Economic Sustainability
#29Key Findings
Greece falls into the sample’s bottom ranks (rank 29) with regard to economic sustainability.
The state has adopted a circular economy strategy, but the country’s per capita material footprint is still the highest in the OECD. Recycling performance is poor overall. The government has a clear roadmap for updating and protecting critical infrastructure. The plan for transitioning to a decarbonized energy system by 2050 includes binding goals.
Greece’s unemployment rate has significantly improved since the crisis. Youth unemployment remains a very serious concern, and employment rates are low. Labor market policies have largely been passive, but a new law aims to enhance the vocational education system.
Tax evasion is a serious problem, hampering the ability to generate sufficient funds. Fiscal resilience has improved dramatically since the crisis. Public debt is falling rapidly, though overall remains the EU’s highest, and debt-service costs are high. The country has the OECD’s highest environmental taxes relative to total revenues.
The state has adopted a circular economy strategy, but the country’s per capita material footprint is still the highest in the OECD. Recycling performance is poor overall. The government has a clear roadmap for updating and protecting critical infrastructure. The plan for transitioning to a decarbonized energy system by 2050 includes binding goals.
Greece’s unemployment rate has significantly improved since the crisis. Youth unemployment remains a very serious concern, and employment rates are low. Labor market policies have largely been passive, but a new law aims to enhance the vocational education system.
Tax evasion is a serious problem, hampering the ability to generate sufficient funds. Fiscal resilience has improved dramatically since the crisis. Public debt is falling rapidly, though overall remains the EU’s highest, and debt-service costs are high. The country has the OECD’s highest environmental taxes relative to total revenues.
Graph View
Graph View
How committed is the government to driving the transition toward a circular economy?
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9
The government is clearly committed to transitioning to a circular economy.
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6
7
6
The government is largely committed to transitioning to a circular economy.
5
4
3
4
3
The government is somewhat committed to transitioning to a circular economy.
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1
1
The government is not at all committed to transitioning to a circular economy.
Since 2018, Greece has pursued a policy aimed at reducing the consumption of scarce resources, cutting emissions of climate-damaging substances, and minimizing waste production. In 2022, the government introduced the National Circular Economy Action Plan (National CEAP) for the 2021–2025 period to further these efforts.
Greece has identified key sectors for focused policy attention, including electronics, information and communications technology (ICT), batteries, vehicles, packaging, plastics, textiles, construction, buildings, food, and water and nutrients (European Environmental Agency 2022: 6 and 9). In 2023, the Life Integrated Project was launched to monitor the implementation of the National CEAP Plan (CircularGreece 2023).
The Ministry of Environment and Energy has adopted a circular economy model (YPEN 2024). However, the concept remains relatively new to the Greek public. While the material footprint of Greeks has decreased over time, it is still among the highest in the OECD (OECD 2019). A 2021 public survey revealed that administrative hurdles and consumer behavior are the most significant barriers to transitioning to a circular economy (European Environmental Agency 2022: 37).
Regarding green public procurement, Greece has implemented a Green Public Procurement Action Plan for 2021–2023, setting targets for 15 product and service categories, with goals ranging from 20% to 80% of public procurements depending on the category (European Environmental Agency 2022: 20).
Greece’s industrial production of durable goods is limited compared to larger EU economies, leading to reliance on imports. Although the government has not yet fostered a market for used and refurbished products, NGOs and private companies in various cities have begun to take initiatives.
Recycling, managed by municipalities, has shown uneven results, and Greece ranks among the worst performers in the EU for recycling rates of all waste except major mineral waste (Eurostat 2022). However, 15 Greek municipalities have installed marine litter collection stations that collect plastic waste from the seabed, sea, and coasts. The collected materials are then distributed to companies involved in upcycling, with the aim of producing new plastic products (European Environmental Agency 2022: 31).
Greece’s National Recovery and Resilience Plan includes measures for waste management reform, energy renovation of buildings, and support for e-mobility (Greek Government 2024).
Citations:
CircularGreece. 2023. “CircularGreece.” https://circulargreece.gr/
European Environmental Agency. 2022. “Circular Economy Policy Innovation and Good Practice in Member States.” https://www.eionet.europa.eu/etcs/etc-ce/products/draft-report-for-dg-env_final.pdf
Eurostat. 2021. “Recycling rate of all waste excluding major mineral waste.” https://ec.europa.eu/eurostat/da
tabrowser/view/CEI_WM010/default/table?lang=en
Greek Government. 2024. “Greece 2.0 – The Complete Plan.” https://greece20.gov.gr/en/the-complete-plan/
OECD. 2019. “Material Footprint Per Capita.” Environment – Material Resources. https://stats.oecd.org/Index.aspx?
YPEN. 2024. “Circular Economy.” https://ypen.gov.gr/perivallon/kykliki-oikonomia/#:~:text=%CE%97%20%CE%BA%CF%85%CE%BA%CE%BB%CE%B9%CE%BA%CE%AE%20%CE%BF%CE%B9%CE%BA%CE%BF%CE%BD%CE%BF%CE%BC%CE%AF%CE%B1%20%CE%B5%CE%AF%CE%BD%CE%B1%CE%B9%20%CE%AD%CE%BD%CE%B1,%CE%BA%CE%B1%CE%B9%20%CF%80%CE%B9%CE%BF%20%C2%AB%CF%80%CF%81%CE%AC%CF%83%CE%B9%CE%BD%CE%BF%CF%85%CF%82%20%CF%80%CF%8C%CF%81%CE%BF%CF%85%CF%82%C2%BB
Greece has identified key sectors for focused policy attention, including electronics, information and communications technology (ICT), batteries, vehicles, packaging, plastics, textiles, construction, buildings, food, and water and nutrients (European Environmental Agency 2022: 6 and 9). In 2023, the Life Integrated Project was launched to monitor the implementation of the National CEAP Plan (CircularGreece 2023).
The Ministry of Environment and Energy has adopted a circular economy model (YPEN 2024). However, the concept remains relatively new to the Greek public. While the material footprint of Greeks has decreased over time, it is still among the highest in the OECD (OECD 2019). A 2021 public survey revealed that administrative hurdles and consumer behavior are the most significant barriers to transitioning to a circular economy (European Environmental Agency 2022: 37).
Regarding green public procurement, Greece has implemented a Green Public Procurement Action Plan for 2021–2023, setting targets for 15 product and service categories, with goals ranging from 20% to 80% of public procurements depending on the category (European Environmental Agency 2022: 20).
Greece’s industrial production of durable goods is limited compared to larger EU economies, leading to reliance on imports. Although the government has not yet fostered a market for used and refurbished products, NGOs and private companies in various cities have begun to take initiatives.
Recycling, managed by municipalities, has shown uneven results, and Greece ranks among the worst performers in the EU for recycling rates of all waste except major mineral waste (Eurostat 2022). However, 15 Greek municipalities have installed marine litter collection stations that collect plastic waste from the seabed, sea, and coasts. The collected materials are then distributed to companies involved in upcycling, with the aim of producing new plastic products (European Environmental Agency 2022: 31).
Greece’s National Recovery and Resilience Plan includes measures for waste management reform, energy renovation of buildings, and support for e-mobility (Greek Government 2024).
Citations:
CircularGreece. 2023. “CircularGreece.” https://circulargreece.gr/
European Environmental Agency. 2022. “Circular Economy Policy Innovation and Good Practice in Member States.” https://www.eionet.europa.eu/etcs/etc-ce/products/draft-report-for-dg-env_final.pdf
Eurostat. 2021. “Recycling rate of all waste excluding major mineral waste.” https://ec.europa.eu/eurostat/da
tabrowser/view/CEI_WM010/default/table?lang=en
Greek Government. 2024. “Greece 2.0 – The Complete Plan.” https://greece20.gov.gr/en/the-complete-plan/
OECD. 2019. “Material Footprint Per Capita.” Environment – Material Resources. https://stats.oecd.org/Index.aspx?
YPEN. 2024. “Circular Economy.” https://ypen.gov.gr/perivallon/kykliki-oikonomia/#:~:text=%CE%97%20%CE%BA%CF%85%CE%BA%CE%BB%CE%B9%CE%BA%CE%AE%20%CE%BF%CE%B9%CE%BA%CE%BF%CE%BD%CE%BF%CE%BC%CE%AF%CE%B1%20%CE%B5%CE%AF%CE%BD%CE%B1%CE%B9%20%CE%AD%CE%BD%CE%B1,%CE%BA%CE%B1%CE%B9%20%CF%80%CE%B9%CE%BF%20%C2%AB%CF%80%CF%81%CE%AC%CF%83%CE%B9%CE%BD%CE%BF%CF%85%CF%82%20%CF%80%CF%8C%CF%81%CE%BF%CF%85%CF%82%C2%BB
Graph View
How committed is the government to updating and protecting critical infrastructure?
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The government is clearly committed to updating basic technical infrastructure.
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The government is largely committed to updating basic technical infrastructure.
5
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3
The government is somewhat committed to updating basic technical infrastructure.
2
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1
The government is not at all committed to updating basic technical infrastructure.
Greece has established a clear strategy and roadmap for updating and protecting critical infrastructure, as outlined in the national reform program (Hellenic Republic 2023) and the “Greece 2.0” Recovery and Resilience Plan agreed upon with the EU (Greek Government 2023). The strategy is binding, reinforced by legislation from the Ministry of Infrastructure and Transport, and adopted by the Greek parliament.
