheeled armoured personnel carriers. The most significant negotiations concern the weapons package for Greece’s future F-35 fighter aircraft. Greece wants approval for AIM-9X Block II and AIM-120D AMRAAM air-to-air missiles, as well as other weapons already certified for the aircraft.
Source: Kathimerini
- Greece repaid EUR 2.5 bn to the EFSF, using part of the proceeds from the reprivatisation of Greek Banks. The decision is linked to the higher cost of EFSF loans compared with those of the ESM. The two European funds retain their rights over the remaining proceeds. EFSF CEO described the repayment as a sign of progress for the Greek economy and banking system. He said proceeds from the reprivatisation of the banks reflected the sector’s recovery following the crisis, while using them to reduce public debt sent a message of confidence to the markets.
Source: Naftemporiki
- Data released by Eurostat showed that the annual inflation in Greece is expected to be 5.1% in September 2026 from 3.7% in August 2026, and 1.8% in September 2025.
Source: Eurostat
CYPRUS
Macro/Political:
- Data released by Eurostat showed that the annual inflation in Cyprus is expected to be 5.2% in September 2026 from 5.2% in August 2026, and 0% in September 2025.
Source: Eurostat
- In July 2026, revenue from tourism reached EUR 536.5mn, recording an increase of 4.6% as compared to the corresponding month of the previous year. For the period of January-July 2026, revenue from tourism is estimated at EUR 1.75bn compared to EUR 1.89bn in the corresponding period of 2025, recording a decrease of 7%.
Source: CyStat
- The Turnover Value Index of Retail Trade (except of motor vehicles) for August 2026 increased by 9.3% compared to the corresponding month of the previous year. For the same month, the Turnover Volume Index of Retail Trade increased by 7% compared to the corresponding month of previous year.
Source: CyStat
