COMMISSION STAFF WORKING DOCUMENT 2023 Country Report - Greece Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the 2023 National Reform Programme of Greece and delivering a Council opinion on the 2023 Stability Programme of Greece
Date: 2023-05-24
Institutions: European Commission, Secretariat-General
Subjects: Greece, economic policy, economic recovery, economic reform, energy policy, fiscal policy, health care, land register, stability pact, stability programme

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 24.5.2023  SWD(2023) 608 final  COMMISSION STAFF WORKING DOCUMENT 2023 Country Report - Greece Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the 2023 National Reform Programme of Greece and delivering a Council opinion on the 2023 Stability Programme of Greece {COM(2023) 608 final}  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC AND EMPLOYMENT SNAPSHOT 

share of impaired assets has been transferred 
to  credit  servicers  and  thus  remains  in  the 
economy.  Unemployment  has  been  steadily 
declining, and employment has fully recovered 
from the pandemic and is above pre-pandemic 
levels.  Reforms  and  investments  to  increase 
productivity, 
competitiveness,  and  export 
capacity, for example those undertaken in the 
context of the recovery and resilience plan, are 
crucial in gradually reducing vulnerabilities. 

Greece  was  affected  by  soaring  energy 
prices,  just  like other  EU  Member  States. 
Headline  inflation  averaged  9.3%  in  2022 
(Graph 1.1). For the first three quarters until its 
peak in  September  2022, inflation  was  driven 
by  the  surge  in  energy  prices,  which  has 
started  to  pass  through  to  other  prices, 
especially of services. Headline consumer price 
inflation is set to moderate in the years ahead, 
while food price inflation is set to remain more 
persistent,  given  the  lagged  impact  of  high 
energy costs on food production. 

Economic growth is set to slow 
down amid a challenging global 
environment 

it 

The Greek economy was among the most 
severely hit by the COVID-19 crisis in the 
EU  but 
recovered  swiftly.  After 
contracting by 9% in 2020, Greece’s GDP grew 
by  8.4%  in  2021  and  by  5.9%  in  2022.  The 
recession in Greece was deeper than in the EU 
on  average  (-5.6%)  but  was  followed  by  a 
more dynamic recovery. This pattern is largely 
explained  by  the  reopening  of  the  economy 
after  containment  measures  were  lifted  and 
the  strong  responsiveness  of  the  tourism 
sector, which accounts for a sizeable share of 
Greek  GDP.  By  early  2022,  Greece  had 
recovered  the  output  losses  it  had  incurred 
since the end of 2019. 

When  the  energy  crisis  hit,  the  recovery 
slowed  down.  While  strong  growth  was 
recorded  in  the  first  half  of  2022,  rising 
inflation  took  its  toll  on  the  economy  in  the 
second half of the year, mainly by weakening 
private consumption growth. 

Greece  exhibits  several  macroeconomic 
vulnerabilities  which  are  assessed  in  the 
in-depth  review.  (1)  These  are  linked  to  the 
high  level  of  public  debt,  a  widened  current 
account  deficit  (though  partly  driven  by  the 
energy  crisis),  a  still  large  stock  of  non-
performing  loans,  and  high  unemployment 
(Annex  22).  However,  the  public  debt-to-GDP 
ratio  fell  sizeably  in  2022  (and  is  set  to  fall 
further).  Bank  exposures  to  non-performing 
loans decreased significantly, although a large 

(1)   European Commission (2023), In-Depth Review for 
Greece, Commission staff working document 
(COM(2023) 631 final), 

2 

 
 
                                                 
financing remains limited, despite the progress 
in recent years (see Annex 18). 

Economic growth mitigated the impact of 
crisis-related  spending  on  public  debt. 
Greece’s  public  debt  rose  to  a  record  high  of 
206.3%  of  GDP  in  2020  and  remains  the 
highest  in  the  euro  area,  although  it  has  a 
favourable  profile  and  repayment  structure. 
However,  strong  nominal  GDP  growth,  driven 
by both real GDP growth and inflation, helped 
bring down the debt-to-GDP ratio to 171.3% in 
2022. 

The  current  account  deficit  continued  to 
increase  last  year,  and  stabilisation  of 
the net international investment position 
remains  a  challenge.  The  current  account 
deficit has widened since 2020, mainly due to 
the  deteriorating  balance  of  trade  in  goods 
that  was  only  partially  offset  by  the  marked 
improvement  in  the  balance  of  trade 
in 
recent 
services 
(Graph 
international 
improvements,  Greece’s  net 
investment  position  stood  at  -141.3%  of  GDP 
in  2022,  below  the  EU  average.  Net  liabilities 
are  mainly 
composed  of  public  debt 
instruments  held  by  official  creditors,  but  the 
share of private sector debt also recently rose. 

1.2).  Despite 

The  labour  market  has  weathered  the 
health  and  energy  crisis  well.  Since  2020, 
public  support  measures  have  helped  prevent 
major job losses. Combined with the economic 
recovery  that  followed,  they  have  led  the 
employment  rate  to increase  to  a  record  high 
of 66.8% by the fourth quarter of 2022, albeit 
still 8 percentage points below the EU average. 
Meanwhile,  the  unemployment  rate  continued 
to  decline  reaching  a  12-year  low  (11.8%  by 
the  end  of  2022),  yet  remained  among  the 
highest in the EU; joblessness disproportionally 
affected  young  people  (aged  15-29)  and 
respectively. 
women  24.9%  and  15.6% 
Nominal 
employee 
increased by 5.1% in 2022, which is below the 
rate  of  inflation,  resulting  in  a  decline  in  real 
wages  of  4.7%.  The  government  has 
announced a further increase in the minimum 
wage  by  9.4%  as  from  1 April  2023.  This  is 
expected to partially offset the further decline 
in real wages in 2023. 

compensation 

per 

Graph 1.1: Energy and non-energy inflation, % 

Source: Eurostat. HICP stands for the Harmonised Index 
of Consumer Prices which is a measure of inflation. It 
reflects the change over time of prices paid by 
households for a representative basket of goods and 
services.  

Bank  profitability  has 
increased,  but 
challenges remain. The profitability of banks 
increased  on  the  back  of  lower  provisions  for 
potential  losses,  new  more  profitable  lending 
in  2022  and  one-off  trading  gains.  This  has 
helped restore the banks’ capital position as of 
end-September 2022 back to end-2021 levels, 
although  capital  quality,  albeit 
improving, 
remains  weak.  Going  forward,  rising  interest 
rates  risk  reducing  the  repayment  capacity  of 
debtors and put pressure on asset quality and 
credit  demand.  Rising  rates  also  increase 
banks’ funding costs, given that banks need to 
issue long-term debt (at higher rates) to meet 
minimum  regulatory  requirements.  On  the 
positive  side,  the  planned  repayments  of 
previous  longer-term  funding  granted  by  the 
European  Central  Bank (2),  have  already 
started and are likely to be completed without 
major effects on liquidity ratios. Net lending to 
non-financial  corporations  picked  up  in  2022, 
while  net  lending  to  households  was  still 
declining. The cost of borrowing is higher than 
the  average  in  the  euro  area,  particularly  for 
households  and  small  businesses,  and 
is 
further  increasing  due  to  rising  interest  rates. 
At the same time, business access to non-bank 

(2)  Under the targeted longer-term refinancing operations 

(TLTRO III).  

3 

0.02.04.06.08.010.012.014.0HICPHICP excluding energy 
  
                                                 
follows a period of energy efficiency gains for 
the  economy  as  reflected  in  the  21%  energy 
intensity reduction between 2012-2021. 

took 

temporary 
government 
The 
impact  of 
measures  to  cushion  the 
soaring  energy  prices.  These 
included 
subsidies  to  energy  users,  social  transfers  to 
vulnerable households, subsidies for fuels, and 
cuts  to  indirect  taxes  on  transport  services 
(Box 1). 

Greece has made progress in diversifying 
its sources of energy. In 2022, for the first 
time,  renewables  accounted  for  the  largest 
share  in  the  country’s  electricity  production 
(42%).  Gas  exports  rose  by  289%  in  2022, 
mainly 
imports 
to  Bulgaria.  Electricity 
increased  slightly  in  2022  compared  with 
2021  (by  2%),  with  Bulgaria  providing  the 
largest  share.  Greece  remains  committed  to 
phasing out lignite-based electricity production 
by  2028  and  to  further  increasing  the  use  of 
renewable sources of energy. 

Graph 1.2: Current account balance 

Source: AMECO database 

The economy is becoming more 
energy efficient and adjusting to 
higher energy prices 

In  response  to  the  energy  crisis,  energy 
demand  has  fallen  sharply.  Since  the 
outbreak  of  the  crisis,  retail  electricity  prices 
for households have been increasing but have 
been  kept  below  the  EU  average  level,  while 
retail gas prices for industry have been moving 
close  to  the  EU  average  overall.  On  the 
contrary,  since  mid-2021,  retail  electricity 
prices  for  industry  have  been  increasing  to 
levels  that  exceeded  the  EU  average,  while 
for  households  have 
retail  gas  prices 
converged  to  EU  average  levels  only  more 
recently.  Domestic  gas  consumption  fell  by 
19%  in  2022  and  gas  imports  from  Russia 
through pipelines was more than halved. Since 
Russia’s  war  of  aggression  against  Ukraine, 
consumption  of  natural  gas  and  electricity 
have  been  significantly  reduced.  Greece’s 
consumption  of  natural  gas  has  dropped  by 
22%  in  the  period  August  2022-March  2023, 
compared  with  the  average  over  that  same 
period  in  the  last  5  years  (above  the  15% 
reduction  target),  while  the  reduction 
in 
electricity  consumption  was  11.6% (3).  This 

(3)  For consumption of electricity, the data in the 
comparison runs only until February 2023.   

4 

-25-20-15-10-5051015200820092010201120122013201420152016201720182019202020212022Goods BalanceServices BalanceCurrent Account Deficit 
  
                                                 
 
 
 
 
 
Box 1: 

Economic and fiscal aspects of energy measures taken 

Greece  has  adopted  several  support  measures  to  cushion  the  impact  of  energy  price 
inflation  on  households  and  businesses.  The  Commission’s  2023  Spring  Economic 
Forecast  projects  the  country’s  gross  budgetary  costs  to  amount  to  0.9%  of  GDP  in 
2023 (4).  Most  measures  do  not  preserve  the  price  signal  and  do  not  target  the  most 
vulnerable.  Nevertheless,  both  gas  and  electricity  consumption  have  fallen  more  than 
the EU average in the period August 2022–January 2023. The energy support measures 
are  expected  to  be  phased  out  by  the  end  of  2023,  depending  on  energy  price 
developments. 

Specifically, the principal vehicle of support is a price subsidy on electricity consumption 
to  which  all  households  and  firms  are  eligible  irrespective  of  their  consumption  or 
income.  Through  this  subsidy,  which  has  become  scaled  to  consumption  and  has  an 
estimated budgetary cost of 4.1% of GDP in 2022 and 0.9% of GDP in 2023, the Greek 
state  covers  a  significant  part  of  the  electricity  price  increase,  thereby  reducing  the 
effectiveness  of  price  incentives  to  limit  energy  consumption.  Similarly,  the  subsidies 
given in response to high fuel prices were also not targeted as they benefited the vast 
majority of households. Some more targeted income support measures have also been 
adopted albeit of a smaller size. These included a temporary increase in the heating oil 
subsidy, 
low-income  pensioners  and  vulnerable 
households, and additional disbursements of child benefits. 

income  transfers  to 

increased 

Greece  applied  the  EU  solidarity  contribution  in  application  of  Council  Regulation  (EU) 
2022/1854 (5) at a rate of 33% for the fiscal year 2022. In addition, an extraordinary 
90% levy on the windfall revenues of energy producers for the period October 2021 to 
June 2022 was applied. As of July 2022, a price cap has been introduced for each type 
of  electricity  producer.  Excess  revenues,  i.e.  the  profits  due  to  the  difference  between 
the market price at which producers continue to sell electricity and the set price cap, are 
transferred  to  the  government  and  used  to  finance  the  price  subsidy  on  electricity 
consumption. 

Greece managed to ensure a high level of gas supply security in 2022. Liquefied natural 
gas (LNG) imports increased  considerably; Revythousa was the main entry point (44% 
of imports) and the US the main supplier accounting for over 50% of Greece’s total LNG 
imports. Given the fact that Greece has no underground storage facilities, it procured a 
floating storage unit connected to Revythousa, increasing the capacity from 225 to 375 
million  cubic  metres.  Moreover,  in  2022  the  Greece-Bulgaria  gas  interconnector  was 
commissioned  and  both  countries  continue  working  to  maximise  gas  reverse  flows. 
While  energy  prices  have decreased,  uncertainty  remains  regarding  next  winter,  which 
requires continued efforts to structurally reduce gas demand. 

(4)  For 2022, the gross budgetary cost of measures 

amounted to 4.8% of GDP. Some of the measures 
outlined in this box were already in place in 2021. 

(5)  That is the application of a mandatory temporary 

solidarity contribution at a rate of at least 33% to the 
extraordinary and unexpected profits of businesses 
active in the extraction of crude petroleum, natural gas, 
coal, and refinery sectors. It is calculated on taxable 
profits, as determined under national tax rules in the 
fiscal year starting in 2022 and/or in 2023, which are 
above a 20% increase of the average yearly taxable 
profits in 2018-2021. 

The energy crisis increases the 
urgency of addressing economic 
and social challenges 

Greece’s  investment  rate  remains  low, 
although EU resources and increasing FDI 

5 

 
                                                 
 
exclusion  and  a  relatively  high  share  of  the 
population  reports  unmet  medical  care  needs 
(Annex 14). 

Regional  disparities  remain  significant. 
With  more  than  half  of  its  population  and  a 
little  less  than  two  thirds  of  its  economy 
concentrated  in  the  regions  of  Attica  and 
Central  Macedonia,  Greece  features  a  rather 
disparate  economic  development  model.  The 
large disparities in GDP per capita are notably 
due  to  cross-region  inequalities  in  innovation 
performance, digital integration and skills (see 
Annexes 11, 15, 17). 

With  support  from  EU  funds,  the  country 
is  gradually  moving  towards  a  more 
sustainable  development  model.  Greece  is 
improving  on  almost  all  United  Nations 
Sustainable Development Goals (SDGs) related 
to  environmental  sustainability,  although  it 
needs to catch up with the EU average. Albeit 
starting from a relatively low position, over the 
last  5 years  Greece  has  brought  the  use  of 
renewable  energy  sources  to  the  EU  average, 
and  it  significantly  reduced  greenhouse  gas 
emissions.  Nonetheless,  access  to  affordable 
and  green  energy  remains  challenging  with 
17.5%  of  its  population  being  unable  to  keep 
their  home  adequately  warm  (2021  data). 
Greece  also  fares  better  than  in  the  past  in 
several  dimensions  of  fairness,  productivity 
and  macroeconomic  stability.  Nevertheless, 
there 
improvement, 
including to tackle unemployment, inequalities 
and  poverty,  especially  in  rural  areas  (see 
Annex  1).  EU  funds  such as  the  Recovery  and 
Resilience  Facility  and  the  cohesion  policy 
funds  provide  key  support  to  Greece’s  efforts 
to  meet  its  SDGs  (Annex  3,  4)  and  its  2030 
national  targets  on  employment,  skills,  and 
poverty reduction (Annex 5, 14). 

room  for  further 

is 

reduction 

in  private 

inflows  are  helping  to  reduce  the  gap 
with  EU  peers.  Between  2010-2019, 
investment  fell  sharply,  reaching  10.7%  of 
GDP  in  2019.  This  reflected  both  cyclical  and 
structural  factors and was largely driven by a 
marked 
investment. 
However,  investment  rates  have  been  rising 
since  2019  to  reach  13.7%  of  GDP  in  2022, 
also  because  of  the  Recovery  and  Resilience 
Facility  (RRF),  other  EU  funds,  and  increasing 
FDI 
reducing  Greece’s 
investment  gap  relative  to  the  EU  average 
from 11.5% of GDP in 2019 to 8.7% of GDP in 
2022. 

inflows, 

thereby 

Labour  productivity  falls  short  of  the  EU 
average  and  the  gap  has  widened  in  the 
last  decade.  R&I  expenditure  by  businesses 
was  below  the  EU  average  in  2022.  Real 
productivity  per  hour  worked  remained  below 
2010  levels,  largely  due  to  slow  productivity 
growth in the last 12 years in key sectors, such 
as  services  and  construction.  Productivity 
levels  in  the  manufacturing  sector  are  in  line 
with the EU average, but the share of industry 
in the economy has been on a declining trend 
for  many  years.  Meanwhile,  there  has  been  a 
steady decline in real  unit labour costs during 
the last decade, as the decline in wages more 
than 
productivity 
performance.  Regulatory  restrictions  in  the 
access  to  and  exercise  of  certain  business 
services are higher than in the EU on average, 
resulting in  lower  competition,  higher  average 
costs and hence lower competitiveness (Annex 
12).  Looking  ahead,  ensuring  competitiveness 
by fostering labour productivity remains key. 

offset 

weak 

the 

While  living  and  working  conditions,  as 
reflected  in the  European  Pillar  of  Social 
Rights,  are  better  overall  than  5 years 
ago,  significant social  challenges remain. 
While  the  share  of  children  that  leave  school 
early is among the lowest in the EU, access to 
the 
labour  market  and  further  upskilling 
opportunities remains difficult. Unemployment 
is  gradually  decreasing,  but  there  remains  a 
high 
in 
employment,  education  or  training.  Also,  only 
around  half  of  women  are  employed  as 
opposed to more than 70% of men, one of the 
largest employment gaps in the EU. Nearly one 
third of children are at risk of poverty or social 

share  of  young  people  not 

6 

 
THE RECOVERY AND RESILIENCE PLAN IS UNDERWAY 

Greece’s  recovery  and  resilience  plan  (RRP) 
aims to address the key challenges related to 
the green and digital transitions, employment, 
skills  and  social  cohesion,  private  investment, 
and economic and institutional transformation. 
It consists of 68 reforms and 106 investments 
that  are  supported  by  EUR 17.4  billion  in 
grants  and  EUR 12.7  billion  in  loans  (in  2018 
constant prices), representing 14.5% of GDP in 
2022 (see Annex 3 for more details).  

going 

forward. 

The  implementation  of  Greece’s  recovery 
and  resilience  plan  has  so  far  been  well 
underway,  however  it  is  facing  some 
challenges 
Greece 
submitted  3  payment  requests  for  non-
repayable  financial  support (6)  and  2  payment 
requests for loan support, corresponding to 85 
milestones  and  targets  in  the  plan.  To  date, 
Greece  has  received  an  overall  disbursement 
of  EUR  7.1  billion  for  two  approved  payment 
requests,  excluding  pre-financing.  (see  Annex 
3). Whilst Greece is off to a strong start, there 
are  substantial  risks  going  forward,  which 
warrant  continuous  efforts  to  maintain  and 
enhance  the  implementation  momentum.  The 
plan contains a significant number of reforms 
and  investments  which  by  its  sheer  size 
represents  a  large  administrative  burden.  At 
this  stage,  the  implementation  of  the  plan  is 
reaching a phase that will rely on regional and 
local  administrations,  whose  administrative 
is  generally 
and 
weak.  The  completion  of  a  number  of 
measures  in  the  plan  requires  a  series  of 
preparatory 
public 
steps, 
timely 
procurement  procedures.  Ensuring 
progress  with  those  will  require  continuous 
strong  coordination  of  and  assistance to local 
and regional implementing bodies.  

implementation  capacity 

including 

Greece  has  not  yet  submitted  an 
amendment  of  its  plan.  The  plan  is 
expected to be revised in 2023 to include, 
among  others,  additional  reforms  and 
investments  in  the  REPowerEU  chapter. 
However,  discussions  with  Greece  on  the 
REPowerEU chapter are still at an initial stage. 
In  March  2023,  Greece  communicated  to  the 
request  an 
intention 
Commission 
additional  loan  of  EUR  5  billion,  with  the  aim 
to  bring  its  total  loan  envelope  to  EUR  17.7 
billion.  Going  forward,  it  would  be  important 
for Greece to swiftly finalise the addendum to 
the plan, including the additional loan request, 
and  the  REPowerEU  chapter  with  a  view  to 
rapidly starting its implementation.  

its 

to 

The  following,  more  detailed 
review  of 
measures being implemented under the RRP in 
no way implies formal Commission approval or 
rejection of any payment requests.  

Investments  and  reforms  to  support  the 
green  transition  are  making  progress. 
Greece  launched  calls  for  the  renovation  of 
more  than  100 000  residential  properties  to 
improve  energy  efficiency,  with  some  funds 
earmarked  for  energy-poor  households.  This 
investment  is  expected  to  yield  significant 
primary  energy  savings  (on  average  30%).  To 
increase the share of renewables in the energy 
mix,  Greece  introduced  a  new  framework  for 
the licensing of renewables, including offshore 
wind  parks  and  a  new  support  scheme  for 
renewable  energy  production (7).  Moreover, 
Greece  introduced  a  ‘Guarantee  of  Origin’ 
system, 
and 
businesses  to  use  energy  from  renewable 
sources in their energy mix. In addition, Greece 

encouraging 

consumers 

(6)  Greece submitted its third payment request for non-

repayable financial support on 16 May 2023 and the 
assessment by the Commission is ongoing. 

(7)  The latter is expected to add an additional 3 gigawatts 
to the electricity production capacity from renewable 
energy sources. 

7 

 
 
                                                 
 
                                                 
introduced  a  new  waste  management 
framework to support the transition towards a 
circular  economy.  A  framework  contract  law 
will  enable  the  land  rehabilitation  of  Greece’s 
former  lignite  mines  in  Western  Macedonia 
and  Megalopolis,  building  on 
its  national 
energy  and  climate  plan.  The  Just  Transition 
Fund will follow up with the repurposing of the 
land upon its rehabilitation. 

To  promote  sustainable  transport,  key 
reforms were put in place paving the way 
for  investments  in  railways,  urban  public 
bus  transport  and  electromobility.  Greece 
adopted  legislation  for  the  reorganisation  of 
the  companies  owning  and  managing  the 
railway infrastructure. Once fully implemented, 
the reform is expected to help Greece develop, 
operate  and  maintain  a  modern  and  safe 
railway  network.  Greece  also  adopted  a 
modern 
legal  framework  for  public  bus 
transport  services,  aimed  at  promoting 
competition, enabling bus companies to invest 
in greener vehicles, and increasing the quality 
and affordability of consumer services. Lastly, 
Greece  adopted  a  comprehensive  regulatory 
framework  to  promote  the  installation  and 
operation  of  charging  stations  for  electric 
vehicles across Greece, putting the country on 
a  path  to  reach  the  target  of  30%  electric 
vehicle usage by 2030. 

Greece has launched projects to digitalise 
the public administration and the broader 
economy. Greece began to digitalise its public 
administration,  making  it  more  efficient  and 
accessible  for  citizens.  This 
includes  the 
digitalisation  of  archives,  the  development  of 
IT  and  IT  security  infrastructure,  and  the 
simplification  of  administrative  processes. 
Greece has also launched a scheme to support 
SME  adoption  of  digital  technologies.  Upon 
completion,  the  project  is  expected  to  help  at 
least  100 000  SMEs  in  purchasing  general 
digital tools and services and at least 500 000 
SMEs  in  upgrading  their  cash  registers  to 
also 
computer-based 
launched  a  training  programme  for  judges  to 
improve their digital  skills relevant for judicial 
duties. 

solutions.  Greece 

To  improve  the  functioning  of  the  labour 
market  and  promote  social  integration, 

8 

Greece  has  reformed  labour  legislation, 
upgraded its lifelong learning system and 
modernised  public  employment  services. 
The  labour  law  of  June  2021  modernised 
individual  and  collective  labour  legislation  as 
well as the framework for work-life balance. It 
was  followed  by  a  thorough  organisational 
reform  of  the  public  employment  service,  a 
revision  of  the  obligations  that  apply  to  the 
service and to jobseekers, and a reform of the 
national  lifelong  learning  system  to  improve 
the  quality  and  labour  market  relevance  of 
training  programmes.  The  latter  reform  also 
sets 
training 
programmes,  including  on  highly  demanded 
digital  and  green  skills,  to  more  than  half  a 
million  people  until  2025.  With  support  from 
the  RRF,  Greece  has  also  embarked  on  the 
digital  transformation  of  employment  and 
social security services and it has introduced a 
personal  assistance  pilot  scheme  for  people 
with  disabilities  that  applies  a  new  disability 
assessment  approach  in  line  with  EU  best 
practices. 

for  delivering 

the  basis 

to 

bolster 

reforms 

completed  key 

Greece 
to 
stimulate private investment, particularly 
the  green  and  digital 
to 
related 
transitions, 
the 
and 
competitiveness of its economy. A law was 
adopted  to  tackle  weaknesses  related  to  the 
predominantly small size of Greek enterprises. 
Specifically,  the  law  introduced  tax  and  other 
incentives to encourage the self-employed and 
SMEs to increase their size and to benefit from 
business 
economies 
transformations  and  cooperation  schemes, 
such  as  joint  ventures  and  clusters.  Greece 
also  introduced  tax  incentives  for  green  and 
digital 
investments  by  SMEs.  Lastly,  a 
comprehensive, clear and more attractive legal 
framework was put in place for investments of 
strategic  importance  to  the  Greek  economy. 
This  includes  support  for  the  transition  to  a 
low-carbon 
promoting 
innovation and technology diffusion. 

economy 

through 

scale 

and 

of 

Greece  pursued  specific  reforms  and 
investments  to  strengthen  the  resilience 
of  key  sectors of  its  economy.  It launched 
subsidy schemes to promote the development 
of  next  generation  industrial  parks  and  the 
in 
smart 
deployment 

technologies 

of 

 
licensing  and  operation  of 

manufacturing  sector  SMEs.  Greece  also 
launched  a  support  programme  to  modernise 
its  agricultural  sector  through  innovation,  the 
green  transition  of  agricultural  units,  and  the 
development  of  agritourism.  Furthermore,  an 
improved regulatory framework is in place for 
the 
tourism 
facilities,  including  tourist  ports,  which  is 
expected  to  contribute  to  the  development  of 
the  tourism  sector,  which  is  an  area  of  great 
potential for Greece. To promote research and 
development, Greece launched the procedures 
for  the  creation,  expansion  and  upgrade  of 
infrastructures  of 
research  centres  and 
technological institutions across Greece. 

To improve access to finance and support 
private  investments,  in  particular  in  the 
green  and  digital  areas,  Greece  has 
enacted  the  loan  facility  under  the  RRF. 
loan  facility (8)  facilitates  access  to 
The 
affordable  credit  for Greek  businesses  amidst 
heightened  economic  uncertainty  and  it  aims 
to leverage private investment. 

(8)  The loan facility framework concerns the provision of 
loans through international financial institutions and 
commercial banks (EUR 11.7 billion), the establishment 
of an equity instrument to provide equity support to 
dynamic mid-caps and SMEs through two Fund-of-
Funds schemes (EUR 500 million), and the mobilisation 
of additional funds for Greece’s part of the InvestEU 
Programme, through the provision of guarantees to 
companies in the areas of green and sustainable 
transformation, competitiveness, innovation and 
digitalisation (EUR 500 million). 

9 

 
                                                 
Box 2:  Key deliverables under the RRP in 2023-24 

  Completion  of  renovations  of  at  least  8 000  residential  buildings  to  improve  their 
energy  efficiency,  and  approval  of  at  least  9 700  companies  for  energy  efficiency 
renovations. 

 

 

Start  of  the  projects  to  promote  resilience  and  environmental  protection  of  the 
electricity network, overhead networks in forest areas, and capacity increases of  high- 
and medium-voltage substations. 

Implementation of organisational reform in the rail sector and full operationalisation of 
the  new  Hellenic  Railway  Organisation  (OSE)  and  its  construction  manager  (ERGOSE), 
and full  deployment of the European Rail Traffic Management System (ERTMS) in the 
core railway network. 

  Completion of digitisation of at least 30% of  total archives across all 9 subprojects in 

the public administration. 

  Adoption  of  primary  legislation  establishing  the  rewarding  system  in  the  public 

administration. 

  Adoption  of  legislation  providing  for  professional  work  streams  for  staff  dealing  with 

public procurement. 

 

Simplification and codification of tax legislation, and launching of an IT platform to fully 
automate VAT refunds. 

  Modernisation of justice, through upskilling of judges, upgrading of the record-keeping 
and  IT  systems  in  courts,  adoption  of  legislation  to  monitor  and  improve  the 
performance of judicial clerks, and starting the construction and renovation of energy-
efficient  court  buildings.  Revision  of  the  judicial  map  for  all  branches of  the  judiciary,  
for the reorganization of judicial districts across Greece and the rational distribution of 
judicial structures in these districts, with at least 70% of administrative courts, and at 
least 40% of civil and criminal courts fully operational and functional. 

  Modernisation  and  digitalisation  of  the  public  health  sector,  including  through  starting 
the project for the energy-efficiency renovation of at least 156 health centres, the full 
operation of  an additional 56 mental  health  units, and  completing the national digital 
health record and cancer digital health projects. 

  Completion of digital and green upskilling programmes for nearly 150 000 people. 

  Advancing on the de-institutionalisation of children, notably through the placement of 
minors with severe disability and/or mental disorders in the care of professional foster 
carers and the placement of adolescents in semi-independent living apartments. 

 

Signing of loan agreements for a total EUR 5.9 billion under the loan facility. 

of 

economies 

Specifically, it supports investments related to 
the  green  transition  and  digitalisation  (37% 
and  20%  of  the  total  allocation),  thereby 
encouraging 
and 
innovation  and  increasing  export  capacity.  To 
this  end,  the  Greek  authorities  took  all  the 
necessary  actions  to  fully  establish  the  loan 
facility framework. So far, the take-up of RRF-
financed  loans  has  been  significant.  Namely, 
loan  agreements  for  a  total  EUR  5.74  billion 
have been signed  up to April  2023 to finance 

scale 

investments  in  clean  and  efficient  production 
and use of energy, sustainable transport, very 
high-capacity  networks,  and  digitalisation  of 
enterprises. 

10 

 
 
 
FURTHER PRIORITIES AHEAD 

its 

Still, 

does 

system 

healthcare 

administration. 

Greece  faces  challenges  beyond  those 
tackled  in  the  recovery  and  resilience 
plan.  Despite  the  sharp  fall  last  year,  public 
sector indebtedness remains high and taxation 
of businesses remains complex, while there is 
evidence  of  low  tax  compliance,  particularly 
among  the  self-employed.  The  public  sector 
wage  bill  in  terms  of  GDP  has  been  broadly 
aligned  with  the  EU  average  and  Greece 
continues  to  take  steps  to  modernise  the 
public 
overall 
performance  remains  low,  partly  due  to  the 
challenge  of  attracting  and  maintaining  high-
calibre  staff.  The  healthcare  sector 
is 
characterised  by  high  direct  payments  for 
services outside the benefits package and the 
not 
primary 
sufficiently fulfil its role as the first entry point 
into  the  system  for  patients.  Despite  a  series 
of  adopted  reforms  and  progress  in  certain 
aspects  of  the  business  environment,  doing 
business remains hampered  by constraints on 
access  to  finance  and  public  administration 
inefficiencies.  The  cadastral  mapping  remains 
to  be  finalised.  While  the  share  of  non-
performing  loans  in  bank  balance  sheets  has 
decreased  markedly,  the  effective  workout  of 
both new and legacy non-performing loans by 
banks and credit servicers remains key for the 
resilience  of  the  financial  sector.  Providing 
effective activation support to the unemployed 
depends 
capacity 
constraints.  Greece  remains  highly  dependent 
on  fossil  fuels  and  existing  storage  and 
network  capacities  are  not  enough  to  enable 
the 
expanding 
integration 
in  the  coming  years.  Energy 
renewables 
efficiency  actions  should  be  strengthened  to 
ensure  that  set  objectives  are  met,  including 
the swift roll-out of smart meters. Addressing 
these challenges will also help to make further 
progress  in  achieving  the  SDGs  where  Greece 
further 
currently 
to 
improvement,  namely 
environmental  sustainability  (SDGs  2,  6,  7,  9, 
11,  12,  13,  15),  fairness  (SDGs  1,  3,  4,  5,  7) 

administrative 

smooth 

related 

shows 

those 

room 

for 

on 

of 

productivity (SDGs 4, 8, 9) and macroeconomic 
stability (SDGs 8, 16, 17). 

Sustainability of public finances 
remains a priority 

by 

High  public  sector  debt  calls  for  prudent 
fiscal  policies  in  the  medium  term.  In 
2022, government debt fell sharply relative to 
GDP (from 194.6% of GDP in 2021 to 171.3% 
in 2022), while it is forecast to drop further to 
160.2% in 2023. Government debt is primarily 
held 
on 
concessional terms and the financing needs of 
to  be 
the  public  sector  are  expected 
manageable  in  the  coming  years.  Meanwhile, 
sustainability 
the 
analysis (9) 
to  debt 
sustainability are low in the short term, high in 
the medium term and low in the long term.  

Commission’s 
indicates 

debt 
that 

creditors 

official 

sector 

risks 

in  Greece’s  tax  policy 
Modifications 
framework  and  continuing  efforts  to 
strengthen  tax  administration  could  help 
address  the  investment  gap  and  enforce 
introduction  of  an 
tax  compliance.  The 
advance  tax  ruling  system  could  strengthen 
legal  certainty  for  investors  and  reinforce 
ongoing  efforts  to  simplify  the  tax  system. 
There  is  also  scope  to  enlarge  the  tax  base 
and  enforce  tax  compliance  of  the  self-
employed.  Data  suggest  that  the  turnover 
generated by the self-employed has increased 
rapidly,  while  their  declared  incomes  have 
hardly  risen (10).  This  discrepancy  is  likely  to 
point to  substantial  tax  evasion  and  a  loss  of 

(9)  Post programme surveillance report, Greece, May 2023. 

(10)  Based on the 2021 tax returns, more than 67% of the 
self-employed declared an annual income of below 
EUR 10 000. Overall declared income was EUR 4.2 
billion, compared with EUR 48.6 billion of sales turnover. 

