COMMISSION STAFF WORKING DOCUMENT 2024 Country Report - Greece Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Greece
Date: 2024-06-19
Institutions: European Commission, Secretariat-General
Subjects: Greece, budget policy, economic policy, economic recovery, economic reform, employment policy, energy policy, investment policy, social policy, stability pact

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.6.2024  SWD(2024) 608 final  COMMISSION STAFF WORKING DOCUMENT 2024 Country Report - Greece Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Greece {COM(2024) 608 final} - {SWD(2024) 600 final}  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC AND EMPLOYMENT SNAPSHOT 

headline budget deficit, the public debt-to-GDP 
ratio declined from its peak of 207% in 2020 
to  172.7%  in  2022  and  then  to  161.9%  in 
2023.  While  it  is  still  the  highest  in  the  EU,  
liquidity  and  rollover  risks  are  limited  as  a 
substantial part of Greece’s public debt is held 
by  official  creditors  at  concessional  rates  and 
terms.  Furthermore,  in  2023,  after  more  than 
a  decade,  Greece’s  credit  rating  returned  to 
investment grade according to three out of the 
four major rating agencies. 

Graph 1.1: Trade and current account balances 

Source: Bank of Greece 

The  external  balance  improved  markedly 
in  2023  but  remains  below  its  pre-
pandemic level. The post-pandemic recovery 
and the energy crisis have led to a widening of 
the  current  account  deficit,  which  peaked  at 
10.3%  of  GDP  in  2022,  implying  a  significant 
increase  in  Greece’s  net  liabilities  to  foreign 
creditors 
external 
investors 
liabilities’). In 2023, the current account deficit 
narrowed  to  6.3%  of  GDP,  largely  driven  by 
the  reduction  of  energy  prices  (Graph  1.1). 
Greece’s  net  external  liabilities  declined  to 
140.5%  of  GDP  by  2023,  substantially  below 
their peak of 174.3% recorded in 2020. While 
they  remain  the  highest  in  the  EU,  the 
medium-term  risks  associated  with  external 

(‘net 

and 

Economic growth is set to remain 
solid 

After swiftly recovering from the COVID-
19  shock,  Greece’s  real  GDP  growth 
remains  well  above  the  EU  average (1). 
Following  the  rapid  post-pandemic  pick-up  in 
2021 and 2022, when the annual growth rate 
averaged  7%,  real  GDP  increased  by  2%  in 
2023. Consumer spending stayed solid, fuelled 
by  income  growth,  while  tourism  revenue 
picked  up  and  net  exports  strengthened.  By 
contrast, after very strong growth in 2021 and 
2022,  investment  decelerated  in  2023  as 
interest rates inched upward. However, capital 
accumulation has been supported by a strong 
take-up  of  loans  under  the  Recovery  and 
is 
Resilience  Facility 
expected  to  pick  up  slightly  to  2.2%  in  2024 
and  2.3%  in  2025  and  to  continue  to  exceed 
its  long-term  potential,  supported  by  strong 
investment due to easing credit conditions and 
significant EU funding. 

(RRF).  GDP  growth 

Inflation  is  set  to  continue  its  gradual 
decline.  HICP  (consumer  price)  inflation    fell 
from  9.3% 
in  2023, 
in  2022  to  4.2% 
1.2 percentage  points  (pps)  below  the  euro 
area  average.  Although  price  pressures  from 
previous  energy  price  shocks  have  been 
fading,  steady  wage  growth  and  persistent 
food inflation are expected to slow the drop in 
HICP 
inflation.  As  a  consequence,  HICP 
inflation  is  set  to  remain  relatively  high  at 
2.8% in 2024, before falling to 2.1% in 2025. 

The public debt-to-GDP ratio continued to 
decline in 2023 but is still high.  Driven by 
an  increase  in  nominal  GDP  and  a  narrowing 

(1)  The cut-off date for the data used to prepare the 27 

Country Reports was 15 May 2024. 

2 

-20-15-10-50510152008200920102011201220132014201520162017201820192020202120222023% of GDPServices balanceGoods balanceCurrent account balance 
 
 
  
tax credits (3). Furthermore, banks’ profitability 
might  deteriorate  due  to  narrowing  interest 
rate  margins,  potentially  higher  provisioning 
needs  and  rising  funding  costs.  Corporate 
credit  growth  has  slowed  between  December 
2022  and  September  2023,  amid  tightening 
financial conditions. However, it has performed 
well  compared  to  other  euro  area  countries, 
supported  by  the  strong  take-up  of  loans 
under  the  RRF.  By  contrast,  household  credit 
growth has been negative since 2010. 