This strategy is detailed in sector-specific action plans, including the “National Action Plan of the Ministry of Infrastructure and Transport” (Ministry of Infrastructure and Transport 2022) and the “Green Transition” and “Digital Transformation” pillars of the “Greece 2.0” plan (Greek Government 2023).
Greece has prioritized enhancing points of entry to increase interconnections and export capabilities, aiming to attract private investment while dedicating public funds to upgrading Aegean Sea ports, national highways, and airports – often through public-private partnerships. However, rail infrastructure has been neglected, as highlighted by a fatal railway accident in February 2023. Railways’ share in inland passenger and freight transport remains minimal compared to buses and trucks (Eurostat 2021a and 2021b).
Regarding energy infrastructure, Greece plans to cease lignite plant operations by 2028, shifting toward renewable energy sources and increasing its capacity to import non-Russian natural gas, committing significant infrastructure investments (International Trade Administration 2023).
In digital infrastructure, the government’s strategy, outlined in the National Reform and “Greece 2.0” plans, includes an annually updated action plan for digital transformation (Ministry of Digital Transformation 2023). Greece’s cybersecurity measures for digital infrastructure are comparable to or exceed those of other EU Member States (International Telecommunication Union 2020: 114).
The Ministry of Infrastructure and Transport leads critical infrastructure projects like roads, ports, airports, and railways, while the Ministry of Digital Governance oversees digital infrastructure. Local executive agencies, such as port authorities, upgrade infrastructure under ministry supervision, and regional projects are managed by regional governments, with central government oversight to ensure effective implementation. Central units regularly monitor, update, and publish policy measures annually (e.g., Ministry of Infrastructure and Transport 2024).
Challenges in implementing these strategies include supply chain shortages, raw material availability, price increases, and limited labor (International Trade Administration 2023).
In summary, while Greece previously ranked poorly among OECD countries for infrastructure quality (World Economic Forum 2019), significant improvements have been made in national roads, ports, airports, and digital infrastructure. Greece has made substantial progress in internet coverage and speed; by mid-2021, 91.7% of Greek households had access to high-speed broadband services (European Commission 2022: 103).
Citations:
European Commission. 2022. “Broadband Coverage in Europe 2021.” https://digital-strategy.ec.europa.eu/en/library/broadband-coverage-europe-2021
Eurostat. 2021a. “Share of buses and trains in inland passenger transport.” https://ec.europa.e
u/eurostat/databrowser/view/sdg_09_50/default/table?lang=en
Eurostat. 2021. “Share of rail and inland waterways in inland freight transport.” https://ec.europa.eu/eurostat/databrowser/view/sdg_09_60/default/table?lang=en
Eurostat. 2021. “High Speed Internet Coverage by Type of Area.” https://ec.europa.eu/eurostat/da
tabrowser/view/sdg_17_60/default/table?lang=en
Greek Government. 2023. “Greece 2.0 – Pillars and Components.” https://greece20.gov.gr/en/pillars-and-components/
Hellenic Republic. 2023. “National Reform Programme 2023.” https://commission.europa.eu/system/files/2023-05/Greece%20NRP%202023.pdf
International Telecommunication Union. 2020. “Global Cybersecurity Index 2020.” https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-GCI.01-2021-PDF-E.pdf
International Trade Administration. 2023. “Greece – Country Commercial Guide – Infrastructure.” https://www.trade.gov/country-commercial-guides/greece-infrastructure
Ministry of Digital Transformation. 2023. “Annual Action Plan 2023.” https://mindigital.gr/wp-content/uploads/2023/02/%CE%95%CE%A0%CE%99%CE%A4%CE%95%CE%9B%CE%99%CE%9A%CE%97_%CE%A3%CE%A5%CE%9D%CE%9F%CE%A8%CE%97_%CE%95%CE%A3%CE%94-2023_%CE%A5%CE%A8%CE%94.pdf
Ministry of Infrastructure and Transport. 2022. “National Action Plan 2022.” https://www.government.gov.gr/wp-content/uploads/2021/12/yp_upodomon_2022.pdf
Ministry of Infrastructure and Transport. 2024. “Annual Action Plan 2024.” https://www.ggde.gr/images/attachments/esd_2024_ypyme.pdf
World Economic Forum. 2019. “Global Competitiveness Report.” https://www.weforum.org/publications/global-competitiveness-report-2019/
This strategy is detailed in sector-specific action plans, including the “National Action Plan of the Ministry of Infrastructure and Transport” (Ministry of Infrastructure and Transport 2022) and the “Green Transition” and “Digital Transformation” pillars of the “Greece 2.0” plan (Greek Government 2023).
Greece has prioritized enhancing points of entry to increase interconnections and export capabilities, aiming to attract private investment while dedicating public funds to upgrading Aegean Sea ports, national highways, and airports – often through public-private partnerships. However, rail infrastructure has been neglected, as highlighted by a fatal railway accident in February 2023. Railways’ share in inland passenger and freight transport remains minimal compared to buses and trucks (Eurostat 2021a and 2021b).
Regarding energy infrastructure, Greece plans to cease lignite plant operations by 2028, shifting toward renewable energy sources and increasing its capacity to import non-Russian natural gas, committing significant infrastructure investments (International Trade Administration 2023).
In digital infrastructure, the government’s strategy, outlined in the National Reform and “Greece 2.0” plans, includes an annually updated action plan for digital transformation (Ministry of Digital Transformation 2023). Greece’s cybersecurity measures for digital infrastructure are comparable to or exceed those of other EU Member States (International Telecommunication Union 2020: 114).
The Ministry of Infrastructure and Transport leads critical infrastructure projects like roads, ports, airports, and railways, while the Ministry of Digital Governance oversees digital infrastructure. Local executive agencies, such as port authorities, upgrade infrastructure under ministry supervision, and regional projects are managed by regional governments, with central government oversight to ensure effective implementation. Central units regularly monitor, update, and publish policy measures annually (e.g., Ministry of Infrastructure and Transport 2024).
Challenges in implementing these strategies include supply chain shortages, raw material availability, price increases, and limited labor (International Trade Administration 2023).
In summary, while Greece previously ranked poorly among OECD countries for infrastructure quality (World Economic Forum 2019), significant improvements have been made in national roads, ports, airports, and digital infrastructure. Greece has made substantial progress in internet coverage and speed; by mid-2021, 91.7% of Greek households had access to high-speed broadband services (European Commission 2022: 103).
Citations:
European Commission. 2022. “Broadband Coverage in Europe 2021.” https://digital-strategy.ec.europa.eu/en/library/broadband-coverage-europe-2021
Eurostat. 2021a. “Share of buses and trains in inland passenger transport.” https://ec.europa.e
u/eurostat/databrowser/view/sdg_09_50/default/table?lang=en
Eurostat. 2021. “Share of rail and inland waterways in inland freight transport.” https://ec.europa.eu/eurostat/databrowser/view/sdg_09_60/default/table?lang=en
Eurostat. 2021. “High Speed Internet Coverage by Type of Area.” https://ec.europa.eu/eurostat/da
tabrowser/view/sdg_17_60/default/table?lang=en
Greek Government. 2023. “Greece 2.0 – Pillars and Components.” https://greece20.gov.gr/en/pillars-and-components/
Hellenic Republic. 2023. “National Reform Programme 2023.” https://commission.europa.eu/system/files/2023-05/Greece%20NRP%202023.pdf
International Telecommunication Union. 2020. “Global Cybersecurity Index 2020.” https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-GCI.01-2021-PDF-E.pdf
International Trade Administration. 2023. “Greece – Country Commercial Guide – Infrastructure.” https://www.trade.gov/country-commercial-guides/greece-infrastructure
Ministry of Digital Transformation. 2023. “Annual Action Plan 2023.” https://mindigital.gr/wp-content/uploads/2023/02/%CE%95%CE%A0%CE%99%CE%A4%CE%95%CE%9B%CE%99%CE%9A%CE%97_%CE%A3%CE%A5%CE%9D%CE%9F%CE%A8%CE%97_%CE%95%CE%A3%CE%94-2023_%CE%A5%CE%A8%CE%94.pdf
Ministry of Infrastructure and Transport. 2022. “National Action Plan 2022.” https://www.government.gov.gr/wp-content/uploads/2021/12/yp_upodomon_2022.pdf
Ministry of Infrastructure and Transport. 2024. “Annual Action Plan 2024.” https://www.ggde.gr/images/attachments/esd_2024_ypyme.pdf
World Economic Forum. 2019. “Global Competitiveness Report.” https://www.weforum.org/publications/global-competitiveness-report-2019/
Graph View
How committed is the government to fully decarbonizing the energy system by 2050?
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9
The government is clearly committed to transitioning to a decarbonized energy system.
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7
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The government is largely committed to transitioning to a decarbonized energy system.
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3
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3
The government is somewhat committed to transitioning to a decarbonized energy system.
2
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1
The government is not at all committed to transitioning to a decarbonized energy system.
Greece has a clearly defined strategy and roadmap for transitioning to a fully decarbonized energy system by 2050. This strategy is outlined in the national reform program (Hellenic Republic 2023) and the “Greece 2.0” Recovery and Resilience Plan agreed upon with the EU (Greek Government 2023). The strategy is binding, supported by legislation from the Ministry of Energy and Environment, and adopted by the Greek parliament.