11 

 
 
                                                 
the 

information 

revenues.  The  situation  could  be 
fiscal 
improved by reviewing the existing tax system 
of  the  self-employed  and  making  increased 
use  of 
from  electronic 
payments.  This  is  consistent  with  the  ongoing 
digitalisation  of the  Independent  Authority  for 
Public  Revenue  (IAPR),  which  continues  to  roll 
out  new  digital  tools  and  services  to  citizens 
and businesses. Enhancing IAPR’s autonomy to 
manage and develop its human resources and 
IT  infrastructure  will  also  be  key  for  the 
successful 
ongoing 
investments  under  Greece’s  recovery  and 
resilience plan, such as the replacement of its 
core tax information system. 

implementation 

of 

Going 

Improving  the  efficiency  of  the  public 
administration  remains  key.  The  public 
wage bill remained stable in 2022 at 10.8% of 
GDP,  broadly  aligned  with  the  EU  average 
(10.2%  of  GDP) (11).  Greece  is  phasing  in  its 
human 
system, 
resource  management 
including  goal-setting,  with  the  aim  to  ensure 
an  efficient  allocation  of  resources  and  to 
provide  incentives  to  maintain  a  high-quality 
workforce. 
possible 
adjustments made to the remuneration of civil 
incentivising 
servants, 
managers to take up additional responsibilities 
linked  to  the  new  appraisals  and  reward 
systems,  is expected  to  maintain  the integrity 
of  the  unified  wage  grid  across  the  public 
In  addition,  despite  some 
administration. 
progress  on 
law-making 
improving  good 
procedures,  timely  and  genuine  stakeholder 
consultation prior to new legislative initiatives 
remains suboptimal. 

for  example  by 

forward, 

in 

27%  respectively),  while  spending  on  long-
term  and  preventive  care  remains  among  the 
lowest  in  the  EU  (0.1%  and  0.2%  of  GDP  in 
2020  vs  1.5%  and  0.3% 
the  EU 
respectively).  Also,  no  comprehensive  national 
strategy  on  long-term  care  is  yet  in  place. 
Hospitals  are  the  main  providers  of  curative 
care, while ambulatory care receives only little 
public  funding.  At  the  same  time,  public 
spending on pharmaceuticals is the highest in 
the EU relative to GDP (1.6% in 2020 vs 1.1% 
in the EU). 

reform 

The  primary  healthcare 
is 
expected  to  ensure  full  and  equal  access 
to  healthcare  but  it  suffers  from  a 
shortfall  in  doctors.  The  newly  adopted 
primary healthcare system provides incentives 
for patients to use their family doctors as the 
first  point  of  contact  to  help  them  navigate 
through  the  healthcare  system.  In  July  2022, 
citizens  started  to  register  in  the  new  system 
and  4.8  million  citizens  had  registered  to  a 
family  doctor  (55%  of  the  total  eligible 
population) by end-April 2023. By contrast, the 
number of family doctors enrolled in the public 
healthcare  system  is  not  sufficient  to  cover 
the entire population (12). The goal is to reach a 
number  of  doctors  that  covers  the  entire 
population  by  September  2023.  This  calls  for 
additional  measures  to  strengthen  existing 
for 
incentives 
comprehensive  primary  healthcare,  such  as 
limiting 
reimbursement  of  services  and 
prescriptions  by  general  practitioners  and 
internists not enrolled in the system. 

create 

basis 

the 

to 

Public  spending  on  healthcare  is  below 
the EU average and major expenditure is 
on  pharmaceuticals.  Public  healthcare 
spending reached 5.9% of GDP in 2020 which 
compares with an EU average of 8.9% of GDP. 
However,  out-of-pocket  payments  by  patients 
in Greece (as a share of  GDP) are the second 
highest  in  the  EU.  Spending  on  curative  care 
and  pharmaceuticals  represents  the  biggest 
share of public healthcare spending (59% and 

(11)  Greece’s wage bill amounted to EUR 22.73 billion in 
2022 (compared with EUR 22.52 billion in 2021), 
accounting for 19.9% of public expenditure. 

A sound financial sector is crucial 
for promoting economic growth 

The  stock  of  non-performing  loans  fell 
markedly,  making  use  of  securitisations. 
ratio (13)  has 
The  non-performing 

loan 

(12)  So far, about 3 400 general practitioners and internists 
have registered as personal doctors which covers only 
72% of the population with an unequal geographical 
coverage across the country. 

(13)  Non-performing loans (NPLs) as a share of total gross 
loans as reported by the European Central Bank. This 

12 

 
                                                 
                                                 
 
continued to fall, reaching 6.4% of total loans 
in September 2022, down from 8.6% in 2021, 
and  26.5%  in  2020.  Nevertheless,  it  remains 
the  highest  in  the  EU,  where  the  average  is 
1.8%.  State-supported  securitisations  under 
the  Hercules  Scheme  (expired  in  October 
2022)  were  a  key  driver  behind  the  sharp 
reduction in the stock of non-performing loans. 

to 

to 

lower 

loans  closer 

The effective workout of both legacy and 
new  non-performing  loans  by  banks  and 
credit  servicers  remains  key  for  the 
resilience  of  the  financial  sector.  Going 
forward,  bank in-house management  of  loans 
is  expected  to  be  the  main  driver  in  reducing 
non-performing 
the  EU 
average. At the same time, a large amount of 
legacy  non-performing  private  debt,  which 
exited  bank  balance  sheets,  remains  in  the 
economy  and  is  held  by  credit  servicers  (see 
Graph  3.1),  who  are expected  also  to proceed 
with its resolution and restructuring. A number 
of  these  securitised  portfolios  have  been 
underperforming their initial objectives, mainly 
due 
recoveries  from  collateral 
liquidations.  This  is  partly  the  result  of  the 
suspension  of  enforcement  proceedings  and 
delays  in  court  procedures  during  the  COVID-
19 pandemic, but it also reflects the still high 
ratio  of  unsuccessful  auctions,  despite  the 
increase in conducted auctions in 2022. Credit 
to 
servicers  are  taking 
gradually  meet  their  initial  objectives.  These 
include sales of non-performing loan portfolios 
on  the  secondary  market,  enabling  credit 
servicers  to  frontload  cash  flows,  albeit  at  a 
potential  cost  to  future  performance.  To 
effectively  improve  performance  and  improve 
the  sale  value  of  the  underlying  portfolios, 
such  transactions  would  need  for  example  to 
increasingly involve loans that have undergone 
restructuring  and  have  become  performing 
again.  

targeted  actions 

An  efficient  debt  enforcement  process 
remains  crucial  for  a  smooth  functioning 
of  the  non-performing  loan  secondary 
market.  This  may  require  further  improving 

debt  enforcement,  including  through  a  more 
streamlined and effective post-auction process 
and  a  speed-up  of  cadastre  registration 
procedures.  The  Supreme  Court  plenary 
decision  published  on  16 February  2023 
acknowledged  the  legal  standing  of  credit 
servicers  to  initiate  enforcement  proceedings 
also  under  the  2003  securitization  law (14). 
This decision creates a precedent resolving the 
previous legal uncertainty, averting a standstill 
in  debt  enforcement  and  facilitating  amicable 
restructuring solutions with debtors. Additional 
tools, such as the new insolvency code and its 
out-of-court  workout  framework,  are  already 
bringing in first results. These mechanisms are 
expected  to  help  debtors,  banks  and  credit 
in  tackling  the  accumulation  of 
servicers 
private 
effective 
debt 
restructuring solutions. 

through  more 

Improving the business 
environment is crucial to boost 
productivity and competitiveness 

in 

the  deficit 

Fostering  external  sector  sustainability 
through  competitiveness  gains  remains 
key.  The  energy  crisis  and  the  increased 
import  bill  have  led  to  a  widening  external 
trade  deficit,  notably  in  goods,  and  have 
widened 
the  net  foreign 
investment position. At the same time, efforts 
to  attract  foreign  direct  investment  have 
started to bear fruit but the stock remains low. 
In  2022,  inflows  stood  below  the  EU  average 
at  3.2%  of  GDP,  albeit  sectors  with 
productivity  growth  potential, 
such  as 
manufacturing  and  energy,  have  seen  higher 
rates.  Cost 
been 
improving  over  the  adjustment  programme 
increased  and 
years,  and  exports  have 
slightly 
costs 
labour 
diversified.  Unit 
rebounded  in  2020  and  2021,  but  dropped 
below 2015 levels in 2022. At the same time, 
is 
Greece’s 
low 
concentrated 

advantage 
products  with 

competitiveness  has 

comparative 

in 

figure is different to the one reported under post-
programme surveillance, which follows NPLs as a share 
of total gross customer loans on a solo basis, as 
reported by the Bank of Greece. 

(14)  This is in addition to the proceeding being initiated 

under the 2015 law on the licensing and regulation of 
non-bank service providers and loan transfers.  

13 

 
                                                                        
                                                 
technological  sophistication,  although  it  has 
been  exporting  increasing  volumes  of  high-
tech  goods  more  recently.  Efforts  to  enhance 
competitiveness  through  productivity  gains  as 
opposed to cost  reduction remain essential  to 
ensure external sector sustainability. 

reformed 

services  and 

in  2021,  and 

Despite  a  series  of  adopted  reforms  and 
progress in certain respects, the business 
environment  is  still  weighing  down  on 
competitiveness. In 2020, Greece introduced 
a  new  insolvency  framework  which  entered 
the 
into  force 
requirements  for  the  licensing  of  economic 
activities. Greece has also adopted a new law 
and  a  national  strategy  to  improve  public 
procurement.  A  legislative  reform  has  helped 
liberalise  business 
other 
regulated  professions  and  activities.  However, 
limited access to finance remains a key barrier 
to private investment and restrictions to enter 
certain key professional services, such as legal 
services,  appear  to  be  higher  than  the  EU 
competitiveness. 
average,  weighing 
According 
latest  Single  Market 
the 
Scoreboard (15),  Greece  performs  relatively 
poorly  in  terms  of  correct  transposition  of  EU 
directives  into  national  law,  the  impact  of 
regulation on investment, and the time needed 
to 
(3.5  years, 
insolvency  cases 
compared  with  an  average  of  2  years  in  the 
EU). More systematic provision of consolidated 
legislation  would  also  enable  businesses  to 
comply  with  regulatory  requirements  (see 
Annex 12). 

resolve 

on 

to 

The  cadastral  mapping  is  expected  to  be 
completed by the end of this year. So far, 
72%  of  property  rights  in  the  country  have 
been mapped. In total, 99.2% of the country’s 
mapping is either completed or contracted and 
under  implementation,  with  the  full  mapping 
planned  to  be  completed  by  end-2023.  The 
392  old  mortgage  offices  are  progressively 
being  closed  and  replaced  by  17  cadastral 
offices  and  75  branches  with  digitalised 
procedures. At this stage, 12 cadastral offices 
and  49  branches  are  in  operation.  However, 
the  registration  of  property  rights  in  the 
mortgage  and  cadastral  offices  is  showing 

extensive  delays  in  some  cases,  which  affect 
negatively  property transactions  and  auctions. 
Meanwhile,  the  forest  mapping  for  the  entire 
country has been completed. 

of 

the 

incomplete 

environmental 

certification  of  private 

Slow  environmental  licensing  and  the 
lack  of  spatial  plans  impede  investment. 
Despite  reforms  to  expedite  the  issuance  and 
permits, 
renewal 
administrative  deadlines  are  often  not 
respected  in  practice,  partly  due  to  capacity 
constraints.  Furthermore,  the  relevant  registry 
sector 
for 
environmental  assessors (16) 
is  not  yet 
activated.  The  still 
legislative 
framework  for  the  protection  of  Natura  2000 
areas (17)  poses  significant  risks  to  Greece’s 
rich  natural  ecosystem,  and  it  also  stifles 
economic activity. Specifically, the issuance of 
implementing  acts (18)  for  the  protection  and 
management  of  environmentally  sensitive 
areas  would  provide  legal  certainty  for  the 
types  of  permissible  investments  in  30%  of 
Greece’s  territory,  but  this  is  now  missing.  In 
addition,  it  is  important  to  complete  the 
special  spatial  frameworks  for  renewables, 
industry,  tourism  and  aquaculture,  as  these 
acts  would  ensure  effective  environmental 
permitting. 

Getting more people to work 
remains key 

job 

While  the  labour  market  has  so  far 
weathered  the  health  and  energy  crisis 
well  overall,  it  remains  marked  by  high 
creation  has 
unemployment.  Net 
continued since the end of 2019 bringing total 
employment  to  4.1 million  people  (and  the 
employment  rate  to  66.8%)  by  the  end  of 
2022.  The  unemployment  rate  (15-74  age 
cohort)  has  continued  to  fall  and  reached  a 
twelve-year  low  of  11.4%  by  February  2023, 
5.6  percentage  points  below  its  pre-pandemic 

(16)  As per Law 4014/2011, Presidential Decree 50/2021 

and Joint Ministerial Decision 17185/2022. 

(17)  As per Law 4685/2020. 

(15)  https://single-market-scoreboard.ec.europa.eu/home_en 

(18)  Presidential Decrees or Joint Ministerial Decisions. 

14 

 
                                                 
                                                 
level.  This  is  partly  thanks  to  the  introduction 
of  the  short-time  work  scheme  supported  by 
SURE   (19)  that  helped  prevent  large  lay-offs. 
Nevertheless, the unemployment rate remains 
more  than  6 percentage  points  above  the  EU 
it  disproportionally  affects 
average  and 
women,  young  people  and 
third-country 
nationals who also face higher poverty risks. In 
2021, the share of people at risk of poverty or 
social exclusion (AROPE) (based on incomes of 
2020)  stood  at  28.3%,  well  above  the  EU 
average  of  21.7%,  and  even  higher  for 
children (32%). 

services 

it  has  with 

Providing  effective  activation  support  to 
jobseekers  with  a  particular  focus  on 
vulnerable  groups  remains  a  challenge. 
Through  its  118  local  offices,  the  public 
employment  service  has  to  serve  around  1 
million  jobseekers,  of  which  two  thirds  are 
women  and  12%  are  third-country  nationals. 
During  the  last  2 years,  the  service  went 
through  a  major  organisational  reform;  this 
included  shifting  administrative  staff  towards 
functions,  establishing  group 
counselling 
counselling 
intensifying 
and 
cooperation  with  employers.  The  service 
further  revised  the  framework  of  mutual 
obligations 
jobseekers,  while 
putting  in  place  financial  incentives  for  the 
latter to take up work. Nonetheless, the service 
continues  to  face  human  resource  constraints 
(with  each  employment  counsellor  serving 
more  than  2 000 
jobseekers)  and  heavy 
administrative procedures, depite the fact that 
many of them have been digitalised in recent 
years. Between 2021 and 2027, the European 
Social  Fund  Plus  and  the  Recovery  and 
Resilience 
the 
recruitment  of  540  employment  counsellors 
on  a  temporary  basis,  increase  the  supply  of 
activation  and 
for 
jobseekers,  and  expand  the  use  of  IT  tools. 
Beyond  these  measures,  more  structured 
actions, 
the 
individualised  assessment  of  jobseeker  skills 
needs, and further streamlining administrative 
and staff management procedures, could help 

training  programmes 

Facility  will 

intensifying 

including 

facilitate 

the  service  achieve  even  better  outcomes  in 
job matching. 

Reducing fossil fuel dependency 
requires accelerating the green 
transition 

Greece  remains  highly  dependent  on 
fossil  fuels  and  further  efforts  are 
required to step up the energy transition. 
Fossil  fuels  still  account  for  a  major  part  of 
Greece’s  energy  mix,  with  oil  covering  52% 
and gas reaching 24% in 2021 (see figures in 
Annex 7). There is scope to further decarbonise 
the  transport  sector,  in  particular  through 
further  investments  in  sustainable  mobility. 
While  Greece  has  made  some  progress  in 
encouraging the uptake of electric vehicles, the 
availability  of  publicly  accessible  charging 
points  is  one  of  the  lowest  in  the  EU (20).  The 
Initiative  provides  a  unique 
REPowerEU 
opportunity  to  scale  up  and  support  energy-
related measures to further enhance Greece’s 
decarbonisation  objectives.  Reducing 
the 
country’s  overall  reliance  on  fossil  fuels  is  an 
essential part of ensuring security of supply. 

investments 

Further 
in  storage  and 
network  capacity  will  be  needed  to 
safeguard  the  grid’s  balance,  as  more 
renewables  will  be  integrated.  With  new 
renewable energy source (RES) installations in 
the  pipeline,  which  would  double  the  current 
RES capacity, there remains a need to continue 
expanding  the  grid,  including  interconnections 
(e.g.  Euro-Asia).  Increasing  Greece’s  storage 
capacity is a priority, including the introduction 
of  common  remuneration  schemes  for  stand-
alone  storage  facilities  and  behind-the-meter 
storage  systems,  which  could  contribute  to 
addressing  challenges 
linked  to  the  high 
volatility  of  renewable  energy  sources.  Recent 
initiatives  to  expand  their  use  include  self-
photovoltaic 
consumption 
system  on  rooftops  with  a  battery),  while  a 

schemes 

(e.g. 

(19)  Council Regulation (EU) 2020/672 of 19 May 2020 on 
the establishment of a European instrument for 
temporary support to mitigate unemployment risks in 
an emergency (SURE) following the COVID-19 outbreak. 

(20)  https://theicct.org/wp-content/uploads/2023/01/ICCT-

European-Vehicle-Market-Statistics-
Pocketbook_2022_23.pdf. 

15 

 
                                                 
                                                 
recently  adopted  legal  framework  aims  to 
promote  energy  communities;  however,  steps 
to  bring  further  clarity  and  incentives  are 
needed.  In  2022,  Greece  adopted  a  legal 
framework  for  the  development  of  offshore 
wind  farms  with  key  elements,  such  as  the 
allocation  of  specific  slots,  expected  to  be  in 
place  soon.  While  the  potential  for  offshore 
wind  is  significant  for  Greece,  the  lead  times 
are typically long. This means that the further 
development  of  onshore  wind  capacity  to 
complement 
remain 
important.  As  concerns  speeding  up  the 
installation  of  new  renewable  energy  sources, 
it  will  be  important  to  fully  enforce  the  new 
legal  framework  adopted  in  2022,  which 
for 
provides 
renewable  energy  sources  and  storage 
projects can be in place within 14 months. 

power  will 

required 

licences 

solar 

that 

the 

Continued  efforts  are  needed  for  Greece 
to  achieve  its  2030  energy  efficiency 
targets.  Greece 
is  making  progress,  for 
example,  through  the  successful  renovation 
programme  ‘Exoikonomo’  (Annex  6),  towards 
its target of keeping annual primary and final 
energy  consumption  below  20.6  Mtoe  and 
16.5 Mtoe, respectively, by 2030, as set out in 
its national energy and climate plan. However, 
considering  Greece’s  old  building  stock,  more 
energy savings could be unlocked with further 
renovation  efforts.  The  introduction  of  new 
financial  instruments  (e.g.  energy  efficiency 
auctions)  and  the  development  of  the  energy 
services market could expand the coverage of 
existing  support  programmes  and  leave  more 
space  for  public  funds  to  target  energy-poor 
households  and  to  extend  the  scope  to  cover 
public  and  commercial  buildings.  Greece’s 
share  of  smart  meters,  which  enable 
consumers to actively participate in the market 
and  support  demand-side  response,  is  well 
below  the  EU  average  (3%  compared  with 
In  addition,  specific 
54%,  2021  figures). 
sectors,  such  as  the  transport  and  water 
sectors,  have  significant  scope  for  energy 
savings. 

There  is  room  to  increase  the  use  of 
renewable  energies 
to 
industry 
towards  net-zero. 
accelerate  efforts 
Compared  with  most  other  Member  States, 
large  degree, 
Greece’s 

is,  to  a 

industry 

in 

electrified. This makes it well-placed to expand 
its  renewable  energy  consumption,  including 
use  of  renewable  hydrogen,  if  there  is  secure 
supply at affordable prices. Targeted financial 
regulatory 
support,  complemented  by  a 
framework  that  promotes  power  purchase 
agreements,  notably  for  renewable  energy 
production,  could  speed  up  the  industry’s 
efforts to decarbonise. Greece’s plans to put in 
place  a  legal  framework  to  promote  the 
development  of  a  market  for  renewable 
hydrogen  and  biomethane  production  could 
also contribute to this goal. 

on 

the 

availability 

Accelerating  the  green  energy  transition 
depends 
of 
appropriate  skills,  including  to  promote 
innovation. During the period 2015-2021, the 
job  vacancy  rate  increased  in  construction, 
(from  0.2%  in  2015  to  4.3%  in  2021,  above 
the  EU  average  of  3.6%)  pointing  to  possible 
labour  shortages in  a  sector  that  is  highly 
relevant  for  the  green  transition (21).  In  2022, 
in  three 
labour  shortages  were  reported 
occupations that required skills and knowledge 
relevant  for  the  green  transition,  including 
plumbers, pipe fitters, and building and related 
electricians (22). Also in 2022, labour shortages 
were 
reported  as  a  factor  constraining 
production  in  a  large  proportion  of  firms  in 
construction  and  manufacturing  (43.9%  and 
8.8% respectively) (23). Upskilling and reskilling 
for the green transition and net-zero industry, 
including  for  people  most  affected,  and 
promoting 
labour  markets  are 
essential  to  ensure  a  fair  transition  to  a  net-
zero economy (see Annex 8). Furthermore, the 
acceleration in innovation and R&D  remains a 
pivotal  factor  in  fostering  the  development 
and deployment of breakthrough clean energy 
technologies. 

inclusive 

(21)  Eurostat (JVS_A_RATE_R2). 

(22)  Data on shortages is based on European Labour 

Authority (2023), EURES Report on labour shortages 
and surpluses 2022. Skills and knowledge requirements 
are based on the ESCO (European Skills Competences 
and Occupations) taxonomy of skills for the green 
transition (for occupations at ISCO 4-digit level of which 
there are 436 in total). Examples are identified based 
on their ESCO ‘greenness’ score and relevant sectors. 

(23)  European Business and Consumer Survey. 

16 

 
                                                 
is  facing  more  frequent  and 
Greece 
intense  natural  hazards  than  other  EU 
countries.  The  country  appears 
to  be 
particularly  vulnerable  to  floods.  Between 
1980  and  2020,  only  around  15% (24)  of 
disaster  losses  were  insured  in  Greece.  The 
current  protection  gap  for  wildfires  and 
insurance 
earthquakes  suggests 
coverage (25) 
to 
remains 
projected risk, and this could result in losses to 
be  covered  by  the  public  sector,  potentially 
posing a risk to public finances. 

that 
the 
low  compared 

(24)  Disaster Risk Financing: Limiting the Fiscal Cost of 

Climate-Related Disasters (Radu, 2022). 

(25)  The climate protection gap refers to the share of non-
insured economic losses caused by climate-related 
disasters. This indicator is based on the modelling of the 
current risk from floods, wildfires, and windstorms as 
well as earthquakes, and the estimation of the current 
insurance penetration. The indicator does not provide 
information on the split private/public cost of climate 
related disasters. A score of 0 means no protection gap, 
while a score of 4 corresponds to a very high gap. 
EIOPA considers that a score below 3 is not a relevant 
protection gap but that countries with a score of 2.5 
need to be monitored (EIOPA, 2022). 

17 

 
 
                                                 
KEY FINDINGS 

Greece’s  recovery  and  resilience  plan 
includes measures to address a series of 
structural 
the 
following: 

challenges 

through 

  Upgrading 

the 

energy 

efficiency 
performance of public and private buildings 
with the aim to address energy poverty and 
achieve energy savings. 

  Supporting the phasing out of lignite-based 
power  generation,  the  use  of  renewable 
energy  sources,  and  the  expansion  of 
energy storage capacities. 

  Promoting 

sustainable 

transport,  and 
sustainable waste and water management, 
through 
and 
investments. 

comprehensive 

reforms 

  Facilitating  the  digital  transformation  of 
public  administration  and  private  sector 
companies,  including  SMEs,  and  expanding 
connectivity infrastructure and digital skills. 

  Upgrading 

public 
administration and justice systems. 

administration, 

tax 

  Fostering  labour  market  activation  and 
upskilling  and 
social 
integration  of  vulnerable  groups  by  means 
of employment and training opportunities. 

supporting 

the 

  Modernising  the  entire  education  system 
the  supply  of  early 

and  expanding 
childhood education and care. 

  Upgrading the national healthcare system. 

  Providing 

favourable 

finance  and 

tax 
incentives  to  private  sector  companies  to 
undertake  green  and  digital  investments 
and help them grow.   

Greece should maintain the momentum in the 
steady  implementation  of  the  recovery  and 

18 

finalise 

resilience  plan,  and  swiftly 
the 
REPowerEU  chapter  with  a  view  to  rapidly 
starting 
Continued 
sufficient  administrative  capacity  should  be 
ensured in view of the size of the plan. 

implementation. 

its 

Beyond  the  reforms  and  investments  in 
the  RRP,  Greece  would  benefit  from  the 
following. 

  Enlarging  the  tax  base  and  strengthening 
tax  compliance,  including  by  introducing  a 
comprehensive  advance  tax  ruling  system, 
considering  the  use  of  information  from 
electronic payments  to  review the  taxation 
of  the  self-employed,  and  enhancing  the 
tax  administration 
autonomy  of 
authority. 

the 

  Safeguarding  the  efficiency  of  the  public 
administration  by  ensuring  it  can  attract 
the right skills, while maintaining its human 
resource costs at pre-pandemic levels. 

  Enhancing the efficiency of healthcare and 
long-term  care  spending, 
including  by 
completing  the  roll-out  of  the  primary 
healthcare  system  with  sufficient  staffing 
to  ensure  full  population  coverage,  and  by 
developing  a  comprehensive  strategy  for 
long-term care. 

  Accelerating 

of 

the 

reduction 

including  by 
of 

non-
performing  loans  held  by  banks  and  credit 
services, 
the 
effectiveness 
enforcement, 
improving  the  functioning  of  the  non-
performing  loan  secondary  market  and  by 
implementing  all  the  available  tools  under 
the new insolvency code. 

increasing 

debt 

  Further 

the 

improving 

business 
environment  by  completing  the  cadastre 
environmental 
project, 
permitting  procedures,  completing  special 
spatial  frameworks  in  key  sectors,  and 

expediting 

 
 
ensuring 
environmental legislation. 

the  effective  application  of 

  Ensuring effective labour market activation 
support  with  a  particular  focus  on  young 
people  and  women,  and  further  enhancing 
social  policies,  so  as  to  contribute  to  the 
2030  EU  headline  targets  on  employment 
and poverty reduction. 

the  decarbonisation  of 

  Reducing dependence on fossil fuels by: a) 
reducing overall fossil fuel use and further 
expanding  the  deployment  of  renewable 
energy, including development of hydrogen 
infrastructure  and  offshore  wind,  thereby 
supporting 
the 
Greek  economy  and  reaching  national 
targets;  b)  ensuring  sufficient  capacity  of 
electricity  networks  and  storage  and 
continuing 
to  diversify  energy  supply 
routes;  and  c)  strengthening  the  energy 
services market framework and stepping up 
delivery  on  measures  to  improve  energy 
efficiency,  including  better  targeting  of 
vulnerable  households  and  specific  sectors 
(e.g. water) and speeding up the roll-out of 
smart meters. 

  Promoting  skills  needed  for  the  green 

transition. 

19 

 
ANNEXES 

 
 
 
 
LIST OF ANNEXES 

Cross-cutting indicators 

A1.  Sustainable Development Goals 

A2.  Progress in the implementation of country-specific recommendations 

A3.  Recovery and resilience plan - overview 

A4.  Other EU instruments for recovery and growth 

A5.  Resilience 

Environmental sustainability 

A6.  European Green Deal 

A7.  Energy security and affordability 

A8.  Fair transition to climate neutrality 

Productivity 

A9.  Resource productivity, efficiency and circularity 

A10.  Digital transformation 

A11.  Innovation 

A12.  Industry and single market 

A13.  Public administration 

Fairness 

A14.  Employment, skills and social policy challenges in light of the European Pillar of Social Rights 

A15.  Education and training 

A16.  Health and health systems 

A17.  Economic and social performance at regional level 

Macroeconomic stability 

A18.  Key financial sector developments 

A19.  Taxation 

A20.  Table with economic and financial indicators 

A21.  Debt sustainability analysis 

A22.  Macroeconomic imbalance procedure assessment matrix 

23 

26 

26 

28 

31 

34 

37 

38 

38 

43 

48 

51 

51 

53 

55 

57 

60 

63 

63 

65 

67 

69 

71 

71 

74 

76 

77 

80 

 
 
 
LIST OF TABLES 

A2.1. 
Summary table on 2019-2022 CSRs 
A3.1. 
Key elements of the Greek RRP('s) 
A5.1. 
Resilience indices summarising the situation across RDB dimensions and areas 
A6.1. 
Indicators tracking progress on the European Green Deal from a macroeconomic perspective 
A7.1. 
Selected indicators on energy mix 
A8.1. 
Key indicators for a fair transition in Greece 
A9.1. 
Overall and systemic indicators on circularity 
A10.1.  Key Digital Decade targets monitored by DESI indicators 
A11.1.  Key innovation indicators 
A12.1. 
Industry and the Single Market 
A13.1.  Public administration indicators 
A14.1.  Social Scoreboard for Greece 
A14.2.  Situation of Greece on 2030 employment, skills and poverty reduction targets 
A15.1.  EU-level targets and other contextual indicators under the European Education Area strategic framework 
A16.1.  Key health indicators 
A17.1.  Selected indicators at regional level in Greece 
A18.1.  Financial soundness indicators 
A19.1.  Taxation indicators 
A20.1.  Key economic and financial indicators 
A21.1.  Debt sustainability analysis - Greece 
A21.2.  Heat map of fiscal sustainability risks - Greece 
A22.1.  Assessment of macroeconomic imbalances matrix 

LIST OF GRAPHS 

A1.1. 
Progress towards the SDGs in Greece in the last 5 years 
A2.1. 
Greece’s progress on the 2019-2022 CSRs (2023 European Semester) 
A3.1. 
Disbursements per pillar 
A3.2. 
Total grants disbursed under the RRF 
A3.3. 
Total loans disbursed under the RRF 
A3.4. 
Fulfilment status of milestones and targets 
A4.1. 
Cohesion policy funds (2021-2027) in Greece: budget by fund 
A4.2. 
Synergies between cohesion policy funds and the RRF with its six pillars in Greece 
A4.3. 
Cohesion policy funds contribution to the SDGs in 2014-2020 and 2021-2027 in Greece 
A6.1. 
Thematic – greenhouse gas emissions from the effort sharing sectors in Mt CO2eq, 2005-2021 
A6.2. 
Energy mix (top) and electricity mix (bottom), 2021 
A6.3. 
Thematic – environmental investment needs and current investment, p.a. 2014-2020 
A7.1. 
Share of gas consumption per sector, 2021 
A7.2. 
Greece´s retail energy prices for industry (top) and households (bottom) 
A8.1. 
Fair transition challenges in Greece 
A8.2. 
Distributional impacts of energy prices due to rising energy expenditure (2021-2023) 
A9.1. 
Trend in material use 
A9.2. 
Treatment of municipal waste 
A11.1. 
Innovation performance 2015-2022 
A12.1.  Labour productivity, whole economy 
A12.2.  Labour productivity by sectors 
A12.3.  Business and productivity drivers 
A13.1.  Greece. Median time for the adoption of laws, and share of laws adopted in 30 days or less 
A13.2.  Open government data maturity indicator: 2022 scores (% of the total maximum score) (lhs); country ranking, overall score 

(rhs) 

A15.1.  Tertiary educational attainment rate (25-34), 2022 
A16.1.  Life expectancy at birth, years 
A16.2.  Projected increase in public expenditure on healthcare over 2019-2070 
A17.1.  GDP per head (2010) and GDP growth (2011-2020) in Greece 
A18.1.  Evolution of credit activity 
A19.1.  Tax revenues from different tax types as % of total taxation 

24 

28 
31 
37 
38 
43 
49 
52 
54 
56 
57 
62 
63 
64 
66 
68 
70 
71 
74 
76 
79 
79 
80 

27 
30 
31 
32 
33 
33 
34 
34 
35 
38 
39 
40 
44 
44 
48 
50 
51 
51 
55 
57 
57 
58 
60 

61 
66 
67 
67 
69 
71 
75 

 
 
A19.2.  Tax wedge for single and second earners as a % of total labour costs, 2022 

LIST OF MAPS 

A17.1.  Regional Competitiveness Index in Greek regions (2022) 

75 

69 

25 

 
 
 
 
 
CROSS-CUTTING INDICATORS 
ANNEX 1: SUSTAINABLE DEVELOPMENT GOALS 

of 

four 

dimensions 

This Annex assesses Greece’s progress on the 
Sustainable Development Goals (SDGs) along 
the 
competitive 
sustainability.  The  17  SDGs  and  their  related 
indicators  provide  a  policy  framework  under  the 
UN’s  2030  Agenda  for  Sustainable  Development. 
The  aim  is  to  end  all  forms  of  poverty,  fight 
inequalities  and  tackle  climate  change  and  the 
environmental crisis, while ensuring that no one is 
left  behind.  The  EU  and  its  Member  States  are 
committed  to  this  historic  global  framework 
agreement  and  to  playing  an  active  role  in 
maximising  progress  on  the  SDGs.  The  graph 
below  is  based  on  the  EU  SDG  indicator  set 
developed  to monitor progress  on  the  SDGs  in  an 
EU context. 

improving  on  SDG 

is 
to  environmental 

indicators 
Greece 
sustainability 
related 
(SDGs  2,  6,  7,  9,  11,  12,  13,  15),  although  it 
needs to catch up with the EU average on all 
of  them.  The  country  has  taken  important  steps 

to  meet  goals  related  to  SDGs  12  and  13 
(Responsible  consumption  and  production  and 
Climate  action).  By  2021,  the  share  of  renewable 
energy  in  gross  final  energy  consumption  had 
reached  the  EU  average  (21.9%),  albeit  starting 
from  a  lower  level,  while  energy  productivity  had 
increased  by  11%.  Over  the  last  5  years,  Greece 
has  also  fared  particularly  well  when  it  comes  to 
net greenhouse gas emissions. These fell by 19% 
between  2016  and  2021,  putting  Greece  in  a 
better  position  than  the  EU  average.  Meanwhile, 
access  to  affordable  and  clean  energy  (SDG  7) 
remains  challenging,  with  17.5%  of  Greece’s 
population unable to keep their homes adequately 
warm compared to just 6.9% in the EU. On SDG 14 
(Life  below  water),  while  Greece’s  performance  is 
close  to  the  EU  average,  it  is  moving  away  from 
the  goal,  in  particular  due  to  a  lower  share  of 
coastal  water  bathing  sites  with  excellent  water 
quality  and  a  higher  share  of  marine  waters 
affected  by  eutrophication.  In  2021-26,  the  EU 
Recovery  and  Resilience  Facility  will  support  a 
series  of  measures  to  promote  environmental 

Graph A1.1: Progress towards the SDGs in Greece in the last 5 years 

For detailed datasets on the various SDGs, see the annual Eurostat report ‘Sustainable development in the European Union’; for 
details on extensive country-specific data on the short-term progress of Member States: Key findings – Sustainable development 
indicators – Eurostat (europa.eu). The status of each SDG in a country is the aggregation of all indicators for the specific goal 
compared to the EU average. A high status does not mean that a country is close to reaching a specific SDG, but signals that it is 
doing better than the EU on average. The progress score is an absolute measure based on the indicator trends over the past 5 
years. The calculation does not take into account any target values as most EU policy targets are only valid for the aggregate EU 
level. Depending on data availability for each goal, not all 17 SDGs are shown for each country. 
Source: Eurostat, latest update of early April 2023, except for the EU Labour Force Survey (LFS) indicators released on 27 April 
2023. Data mainly refer to 2016-2021 or 2017-2022. 