to 

continues 

Despite  the  strong  recent  performance, 
Greece 
exhibit 
macroeconomic vulnerabilities. An in-depth 
review  was  carried  out  as  part  of  the 
macroeconomic  imbalance  procedure  earlier 
this  year (4).  It  found  that  Greece’s  long-
standing vulnerabilities receded on all fronts in 
2023  but  warranted  further  adjustment  and 
further 
close  monitoring.  The  expected 
improvement  in  fiscal  balances  is  set  to 
ensure  that  the  public  debt  continues  to 
decline.  The  current  account  deficit  narrowed 
markedly in 2023 but remained high; external 
rebalancing is challenging amid high consumer 
spending  (as  a  share  of  GDP)  and  increasing 
investment. In the meantime, the reduction of 
the  net  external  liability  ratio  (net  external 
liabilities  as  a  share  of  GDP)  would  require  a 
more  pronounced  improvement  in  external 
balances.  The  unemployment  rate  declined  in 
2023  but  remains  among  the  highest  in  the 
EU.  The  stock  of  non-performing  loans  (NPL) 
held  by  banks  also  continued  to  decline  in 
2023; however, only limited progress has been 
made  in  reducing  the  NPL  portfolio  held  by 
servicers,  which  continues  to  weigh  on  the 
economy (Annex 18).  

are  mitigated 

the 
indebtedness 
concessional  nature  of  a  large  part  of  the 
external  debt.  The  external  rebalancing  is 
expected to continue in 2024 and 2025, albeit 
more slowly. 

by 

The  labour  market  continued  to  improve 
in  2023,  but  it  still  faces  significant 
challenges.  Employment growth  picked  up in 
2023, and the employment rate rose to 67.9% 
in  the  fourth  quarter  of  2023  (20-64  age 
group).  The  latter  was  above  pre-pandemic 
levels,  but  still  below  the  EU  average  of 
75.5%.  The  unemployment  rate  declined  in 
2023  reaching  10.2%  in  March  2024  (Graph 
1.2).  Meanwhile,  several  sectors  of 
the 
economy  report  labour  shortages  and  skills 
mismatches  and 
rates 
continue  to  be  major  challenges.  Employment 
is  expected  to  continue  growing  in  2024  and 
2025, albeit more slowly. 

low  participation 

Graph 1.2: Selected labour market indicators 

Source: Eurostat 

improved  and  capital 

Banks’  longer-term  profitability  and  the 
quality of capital remain a concern. Banks’ 
ratios 
profitability 
increased  in  2023,  but  are  still  the  second 
lowest in the EU (2). Moreover, concerns persist 
about  the  quality  of  regulatory  capital  due  to 
the  high,  albeit  decreasing,  share  of  deferred 

(2)  Banks’ average Common Equity Tier 1 and Total Capital 
ratios stood at 14.3% and 17.6% in September 2023. 

(3)  These deferred tax credits accounted for 44% of total 

prudential own funds in December 2023 at 
consolidated level. 

(4)  European Commission (2024), SWD(2024) 102 final. 

3 

05101520253001020304050607080200920102011201220132014201520162017201820192020202120222023% of labour force% of populationYouth employment rate (15-24)Female employment rate (20-64)Total employment rate (20-64)Unemployment rate (right hand scale) 
  
 
 
Box 1: 

Greece’s competitiveness in brief 

Greece’s competitiveness has started to improve, supported by strong reform momentum 
in business and public administration and a reduction in the administrative burden on companies. 
Greece increased its export market share in world exports from 0.29% in 2016 to 0.36% in 2022, 
recording the highest export market share gain among all EU member states. The country’s trade 
integration  into  the  single  market  also  increased  from  17.8%  in  2018  to  23.1%  in  2022  but 
remains far from the EU average (Annex 12). 

However, competitiveness challenges remain: 

•  The business environment is held back  by the relatively heavy and frequently changing 
regulatory and administrative framework that lacks transparency, and a legal system that is 
not considered efficient enough and protective of property rights; 

•  Regulatory barriers, the shadow economy and limited access to finance, especially 
for SMEs, continue to hamper competition, private investment, and productivity growth; 

•  Skill  mismatches,  low  education  outcomes  in  basic  skills  and  lack  of  proper 

incentives still discourage people from looking for work and restrain innovation. 

by  businesses  (Annex  11).  Meanwhile,  the 
education  system’s  performance  is  mixed. 
There are good results in reducing the number 
of students leaving school early and achieving 
higher  rates  of  post-secondary  educational 
attainment.  However,  there  are  also  poor  and 
deteriorating results in basic skills as reflected 
in  the  recent  Programme  for  International 
Student Assessment (PISA) survey of the OECD 
(Annex 15). 

recorded 

significant 

cost 
Greece 
competitiveness  gains  over  the 
last 
decade. Unit labour costs (labour cost per unit 
of  output)  declined  by  more  than  10  pps 
between  2009  and  2019  owing  to  the 
substantial  wage  cuts  during  that  period. 
Looking ahead, although unit labour costs  are 
projected  to  increase,  the  pace  is  expected  to 
be  comparable 
trading 
partners.  This  means  that  Greece  is  likely  to 
retain  its  competitiveness  gains.  However, 
although  Greece  has  been  exporting  higher 
volumes of high-tech goods more recently, the 
country’s comparative advantage continues to 
be  largely  in  products  with  relatively  low 
technological sophistication. 

the  country’s 

to 

Non-cost  competitiveness 
challenge 
despite 
Greece’s competitiveness ranking has  

recent 

remains  a 
progress. 

