Greece must continue along the path of fiscal stability and further reduction of its debt, and claim equal treatment in the negotiations to boost defense expenditures in the European Union, the Hellenic Parliamentary Budget Office said in a Research Note posted on Monday.

It also noted,"The ReArm Europe plan should not be seen as a break from fiscal prudence, but rather as an opportunity to substitute national public funds with common EU funding to finance planned defense spending and develop its defense industry."

The Research Note on "Fiscal Space and Sovereign Bond Market Developments in Selected European Economies" was authored by Alexandros Kontonikas (University of Essex Business School profesor) and John Tsoukalas (Coordinator of the Hellenic Parliamentary Budget Office and University of Glasgow Adam Smith Business School professor in the Economics Department).

The paper (in English) is available for download on the Greek Parliament site, https://www.pbo.gr/en-gb/reports/research-notes/fiscal-space-and-sovereign-bond-market-developments-in-selected-european-economies.