26 

 
 
 
 
 
 
 
93%  in  2021),  adult  learning  participation  (3.5% 
vs  10.8%  in  2021),  basic  digital  skills  (52.5%  vs 
53.9% in 2021) and R&D spending (1.45% of GDP 
vs  2.26%  in  2021).  Decent  work  and  economic 
growth indicators (SDG 8) continue to improve, but 
remain less positive than in other Member States, 
as reflected in the low employment rate (62.6% vs 
73.1%), 
long-term 
the  still  high  share  of 
unemployed  (9.2%  vs  2.8%)  and  young  people 
who  are  not  in  employment,  education  or  training 
(17.2%  vs  13.1%).  With  support  from  the  EU 
Recovery and Resilience Facility, Greece will upskill 
a  large  part  of  its  working  population,  expand 
childcare  facilities  and  upgrade  its  university 
education and research system.     

While  Greece  is  improving  on  SDG  indicators 
related  to  macroeconomic  stability  (SDGs  8, 
16,  17),  it  needs  to  catch  up  with  the  EU 
average on all of them. Greece’s GDP per capita 
was EUR 17 610 in 2021, corresponding to around 
63%  of  the  EU  average  (EUR 27 880).  Despite 
increasing,  investment  continues  to  be  relatively 
low  (SDG  8;  13.3%  of  GDP  in  2021  vs  22.4%  in 
the  EU).  Some  11.3%  of  Greece’s  working 
population  was  at  risk  of  poverty 
in  2021 
compared to 8.9% in the EU, while only 19.8% of 
households have a high-speed internet connection 
according to the latest data, against 70.2% in the 
EU.  A  higher  share  of  the  population  (18.1%  vs 
11.4% 
in  the  EU)  report  crime,  violence  or 
vandalism  in  their  area  (SDG  16).  The  Recovery 
and Resilience Facility will help bridge a large part 
of  Greece’s  investment  gap  and  support  broad-
based  structural  reforms  that  are  expected  to 
improve the functioning of the economy at large.   

As the SDGs form an overarching framework, any 
links  to  relevant  SDGs  are  either  explained  or 
depicted with icons in the other Annexes. 

sustainability and the fight against energy poverty, 
including through investments in renewable energy 
sources,  sustainable  means  of  transport  and 
energy efficiency infrastructures.       

While  Greece  is  improving  on  SDG  indicators 
related to fairness (SDGs 1, 2, 3, 4, 5, 7, 10), 
it needs to catch up with the EU average on 
almost all of them. While the labour market and 
social situation has improved in the last 5 years, it 
remains less favourable overall than in the EU as 
a whole. Around 13.9% of people were materially 
and  socially  deprived  in  2021  compared  to  only 
6.3% 
in  the  EU,  while  28.8%  of  Greece’s 
population  was  overburdened  with  housing  costs 
compared to only 8.3% in the EU (SDG 1). Greece 
continues  to  improve  on  certain  equality  aspects 
(SDGs  5  and  10),  but  these  remain  less  positive 
overall  than  in  the  EU  as  a  whole.  In  2021,  the 
employment  rate  of  women  was  almost  20 
lower  than  that  of  men 
percentage  points 
(compared  to  only  10.8  percentage  points  in  the 
EU). Women held only 24% of senior management 
positions  and  19%  of  political  positions  (against 
32.2% and 32.5% respectively in the EU). People in 
rural  areas  in  Greece  face  a  disproportionally 
higher  risk  of  poverty  or  social  inclusion  than 
people  in  rural  areas  of  the  rest  of  the  EU. 
Concerning  health  aspects  (SDG  3),  while  healthy 
life expectancy (65.9 years) is slightly higher than 
in the EU (64 years) and more people report being 
healthy  (78.3%  vs  69%),  a  higher  and  increasing 
share  of  people  smoke  (42%  in  2021  vs  25%  in 
the  EU).  Despite  improving  over  time,  access  to 
healthcare  remains  challenging,  with  6.4%  of  the 
population reporting unmet medical needs in 2021 
due  to  costs,  distance  or  waiting  times,  against 
only  2.0%  in  the  EU.  Up  until  2026,  the  EU 
Recovery and Resilience Facility will support a wide 
range  of  measures  to  promote  employment, 
including 
long-term 
unemployed  and  people  with  disabilities,  and 
upgrade the national healthcare system.    

among  women, 

the 

is 

Greece 
indicators 
improving  on  SDG 
related  to  productivity  (SDGs  4,  8,  9), 
although  it  needs  to  catch  up  with  the  EU 
average on all of them. Greece’s education and 
innovation  performance  (SDGs  4  and  9)  is  mixed, 
with better-than-EU average results in early school 
leaving  (3.2%  vs  9.7%  in  the  EU  in  2021)  and 
tertiary  educational  attainment  (44.2%  vs  41.2% 
in 2021), but with significant challenges in reading 
underachievement  (30.5%  vs  22.5%  in  2018), 
early  childhood  education  attendance  (71.3%  vs 

27 

 
 
 
 
ANNEX 2: PROGRESS IN THE IMPLEMENTATION OF COUNTRY-SPECIFIC 
RECOMMENDATIONS 

Table A2.1: Summary table on 2019-2022 CSRs 

(Continued on the next page) 

28 

GreeceAssessment in May 2023*RRP coverage of CSRs until 2026**Relevant SDGs2019 CSR 1Substantial progressAchieve a sustainable economic recovery and tackle the excessive macroeconomic imbalances by continuing and completing reforms in line with the post-programme commitments given at the Eurogroup of 22 June 2018.Substantial progressRelevant RRP measures being implemented as of 2021.SDG 1, 2, 8, 9, 10, 162019 CSR 2Some progressFocus investment-related economic policy on sustainable transport and logistics,Limited progressRelevant RRP measures being implemented as of 2021.SDG 10, 11environmental protection, energy efficiency, renewable energy and interconnection projects,Some progressRelevant RRP measures being implemented as of 2021.SDG 6, 7, 9, 10, 11, 12, 13digital technologies, Some progressRelevant RRP measures being implemented as of 2021.SDG 9, 10, 11R&D, Some progressRelevant RRP measures being planned as of 2022.SDG 9, 10, 11education, Some progressRelevant RRP measures being planned as of 2023.SDG 4, 10, 11skills, Some progressRelevant RRP measures being planned as of 2022.SDG 4, 10, 11employability, Some progressRelevant RRP measures being planned as of 2022.SDG 8, 10, 11health, Limited progressRelevant RRP measures being implemented as of 2021.SDG 3, 10, 11and the renewal of urban areas, taking into account regional disparities and the need to ensure social inclusion.Limited progressRelevant RRP measures being planned as of 2022.SDG 1, 2, 10, 112020 CSR 1Limited progressInlinewiththegeneralescapeclause,takeallnecessarymeasurestoeffectivelyaddressthepandemic,sustaintheeconomyandsupporttheensuingrecovery.Wheneconomicconditionsallow,pursuefiscalpoliciesaimedatachievingprudentmedium-termfiscalpositionsandensuringdebtsustainability,whileenhancinginvestment. Not relevant anymoreNot applicableSDG 8, 16Strengthen the resilience of the health system and Limited progressRelevant RRP measures being planned as of 2022.SDG 3ensure adequate and equal access to healthcare. Limited progressRelevant RRP measures being planned as of 2025.SDG 1, 2, 3, 102020 CSR 2Substantial progressMitigate the employment and social impacts of the crisis, including by implementing measures such as short-time work schemes and Full implementationRelevant RRP measures being planned as of 2023.SDG 1, 2, 8, 10ensuring effective activation support. Some progressRelevant RRP measures being planned as of 2023.SDG 82020 CSR 3Some progressSwiftly deploy measures to provide liquidity and continued flow of credit and other financing to the economy, focusing in particular on small and medium-sized enterprises most affected by crisis.Substantial progressRelevant RRP measures being implemented as of 2021.SDG 8, 9Front-load mature public investment projects and Substantial progressRelevant RRP measures being planned as of 2022.SDG 8, 16promote private investment to foster the economic recovery. Some progressRelevant RRP measures being implemented as of 2021.SDG 8, 9Focusinvestmentonthegreenanddigitaltransition,inparticularonsafe and sustainable transport and logistics, Limited progressRelevant RRP measures being implemented as of 2021.SDG 11clean and efficient production and use of energy, Some progressRelevant RRP measures being implemented as of 2021.SDG 7, 9, 13environmental infrastructure and Limited progressRelevant RRP measures being implemented as of 2021.SDG 6, 12, 15very-high capacity digital infrastructure and Some progressRelevant RRP measures being planned as of 2022.SDG 9skills. Some progressRelevant RRP measures being planned as of 2022.SDG 4Improve the effectiveness and digitalisation of the public administration andSubstantial progressRelevant RRP measures being implemented as of 2021.SDG 9, 16promote digital transformation of businesses. Some progressRelevant RRP measures being planned as of 2022.SDG 92020 CSR 4Substantial progressContinueandcompletereformsinlinewiththepost-programmecommitmentsgivenattheEurogroupof22June2018torestartasustainableeconomicrecovery,followingthegradualeasingupofconstraints imposed due to the COVID-19 outbreak.Substantial progressRelevant RRP measures being implemented as of 2021.SDG 1, 2, 8, 9, 10, 162021 CSR 1Substantial progressIn2022,usetheRecoveryandResilienceFacilitytofinanceadditionalinvestmentinsupportoftherecoverywhilepursuingaprudent fiscal policy. Preserve nationally financed investment. Full implementationNot applicableSDG 8, 16When economic conditions allow, pursue a fiscal policy aimed at achieving prudent medium-term fiscal positions and ensuring fiscal sustainability in the medium term. Substantial progressNot applicableSDG 8, 16 
 
 
 
  
 
Table (continued) 

Note:  
* See footnote (51).  
** RRP measures included in this table contribute to the implementation of CSRs. Nevertheless, additional measures outside the 
RRP are necessary to fully implement CSRs and address their underlying challenges. Measures indicated as 'being implemented' 
are only those included in the RRF payment requests submitted and positively assessed by the European Commission.   
Source: European Commission. 

The Commission has assessed the 2019-2022 
country-specific  recommendations  (CSRs) (50) 

(50)  2022 CSRs: EUR-Lex - 32022H0901(08) - EN - EUR-Lex 

(europa.eu) 

      2021 CSRs: EUR-Lex - 32021H0729(08) - EN - EUR-Lex 

(europa.eu) 
2020 CSRs: EUR-Lex - 32020H0826(08) - EN - EUR-Lex 
(europa.eu) 
2019 CSRs: EUR-Lex - 32019H0905(08) - EN - EUR-Lex 
(europa.eu) 

29 

Atthesametime,enhanceinvestmenttoboostgrowthpotential.Payparticularattentiontothecompositionofpublicfinances,onboththerevenueandexpendituresidesofthebudget,andtothequalityofbudgetarymeasuresinordertoensureasustainableandinclusiverecovery.Prioritisesustainableandgrowth-enhancinginvestment,inparticular investment supporting the green and digital transition. Substantial progressNot applicableSDG 8, 16Give priority to fiscal structural reforms that will help provide financing for public policy priorities and contribute to the long-term sustainability of public finances, including, where relevant, by strengthening the coverage, adequacy and sustainability of health and social protection systems for all.Limited progressNot applicableSDG 8, 162022 CSR 1Some progressIn 2023, ensure prudent fiscal policy, in particular by limiting the growth of nationally financed primary current expenditure below medium-term potential output growth, taking into account continued temporary and targeted support to households and firms most vulnerable to energy price hikes and to people fleeing Ukraine. Stand ready to adjust current spending to the evolving situation.Full implementationNot applicableSDG 8, 16Expandpublicinvestmentforthegreenanddigitaltransitions,andforenergysecuritytakingintoaccounttheREPowerEUinitiative,includingbymakinguseoftheRecoveryandResilienceFacilityandother Union funds.Limited progressNot applicableSDG 8, 16For the period beyond 2023, pursue a fiscal policy aimed at achieving prudent medium-term fiscal positions and ensuring credible and gradual debt reduction and fiscal sustainability in the medium term through gradual consolidation, investment and reforms.Substantial progressNot applicableSDG 8, 16Buildingonreformsundertakenaspartoftherecoveryandresilienceplan,improvetheinvestment-friendlinessofthetaxationsystem by introducing a wider advance tax-ruling systemNo progressNot applicableSDG 8, 10, 12and review the structure of the tax burden on the self-employed.Some progressRelevant RRP measures being implemented as of 2022.SDG 8, 10, 12Safeguardtheefficiencyofthepublicadministrationwhileensuringitcanattracttherightskillsandpreservingconsistencywiththeunifiedwage grid.Some progressRelevant RRP measures being implemented as of 2022.SDG 162022 CSR 2Substantial progressProceedwiththeimplementationofitsrecoveryandresilienceplan,inlinewiththemilestonesandtargetsincludedintheCouncilImplementing Decision of 13 July 2021.Swiftly finalise the negotiations with the Commission on the 2021–2027 cohesion policy programming documents with a view to starting their implementation.Completeoutstandingreformsthathavebeenpursuedunderenhanced surveillance, including the cadastre reform.Substantial progressRelevant RRP measures being implemented as of 2022.SDG 3, 8, 92022 CSR 3Limited progressWithaviewtoensuringadequateandequalaccesstohealthcare,completetherolloutoftheprimaryhealthcarereforminlinewiththeframeworkamendedunderenhancedsurveillance,includingstaffingofallprimaryhealthcareunits,implementingpopulationregistrationand introducing effective gatekeeping by general practitioners.Limited progressRelevant RRP measures being planned as of 2023.SDG 32022 CSR 4Some progressReduceoverallrelianceonfossilfuels,anddiversifyimportsoffossilfuelsLimited progressRelevant RRP measures being implemented as of 2022.SDG 7, 9, 13by accelerating deployment of renewable energy and the development of infrastructure that would enable renewable hydrogen.Some progressRelevant RRP measures being implemented as of 2022.SDG 7, 9, 13Alsoaddressdependencythroughensuringsufficientcapacityofelectricitynetworksandinterconnectionsaswellasgasinterconnections and diversifying gas supply routes.Some progressRelevant RRP measures being planned as of 2023.SDG 7, 9, 13Strengthen the energy services market frameworkNo progressRelevant RRP measures being implemented as of 2022.SDG 7, 9, 13andstepupenergyefficiency-enhancingmeasuresthroughreformsandmarketincentivestosupportthedecarbonisationofthebuildingsectorSome progressRelevant RRP measures being implemented as of 2022.SDG 7and the transport sector, particularly by promoting electric mobility.Some progressRelevant RRP measures being implemented as of 2022.SDG 11RRP implementation is monitored by assessing RRP payment requests and analysing reports published twice a year on the achievement of the milestones and targets. These are to be reflected in the country reports. Progress on the cohesion policy programming documents is monitored under the EU cohesion policy. 
 
                                                 
 
                                                                              
 
  
 
 
 
addressed to Greece as part of the European 
Semester.  These  recommendations  concern  a 
wide  range  of  policy  areas  that  are  related  to  14 
of  the  17  Sustainable  Development  Goals  (see 
Annexes  1  and  3). The  assessment  considers  the 
policy  action  taken  by  Greece  to  date (51)  and  the 
commitments  in  its  recovery  and  resilience  plan 
(RRP) (52).  At  this  stage  of  RRP  implementation, 
70%  of  the  CSRs  focusing  on  structural  issues 
from  2019-2022  have  recorded  at  least  ‘some 
progress’,  while  25%  recorded  ‘limited  progress’ 
(see  Graph  A2.1).  As  the  RRP  is  implemented 
in  addressing 
further,  considerable  progress 
structural CSRs is expected in the years to come. 

Graph A2.1: Greece’s progress on the 2019-2022 
CSRs (2023 European Semester) 

Source: European Commission. 

(51)  Including policy action reported in the national reform 

programme and in Recovery and Resilience Facility (RRF) 
reporting (twice a year reporting on progress in implementing 
milestones and targets and resulting from the payment 
requests assessment). 

(52)  Member States were asked to effectively address all or a 

significant subset of the relevant country-specific 
recommendations issued by the Council in 2019 and 2020 in 
their RRPs. The CSR assessment presented here considers the 
degree of implementation of the measures included in the 
RRP and of those carried out outside of the RRP at the time 
of assessment. Measures laid down in the Annex of the 
adopted Council Implementing Decision on approving the 
assessment of the RRP, which are not yet adopted or 
implemented but considered credibly announced, in line with 
the CSR assessment methodology, warrant ‘limited progress’. 
Once implemented, these measures can lead to 
‘some/substantial progress or full implementation’, 
depending on their relevance. 

30 

No progress5%Limited progress25%Some progress42%Substantial progress21%Full implementation7% 
   
 
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX 3: RECOVERY AND RESILIENCE PLAN - OVERVIEW 

The  Recovery  and  Resilience  Facility  (RRF)  is 
the centrepiece of the EU’s efforts to help it 
recover  from  the  COVID-19  pandemic,  speed 
up  the  twin  transition  and  strengthen 
resilience  against  future  shocks.  The  RRF 
also  contributes  to  implementation  of  the 
SDGs  and  helps  to  address  the  Country 
Specific  Recommendations 
(see  Annex 4). 
Greece submitted its initial recovery and resilience 
plan  (RRP)  on  27  April 2021.  The  Commission’s 
positive  assessment  on  17 June 2021  and 
Council’s approval on 13 July 2021 paved the way 
for  disbursing  EUR  17.8  billion  in  grants  and  EUR 
12.7 billion in loans under the RRF over the 2021-
2026 period.   

into  force  of  the  RRF 
Since  the  entry 
Regulation  and  the  assessment  of  the 
national  recovery  and  resilience  plans, 
geopolitical  and  economic  developments 
have caused major disruptions across the EU. 
In  order  to  effectively  address  these  disruptions, 
the  (adjusted)  RRF  Regulation  allows  Member 
States to amend their recovery and resilience plan 
for  a  variety  of  reasons.  In  line  with  article  11(2) 
of the RRF, the maximum financial contribution for 
Greece was moreover updated on 30 June 2022 to 
an  amount  of  EUR  17.4  billion  in  grants.  No 
revision was submited at the time of publication of 
this country report. 

Table A3.1: Key elements of the Greek RRP('s) 

Scoreboard (29).  The  Scoreboard  also  gives  an 
overview  of  the  progress  made  in  implementing 
the RRF as a whole, in a transparent manner. The 
graphs in this Annex show the current state of play 
of  the  milestones  and  targets  to  be  reached  by 
as 
subsequently 
Greece 
satisfactorily fulfilled by the Commission. 

assessed 

and 

EUR  11.10  bn  has  so  far  been  disbursed  to 
Greece  under  the  RRF.  The  Commission 
disbursed  EUR 3.96  bn  to  Greece  in  pre-financing 
on  9  August  2021,  equivalent  to  13%  of  the 
financial allocation.  

(net 

first 

Greece’s 
request  was 
payment 
positively  assessed  by  the  Commission, 
into  account  the  opinion  of  the 
taking 
Economic  and  Financial  Committee,  leading 
to EUR 3.6 billion being disbursed in financial 
support 
on 
8 April 2022.  The  related  15  milestones  and 
targets  cover  reforms  and  investments  in  the 
areas  of  energy  efficiency,  sustainable  mobility, 
taxation 
waste  management, 
policy, 
the  business  environment,  healthcare, 
public  transport  and  Greece’s  audit  and  control 
system for the implementation of the RRF. 

labour  market, 

pre-financing) 

of 

of 

(net 

Greece’s  second  payment 
request  was 
positively  assessed  by  the  Commission, 
taking 
into  account  the  opinion  of  the 
Economic  and  Financial  Committee,  leading 
to EUR 3.6 billion being disbursed in financial 
support 
on 
19 January 2023. The related 28 milestones and 
targets  cover  reforms  and  investments promoting 
the  use  of  renewable  energy,  re-organising  the 
railways  sector,  and  opening  up  the  public  bus 
transportation  market  to  improve  services  and  to 
promote a greener bus fleet. Further, three of the 
milestones and targets concerned the loan part of 
the Facility.  

pre-financing) 

Source: European Commission  

Greece’s progress in implementing its plan is 
published  in  the  Recovery  and  Resilience 

On  16  May  2023,  Greece  submitted  its  third 
payment request, for which the Commission’s 
assessment is ongoing. Overall, Greece reports a 
timely  implementation  of  the  milestones  and 
targets  covered  by  the  third  payment  request, 
which does not however prejudge the timing of the 
submission  of  subsequent  payment  requests  or 

(29)  https://ec.europa.eu/economy_finance/recovery-and-

resilience-scoreboard/country_overview.html 

31 

Current RRPScope Initial planCID adoption date 13 July 2021Total allocation EUR 17.8 billion in grants and EUR 12.7 billion in loans (16.68% of 2021 GDP)Investments and reforms 106 investments and 68 reforms Total number of milestones and targets331 
 
 
  
 
                                                 
 
Graph A3.1: Disbursements per pillar 

Note: Each disbursement reflects progress in the implementation of the RRF, across the six policy pillars. This graph displays how 
disbursements under the RRF (excluding pre-financing) relate to the pillars. The amounts were calculated by linking the milestones 
and targets covered by a given disbursement to the pillar tagging (primary and secondary) of their respective measures. 
Source: Recovery and Resilience Scoreboard 

the  Commission’s  formal  assessment  of  the 
fulfilment of the relevant milestones and targets.  

Graph A3.2: Total grants disbursed under the RRF 

Note: This graph displays the amount of grants disbursed so 
far under the RRF. Grants are non-repayable financial 
contributions. The total amount of grants given to each 
Member State is determined by an allocation key and the 
total estimated cost of the respective RRP. 
Source: Recovery and Resilience Scoreboard 

32 

€ 5.75billion0 bn1 bn1 bn2 bn2 bn3 bn3 bnGreen transitionDigitaltransformationSmart,sustainable andinclusive growthSocial andterritorialcohesionHealth, andeconomic, socialand institutionalresiliencePolicies for thenext generation 
 
 
 
 
 
 
   
 
   
Graph A3.3: Total loans disbursed under the RRF 

Graph A3.4: Fulfilment status of milestones and 
targets 

Note: This graph displays the amount of loans disbursed so 
far under the RRF. Loans are repayable financial contributions. 
The total amount of loans given to each Member State is 
determined by the assessment of its loan request and cannot 
exceet 6.8% of its 2019 GNI. 
Source: Recovery and Resilience Scoreboard 

Note: This graph displays the share of satisfactorily fulfilled 
milestones and targets. A milestone or target is satisfactorily 
fulfilled once a Member State has provided evidence to the 
Commission that it has reached the milestone or target and 
the Commission has assessed it positively in an implementing 
decision. 
Source: Recovery and Resilience Scoreboard 

33 

€ 5.35billionSatisfactorily fulfilledNot fulfilled 
   
 
 
 
 
 
   
ANNEX 4: OTHER EU INSTRUMENTS FOR RECOVERY AND GROWTH 

The  EU  budget  of  over  EUR  1.2  trillion  for 
2021-2027  is  geared  towards  implementing 
the  EU’s  main  priorities.  Cohesion  policy 
investment amounts to EUR 392 billion across the 
EU and represents almost a third of the overall EU 
budget, including around EUR 48 billion invested in 
line with REPowerEU objectives. 

Graph A4.1: Cohesion policy funds (2021-2027) in 
Greece: budget by fund 

(1) billion EUR in current prices, % of total; (total amount 
including EU and national co-financing) 
Source: European Commission, Cohesion Open Data 

In  2021-2027,  in  Greece,  cohesion  policy 
funds  (30)  will  invest  EUR  10.8  billion  in  the 
green  transition  and  EUR  1.4  billion  in  the 
digital  transformation  as  part  of  the 
country’s total allocation of EUR 25.7 billion. 
In  particular,  the  European  Regional  Development 
Fund  (ERDF)  will  boost  research  and  innovation 
and  help  at  least  34 160  companies  grow  in 
sectors  directly  linked  to  the  smart  specialisation 
strategy  (digital  technologies,  sustainable  energy 
and tourism, culture, creative industries) . Greece is 
expected  to  achieve  a  minimum  of  30%  primary 
energy savings in around 80 000 dwellings in the 
coming  years.  In  addition,  EUR  769  million  and 
EUR  995  million  will  improve  solid  waste  and 
water  resources  management,  respectively.  These 
investments,  together  with  further  reforms  to 
comply  with  the  Urban  Wastewater  Directive,  will 
help  ensure  the  sustainability  of  Greece’s  water 
sector. The Just Transition Fund (JTF) will promote 
economic  diversification,  upskilling  and  re-skilling 
of workers, and job creation in geographical areas 
most  affected  by  the  energy  transition.  This  will 
help  Greece  fulfill  its  commitment  to  phase  out 

(30)  European Regional Development Fund (ERDF), Cohesion Fund 
(CF), European Social Fund+ (ESF+), Just Transition Fund 
(JTF) excluding Interreg programmes. The total amount 
includes national and EU contributions. Data source: 
Cohesion Open Data 

the  use  of  lignite  for  electricity  generation  by 
2028.  The  European  Social  Fund  Plus  (ESF+) 
allocates EUR 2.2 billion to employment, of which 
EUR 750 million will help boost youth employment. 
EUR  1.28  billion  will  contribute  to  improving 
educational  outcomes  and  promoting  sustainable 
lifelong  learning.  Over  EUR  57  million  will  go 
towards  capacity  building  for  social  partners  and 
civil  society  organisations,  EUR  672  million 
towards tackling child poverty and EUR 360 million 
towards  helping  vulnerable  groups  overcome 
material deprivation.  

Of  the  investments  mentioned  above,  EUR 
1.8  billion  will  be  invested  in  line  with 
REPowerEU objectives. This is on top of the EUR 
1.1  billion  dedicated  to  REPowerEU  under  the 
2014-2020  budget.  EUR  1.3  billion  (2021-2027) 
and  EUR  0.6  billion  (2014-2020)  is  for  improving 
energy efficiency; EUR 0.1 billion (2021-2027) and 
EUR  0.5  billion  (2014-2020)  is  for  renewable 
energy  and  low-carbon  R&I;  and  EUR  0.4  billion 
(2021-2027) is for smart energy systems.  

Graph A4.2: Synergies between cohesion policy 
funds and the RRF with its six pillars in Greece 

(1) million EUR in current prices (total amount, including EU 
and national co-financing)   
Source: European Commission  

In  2014-2020,  cohesion  policy  funds  made 
EUR 18 billion available to Greece (31) with an 
absorption 
national 
financing,  the  total  investment  amounted  to  EUR 
22.2 billion - around 1.8% of GDP for 2014-2020.  

of  92% (32). 

Including 

(31)  Cohesion policy funds include the ERDF, CF, ESF and the 
Youth Employment Initiative (YEI). ETC programmes are 
excluded here. According to the ‘N+3 rule’, the funds 
committed for 2014-2020 must be spent by 2023. REACT-
EU is included in all figures. The total amount includes EU 
and national co-financing. Data source: Cohesion Open Data. 

(32)  2014-2020 Cohesion policy EU payments by MS is updated 

daily on Cohesion Open Data.  

34 

3.413%13.653%728%1.66%CFERDFESF+JTF7,256 632 6,845 4,654 1,245 287 10,765 1,373 4,033 5,302 743 2,216 020004000600080001000012000Green transitionDigitaltransformationSmart, sustainableand inclusivegrowthSocial and territorialcohesionHealth, economic,social andinstitutionalresiliencePolicies for the nextgenerationEU CP 2014-2020 (million EUR)EU CP 2021-2027 (million EUR) 
 
  
                                                 
   
                                                 
 
 
Greece  continues  to  benefit  from  cohesion 
policy flexibility to support recovery, step up 
convergence  and  provide  vital  support  to 
regions  following  the  COVID-19  pandemic. 
The  Recovery  Assistance  for  Cohesion  and  the 
Territories  of  Europe  instrument  (REACT-EU) (33) 
under NextGenerationEU provides EUR 2 billion on 
top  of  the  2014-2020  cohesion  policy  allocation 
for  Greece.  It  is  expected  that  REACT-EU  will 
deliver support to firms affected by COVID-19 and 
help households improve their energy consumption 
classification.  Some  272 000  firms  and  24 000 
households  benefit  from  this  support.  With  SAFE 
(Supporting  Affordable  Energy),  the  2014-2020 
cohesion  policy  funds  may  also  be  mobilised  by 
Greece to support vulnerable households, jobs and 
companies  particularly  affected  by  high  energy 
prices.  

Graph A4.3: Cohesion policy funds contribution to 
the SDGs in 2014-2020 and 2021-2027 in Greece 

2014-2022, and it will continue to support Greece 
with  EUR  13.5  billion  in  2023-2027.  The  two  CAP 
Funds  (European  Agricultural  Guarantee  Fund  and 
European Agricultural Fund for Rural Development) 
contribute  to  the  European  Green  Deal  while 
ensuring  long-term  food  security.  They  promote 
social,  environmental  and  economic  sustainability 
and  innovation  in  agriculture  and  rural  areas,  in 
coordination  with  other  EU  funds.  The  European 
Maritime  and  Fisheries  Fund  made  EUR  380 
million available to Greece in 2014-2020 and the 
European  Maritime,  Fisheries  and  Aquaculture 
Fund  makes  EUR  375  million  available  in  2021-
2027.  

Greece  also  benefits 
from  other  EU 
programmes,  notably  the  Connecting  Europe 
Facility,  which  under  CEF  2  (2021-2027)  has  so 
far  allocated  EU  funding  of  EUR  167.9  million  to 
six  specific  projects  on  strategic 
transport 
networks.  Similarly,  Horizon  Europe  has  so  far 
allocated  nearly  EUR  41.5  billion  for  Greek  R&I 
actors,  while  in  the  previous  programming  period, 
Horizon  2020  earmarked  EUR  1.7  billion.  The 
Public  Sector  Loan  Facility  established  under  the 
Just  Transition  Mechanism  makes  EUR  63  million 
of  grant  support  from  the  Commission  available 
for projects in 2021-2027, which will be combined 
with loans from the EIB to support investments by 
public sector entities in just transition regions.  

(1) 5 largest contributions to SDGs in million (EUR) current 
prices 
Source: European Commission  

In both 2014-2020 and 2021-2027, cohesion 
policy  funds  have  contributed  substantially 
to  the  Sustainable  Development  Goals’ 
(SDGs).  These  funds  support  11  of  the  17  SDGs, 
notably SDG 8 ‘decent work and economic growth’ 
and 
and 
infrastructure’ (34).  

innovation 

‘industry, 

SDG 9 

Other  EU  funds  make  significant  resources 
available  for  Greece.  The  common  agricultural 
policy  (CAP)  made  available  EUR  23.5  billion  in 

(33)  REACT-EU allocation on Cohesion Open Data. 

(34)  Other EU funds contribute to the implementation of the 
SDGs. In 2014-2022, this includes both the European 
Agricultural Fund for Rural Development (EARDF) and the 
European Maritime and Fisheries Fund (EMFF). 

for 

risks 

temporary 

unemployment 

support 
in 

Greece  received  support  under  the  European 
to 
instrument 
mitigate 
an 
emergency  (SURE)  to  finance  short-time  work 
schemes  and  similar  measures  to  mitigate  the 
impact of COVID-19. The Council granted financial 
assistance  to  Greece  of  EUR  6.2  billion  in  loans, 
which supported around 41% of workers and 45% 
of firms in 2020, and around 17% of workers and 
29% of firms in 2021.  

Greece 

Instrument 
designing 

(TSI) 
The  Technical  Support 
and 
in 
supports 
implementing  growth-enhancing 
reforms, 
including  those  set  out  in  its  recovery  and 
resilience  plan  (RRP).  Greece  has  received 
significant  support  since  2015.  Examples (35) 
include 
by 
addressing  challenges  in  legislation,  educational 
policy  and  practice  and  supporting  the  efficiency 

promoting 

education 

inclusive 

(35)  Country factsheets on reform support are available here. 

35 

6,4613,8801,5471,4171,3239,3165,1542,3332,2311,21901,0002,0003,0004,0005,0006,0007,0008,0009,00010,000SDG 8 Decentwork andeconomic growthSDG 9 Industry,innovation,infrastructureSDG 4 QualityeducationSDG 7 Affordableand clean energySDG 6 Clean waterand sanitationEU CP 2014-2020 (millions EUR)EU CP 2021-2027 (millions EUR) 
      
                                                 
                                                 
and  resilience  of  the  Greek  administration  by 
strengthening evidence-based policymaking.  

36 

 
Compared  to  the  EU  average,  Greece  shows 
an overall lower level of capacities across all 
RDB  indicators. 
It  has  overall  medium-low 
resilience  capacities  in  the  social  and  economic 
and  digital  dimensions,  and  medium  capacities  in 
the  green  and  geopolitical  dimensions.  Greece 
shows stronger capacities than the EU  average in 
the 
and 
sustainable  agriculture’  and  ‘value  chains  and 
trade’.  It  has  significant  room  for  improving 
capacities  compared  to  the  EU  in  the  areas 
‘inequalities  and 
the 
the  social 
‘climate  change  mitigation  and 
transitions’, 
adaptation’,  ‘digitalisation  for  public  space’,  and 
‘financial globalisation’, among others 

'ecosystems, 

biodiversity 

impact  of 

areas 

Table A5.1: Resilience indices summarising the 
situation across RDB dimensions and areas 

(1) Data are for 2021, and EU-27 refers to the value for the 
EU as a whole. Data underlying EU-27 vulnerabilities in the 
area ‘value chains and trade’ are not available as they 
comprise partner concentration measures that are not 
comparable with Member States’ level values. 
Source: JRC Resilience Dashboards - European Commission 

ANNEX 5: RESILIENCE 

This  Annex 
illustrates  Greece’s  relative 
resilience capacities and vulnerabilities using 
the  Commission’s 
resilience  dashboards 
(RDB) (36).  Comprising  a  set  of  124  quantitative 
indicators,  the  RDB  provide  broad  indications  of 
Member  States’  ability  to  make  progress  across 
four interrelated dimensions: social and economic, 
green, digital, and geopolitical. The indicators show 
vulnerabilities (37)  and  capacities (38)  that  can 
become  increasingly  relevant,  both  to  navigate 
ongoing  transitions  and  to  cope  with  potential 
future shocks. To this end, the RDB help to identify 
areas  that  need  further  efforts  to  build  stronger 
and  more  resilient  economies  and  societies.  They 
in  Table  A5.1  as  synthetic 
are  summarised 
resilience 
illustrate  the  overall 
relative  situation  for  each  of  the  four  dimensions 
and their underlying areas for Greece and the EU-
27 (39). 

indices,  which 

According  to  the  set  of  resilience  indicators 
under  the  RDB,  Greece  generally  displays  a 
similar,  but  somewhat  higher 
level  of 
vulnerabilities  compared  to  the  EU  average. 
Greece exhibits medium-high vulnerabilities in the 
social  and  economic  dimension  of  the  RDB, 
medium  vulnerabilities  in  the  geopolitical  and 
digital dimensions, and medium-low vulnerabilities 
in  the  green  dimension.  Compared  to  the  EU 
average, Greece faces higher vulnerabilities in the 
‘economic  and  financial  stability  and 
areas 
‘health,  education  and  work’, 
sustainability’, 
digitalisation  of  personal  space  and  industry,  as 
well  as  ‘financial  globalisation’.  It  displays  lower 
vulnerabilities  than  the  EU  average  in  the  areas 
‘ecosystems, 
‘sustainable  use  of 
biodiversity  and  sustainable  agriculture’  and 
‘cybersecurity’. 

resources’, 

(36)  For details see https://ec.europa.eu/info/strategy/strategic-
planning/strategic-foresight/2020-strategic-foresight-
report/resilience-dashboards_en; see also 2020 Strategic 
Foresight Report (COM(2020) 493). 