Boosting labour productivity is key 
for long-term competitiveness 

Labour productivity has been rising but is 
still  well  below the  EU  average.  Following 
a  decade  of  decline,  real  labour  productivity 
started to increase in 2021 at rates above the 
EU average, partly due to the COVID-19 crisis 
that  triggered  the  digital  transformation  of 
businesses.  However,  despite  the  recent  pick-
up  in  investment,  the  legacy  of  subdued 
investment  over  the  previous  decade  has 
hampered  productivity  developments.  At 
sectoral  level,  the  largest  productivity  gains 
were  generated  by  manufacturing  and  in 
service  sectors,  except  for  tourism  activities, 
while since 2018, the largest losses have been 
recorded  in  the  energy  and  mining  sectors. 
Overall, Greece continues to have a substantial 
productivity gap with the rest of the EU. GDP in 
purchasing  power  standards  per  hour  worked 
corresponded  to  57.4%  of  the  EU  average  in 
2023 (Annex 12). 

Relatively  low  R&D  spending  and  skills 
gaps  continue  to  hamper  productivity. 
Despite having increased significantly in recent 
years,  R&D  expenditure  amounted  to  1.5%  of 
GDP  in  2022,  below  the  EU  average  of  2.2%, 
mostly due to low, though increasing, spending 

4 

 
 
Box 2: 

UN Sustainable Development Goals (SDGs) 

Greece  is  progressing  on  all  SDG  indicators  related  to  competitiveness  and 
productivity (SDGs 4, 8, 9), although it needs to catch up with the EU average. SDGs 4 
and 9 related to education and innovation performance have seen mixed results. In 2022, Greece 
performed better than the EU average in reducing the number of students leaving school early 
and  increasing  post-secondary  educational  attainment.  However,  there  are  still  significant 
challenges with the basic skills of 15-year-olds (Annex 15), adult learning participation and R&D 
spending.  Decent  work  and  economic  growth  indicators  (SDG 8)  continue  to  improve  but  still 
need to catch up with EU average, as shown by the low employment rate and the high proportion 
of long-term unemployed people and of young people not in education, employment or training 
relative to the EU (Annex 1). 

Out  of  the  17  SDGs  indicators,  15  remain  below  the  EU  average.  Besides  those  highlighted 
above,  these  relate  to  environmental  stability  (SDGs 2,  6,  11,  12,  13),  fairness  (SDGs 3  and  5) 
and  macroeconomic  stability  (SDG 16).  There  is  room  for  further  improvement,  particularly  in 
tackling unemployment, inequalities and poverty, especially in rural areas (Annex 1). Despite this, 
Greece  fares  better  than  in  the  past  in  several  areas  of  fairness,  productivity  and 
macroeconomic  stability.  EU  funds  such  as  the  RRF  and  cohesion  policy  funds  are  key  to 
supporting Greece’s efforts to meet its SDGs (Annexes 3 and 4) and its 2030 national targets on 
employment, skills and poverty reduction (Annexes 5 and 14). 

the 

recovery  and 

improved  since  2019 (5).  Besides  reforms 
under 
resilience  plan 
(Section 2), this improvement  has been driven 
by  the  ongoing  digital  transformation  of 
businesses  and  the  steady  reduction  of  the 
administrative  burden  on  them.  However, 
further  efforts  are  needed  to  improve  the 
business  climate  that  is  weakened  by  the 
inefficient  procurement  system,  a  high 
proportion of single bid procurements (50% in 
2023),  regulatory  restrictions,  an  inefficient 
environmental  licensing  system  and  caps  on 
the  price  of  certain  product  groups (6) 
(Annex 12). 

The 

sovereign 

The  legacy  of  subdued  investment  has 
hampered  economic  convergence  to  the 
crisis  was 
EU. 
accompanied by a more than 60% contraction 
in  real  investment  between  2008  and  2016. 
Household  investment  registered  the  largest 
drop,  but  corporate  investment  also  declined, 
Investment 
hindering  productivity  growth. 

debt 

(5)  Greece was ranked 49 (out of 64 countries) in 2023, an 
improvement of 9 places relative to its ranking (58) in 
2019 (see https://www.imd.org/centers/wcc/world-
competitiveness-center/rankings). 

(6)  Since 2020, Greece has capped the price or gross profit 

margins on certain food products, has mandated 
supermarkets to reduce prices for certain ‘basic’ 
products and has extended the circle of goods covered. 