The strategy is implemented through sector-specific action plans, such as the “National Action Plan for Energy and Climate” (Ministry of Energy and Environment 2019) and the “Green Transition Pillar” of the “Greece 2.0” plan (Greek Government 2023). Notable policy measures include the government’s goal to phase out coal-powered electricity by 2028, despite ongoing lignite mining, and to reduce total greenhouse gas emissions by 55% by 2030 (International Trade Association 2023). These policies represent an aggressive shift away from fossil fuels to meet the EU’s 2050 decarbonization target.
Greece’s progress is supported by both public and private investments, with significant contributions from Greek and foreign firms in high and low-voltage grid operators and natural gas distribution. Greece leads the EU in electricity production capacity from wind power and is among the top performers in hydroelectric capacity relative to GDP (Eurostat 2023 and IMF 2023). Public procurement in the energy sector is regulated and monitored by the independent Hellenic Single Public Procurement Authority (EADHSY).
The Ministry of Energy and Environment leads these efforts, while regional governments manage regional projects under close central government oversight. Central units consistently monitor, update, and publish policy measures annually (e.g., Ministry of Energy and Environment 2023).
In summary, while Greece remains above the OECD average in primary energy consumption per capita (BP 2022) and CO2 emissions from fuel combustion per capita (IEA 2023), it has made significant strides in renewable energy adoption. In 2019, Greece ranked below the OECD average in terms of renewable energy share of total final energy consumption in the SDGs. Greece’s renewable energy consumption increased from 15% in 2013 to 23% in 2022, nearly reaching the EU average (Eurostat 2022).
Citations:
BP Statistical Review of World Energy. 2022. 71st Edition. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2022-full-report.pdf
Eurostat. 2022. “Share of renewable energy consumption.” https://ec.europa.eu/eurostat/databrowser/view/nrg_ind_ren/default/table?lang=en
Eurostat. 2023. “Electricity production capacities for renewables and wastes.” https://ec.europa.eu/eurostat/databrowser/view/NRG_INF_EPCRW/default/table?lang=en
Hellenic Republic. 2023. “National Reform Programme 2023.” April. https://commission.europa.eu/system/files/2023-05/Greece%20NRP%202023.pdf
Greek Government. 2023. “Greece 2.0 – Pillars and Components.” https://greece20.gov.gr/en/pillars-and-components/
IEA. 2023. “GHG Emissions from Energy 2023, Highlights.” https://www.iea.org/data-and-statistics/data-product/greenhouse-gas-emissions-from-energy-highlights
IMF. 2023. “World Economic Outlook October 2023, Gross domestic product, current prices, USD.” https://www.imf.org/en/Publications/WEO/weo-database/2023/October
International Trade Administration. 2023. “Greece – Country Commercial Guide – Energy.” https://www.trade.gov/country-commercial-guides/greece-energy.
Ministry of Energy and Environment. 2019. “National Action Plan for Energy and Climate.” https://ypen.gov.gr/energeia/esek/
Ministry of Energy and Environment. 2023. “Annual Action Plan 2023.” https://ypen.gov.gr/wp-content/uploads/2023/01/%CE%95%CE%A0%CE%99%CE%A4%CE%95%CE%9B%CE%99%CE%9A%CE%97_%CE%A3%CE%A5%CE%9D%CE%9F%CE%A8%CE%97_%CE%95%CE%A3%CE%94_2023_%CE%A5%CE%A0%CE%95%CE%9D.pdf
SDG. 2019. “Sustainable Development Goals Indicators Database Indicator 7.2.1, Series: Renewable.”
energy share in the total final energy consumption (%),” https://unstats.un.org/sdgs/indicators/en/
The website of the public procurement authority (EADHSY) is https://www.gov.gr/en/sdg/public-contracts/reporting-irregularities/competent-administrative-authorities-for-submission-of-complaints/hellenic-single-public-procurement-authority-hsppa/
The website of the Ministry of Energy and Environment is https://ypen.gov.gr/
The strategy is implemented through sector-specific action plans, such as the “National Action Plan for Energy and Climate” (Ministry of Energy and Environment 2019) and the “Green Transition Pillar” of the “Greece 2.0” plan (Greek Government 2023). Notable policy measures include the government’s goal to phase out coal-powered electricity by 2028, despite ongoing lignite mining, and to reduce total greenhouse gas emissions by 55% by 2030 (International Trade Association 2023). These policies represent an aggressive shift away from fossil fuels to meet the EU’s 2050 decarbonization target.
Greece’s progress is supported by both public and private investments, with significant contributions from Greek and foreign firms in high and low-voltage grid operators and natural gas distribution. Greece leads the EU in electricity production capacity from wind power and is among the top performers in hydroelectric capacity relative to GDP (Eurostat 2023 and IMF 2023). Public procurement in the energy sector is regulated and monitored by the independent Hellenic Single Public Procurement Authority (EADHSY).
The Ministry of Energy and Environment leads these efforts, while regional governments manage regional projects under close central government oversight. Central units consistently monitor, update, and publish policy measures annually (e.g., Ministry of Energy and Environment 2023).
In summary, while Greece remains above the OECD average in primary energy consumption per capita (BP 2022) and CO2 emissions from fuel combustion per capita (IEA 2023), it has made significant strides in renewable energy adoption. In 2019, Greece ranked below the OECD average in terms of renewable energy share of total final energy consumption in the SDGs. Greece’s renewable energy consumption increased from 15% in 2013 to 23% in 2022, nearly reaching the EU average (Eurostat 2022).
Citations:
BP Statistical Review of World Energy. 2022. 71st Edition. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2022-full-report.pdf
Eurostat. 2022. “Share of renewable energy consumption.” https://ec.europa.eu/eurostat/databrowser/view/nrg_ind_ren/default/table?lang=en
Eurostat. 2023. “Electricity production capacities for renewables and wastes.” https://ec.europa.eu/eurostat/databrowser/view/NRG_INF_EPCRW/default/table?lang=en
Hellenic Republic. 2023. “National Reform Programme 2023.” April. https://commission.europa.eu/system/files/2023-05/Greece%20NRP%202023.pdf
Greek Government. 2023. “Greece 2.0 – Pillars and Components.” https://greece20.gov.gr/en/pillars-and-components/
IEA. 2023. “GHG Emissions from Energy 2023, Highlights.” https://www.iea.org/data-and-statistics/data-product/greenhouse-gas-emissions-from-energy-highlights
IMF. 2023. “World Economic Outlook October 2023, Gross domestic product, current prices, USD.” https://www.imf.org/en/Publications/WEO/weo-database/2023/October
International Trade Administration. 2023. “Greece – Country Commercial Guide – Energy.” https://www.trade.gov/country-commercial-guides/greece-energy.
Ministry of Energy and Environment. 2019. “National Action Plan for Energy and Climate.” https://ypen.gov.gr/energeia/esek/
Ministry of Energy and Environment. 2023. “Annual Action Plan 2023.” https://ypen.gov.gr/wp-content/uploads/2023/01/%CE%95%CE%A0%CE%99%CE%A4%CE%95%CE%9B%CE%99%CE%9A%CE%97_%CE%A3%CE%A5%CE%9D%CE%9F%CE%A8%CE%97_%CE%95%CE%A3%CE%94_2023_%CE%A5%CE%A0%CE%95%CE%9D.pdf
SDG. 2019. “Sustainable Development Goals Indicators Database Indicator 7.2.1, Series: Renewable.”
energy share in the total final energy consumption (%),” https://unstats.un.org/sdgs/indicators/en/
The website of the public procurement authority (EADHSY) is https://www.gov.gr/en/sdg/public-contracts/reporting-irregularities/competent-administrative-authorities-for-submission-of-complaints/hellenic-single-public-procurement-authority-hsppa/
The website of the Ministry of Energy and Environment is https://ypen.gov.gr/
Graph View
To what extent do existing labor market institutions support or hinder the transition to an adaptive labor market?
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9
Labor market institutions are fully aligned with the goal of an adaptable labor market.
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7
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Labor market institutions are largely aligned with the goal of an adaptable labor market.
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3
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Labor market institutions are only somewhat aligned with the goal of an adaptable labor market.
2
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1
Labor market institutions are not at all aligned with the goal of an adaptable labor market.
In 2022, Greece’s unemployment rate fell to 7.5%, a significant improvement from 16.4% in 2013. Despite this progress, Greece still has the second-highest unemployment rate in the EU, after Spain. However, the country’s promising economic growth prospects provide hope for further reductions in unemployment.
There are, however, troubling aspects of the unemployment profile. Greece ranks the worst among OECD countries for long-term unemployment (OECD 2022). The highest unemployment rates are observed among women, young people aged 15 to 24, individuals in the Thessaly region, and those with only a few years of elementary education (Eures 2023).
Youth unemployment is particularly alarming, with 31% of individuals aged 15-24 out of work – the highest rate in the OECD (2022). The gender employment gap is also the worst in the OECD, with only 56% of women aged 20-64 participating in the labor force, compared to the EU average of 69% (Eurostat 2023).
Greece’s overall employment rate is relatively low, with only 66% of the population participating in the labor market, compared to the EU average of 75% (Eurostat 2022a). Part-time work is rare and often involuntary, while temporary work is uncommon. Policies promoting short-term employment to help firms adapt to temporary shocks are underdeveloped and likely unpopular, given that around 11% of workers are at risk of poverty or social exclusion, compared to the EU average of 9% (Eurostat 2022b).