(37)  Vulnerabilities describe features that can exacerbate the 

negative impact of crises and transitions, or obstacles that 
may hinder the achievement of long-term strategic goals. 

(38)  Capacities refer to enablers or abilities to cope with crises 
and structural changes and to manage the transitions.  

(39)  This Annex is linked to Annex 1 on SDGs, Annex 6 on the 
green deal, Annex 8 on the fair transition to climate 
neutrality, Annex 9 on resource productivity, efficiency and 
circularity, Annex 10 on the digital transition and Annex 14 
on the European pillar of social rights. 

37 

ELEU-27ELEU-27Vulnerabilities IndexHighMedium-highMediumMedium-lowLowNot availableCapacities IndexHighMedium-highMediumMedium-lowLowNot availableDimension/AreaVulnerabilitiesCapacitiesSocial and economicHealth, education and workInequalities and social impact of the transitionsGreenEconomic & financial stability and sustainabilitySustainable use of resourcesClimate change mitigation & adaptationDigitalEcosystems, biodiversity, sustainable agricultureDigital for industryDigital for personal spaceCybersecurityDigital for public spaceRaw material and energy supplyGeopoliticalValue chains and tradeFinancial globalisationSecurity and demography 
 
                                                 
 
  
 
 
 
ENVIRONMENTAL SUSTAINABILITY 
ANNEX 6: EUROPEAN GREEN DEAL 

several 
and 

Greece’s  green  transition  requires  continued 
including 
action 
on 
renewables 
efficiency. 
Implementation  of  the  European  Green  Deal  is 
underway 
in  Greece;  this  Annex  provides  a 
snapshot of the key areas involved (40). 

aspects 

energy 

less  than 

Greece is projected to meet its 2030 climate 
policy  target  for  the  effort  sharing  sectors 
by a comfortable margin (41). Data for 2021 on 
the  greenhouse  gas  emissions  generated  by 
Greece in these sectors are expected to show that 
the  country  generated 
its  annual 
emission  allocations (42).  Current  policies  are 
projected  to  reduce  these  emissions  by  -27% 
relative  to  2005  levels  in  2030,  more  than 
sufficient  to  reach  both  the  effort  sharing  target 
and Greece’s new target, in line with the EU’s 55% 
objective,  of  a  -22.7%  reduction.  The  additional 
measures  tabled  would  bring  a  sharper  reduction 
in  emissions  of  -36% (43).  In  its  recovery  and 
resilience plan, Greece has attributed 37.5% of its 
Recovery  and  Resilience  Fund  allocation  to  key 
reforms  and  investments  to  attain  the  climate 

(40)  The overview in this Annex is complemented by the 

information provided in Annex 7 on energy security and 
affordability, Annex 8 on the fair transition to climate 
neutrality and environmental sustainability, Annex 9 on 
resource productivity, efficiency and circularity, Annex 11 on 
innovation, and Annex 19 on taxation. 

(41)  Member States’ greenhouse gas emission targets for 2030 
(‘effort sharing targets’) were increased by Regulation (EU) 
2023/857 (the Effort Sharing Regulation) amending 
Regulation (EU) 2018/842, aligning the action in the 
concerned sectors with the objective to reach EU-level, 
economy-wide greenhouse gas emission reductions of at 
least 55% relative to 1990 levels. The Regulation sets 
national targets for sectors outside the current EU Emissions 
Trading System, notably: buildings (heating and cooling), road 
transport, agriculture, waste, and small industry. Emissions 
covered by the EU ETS and the Effort Sharing Regulation are 
complemented by net removals in the land use sector, 
regulated by Regulation (EU) 2018/841 (the Land Use, Land 
Use Change and Forestry (LULUCF) Regulation) amended by 
Regulation (EU) 2023/839. 

(42)  Greece’s annual emission allocations for 2021 were some 
45.8 Mt CO2eq, and its approximated 2021 emissions were 
42.7 Mt (see European Commission, Accelerating the 
transition to climate neutrality for Europe’s security and 
prosperity: EU Climate Action Progress Report 2022, 
SWD(2022)343). 

(43)  See the information on the distance to the 2030 climate 

policy target in Table A6.1. Existing and additional measures 
as of 15 March 2021.  

objectives (44). In May 2022, the parliament passed 
a  national  climate  law,  aligned  with  the  EU 
objective  of  cutting  greenhouse  emissions  by  at 
least 55% by 2030, 80% by 2040 and the aim to 
achieve  climate  neutrality  by  2050.  The  law  also 
strengthens  climate  goals  on  adaptation,  carbon 
budgeting  and  mitigation  in  electricity  production, 
transport and buildings. 

Graph A6.1: Thematic – greenhouse gas emissions 
from the effort sharing sectors in Mt CO2eq, 
2005-2021 

Source: European Environmental Agency. 

Greece  is  on  track  to  meet  its  net  carbon 
removals  target  for  2030  in  the  land  use 
sector. Greece’s mitigation action in the land use, 
land use change and forestry (LULUCF) sector has 
remained very stable for over a decade, removing 
about 5 000 kt CO2eq a year (see Table A6.1) (45). 
Greece could further increase its carbon removals 
through 
sustainable 
farming, 
management  of  existing  forests  and  prompt 
replacement of harvested or damaged forests. 

carbon 

the 

Fossil  fuels  still  play  an  important  role  in 
Greece’s  energy  mix  but  it  expects  to  phase 
out  coal  and  oil  gradually.  In  the  last  decade, 
coal share in the energy mix reduced sharply from 
26% in 2011 to 8% in 2021, while in the case of 
oil  only  a  slight  reduction  from  56%  in  2011  to 
48% in 2021. On the other hand, gas share in the 
energy  mix  has  been  increasing  to  reach  26%  in 
2021  (an  increase  of  13pp  when  compared  with 
to 
2011).  Greece  has  an  ambitious  plan 
decommission  its  lignite  plants  by  2028,  a  target 

(44)  For example, significant investments in irrigation and flood 

mitigation with measures for sustainable water 
management, as well as on the renovation of buildings. 

(45)  This value is indicative and will be updated in 2025 (as 

mandated by Regulation (EU) 2023/839). 

38 

01020304050607020052021Domestic transport (excl. aviation)Buildings (under ESR)AgricultureSmall industryWaste 
 
 
                                                 
     
                                                 
 
 
enshrined in the national energy and climate plan 
and  Greece’s  first  ever  Climate  law.  By  2030, 
Greece  expects  to  increase  the  share  of  natural 
gas  and  renewables  in  the  energy  mix,  with  coal 
disappearing and oil falling considerably.  In 2021, 
renewable  energy  and  natural  gas  made  up  the 
bulk of Greece’s electricity mix, at 41% each.  

Graph A6.2: Energy mix (top) and electricity mix 
(bottom), 2021 

includes 

climate  and  energy  targets  in  the  Fit  for  55 
Package  and  in  the  REPowerEU  Plan.  Greece’s 
recovery  and 
the 
resilience  plan 
installation  of  3GW  of  new  renewable  energy 
(wind  and  solar)  by  the  end  of  2025  and  the 
installation  of  storage  systems  (1380MW)  to 
facilitate the integration of new renewable energy 
capacity.  In  2022,  Greece  has  taken  steps  to 
streamline the licensing framework for renewable 
energy and recently adopted laws laying down the 
first  legal  framework  for  the  development  of 
offshore  wind  farms  as  well  as  establishing  a 
framework for Guarantees of Origin. The electricity 
interconnection  of  the  Cyclades 
islands  and 
upgrades  to  the  electricity  network  will  further 
boost  the  penetration  of  renewable  energy  in 
Greece’s electricity mix. 

Greece  has  a  high  untapped  potential  to 
make  energy  savings.  Greece´s  NECP  targets 
for  primary  and  final  energy  consumption  (PEC 
and  FEC)  were  considered  of  modest  and  low 
ambition  respectively  in  the  2020  Commission 
assessment.  Based  on  the  energy  consumption 
trajectory for 2018-2021, Greece is expected to be 
on  track  to  meet  its  2030  target  for  PEC  and  for 
FEC, as these were notified in its NECP (46). Despite 
the  action  taken  on  energy  efficiency,  Greece 
needs  to  further  unlock  its  potential  for  energy 
efficiency. Its recovery and resilience plan includes 
improve  energy  efficiency  by 
projects 
renovating 
public-sector 
and 
buildings, notably through loans for private sector 
investments  enhancing  actions  from  the  Loan 
Facility.  The  national  energy  and  climate  plan 
proposes  additional  actions  that  could  be  taken, 
especially  in  the  buildings,  water  and  transport 
sectors,  promoting  energy  services,  market 
mechanisms  and  innovative  financial  instruments 
for energy efficiency. 

private-sector 

to 

The  transition  to  a  sustainable  transport 
system  remains  a  key  challenge.  The  take-up 
of  electric  vehicles  is  still  very  slow,  though 
accelerating. The market is undeveloped, reflecting 
the  lack  of  charging  infrastructure.  Investments 
and reforms included in the recovery and resilience 
plan such as the installation of publicly accessible 
charging  stations  aim  to  help  overcome  these 

(46)  After the conclusion of the negotiations for a recast EED, the 
ambition of both the EU and national targets as well as of 
the national measures for energy efficiency to meet these 
targets is expected to increase” 

The energy mix is based on gross inland consumption, and 
excludes heat and electricity. The share of renewables 
includes biofuels and non-renewable waste.  
Source: Eurostat 
Source:  

Renewable energy sources play an important 
role  in  Greece’s  energy  system.  In  2021, 
Greece’s  share  of  renewable  energy  sources  in 
gross  final  energy  consumption  was  21.93%  (an 
increase  of  almost  12pp  when  compared  with 
2011). Greece’s target of 35% of share of energy 
from  renewable  sources  in  gross  final  energy 
consumption  by  2030  included  in  the  NECP  was 
considered sufficiently ambitious. Greece will need 
to  increase  its  renewable  energy  target  in  the 
updated  NECP  to  reflect  the  more  ambitious  EU 

39 

10%41%8%41%Solid fossil fuels,peat and oil shaleGasOilRenewables8%26%48%18%Solid fossil fuels,peat and oil shaleGasOilRenewables 
  
                                                 
challenges.  Greece  has  one  of  the  highest 
congestion  rates  in  the  EU.  The  railways  sector  is 
small  and  the  main  line  between  Athens  and 
Thessaloniki,  which  could  substitute  the  very 
lucrative short-haul flights between the two cities, 
is  underused.  There  are  no  zero-emission 
passenger  ships  between  the  islands  and  the 
mainland. 
exacerbates 
seasonal  problems  with  air  pollution  and  leads  to 
significant  health  and  economic  costs,  in  Athens 
and Thessaloniki in particular.  

Individual 

transport 

Graph A6.3: Thematic – environmental investment 
needs and current investment, p.a. 2014-2020 

of 

allocate sufficient resources to the protection and 
Site-specific 
these 
management 
conservation  objectives,  conservation  measures, 
and  management  plans  have  yet  to  be  drawn  up 
for several sites. 

sites. 

with 

water 

adaptation 

management 

Climate  change  is  affecting  many  sectors  in 
challenges 
Greece, 
in 
concerning 
particular (50).  Affected  sectors  include  energy 
supply,  the  built  environment,  agriculture,  and 
tourism.  These  all  depend  on  water,  which  is 
increasingly  scarce (51).  Heat-related 
becoming 
mortality and morbidity rates are projected to rise 
significantly. Greece’s recovery and resilience plan 
includes  measures  on 
reforestation,  water 
management,  and  the  protection  and  restoration 
of  biodiversity  and  ecosystems. 
It  also  has 
renovation  measures  that  aim  to  increase  the 
resilience  of  cities  and  their  building  stocks  to 
climate  change.  Greece  has  a  wide  insurance 
protection  gap  for  wildfires,  which  could  pose  a 
risk  to  public  finances  if  the  insurance  coverage 
remains low (52). 

Source: European Commission. 

Greece would benefit from investing more in 
environmental  protection, 
in  protecting 
in  tackling  pollution. (47) 
biodiversity  and 
Between  2014  and  2020,  the  environmental 
investment  needs  were  estimated  to  be  at  least 
EUR 4.3  billion  while  investment  was  at  about 
EUR 1.8  billion,  leaving  a  gap  of  at  least  EUR 2.4 
billion  per  year  (see  Graph  A6.3) (48).  Greece’s 
Natura  2000  network  covers  27.3%  of  its  land 
area (49)  and  19.6%  of  its  sea  area.  It  has  yet  to 

(47)  Environmental objectives include pollution prevention and 

control, water management and industries, circular economy 
and waste, biodiversity and ecosystems (European 
Commission, 2022, Environmental Implementation Review, 
country report Greece). 

(48)  When also accounting for needs estimated at EU level only 

(e.g., water protection, higher circularity, biodiversity 
strategy). 

(49)  In 2021, Greece had 35.0% terrestrial protected areas 

Greece  provides  fossil  fuel  and  other 
environmentally harmful subsidies that could 
be  considered  for  reform,  while  ensuring 
food  and  energy  security  and  mitigating 
social effects. Fossil fuel subsidies amounted to 
EUR  1.3  billion  in  2021,  putting  low  carbon 
alternatives  at  a  disadvantage.  Environmentally 
harmful  subsidies  have  been  identified,  via  an 
initial  assessment,  in the agriculture,  forestry  and 
fishing, electricity, gas, steam and air conditioning, 
transportation  and  storage,  mining  and  quarrying, 
manufacturing,  water  supply  and  sewerage, 
accomodation and food services sectors. Examples 
of such subsidies include the excise tax refund for 
diesel fuel used in agriculture, the reduced energy 
tax rate for light fuel oil used in mobile machinery, 
the  excise  tax  exemption  on  the  use  of  natural 
gas,  the  reimbursement  of  excise  duty  on  diesel 
used in freight  and other categories of passenger 
transport,  the  excise  duty  exemption  for  natural 

(50)  European Environmental Agency, Advancing towards climate 

resilience in Europe, forthcoming. 

(51)  According to the 6th IPCC climate adaptation report, in 

southern Europe, more than a third of the population will be 
exposed to water scarcity at global warming of 2°C. 

(Natura 2000 and nationally designated areas), against the 
EU average of 26.4% (European Environment Agency, 2023, 
Natura 2000 Barometer). 

(52)  European Insurance and Occupational Pensions Authority 
(EIOPA) dashboard on insurance protection gap for natural 
catastrophes. 

40 

1304535055751749266049771,5522010.0200.0400.0600.0800.01000.01200.01400.01600.01800.0Pollutionprevention andcontrolWater (industries,excl. protection)Circular economy(incl. waste)Biodiversity andecosystemsR&I&D and otherEUR million (at current prices)Current investmentTotal need 
       
                                                 
                                                 
gas  used  as  motor  fuel  or  the  excise  tax 
exemption  and  tax  relief  for  natural  gas  for 
industrial  consumers (53).  A  mapping  of  all 
environmentally  harmful  subsidies  by  Greece 
would help prioritise candidates for reform. 

Greece is taking steps to align environmental 
taxation  with  the  polluter  pays  principle. 
Greece’s revenues from environmental taxes have 
been above the EU average (see Annex 19). Under 
the reform of the waste sector in its recovery and 
resilience  plan,  Greece  reintroduced  a  landfill  tax, 
expected  to  improve  waste  management  and 
recycling  rates.  Its  application  was  scheduled  for 
2022 but it has not yet been enforced. Greece also 
recently  brought  in  a  resource  charge  for  water, 
with  tariffs  differentiated  by  types  of  use  and 
sources.  The  recovery  and  resilience  plan  also 
includes  establishing  a  national  waste  regulatory 
authority,  to  reform  the  regional  and  local  waste 
management  bodies  and  bring  in  sound  costing 
and  pricing  policies,  and  the  creation  of  a 
regulatory 
the 
management  of  water 
resources.  A  single 
Regulatory Authority for Energy, Waste and Water 
was established through Law 5037/2023, in March 
2023. 

streamlining 

authority 

for 

(53)  Fossil fuel figures in EUR of 2021 from the 2022 State of 

the Energy Union report. Initial assessment of 
environmentally harmful subsidies done by the Commission 
in the 2022 toolbox for reforming environmentally harmful 
subsidies in Europe, using OECD definitions, and based on the 
following datasets: OECD Agriculture Policy Monitoring and 
Evaluations; OECD Policy Instruments for the Environment 
(PINE) Database; OECD Statistical Database for Fossil Fuels 
Support; IMF country-level energy subsidy estimates. Annex 4 
of the toolbox contains detailed examples of subsidies on 
the candidates for reform. 

41 

 
                                                 
Table A6.1: Indicators tracking progress on the European Green Deal from a macroeconomic perspective 

Sources: (1) Historical and projected emissions, as well as Member States’ climate policy targets and 2005 base year emissions 
under the Effort Sharing Decision (for 2020) are measured in global warming potential (GWP) values from the 4th Assessment 
Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC). Member States’ climate policy targets and 2005 base 
year emissions under the Effort Sharing Regulation (for 2030) are in GWP values from the 5th Assessment Report (AR5). The 
table above shows the base year emissions 2005 under the Effort Sharing Decision, using AR4 GWP values. Emissions for 2017-
2021 are expressed in percentage change from 2005 base year emissions, with AR4 GWP values. 2021 data are preliminary. The 
table shows the 2030 target under Regulation (EU) 2023/857 that aligns it with the EU’s 55% objective, in percentage change 
from 2005 base year emissions (AR5 GWP). Distance to target is the gap between Member States’ 2030 target (with AR5 GWP 
values) and projected emissions with existing measures (WEM) and with additional measures (WAM) (with AR4 GWP values), in 
percentage change from the 2005 base year emissions. Due to the difference in global warming potential values, the distance to 
target is only illustrative. The measures included reflect the state of play as of 15 March 2021.  
(2) Net removals are expressed in negative figures, net emissions in positive figures. Reported data are from the 2023 
greenhouse gas inventory submission. 2030 value of net greenhouse gas removals as in Regulation (EU) 2023/839 
amending Regulation (EU) 2018/841 (LULUCF Regulation) – Annex IIa, kilotons of CO2 equivalent, based on 2020 submissions. 
(3) Renewable energy and energy efficiency targets and national contributions are in line with the methodology established under 
Regulation (EU) 2018/1999 (Governance Regulation).  
(4) Percentage of total revenue from taxes and social contributions (excluding imputed social contributions). Revenue from the EU 
Emissions Trading System is included in environmental tax revenue.  
(5) Expenditure on gross fixed capital formation for the production of environmental protection services (abatement and 
prevention of pollution) covering government, industry, and specialised providers.  
(6) European Commission, Study on energy subsidies and other government interventions in the European Union, 2022 edition.  
(7) The climate protection gap refers to the share of non-insured economic losses caused by climate-related disasters. This 
indicator is based on modelling of the current risk from floods, wildfires and windstorms as well as earthquakes, and an 
estimation of the current insurance penetration rate. The indicator does not provide information on the split between the 
private/public costs of climate-related disasters. A score of 0 means no protection gap, while a score of 4 corresponds to a very 
high gap (EIOPA, 2022).  
(8) Sulphur oxides (SO2 equivalent), ammonia, particulates < 10 µm, nitrogen oxides in total economy (divided by GDP).  
(9) Battery electric vehicles (BEV) and fuel cell electric vehicles (FCEV). 

42 

2030200520172018201920202021target/valueWEMWAMGreenhouse gas emission reductions in effort sharing sectors (1)Mt CO2eq; %; pp62.6-27%-29%-28%-31%--22.7%4.313.3Net carbon removals from LULUCF (2)kt CO2eq-3,529-4,111-4,945-5,401-5,416-5,476-4373n/an/a200520172018201920202021Share of energy from renewable sources in gross final consumption of energy (3)%7%17%18%20%22%22%35%Energy efficiency: primary energy consumption (3)Mtoe30.323.222.622.319.220.320.6Energy efficiency: final energy consumption (3)Mtoe21.016.415.916.214.515.216.5201620172018201920202021201920202021Environmental taxes (% of GDP)% of GDP3.84.03.83.93.83.92.42.22.2Environmental taxes (% of total taxation) (4)% of taxation 9.810.29.59.89.710.05.95.65.5Government expenditure on environmental protection% of total exp.3.02.92.92.92.72.11.71.61.6Investment in environmental protection (5) % of GDP0.20.20.20.20.0-0.40.40.4Fossil fuel subsidies (6)EUR2021bn1.51.71.61.91.41.353.050.0-Climate protection gap (7) score 1-42.22.41.5Net greenhouse gas emissions1990 = 10089.094.091.085.072.073.076.069.072.0Greenhouse gas emission intensity of the economykg/EUR'100.560.590.570.530.50-0.310.300.26Energy intensity of the economykgoe/EUR'100.130.130.130.120.12-0.110.11-Final energy consumption (FEC)2015=100101.299.196.197.887.391.8102.994.6-FEC in residential building sector2015=10097.598.987.892.296.295.1101.3101.3106.8FEC in services building sector2015=100108.7116.9111.7113.9101.5109.1100.194.4100.7Smog-precursor emission intensity (to GDP) (8)tonne/EUR'103.73.94.13.93.9-0.90.9-Years of life lost due to air pollution by PM2.5per 100.000 inh.1205.01926.71086.7883.6804.3-581.6544.5-Years of life lost due to air pollution by NO2per 100.000 inh.229.1309.5255.1216.5171.4-309.6218.8-Nitrates in ground watermg NO3/litre------21.020.8-Land protected areas% of total34.134.8-30.234.835.026.226.426.4Marine protected areas% of total6.5--19.7-19.810.7-12.1Organic farming% of total utilised agricultural area6.58.09.310.310.2-8.59.1-201720182019202020212022202020212022Share of zero-emission vehicles (9)% in new registrations0.00.10.20.82.22.65.48.910.7Number of AC/DC recharging points (AFIR categorisation)---286626926188626330028432518Share of electrified railways%23.829.632.1n/an/a31.256.6n/a56.6Hours of congestion per commuting driver per year36.337.736.136.9n/an/a28.7n/an/a'Fit for 55'DistanceProgress to policy targetsNational contribution to 2030 EU targetGreeceEUMobilityFiscal and financialindicatorsEnergyPollutionBiodiversityClimate 
 
     
 
ANNEX 7: ENERGY SECURITY AND AFFORDABILITY 

in  general.  This  makes 

Before Russia invaded Ukraine, Greece had a 
relatively  medium  exposure  to  Russian  gas 
and  oil,  slightly  below  the  EU  average. 
However,  it  is  highly  dependent  on  imported 
its 
fossil  fuels 
economy particularly sensitive to global price 
developments, requiring it to step up efforts 
on  the  energy  transition.  This  Annex (54)  sets 
out  the  actions  carried  out  by  Greece  to  achieve 
the  REPowerEU  objectives,  including  through  the 
implementation of its recovery and resilience plan, 
in  order 
improve  energy  security  and 
affordability  while  accelerating  the  clean  energy 
transition,  and  contributing  to  enhancing  the  EU’s 
competitiveness in the clean energy sector (55).  

to 

in 

EU 

the 

the 

that 

face  of 

Greece has showed a high level of gas supply 
challenging 
security 
circumstances 
faced, 
contributing to the overall European security 
of  supply. 
In  2022,  domestic  gas  demand 
amounted  to  nearly  4.9  billion  cubic  metres 
(bcm)/year.  73%  of  these  volumes  were  used  to 
generate  electricity.  The  Greek  gas  transmission 
system is interconnected to the Central and South 
Easter Europe energy connectivity (CESEC) system, 
to  the  Turkish  one  through  Kipoi  and  the  Trans 
Adriatic  Pipeline  (TAP)  and  to  the  Italian  gas 
system through  TAP. Greece  is  a liquefied  natural 
gas  (LNG)  entry  point  thanks  to  the  terminal  at 
Revythousa.  Revythousa  is  a  significant  supply 
entry point that covers around 44% of imports. In 
terms  of  the  remaining  entry  points,  the  entry 
point  of  Sidirokastro  covers  35%  of  imports, 
followed by the Nea Mesimvria entry point (where 
supply  increased  by  18%  compared  to  the  same 
period in 2021). The interconnection point in Kipoi, 
Evros  covers  2.5%  of  imports.  On  top  of  Russian 
pipeline gas imported, Greece imported 2.03 TW of 
Russian LNG in 2022 (56). 

(54)  It is complemented by Annex 6 as the European Green Deal 
focuses on the clean energy transition, by Annex 8 on the 
actions taken to mitigate energy poverty, including the most 
vulnerable ones, by Annex 9 as the transition to a circular 
economy will unlock significant energy and resource savings, 
further strengthening energy security and affordability, and 
by Annex 12 on industry and single market complementing 
ongoing efforts under the European Green Deal and 
REPowerEU. 

(55)  In line with the Green Deal Industrial Plan COM(2023) 62 
final, and the proposed Net-Zero Industry Act COM(2023) 
161 final 

(56)  Greek TSO (DESFA) Natural Gas Data 2022 

in  winter  2022-2023, 

Despite  not  having  underground  storage 
facilities,  Greece  has  been  taking  measures 
to  safeguard  its  gas  security  of  supply.  To 
minimise  any  potential  disruption  to  Russian 
the  Greek 
supplies 
Transmission  System  Operator  (TSO)    procured 
and  put  into  operation  a  floating  storage  unit  in 
November  2022,  for  12  to  18  months, 
in 
In  February  2022,  Greece  and 
Revythousa. 
Bulgaria  signed  a  Memorandum  of  Understanding 
including an agreement on storage. 

The commissioning of the Gas Interconnector 
Greece  Bulgaria  (IGB)  has  improved  the 
diversification  of  supply  in  Bulgaria.  IGB  is 
part  of  the  Vertical  Gas  Corridor  Greece-Bulgaria-
Romania-Hungary.  It  provides  access  to  natural 
gas  from  the  Southern  Gas  Corridor  and  LNG  to 
South  Eastern  and  Central  Europe  as  well  as 
Ukraine.  The  IGB  expansion  project  is  crucial  for 
IGB  transmission  capacity  from  3 
increasing 
bcm/year to 5 bcm/year. The expansion project has 
been  recognised  as  one  of  the  most  efficient 
solutions 
removing  bottlenecks  between 
Greece, TAP systems and Bulgaria as it will deliver 
gas  from  TAP  to  the  Bulgarian  system.  The 
increase in IGB capacity is listed in Annex 3 of the 
RePowerEU action plan. 

for 

to 

reduce 

Greece  managed 
energy 
consumption  in  2022.  In  the  period  August 
2022-March 2023, Greece reduced its natural gas 
consumption  by  almost  22%.  compared  when 
compared  to  the  previous  5-years  average (57). 
Then, based on data from the power grid operator 
IPTO’s  monthly  reports,  Greece  appears  to  be  on 
the  right  path  to  achieving  its  electricity  energy-
saving  goals.  This  downward  trend  highlights  the 
efforts  being  made  by  consumers  to  keep  their 
energy  costs  down.  It  is  also  boosted  by  national 
measures  that  envisage  among  other  things 
further subsidies in residential electricity tariffs for 
households 
their  average  daily 
consumption by 15% compared to last year. 

reduce 

that 

(57)  EU countries agreed to reduce their gas demand by 15% 

compared to their average consumption in the past 5 years, 
between 1 August 2022 and 31 March 2023, with measures 
of their own choice.  

43 

 
 
                                                 
                                                 
 
 
Graph A7.1: Share of gas consumption per sector, 
2021 

Source: Eurostat 

Graph A7.2: Greece´s retail energy prices for 
industry (top) and households (bottom) 

(1) On electricity, the band consumption is DC for households 
and ID for industry 
(2) On gas, the band consumption is D2 for households and I4 
for industry 
Source: Eurostat 

Final  energy  prices  charged 
to  Greek 
consumers were significantly reduced thanks 
to  public  support  measures.  During  the  first 
half  of  2022,  retail  electricity  prices  for  the 
industry  in  Greece  were  higher  than  the  EU 
average  level.  By  contrast,  household  electricity 
prices (though increasing) were well below the EU 
average.  During  the  same  period,  household  gas 
prices  increased  above  the  EU  average,  but  more 

44 

thanks 

charged 

recently  reverted  to  the  EU  average  level.  Final 
consumers  were 
to  Greek 
prices 
significantly lowered, for instance by over 50% for 
residential  gas  customers  and  up  to  90%  for 
electricity 
to 
customers.  This  was 
supporting  measures  funded  primarily  by  the 
newly  established  Energy  Transition  Fund  and 
secondarily  by  the  state  budget  amounting  to 
around EUR 8 billion. In addition, Greece introduced 
a  retroactive  90%  windfall  profit  tax  on  energy 
companies.  The  proceeds  of  this  scheme  were 
used  to  provide  relief  to  energy  consumers. 
Despite  the  support  offered,  industry  and  low-
income  families  could  be  severely  impacted.  The 
latter  in  particular  could  find  it  even  harder  to 
cover  their  basic  needs  such  as  keeping  their 
find 
homes  adequately  warm  and 
themselves  at  higher  risk  of  falling  into  arrears 
with their energy bills (see Annex 8).  

could 

Greece  is  lagging  behind  on  certain  aspects 
related  to  the  electricity  market  that  could 
potentially  deprive  consumers  of  access  to 
more affordable energy and undermine their 
ability to participate in the energy transition. 
As shown in the latest report published by the EU 
Agency  for  the  Cooperation  of  Energy  Regulators 
(ACER) (58),  Greece  was  one  of  the  countries  with 
the  least  penetration  of  smart  meters  in  2021 
(only  3%  compared  to  the  EU  average  of  54%). 
Smart meters are a tool that enable consumers to 
actively  participate  in  the  market  and  support 
demand  response.  Along  with  demand  reduction, 
they  play  an  important  role  in  combating  the 
current crisis and the high energy prices faced by 
consumers, as highlighted by ACER (59).  The Greek 
network  operator  HEDNO  plans  to  roll  out  some 
7.5  million  smart  meters  across  the  country  by 
2030, replacing standard meters; a tender for this 
project  is  currently  ongoing (60).  Public  Power 
Cooperation's market share in the retail market is 
presently  around  60% (61),  with 
low  voltage 
customers accounting for 65% of the share. This is 
still  well  above  the  50%  target  mandated  by 
national legislation. To further bolster competition 
and  encourage  investment  in  the  sector,  the 

(58)  ACER/CEER (2022), Annual Report on the Results of 

Monitoring the Internal Electricity and Natural Gas Markets in 
2021. 

(59)  Idem. 

(60)  HEDNO communication. 

(61)  IPTO Monthly Energy Report, January 2023 

72.8%14.9%0.4%2.6%9.2%0.1%EnergyIndustryTransportServices and public sectorHouseholdsAgriculture, forestry andfishery050100150200250300€/MWhGas GreeceGas EUElectricity GreeceElectricity EU050100150200250300€/MWhGas GreeceGas EUElectricity GreeceElectricity EU 
     
 
  
                                                 
storage 

energy  markets  could  be  strengthened  by 
increasing  the  use  of  renewables  and  making 
available 
response 
and 
for  market  participants.  Such 
programmes 
measures  would  have  a  positive 
impact  on 
households  and  businesses.  Indeed,  Greece  has 
already 
its 
wholesale market  

introduced  demand 

response 

demand 

in 

includes 

to  support 

In  recent  years,  Greece  has  taken  important 
steps 
the  deployment  of 
renewable  energy.  Renewables  consumption  in 
Greece  reached  21.9%  in  2021,  compared  to 
21.7% in 2020 and 19.6% in 2019 (62). In 2022, it 
is  estimated  that  Greece  had  almost  1.7  GW  of 
new installed RES capacity driven primarily by the 
installation  of  an  additional  1.3  GW  of  solar 
energy and 230 MW of onshore wind (63). Greece’s 
recovery  and 
the 
resilience  plan 
installation  of  3GW  of  new  renewable  energy 
(wind  and  solar)  by  the  end  of  2025  and  the 
installation  of  storage  systems  (1380MW)  to 
facilitate the integration of new renewable energy 
capacity.  In  2022,  Greece  has  taken  steps  to 
streamline the licensing framework for renewable 
energy,  but  further  streamlining  of  the  permitting 
procedures  as  well  as  clear  remuneration  system 
for storage are needed in order to further facilitate 
the RES deployment. Greece also recently adopted 
a  law  laying  down,  for  the  first  time,  the  legal 
framework  for  the  development  of  offshore  wind 
farms  as  well  as  to  establishing  a  framework  for 
Guarantees  of  Origin.  In  addition,  Greece  has 
adopted 
the 
deployment  of  smaller-scale  RES-E  systems  in 
homes  and  communities.  For  example,  net 
metering support schemes have been put in place 
for  prosumers (64).  Greece  shows  potential  for 
becoming a strong market for the use of PPAs and 
will need to take regulatory and market measures 
in  order  to  support  their  use.  The  electricity 
interconnection of the Cyclades and the necessary 
upgrade  of  the  overall  electricity  network  will 
further facilitate the penetration of renewables in 
the Greek electricity mix. 

some  measures 

support 

to 

In  order  for  Greece  to  achieve  its  climate 
targets and in line with the REPowerEU Plan, 
there is still room for further expansion in a 

(62)  Eurostat – SHARES. 

(63)  IRENA, Renewable capacity statistics 2023 

number  of  key  sectors.  Hydrogen  is  considered 
an  important  field  and  promising  solution  in 
Greece,  but  is  currently  in  the  early  stages  of 
development.  The  government  has  unveiled  the 
National  Strategy 
for  Hydrogen  and  Other 
Renewable  Gases.  On  its  implementation,  the 
project 
the 
implementation of the National Hydrogen Strategy 
was launched in early 2023. The strategy will also 
help  promote  the  deployment  of  biomethane  in 
Greece. 

technical  support 

involving 

for 

In 

On  energy  efficiency,  Greece  has  been 
successfully  using 
the  Recovery  and 
Resilience Facility to fund the expansion of a 
large-scale  programme  to  make  residential 
the 
buildings  more  energy-efficient. 
meantime,  Greece 
is  working  on  a  similar 
programme  for  public  buildings  as  well  as  the 
wider  introduction  of  energy  services  and  the 
successful  continuation  of  the  Greek  Energy 
Scheme (65).  However, 
Efficiency  Obligation 
mobilization of additional private funds for energy 
renovations,  the  continuation  of  actions  that  will 
mitigate  energy  poverty  and  the  creation  of  a 
functioning  market  for  energy  services  remain 
among  the  challenges  that  Greece  should  tackle. 
Regarding market surveillance activities, Greece is 
carrying  out  a  low  number  of  checks  on  products 
covered  by  ecodesing  and  energy  labelling.  This 
generates 
the 
enforcement  of  market  surveillance  obligations 
and  the  compliance  levels  of  the  concerned 
products,  and  therefore  missed  energy  and  CO2 
savings (66). 

concerns  with 

respect 

to 

Greece is one of the Member States that has 
increased  its  innovation  performance  the 
most in 2015-2021, from 48.7/100 to 56.2/100, 
above the EU average rate of improvement during 
the  same  period.  Still,  the  total  R&I  expenditure 
was 0.94% of the GDP in 2020 which is below the 
EU  average  of  2.19% (67).  Concerning  the  quality 
of  the  scientific  production  in  the  clean  energy 
technology sector (CET), Greece, with 17%, comes 
fourth  within  the  EU  countries  (EU  average  12%) 
and  one  of  the    four  (Luxembourg,  Denmark,  the 

(65)  https://ypen.gov.gr/energeia/energeiaki-exoikonomisi/metra-

politikis/kathestota/ 

(66)  The internet-supported information and communication 
system for the pan-European market surveillance. 

