Introduction Greece is a capitalist economy, which is comprised of different economic sectors. The public sector accounts for approximately 40% of the country’s Gross Domestic Product (GDP). Moreover, the country’s per capita GDP is approximately 75% of the leading economies in the Eurozone. The tourism sector accounts for 18% of the country’s GDP. The country’s annual growth rate between 2003 and 2007 was estimated to be 3.3% of the total GDP. Despite the positive economic performance, the country was adversely affected by the 2008 global economic recession. Consequently, the country experienced tight credit conditions. Greece is a major recipient of the European Union aid. The total annual aid is estimated to be 3.3% of the country’s GDP (“The Heritage Foundation” par. 8). In spite of the negative economic performance experienced over the past few years, Greece ranks 130 th amongst the freest economies according to the 2015 index. The country’s economic freedom score declined by 1.7 to 54.0 by the end of 2014. The decline arose from lapse in government control on public expenditure. Moreover, the negative economic performance is also associated with the decline in the level of labor, fiscal, and business freedom. The country ranks 40 th amongst the 43 European countries with reference to economic freedom, which places it below the regional and world average (“The Heritage Foundation” par. 9). This research paper seeks to undertake an extensive analysis of the Greece economy and financial environment. Analysis Internal and external economies of scale The existence of market fragmentation is a major hindrance in countries’ quest to achieve economic growth. Kollias affirms that market fragmentation mainly arises from socio-political atomization (88). Therefore, in order to be competitive in the global market, it is imperative for governments to focus on developing external and internal economies of scale. Kollias further asserts that internal “economies of scale are attained when industrial firms have a sufficient size and production level that guarantees that resources are combined efficiently and therefore output has a competitive price” (92). In order for industries established in different economic sectors to derive the benefits associated with large-scale economies of scale, it is imperative to adopt the concept of expanding their geographical market. Therefore, trade should not be limited within the national borders. On the contrary, firms should seek larger markets by entering the international market. In a bid to stimulate economic growth, firms should adopt the concept of external economies of scale by establishing strong inter-firm relations with reference to diverse aspects such as labor force training, research and development programs, and subcontracting joint supplies. Additionally, firms should integrate the concept of backward and forward relations. Kollias further affirms that in order for a “firm to benefit from external economies of scale, the national productive base must be rich in productive activities” (92). However, it is considerably difficult for small economies to attain external economies of scale on their own unless they are open to economic cooperation with the