The largest occupational groups in Greece are professionals (22.4% of the workforce) and service providers and salespersons (20.9%) (Eures 2023). Despite high unemployment, there is a skills mismatch, with unskilled and low-skilled labor in industry and the service sector, as well as highly skilled workers in ICT, in high demand. The education system has yet to align with labor market needs, and only 12% of people participate in job-related non-formal education and training programs, far below the EU average of 38% (Eurostat 2016). As a result, policies do not sufficiently encourage skill development in response to changing labor market demands.
Citations:
Eures. 2023. “Labor market information: Greece.” https://eures.europa.eu/living-and-working/labour-market-information/labour-market-information-greece_en#:~:text=The%20region%20ranks%20first%20in,to%2013.2%25%20in%20December%202021.
Eurostat. 2016. “Employed persons participating in job-related non-formal education and training in the past 12 months by sex and age.” https://ec.europa.eu/eurostat/databrowser/view/qoe_ewcs_6_1/default/table?lang=en
Eurostat. 2022. “Total unemployment rate.” https://ec.europa.eu/eurostat/databrowser/view/tps00203/default/table
Eurostat. 2022b. “In-work at-risk-of-poverty rate by age.”
and sex – EU-SILC survey,” https://ec.europa.eu/eurostat/databrowser/view/ILC_IW01__custom_6420639/default/table?lang=en
There are, however, troubling aspects of the unemployment profile. Greece ranks the worst among OECD countries for long-term unemployment (OECD 2022). The highest unemployment rates are observed among women, young people aged 15 to 24, individuals in the Thessaly region, and those with only a few years of elementary education (Eures 2023).
Youth unemployment is particularly alarming, with 31% of individuals aged 15-24 out of work – the highest rate in the OECD (2022). The gender employment gap is also the worst in the OECD, with only 56% of women aged 20-64 participating in the labor force, compared to the EU average of 69% (Eurostat 2023).
Greece’s overall employment rate is relatively low, with only 66% of the population participating in the labor market, compared to the EU average of 75% (Eurostat 2022a). Part-time work is rare and often involuntary, while temporary work is uncommon. Policies promoting short-term employment to help firms adapt to temporary shocks are underdeveloped and likely unpopular, given that around 11% of workers are at risk of poverty or social exclusion, compared to the EU average of 9% (Eurostat 2022b).
The largest occupational groups in Greece are professionals (22.4% of the workforce) and service providers and salespersons (20.9%) (Eures 2023). Despite high unemployment, there is a skills mismatch, with unskilled and low-skilled labor in industry and the service sector, as well as highly skilled workers in ICT, in high demand. The education system has yet to align with labor market needs, and only 12% of people participate in job-related non-formal education and training programs, far below the EU average of 38% (Eurostat 2016). As a result, policies do not sufficiently encourage skill development in response to changing labor market demands.
Citations:
Eures. 2023. “Labor market information: Greece.” https://eures.europa.eu/living-and-working/labour-market-information/labour-market-information-greece_en#:~:text=The%20region%20ranks%20first%20in,to%2013.2%25%20in%20December%202021.
Eurostat. 2016. “Employed persons participating in job-related non-formal education and training in the past 12 months by sex and age.” https://ec.europa.eu/eurostat/databrowser/view/qoe_ewcs_6_1/default/table?lang=en
Eurostat. 2022. “Total unemployment rate.” https://ec.europa.eu/eurostat/databrowser/view/tps00203/default/table
Eurostat. 2022b. “In-work at-risk-of-poverty rate by age.”
and sex – EU-SILC survey,” https://ec.europa.eu/eurostat/databrowser/view/ILC_IW01__custom_6420639/default/table?lang=en
To what extent do existing labor market institutions support or hinder the transition to an inclusive labor market?
10
9
9
Labor market institutions are fully aligned with the goal of an inclusive labor market.
8
7
6
7
6
Labor market institutions are largely aligned with the goal of an inclusive labor market.
5
4
3
4
3
Labor market institutions are only somewhat aligned with the goal of an inclusive labor market.
2
1
1
Labor market institutions are not at all aligned with the goal of an inclusive labor market.
Policies in Greece do not effectively integrate out-of-work benefits with active labor market programs to protect workers and enhance job prospects. Labor market policies remain largely passive, with education and training inadequately aligned with labor market shifts.
However, there has been a policy shift in this area. In January 2024, the parliament passed a new law on vocational education and training. This law restructures the previously fragmented vocational education landscape. Post-secondary vocational training and education schools (IEK) will be more closely aligned with local and sectoral labor market needs. Within secondary education, vocational high schools and training centers are being integrated into new units called “Centers for Vocational Training and Education” (KEEK). These centers will be equipped with laboratories and career offices, and their curricula will better integrate practical work experience with firms. Additional state funding will also support vocational education and training.
There are relatively few disincentives for the unemployed to return to work. Although returning to work may result in higher taxes or lower benefits, these levels are below the OECD average (OECD 2021).
Greece has reformed its public employment service, DYPA, which was established in 2022 as the successor to the outdated OAED agency. DYPA is better organized than its predecessor, providing services that facilitate worker mobility across firms and industries. However, it is still too early to fully assess its efficiency.
Greece has a higher-than-average percentage of youth not in employment, education, or training (NEET) compared to other OECD countries (OECD 2023). This is largely due to the underdeveloped vocational education and training system, which is associated with lower earnings and social status, making it unpopular.
During the COVID-19 crisis, policies and regulations helped workers achieve a better work-life balance through remote work arrangements. However, after the pandemic subsided, work-life balance efficiency declined due to factors such as long commutes in major cities, frequent traffic congestion, and a culture of mistrust between employers and employees regarding commitment to work and actual working hours.
Citations:
OECD. 2021. “Financial disincentives to return to work.” https://stats.oecd.org/viewhtml.aspx?datasetcode=PTRUB&lang=en
OECD. 2023. “Youth Not in Employment, Education, or Training (NEET).” https://data.oecd.org/youthinac/youth-not-in-employment-education-or-training-neet.htm
The new law on vocational education and training, adopted in January 2024, is Law 5082/2024.
The website of DYPA is https://www.dypa.gov.gr/.
Law 4921/2022. 2022. Vol. 4921, sec. 2022.
However, there has been a policy shift in this area. In January 2024, the parliament passed a new law on vocational education and training. This law restructures the previously fragmented vocational education landscape. Post-secondary vocational training and education schools (IEK) will be more closely aligned with local and sectoral labor market needs. Within secondary education, vocational high schools and training centers are being integrated into new units called “Centers for Vocational Training and Education” (KEEK). These centers will be equipped with laboratories and career offices, and their curricula will better integrate practical work experience with firms. Additional state funding will also support vocational education and training.
There are relatively few disincentives for the unemployed to return to work. Although returning to work may result in higher taxes or lower benefits, these levels are below the OECD average (OECD 2021).
Greece has reformed its public employment service, DYPA, which was established in 2022 as the successor to the outdated OAED agency. DYPA is better organized than its predecessor, providing services that facilitate worker mobility across firms and industries. However, it is still too early to fully assess its efficiency.
Greece has a higher-than-average percentage of youth not in employment, education, or training (NEET) compared to other OECD countries (OECD 2023). This is largely due to the underdeveloped vocational education and training system, which is associated with lower earnings and social status, making it unpopular.
During the COVID-19 crisis, policies and regulations helped workers achieve a better work-life balance through remote work arrangements. However, after the pandemic subsided, work-life balance efficiency declined due to factors such as long commutes in major cities, frequent traffic congestion, and a culture of mistrust between employers and employees regarding commitment to work and actual working hours.
Citations:
OECD. 2021. “Financial disincentives to return to work.” https://stats.oecd.org/viewhtml.aspx?datasetcode=PTRUB&lang=en
OECD. 2023. “Youth Not in Employment, Education, or Training (NEET).” https://data.oecd.org/youthinac/youth-not-in-employment-education-or-training-neet.htm
The new law on vocational education and training, adopted in January 2024, is Law 5082/2024.
The website of DYPA is https://www.dypa.gov.gr/.
Law 4921/2022. 2022. Vol. 4921, sec. 2022.
To what extent do existing labor market institutions support or hinder the mitigation of labor market risks?
10
9
9
Labor market institutions are fully aligned with the goal of protecting individuals against labor market risks.
8
7
6
7
6
Labor market institutions are largely aligned with the goal of protecting individuals against labor market risks.
5
4
3
4
3
Labor market institutions are only somewhat aligned with the goal of protecting individuals against labor market risks.
2
1
1
Labor market institutions are not at all aligned with the goal of protecting individuals against labor market risks.
Labor market institutions in Greece are only somewhat aligned with the goal of protecting individuals against labor market risks.
The minimum unemployment benefit, provided for up to 12 months, is very low at just €479 per month. Due to various exemptions, only about 10% of the unemployed receive this benefit. However, the government plans to increase the benefit to up to €1,300 per month, depending on years of work, and extend its duration to 18 months (Georgakis 2024).
The General Confederation of Greek Workers (GSEE), representing private sector employees and workers, regularly advocates on behalf of the unemployed, ensuring their interests are represented.