(64)  COM (2022) 639 final. 

(67)  European Innovation Scoreboard 2021 

45 

 
                                                 
                                                 
Netherlands and Greece) ranking amongst the top 
10  global  in  2018.  The  average  of  scientific 
publications related to CETs in Greece in the period 
2015–2020  was    847  (EU27  30.160).  Greece’s 
share  of  highly  cited  publications  in  the  total  of 
publications  related  to  clean  energy  technologies 
was  18,  65%  in  2018  (EU27  13,  27%).  The 
average  number  of  CET  inventions  per  year  the 
period 2015-2018 was 7 (EU27 26.259). 

The  Recovery  and  Resilience  Plan  “Greece 
2.0” dedicates 37, 5% of grants and loans to 
green objectives. Overall, EUR 6.2 billion (3% of 
2021  GDP)  are  budgeted  for  the  green  transition 
which are expected to mobilize a total of EUR 11.6 
billion  (6%  of  2021  GDP) (68).  The  estimated 
exports of products related to CETs for Greece was 
EUR  321  million  (EU27  35.528  million)  in  2019 
with  increasing  trend  since  2015.  The  Clean 
Energy  Innovation  Index  score  for  Greece  was 
0,326  (EU27  0,429) in 2018 (69). Venture capital 
investments  in  climate  tech  start-ups  and  scale-
ups in Greece in 2020 was EUR 4,5 million, (0,8% 
of EU27). Greece has experienced no growth of job 
ads in energy supply sector, which is also relevant 
for the clean energy deployment. 

(68) OECD Economic survey Greece, January2023 

(69)  Tracking research and innovation performance in the clean 
energy sector, European Commission, October 2022 

46 

 
 
                                                 
 
Table A7.1: Selected indicators on energy mix 

(1) The ranking of the main supliers is based on the latest available figures (for 2021) 
(2) includes FSRU 
(3) Venture Capital investments include Venture Capital deals (all stages) and Private Equity Growth/Expansion 
deals (for companies that have previously been part of the portfolio of a VC investment firm). 

Sources: Eurostat, Gas Infrastructure Europe (Storage and LNG Transparency Platform), JRC SETIS (2022), JRC elaboration based 
on PitchBook data (06/2022) 

47 

EU20182019202020212018201920202021Import Dependency [%] 71%74%81%74%58%61%57%56%of Solid fossil fuels 5%6%10%10%44%44%36%37%of Oil and petroleum products 98%96%106%93%95%97%97%92%of Natural Gas 101%99%101%99%83%90%84%83%Dependency from Russian Fossil Fuels [%]of Hard Coal89%89%87%96%40%44%49%47%of Crude Oil 11%10%18%13%30%27%26%25%of Natural Gas 66%32%39%41%40%40%38%41%20152016201720182019202020212022Gross Electricity Production (GWh)51,87454,43955,26653,26348,62648,25254,715-Combustible Fuels37,20339,79841,69837,41232,88031,05533,020-Nuclear0000000-Hydro6,1505,5654,0405,7604,0513,4405,961-Wind4,6215,1465,5376,3007,2669,31010,483-Solar 3,9003,9303,9913,7914,4294,4475,251-Geothermal 0000000-Other Sources0000000-Net Imports of Electricity (GWh)9,6088,7966,2376,2789,9448,8643,684-   As a % of electricity available for final consumption 18%16%11%12%19%18%7% -Electricity Interconnection (%)--10.60%9.70%9.8%9.9%6.3%6.3%20152016201720182019202020212022Gas Consumption (in bcm)3.24.14.94.95.35.86.55.6Gas Imports - by type (in bcm)3.84.96.45.98.08.98.7-Gas imports - pipeline3.24.15.04.95.25.96.4-Gas imports - LNG0.60.81.51.02.83.02.2-Gas Imports - by main source supplier (in bcm) (1)Russia1.92.62.93.21.72.32.6-United States0.00.00.00.20.53.02.3-Azerbaijan0.00.00.00.00.00.01.2-Algeria0.71.42.51.71.10.51.0-Others1.10.81.10.84.83.11.6-2019202020212022LNG TerminalsNumber of LNG Terminals (2)1111LNG Storage capacity (m3 LNG)225,000225,000225,000225,000Underground StorageNumber of storage facilities0000Operational Storage Capacity (bcm)00002019202020212022VC investments in climate tech start-ups and scale-ups (EUR Mln) (3)0.14.50.0n.a.as a % of total VC investments in Greece0.1%0.8%0.0%n.a.Research & Innovation spending in Energy Union R&i priorites Public R&I (EUR mln)102.184.9n.a.n.a.Public R&I (EUR mln)0.008%0.007%n.a.n.a.Private R&I (EUR mln)329.8n.a.n.a.n.a.Private R&I (% GDP)0.03%n.a.n.a.n.a.CLEAN ENERGYELECTRICITY-GREECEENERGY DEPENDENCEDIVERSIFICATION OF GAS SUPPLIES 
 
   
 
 
ANNEX 8: FAIR TRANSITION TO CLIMATE NEUTRALITY 

This  Annex  monitors  Greece’s  progress  in 
ensuring  a  fair  transition  towards  climate 
neutrality  and  environmental  sustainability, 
notably  for  workers  and  households 
in 
vulnerable situations. The number of jobs in the 
green  economy  has  risen,  but  further  efforts  are 
needed to support this trend. The provision of skills 
relevant for the green transition will contribute to 
the  effective  implementation  of  REPowerEU  in 
Greece, 
Council 
Recommendation. (70)  Greece’s 
recovery  and 
resilience  plan  (RRP)  outlines  crucial  reforms  and 
transition, 
investment 
complementing  the  territorial  just  transition  plans 
and  actions  by  the  European  Social  Fund  Plus 
(ESF+). 

line  with 

green 

also 

fair 

the 

for 

in 

a 

they 

lacked 

(latest  available  data),  though  this  was  still  well 
below the EU average for that year. In 2022, 63% 
of  Greek  citizens  believed 
the 
necessary  skills  to  contribute  to  the  green 
transition  (vs  38%  on  average  in  the  EU) (72)  (see 
Annex  14  and  15).  In  this  context,  the  Just 
Transition programme for Greece (worth EUR 1.63 
billion)  will  devote  20.4%  of  its  funding  to 
upskilling  and  reskilling  for  workers  in  regions 
most affected by the transition, in synergy with an 
enhanced  offer  of  training  at  a  national  level, 
including in-work training envisaged in the RRP. In 
Greece,  6.2%  of  ESF+  funding  helps  promote 
jobs,  as  well  as  create 
green  skills  and 
employment  opportunities 
the  workers 
affected by the green transition. 

for 

(GHG)  emissions 

Employment 
in  Greece’s  sectors  most 
affected  by  the  green  transition  presents 
challenges,  while  workers 
in  declining 
activities need active support. The greenhouse 
gas 
intensity  of  Greece’s 
workforce  declined  from  20.8  to  16.1  tonnes  per 
worker  between  2015  and  2021,  but  it  is  still 
above the EU average of 13.7 tonnes in 2021 (see 
Graph A8.1  and  Table A8.1).  Employment 
in 
Greece’s  energy-intensive  industries  (EII)  reached 
1.2% of total employment in 2021 (1.1% in 2020, 
compared  to  3.0%  on  average  in  the  EU)  and 
remained  broadly  stable  compared  to  2015 
(1.1%).  Employment  in  mining  and  quarrying 
decreased by 4.1% since 2015 (to around 10 000 
workers).  The  job  vacancy  rate  in  construction,  a 
key sector for delivering on the green transition, is 
higher  than  the  EU  average  (6.7%  v  4.0%  in  the 
EU  in  2022) (71).  Following  the  strong  labour 
market  changes,  there  is  a  need  to  provide 
targeted  employment  support  based  on  the 
individual  needs  of  each  stakeholder  and  in  line 
with the transition plans and labour market needs. 

reskilling  are  key 

Upskilling  and 
for 
supporting  jobs  in  transforming  sectors  and 
ensuring  a  smooth  and  socially 
fair 
transition.  In  the  energy-intensive  industries, 
workers’  participation  in  education  and  training 
increased  from  3.5%  in  2017  to  4.8%  in  2018 

Graph A8.1: Fair transition challenges in Greece 

Source: Eurostat, EMPL-JRC GD-AMEDI/AMEDI+ projects and 
World Inequality Database (see Table A8.1). 

The  spike  in  energy  prices  can  worsen  the 
progress achieved by Greece in recent years. 
The  share  of  the  total  population  unable  to  keep 
their  homes  adequately  warm  declined  from 
29.2% in 2015 to 17.1% in 2020, but it increased 
slightly to 17.5% in 2021 (still above EU  average 
of 6.9%) (73). The share of the population at risk of 
poverty  (AROP)  unable  to  keep  their  homes 
adequately  warm decreased  from  50.9% in  2015 
to  36.8%  in  2021  (above  the  EU  average  at 
16.4%). All income groups were affected in 2021, 
including  30.9%  of  low-income  households  (in 
deciles  1-4)  (vs  13.4%  in  the  EU).  Before  the 
energy  price  hikes,  an  estimated  26.7%  of  the 
total  population  and  51.9%  of  the  (expenditure-

(70)  Council Recommendation of 16 June 2022 on ensuring a fair 
transition towards climate neutrality (2022/C 243/04) covers 
employment, skills, tax-benefit and social protection 
systems, essential services, and housing. 

(71)  Eurostat (JVS_A_RATE_R2) 

(72)  Special Eurobarometer 527. Fairness perceptions of the 

green transition (May – June 2022). 

(73)  Energy poverty is a multi-dimensional concept. The indicator 
used focuses on an outcome of energy poverty. Further 
indicators are available at the Energy Poverty Advisory Hub. 

48 

00.511.522.533.544.5GHG per workerEmployment EIIEducation &training EIIEnergy povertyTransportpoverty(proxy)CarboninequalityEU LatestEL Latest (vs EU Latest)EL 2015 (vs EU Latest) 
 
                                                 
  
                                                 
 
Table A8.1: Key indicators for a fair transition in Greece 

Source: Eurostat (env_ac_ainah_r2, nama_10_a64_e, ilc_mdes01), EU Labour Force Survey (break in time series in 2021), EMPL-
JRC GD-AMEDI/AMEDI+ projects and World Inequality Database (WID). 

vs  55%  in  the  EU)  and  quality (43 vs  60% in  the 
EU).  As  regards  these  perceptions,  rural  areas  in 
Greece  perform  better  than  urban  areas,  and 
better  in  terms  of  affordability  and  quality  when 
compared  to  rural  areas  in  the  EU  overall.  The 
average  carbon  footprint  of  the  top  10%  of 
emitters is about 4.5 times higher than that of the 
bottom 50% (see Graph A8.1). The Greek region of 
Western  Macedonia  ranks  among  the  worst 
performers in terms of air quality in the EU, which 
calls for further efforts to protect citizens from air 
pollution  and  reduce  environmental  inequalities, 
with  a  specific  focus  on  the  most  vulnerable.  In 
Greece, the average levels of air pollution in 2020 
stood  above  the  EU  average  (14.5  vs  11.2  µg/m 
PM2.5), almost all regions exposed to critical levels 
of  air  pollution, (76)  leading  to  significant  health 
impacts,  in  particular  on  vulnerable  groups,  and 
8 843 premature deaths annually. (77) 

had 

AROP 

based) 
residential 
population 
expenditure  budget  shares  on  electricity,  gas,  and 
other  fuels (74)  above  10%  of  their  household 
budget  (above  the  EU  average  of  26.9%  and 
48.2%, respectively). 

the 

The  increased  energy  prices  in  2021-2023 
risk  negatively  affecting  household  incomes, 
notably  for  low-income  groups.  As  a  result  of 
energy  price  changes  during  the  August  2021  to 
January  2023  period  relative  to  the  18  months 
prior (cf. Annex 7), in the absence of policy support 
and  behavioural 
fraction  of 
responses, 
individuals  living  in  households  spending  more 
than  10%  of  their  budget  on  energy  would  have 
increased  by  22.2 pps  for  the  whole  population 
and  by  26.5 pps  among  the  (expenditure-based) 
AROP population, which constitute increases higher 
than  average  impacts  in  the  EU  (by  16.4 pps  and 
19.1 pps, 
of 
expenditure  of  residential  energy  of  low  and 
lower-middle income groups would have increased 
the  most,  in  particular  for  electricity  compared  to 
the  EU-wide  effects  (see  Graph A8.2).  Among  the 
(expenditure-based) AROP population, the share of 
individuals living in households with budget shares 
for  private  transport  fuels  (73)  above  6%  would 
have  increased  less than  the  EU  average  (4.9 pps 
vs  5.3  pps  in  the  EU),  reaching  41.9%  in  January 
2023 (vs 37.1% in the EU)  due to the increase in 
transport fuel prices.  

respectively). (75) 

shares 

The 

Access to public transport is perceived to be 
greater  in  rural  areas,  while  some  regions 
rank  high  in  terms  of  air  pollution.  While 
citizens  perceive  public  transport  to  be  relatively 
affordable  (51%  vs  54%  in  the  EU),  Greece 
performs worst on perceptions of availability (39% 

(74)  Products defined according to the European Classification of 
Individual Consumption according to Purpose (ECOICOP): 
CP045. 

(75)  EMPL-JRC GD-AMEDI/AMEDI+ ; see details in the related 

(76)  Two times higher than the recommendations in the WHO Air 

Quality Guidelines (annual exposure of 5µg/m3) 

technical brief. 

(77)  EEA- Air Quality Health Risk Assessment 

49 

IndicatorDescriptionEL 2015EL LatestEU LatestGHG per workerGreenhouse gas emissions per worker - CO2 equivalent tonnes20.816.1 (2021)13.7 (2021)Employment EIIEmployment share in energy-intensive industries, including mining and quarrying (NACE B), chemicals (C20), minerals (C23), metals (C24), automotive (C29) - %1.11.1 (2020)3 (2020)Education & training EIIAdult participation in education and training (last 4 weeks) in energy-intensive industries - %4.8 (2018)10.4 (2022)Energy povertyShare of the total population living in a household unable to keep its home adequately warm - %29.217.5 (2021)6.9 (2021)Transport poverty (proxy)Estimated share of the AROP population that spends over 6% of expenditure on fuels for personal transport - %3741.9 (2023)37.1 (2023)Carbon inequalityAverage emissions per capita of top 10% of emitters vs bottom 50% of emitters4.64.3 (2020)5 (2020) 
                                                 
 
                                                 
 
  
 
Graph A8.2: Distributional impacts of energy prices 
due to rising energy expenditure (2021-2023) 

Mean change of energy expenditure as a percentage (%) of 
total expenditure per income decile (D) due to observed price 
changes (August 2021 – January 2023 relative to the 18 
months prior), excl. policy support and behavioural responses. 
Source: EMPL-JRC GD-AMEDI/AMEDI+ projects, based on 
Household Budget Survey 2015 and Eurostat inflation data 
for CP0451 and CP0452. 

50 

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%ElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasD1D2D3D4D5D6D7D8D9D10EL GasEL ElectricityEU GasEU Electricity 
   
PRODUCTIVITY 
ANNEX 9: RESOURCE PRODUCTIVITY, EFFICIENCY AND CIRCULARITY 

The  circular  economy  transition  is  key  to 
climate  and 
delivering  on 
the  EU’s 
environmental  goals  and  provides 
large 
socio-economic  benefits. It  spurs  job  growth, 
innovation  and  competitiveness  and 
fosters 
resilience  and  resource  security.  The  circularity 
transition  of  industry,  the  built  environment  and 
agri-food  can  generate  significant  environmental 
improvements (see Annex 6), as they rank among 
the most resource-intensive systems. 

Greece’s  circular  economy  transition 
is 
insufficient  and  needs  accelerating  to  meet 
the EU’s circular economy goals. The EU’s new 
circular  economy  action  plan  (CEAP)  aims  at 
doubling  circular  material  use  by  2030  vs  2020. 
Greece’s  circular  material  use  stood  at  2.3%  in 
2016  and  at  3.4%  in  2021,  far  below  the  EU 
average  of  11.7%  despite  the  increase  in  recent 
years.  The  CEAP  also  aims 
to  significantly 
decrease  the  EU’s  material  footprint.  Greece’s 
material  footprint  (11.1%)  was  below  the  2020 
labour  market 
(13.7%).  The 
EU-27  average 
benefits  of  the  circular  transition  remain  limited, 
with  a  decrease  in  terms  of  direct  circular  jobs 
since  2016.  As  regards  health  and  safety  in 
circular jobs, fatal accidents in waste management 
and  materials  recovery  are  above  the  average  of 
all economic sectors but below the EU  average in 
Greece (78). 

Greece  recently  adopted  new  policies  to 
address  circular  economy  challenges,  but 
more measures are needed. In November 2021 
Greece  approved  its  national  circular  economy 
action  plan  (CEAP)  for  the  implementation  period 
2021-2025,  with  a  corresponding 
roadmap 
approved by the Council of Ministers. Greece’s new 
national  waste  management  plan  (2020)  and  the 
regional  waste  management  plans  are  currently 
under  revision.  The  Greek  RRP  includes  reforms 
aiming  at  setting  up  a  national  waste  regulatory 
authority;  reforming  the  regional  and  local  waste 
management  bodies;  introducing  sound  costing 
and  pricing  policies  in  line  with  the  ’pay  as  you 
’polluter  pays’  principles;  and 
throw’  and 
establishing  a  Water  Regulatory  Authority, 

(78)  Eurostat [HSW_N2_02] for NACE Rev. 2 sector E38; 2.88 

fatal accidents p. 100 000 employed in 2018-2020 vs 0.92 
for all sectors in EL; 6.33 in the EU-27 for sector E38 

responsible for the rational management of water 
resources. 

Graph A9.1: Trend in material use 

Source: Eurostat 

Graph A9.2: Treatment of municipal waste 

Source: Eurostat; 2020 data unavailable 

The  treatment  of  municipal  waste  has  been 
progressing at a slow pace since 2016. Greece 
missed  the  EU  target  for  recycling  50%  of 
municipal  waste  by  2020.  Greece  is  at  risk  of 
missing  the  2025  recycling  targets  both  for 
municipal  and  for  packaging  waste.  77.7%  of 
Greece’s  municipal  waste  was  still  landfilled  in 
2019,  significantly  more  than  the  EU  average 

51 

0.020.040.060.080.0100.0120.0140.0160.00.02.04.06.08.010.012.014.016.0201620172018201920202021kg/capitatonnes/capitaMaterial footprint Greece (tonnes/capita)Material footprint EU-27 (tonnes/capita)Trade in recyclable raw materials Greece (imports extra EU, kg/capita)Trade in recyclable raw materials EU-27 (imports extra EU, kg/capita)498504515524010020030040050060020162017201820192020Kg per capita Difference waste generated/treatmentLandfill/disposalTotal incineration (including energy recovery)Composting and digestionMaterial recyclingEU-27 
 
 
                                                 
          
 
   
 
(23%  in  2019).  Illegal  or  sub-standard  landfilling 
is still widespread. 

of  building  new  ones,  as  well  as  increasing  the 
share of secondary raw materials in construction.  

The industrial system is increasingly circular. 
The  economy,  particularly  industry,  is  close  to 
resource 
the  EU  average  with  a 
reaching 
productivity of 2.1 purchasing power standard per 
kilogramme  vs  2.3  for  the  EU,  steadily  increasing 
Greece’s  resilience  (see  Annex  5).  There  is  still 
significant potential to boost repair, reuse and the 
use of secondary raw materials, particularly taking 
into  account  that  Greece’s  recyclable  material 
import dependency is almost twice as high as the 
EU  average  (43.4  vs  22.9  in  2021).  Existing 
policies provide positive examples  and need to be 
scaled  up.  The  new  national  circular  economy 
action  plan  aims  at  increasing  the  environmental 
performance of industrial processes and industrial 
symbiosis.  Legislative  measures  have  been 
introduced  to  promote  the  circularity  of  products, 
and 
especially 
4819/2021). 

(Laws  4736/2020 

plastics 

The  built  environment  system  continues  to 
resources 
the  depletion  of 
exacerbate 
despite  recent  improvements.  The  recovery 
rate  of  construction  and  demolition  waste  has 
increased since 2016 and is above the EU average 
(100%  vs  89%).  While  Greece’s  recovery  and 
resilience  plan  focuses  on  energy  efficiency  in 
residential buildings, there is scope for renovating 
existing  buildings  and  improving  their  use instead 

The  agri-food  system  has  yet  to  design  out 
food  waste  and  efficiently  manage  water 
resources.  Greece’s  composting  and  anaerobic 
digestion  per  head  has  increased  since  2016  but 
remained well below the EU average in 2019 (last 
data  available)  at  26  kg  per  head  vs  100  kg  for 
the  EU-27  in  2021.  Several  initiatives  of  the 
national  CEAP  are  being  implemented  to  advance 
circularity at the national level, such as drafting a 
food-waste  prevention  programme  as  part  of  the 
2030 national waste prevention programme.  

There remains a financing gap in the circular 
including  waste  management.  
economy, 
Additional  investments  will  be  required  to 
address  growing  needs.  The  financing  gap  was 
estimated  at  EUR  472  million  per  year  between 
2014  and  2020.  Over  this  period,  investment 
needs  were  estimated  to  be  at  least  EUR  977 
million  per  year,  while  investment  baselines  were 
EUR 505 million per year (see Annex 6). Greece is 
already  using  funds  from  the  ERDF,  but  further 
investments  are  needed, 
including  from  the 
national budget. The new waste management law 
provides  for  the  introduction  of  a  landfill  tax,  the 
proceeds  of  which  will  be  used  for  recycling 
projects,  but  the  enforcement  of  the  tax  faces 
delays and its implementation is at risk. 

Table A9.1: Overall and systemic indicators on circularity 

(1) Persons employed in the circular economy only tracks direct jobs in selected sub-sectors of NACE codes E, C, G and S; (2) the 
circular material use rate measures the share of material recovered and fed back into the economy in overall material use; (3) the 
recovery rate of construction and demolition waste includes waste which is prepared for reuse, recycled or subject to material 
recovery, including through backfilling operations; (4) soil sealing: 2016 column refers to 2015 data; (5) food waste includes 
primary production, processing and manufacturing, retail and distribution, restaurants and food services, and households.  
Source: Eurostat, European Environment Agency 

52 

AREA201620172018201920202021EU-27 Latest year EU-27Overall state of the circular economyMaterial footprint (tonnes/capita)13.013.112.112.311.1-13.72020YoY growth in persons employed in the circular economy (%)112.7-6.04.2-2.0--2.92019Water exploitation index plus (WEI+) (%)14.819.611.813.3--3.62019IndustryResource productivity (purchasing power standard (PPS) per kilogram)1.51.61.61.81.92.12.32021Circular material use rate (%)22.32.83.34.14.43.411.72021Recycling rate (% of municipal waste)17.218.920.121.0--49.62021Built environmentRecovery rate from construction and demolition waste (%)388.0-97.0-100.0-89.02020Soil sealing index (base year = 2006)4103.7-109.5---108.32018Agri-foodFood waste (kg per capita)5----191.0-131.02020Composting and digestion (kg per capita)17.021.026.026.0--100.02021 
 
             
 
ANNEX 10: DIGITAL TRANSFORMATION 

transformation  by  2030, 

Digital  transformation  is  key  to  ensuring  a 
resilient and competitive economy. In line with 
the  Digital  Decade  Policy  Programme,  and  in 
particular  with  the  targets  in  that  Programme  for 
digital 
this  Annex 
describes  Greece’s  performance  on  digital  skills, 
digital 
the 
digitalisation  of  businesses  and  public  services. 
Where relevant, it makes reference to progress on 
implementing  the  Recovery  and  Resilience  Plan 
(RRP).  Greece  allocates  23%  of  its  total  RRP 
budget to digital (EUR 7.1 billion) (79). 

infrastructure/connectivity 

and 

The  Digital  Decade  Policy  Programme  sets 
out a pathway for Europe’s successful digital 
transformation  by  2030.  The  Programme 
provides  a  framework  for  assessing  the  EU’s  and 
Member States’ digital transformation, notably via 
the  Digital  Economy  and  Society  Index  (DESI).  It 
also  provides  a  way  for  the  EU  and  its  Member 
States  to  work  together,  including  via  multi-
country  projects,  to  accelerate  progress  towards 
the  Digital  Decade  digital  targets  and  general 
objectives (80).  More  generally,  several  aspects  of 
digital  transformation  are  particularly  relevant  in 
the current context. In 2023, the European Year of 
Skills, building the appropriate skillset to make full 
use of the opportunities that digital transformation 
offers  is  a  priority.  A  digitally  skilled  population 
increases the development and adoption of digital 
technologies  and  leads  to  productivity  gains (81). 
Digital  technologies,  infrastructure  and  tools  all 
play  a  role  in  the  fundamental  transformation 
needed to adapt the energy system to the current 
structural challenges (82).  

Stepping  up  work  to  develop  digital  skills 
remains a priority for Greece. Just over half of 
the population has at least basic digital skills, very 

(79)  The share of financial allocations that contribute to digital 
objectives has been calculated using Annex VII of the RRF 
Regulation. 

(80)  The Digital Decade targets as measured by DESI indicators 
and complementary data sources are integrated to the 
extent currently available and/or considered particularly 
relevant in the MS-specific context.  

(81)  See for example OECD (2019): OECD Economic Outlook, 

Digitalisation and productivity: A story of complementarities, 
OECD Economic Outlook, Volume 2019 Issue 1 | OECD 
iLibrary (oecd-ilibrary.org). 

(82)  The need and possible actions for a digitalisation of the 
energy system are laid out in the Communication 
‘Digitalisation the energy system – EU action plan’ 
(COM(2022)552. 

53 

close  to  the  EU  average.  The  share  of  individuals 
employed  as  ICT  specialists  remains  very  low 
compared to the EU average, but the proportion of 
women  among  ICT  specialists  is  above  the  EU 
average.  Greece  has  begun  implementing  RRP 
measures that are expected to help develop digital 
skills in the labour force; for example, a first wave 
of  digital  and  green  upskilling  programmes  was 
launched in July 2022. 

In  digital  infrastructure/connectivity,  fixed 
very  high  capacity  network  (VHCN)  coverage 
continue  to  grow.  But  despite  significant 
progress, the percentage of households covered by 
VHCNs  in  2022  remains  low  compared  to  the  EU 
average. By contrast, overall 5G coverage exceeds 
the  EU  average  showing  a  substantial  increase 
since  2021.  On  5G  coverage  on  the  3.4-3.8  GHz 
spectrum  band,  essential  for  enabling  advanced 
applications  requiring  large  spectrum  bandwidth, 
Greece  scores  slightly  below  the  EU  average. 
Greece is a frontrunner in making available the 5G 
pioneer bands, with a very high score (99%) in this 
indicator (EU average 56%).  

technologies  are 

technologies,  enterprises 

Digital 
slowly  being 
integrated  into  business  activities.  Only  41% 
of SMEs have a basic level of digital intensity, still 
far  from  the  EU  average.  On  the  adoption  of 
advanced  digital 
in 
Greece  are  almost  at  the  EU  average  for  the 
adoption  of  big  data,  though  they  are  below  the 
EU  average  for  the  use  of  cloud  computing 
services  and  artificial  intelligence.  Under  the  RRP, 
in  2022,  Greece  launched  two  projects  which  are 
expected  to  contribute  to  the  digital  transition  of 
businesses:  one  on  the  digital  transformation  of 
businesses  and  one 
smart 
manufacturing by SMEs. 

to  accelerate 

show  a 

continues 

Greece 
strong 
to 
commitment to the digital transformation of 
its public services and has made substantial 
progress  in  moving  public  services  online. 
However, the  results  are not  yet  fully  reflected  in 
the 
indicators  on  digital  public  services  for 
businesses  and  for  citizens,  which  remain  below 
the EU average, partially because of a still limited 
number  of 
services  available 
compared  to  other  Member  States.  In  2022,  the 
percentage  of  e-Government  users  in  Greece  is 
higher than the EU average (81% vs 74%). In July 
2022  a  new  application,  Gov.gr  Wallet,  was 
launched, allowing digital documents (e.g. national 
identity cards, driving licences and disability cards) 

cross-border 

 
 
                                                 
 
to be fully equivalent to paper documents for any 
legal use within the Greek territory, but not cross-
border.  Greece  has  not  yet  notified  an  electronic 
identification 
(eID)  scheme  under  the  eIDAS 
Regulation. In terms of access to electronic health 
records,  Greece  scores  below  the  EU  average  in 
the  composite 
In  2022,  a  mobile 
application,  Myhealth,  has  been  released,  but 
although  80-100%  of  citizens  can  already  access 
the online service to their health data, the scope of 
data accessible is somewhat limited. 

indicator. 

Table A10.1: Key Digital Decade targets monitored by DESI indicators 

(1) The 20 million target represents about 10% of total employment. 
(2) The Fibre to the Premises coverage indicator is included separately as its evaluation will also be monitored separately and 
taken into consideration when interpreting VHCN coverage data in the Digital Decade. 
(3) At least 75 % of Union enterprises have taken up one or more of the following, in line with their business operations: (i) cloud 
computing services; (ii) big data; (iii) artificial intelligence.  

Source: Digital Economy and Society Index 

54 

EUDigital Decade target by 2030 DESI 2021DESI 2022DESI 2023DESI 2023(EU)Digital skillsAt least basic digital skillsNA52%52%54%80%% individuals2021202120212030ICT specialists (1)2.1%2.4%2.4%4.5%20 million% individuals in employment aged 15-7420202021202120212030Digital infrastructure/connectivityFixed Very High Capacity Network (VHCN) coverage10%20%28%73%100%% households20202021202220222030Fibre to the Premises (FTTP) coverage (2)10%20%28%56%-% households20202021202220222030Overall 5G coverage0%66%86%81%100%% populated areas202020212022202220305G coverage on the 3.4-3.8 GHz spectrum bandNANA37%41%-% populated areas202220222030Digitalisation of businessesSMEs with at least a basic level of digital intensityNANA41%69%90%% SMEs202220222030Big data (3)13%13%13%14%75%% enterprises20202020202020202030Cloud (3)NA15%15%34%75%% enterprises2021202120212030Artificial Intelligence (3)NA3%3%8%75%% enterprises2021202120212030Digitalisation of public servicesDigital public services for citizensNA526577100Score (0 to 100)2021202220222030Digital public services for businessesNA487484100Score (0 to 100)2021202220222030Access to e-health recordsNANA6071100Score (0 to 100)202320232030Greece 
 
 
 
  
 
 
 
 
 
ANNEX 11: INNOVATION 

This  Annex  provides  a  general  overview  of  the 
performance  of  Greece’s  research  and  innovation 
system,  which  is  essential  for  delivering  the  twin 
green and digital transition. 

Greece  is  a  ‘moderate  innovation  performer’ 
with  continuous  performance  improvement 
and  a  clear  upward  trend.  According  to  the 
Innovation 
2022  edition  of 
Scoreboard (83),  the  country’s  overall  performance 
is slightly better than in 2021. It is still below the 
EU average (89.7%), but the gap is shrinking. 

the  European 

Graph A11.1: Innovation performance 2015-2022 

Source: European Innovation Scoreboard, 2022 

intensity (84)  was  1.45% 

in  2021, 
R&D 
significantly  below  the  European  average 
(2.26%) (85).  A  major  driver  behind  the  upward 
trend  in  R&D  intensity  in  recent  years  (9.5% 
compound  annual  growth  rate  from  2010  to 
2020),  has  been  the  strong  increases  in  public 
R&D expenditure (0.76% of GDP in 2021, which is 
also  the  EU  average).  However,  while  R&D 
increasing  share  of  private 
accounts  for  an 
investment,  its  share  continues  to  lag  markedly 
behind  the  EU  average  (0.69%,  compared  to  the 
EU average of 1.49% in 2021). The Greek recovery 
and  resilience  plan  (RRP)  aims  to  increase  public 
and  private 
(R&I) 
investment  through,  for  example,  investment  in 
research  centre  infrastructure  and  in  basic  and 
applied research. However, ensuring the long-term 

research  and 

innovation 

(83)  2022 European Innovation Scoreboard, Country profile: 

Greece https://ec.europa.eu/assets/rtd/eis/2022/ec_rtd_eis-
country-profile-el.pdf. The EIS provides a comparative 
analysis of innovation performance in EU countries, including 
the relative strengths and weaknesses of their national 
innovation systems (also compared to the EU average). 

sustainability  of  these  investments  is  a  key 
challenge (86). 

limited  demand 

Improvements  in  a  number  of  areas  would 
help  the  Greek  economy  to  fulfil 
its 
technological  and  innovation potential.  Greek 
firms  have  tended  to  gravitate  towards  low-
knowledge-intensive activities and to have limited 
capacity  to  absorb  innovative  and  techonological 
advances.  These  are  the  main  factors  that  have 
hampered  or  severely 
for 
specialised  knowledge (87).  Greek  small  and 
medium-sized  enterprises’  (SMEs’)  expenditure  on 
R&D  (BERD)  as  a  percentage  of  GDP  (0.26%  for 
2020) is somewhat below the EU average (0.34%). 
Venture capital availability (0.021%) is also on the 
low  side  and  below  the  EU  average  (0.074%  in 
2021). This is also reflected in terms of innovation 
outputs,  with  0.6  patent  applications  per  billion 
GDP  compared  to  the  EU  average  of  3.5  (for 
with 
to 
2019), 
commercialisation. The RRP includes investment to 
address 
innovation  uptake,  for  example  by 
supporting  applied  research  projects  and  SMEs 
‘Seal  of 
awarded  with 
Excellence’ quality label. 

the  Horizon  2020 

weaknesses 

pointing 

support 

knowledge 

Cooperation  between  public  research  bodies 
and  the  private  sector  is  insufficient  to 
effectively 
and 
technology  transfer.  The  number  of  public-
private  scientific  co-publications  as  a  percentage 
of  total  publications  was,  at  8.1%,  above  the  EU 
average (7.1%) in 2021, but still ranks Greece 17th 
amongst  Member  States.  Also,  public  expenditure 
on R&D financed by business enterprise (5.12% of 
total public expenditure of R&D in 2020) is lagging 
behind the EU average (7.45%). In the 2014-2020 
programming  period,  the  cohesion  policy  invested 
‘research-create-
EUR 606.5 million  under 
innovate’ scheme, aimed at strengthening the link 
between the public science sector and businesses. 
In  the  2021-2027  programming  period,  this 
scheme will continue, with an expected investment 
of  some  EUR 376 million,  complemented  by 
investment from the RRP. 

the 

(86)  Particularly considering that total Recovery and Resilience 

Facility funding for R&I amounted to 93% of Greece’s public 
R&D expenditure in 2020. 