5 

growth  has  picked  up  since  2021,  but  the 
investment-to-GDP  ratio  remains  well  below 
the EU average. In 2023, Greek firms reported 
that  the  main  obstacles  to  investment  were 
uncertainty, high energy costs, unavailability of 
skilled  staff  and  business  regulations. (7). 
including 
Despite 
through the loans of the RRF, the high cost of 
borrowing  and  access  to  finance  constraints 
continue 
investment 
(Annex 18). 

to  adversely  affect 

improvements, 

recent 

Promoting social and territorial 
cohesion remains a key priority 

Working  and 
living  conditions  have 
improved,  but  major  challenges  remain. 
The  Social  Scoreboard  established  following 
the  European  Pillar  of  Social  Rights  paints  a 
mixed  picture.  Despite  recent  increases  in  the 
employment rate, getting into work or training 
is  still  particularly  challenging  for  long-term 
unemployed  people,  people  with  a  disability, 
young people and women. Only around 50% of 
women  are  employed  as  opposed  to  more 

(7)  See EIB Investment Survey Country Overview 2023: 

Greece. 

 
 
 
 
than  70%  of  men,  resulting  in  one  of  the 
largest  gender  employment  gaps  in  the  EU. 
The  social  protection  system  has  a  limited 
ability to reduce poverty and inequalities. After 
increasing  in  2021,  the  proportions  of  people 
and  of  children  (aged  below  16)  at  risk  of 
poverty or social exclusion decreased in 2022 
and 2023, but are still above the EU averages. 
long-term  care  face 
People 
significant  financial  barriers  and  have  high 
unmet needs as there are limited formal long-
term  care  services  that  provide  universal 
coverage.  Energy  poverty  is  high,  and  the 
proportion  of  households  overburdened  by 
housing  costs  was  almost  three  times  higher 
than the EU average in 2022 (Annex 14). 

in  need  of 

is  concentrated 

Regional  disparities  persist.  More  than 
50%  of  Greece’s  population  and  60%  of  its 
economic  activity 
in  the 
(Athens)  and  Central 
regions  of  Attica 
Macedonia (Thessaloniki). This has led to large 
disparities in economic and social performance 
across  the  country.  These  disparities  have 
remained  largely  unchanged  over  the  last 
decade,  even  as  they  have  been  narrowing  in 
the EU. The large differences in GDP per capita 
are  primarily  due  to  inequalities  between  the 
regions  in  innovation,  digital  integration  and 
skills (Annexes 11, 15 and 17). 

6 

 
IMPLEMENTATION OF KEY REFORMS AND 
INVESTMENTS USING EU INSTRUMENTS 

Funding from the Recovery and Resilience 
Facility (RRF) and cohesion policy funding 
is  mutually  reinforcing  Greece’s  efforts 
to  boost  its  competitiveness  and  foster 
In  addition  to  the 
sustainable  growth. 
EUR 35.9  billion  of  RRF  funding  described  in 
Annex 3, cohesion policy provides Greece with 
EUR 20.5  billion for  the  2021-2027  period. 
Support from these two instruments combined 
represents  close  to  25.64%  of  the  country’s 
2023  GDP,  compared  to  an  EU  average  of 
5.38% of GDP (Annex 4). 

Under  its  recovery  and  resilience  plan 
(RRP),  Greece  has  launched  important 
policy  measures  that  are  expected  to 
improve  the  country’s  competitiveness. 
The  RRP  envisages  major  reforms  in  public 
administration and taxation, justice, the labour 
market,  waste  and  water  management, 
electric  vehicles,  and 
renewable  energy 
sources.  Greece  has  also  made  substantial 
investments 
in  the  energy  renovation  of 
buildings,  the  digital  transformation  of  small 
and  medium-sized  companies  (SMEs)  and  the 
digital and green upskilling of its workforce. 

The implementation of Greece´s recovery 
and resilience plan is underway, however 
timely  completion  will  require  further 
efforts.  Greece  has  submitted  four  payment 
requests,  corresponding  to  87  milestones  and 
targets in the plan  and  resulting  in  an  overall 
disbursement  of  EUR  14.88  billion  on  28 
December  2023  (see  Annex  3).  The  size  and 
complexity  of  the  plan,  and  challenges  linked 
to  absorption  capacity,  call  for  accelerating 
investments  and  addressing  risks  of  delays 
while  strengthening  administrative  capacities 
to  ensure  that  reforms  and  investments  can 
be  completed  on  time.  The  Greek  authorities 
have  adopted  measures  to 
improve  the 
implementation  and  boost  administrative 
capacity, while the recovery and resilience plan 
contains  further  specific  measures  that  are 

expected  to  help  achieve  that  objective. 
Specific  challenges  for  Greece  include:  (i) 
lengthy  litigation  processes  to  address  legal 
claims  against  public  procurement  procedures 
risking  delays  in  the  planned  completion  date 
of  investments  beyond  August  2026;  (ii)  slow 
transfer  of  property  rights;  and  (iii)  weak 
coordination,  particularly  evident  as  regards 
investment  and  reforms  covering  policy  areas 
stretching  beyond  the  remit  of  a  single 
Ministry.  The  systematic  involvement  of  local 
and  regional  authorities,  social  partners,  civil 
relevant  stakeholders 
society  and  other 
remains  essential  to  ensure  broad  ownership 
for  the  successful  implementation  of  the 
recovery and resilience plan. 