Greece’s population, including the unemployed, is covered by a public social insurance agency (EFKA) and the National Health System (ESY), modeled after the UK’s NHS. Despite bureaucratic hurdles and inefficiencies in the ESY, social rights such as social insurance, health insurance, and pensions are portable. Access to public healthcare and basic social insurance for the unemployed has been guaranteed by law since 2016.
Citations:
Georgakis, El. 2024. “A ‘Lifting’ of the Unemployment Benefit is Forthcoming.” Ta Nea website. https://www.tanea.gr/2024/01/21/economy/erxetai-liftingk-lfsto-epidoma-anergias-online/#:~:text=%CE%A3%CF%8D%CE%BC%CF%86%CF%89%CE%BD%CE%B1%20%CE%BC%CE%B5%20%CF%80%CE%BB%CE%B7%CF%81%CE%BF%CF%86%CE%BF%CF%81%CE%AF%CE%B5%CF%82%2C%20%CF%84%CE%BF%20%CE%B5%CF%80%CE%AF%CE%B4%CE%BF%CE%BC%CE%B1,%CE%AD%CF%87%CE%B5%CE%B9%20%CE%B4%CE%B9%CE%B1%CE%BC%CE%BF%CF%81%CF%86%CF%89%CE%B8%CE%B5%CE%AF%20%CF%83%CF%84%CE%B1%20479%20%CE%B5%CF%85%CF%81%CF%8E
The website of the General Confederation of Greek Workers (GSEE) is https://gsee.gr/
Law 4368. 2016. “Providing Access to Public Health Care and Basic Social Insurance for All.”
The minimum unemployment benefit, provided for up to 12 months, is very low at just €479 per month. Due to various exemptions, only about 10% of the unemployed receive this benefit. However, the government plans to increase the benefit to up to €1,300 per month, depending on years of work, and extend its duration to 18 months (Georgakis 2024).
The General Confederation of Greek Workers (GSEE), representing private sector employees and workers, regularly advocates on behalf of the unemployed, ensuring their interests are represented.
Greece’s population, including the unemployed, is covered by a public social insurance agency (EFKA) and the National Health System (ESY), modeled after the UK’s NHS. Despite bureaucratic hurdles and inefficiencies in the ESY, social rights such as social insurance, health insurance, and pensions are portable. Access to public healthcare and basic social insurance for the unemployed has been guaranteed by law since 2016.
Citations:
Georgakis, El. 2024. “A ‘Lifting’ of the Unemployment Benefit is Forthcoming.” Ta Nea website. https://www.tanea.gr/2024/01/21/economy/erxetai-liftingk-lfsto-epidoma-anergias-online/#:~:text=%CE%A3%CF%8D%CE%BC%CF%86%CF%89%CE%BD%CE%B1%20%CE%BC%CE%B5%20%CF%80%CE%BB%CE%B7%CF%81%CE%BF%CF%86%CE%BF%CF%81%CE%AF%CE%B5%CF%82%2C%20%CF%84%CE%BF%20%CE%B5%CF%80%CE%AF%CE%B4%CE%BF%CE%BC%CE%B1,%CE%AD%CF%87%CE%B5%CE%B9%20%CE%B4%CE%B9%CE%B1%CE%BC%CE%BF%CF%81%CF%86%CF%89%CE%B8%CE%B5%CE%AF%20%CF%83%CF%84%CE%B1%20479%20%CE%B5%CF%85%CF%81%CF%8E
The website of the General Confederation of Greek Workers (GSEE) is https://gsee.gr/
Law 4368. 2016. “Providing Access to Public Health Care and Basic Social Insurance for All.”
Graph View
To what extent do existing tax institutions and procedures support or hinder adequate tax revenue flows?
10
9
9
The tax system is fully aligned with the goals of ensuring adequate tax revenues.
8
7
6
7
6
The tax system is largely aligned with the goals of ensuring adequate tax revenues.
5
4
3
4
3
The tax system is only somewhat aligned with the goals of ensuring adequate tax revenues.
2
1
1
The tax system is not at all aligned with the goals of ensuring adequate tax revenues.
Ensuring adequate tax compliance in Greece has been challenging due to a long history of tax evasion. A 2012 study estimated that the shadow economy in Greece accounted for around 27% of GDP between 1999 and 2010, compared to an OECD average of 20% (IMF 2013: 11).
Several factors contribute to this lack of tax compliance, including the large proportion of self-employment (28% of total employment; OECD 2020: 9), the indirect tax burden (with VAT at 24%), the high unemployment rate (9.4% in November 2023, the second highest in the EU after Spain; Eurostat 2024), and low tax morale. The self-employed consistently underreport their revenues, and they are numerous and difficult to control. Additionally, tax morale is low, as citizens have long doubted the effective use of public funds, both before and after the economic crisis (Exadaktylos and Zahariadis 2014).
Compared to other OECD countries, Greece’s tax administration capacity remains among the lowest (Tax Justice Network 2023). While the effective average tax rate for businesses is close to the OECD average (Mannheim Tax Index 2021), disincentives for prospective investors persist. Although Greece’s average income tax rate is below the OECD average (OECD 2022), the social insurance wedge – relatively high contributions that businesses and employees pay to social security funds – acts as a significant deterrent.
Tax officials today have better access to bank accounts than before the economic crisis. The customs unit’s mobile squads conduct random inspections of businesses, particularly during the long Greek summer. A special unit of the Independent Authority for Public Revenue (AADE 2024) investigates large businesses, smaller firms, the self-employed, and high-net-worth individuals (Petrakis 2019).
Citations:
AADE. 2024. https://www.gov.gr/en/upourgeia/oloi-foreis/anexartete-arkhe-demosion-esodon-aade
Eurostat. 2024. “Euro Area Unemployment at 6.4%.” https://ec.europa.eu/eurostat/documents/2995521/18278350/3-09012024-AP-EN.pdf/616998cd-5675-cd0d-8fb2-180a16c9af53#:~:text=The%20EU%20unemployment%20rate%20was,office%20of%20the%20European%20Union
Exadaktylos, Th. and N. Zahariadis. 2014. “Quid pro Quo: Political Trust and Policy Implementation in Greece during the Age of Austerity.” Policy and Politics 42 (1): 160-183.
IMF. 2013. “Greece.” Country report 133/155. https://www.imf.org/external/pubs/ft/scr/2013/cr13155.pdf
Mannheim Tax Index. 2021. https://www.zew.de/mannheim-tax-index
OECD. 2020. “Inclusive Entrepreneurship Policies, Country Assessment Notes – Greece.” https://www.oecd.org/cfe/smes/Greece-IE-2020.pdf
OECD. 2022. “Dataset: Taxing Wages – Comparative tables.” https://stats.oecd.org/Index.aspx?DataSetCode=AWCOMP#
Petrakis, M. 2019. “Taxing Times.” IMF, September 2019. https://www.imf.org/en/Publications/fandd/issues/2019/09/improving-tax-collection-in-greece-petrakis
Tax Justice Network. 2023. “https://iff.taxjustice.net/#/explorer”
Several factors contribute to this lack of tax compliance, including the large proportion of self-employment (28% of total employment; OECD 2020: 9), the indirect tax burden (with VAT at 24%), the high unemployment rate (9.4% in November 2023, the second highest in the EU after Spain; Eurostat 2024), and low tax morale. The self-employed consistently underreport their revenues, and they are numerous and difficult to control. Additionally, tax morale is low, as citizens have long doubted the effective use of public funds, both before and after the economic crisis (Exadaktylos and Zahariadis 2014).
Compared to other OECD countries, Greece’s tax administration capacity remains among the lowest (Tax Justice Network 2023). While the effective average tax rate for businesses is close to the OECD average (Mannheim Tax Index 2021), disincentives for prospective investors persist. Although Greece’s average income tax rate is below the OECD average (OECD 2022), the social insurance wedge – relatively high contributions that businesses and employees pay to social security funds – acts as a significant deterrent.
Tax officials today have better access to bank accounts than before the economic crisis. The customs unit’s mobile squads conduct random inspections of businesses, particularly during the long Greek summer. A special unit of the Independent Authority for Public Revenue (AADE 2024) investigates large businesses, smaller firms, the self-employed, and high-net-worth individuals (Petrakis 2019).
Citations:
AADE. 2024. https://www.gov.gr/en/upourgeia/oloi-foreis/anexartete-arkhe-demosion-esodon-aade
Eurostat. 2024. “Euro Area Unemployment at 6.4%.” https://ec.europa.eu/eurostat/documents/2995521/18278350/3-09012024-AP-EN.pdf/616998cd-5675-cd0d-8fb2-180a16c9af53#:~:text=The%20EU%20unemployment%20rate%20was,office%20of%20the%20European%20Union
Exadaktylos, Th. and N. Zahariadis. 2014. “Quid pro Quo: Political Trust and Policy Implementation in Greece during the Age of Austerity.” Policy and Politics 42 (1): 160-183.