(84)  Defined as gross domestic expenditure on R&D as a 

percentage of GDP 

(87)

http://www.gsrt.gr/Financing/Files/ProPeFiles15/Final_St

(85)  European benchmark target for R&D intensity: 3%. 

udy_InnoBarriers_September_2020.pdf. 

55 

626772778287929710210720152016201720182019202020212022EUEL 
 
     
                                                 
                                                 
 
 
the 

diffusion 

inequalities 

Strong  regional 
in  research 
of 
performance  affect 
innovation.  The  distribution  of  national  R&D 
expenditure  across  the  Greek  regions  is  uneven, 
with a high concentration in Attiki, which accounts 
for  61.1%  of  spending.  This  is  much  higher  than 
the  second-highest  region,  Kentriki  Makedonia, 
with  12.1%  of  national  expenditure.  Most  of  the 
remaining  11 regions  have  shares  below  4% (88). 
Institutions from Attiki also account for the biggest 
proportion of scientific publications in each region 
and in the country as a whole (53.1% of the total), 
in  Kentriki 
institutions  based 
followed  by 
Makedonia (22.0%).   

Investment   under   the RRP supports higher R&I 
uptake,  but  addressing  the  regional  disparity 
remains a key challenge. To this end, the cohesion 
policy  will  assist  Greece  to  redress  the  main 
regional  imbalances,  prioritising  investment  in 
sectors  with  regional  competitive  advantages, 
identified 
the  process  of  entrepreneurial 
discovery (EDP) in every region. 

in 

Table A11.1: Key innovation indicators 

(88)  https://metrics.ekt.gr/sites/metrics-ekt/files/ekdoseis-

pdf/2022/RDIGreekRegions_2021_el.pdf. 

(1) EU average for the latest available year or the year with the highest number of country data 
Source: Eurostat, OECD, DG JRC, Science-Metrix (Scopus database and EPO’s Patent Statistical database), Invest Europe 

56 

R&D intensity (GERD as % of GDP)0.600. 971.281.511.452.26Public expenditure on R&D as % of GDP0.360.640.680.800.760.76Business enterprise expenditure on R&D (BERD) as % of GDP0.240.320.590.700.691.49Business enterprise expenditure on R&D (BERD) performed by SMEs as % of GDP: 0.110.210.26: 0.34Scientific publications of the country within the top 10% most cited publications worldwide as % of total publications of the country 8.59.08.9::9.8Patent Cooperation Treaty patent applications per billion GDP (in PPS)0.40.50.6::3.5Public-private scientific co-publications as % of total publications5.37.08.48.58.17.1Public expenditure on R&D financed by business enterprise (national) as % of GDP:0.0400.0410.041:0.054Public expenditure on R&D financed by business enterprise (national) as % of total public expenditure on R&D:6.266.05.12:7.45New graduates in science & engineering per thousand pop. aged 25-3410.913.414.414.2:16.0Total public sector support for BERD as % of GDP:0.0490.085::0.194R&D tax incentives: foregone revenues as % of GDP0.0030.0050.008::0.100Share of environment-related patents in total patent applications filed under the Patent Cooperation Treaty (%)20.311.28.1::13.3Venture capital (market statistics) as % of GDP0.0080.0100.0130.0150.0210.074Employment in fast-growing enterprises in 50% most innovative sectors5.75.77.5::5.5Finance for innovation and economic renewalGreen innovation 2021EU average (1)2020Greece201020152019Key indicators Quality of the R&I systemAcademia-business cooperationHuman capital and skills availabilityPublic support for business enterprise expenditure on R&D (BERD) 
                                                 
  
 
 
   
 
ANNEX 12: INDUSTRY AND SINGLE MARKET 

13.7% in 2022, but still remains the lowest in the 
EU. Net public investment is less affected, in part 
due  to  the  implementation  of  investments  under 
the recovery and resilience plan (RRP). (See graph 
A12.3).  

Graph A12.2: Labour productivity by sectors 

Greece’s labour productivity recovered faster 
than  EU  average,  but  productivity  remains 
one  of  the  lowest  of  the  EU.  GDP  growth  was 
of 8.4% in 2021 against 5.4% for the EU (89)  and 
is  estimated  to  have  increased  by  5.9%  in  2022 
(compared  to  3.5%  for  the  EU).  Performance 
varied  at  sectoral 
level,  with  construction 
exhibiting  the  strongest  rebound  between  2021 
and  2022,  whilst  industry  productivity  declined 
over  the  said  period,  as  shown  in  graph  A12.2.  
However, despite the high percentage of the Greek 
population  with  a  tertiary  education  level (90), 
Greece’s productivity still only makes up 68.6% of 
EU average, placing the country on the lower half 
of performers (see graph A12.1). Ineffective labour 
market  regulation,  labour  skills  mismatches  (see 
annex  14),  low  government  effectiveness (91)  and,  
an insufficient level of digitalisation in both public 
administration and businesses negatively weigh on 
labour productivity (see annexes 10 and 13).   

Graph A12.1: Labour productivity, whole economy 

Source: Eurostat 

fuels 

(82% 

Greece’s  energy  mix  is  still  dependent  on 
in  2022) (93),  but 
fossil 
development  of  renewable  energy  resources 
is  above  average.  Following  the  war  in  Ukraine, 
and  the  energy  crisis,  postponment  of  the  lignite 
withdrawal  plan  was  allowed  in  order  to  help  the 
the  huge 
industries 
energy 
increases  in  gas  prices  and  its  possible  scarcity. 
While  the  potential  of  renewables  in  Greece  is 
important,  investment  in  R&D,  still  weak  (Table 
A11.1), appears as a crucial  element to boost the 
decarbonisation  of  industry.  (See  annexes  6  and 
7).  37.5%  of  the  RRP  is  dedicated  to  measures 
supporting climate objectives.   

intensive 

face 

Greece  could  further  benefit  from  the 
advantages  of  the  Single  Market.  Greece  is 
one  of  the  EU  countries  that  is  least  integrated 
into  the  Single  Market,  with  average  intra-EU 
imports and average intra-EU exports representing 
only  22.7%  of  GDP  in  2021  (against  an  EU 
average of 45.8%).  The Single  Market  Scoreboard 
indicates scope  for improvement (94).  The capacity 
of  the  Greek  public  administration  to  apply  EU 

(93)  Total energy supply by sources, IEA 

(94)  Single Market Scoreboard 2022. 

Source: European Commission, AMECO 

The  increase  in  industry  products’  prices (92) 
induced  by  the  supply  chain  disruptions  and 
impacting  net 
rises 
investment. Greece’s investment-to-GDP reached 

in  energy  prices 

is 

(89)  EC Spring 2023 forecast 

(90)  Population by educational attainment level, sex and NUTS 2 

regions (%) [EDAT_LFSE_04__custom_4425865] 

(91)  Greece ranks 55th in the latest IMD report 2022 regarding 

government efficiency. 

(92)  Producer prices in industry, total - monthly data 

[STS_INPP_M__custom_4422681] 

57 

709011008Q409Q410Q411Q412Q413Q414Q415Q416Q417Q418Q419Q420Q421Q422Q42008=100ELITFRPTEA1960708090100110120130201520162017201820192020202120222015 = 100Industry (exc. Construction)ManufacturingConstructionWholesale & retail tradeInfo & commFinancial and insurance activitiesProfess., adm. & support serv. 
 
   
                                                 
   
                                                 
 
 
most  relevant  source  of  financing.  Greece  made 
substantial  use  of  the  temporary  state  aid 
framework  during  COVID-19. (97) .  Some  Reforms 
under the RRP aim at facilitating access to finance, 
but  measurements  of  their  impact  are  yet  to 
come, (see also annex 18). 

Graph A12.3: Business and productivity drivers 

rules  on  the  Single  Market  could  be  improved  by 
staffing the national SOLVIT centre sufficiently. 

Greece 
is  making  significant  efforts  to 
improve  the  public  procurement  system, 
though  these  have  yet  to  bear  fruit.  Greece 
continues  to  underperform  in  public  procurement 
compared  to  EU  peers.  In  2022,  85%  of  public 
procurement  procedures  were  awarded  based  on 
the  cheapest  available  offer  and  Greece  had  the 
longest  award  decision-making  period  in  the  EU. 
Also, the number of single-bid procedures remains 
high  and  increased  in  recent  years  (48%  of 
contracts  awarded  in  2022,  vs  40%  in  2021). 
Further  efforts 
increase  competition  and 
improve  data  quality  would  benefit  EU-funded 
projects  and  public  investment  budget.  Greece  is 
expected to benefit from relevant RRP investment 
and  reforms,  including  the  professionalisation  of 
staff involved in public contracts, improvements in 
the  digital  tools  for  public  procurement processes 
and the implementation of a recently adopted new 
national public procurement strategy.  

to 

the 

least-stringent 

The  Greek  regulatory  environment  can  be 
further 
improved  to  facilitate  business 
activity.  While  the  requirements  for  setting  up  a 
business  are  among 
in 
Europe (95), the subsequent regulations and market 
barriers  make  it  difficult  for  Greek  firms  to 
develop  and  expand.  58.4%  of  firms  report 
business  regulation  as  major  obstacle,  which  is 
well  above 
(28%).  Greek 
the  EU  average 
legislation is drafted in a complex way and there is 
no  online  provision  of  consolidated  legislation  for 
the  citizens.  Legislation planning,  however, is  now 
published on a yearly basis (see annex 13). Having 
said that,  Greece has recently adopted legislation 
to incentivise business scale-ups in the framework 
of  the  RRP,  and  plans  to  further  reform  licensing 
legislation for economic activities. 

Access  to  finance  remains  difficult  for 
businesses, in particular small- and medium-
sized  enterprises  (SMEs).  Both  EIF  loan  and 
equity  access  to  finance  indexes  for  Greece  are 
well below EU average (see table below). For 24% 
of  SMEs,  their  loan  was  refused  or  rejected  (well 
above  EU  average)  while  for  57%  of  the  SMEs 
surveyed (96),  grants  or  subsided  loans  are  the 

Source: 1) % of GDP, 2021 Eurostat;  
2) composite indicator, 2021 European Investment Fund 
access to finance index;  
3) average payment delay in number of days, 2022 Intrum;  
4) % of firms in manufacturing facing constraints, 2022 
European Commission business consumer survey;  
5) proportion of contracts awarded with a single bidder, 2022 
Single Market Scoreboard. 

The  persistence  of  late  payments  weighs 
negatively on business liquidity. In 2021, 52% 
of  Greek 
they 
companies  declared 
experienced  problems  due  to  late  payments  from 
private  or  public  bodies  in  the  past  six  months, 
versus the EU average of 43% (98).  

that 

to 

Access  to  and  exercise  of  certain  regulated 
professions  is  still  restricted,  which  may  be 
business 
detrimental 
civil 
environment. 
engineers,  patent  agents,  tourist  guides,  lawyers 
and  accountants  are  more  regulated  than  the  EU 
average (99). Lawyers  in  Greece  are  subject  to 
restrictions  concerning  the  legal  form  of  their 

a 
Specifically, 

architects, 

dynamic 

(97)  https://competition-policy.ec.europa.eu/state-
aid/coronavirus/temporary-framework_en 

(95)  OECD, 2018 Product Market Regulation Country Note : 

(98)  Data and surveys - SAFE (europa.eu) 

Greece by OECD - Issuu 

(96)  SAFE survey 

(99)  Communication on updating the reform recommendations 
for regulation in professional services, COM(2021)385. 

58 

1) Businessinvestments2) EIF access tofinance index3) Payment gap- G2B3) Payment gap- B2B4) Materialshortage4) Labourshortage5) Single bidsEuropean UnionGreece 
                                                 
   
                                                 
Table A12.1: Industry and the Single Market 

(*) last available year 
Source:  (1) AMECO, (2) Eurostat, (3) ECFIN BCS, (4) Eurostat, (5) COMEXT and Commission calculations, (6) Eurostat, (7) Eurostat, 
(8) OECD, (9) Single Market Scoreboard, (10) EIB survey, (11) Eurostat: (12) Intrum, (13) SAFE Survey, (14) EIF SME Access to 
Finance Index. 

business, whilst it is considered incompatible for a 
lawyer  to  engage  in  certain  other  activities.  This 
could affect the potential of this sector to innovate 
and  roll  out  digital  solutions  and  new  business 
models.  As  regards  civil  engineers,  different 
categories  of  activity  exist  and  additional 
authorisation is required to undertake public works 
or studies. Such restrictions, impacts the efficiency 
of service provision. A more proportional approach 
to regulation for such professions would make the 
respective sectors more competitive. 

59 

POLICY AREAINDICATOR NAME20182019202020212022EU27 average (*)Net private investment, level of private capital stock, net of depreciation, % GDP (1)-3.7-2.9-3.2-1.3-0.13.7Net public investment, level of public capital stock, net of depreciation, % GDP (1)-0.5-1.1-0.800.30.4Real labour productivity per person in industry (% yoy)(2)-1.9-0.23.78.9-2.81.4Cost competitive-nessNominal unit labour cost in industry (% yoy)(2)-2.62.5-5.5-5.45.42.9Material shortage (industry), firms facing constraints, % (3)86591247Labour shortage using survey data (industry), firms facing constraints, % (3)2446928Vacancy rate (business economy)(4)0.80.70.40.71.33.1Concentration in selected raw materials, Import concentration index based on a basket of critical raw materials (5)0.130.130.130.130.120.18Installed renewables electricity capacity, % of total electricity produced (6)4749.453.561.3n.a.50.8Single Market integrationEU trade integration, % (7)17.417.816.420.222.745.8RestrictionsEEA Services Trade Restrictiveness Index (8)0.050.050.050.050.050.05Public procurement Single bids, % of total contractors (9)334042404829Investment obstaclesImpact of regulation on long-term investment, % of firms reporting business regulation as major obstacle (10)78.786.359.358.470.629.6Bankruptcies, Index (2015=100)(11)n.a.n.a.n.a.n.a.n.a.86.8Business registrations, Index (2015=100) (11)n.a.n.a.n.a.n.a.n.a.121.2Payment gap - corporates B2B, difference in days between offered and actual payment (12)-11917131313Payment gap - public sector, difference in days between offered and actual payment (12)83516121315Share of SMEs experiencing late payments in past 6 months, % (13)n.a.6263.654.952.343EIF Access to finance index - Loan, Composite: SME external financing over last 6 months, index values between 0 and 1 (14)0.240.210.20.13n.a.0.46EIF Access to finance index - Equity, Composite: VC/GDP, IPO/GDP, SMEs using equity, index values between 0 and 1 (14)0.250.080.090.12n.a.0.23BUSINESS ENVIRONMENT - SMEsBusiness demographyLate paymentsAccess to financeHEADLINE INDICATORSEconomic StructureRESILIENCEShortagesStrategic dependenciesSINGLE MARKET 
 
 
 
   
 
ANNEX 13: PUBLIC ADMINISTRATION 

launched  key  reforms  under 

This  Annex  outlines  the  performance  of 
is 
Greece’s  public  administration,  which 
essential for providing services and carrying 
out  reforms.  Overall,  Greece’s  administrative 
effectiveness ranks below the EU-27 average (100). 
Greece  has 
its 
recovery  and  resilience  plan  that  are  aimed  at 
resolving 
(i) 
streamlining  the  allocation  of  responsibilities 
between  the  different  levels  of  government;  (ii) 
introducing  strategic  workforce  planning; 
(iii) 
modernising  hiring  procedures;  (iv)  reskilling  and 
upskilling  the  workforce  in  the  public  sector;  (v) 
introducing a reward system for public entities and 
civil servants.  

issues,  such  as 

long-standing 

The  Greek  public  administration  has  a  good 
age  and  higher  education  profile.  However, 
participation in adult learning is well below the EU 
average. 
in  senior 
In  2022,  gender  parity 
administrative  positions  was  below  the  EU-27 
average  (Table  A13.1).  In  June  2022,  a  law  on 
human resources management in the Greek public 
sector was adopted. It provides for: (i) a new skills 
framework  for  all  public  servants;  (ii)  a  new 
system  for  setting  objectives  for  administrative 
units  and  employees;  (iii)  a  new  self-assessment 
framework  common  to  all  public  services  to 
analyse  their  operation  and  performance;  (iv) 
financial  bonuses  for  public  servants  in  selected 
public services. Based on the new skills framework, 
the  Greek  authorities  have  streamlined  the  job 
classification system, leading to 550 different job 
classifications,  down  from  approximately  2700. 
The  streamlining  was  accompanied  by  asigning 
specific  skills  to  each  job  classification,  thus 
contributing  to  a  more  targeted  hiring  of  public 
servants.  Lastly,  in  March  2023  the  authorities 
applied for the first time the new selection process 
of  public  servants  set  out  by  law  4765/2021, 
based on knowledge, skills and efficiency tests.  

Greece  has  made  considerable  progress  in 
since  adopting 
regulatory  management 
legislation  on 
in 
improving 
2019 (101).  Since  2021,  legislative  planning  takes 
place on a yearly basis through the publication of 
the  Consolidated  Government  Policy  Plan 
in 
December,  upon  approval  by  the  Ministerial 
Council.  In  addition,  ex  ante  regulatory  impact 

regulation 

assessments  are  carried  out  when  primary  laws 
are  produced.  Specific  steps  have  been  taken  to 
improve  the  capacity  for  ex  post  evaluations. 
Despite this progress, Greece is still below the EU 
average  on  stakeholder  consultation  and  ex  post 
evaluation  of  both  primary  and  secondary 
legislation (102).  In  general,  the  Greek  Parliament 
adopts  legislation  quite  rapidly  following  their 
introduction  to  the  Parliament.  Unlike  in  other  EU 
countries,  the  COVID-19  pandemic  led  to  no 
increase in the use of urgent legislative procedures 
(Graph  A13.1).  Overall,  some  steps  have  been 
taken  to  improve  the  quality  of  law  making, 
including  the  establishment  of  a  committee 
assessing the quality of draft bills before they are 
tabled  in  Parliament.  In  addition,  the  new  job 
classification of “legal drafters” to be appointed in 
each  ministry  is  expected  to  contribute  to  further 
improvement of the quality of law.  

Graph A13.1: Greece. Median time for the adoption 
of laws, and share of laws adopted in 30 days or 
less 

Source: European Commission based on national parliament’s 
websites  

Greece  is  less  advanced  than  most  other 
Member States in the provision of open data 
(Graph  A13.2).  Over  the  past  3  years,  Greece’s 
performance 
the  open  government  data 
indicator  has  deteriorated  and  now  ranks  among 
the  bottom  20%  of  countries.  Against  this 

in 

(100) Worldwide Governance Indicators, 2021 data.  

(102) OECD, Better Regulation Practices across the European Union 

(101) Law 4622/2019 

2022  

60 

00.10.20.30.40.50.60.70.80.901020304050607080ELEU-27ELEU-27Median time for law adoptionShare of laws adopted in 30 ofless days2016_212016_192020_21 
 
                                                 
     
                                                 
 
backdrop, the recovery and resilience plan targets 
the completion of the data governance strategy by 
the 4th quarter of 2025. 

Graph A13.2: Open government data maturity 
indicator: 2022 scores (% of the total maximum 
score) (lhs); country ranking, overall score (rhs) 

(1) right hand side chart: low values denote a good 
performance. 
Source: Open Data Maturity | data.europa.eu 

justice  system  continues 

The 
to  face 
challenges  as  regards  its  overall  efficiency. 
The time it takes to resolve litigious civil disputes 
in first instance has continued to increase, to 728 
days in  2021  compared  to  637  days in  2019  (no 
data  are  available  for  2020).  The  recovery  and 
resilience  plan  includes  reforms  to  accelerate  the 
administration  of  justice  including  by  revising  the 
judicial  map  and  setting  up  a  temporary  bonus 
system for judicial  clerks. It also includes reforms 
to increase the digital transformation of justice (E-
justice),  where  considerable  improvements  are 
needed,  although  certain  digital  tools  are  already 
used in courts. No systemic deficiencies in judicial 
independence have been reported (103). 

(103) For a more detailed analysis of the performance of the 
justice system in Greece, see the 2023 EU Justice 
Scoreboard (forthcoming) and the country chapter for Greece 
in the 2023 Rule of Law Report (forthcoming). 

61 

0510152025300%10%20%30%40%50%60%70%80%90%100%PolicyQualityPortalImpactTotal20182019202020212022Open data 2022Open data rankingEL2022EU-27EL2022 scores (lhs)Countryranking (rhs) 
     
                                                 
Table A13.1: Public administration indicators 

(1) High values denote a good performance, except for indicator # 6. (2) 2022 value. If not available, the 2021 value is shown. 
(3) Measures the user centricity (including for cross-border services) and transparency of digital public services as well as the 
existence of key enablers for the provision of those services. (4) Defined as the absolute value of the difference between the 
percentage of men and women in senior civil service positions. 
Flags: (b) break in time series; (d) definition differs; (u) low reliability. 
Source: ICT use survey, Eurostat (# 1); E-government benchmark report (# 2); Open data maturity report (# 3); Labour Force 
Survey, Eurostat (# 4, 5, 7), European Institute for Gender Equality (# 6); Fiscal Governance Database (# 8, 9); OECD Indicators of 
Regulatory Policy and Governance (# 10). 

62 

EL201720182019202020212022EU-27(2)167.267.868.267.369.5n/a64.82n/an/an/a52.252.360.472.93n/a0.70.70.90.80.60.8453.155.253.053.152.5 (b)53.752.055.96.24.34.43.2 (b)2.516.962.84.84.87.612.815.811.072.82.52.01.91.8 (b)1.71.580.90.90.90.90.9n/a0.790.70.70.90.90.9n/a1.5100.98n/an/an/a1.25n/a1.7Medium term budgetary framework indexIndicator (1)E-government and open government dataShare of individuals who used the internet within the last year to interact with public authorities (%)E-government benchmark overall score (3) Open data and portal maturity indexEducational attainment level, adult learning, gender parity and ageingShare of public administration employees with tertiary education (levels 5-8, %)Participation rate of public administration employees in adult learning (%)Gender parity in senior civil service positions (4)Ratio of 25-49 to 50-64 year olds in NACE sector OPublic financial management Strength of fiscal rules indexEvidence-based policy makingRegulatory governance 
 
   
 
FAIRNESS 
ANNEX 14: EMPLOYMENT, SKILLS AND SOCIAL POLICY CHALLENGES IN LIGHT OF 
THE EUROPEAN PILLAR OF SOCIAL RIGHTS  

The  European  Pillar  of  Social  Rights  is  the 
compass  for  upward  convergence  towards 
better  working  and  living  conditions  in  the 
EU.  This  Annex  provides  an  overview  of  Greece’s 
progress in implementing the Pillar’s 20 principles 
and EU headline and national targets for 2030 on 
employment, skills and poverty reduction. 

Table A14.1: Social Scoreboard for Greece 

to 

the 

recovery, 

economic 

low.  The 

(pps)  above 

is  a  12-year 

The labour market continued to recover from 
the  COVID-19  crisis,  although  significant 
challenges  persist,  particularly  for  women, 
In 
young  people,  and  vulnerable  groups. 
response 
the 
employment  rate  (66.8%  in  Q4-2022)  is  now 
5.5 percentage  points 
its  pre-
pandemic  level  but  remains  among  the  lowest  in 
the  EU.  The  unemployment  rate  decreased  in  late 
2020  and  2021,  reaching  11.8%  in  Q4-2022, 
which 
long-term 
unemployment rate remains one of the highest in 
the EU (7.7% in 2021 vs 2.4%), disproportionately 
affecting women (10.5%). The gender employment 
gap  is  among  the  largest  at  21 pps  in  2022.  In 
2021, Greece had the highest unemployment rate 
(15.2%),  with  women  being 
in 
disproportionately  affected  (19.3%  vs  12.5%  of 
men). Moreover, the share of young people not in 
employment,  education,  and  training,  15.4%  in 
2022,  remained  higher  than  the  EU  average 
(11.7%). 
In  2022,  youth  unemployment  was 
among  the  highest  in  the  EU  (31.4%  vs  14.5%). 
There  is  room  to  make  outreach  measures  and 
active  labour  market  policies  more  effective.  The 
disability employment gap was also slightly above 
the  EU  average  (23.8 pps  in  2021  vs  23.1 pps), 
and  persons  with  disabilities  find  it  difficult  to 
access training. Involuntary part-time employment 
also remained high (49.4% in 2022), with 21% of 
those concerned experiencing in-work poverty. 

rural  areas 

Efforts  to  strengthen  active  labour  market 
policies  and  public  employment  services  are 
key to fostering labour market participation. 
subsidies  and  other 
Targeted  employment 
activation  measures  are  critical  to  strengthening 
employment.  The  potential  of  the  social  economy 
is  also  still  untapped,  and  there  is  scope  for 
getting  social  partners  more  involved  in  policy 
design  and  implementation.  Efforts  in  all  these 
areas  can  support  progress  towards  the  national 
employment rate target of 71.1% by 2030. 

63 

(1) Update of 27 April 2023. Members States are classified on 
the Social Scoreboard according to a statistical methodology 
agreed with the EMCO and SPC Committees. It looks jointly at 
levels and changes of the indicators in comparison with the 
respective EU averages and classifies Member States in seven 
categories. For methodological details, please consult the 
Joint Employment Report 2023; NEET: neither in employment 
nor in education and training; GDHI: gross disposable 
household income. 
Source: Eurostat 

such 

Skills mismatches remain high, and the skills 
supply  still  has  to  better  meet  the  labour 
market’s  needs.  The  employment  rate  of  recent 
graduates  (60.1%  in  2021)  is  lower  than  the 
overall  employment  rate,  which  suggests  school-
to-work  transition  challenges.  While  the 
job 
vacancy rate is relatively low in Greece compared 
to  the  EU  average  (1.0%  vs  2.9%  in  Q4-2022), 
sectors 
and 
accommodation  have  difficulties  in  filling  certain 
vacancies. The share of individuals having at least 
basic digital skills stood at 52.5% in 2021, slightly 
below the EU average (54%). Vocational education 
and  training  remain  an  unattractive  option  for 
upper-secondary  students;  only  31.9%  of  pupils 
in  upper-secondary  vocational 
were  enrolled 
education  in  2020.  In  addition,  3.5%  of  adults 
participated  in  learning  over  the  past  4  weeks  in 
2021 (vs 10.8% in the EU). With the support from 

transport 

trade, 

as 

4.152.4815.4215.7966.312.57.779.3228.33220.6523.828.832.36.4Critical situationTo watchWeak but improvingGood but to monitorOn averageEqual opportunities and access to the labour marketEarly leavers from education and training(% of population aged 18-24, 2022)Share of individuals who have basic or above basic overall digital skills (% of population aged 16-74, 2021)Youth NEET rate(% of population aged 15-29, 2022)Gender employment gap(percentage points, 2022)Income quintile ratio(S80/S20, 2021)Policy areaHeadline indicatorDynamic labour markets and fair working conditionsEmployment rate(% of population aged 20-64, 2022)Unemployment rate(% of active population aged 15-74, 2022)Long term unemployment(% of active population aged 15-74, 2022)GDHI per capita growth                                                              (2008=100, 2021)Social protection and inclusionAt risk of poverty or social exclusion rate                                            (% of total population, 2021)At risk of poverty or social exclusion rate for children                       (% of population aged 0-17, 2021)Impact of social transfers (other than pensions) on poverty reduction (% reduction of AROP, 2021)Disability employment gap(percentage points, 2021)Housing cost overburden(% of total population, 2021)Children aged less than 3 years in formal childcare(% of population under 3-years-old, 2021)Self-reported unmet need for medical care(% of population 16+, 2021)Better than averageBest performers 
 
 
 
   
 
 
 
the ESF+ and the RRF, the planned reform of adult 
learning  can  improve  the  quality  and  take-up  of 
up-  and  reskilling  programmes  and  contribute  to 
achieving the national target of 40% of all adults 
participating  in  education,  training,  and  learning 
every  year  by  2030.  The  implementation  of  a 
comprehensive skills forecasting system using the 
upgraded  labour  market  diagnosis  mechanism, 
coupled  with  curricula  relevant  to  the  labour 
market  can  improve  employment  outcomes  (see 
Annex 15). 

Table A14.2: Situation of Greece on 2030 
employment, skills and poverty reduction targets 

out  of  poverty  and  social  exclusion  and  the 
complementary child poverty target of 24.2%. 

There is room to improve the capacity of the 
social benefits system to reduce poverty and 
inequalities  in  Greece.  The  impact  of  social 
transfers (excluding pensions) on reducing poverty 
decreased from 24.7% in 2020 to 20.6% in 2021 
(vs 37.1% in the EU). In 2021, the income share of 
the  richest  20%  of  the  population  was  5.8  times 
that  of  the  poorest  20%,  which  is  among  the 
highest  in  the  EU.  The  adequacy  of  the  minimum 
income scheme is below the EU average, and gaps 
persist  in  access  to  social  protection  for  non-
standard  workers,  notably  the  self-employed 
(26.8%  of  the  working-age  population  in  2021), 
non-EU-born  people  and  Roma.  The  social  benefit 
recipients’  rate  was  66%  among  people  living  in 
very low work-intensity households and below the 
poverty  line,  while  it  stood  at  82%  in  the  EU.  In-
work poverty increased to 11.3% in 2021, which is 
above the EU average of 8.9%. 

(1) Adult Education Survey, adults in learning in the past 12 
months. (2) Number of persons at risk of poverty or social 
exclusion (AROPE), reference year 2019. Base values are 
2019 for employment rate, 2016 for adult participation in 
learning, and the reference year for AROPE is 2019. Latest 
values are 2021 for employment rate (annual), 2016 for 
adult participation, and 2021 for AROPE. AROPE reduction 
does not include population projections. 
Source: Eurostat, DG EMPL 

Despite improvements, the risk of poverty in 
2021  remains  high  in  Greece,  and  children 
are  disproportionately  affected.  The  share  of 
people at risk of poverty or social exclusion stood 
at 28.3% in 2021, 0.9 pps higher than in 2020 and 
well  above  the  EU  average  (21.7%).  In  2021,  the 
share of the population affected by energy poverty 
(17.5%) and excessive housing costs (28.8%) was 
among  the  highest  in  the  EU  (see  Annex  8).  The 
proportion of children experiencing poverty peaked 
in  2021,  with  almost  one 
in  three  children 
affected. The share of children experiencing severe 
material  and  social  deprivation  (16.1%  in  2021) 
was also high. Territorial disparities are large, with 
people 
insular,  rural,  and  sparsely 
populated  areas  heavily  affected  by  poverty  risks 
(see  Annex  17).  The  ESF+  and  RRF  will  provide 
substantial  funding  to  tackle  child  poverty  and 
reform child protection services. Further efforts to 
strengthen  social  policy  are  key  to  achieving,  by 
2030, the national target of lifting 860 000 people 

living 

in 

is 

limited. 

The  scope  of  social,  healthcare,  and  long-
term  care  services  to  improve  the  situation 
of  vulnerable  groups 
The 
deinstitutionalisation  process  for  children  and 
persons  with  disabilities  saw  little  progress  in 
2021. Coordinated action at national and regional 
levels  is  key  to  coupling  the  implementation  of 
substantial  funding  with  effective  social  reforms. 
Adverse  demographic  trends  and  the  estimated 
increase  in  the  old-age  dependency  ratio  (from 
34.6%  in  2019  to  41.9%  in  2030)  highlight  the 
need  for  making  more  long-term  care  services 
available.  Public  expenditure  on  long-term  care  in 
Greece is considerably lower than the EU average 
(0.14%  versus  1.81%  of  GDP  in  2020).  The 
long-term  care 
for 
governance  system 
is 
is  no  strategy  or 
there 
fragmented,  and 
comprehensive  mapping  of  needs.  The  system 
relies  primarily  on  informal  family  carers,  with 
nearly  three out of ten adults in Greece providing 
informal  care  at  least  once  a  week (104).  Rural 
areas  are  much  worst  off  in  terms  of  distance to 
healthcare facilities (32 km) than cities (4 km) and 
towns  and  suburbs  (19 km).  Albeit  decreasing, 
self-reported unmet needs for medical care persist 
(see Annex 16).  

(104) Source: European Commission (2021), Study on exploring the 
incidence and costs of informal long-term care in the EU, 
VC/2019/0227. 