Cohesion  policy  funding  helps  tackle 
Greece's  growth  and  competitiveness 
challenges  and  reduce  the  country’s 
territorial and social disparities. Under the 
2014-2020  cohesion  policy  programming 
period, support focused on the areas of digital 
connectivity, energy efficiency, solid waste and 
education, 
water  management, 
and 
employment. 
the  current  2021-2027 
programming  period,  support  aims  to  further 
economy,  water 
support 
management,  climate-related  risk  mitigation, 
education  and  skills,  employment,  healthcare 
and long-term care. 

circular 

the 

In 

Removing regulatory and 
administrative barriers to business 

Implementing  RRP  measures  has  eased 
the regulatory and administrative burden 
on  firms.  Greece  improved  the  legislative 
framework for attracting strategic investments 
and  developing  industrial  parks.  This  includes 
the launch of a subsidy scheme to equip these 
parks  with  smart,  energy-efficient  digital 
technologies,  and  measures  to  support  the 

7 

 
 
and 

transactions 

circular  economy.  Greece  also  introduced  tax 
incentives  as  a  first  step  to  encourage 
electronic 
started 
interconnecting  online  cash  registers  and 
point-of-sale  systems  with  tax  authorities.  To 
increase the predominantly small size of Greek 
businesses,  a  law  entered  into  force  in  2022, 
incentives  for 
bringing 
and 
mergers, 
cooperation schemes. 

in  tax  and  other 

conversions, 

acquisitions 

EU funds contribute to making the public 
administration  more  efficient.  Under 
Greece’s  RRP,  a  multi-level  governance  model 
has been adopted to streamline the allocation 
of  responsibilities  among  the  central,  regional 
and  local  public  administration  levels  and 
increase  accountability.  The  country  also 
adopted  a  national anti-corruption  plan  and 
legislation on asset declarations and audits. To 
combat the smuggling of products with excise 
duties,  Greece  put  in  place  a  more  effective 
monitoring  and  sanctions  system.  Building  on 
these  efforts,  the  Commission’s  Technical 
Support  Instrument  (TSI)  is  helping  Greece 
strengthen  its  public  administration,  including 
through  the  development  of  a  task  force 
the 
against 
professionalisation  of  public  procurement 
staff. 

disinformation 

and 

to 

eased 

access 

finance 
Greece 
constraints by making loans available on 
favourable 
terms  and  strengthening 
capital  markets  supervision.  The  RRF  has 
to 
enabled  much-needed 
companies  on  favourable  terms  through  the 
Loan  Facility.  Up  until  March  2024,  280  loan 
contracts  worth  EUR 4.75  billion  in  RRF  loans 
had been signed between financial institutions 
and 
private 
These 
in  green  and  digital  areas, 
investments 

investors. 

financing 

support 

loan 

and 

export 

capacity 

support 
increase 
economies  of  scale  and  innovation.  Out  of 
those approved loan contracts, 136 (48.6% of 
the  total)  were  signed  with  SMEs.  Overall, 
more than a fifth of all new corporate loans in 
Greece  in  2023  came  from  the  RRF.  Greece 
also  made  organisational  changes  to  the 
Hellenic  Capital  Market  Commission  and 
adapted  its  processes  to  improve  market 
supervision and promote non-bank financing. 

Unlocking investments for the 
green and digital transitions 

of 

and 

services. 

taken  major  steps 

Greece  has 
to 
accelerate  the  digital  transformation  of 
the public administration and improve the 
Fully 
its 
accessibility 
complementing cohesion policy funds that will 
support  the  digitalisation  of  more  than  340 
public  institutions  by  2029,  Greece  envisages 
several  measures  under  its  RRP  to  promote  a 
digital  public  administration.  In  particular,  the 
country  has  designed  a  far-reaching  plan  to 
administrative 
simplify 
digitalise 
processes for transactions between individuals 
and  public  services. 
In  this  context,  the 
digitisation  of  archives  in  key  public  sector 
areas, including justice, urban planning and the 
land 
the 
registry  has  started  as  has 
development  of  the  digital  infrastructure  to 
increase the interoperability between different 
registers  and  IT  systems.  Greece  has  also 
launched  investments  in  cybersecurity  and  a 
new 
for  public  procurement. 
Combined  with  the  upskilling  of  250 000 
public sector employees that started under the 
RRP,  these  investments  should  help  make  the 
public  administration  more  efficient  and 

IT  system 

Box 3: 