IMF. 2013. “Greece.” Country report 133/155. https://www.imf.org/external/pubs/ft/scr/2013/cr13155.pdf
Mannheim Tax Index. 2021. https://www.zew.de/mannheim-tax-index
OECD. 2020. “Inclusive Entrepreneurship Policies, Country Assessment Notes – Greece.” https://www.oecd.org/cfe/smes/Greece-IE-2020.pdf
OECD. 2022. “Dataset: Taxing Wages – Comparative tables.” https://stats.oecd.org/Index.aspx?DataSetCode=AWCOMP#
Petrakis, M. 2019. “Taxing Times.” IMF, September 2019. https://www.imf.org/en/Publications/fandd/issues/2019/09/improving-tax-collection-in-greece-petrakis
Tax Justice Network. 2023. “https://iff.taxjustice.net/#/explorer”
To what extent do existing tax institutions and procedures consider equity aspects?
10
9
9
The tax system is fully aligned with the goal of ensuring equity.
8
7
6
7
6
The tax system is largely aligned with the goal of ensuring equity.
5
4
3
4
3
The tax system is only somewhat aligned with the goal of ensuring equity.
2
1
1
The tax system is not at all aligned with the goal of ensuring equity.
The Greek tax system is not well-aligned with the principle of horizontal equity (Tax Justice Network 2023). Despite improvements in tax system digitalization, new tax laws, and the operation of the Independent Authority for Public Revenue (IAPR), tax evasion remains prevalent among certain occupational groups.
Tax compliance among the self-employed and small enterprises, which form the backbone of the Greek economy, remains inconsistent. For example, in 2022, 67% of the self-employed declared an annual income below €10,000, despite significant increases in their turnover (European Commission 2023: 11). This suggests that some entrepreneurs and professionals report incomes lower than those of salaried workers earning the legally guaranteed minimum wage (€10,920 per year).
In December 2023, the government passed a new law targeting tax evasion, making it difficult for entrepreneurs and professionals (e.g., lawyers, engineers) who employ salaried workers to declare an annual income lower than that of their employees. The law also imposes heavy penalties on transactions over €500 made in cash and promotes the use of credit cards and bank transfers to reduce cash transactions. These steps aim to enhance horizontal equity.
However, some degree of vertical equity is achieved in Greece. The tax system imposes higher taxes on individuals and companies with greater ability to pay. Since 2021, the top personal income tax rate has been 44%, the 15th highest among EU Member States (Tax Foundation 2023). Among OECD countries, Greece is one of the least complicit in allowing individuals to hide their finances from legal scrutiny (Financial Secrecy Index 2022). Additionally, Greece is far from being a corporate tax haven compared to other OECD countries (Corporate Tax Haven Index 2021).
Citations:
Corporate Tax Haven. 2021. “Interactive Map.” https://cthi.taxjustice.net/en/cthi/interactive-map
Financial Secrecy Index. 2022. “https://fsi.taxjustice.net/”
Tax Foundation. 2023. “Top Personal Income Tax Rates in Europe.” https://taxfoundation.org/data/all/eu/top-personal-income-tax-rates-europe-2023/#:~:text=Denmark%20(55.9%20percent)%2C%20France,among%20OECD%20countries%20in%202022
Tax Justice Network. 2023. “https://iff.taxjustice.net/#/explorer”
Tax compliance among the self-employed and small enterprises, which form the backbone of the Greek economy, remains inconsistent. For example, in 2022, 67% of the self-employed declared an annual income below €10,000, despite significant increases in their turnover (European Commission 2023: 11). This suggests that some entrepreneurs and professionals report incomes lower than those of salaried workers earning the legally guaranteed minimum wage (€10,920 per year).
In December 2023, the government passed a new law targeting tax evasion, making it difficult for entrepreneurs and professionals (e.g., lawyers, engineers) who employ salaried workers to declare an annual income lower than that of their employees. The law also imposes heavy penalties on transactions over €500 made in cash and promotes the use of credit cards and bank transfers to reduce cash transactions. These steps aim to enhance horizontal equity.
However, some degree of vertical equity is achieved in Greece. The tax system imposes higher taxes on individuals and companies with greater ability to pay. Since 2021, the top personal income tax rate has been 44%, the 15th highest among EU Member States (Tax Foundation 2023). Among OECD countries, Greece is one of the least complicit in allowing individuals to hide their finances from legal scrutiny (Financial Secrecy Index 2022). Additionally, Greece is far from being a corporate tax haven compared to other OECD countries (Corporate Tax Haven Index 2021).
Citations:
Corporate Tax Haven. 2021. “Interactive Map.” https://cthi.taxjustice.net/en/cthi/interactive-map
Financial Secrecy Index. 2022. “https://fsi.taxjustice.net/”
Tax Foundation. 2023. “Top Personal Income Tax Rates in Europe.” https://taxfoundation.org/data/all/eu/top-personal-income-tax-rates-europe-2023/#:~:text=Denmark%20(55.9%20percent)%2C%20France,among%20OECD%20countries%20in%202022
Tax Justice Network. 2023. “https://iff.taxjustice.net/#/explorer”
To what extent do existing tax institutions and procedures minimize compliance and collection costs?
10
9
9
The tax system is fully aligned with the goal of minimizing compliance and collection costs.
8
7
6
7
6
The tax system is largely aligned with the goal of minimizing compliance and collection costs.
5
4
3
4
3
The tax system is only somewhat aligned with the goal of minimizing compliance and collection costs.
2
1
1
The tax system is not at all aligned with the goal of minimizing compliance and collection costs.
Since the onset of the economic crisis, the Independent Authority for Public Revenue (IAPR) has made significant progress in digitalizing tax systems, and the government has introduced numerous new tax laws.
In Greece, a long-standing tradition of adopting numerous laws, presidential decrees, and ministerial circulars to regulate taxation has created a complex and often confusing system (Sotiropoulos and Hristopoulos 2017). This complexity reduces the transparency and clarity of tax rules, prompting many citizens and businesses to hire personal accountants to manage their tax declarations.
Recognizing these challenges, successive governments have focused on simplifying tax rules and reducing administrative costs. In 2019, the government passed a law to digitalize tax information on income and expenses. The IAPR subsequently developed the “myDATA” platform (AADE 2024), which, despite delays due to the COVID-19 pandemic, is now operational. This platform is designed to digitalize the tax and accounting records of companies and liberal professions through the use of electronic accounting books.
However, the administrative capacities needed to effectively collect taxes still require further enhancement, especially given the scale of tax evasion. While penalties for tax evasion are enforced, the IAPR has also implemented a dispute resolution system to address complaints promptly. Nevertheless, citizens and businesses can appeal these penalties in administrative courts, where the slow and inefficient justice system often hampers the prosecution of tax evasion.
Citations:
The law on digitalization of tax collection is Law 4646/2019.
AADE. 2024. “myData.” https://www.aade.gr/en/mydata
Sotiropoulos, D.A., and L. Hristopoulos. 2017. Excessive Regulation and Bad Regulation in Greece. Athens: Dianeossis Publications.
In Greece, a long-standing tradition of adopting numerous laws, presidential decrees, and ministerial circulars to regulate taxation has created a complex and often confusing system (Sotiropoulos and Hristopoulos 2017). This complexity reduces the transparency and clarity of tax rules, prompting many citizens and businesses to hire personal accountants to manage their tax declarations.
Recognizing these challenges, successive governments have focused on simplifying tax rules and reducing administrative costs. In 2019, the government passed a law to digitalize tax information on income and expenses. The IAPR subsequently developed the “myDATA” platform (AADE 2024), which, despite delays due to the COVID-19 pandemic, is now operational. This platform is designed to digitalize the tax and accounting records of companies and liberal professions through the use of electronic accounting books.
However, the administrative capacities needed to effectively collect taxes still require further enhancement, especially given the scale of tax evasion. While penalties for tax evasion are enforced, the IAPR has also implemented a dispute resolution system to address complaints promptly. Nevertheless, citizens and businesses can appeal these penalties in administrative courts, where the slow and inefficient justice system often hampers the prosecution of tax evasion.
Citations:
The law on digitalization of tax collection is Law 4646/2019.
AADE. 2024. “myData.” https://www.aade.gr/en/mydata
Sotiropoulos, D.A., and L. Hristopoulos. 2017. Excessive Regulation and Bad Regulation in Greece. Athens: Dianeossis Publications.
To what extent do existing tax institutions and procedures internalize negative and positive externalities?
10
9
9
The tax system is fully aligned with the goal of internalizing externalities.
8
7
6
7
6
The tax system is largely aligned with the goal of internalizing externalities.
5
4
3
4
3
The tax system is only somewhat aligned with the goal of internalizing externalities.
2
1
1
The tax system is not at all aligned with the goal of internalizing externalities.
The Greek tax system is somewhat aligned with the goal of internalizing externalities, particularly through the imposition of environment-related taxes. Among OECD countries, Greece has the highest environmental taxes relative to total tax revenues (OECD 2020).
The Hellenic Foundation for Research and Innovation (ELIDEK) provides grants for basic research across all scientific disciplines, with recent funding supported by Greece’s National Recovery and Resilience Plan, part of the EU Recovery and Resilience Facility (ELIDEK 2022). However, in terms of fund absorption, private businesses in Greece lag behind state universities and research institutions, which conduct the majority of basic research.
Citations:
ELIDEK. 2022. “Basic Research Financing.” https://www.elidek.gr/wp-content/uploads/2022/03/%E2%80%9CBasic-Research-Financing%E2%80%9D-Horizontal-support-for-all-Sciences.pdf
OECD. 2020. “Environmentally related tax revenue.” https://stats.oecd.org/Index.aspx?DataSetCode=ERTR
The Hellenic Foundation for Research and Innovation (ELIDEK) provides grants for basic research across all scientific disciplines, with recent funding supported by Greece’s National Recovery and Resilience Plan, part of the EU Recovery and Resilience Facility (ELIDEK 2022). However, in terms of fund absorption, private businesses in Greece lag behind state universities and research institutions, which conduct the majority of basic research.