64 

IndicatorsLatest dataTrend            (2015-2022)National target by 2030EU target by 203066.3(2022)16.0(2016)-88(2021)Poverty reduction2 (thousands)-860-15 000Employment (%)7178Adult learning1 (%)4060 
 
      
 
                                                 
ANNEX 15: EDUCATION AND TRAINING 

This  Annex  outlines  the  main  challenges  for 
Greece’s education and training system in light of 
the  EU-level 
targets  and  other  contextual 
indicators  under  the  European  Education  Area 
strategic framework, based on the 2022 Education 
and Training Monitor. 

the 

and 

pedagogical 

Greece  takes  measures  to  address  teacher 
shortages.  Greece  has  qualified  and  committed 
teachers but, in 2021, more than half were above 
50  years  old.  The  government  attempted  to 
anticipate  the  challenge  of  teacher  shortages  by 
last  2 years,  25 000 
appointing,  during 
permanent  teachers  for  all  levels  of  compulsory 
education, including for special needs education. In 
addition,  an  even  higher  number  of  substitute 
teachers  were  appointed  during  this  period.  Law 
4589/2019 changed the conditions for appointing 
teachers.  The  previously  obligatory  exams  on 
subject 
knowledge  were 
abolished; the new hiring system relies solely on a 
credit-point 
academic 
credentials,  years  of  service  and  social  criteria. 
With  the  new  regulations,  the 
law  focuses 
primarily on regularising the situation of substitute 
teachers.  Based  on  GDP  per  capita,  teachers  in 
Greece  receive  low  salaries (105),  also  compared 
with  other  professionals  of  similar  qualifications. 
Despite the low salaries, the teaching profession is 
attractive  in  terms  of  teaching  hours  and the  low 
ratio  of  students  per  teaching  staff  (OECD). 
Opportunities  and  incentives  to  improve  their 
career  prospects  are  being  gradually  provided  to 
teachers,  based  on  law  4823/2021  on  “Schools’ 
upgrade  and  teachers’  empowerment”.  Teacher 
evaluation,  at  the  top  of  the  national  political 
agenda, is underway. 

system 

based 

on 

Educational  outcomes  are  not  satisfactory. 
Greece  has  the  highest  shares  of  low-performing 
young  people  in  the  Programme  for  International 
Student  Assessment  (PISA).  One  in  five  pupils  do 
not  reach  a  minimum  level  in  any  of  the  three 
subject  areas  tested  (maths,  reading,  science).  In 
addition, in all three subjects,  the number of low-
performing  pupils  increased  between  2009  and 
2018,  while  the  share  of  top  achievers  for  the 
same  period  decreased.  Socio-economic  status 
and migrant background greatly affect educational 
results.  Almost  half  of  students  from  the  lowest 
socio-economic  quartile  or  migrant  background 

(105) Eurydice, Teachers’ and school heads’ salaries and 

allowances in Europe 2019/2020. 

lack basic reading skills compared with only one in 
seven  students  from  the  highest  quartile.  One  in 
three  disadvantaged  pupils  underperform  in  all 
three  subjects  simultaneously.  Migrant  children’s 
limited  access  to  post-secondary  and  tertiary 
concern. 
education  also  gives 
Educational  outcomes  of  Roma  pupils  lag  far 
behind  those  of  their  peers.  In  order  to  improve 
educational  outcomes,  formative  tests  are  being 
introduced in the final years of primary and lower-
secondary education in the form of a programme 
for  system-level  evaluation  of  12 000  pupils  in 
Greek and mathematics. 

cause 

for 

Greece ranks last in the EU in participation in 
early childhood education and care (age 3+), 
but  performs  better  for  the  4+  age  bracket. 
Greece  has  a  differentiated  system  of  early 
childhood  education  and  care 
(ECEC),  which 
distinguishes non-compulsory early childhood care 
(ECC) for children aged 0-3 years and compulsory 
early  childhood  education  (ECE)  for  children  aged 
4-5  years.  Regarding  ages  3+  and  4+,  Greece 
recorded one of the best improvements (106) in the 
EU, with an increase of 2.5 percentage points (pps) 
compared with 2019. Yet, in 2020, only 71.3% of 
children aged 3 to the starting age of compulsory 
education 
childhood 
education.  Most  children  start  attending  school  at 
age  4,  the  age  that  constitutes  the  start  of 
compulsory pre-primary  education in Greece,  fully 
in  practice  since  the  school  year  2021/2022. 
Between  2019  and  2020,  for  those  at  risk  of 
poverty  or  social  exclusion,  the  participation  of 
children  aged  less  than  3  in  formal  childcare 
dropped in Greece by 11.5 pps. Low participation in 
early  childhood  education  and  care,  especially  of 
disadvantaged  children  under  the  age  of  4, 
contributes  to  educational  inequalities.  Capacity 
constraints and teacher shortages are ongoing for 
this level of education. 

participated 

early 

in 

The share of young individuals aged 16 to 19 
with  at  least  basic  digital  skills  stands  high 
in  Greece (107).  At  89%,  against  an  EU-level 
average  of  69%  (DESI,  2022),  Greece  is  among 
the highest performers in the EU. Digital education 

(106) Education and Training Monitor 2022, Volume I. 

(107) OECD (2021), Suarez-Alvarez, J. (2021), ‘Are 15-year-olds 

prepared to deal with fake news and misinformation?’, PISA 
in Focus, No 113, OECD Publishing, 
Paris, https://doi.org/10.1787/6ad5395e-en. 

. 

65 

 
 
                                                 
                                                 
 
is on track since the pandemic. However, the share 
of  15-year-olds  being  able  to  clearly  distinguish 
facts  from  opinions  when  searching  information 
on the internet is below the OECD average: 40.5% 
in Greece vs an OECD average of 47%. The socio-
economic background of students also comes into 
play  here.  The  development  of  digital  skills  is  a 
political  priority  in  Greece  and  is  supported  under 
the  Greek  recovery  and  resilience  plan.  Through 
the Recovery and Resilience Facility, students have 
been equipped with digital devices and their digital 
skills  are  being  further  improved.  Teachers  could 
through  vouchers 
also  buy  digital  devices 
distributed  to  all,  and  teacher  training  in  digital 
technology is ongoing. 

Tertiary  education  attainment  is  high,  but  a 
significant gender gap persists. With 45.2% of 
young  people  aged  25-34  holding  a  tertiary 
education  degree,  Greece  is  close  to  the  EU-level 
target  of  45%  by  2030  and  surpassing  the  EU 
average  (42%.)  However,  there  is  a  significant 
gender gap in favour of women (12.7 pps vs the  

EU  average  of  11.1  pps),  with  51.8%  of  all 
graduates  being  women.  At  38.4%,  the  overall 
proportion  in  Greece  of  female  graduates  in 
science, technology, engineering and mathematics 
is  also  above  the  EU  average  of  33.2% (OECD). 
Participation in adult learning remains limited (see 
Annex 14). 

Graph A15.1: Tertiary educational attainment rate 
(25-34), 2022 

Source: Eurostat 

Table A15.1: EU-level targets and other contextual indicators under the European Education Area 
strategic framework 

Source: (1,3,4,5,7,8,9,10,11) = Eurostat; 2 = OECD (PISA); 6 = European Commission (Joint Research Centre). Notes: Data are not 
yet available for the remaining EU-level targets under the European Education Area strategic framework, covering 
underachievement in digital skills and participation of adults in learning. The equity indicator shows the gap in the share of 
underachievement in reading, mathematics and science (combined) among 15-year-olds between the lowest and highest quarters 
of socio-economic status 

66 

0%10%20%30%40%50%60%TotalWomenMenRuralareasCitiesEUEL96%63.0%d91.9%71.3%2020, de93.0%2020Reading< 15%27.3% 20.0%30.5%201822.5%2018Mathematics< 15%35.8% 22.3%35.8%201822.9%2018Science< 15%32.7% 21.1%31.7%201822.3%2018< 9 %7.9%11.0%4.1% 9.6%Men9.4%12.5%3.8%11.1%Women6.4%9.4%4.5%8.0%Cities4.7%9.6%3.2%8.6%Rural areas13.3%12.2%4.6%10.0%Native6.8%10.0%3.7%8.3%EU-born20.6%20.7%:u20.3%Non EU-born24.8%23.4%24.1%u22.1%6Equity indicator (percentage points)::25201819.320187Exposure of VET graduates to work based learningTotal ≥ 60% (2025) : :35.7%60.1%45%40.1%36.5%45.2%42.0%Men34.0%31.2%39.1%36.5%Women46.3%41.8%51.8%47.6%Cities47.1%46.2%54.0%52.2%Rural areas27.1%26.9%28.5%30.2%Native43.6%37.7%47.4%43.0%EU-born14.1%u32.7%38.4%39.5%Non EU-born10.1%27.0%14.0%35.7%39.1% 38.3%52.3%202039.2%2020Tertiary educational attainment (age 25-34)8Total8By gender9By degree of urbanisation10By country of birth11Share of school teachers (ISCED 1-3) who are 50 years or over1Participation in early childhood education (age 3+)2Low achieving 15-year-olds in:Early leavers from education and training (age 18-24)3Total3By gender4By degree of urbanisation5By country of birth20152022IndicatorTargetGreeceEU27GreeceEU27 
   
 
  
 
ANNEX 16: HEALTH AND HEALTH SYSTEMS 

A  healthy  population  and  an  effective,  accessible 
and resilient health system are prerequisites for a 
sustainable  economy  and  society.  This  Annex 
provides  a  snapshot  of  population  health  and  the 
health system in Greece.  

it 

has 

although 

Life  expectancy  in  Greece  is  above  the  EU 
average, 
dropped 
significantly since 2019. This reflects the effect 
of  COVID-19,  which  caused  almost  three  times 
more  deaths  in  2021  than  in  2020 (108).  Greece 
fares  comparatively  well  in  avoiding  deaths  from 
treatable  causes.  In  2020,  the  leading  cause  of 
cardiovascular  diseases,  but 
mortality  was 
malignant 
also  major 
contributors. 

neoplasms  were 

Graph A16.1: Life expectancy at birth, years 

Source: Eurostat 

is 

Total  health  spending  relative  to  GDP  in 
Greece was below the EU average in 2020. In 
2020, total healthcare spending increased to 9.5% 
of GDP (EU 10.9%). This is in line with the upward 
trend in all Member States in 2020. In Greece, this 
increase 
largely  due  to  the  severe  GDP 
contraction  (by  9%,  compared  to  5.7%  in  the  EU 
overall). This is also corroborated by the fact that 
the  share  of  health  spending  in  total  public 
spending was reduced by 6.7% between 2019 and 
2020.  The  amounts  spent  per  capita  on  inpatient 
care  (EUR  605),  pharmaceuticals  (EUR  443)  and 
outpatient  care  (EUR  241)  are  all  below  the  EU 
average  (EUR  863,  EUR  457  and  EUR  737, 
respectively).  However,  for  spending  on  inpatient 
care  and  pharmaceuticals  as  a  share  of  GDP, 
Greece  ranks  first  among  all  Member  States.  By 
contrast,  Greece’s  spending  on  outpatient  care  as 
a share of GDP is among the lowest of all Member 
States.  

(108) Based on data provided directly by Member States to ECDC 
under the European Surveillance System (data current as of 
13 April 2023) 

surveillance 

Spending  on  preventive 
care,  disease 
control 
detection, 
and 
programmes  has  increased,  but  it  is  below 
the  EU  average  of  3.4%.  This  is  reflected  in  a 
significant  rise  in  the  share  of  total  spending  on 
preventive  care  in  2020  (1.8%,  up  from  1.3%  in 
2019),  which  is  largely  due  to  a  124%  increase 
(from  EUR  59  million  to  EUR  132  million)  in 
epidemiological  surveillance  and  risk  and  disease 
control programmes. The public health response to 
COVID-19 has led to similar budget developments 
across  the  EU.  Another  action  to  safeguard  public 
health is the ongoing rationalisation of the use of 
antimicrobials, as part of broader efforts to foster 
the  rational  use  of  medicines.  The  situation  in 
Greece  has  improved  significantly,  with  the  daily 
consumption  in  2021  falling  to  67%  of  that  in 
2019.  This  decrease  exceeds  the  decrease  noted 
across the EU on average by more than 18%, most 
likely  because  of 
the  COVID-19  pandemic. 
However,  Greece  is  still  one  of  the  four  Member 
States  with  the  highest  use  of  antibiotics.  A 
comprehensive  public  health  system 
reform, 
entitled  the  Spyros  Doxiadis  programme,  includes 
reforms  of  the  delivery  of  public  health  services, 
of  population  health  and  environmental  health 
monitoring,  and  of  the  rapid  response  services.  It 
also  includes  the  overall digital  transformation  of 
the public health sector. 

The  public  share  of  health  spending 
is 
comparatively low (61.8% in 2020). The share 
of  out-of-pocket  payments  is  very  high  (33.4%, 
the  second  highest  in  the EU).  Public  spending  on 
health  is  projected  to  increase  by  0.8  percentage 
points (pps) of GDP by 2070 (compared to 0.9 pps 
for the EU overall) (see Annex 21).  

Graph A16.2: Projected increase in public 
expenditure on healthcare over 2019-2070 

AWG reference scenario 
Source: European Commission / EPC (2021) 

67 

81.581.481.981.781.480.280.980.981.081.380.480.1201620172018201920202021GreeceEU6.64.40.90.802468EUGreece% of GDP20192070increase 
 
       
                                                 
 
       
 
 
Greece  has  the  highest  number  of  doctors 
and  the  lowest  number  of  nurses  per  capita 
of  all  EU  countries.  However,  these  numbers 
include  all  doctors  who  are  licensed  to  practice 
rather  than  just  those  who  are  professionally 
active,  and  only  nurses  in  hospitals  are  counted. 
The  overwhelming  majority  of  doctors  are 
specialists,  with  general  practitioners  accounting 
for  only  7%  of  all  doctors,  compared  to  the  EU 
average  of  26%.  Since  the  start  of  the  COVID-19 
pandemic,  special  recruitment  schemes  have 
largely  responded  to  the  surge 
in  demand. 
Scheduled  leave  and  planned  retirement  of  staff 
were  suspended  and  retired  or  non-practising 
health  workers  were 
the 
workforce.  Health  professionals  working  in  the 
private sector were offered temporary contracts to 
work  in  public  hospitals,  with  added  incentives  to 
attract  candidates  to  vacant  positions.  Health 
services  and  facilities  are  heavily  concentrated  in 
urban areas. Before the pandemic, there were 364 
hospital  beds  per  100 000  population  on  average 
–  well  below  the  EU  average  rate  of  387.  During 
the  second  wave  of  the  COVID-19  pandemic,  in 
2020, when cases spiked significantly, some of the 
worst  affected  regions  did  not  have  enough 
hospital  beds  and  sought  capacity  in  the  private 
sector. 

invited 

re-join 

to 

low  historical 

Through  its  recovery  and  resilience  plan 
(RRP),  Greece  plans  to  invest  EUR  1 486 
million (4.9% of the RRP’s total value). These 
investments  are  planned  against  the  backdrop  of 
overall 
in 
healthcare,  measured  as  a  share  of  gross  fixed 
capital  formation  in  GDP.  The  reforms  focus  on 
primary healthcare, pharmaceutical funding, public 
health,  mental 
the  hospital 
remuneration scheme. The investments target the 
infrastructure  and  digitalisation  of  hospitals  and 

health,  and 

investment 

levels 

aim  to  introduce  home  nursing  and  to  set  up  a 
radiotherapy centre and a haematological clinic for 
cell and genetic therapy.  

control 

to  keep  public 

Policies 
spending  on 
face 
under 
pharmaceuticals 
challenges.  These  policies  include’  claw-backs, 
which are repayment orders against the industry in 
case  of  budget  overshoots.  For  2023,  pre-agreed 
budget ceilings will  probably be  complied with, as 
authorities  negotiated  higher  rebates.  However, 
there  seem  to  be  difficulties,  both  in  outpatient 
inpatient  settings,  in  controlling  demand 
and 
through  compulsory  prescribing  protocols  and 
rational  prescribing  practices  (e.g.  to  prevent 
excessive use of antibiotics).  

Reforms  to  strengthen  primary  care  rely  on 
achieving  appropriate  numbers  of  doctors 
and  nurses.  Recent  reform  measures  focus  on 
doctors. A new remuneration package was offered 
to  doctors  and  now  3385  doctors  are  working  in 
primary  healthcare,  enabling  more  than  50%  of 
the population to be registered with a doctor. The 
aim is to reach a stock of doctors that covers the 
entire  population  and  activate  gatekeeping. 
Currently,  coverage  is  still  insufficient,  and  this 
acts as a bottleneck for the full implementation of 
the reform, the aim of which is to ensure full and 
equal  access  to  the  healthcare  system  through 
primary  healthcare.  This  calls  for  additional 
measures  to  strengthen  existing  incentives  to 
create  the  basis  for  comprehensive  primary 
healthcare,  such  as  limiting  reimbursement  of 
services and prescriptions by social  providers that 
are not affiliated with the national organisation for 
the provision of healthcare services (EOPYY). 

Table A16.1: Key health indicators 

Note: The EU average is weighted for all indicators, except for (*) and (**), for which the EU simple average is used. The simple 
average for (*) uses data for 2020 or most recent year if former not available. Doctors' density data refer to practising doctors in 
all countries except EL, PT (licensed to practice) and SK (professionally active). Nurses' density data refer to practising nurses in all 
countries except FR, PT, SK (professionally active) and EL (nurses working in hospitals only).  
Source: Eurostat; ** ECDC 

68 

20172018201920202021EU average (latest year) Treatable mortality per 100 000 population (mortality avoidable through optimal quality healthcare)94.290.093.192.4NA91.7 (2020)Cancer mortality per 100 000 population245.4241.7241.0240.8NA242.2 (2020)Current expenditure on health, % GDP 8.18.18.29.5NA10.9 (2020)Public share of health expenditure, % of current health expenditure60.659.261.561.8NA81.2 (2020)Spending on prevention, % of current health expenditure 1.31.21.31.8NA3.4 (2020)Acute care beds per 100 000 population360363364NANA387.4 (2019)Doctors per 1 000 population *6.16.16.26.2NA3.9 (2020)Nurses per 1 000 population *3.33.43.4NANA8.3 (2020)Consumption of antibacterials for systemic use in the community, daily defined dose per 1 000 inhabitants per day (total consumption for CY and CZ) **32.132.532.426.421.814.5 (2021) 
 
       
 
ANNEX 17: ECONOMIC AND SOCIAL PERFORMANCE AT REGIONAL LEVEL 

This  Annex  showcases  the  economic  and 
social  regional  dynamics  in  Greece,  providing 
an  update  on  economic,  social  and  territorial 
cohesion  in  the  Greek  regions  compared  with  the 
EU  as  a  whole  and  the  main  regional  economic 
recovery challenges. 

Map A17.1:  Regional Competitiveness Index in 
Greek regions (2022) 

in  Greece 

Regional  disparities 
increased 
between  2011  and  2020.  In  2020,  all  Greek 
regions  were  below  90%  of  the  EU  average  in 
terms  of  GDP  per  capita  in  purchasing  power 
standard (PPS) terms. Attiki and Notio Aigaio, were 
regions  are 
'transition 
categorised  as  'less  developed  regions'  in  2021-
2027.  

regions'  while  all 

eek  regions  rank  below  the  EU  average  on 
competitiveness.  The  vast  majority  ranks  below 
75%  of  the  EU  average,  with  the  exception  of 
Attiki (92.6) who is the forerunner (Map A17.2) 

Despite  an  overall  improvement  since  2014 
and  a  recent  increase,  regional  innovation 
performance  remains  low  in  Greece  (Map 
A17.1).  All  the  Greek  regions  rank  below  the  EU 
average  in  terms  of  competitiveness.  Attiki  (the 
capital  region)  is  the  frontrunner,  performing  four 
times better than Voreio Aigaio. 

R&D  expenditure  has  increased  in  recent 
years,  but  2020  expenditure  was  lower than 
the  EU  average.  Leaders  in  R&D  expenditure 
were Attiki (1.89% of GDP) and Kriti (1.88%) whilst 
Notio Aigaio came last (0.27%).  

Greece has made good progress in the digital 
economy  and  society  index  (DESI)  in  recent 
years  in  comparison  with  other  EU  Member 
States.  According  to  the  2022  DESI,  the  number 
of  active  users  of  e-government  services  (69%) 
had  increased  on  the  previous  year  by  67%  and 
was  4  percentage  points  above  the  EU  average 
(65%). Greece also made progress in terms of its 
population having at least basic digital skills (52%, 
which is very close to the EU average of 54%).  

Five Greek regions ranked below 50% of the 
EU  average  in  terms  of  GDP  per  capita  in 
2021.  This 
includes  Voreio  Aigaio,  Anatoliki 
Makedonia-Thraki,  Ipeiros,  Thessalia  and  Dytiki 
Ellada.  GDP  per  capita  in  Attiki  (86%  of  the  EU 
average)  was  more  than  twice  that  of  Voreio 
Aigaio  (42%)  and  almost  twice  that  of  Anatoliki 
Makedonia-Thraki 
(46%). 
(45%)  and 
Internal  convergence  in  Greece  has  therefore  not 
advanced. 

Ipeiros 

Graph A17.1: GDP per head (2010) and GDP growth 
(2011-2020) in Greece 

Source: EUROSTAT 

There  has  been  a  generalised  trend  of 
decreasing 
labour  productivity  despite  a 
recent  increase  in  2021.  Labour  productivity 
(measured as gross value added (GVA) per person 
employed)  was  66%  of  the  EU  average  in  2021. 
Attiki  and  Sterea  Ellada  remained  the  leaders  in 
labour  productivity  (82%  and  73%  of  the  EU 
average respectively). 

69 

-5.0-4.0-3.0-2.0-1.00.01.02.05060708090100110120130Annual real GDP per head growth2011-2020 (average % change on the preceding year)GDP (PPS) per head in 2010 (EU = 100)Capital regionOther NUTS2 regionsNational averageEU27 
 
   
 
 
 
 
 
 
 
Table A17.1: Selected indicators at regional level in Greece 

Source: EUROSTAT 

improving  post-COVID-19  trends, 
Despite 
integration  in  the  labour  market  remains  a 
challenge,  particularly  for  people  aged  15-
29, with the majority of Greek regions being 
well above the EU average.  Around one in five 
young  people  living  in  the  capital  region  were 
unemployed 
(21.3%  of  the  active 
population aged 15-24) and two out of three were 
unemployed in Sterea Ellada (63.6%). Moreover, in 
2021, Greece had the highest unemployment rate 
in rural areas.  

in  2020 

In 

fact, 

Harnessing  talent  remains  a  challenge  in 
several Greek regions as a result of a declining 
working age population, a low share of people with 
tertiary  education  and  significant  numbers  of 
young  people  moving  away. 
low 
educational attainment is high and remains above 
the  EU  average  in  all  the  regions  but  the  capital 
region  of  Attiki.  Indeed,  Attiki  is  the  only  region 
where  more 
than  50%  of  young  people 
(aged 30-34)  have  completed  tertiary  education 
(the  national  average  is  43.7%,  which  is  slightly 
above the EU average for 2017-2019). The share 
of  early  school  leavers  is  low  for  Greece  as  a 
whole  (3.2%  in  2021)  but  significantly  higher  in 
Central Greece 11.1%), Western Greece (6.9%) and 
the Aegean islands (above 8%). 

challenges 

island  areas  are 

Greek  regions  and  particularly  those  with 
facing 
remote  and 
important 
low 
accessibility  to  healthcare  within  their 
communities.  For  example,  10.9%  of  citizens  in 
Anatoliki Makedonia-Thraki reported that they had 
foregone  medical  consultations  due to  high  costs, 
long travelling distances or waiting lists. 

related 

to 

On  average,  slightly  less  than  30%  of  the 
Greek  population  was  at  risk  of  poverty  or 
social  exclusion  (AROPE)  in  2020.  There  were 
significant  variations  across  the  country.  The 
capital  region  of  Attiki  had  the  lowest  rate  of 
AROPE  in  the  country  (21.8%)  while  the  western 
region  of  Dytiki  Ellada  had  the  highest  (almost 
44%).  The  risk  of  poverty  or  social  exclusion 
remains  high.  34%  of  people  living  in  rural  areas 
at risk in 2021 (109). This was the third highest rate 
in the EU and the EU average was 22.5%. 

(109) source: Eurostat 

(https://ec.europa.eu/eurostat/databrowser/view/ILC_PEPS13
N__custom_3944756/default/table?lang=en). 

70 

NUTS region nameGDP per head (PPS) (2021)Productivity (GVA (PPS) per person employed) (2021)Unemployment rate (2021)At-risk-of-poverty or social exclusion (2021)Population aged 30-34 with high educational attainment (2021)R&D expenditure (2019)EU average100.0100.07.021.741.62.3Elláda64.066.314.728.344.31.3Attiki86.081.611.921.651.51.6Voreio Aigaio42.055.013.828.140.90.7Notio Aigaio64.060.118.823.229.70.2Kriti52.054.516.328.836.31.5Anatoliki Makedonia, Thraki45.051.318.535.338.00.8Kentriki Makedonia50.056.216.133.749.01.1Dytiki Makedonia53.062.619.728.945.70.4Ipeiros46.052.215.128.037.41.5Thessalia49.053.216.626.136.01.0Ionia Nisia57.054.213.229.434.70.4Dytiki Elláda48.053.817.442.040.81.4Sterea Elláda65.072.917.230.839.20.6Peloponnisos56.059.112.735.837.30.6 
 
 
 
                                                 
 
   
 
MACROECONOMIC STABILITY 
ANNEX 18: KEY FINANCIAL SECTOR DEVELOPMENTS 

Greece’s predominantly bank-based financial 
sector has a high concentration rate and low 
foreign  ownership.  Following  the  substantial 
consolidation  that  took  place  during  the  Greek 
economic  adjustment  programmes  (2010-2018), 
the  four  domestic  systemically  important  banks 
have  a  market  share  of  around  95%  of  banking-
sector assets, one of the highest concentrations in 
the EU. These four banks also have a considerable 
presence  in  Bulgaria,  Romania  and  Cyprus.  The 
banks  are  mainly  privately-owned.  However,  the 
previous  crisis  and  its  aftermath  left  a  legacy  of 
sizeable  State  participation  in  the  top  five  banks 
through the Hellenic Financial Stability Fund, which 
recently  approved  its  strategy  to  divest  these 
holdings.  

In 

the 

less-significant 

future,  banks’ 

Banks’  asset  quality  and  profitability  have 
continued to improve, supporting the gradual 
restoration  of  capital  ratios.  The  non-
performing-loan  (NPL)  ratio  has  continued  to 
improve, falling to 6.4% of total loans in the first 
nine months of 2022, compared to 26.5% in 2020. 
This  sharp  reduction  in  legacy  NPLs  was  largely 
due to: (i)  state-sponsored securitisations of NPLs 
under the Hellenic Asset Protection Scheme, which 
expired  in  October  2022;  and  (ii)  outright  loan 
disposals. 
in-house 
management of loans is expected to be the main 
driver  in  reducing  NPL  ratios  closer  to  the  EU 
average.  This  may  prove  challenging,  particularly 
for  some 
institutions  carrying 
many  NPLs.  The  core  profitability  of  banks  has 
improved  thanks  to:  (i)  lower  provisioning  needs; 
(ii)  cost  control;  (iii)  sustained  growth  in  fees  and 
commissions; and (iv) new, more profitable lending 
in  2022.  In  parallel,  systemically  important  banks 
have  taken  measures  to  shield  their  balance 
sheets  from  volatility  in  sovereign  yields,  given 
their  significant  holdings  of  domestic  sovereign 
bonds. The prudential phase-in of the International 
Financial Reporting Standards 9 (IFRS9) accounting 
rules adversely affected banks’ capital positions in 
the  first  quarter  of  the  year.  However,  this 
negative  effect  was  fully  offset  by  profits  in  the 
first  nine  months  of  2022.  Nevertheless,  Greek 
banks’  capital  position  remains  among  the  lowest 
in  the  EU,  while  the  quality  of  regulatory  capital 
also  remains  a  concern,  given  the  high  share  of 
deferred tax credits. Systemically important banks 
have  comfortable  liquidity  coverage  ratios  on  the 
back  of  sustained  deposit  growth,  while  their 
sizeable  reliance  on  European  Central  Bank  (ECB) 

71 

financing  was  markedly  reduced  in  December 
2022, as banks started the gradual  repayment of 
amounts  borrowed  under  ECB’s  targeted  longer-
term refinancing operations (TLTRO III). 

Energy  costs  and  rising  interest  rates  could 
affect  debtors  and  increase  the  cost  of 
funding  for  banks.  Rising  interest  rates  have 
started to improve banks’ profitability in the short 
term.  However,  given  the  banks’  predominantly 
variable-interest  loan  book,  rising  interest  rates 
combined  with  higher  energy  prices  and  a 
gradually  worsening  macroeconomic  outlook,  risk 
eroding  the  repayment  capacity  of  debtors,  with 
potential  adverse  impact  on  the  banks’  asset 
quality.  To  tackle  this  risk,  the  majority  of  Greek 
banks  recently  announced  a  new  reward  program 
to  “freeze”  for  12  months  the  interest  rate  of 
variable-rate  mortgage  loans  of  all  performing 
debtors.  The  inflow  of  new  NPLs  so  far  remains 
modest,  albeit  with  some  net  inflows  on  loans  to 
households.  Banks’  profitability  could  also  come 
under  pressure  from  the  further  increase  in  their 
cost  of  funding,  given:  (i)  their  need  for  future 
issuances of long-term debt to meet the minimum 
requirement  for  own  funds  and  eligible  liabilities 
(MREL);  and  (ii)  the  recalibration  and  gradual 
phasing  out  of  targeted  longer-term  refinancing 
operations.  A  further  downside  risk  stems  from  a 
potential retrenchment of credit demand if there is 
a recession.  

Graph A18.1: Evolution of credit activity 

Adjusted for loan sales and securitisations. 
Source: ECB. 

Lending  growth  picked  up 
businesses  but 

remains  negative 

in  2022  for 
for 

-10-505101520200920102011201220132014201520162017201820192020202120222023Total privateNFCHH% 
 
 
  
 
Table A18.1: Financial soundness indicators 

(1) Last data: Q3-2022. 
(2) Data is annualized. 
Source: ECB, Eurostat, S&P Global Capital IQ Pro. 

reaching  4.6% 

rate  of  8.3%, 

households.  Net 
to  non-financial 
lending 
corporations  accelerated  in  2022,  registering  an 
average  annual  growth 
in 
comparison to  5.7%  a  year  earlier.  The  pick-up  in 
lending was mainly driven by flows to large firms. 
Lending  to  households  continued  to  fall,  as  the 
increase  in  gross  new  lending  to  households  was 
more  than  offset  by  repayments  of  existing 
mortgages.  The  weighted  average  cost  of  bank 
lending to businesses  has  risen  significantly  since 
August, 
in  December  2022 
compared  to  2.9%  at  end-2021.  However,  this  is 
still substantially lower than the weighted average 
cost of bank lending to micro firms and individual 
entrepreneurs  (6.7%)  and  households  (5.6%).  The 
COVID-19 Enterprise Guarantee fund concluded its 
total  of 
in  June  2022,  with  a 
operations 
EUR 6.2 billion 
its 
inception  in  2020.  New  lending  programmes  by 
the  Hellenic  Development  Bank  targeting  small 
and  medium-sized  enterprises  (SMEs)  will  be 
activated  in  late  2022  and  2023.  Other  EU 
financial  instruments  and  European  Investment 
Bank programmes continue to account for a large 
part of SME lending by banks. Loan disbursements 
linked  to  the  RRF  Loan  Facility  are  showing  good 
progress  and  are  expected 
to  accelerate 
significantly  as  of  2023.  All  this  should  support 
credit  demand,  which  may  nevertheless  suffer  in 
the short term from the worsening macroeconomic 
outlook. 

loans  disbursed  since 

in 

The  property  market  has  seen  continued 
price  growth  on  the  back  of  foreign  direct 
investment.  The  strong  rebound  in  the  price  of 
apartments,  following  the  large  fall  in  the  2008-

72 

2017  period,  continued  in  2022  with  a  12.2% 
year-on-year  increase  by  the  fourth  quarter.  This 
increase  was  partly  driven  by  foreign  direct 
investment  (FDI)  linked  to  the  country’s  golden 
visa programme. Price-to-rent and price-to-income 
ratios have also rebounded significantly. However, 
prices  remain  18%  below  their  peak  2008  levels, 
and net credit growth for mortgages is persistently 
negative.  Moreover,  new  gross  mortgage  loan 
volumes are still much lower than in the pre-2009 
period,  despite  steady  growth  over  the  past  two 
years. For commercial real estate, price growth for 
the  first  6 months  of  2022  was  less  pronounced, 
at only 0.7% for offices and 2.5% for retail stores. 
Overall, 
indications  of  an 
overvaluation of house prices that would require a 
tighter macro-prudential policy stance, despite the 
real-estate  market’s  over-reliance  on  FDI  flows. 
The  Bank  of  Greece  has  maintained 
the 
countercyclical capital buffer at zero.  

there  are  no 

Greek 

capital  market 

The 
remains 
underdeveloped,  despite  progress  in  recent 
years.  The  market-funding  ratio  has  improved 
steadily  since  2016  but  remains  low,  reaching 
32.2%  in  2021  compared  to  an  EU  average  of 
50%. This low ratio led the authorities to recently 
draw  up  a  national  strategy  to  strengthen  the 
Greek  capital  market.  The  set-up  of  the  equity 
platform instrument  of  the  RRF  Loan  Facility  also 
aims to provide equity financing to dynamic SMEs 
of 
After 
start-ups. 
and 
decade 
underperformance, 
bond-issuance 
IPOs 
activity  rebounded  in  2021.  The  Athens  stock 
exchange  is  still  far  from  its  pre-2008  levels,  in 
terms  of  both  market  capitalisation  and  daily 

a 
and 

201720182019202020212022EUMedianTotal assets of the banking sector (% of GDP)170.4163.0168.9203.2180.7156.2276.8207.9Share (total assets) of the five largest banks (%)97.096.897.497.098.0--68.7Share (total assets) of domestic credit institutions (%)197.998.098.798.798.698.6-60.2NFC credit growth (year-on-year % change)0.00.21.810.23.311.6-9.1HH credit growth (year-on-year % change)-2.0-2.2-2.8-2.0-2.0-1.6-5.4Financial soundness indicators:1        - non-performing loans (% of total loans)45.041.635.526.58.66.41.81.8- capital adequacy ratio (%)17.116.017.316.716.216.218.619.8- return on equity (%)2-1.3-0.40.7-7.9-20.114.96.16.6Cost-to-income ratio (%)152.755.252.142.664.437.060.651.8Loan-to-deposit ratio (%)183.574.774.863.956.957.188.678.0Central bank liquidity as % of liabilities16.25.23.215.317.912.6-2.9Private sector debt (% of GDP)120.4119.1110.3124.9120.7--120.7Long-term interest rate spread versus Bund (basis points)566.1378.8283.8178.2125.8234.5-93.3Market funding ratio (%)21.523.225.625.932.2-50.840.0Green bonds issued to all bonds (%)0.00.00.20.71.71.63.92.31-34-1011-1718-2425-27Colours indicate performance ranking among 27 EU Member States. 
 
  
 
turnover. The market-cap-to-GDP ratio was 27.2% 
at the end of 2021, as opposed to an EU average 
of  85.5%.  Sustainable  finance  in  Greece  still  lags 
behind  EU  peers,  despite  a  pick-up  in  green  bond 
issuance  over  the  last  two  years.  The  FinTech 
industry  is  in  the  early  stages  of  development  in 
Greece,  while  banks  are  investing  in  digital  and 
mobile distribution channels and FinTech solutions, 
often in partnership with local FinTechs.  

The  Greek 
is  highly 
insurance  sector 
concentrated  and  smaller  than  its  EU  peers. 
Total  assets  held  by  Greek  insurers  represented 
8.8% of GDP as of 30 September 2022, compared 
to  an  EU  average  of  58.3%,  while  the  sector  has 
undergone some consolidation in recent years. The 
solvency  ratio  at  the  end  of  September  2022 
remained robust, albeit lower than the EU average. 
The  rising  interest  rates  are  expected  to  lead  to 
insurers,  which 
asset  devaluations  for  Greek 
should  be  partly  offset  by  reductions  in  the 
amount  of  technical  provisions.  However,  as 
elsewhere  in  the  EU,  the  higher-than-expected 
inflation may generate short-term losses for non-
life  business  in  Greece,  due  to  increases  in  claim 
costs, triggering the need for a rise in premiums to 
counteract  them.  Greece  has  one  of  the  highest 
insurance  protection  gaps  in  Europe  for  natural 
disasters, 
and 
wildfires. (110) 

earthquakes 

particularly 

(110) According to EIOPA’s dashboard on insurance protection gap 

for natural catastrophes. 