Combined action for EU funds to have more impact 

To  boost  economic  growth  and  maximise  the  impact  of  EU  funding,  Greece’s  RRP  includes 
reforms that support and complement investments from other EU instruments, creating valuable 
synergies across the different funds. For example, to improve the quality of the national lifelong 
learning  system  and  align  it  with  employers’  needs,  Greece  adopted  a  reform  to  improve  the 
governance  and  delivery  model  of  upskilling  programmes.  This  RRP  reform  is  accompanied  by 
digital and green upskilling programmes for 500 000 unemployed and employed people that are 
also part of the RRP. These measures are being combined with investments under the European 
Social  Fund+  for  training  another  900 000  people,  including  self-employed  people  and  private 
sector employees in precarious jobs or sectors.  

8 

 
 
accessible to the public and businesses. 

The RRP has helped SMEs become greener 
and  more digital. Greece has introduced tax 
incentives and voucher schemes to help SMEs 
invest 
in  advanced  digital  and  green 
technologies:  more  than  500 000  SMEs  will 
have been able to benefit from these schemes 
by  the  end  of  2025.  In  the  manufacturing 
sector, 
launched  a 
voucher  scheme  to  help  SMEs  upgrade  their 
production  methods  through  state-of-the-art 
technologies.  The 
environmentally  friendly 
country  also  launched  a  scheme  to  increase 
energy efficiency in the agricultural sector and 
promote  agrotourism,  which  supports  the 
economic  diversification  and  competitiveness 
of the rural economy. 

in  particular,  Greece 

in 

the  affected 

Making  effective  use  of  various  funding 
sources,  Greece  has  taken  action  to 
eliminate the economic and social impact 
of  phasing  out  lignite.  The  RRP  includes 
regions  of 
investments 
Western Macedonia and Megalopolis, focusing 
on  soil 
redevelopment, 
landscape  and  environment  restoration  and 
changes to land use.  The Just Transition Fund 
complements 
financing 
efforts, 
investments 
in  sustainable  energy,  green 
mobility, upskilling and job creation. These will 
all  help  local  economies  and  communities 
adapt to the ongoing green transition. 

remediation  and 

these 

energy 

sources 

Targeted legislative changes have set the 
ground  for  a  more  extensive  use  of 
renewable 
and 
sustainable  transport.  Greece  simplified 
and  digitalised  licencing  procedures  to  reduce 
barriers  to  investments  in  renewable  energy 
sources  and  offshore  wind  parks.  It  also 
provided  financial  support  for  the  production 
of  renewable  energy.  To  promote  sustainable 
transport,  Greece  modernised 
legal 
framework  for  public  urban  and  regional 
passenger  bus  transport  services,  paving  the 
way  for  a  greener  bus  fleet.  Greece  also 
adopted 
regulatory 
framework to promote installing and operating 
electric  vehicle  charging  points  across  the 
country,  putting  it  on  a  path  to  reach  the 
target  of  having  30%  electric  vehicles  by 
2030. Steps are also being taken to strengthen 

comprehensive 

the 

a 

are 

also 

There 

the  organisation  and  governance  of  the  rail 
infrastructure manager and continue to ensure 
robust  rail  safety,  similar  to  the  efficiency  of 
operations. 
planned 
investments to restore rail tracks destroyed by 
heavy  storms  in  2023.  Building  on  these 
efforts,  Greece  has  committed  to  implement 
the national action plan on rail safety, in which 
Greece  committed  to  deliver  urgently  on  the 
responsiveness  of  the  Greek  safety  authority, 
the  accident  investigation  body  and  the  rail 
network  operators  and  final  safety  related 
deliveries  by  2026.  Enhanced  governance 
would  ensure  making  full  use  of  investments 
in  signalling  and  the  European  Rail  Traffic 
Management  System  (ERTMS).  It  would  also 
help to gradually plan making the rail  system 
climate-proof. 

The improved institutional framework for 
managing  waste,  water  and  wastewater 
has  led  to  more  sustainable  investments 
in these sectors and more efficient use of 
natural  resources.  Investments  of  around 
EUR 800  million  from  cohesion  policy  funds 
support optimal waste management, including 
through  the  rollout  of  recovery  and  recycling 
facilities. Complementing these investments, in 
2021, Greece adopted, under its RRP, a law on 
waste  management 
introduced 
disincentives to landfilling. Greece also created 
a  new  regulatory  authority  for  waste,  energy 
and  water  management 
its 
economy. 
transition 
to 
Complementary 
investments 
from  the  European  Regional  Development 
Fund  and  the  Cohesion  Fund  will  allow  more 
than  870 000  people  to  benefit  from  new  or 
upgraded  wastewater  treatment  facilities  by 
2027. 