Citations:
ELIDEK. 2022. “Basic Research Financing.” https://www.elidek.gr/wp-content/uploads/2022/03/%E2%80%9CBasic-Research-Financing%E2%80%9D-Horizontal-support-for-all-Sciences.pdf
OECD. 2020. “Environmentally related tax revenue.” https://stats.oecd.org/Index.aspx?DataSetCode=ERTR
Graph View
To what extent do existing budgetary institutions and procedures support or hinder sustainable budgeting?
10
9
9
Budgetary institutions and policies are fully aligned with the goals of sustainable budgeting.
8
7
6
7
6
Budgetary institutions and policies are largely aligned with the goals of sustainable budgeting.
5
4
3
4
3
Budgetary institutions and policies are only somewhat aligned with the goals of sustainable budgeting.
2
1
1
Budgetary institutions and policies are not at all aligned with the goals of sustainable budgeting.
Before the Greek crisis, the Greek budget frequently fell victim to unpredictable pressures from interest groups. Unwarranted government assistance in the form of cash transfers and tax breaks was often dispensed in an irrational, patronage-based manner. Additionally, the budget was influenced by the vicissitudes of Greece’s relations with neighboring countries, given Greece’s status as a significant defense spender. Greek defense expenditure is double the EU average (Eurostat 2021a). These issues culminated in the economic crisis of the 2010s.
After overcoming the economic crisis of the previous decade, the COVID-19 crisis, and managing challenges with neighboring countries, Greece is now able to establish budgetary rules that ensure fiscal resilience. The government implements budgetary procedures that ensure transparency and sets budgetary priorities reflecting future well-being.
Financial support and technical assistance from the EU have been instrumental in these three dimensions of sustainable budgeting. With the help of the European Commission, the government incorporates long-term planning and conducts systematic, forward-looking assessments of the budget’s impact. The budgetary process and implementation are open, transparent, and regularly scrutinized by the parliament, the designated “Office of the State Budget in Parliament,” and Greece’s audit office, “Elegktiko Syndedrio.”
Policymakers prevent a continuous increase in public debt. Greece’s public debt (168% of GDP) remains the largest in the EU, but it has continuously fallen since 2020, when it stood at 212% of GDP (IMF World Economic Outlook 2023a).
The Greek state budget is now more consolidated and better processed than in the past. Under EU supervision – specifically the “European Semester” mechanism that applies to all EU Member States – there is systematic planning and programming of government revenue and expenses. Additionally, the level and servicing of the public debt are closely monitored.
Yet, risks still persist. Greece’s total government expenditure is higher than the EU average, accounting for 57% of GDP compared to the EU average of 51% (Eurostat 2021b). The general government primary balance, at 1.02% of GDP, is small but remains the highest in the EU (IMF World Economic Outlook 2023b). Due to the substantial loans provided by the country’s creditors during the crisis decade, gross interest payments by the general government are comparatively high (OECD 2023).
Greece continues to service its debt. The country’s economic growth in the post-Covid period (2.4% in 2023, European Commission 2023) suggests it will likely be able to maintain this. During economic expansion, the government accumulates financial reserves through the Independent Authority for Public Revenue (AADE).
Greece’s national budget explicitly addresses the Sustainable Development Goals (SDGs) and target values associated with expenditures for economic and social development through the country’s Recovery and Resilience Plan (“Greece 2.0,” Greek Government 2021). This plan “is structured around four key pillars inextricably linked to the core priorities and objectives of the SDGs: (i) green transition, (ii) digital transition, (iii) employment, skills and social cohesion, and (iv) private investment and economic and institutional transformation. It is worth pointing out that 37.5% of the national RRP will support climate-related objectives” (Presidency of the Hellenic Government 2022: 35).
Citations:
European Commission. 2023. “Economic Forecast for Greece.” https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/greece/economic-forecast-greece_en
Eurostat. 2021a. “Total government expenditure on defense.” https://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:Total_general_government_expenditure_on_defence,_2021_(%25_of_GDP).png
Eurostat. 2021b. “General Government Expenditure by Function.” https://ec.europa.eu/eurostat/databrowser/view/gov_10a_exp/default/table?lang=en
Greek Government. 2021. “Greece 2.0 – Pillars & Components.” https://greece20.gov.gr/en/pillars-and-components/
Greek Government. 2021. “Greece 2.0 – Pillars & Components.” https://greece20.gov.gr/en/pillars-and-components/
IMF World Economic Outlook (2023a). “General government gross liabilities as percent of GDP.” https://www.imf.org/en/Publications/WEO/weo-database/2023/October
IMF World Economic Outlook. 2023b. “General Government Primary Balance.” October. General Government Primary Net Lending/Borrowing. https://www.imf.org/en/Publications/WEO/weo-database/2023/October
OECD. 2023. “Economic Outlook No 113.” June 2023. https://stats.oecd.org/Index.asp
x?DataSetCode=EO
Presidency of the Hellenic Government. 2022. “Voluntary National Review on the Implementation of the 2030 Agenda for Sustainable Development.” https://hlpf.un.org/sites/default/files/vnrs/2022/VNR%202022%20Greece%20Report.pdf
The website of Greece’s audit office (“Elegktiko Synedrio”) is https://www.elsyn.gr/en
The website of “Office of the State Budget in Parliament” is https://www.hellenicparliament.gr/Dioikitiki-Organosi/Ypiresies/Other-Services/Grafeio-Proypologismou-tou-Kratous-sti-Vouli/
The website of the Independent Authority for Public Revenue (AADE) is http://www.aade.gr/
After overcoming the economic crisis of the previous decade, the COVID-19 crisis, and managing challenges with neighboring countries, Greece is now able to establish budgetary rules that ensure fiscal resilience. The government implements budgetary procedures that ensure transparency and sets budgetary priorities reflecting future well-being.
Financial support and technical assistance from the EU have been instrumental in these three dimensions of sustainable budgeting. With the help of the European Commission, the government incorporates long-term planning and conducts systematic, forward-looking assessments of the budget’s impact. The budgetary process and implementation are open, transparent, and regularly scrutinized by the parliament, the designated “Office of the State Budget in Parliament,” and Greece’s audit office, “Elegktiko Syndedrio.”
Policymakers prevent a continuous increase in public debt. Greece’s public debt (168% of GDP) remains the largest in the EU, but it has continuously fallen since 2020, when it stood at 212% of GDP (IMF World Economic Outlook 2023a).
The Greek state budget is now more consolidated and better processed than in the past. Under EU supervision – specifically the “European Semester” mechanism that applies to all EU Member States – there is systematic planning and programming of government revenue and expenses. Additionally, the level and servicing of the public debt are closely monitored.
Yet, risks still persist. Greece’s total government expenditure is higher than the EU average, accounting for 57% of GDP compared to the EU average of 51% (Eurostat 2021b). The general government primary balance, at 1.02% of GDP, is small but remains the highest in the EU (IMF World Economic Outlook 2023b). Due to the substantial loans provided by the country’s creditors during the crisis decade, gross interest payments by the general government are comparatively high (OECD 2023).
Greece continues to service its debt. The country’s economic growth in the post-Covid period (2.4% in 2023, European Commission 2023) suggests it will likely be able to maintain this. During economic expansion, the government accumulates financial reserves through the Independent Authority for Public Revenue (AADE).
Greece’s national budget explicitly addresses the Sustainable Development Goals (SDGs) and target values associated with expenditures for economic and social development through the country’s Recovery and Resilience Plan (“Greece 2.0,” Greek Government 2021). This plan “is structured around four key pillars inextricably linked to the core priorities and objectives of the SDGs: (i) green transition, (ii) digital transition, (iii) employment, skills and social cohesion, and (iv) private investment and economic and institutional transformation. It is worth pointing out that 37.5% of the national RRP will support climate-related objectives” (Presidency of the Hellenic Government 2022: 35).
Citations:
European Commission. 2023. “Economic Forecast for Greece.” https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/greece/economic-forecast-greece_en
Eurostat. 2021a. “Total government expenditure on defense.” https://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:Total_general_government_expenditure_on_defence,_2021_(%25_of_GDP).png
Eurostat. 2021b. “General Government Expenditure by Function.” https://ec.europa.eu/eurostat/databrowser/view/gov_10a_exp/default/table?lang=en
Greek Government. 2021. “Greece 2.0 – Pillars & Components.” https://greece20.gov.gr/en/pillars-and-components/
Greek Government. 2021. “Greece 2.0 – Pillars & Components.” https://greece20.gov.gr/en/pillars-and-components/
IMF World Economic Outlook (2023a). “General government gross liabilities as percent of GDP.” https://www.imf.org/en/Publications/WEO/weo-database/2023/October
IMF World Economic Outlook. 2023b. “General Government Primary Balance.” October. General Government Primary Net Lending/Borrowing. https://www.imf.org/en/Publications/WEO/weo-database/2023/October
OECD. 2023. “Economic Outlook No 113.” June 2023. https://stats.oecd.org/Index.asp
x?DataSetCode=EO
Presidency of the Hellenic Government. 2022. “Voluntary National Review on the Implementation of the 2030 Agenda for Sustainable Development.” https://hlpf.un.org/sites/default/files/vnrs/2022/VNR%202022%20Greece%20Report.pdf
The website of Greece’s audit office (“Elegktiko Synedrio”) is https://www.elsyn.gr/en
The website of “Office of the State Budget in Parliament” is https://www.hellenicparliament.gr/Dioikitiki-Organosi/Ypiresies/Other-Services/Grafeio-Proypologismou-tou-Kratous-sti-Vouli/
The website of the Independent Authority for Public Revenue (AADE) is http://www.aade.gr/
Graph View
How committed is the government to utilizing research and innovation as drivers for the transition to a sustainable economy and society?