73 

 
 
                                                 
 
ANNEX 19: TAXATION  

This  Annex  provides  an 
indicator-based 
overview  of  Greece’s  tax  system.  It  includes 
information on the tax structure (the types of tax 
that Greece derives most of its revenue from), the 
tax  burden  on  labour,  and  the  progressivity  and 
redistributive  effect  of  the  tax  system.  It  also 
provides 
tax  collection  and 
compliance. 

information  on 

Greece’s tax revenues remain close to the EU 
aggregate  in  relation  to  GDP.  In  terms  of 
structure,  important  steps  have  been  taken  since 
2020 to improve the mix of revenues by reducing 
corporate  and  personal  income  tax  and  social 
security  contribution  rates.  Compared  to  the  EU 
aggregate,  tax  revenues  (expressed  as  %  of  GDP 
and  as  %  of  total  taxation)  in  Greece  in  2021 
tended  to  rely  more  on  growth-friendly  taxes  (i.e. 
consumption  taxes  rather  than  labour  taxes). 
Revenues from environmental taxes (expressed as 
%  of  GDP)  have  increased  significantly  in  recent 
years. Greece's energy and transport tax revenues 
(expressed as total tax revenues) are significantly 
above the EU aggregate (see Table  A19.1). A new 
green  tax  reform  with  the  technical assistance  of 
Commission's services  is  underway  in  order  to 
support  the  green  transition  in  Greece.  Overall 
revenues 
security 
taxes  and 
contributions  (expressed  as  %  of  GDP)  have been 
increasing  since  the  global  financial  crisis,  but 
collection remains a challenge.  

social 

from 

Recent reforms have lowered Greece’s labour 
tax burden, which is currently lower than the 
EU  average  at  various  wage  levels.  Graph 
A19.2 shows that the labour tax wedge for Greece 
in 2022 was lower than the EU average at various 
wage  levels.  Second  earners  at  a  wage  level  of 
67%  of  the  average  wage,  whose  spouses  earn 
the average wage, are subject to a tax wedge that 
is  also  lower  than  the  EU  average.  Greece  is 
planning  to  further  lower  the  tax  wedge  by 
supressing 
the  special  solidarity  contribution 
income  tax  surcharge  for  all  employment  and 
pension  income  from  2023.  This  cut  follows 
temporary and permanent reductions in the social 
contribution  rates  over  recent  years.  Despite  the 
fact  that the progressivity of the tax system is in 
line  with  the  EU  average,  the  tax  and  benefit 
system reduces income inequality, as measured by 
the Gini coefficient, by less than the EU average in 
2021 (Table A19.1). 

Greece  is  continuing  to  digitalise  its  tax 
administration,  with  the  aim  to  combat  tax 
evasion,  reduce  tax  arrears  and  reduce 
compliance  costs  for  taxpayers.  Outstanding 
tax  arrears  increased  by  36.7  pps  between  2019 
and  2020  to  228.3%  of  total  net  revenue,  in  line 
with the EU trend for the same period and before 
the 
implementation  of  recent  measures.  The 
impact of measures taken in light of the COVID-19 
pandemic  to  support  taxpayers  should  be  taken 

Table A19.1: Taxation indicators 

(1) Forward-looking effective tax rate (OECD). 
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average 
For more data on tax revenues as well as the methodology applied, see European Commission, Directorate-General for Taxation 
and Customs Union, Taxation trends in the European Union: data for the EU Member States, Iceland, Norway and United Kingdom: 
2021 edition, Publications Office of the European Union, 2021, https://data.europa.eu/doi/10.2778/843047 and the Data on 
Taxation webpage, https://ec.europa.eu/taxation_customs/taxation-1/economic-analysis-taxation/data-taxation_en. For more 
details on the VAT gap, see European Commission, Directorate-General for Taxation and Customs Union, VAT gap in the EU: report 
2022, Publications Office of the European Union, 2022, https://data.europa.eu/doi/10.2778/109823. 
Source: European Commission, OECD. 

74 

2010201920202021202220102019202020212022Total taxes (including compulsory actual social contributions) (% of GDP)32.339.538.839.437.939.940.040.6Labour taxes (as % of GDP)13.716.417.417.120.020.721.320.9Consumption taxes (as % of GDP)12.014.914.114.510.811.110.711.2Capital taxes (as % of GDP)6.68.27.37.77.18.18.08.5Total property taxes (as % of GDP)2.03.33.43.21.92.22.22.2Recurrent taxes on immovable property (as % of GDP)1.02.42.62.41.11.21.21.1Environmental taxes as % of GDP2.73.93.83.92.42.42.22.2Tax wedge at 50% of average wage (Single person) (*)34.432.632.129.929.733.932.331.932.131.7Tax wedge at 100% of average wage (Single person) (*)40.040.438.937.137.141.040.139.939.639.7Corporate income tax - effective average tax rates (1) (*)23.023.021.019.519.419.1Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)5.54.24.43.78.67.78.17.8Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)191.5228.331.640.7VAT Gap (% of VAT total tax liability, VTTL)23.419.711.09.1GreeceEU-27Tax structureProgressivity & fairnessTax administration & compliance 
 
 
 
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Graph A19.1: Tax revenues from different tax types as % of total taxation 

Source: European Commission 

duly into account in interpreting these figures. The 
VAT  gap  (the  gap  between  revenues  actually 
collected  and  the  theoretical  tax  liability)  remains 
high but declined from 23.4% in 2019 to 19.7% in 
2020.  However,  it  remained  well  above  the  EU-
wide  gap  of  9.1%.  Moreover,  when  analysing  the 
drivers behind the improvement in the VAT gap in 
the  recent  years,  the  loss  of  revenues  from 
reduced rates and exceptions more than offset the 
improvements  in  compliance.  To  improve  tax 
compliance,  the  Greek  RRP 
includes  specific 
measures for the modernisation and digitalisation 
of  the  tax  administration,  including  tax  collection 
and  incentives  to  increase  electronic  transactions. 
The digitalisation of tax audits and controls could, 
when  combined  with  the  planned  acceleration  of 
VAT refunds, improve tax collection.  

Graph A19.2: Tax wedge for single and second 
earners as a % of total labour costs, 2022 

Second earner tax wedge assumes first earner at 100% of 
the average wage and no children.  
Source: European Commission 

75 

29.732.537.142.233.720253035404550100150Tax wedge, % of total labour costsEarnings in % of the average wageSingle earner - ELSingle earner - EU averageSecond earner -  ELSecond earner -  EU average51.4327.5421.0143.5436.8919.57Tax revenue shares in 2021, Greece (outer ring) and the EU (inner ring)Taxes on labourTaxes on consumptionTaxes on capital7.764.322.061.000.160.196.072.642.022.75024681012Greece -environmentaltaxationEU -environmentaltaxationGreece - propertytaxationEU - propertytaxationEnvironmental and property taxation as % of total tax revenue, Greece and the EUEnergy taxesTransport taxesResource/pollution taxesRecurrent property taxesOther property taxes 
       
  
 
 
 
 
 
       
 
ANNEX 20: TABLE WITH ECONOMIC AND FINANCIAL INDICATORS 

Table A20.1: Key economic and financial indicators 

(1) Domestic banking groups and stand-alone banks, EU and non-EU foreign-controlled subsidiaries and EU and non-EU foreign-
controlled branches. 
(2) Net international investment position (NIIP) excluding direct investment and portfolio equity shares.  
Source: Eurostat and ECB as of 2 May 2023, where available; European Commission for forecast figures (Spring forecast 2023). 

76 

2004-072008-122013-1920202021202220232024Real GDP (y-o-y)3.6-5.50.3-9.08.45.92.41.9Potential growth (y-o-y)3.0-1.0-1.7-0.8-0.30.41.01.5Private consumption (y-o-y)3.4-4.30.2-7.75.87.81.61.4Public consumption (y-o-y)5.1-3.3-1.12.62.2-1.6-0.2-1.4Gross fixed capital formation (y-o-y)5.8-17.7-0.91.120.011.77.26.0Exports of goods and services (y-o-y)9.3-1.95.3-21.524.14.96.55.2Imports of goods and services (y-o-y) 8.3-7.84.4-7.317.710.24.73.8Contribution to GDP growth:Domestic demand (y-o-y)4.6-7.0-0.2-4.76.96.52.11.6Inventories (y-o-y)-0.3-0.70.31.30.82.4-0.1-0.1Net exports (y-o-y)-0.82.10.2-5.60.7-3.00.50.4Contribution to potential GDP growth:Total Labour (hours) (y-o-y)0.70.9-0.2-0.7-0.7-0.30.10.3Capital accumulation (y-o-y)0.90.1-0.4-0.3-0.10.00.10.2Total factor productivity (y-o-y)1.3-2.0-1.10.20.50.70.80.9Output gap1.7-8.3-12.5-13.8-6.3-1.10.30.8Unemployment rate9.714.723.217.614.712.512.211.8GDP deflator (y-o-y)3.11.5-0.6-0.91.38.14.72.9Harmonised index of consumer prices (HICP, y-o-y)3.22.9-0.1-1.30.69.34.22.4HICP excluding energy and unprocessed food (y-o-y)3.22.0-0.1-1.0-0.75.75.72.5Nominal compensation per employee (y-o-y)5.1-0.9-2.8-0.62.30.33.62.8Labour productivity (real, hours worked, y-o-y)1.7-3.5-0.52.6-1.40.31.11.1Unit labour costs (ULC, whole economy, y-o-y)3.12.8-1.87.2-3.1-1.71.91.5Real unit labour costs (y-o-y)0.01.3-1.18.2-4.3-9.1-2.6-1.3Real effective exchange rate (ULC, y-o-y)1.40.6-3.02.9-3.3-5.3-3.6-2.0Real effective exchange rate (HICP, y-o-y)0.80.2-0.5-0.3-1.1-0.3..Net savings rate of households (net saving as percentage of net disposable income)-0.7-6.8-13.2-5.1-3.2...Private credit flow, consolidated (% of GDP)14.41.8-2.25.1-0.1...Private sector debt, consolidated (% of GDP)88.7125.6124.5124.9120.7...of which household debt, consolidated (% of GDP)38.159.260.959.555.5...of which non-financial corporate debt, consolidated (% of GDP)50.666.563.665.465.2...Gross non-performing debt (% of total debt instruments and total loans and advances) (1).9.135.022.27.1...Corporations, net lending (+) or net borrowing (-) (% of GDP)5.17.26.52.30.9-0.5-0.4-0.1Corporations, gross operating surplus (% of GDP)19.018.016.615.016.918.618.919.0Households, net lending (+) or net borrowing (-) (% of GDP)-7.9-4.7-4.01.71.2-5.0-4.1-3.7Deflated house price index (y-o-y)4.6-6.5-1.95.76.63.3..Residential investment (% of GDP)9.95.61.01.11.31.6..Current account balance (% of GDP), balance of payments-10.8-10.0-1.6-6.6-6.8-9.7-7.3-6.0Trade balance (% of GDP), balance of payments-9.1-7.2-1.3-6.8-7.6-9.4..Terms of trade of goods and services (y-o-y)-0.1-0.30.8-0.8-1.14.61.91.0Capital account balance (% of GDP)1.41.20.81.72.21.5..Net international investment position (% of GDP)-79.7-94.2-140.8-173.8-171.9-141.3..NENDI - NIIP excluding non-defaultable instruments (% of GDP) (2).-96.2-130.6-155.1-150.2-118.2..IIP liabilities excluding non-defaultable instruments (% of GDP) (2).189.9240.3300.8304.8260.2..Export performance vs. advanced countries (% change over 5 years)12.7-5.1-8.0-10.214.6...Export market share, goods and services (y-o-y)0.9-5.91.1-19.720.11.03.81.4Net FDI flows (% of GDP)0.1-0.1-1.3-1.4-2.4-2.2..General government balance (% of GDP)-6.9-11.3-2.9-9.7-7.1-2.3-1.3-0.6Structural budget balance (% of GDP)..5.0-3.1-4.7-2.2-1.5-1.0General government gross debt (% of GDP)104.2144.2180.3206.3194.6171.3160.2154.4forecast 
 
 
 
      
 
 
 
ANNEX 21: DEBT SUSTAINABILITY ANALYSIS 

This  Annex  assesses  fiscal  sustainability 
risks  for  Greece over the  short, medium  and 
long term. It follows the same multi-dimensional 
approach  as  the  European  Commission’s  2022 
Debt Sustainability Monitor, updated based on the 
Commission 2023 spring forecast. 

fiscal 

1  -  Short-term  risks  to  fiscal  sustainability 
low  overall.  The  Commission’s  early-
are 
detection  indicator  (S0)  does  not  signal  major 
(Table A21.2) (111). 
short-term 
risks 
Government gross financing needs are expected to 
decrease to around 10% of GDP in the short term 
(i.e.  over  2023-2024) 
(Table A21.1, Table 1). 
Greece’s sovereign credit rating has been steadily 
improving  but  remains  below  investment  grade 
reflecting  the  financial  markets’  perceptions  of 
sovereign risk. 

2  -  Medium-term  fiscal  sustainability  risks 
appear high overall.   

The  DSA  for  Greece,  under  the  baseline, 
shows  that  the  government  debt-to-GDP 
ratio  is  expected  to  decline  but  remain  at  a 
high level over the medium term (at 126.1% 
(Graph 1) (112) (113).  The  assumed 
in  2033) 
structural  primary  balance  (SPB)  (a  surplus  of 
2.1% of GDP) supports these developments, and it 
appears  ambitious  compared  with  past  fiscal 
performance,  suggesting  limited  room  for  policy 

(111) The S0 is a composite indicator of short-term risk of fiscal 
stress. It is based on a wide range of macro-financial and 
fiscal variables that have proven to perform well in the past 
in detecting situations of upcoming fiscal stress.  

(112) The assumptions underlying the Commission’s ‘no-fiscal 
policy change’ baseline notably comprise: (i) a structural 
primary surplus, before ageing costs, of 2.1% of GDP as of 
2024; (ii) inflation converging linearly towards the 10-year 
forward inflation-linked swap rate 10 years ahead (which 
refers to the 10-year inflation expectations 10 years from 
now); (iii) the nominal short- and long-term interest rates on 
new and rolled over debt converging linearly from current 
values to market-based forward nominal rates by T+10; (iv) 
real GDP growth rates from the Commission 2023 spring 
forecast until 2024, followed by EPC/OGWG ‘T+10 
methodology projections between T+3 and T+10 (average of 
0.8%); (v) ageing costs in line with the 2021 Ageing Report 
(European Commission, Institutional Paper 142, November 
2020). For information on the methodology, see the 2022 
Debt Sustainability Monitor. 

action (114).  At  the  same  time,  the  baseline 
projections  up  to  2033  benefit  from  a  still 
favourable  snowball  effect  until  2030,  notably 
thanks  to  the  impact  of  Next  Generation  EU 
(NGEU),  with  real  GDP  growth  at  around  0.8%  of 
GDP over 2025-2033. Government gross financing 
needs are expected to remain broadly stable over 
the projection period; they are projected at around 
11.5%  on  average  over  the  projection  period, 
slightly above the level forecast for 2024.  

the 

The  baseline  projections  are  stress-tested 
against  four  alternative  scenarios  to  assess 
the  impact  of  changes  in  key  assumptions 
(Graph 1). For Greece, reverting to historical  fiscal 
trajectories under the ‘historical structural primary 
balance’  scenario  would  support  the  reduction  of 
the  government  debt  ratio.  If  the  SPB  gradually 
converged its historical  15-year average (3.3% of 
GDP),  the  projected  debt-to-GDP  ratio  would  be 
about 8 pps. lower than in the baseline in 2033. A 
the  macro-financial 
permanent  worsening  of 
conditions,  as 
‘adverse 
reflected  under 
interest-growth rate differential’ scenario (i.e. 1 pp. 
higher  than  the  baseline)  would  result  in  a 
persistently  higher  government  debt-to-GDP  ratio, 
by around 10% of GDP by 2033, as compared with 
the  baseline.  A  temporary  worsening  of  financial 
conditions,  as  reflected  in  the  ‘financial  stress 
‘scenario (i.e. temporarily increase of interest rates 
by 5.9 pps.), would lead to a slightly higher public 
debt-to-GDP  ratio  by  2033  (around  +9%  of  GDP) 
compared  with  the  baseline.  The  ‘lower  structural 
primary  balance’  scenario 
the  forecast 
improvement  in  the  SPB  over  2023-2024  is 
reduced  by  half  of  the  cumulative  forecast 
change)  would  also  lead  to  a  significantly  higher 
government  debt-to-GDP  ratio  by  2033  (about 
+11% of GDP) compared with the baseline.  

(i.e. 

Stochastic  projections  show  a  medium 
sensitivity  of  these  projections  against 
plausible  unforeseen  events  (115). 
These 
stochastic  simulations  point  to  a  10%  probability 

(114) This assessment is based on the consolidation space 

indicator, which takes into account all available data from 
1980 to 2021. The structural primary balance of +2.1% of 
GDP would be considered much less ambitious if compared 
with a shorter time horizon, for instance of the last 15 years. 

(113) Table 1 shows the baseline debt projections and its 

(115) The stochastic projections show the joint impact on debt of 

breakdown into the primary balance, the snowball effect (the 
combined impact of interest payments and nominal GDP 
growth on the debt dynamics) and the stock-flow 
adjustment.  

2000 different shocks affecting the government’s budgetary 
position, economic growth, interest rates and exchange rates. 
This covers 80% of all the simulated debt paths, therefore 
excluding tail events. 

77 

 
 
                                                 
                                                 
 
 
reduces the fiscal space (contribution of +2.0% of 
GDP)  (Table A21.1, Table 2).  This  assessment  is 
conditional  to  the  country  maintaining  a  high 
structural primary balance over the long term. 

Finally,  several  additional  risk  factors  need 
to  be  considered  in  the  assessment.  On  the 
one hand, risk-increasing factors are related to the 
recent  increase  in  interest  rates,  in  particular  the 
state  guarantees  granted  recently,  also  in  the 
context  of 
the  COVID-19  crisis.  Significant 
contingent liability risks continue to stem from the 
still  relatively high  share of  non-performing  loans 
in the banking sector (although the share of non-
performing  loans  witnessed  a  sharp  reduction  in 
the  previous  years),  and  the  costs  linked  to 
pending  legal  cases  against  the  state  also  pose 
fiscal  risks.  On  the  other  hand,  risk-mitigating 
factors are related to the structure of the debt. In 
particular,  the  major  share  of  debt  is  held  by 
official  lenders  at  low  interest  rates  and  has  a 
particularly long maturity structure compared with 
peer countries. The currency denomination of debt 
also  mitigates  risks.  In  addition,  the  structural 
reforms under the NGEU/RRF, if fully implemented, 
could  have  a  further  positive  impact  on  GDP 
growth in the coming years, and therefore help to 
mitigate debt sustainability risks. 

of  the  debt  ratio  in  2027  being  greater  than  in 
2022,  entailing  medium  risk  given  the  initial  high 
level  of  debt.  In  addition,  such  shocks  point  to 
substantial uncertainty (i.e. the difference between 
the  10th  and  90th  debt  distribution  percentiles) 
the  government  debt  baseline 
surrounding 
projections (Graph 2).  

3  -  Long-term  fiscal  sustainability  risks  for 
Greece appear low overall (116). 

indicator  points  to 

The  S2 
low  fiscal 
sustainability  risks.  The  indicator  shows  that, 
relative to the baseline, the SPB would not need to 
improve to ensure debt stabilisation over the long 
term.  This  result  is  underpinned  by  the  projected 
in  ageing-related  costs  (contribution 
decrease 
of  -1.8%  of  GDP)  and  a  favourable 
initial 
budgetary  position  (-0.9%  of  GDP).  Ageing  costs’ 
developments are primarily driven by the projected 
expenditure 
decrease 
(contribution of -1.9% of GDP), which is only partly 
offset  by  the  projected  increase  in  health  care 
spending 
(contribution  of  +0.6%  of  GDP) 
(Table A21.1, Table 2).  

pension 

public 

of 

long-term 

combined  with 

When 
long-term  debt 
vulnerabilities,  as  highlighted  by  the  S1 
risks  are 
indicator,  overall 
assessed  as  low.  Indeed,  the  S1  sustainability 
gap  indicator  (at  -1.5%  of  GDP)  signals  that  the 
country  doesn’t  need  to  further  improve  its  fiscal 
position  to  reduce  its  debt  to  60%  of  GDP  by 
2070.  This  result  is  mainly  driven  by  the  current 
very 
position 
(contribution  of  -2.4 pps.)  and  the  projected 
decline 
spending 
(contribution  by  -1.1%  of  GDP).  However,  the 
current  distance  of  the  Greek  government  debt 
ratio  from  the  60%  reference  value  partially 

ageing-related 

favourable 

budgetary 

public 

initial 

in 

(116)The S2 fiscal sustainability indicator measures the 

permanent SPB adjustment in 2024 that would be required 
to stabilise public debt over the long term. It is 
complemented by a revised S1 indicator, which measures the 
fiscal gap in 2024 to bring the debt-to-GDP ratio to 60% in 
the long term. For both S1 and S2 indicators, the risk 
assessment depends on the amount of fiscal consolidation 
needed: ‘high risk’ if the required effort exceeds 6 pps. of 
GDP, ‘medium risk’ if it lies between 2 pps. and 6 pps. of 
GDP, and ‘low risk’ if the effort is negative or below 2 pps. of 
GDP. The overall long-term risk classification brings together 
the risk categories derived from S1 and S2. S1 may notch up 
the risk category derived from S2 when it signals a higher 
risk than S2. See the 2022 Debt Sustainability Monitor for 
further details. 

78 

 
                                                 
Table A21.1: Debt sustainability analysis - Greece 

Source: Commission services. 

Table A21.2: Heat map of fiscal sustainability risks - Greece 

Source: Commission services. 

79 

Table 1. Baseline debt projections20202021202220232024202520262027202820292030203120322033Gross debt ratio (% of GDP)206.3194.6171.3160.2154.3149.2144.8140.2135.1130.4126.1122.1118.3126.1Changes in the ratio25.7-11.7-23.3-11.0-5.9-5.1-4.4-4.6-5.1-4.7-4.3-4.0-3.87.8of whichPrimary deficit6.74.7-0.1-1.9-2.5-2.6-2.7-2.7-2.7-2.7-2.8-2.7-2.7-2.9Snowball effect22.6-16.0-22.2-8.3-4.3-2.9-2.2-1.6-1.3-0.8-0.40.00.2-0.1Stock-flow adjustments-3.6-0.4-0.9-0.81.00.40.3-0.6-1.1-1.2-1.2-1.2-1.310.8Gross financing needs (% of GDP)17.818.913.39.611.010.011.311.511.611.511.812.011.613.8S1S2Overall index  (pps. of GDP)-1.5-2.8of which Initial budgetary position-2.4-0.9Debt requirement2.0Ageing costs-1.1-1.8of which    Pensions-1.2-1.9     Health care0.50.6     Long-term care0.00.0Others-0.4-0.5Table 2. Breakdown of the S1 and S2 sustainability gap indicators608010012014016018020022020202021202220232024202520262027202820292030203120322033Graph 1. Deterministic debt projections Historical SPB scenarioLower SPB scenarioFinancial stress scenarioAdverse 'r-g' scenarioBaseline% of GDPp10p20p40p60p80p90809010011012013014015016017018019020021022020202021202220232024202520262027% of GDPGraph 2. Stochastic debt projections 2023-2027MedianBaselineBaselineHistorical SPBLower SPBAdverse 'r-g'Financial stressOverallHIGHHIGHHIGHHIGHHIGHMEDIUMDebt level (2033), % GDP126.1118.2137.2136.3135.0Debt peak year20222022202220222022Fiscal consolidation space23%22%38%23%23%Probability of debt ratio exceeding in 2027 its 2022 level10%Difference between 90th and 10th percentiles (pps. GDP)57.7(1)Debtlevelin2033.Green:below60%ofGDP.Yellow:between60%and90%.Red:above90%.(2)Thedebtpeakyearindicateswhetherdebtisprojectedtoincreaseoveralloverthenextdecade.Green:debtpeaksearly.Yellow:peaktowardsthemiddleoftheprojectionperiod.Red:latepeak.(3)Fiscalconsolidtationspacemeasurestheshareofpastfiscalpositionsinthecountrythatweremorestringentthantheoneassumedinthebaseline.Green:highvalue,i.e.theassumedfiscalpositionisplausiblebyhistoricalstandardsandleavesroomforcorrectivemeasuresifneeded.Yellow:intermediate.Red:low.(4)Probabilityofdebtratioexceedingin2027its2022level.Green:lowprobability.Yellow:intermediate.Red:high(alsoreflectingtheinitialdebtlevel).(5)thedifference between the 90th and 10th percentiles measures uncertainty, based on the debt distribution under 2000 different shocks. Green, yellow and red cells indicate increasing uncertainty.Short termMedium term - Debt sustainability analysis (DSA)Long termOverall                               (S0)Overall Deterministic scenariosStochastic projectionsS2S1Overall(S1 + S2)LOWHIGHLOWLOWLOW 
 
 
 
 
       
 
 
       
 
ANNEX 22: MACROECONOMIC IMBALANCE PROCEDURE ASSESSMENT MATRIX  

reforms 

impact  of  other 

Hercules  scheme  has  strongly  contributed  to  the 
clean-up  of  banks’  balance  sheets  and  to  the 
development  of  the  secondary  NPL  market,  while 
the 
is  gradually 
materializing. Efforts to step up tax collection and 
to reinforce payment discipline, in conjuntion with 
the  moderation  of  energy  prices,  which  lowered 
the  fiscal  cost  of  the  energy  support  measures, 
contributed  to  a  better  than  expected  fiscal 
primary  balance  already  in  2022.  On  the  labour 
market  front,  measures  to  enhance  job  creation, 
improve  job  quality  and  invest  in  learning  and 
education have started to benefit the resilience of 
the job market.  

by 
tax 

including 

to  continue 

introducing 
ruling 

Going  forward,  the  country’s  imbalances  are 
their  correction 
projected 
supported  by  economic  growth,  although 
Greece  would  benefit  from  further  policy 
action.  Greece’s fiscal policy objectives target at 
in  2023  and 
maintaining  primary  surpluses 
beyond.  Further  measures  would  contribute  to 
addressing  imbalances.  These  include  inter  alia, 
enlarging  the  tax  base  and  strenghtening  tax 
a 
compliance, 
comprehensive  advance 
system. 
Safeguarding 
the  public 
the  efficiency  of 
administration  can  attract  the  right  skills,  while 
maintaining  its  human  resource  costs  at  pre-
levels.  Enhancing  the  efficiency  of 
pandemic 
healthcare 
spending. 
long-term 
Accelerating  the  reduction  of  non-performing 
loans  held  by  banks  and  credit  servicers,  by 
improving  debt  enforcement  and  the  functioning 
of  the  non-performing  loan  secondary  market. 
Further measures  could  be  considered  to improve 
the  business 
Labour  market 
environment. 
activation  support  could  be  made  more  effective, 
with  a  particular  focus  on  young  people  and 
women.  Further  policy  actions,  including  on  the 
fiscal  side,  should  ensure  that  external  balances 
are put on firmly improving path, while promoting 
balanced  growth.  Investment  spending  should  be 
carefully  focussed  on  productive  investment,  to 
ensure 
the  country’s 
borrowing.  

the  sustainability  of 

care 

and 

Based  on  this  assessment,  the  Commission 
considered  in  its  communication  European 
Semester – 2023 Spring Package (COM(2023) 
to 
600 
experience excessive imbalances. 

that  Greece  continues 

final) 

The  Macroeconomic 
Imbalance  Procedure 
matrix presents the main elements of the in-
depth  review  undertaken  for  Greece (117).  
Greece was selected for an in-depth review in the 
in-depth 
2023  Alert  Mechanism  Report.  This 
review  on  the  prevention  and  correction  of 
macroeconomic  imbalances  presents  the  main 
findings  on  the  gravity  and  evolution  of  the 
challenges  identified,  as  well  as  policy  responses 
and potential policy needs. Findings cover all areas 
of vulnerability assessed in the in-depth review.  

long 

vulnerabilities 
standing 
Greece’s 
relating to high public debt and a high stock 
of  non-performing  loans  in  the  context  of 
high  unemployment  have  been  receding,  but 
its  external  position  is  deteriorating.  Greece 
continues to face fiscal sustainability risks, and an 
increased  level  of  public  debt,  which,  however, 
remains  on  a  downward  trajectory.  The  ratio  of 
non-performing  loans  (NPL)  dropped  significantly 
in  2022,  but  still  remains  high,  while  a  large 
amount  of  legacy  non-performing  private  debt  is 
in  the  hands  of  credit  servicers  and  thus  remains 
in  the  economy.  The  current  account  balance 
deteriorated  further,  to  -11.8%  of  GDP  in  2022, 
primarily  as  a  result  of  declines  in  trade  of  both, 
the  energy  and  non-energy  goods.  Greece’s  stock 
of  net  external  liabilities  remains  high,  mainly 
composed  of  public  debt  instruments  held  by 
official sector creditors. At the same time, Greece’s 
private 
a 
economy 
consumption  and  investment  growth  during  its 
recovery  from  the  pandemic.  This  translated  into 
faster growth in domestic demad than in output in 
2022,  leading  to  a  widening  trade  deficit. Despite 
the fact  that the labour market  has absorbed the 
slack  it  accumulated  during  the  pandemic,  the 
unemployment rate remains among the highest in 
the  EU,  disproportionally  affecting  the  youth  and 
women.  

significant 

recorded 

The  authorities  continue  to  take  relevant 
measures  to  facilitate  economic  adjustment, 
including in the context of the Recovery and 
Resilience  Plan  (RRP)  implementation.  On  the 
financial  sector  front,  efforts  continue  to  address 
relevant  deficiencies.  The  recently  phased  out 

(117)  European Commission (2023), In-Depth Review for Greece, 
Commission staff working document (COM(2023) 631 final), 
in accordance with Article 5 of Regulation (EU) No 
1176/2011 on the prevention and correction of 
macroeconomic imbalances.  

80 

 
 
                                                 
 
Table A22.1: Assessment of macroeconomic imbalances matrix 

Source: European Commission 

81 

Gravity of the challengeEvolution and prospectsPolicy responseUnsustainable trends, vulnerabilities and associated risksPublic debtGreece has a high level of public debt, amounting to over 171% of GDP in 2022. The Commission’s fiscal sustainability assessment shows that Greece faces high fiscal sustainability risks over the medium term and low ones in the long run. Greece’s debt is largely extended to official creditors at long maturities and concessional rates, which – together with the large cash buffer – insulates Greek public finances from short-term fluctuations.The debt-to-GDP ratio dropped by almost 25 pps. in 2022, compared to 2021, on the back of the strong increase of nominal GDP and is expected to decrease further in 2023 to 160.2% of GDP and 154.4% in 2024, also reflecting the improvement of the primary fiscal balance. Interest spending going forward will benefit from limited risks due to the majority of creditors being official lenders holding debt at concessional rates. Some policy progress has been made to address the identified public debt vulnerabilities, but futher efforts seem warranted. Greece reached high primary surpluses in the years before the pandemic, which were restored in 2022 and are envisagead to remain in 2023 and beyond. Actions to strengthen tax collection and compliance have contributed to this positive development, including under the RRP, but further efforts are needed. Financial sectorThe banking sector is burdened by a high, albeit considerably reduced, non performing loans ratio (6.4%  in September 2022). Banks’ core profitability has improved and supports the banks’ capital position, which remains the lowest in the euro area (16.2% as of September 2022). The quality of capital remains weak and the link to the Greek sovereign persists. In addition, a large amount of legacy non-performing debt is now in the hands of servicers and its workout remains a challenge for the economy. While domestic government bond holdings are significant, banks have largely protected their balance sheet from sovereign yield volatility by valuing 84% of their sovereign portfolio at amortised cost and applying hedging strategies.Rising interest rates and prices risk eroding borrowers’ debt repayment capacity, posing a risk for banks’ asset quality. Although subject to downside risks, banks’ improved profit outlook is expected to assist a gradual restoration of capital ratios. It is supported by lower impairments, given the strong fall in non-performing loans, as well as new lending and higher interest rate margins. However, they face funding cost increases, while any deterioration in asset quality or retrenchment in credit demand would pose challenges for their profitability.The policy setting is overall consistent with an improvement in financial sector stability. The recently phased out Hercules scheme strongly contributed to the clean-up of banks’ balance sheets, while the impact of other reforms is gradually materializing. The use of out-of-court restructurings by banks and borrowers has picked up but remains modest. The clearance of the dual backlogs of household insolvency cases and called state guarantees has accelerated. The number of e-auctions has risen to the highest number in years, while the still high share of failed auctions is slowly improving, partly as a result of past policy actions. External sustainability and competitivenessThe large current account deficit deteriorated further reaching 11.8% of GDP in 2022, and remains much larger than before the pandemic. A key driver was a faster growth of domestic demand compared to economy’s output. The balance of trade in energy goods also deteriorated markedly on the back of surging energy prices. The current account levels are below what would be required to stabilise Greece’s net international investment position, which improved in 2022 and stood at -141% of GDP. The liabilities are mainly composed of public debt instruments held by official creditors. The current account deficit is forecast to improve in 2023 to 9.2% of GDP in 2023 and 7.8% in 2024, while the net international investment position is expected to remain broadly unchanged in 2023 and 2024.Some policy progress has been made in response to external sustainability and competitiveness vulnerabilities. However, emergy measures taken to address the energy crisis supported buoyant domestic demand. The phase-out of these measures throughout 2023 are expected to reduce the stimulus to domestic demand, although further action would be needed to ensure that domestic demand growth is more in line with output to facilitate sustainable external deficits. Potential growth and productivity Potential GDP growth has been negative since 2010, on account of weak total factor productivity growth, declining capital stock and an erosion of the country’s human capital. The large share of micro and small businesses is an aggravating factor as most small and medium-sized enterprises struggle with regulatory barriers and access to finance.  Investment, also supported by the funds under the RRP that is currently being implemented, is expected to yield significant gains in the following years. According to Commission’s estimates, an increase in GDP growth of 2.1 to 3.3 pps over the period 2021-2026 is expected from the combined effect of the RRP grants and loans is expected, without considering the potential positive impact from the structural reforms. This is reflected in the potential growth turning positive in 2022 and estimated at 1.0% and 1.5% in 2023 and 2024.A series of measures to enhance the growth potential and incentivise productivity growth are envisaged, mainly in the context of the RRP. Further measures could be considered to improve the business environment, for instance by completing the cadastre project and expediting the environmental permitting procedures.Labour market and unemploymentAt 12.5% in 2022, unemployment remains among the highest in the EU and it disproportionally affects the youth (24.2%) and women (15.2%). Long-term unemployment (9.2% in 2021) is also among the highest in the EU. Despite gradually increasing, the employment rate stood at 66.1% in Q3 2022, 8.6 percentage points below the EU average.Unemployment has been decreasing almost steadily since mid-2013, including during the pandemic. It is expected to decrease further in 2023. Employment has fully recovered the losses it suffered during the pandemic, standing almost 6 pps. above its pre-pandemic level, and is expected to increase further in 2023, also supported by the RRP implementation and the continued good performance in the tourism sector.The labour market is expected to benefit from the various measures of Greece’s RRP, including from a sizeable increase in activation programmes and the administrative upgrading of the Greek public employment service. Nevertheless, there remains scope to further increase the employability of young people and women who face higher unemployment rates.