the 
infrastructure 

to  support 

circular 

that 

Investing in people for economic 
growth and resilience 

Making use of various EU sources, Greece 
has  taken  measures  to  help  more  people 
get  into  work.  Under  the  RRP,  the  country 
reorganised  the  public  employment  service 
and modernised labour legislation, allowing for 
more  flexible  working  arrangements.  Hiring 

9 

 
and 

people,  women 

subsidies  started  to  apply  and  should  help 
more than 48 000 unemployed people get into 
work by the end of 2025. The European Social 
Fund  (ESF+)  will  provide  another  106 000 
hiring subsidies to  jobseekers with a focus on 
young 
long-term 
unemployed people. The ongoing expansion of 
childcare  facilities  can  also  help  boost  the 
number of people working or looking for work, 
especially  women.  More  than  20 000  new 
childcare  places  are  being  created  under  the 
RRP.  Upon  completion  in  2025,  they  will  be 
complemented  by  measures  under  the  ESF+ 
that will help another 170 000 children access 
childcare services. 

Action under EU instruments help support 
access  to  social  and  health  services.  To 
support  the  independent  living  of  people  with 
a  disability,  Greece  introduced  a  modern, 
tailor-made  personal  assistance  scheme  on  a 
pilot basis under its RRP, paving the way for a 
nationwide launch by mid-2025. A second pilot 
on  early  childhood  intervention  programmes 
for  around  1 400  children  with  a  disability 
aged  up  to  6  years  is  also  under  way.  In 
addition,  to  improve  access  to  healthcare, 
Greece  created  50  mental  health  units  and  is 
in  the  process  of  renovating  80  hospitals 
across  the  country.  These  efforts  will  be 
followed  by  investments  under  the  ESF+  to 
promote  equal  access  to  education  for  more 
than  11 500  pupils  and  students  with  a 
disability  and  set  up  more  than  1 200  social 
and health structures across Greece. 

10 

 
FURTHER PRIORITIES AHEAD 

labour  market  and 

Greece  faces  additional  challenges  with 
the efficiency of its public administration, 
the  functioning  of  the  financial  sector, 
the regulatory framework for businesses, 
the 
the  green 
transition. Tackling these challenges will help 
increase  Greece’s  long-term  competitiveness 
and ensure the resilience of its economy. It will 
also  help  make  further  progress  in  achieving 
the SDGs. 

is 

important  that  the 

It 
identified 
challenges  are  addressed  at  both 
national  and  regional  levels.  Doing  so  will 
reduce  regional  disparities  and  improve  the 
administrative  and  investment  capacity  in  a 
balanced way across the country. 

Staying focused on the 
sustainability of public finances 

The headline budget deficit reached 1.6% 
of GDP in 2023, down from 2.5% in 2022. 
This reduction was driven by the sharp decline 
in  the  cost  of  energy-related  measures  and 
the increase in current revenues that were only 
partially offset by the increase in interest rate 
expenditure.  Public  investment  spending  has 
increased  and  reached  a  nominal  level  of  8.6 
billion,  the  highest  value  since  2009,  partly 
due 
the  accelerating  execution  of 
investments  under the recovery and  resilience 
plan.  Implementation  of  the  cohesion  policy 
funds  is  progressing,  with  the  programmes 
under  the  new  cycle  still  to  deliver  their  full 
potential. 

to 

Still  high  public  sector 
indebtedness 
points  to  the  need  for  prudent  fiscal 
policies.  Although  the  public  sector  debt-to 
GDP  ratio  has  declined  by  approximately  45 
percentage points over the last three years, it 
remains  the  highest  in  the  EU.  Government 

11 

in 

the  highest 

debt  is  forecast  to  continue  declining  to 
153.9%  of  GDP  by  the  end  of  2024  but  will 
still  be 
the  EU.  The 
Commission’s  debt  sustainability  analysis, 
which  assesses  the  country’s  ability  to  repay 
to  debt 
its  debt, 
sustainability are low in the short term, high in 
the  medium  term  and  low  in  the  long  term. 
Achieving the targeted primary budget surplus 
of  above  2%  of  GDP  is  crucial  to  ensure  the 
rebalancing of the economy (Annex 21). 

indicates 

risks 

that 

increase 

strengthen 

Further  efforts 
tax 
to 
administration  could  help  address  the 
investment  gap  and 
tax 
compliance. Greece’s VAT gap  fell from 34% 
of GDP in 2017 to 17.8% of GDP in 2021. This 
suggests  that  the  increased  use  of  electronic 
payments  and  efforts  taken  to  combat  tax 
evasion  are  moving  Greece 
in  the  right 
direction.  However,  the  VAT  gap  is  still  the 
third  highest  in  the  EU,  with  lost  revenue 
estimated  at  more  than  1.4%  of  GDP  (Annex 
19). This shows the importance of stepping up 
including  through 
tax  compliance  efforts, 
expanding the tax administration’s capacity by 
strengthening  its  operational  autonomy  to 
manage and develop its human resources. This 
in  key 
includes  covering  staffing  needs 
functions,  such  as  IT  staff,  which  are  deemed 
critical  for  the  tax  administration’s  digital 
transformation.  Lastly,  bringing  in  a  wider 
advance tax ruling system, in line with EU best 
practices,  could  give 
taxpayers  a  clear, 
consistent  and  transparent  interpretation  of 
the  existing  tax  law.  It  could  also  provide 
investors  with  greater  legal  certainty  and 
boost  ongoing  efforts  to  simplify  the  tax 
system. 