10
9
9
The government is clearly committed to utilizing research and innovation as drivers for the transition to a sustainable economy and society.
8
7
6
7
6
The government is largely committed to utilizing research and innovation as drivers for the transition toward a sustainable economy and society.
5
4
3
4
3
The government is somewhat committed to utilizing research and innovation as drivers for the transition toward a sustainable economy and society.
2
1
1
The government is not at all committed to utilizing research and innovation as drivers for the transition toward a sustainable economy and society.
While Greece has a comparable number of researchers to other EU countries (researchers per 1,000 employed, Eurostat 2021a), public and private expenditure on research and innovation are far below the EU average (Eurostat 2021b).
There is a national strategy and a national plan to promote research and innovation (Ministry of Development 2023, Greek Government 2023). The strategy and the plan are formulated by the General Secretariat for Research and Innovation (GGEK) – a central unit of the Ministry of Development – and an independent council of scientists and experts, the National Council for Research, Technology, and Innovation (ESETEK).
However, the government does not consult the ESETEK council on a systematic basis, and the implementation of the national strategy, which is centralized, is slow. Monitoring the progress of research and innovation outcomes occurs sporadically.
Compared to other OECD countries, Greece lags in high-tech exports, intellectual property licenses, and various types of patents (Eurostat 2021). This deficit is primarily due to the relatively small size and low internal differentiation of Greek firms, as well as the chronic underfunding of research and innovation.
There is a newly emerging sector of innovation-oriented startup companies, but it is too early to assess its evolution. Moreover, there are good prospects for enhancing research and innovation soon, as this policy area is included in the fourth pillar of the “Greece 2.0” plan, financially supported by the EU’s Recovery and Resilience Facility (Greek Government 2021).
Citations:
Eurostat. 2021. “Total R&D personnel and researchers by sectors of performance, as % of total labor force and total employment, and by sex.” https://ec.europa.eu/eurostat/databrowser/view/RD_P_PERSLF/default/table?lang=en
Eurostat. 2021. “Intramural R&D expenditure (GERD) by sectors of performance and source of funds.” https://ec.europa.eu/eurostat/databrowser/view/RD_E_GERDFUND/default/table?lang=en
Greek Government. 2021. “Greece 2.0 – Pillars & Components.” https://greece20.gov.gr/en/pillars-and-components/
Greek Government. 2023. “National Plan to Promote Research, Technological Development, and Innovation.” http://www.opengov.gr/ypepth/wp-content/uploads/downloads/2010/08/Sxedio_Drasis_Enisxysi_ETAK.pdf
Eurostat. 2021. “High-tech Exports – Exports of High Technology Products as a Share of Total Exports.”
https://ec.europa.eu/eurostat/databrowser/view/HTEC_SI_EXP4/default/table?lang=en
Ministry of Development. 2023. “National Strategy on Research, Technological Development, and Innovation.” https://gsri.gov.gr/ethniki-stratigiki-erevnas-technologikis-anaptyxis-kai-kainotomias/
The website of the General Secretariat for Research and Innovation (GGEK) is https://gsri.gov.gr/en/
The website of the National Council for Research, Technology, and Innovation (ESETEK) is https://esetek.gov.gr/en/home/
There is a national strategy and a national plan to promote research and innovation (Ministry of Development 2023, Greek Government 2023). The strategy and the plan are formulated by the General Secretariat for Research and Innovation (GGEK) – a central unit of the Ministry of Development – and an independent council of scientists and experts, the National Council for Research, Technology, and Innovation (ESETEK).
However, the government does not consult the ESETEK council on a systematic basis, and the implementation of the national strategy, which is centralized, is slow. Monitoring the progress of research and innovation outcomes occurs sporadically.
Compared to other OECD countries, Greece lags in high-tech exports, intellectual property licenses, and various types of patents (Eurostat 2021). This deficit is primarily due to the relatively small size and low internal differentiation of Greek firms, as well as the chronic underfunding of research and innovation.
There is a newly emerging sector of innovation-oriented startup companies, but it is too early to assess its evolution. Moreover, there are good prospects for enhancing research and innovation soon, as this policy area is included in the fourth pillar of the “Greece 2.0” plan, financially supported by the EU’s Recovery and Resilience Facility (Greek Government 2021).
Citations:
Eurostat. 2021. “Total R&D personnel and researchers by sectors of performance, as % of total labor force and total employment, and by sex.” https://ec.europa.eu/eurostat/databrowser/view/RD_P_PERSLF/default/table?lang=en
Eurostat. 2021. “Intramural R&D expenditure (GERD) by sectors of performance and source of funds.” https://ec.europa.eu/eurostat/databrowser/view/RD_E_GERDFUND/default/table?lang=en
Greek Government. 2021. “Greece 2.0 – Pillars & Components.” https://greece20.gov.gr/en/pillars-and-components/
Greek Government. 2023. “National Plan to Promote Research, Technological Development, and Innovation.” http://www.opengov.gr/ypepth/wp-content/uploads/downloads/2010/08/Sxedio_Drasis_Enisxysi_ETAK.pdf
Eurostat. 2021. “High-tech Exports – Exports of High Technology Products as a Share of Total Exports.”
https://ec.europa.eu/eurostat/databrowser/view/HTEC_SI_EXP4/default/table?lang=en
Ministry of Development. 2023. “National Strategy on Research, Technological Development, and Innovation.” https://gsri.gov.gr/ethniki-stratigiki-erevnas-technologikis-anaptyxis-kai-kainotomias/
The website of the General Secretariat for Research and Innovation (GGEK) is https://gsri.gov.gr/en/
The website of the National Council for Research, Technology, and Innovation (ESETEK) is https://esetek.gov.gr/en/home/
Graph View
How committed and credible is the government in its activities to guide the effective regulation and supervision of the international financial architecture?
10
9
9
The government is clearly committed to ensuring the stability of the global financial system.
8
7
6
7
6
The government is largely committed to ensuring the stability of the global financial system.
5
4
3
4
3
The government is somewhat committed to ensuring the stability of the global financial system.
2
1
1
The government is not at all committed to ensuring the stability of the global financial system.
Greece, a Eurozone member state, is bound by Eurozone regulations and decisions of the Eurogroup. Representatives of the Greek government participate in appropriate EU forums where regulation and supervision of financial markets are discussed. Given the relatively small size of the Greek economy and its past problems – the economic crisis of the 2010s – it is not possible for Greece to actively guide the effective regulation and supervision of the international financial architecture.
Over time, Greece has made progress. It has overcome the economic crisis, and financial supervisory authorities have become more effective while non-performing loans have vastly declined between 2008 and 2023 (CEIC data 2023).
Greece ranks low in the IMF’s financial soundness indicators. It scores average in financial secrecy but below-average in international transparency commitments and international judicial cooperation on money laundering and other criminal matters. Compared to other Eurozone members, the country still struggles with non-performing loans of government units. Generally, however, Greece supports a more regulated international system for financial markets.
Citations:
On IMF’s financial soundness indicators: Financial soundness indicators (FSIs), regulatory Tier 1 Capital to Risk-Weighted Assets URL: https://data.imf.org/?sk=51B096FA-2CD2-40C2-8D09-0699CC1764DA).
On non-performing loans of banks: CEIC data 2023, “Greece Non-performing Loans,” https://www.ceicdata.com/en/indicator/greece/nonperforming-loans
On non-performing loans of government: Non-performing loans of government [GOV_CL_NPL] URL: https://ec.europa.eu/eurostat/databrowser/view/gov_cl_npl/default/table?lang=en
Over time, Greece has made progress. It has overcome the economic crisis, and financial supervisory authorities have become more effective while non-performing loans have vastly declined between 2008 and 2023 (CEIC data 2023).
Greece ranks low in the IMF’s financial soundness indicators. It scores average in financial secrecy but below-average in international transparency commitments and international judicial cooperation on money laundering and other criminal matters. Compared to other Eurozone members, the country still struggles with non-performing loans of government units. Generally, however, Greece supports a more regulated international system for financial markets.
Citations:
On IMF’s financial soundness indicators: Financial soundness indicators (FSIs), regulatory Tier 1 Capital to Risk-Weighted Assets URL: https://data.imf.org/?sk=51B096FA-2CD2-40C2-8D09-0699CC1764DA).
On non-performing loans of banks: CEIC data 2023, “Greece Non-performing Loans,” https://www.ceicdata.com/en/indicator/greece/nonperforming-loans
On non-performing loans of government: Non-performing loans of government [GOV_CL_NPL] URL: https://ec.europa.eu/eurostat/databrowser/view/gov_cl_npl/default/table?lang=en