There  is  room  to  increase  the  efficiency 
of  Greece’s  public  administration. 
Its 
performance 
low  as 
reflected,  for  example,  in  the  difficulty  of 
attracting new highly skilled civil servants. This 
in 
low  performance 

is  particularly  visible 

relatively 

remains 

 
 
in 

critical  areas,  such  as  policy  coordination, 
digital  governance,  legal  drafting  and  public 
sector  workers’  participation 
lifelong 
learning  (Annex  13),  and  risks  affecting  the 
timely  and  effective  implementation  of  EU 
funds.  Accelerating  the  ‘executive  branches’ 
initiative  started  in  2019,  which  aims  to 
increase  the  central  administration’s  capacity 
in  policy  analysis,  legal  drafting  and  digital 
governance,  should  help  tackle  this  issue. 
Despite  the  adoption  of  major  legislation 
under  the  RRP  on  setting  up  a  multi-level 
improve 
governance 
coordination  between  the  different  levels  of 
the  administration,  the  framework  is  not  fully 
operational  yet.  The  framework 
includes 
developing  an  information  system  to  track 
new legislation establishing new public bodies 
and/or 
them. 
Prioritising  sectors  where  significant  overlaps 
of  responsibilities  have  been  identified  (such 
as  civil  protection)  would  be  particularly 
relevant. 

assigning  mandates 

framework 

to 

to 

To  address  fiscal  challenges,  efforts 
could be made to strengthen independent 
fiscal 
institutions.  The  Hellenic  Fiscal 
Council  has  a  fairly  wide  mandate,  endorsing 
both  macroeconomic  and  budgetary  forecasts 
and monitoring fiscal rules. It does not appear 
to  face  issues  with  access  to  information. 
to  civil 
However, 
servants,  and  policy  dialogue  with 
the 
government  and  interactions  with  the  Greek 
Parliament  are  not  so  well  developed.  In 
addition, the Council’s outreach activities could 
be improved. 

recruitment 

limited 

is 

Ensuring a sound financial sector 
to promote economic growth and 
competitiveness 

The quality of banks’ assets continued to 
improve  in  2023.  Banks’  non-performing 
loans  (NPLs)  as  a  share  of  total  loans  (NPL 
ratio) fell to 5.7% in September 2023 (8), down 

securitisations  under 

from 6.2% in 2022 and their peak of 42.7% in 
2016.  After  a  rapid  decrease  in  recent  years 
supported  by 
the 
Hercules scheme, the stock of NPLs continued 
to  fall,  albeit  more  slowly.  However,  the  NPL 
ratio  is  still  the  highest  in  the  EU  and  well 
above  the  EU  average  (1.8%).  In  2023,  banks 
to  use  non-organic  measures 
continued 
securitisations)  as 
sales  and 
(portfolio 
dominant  drivers  in  their  NPL  workout.  The 
in 
Hercules  securitisation  scheme  expired 
October  2022  but  was 
in 
relaunched 
November 2023 to run until the end of 2024. 
The scheme is expected to help smaller banks 
clean up their balance sheets faster. 

While  banks  have  continued  to  remove 
non-performing  debt  from  their  balance 
sheets,  a  large  amount  of  this  debt 
remains  in  the  economy.  After  a  sizeable 
reduction in 2022 owing primarily to statistical 
reclassifications,  a  substantial  amount  of 
legacy NPLs was still held by credit servicers in 
(EUR 69.5 billion  or  32%  of  GDP). 
2023 
Although  these  servicers  are  expected  to 
proceed  with  further  debt  resolution  and 
restructuring,  the  pace  of  the  workout  lags 
behind the original business plans. As a result, 
legacy  NPLs  continue  to  weigh  on  balance 
sheets,  hampering  private  sector  lending.  The 
delay  in  the  workout  is  mainly  the  result  of 
low  recoveries  from  collateral  liquidations 
owing  to  the  suspension  of  enforcement 
proceedings  during  the  COVID-19  pandemic. 
However,  it  also  reflects  delays  in  court 
procedures  and  a  high  ratio  of  unsuccessful 
auctions.  Despite  some  measures  under  the 
RRP (for instance, improving debt enforcement 
processes and the efficiency of the secondary 
NPL market) and considering the magnitude of 
the  problem,  further  measures  could  help 
increase third-party demand for collateral and 
speed  up  the  post-auction  process.  These 
could  include  improving  e-auction  processes 
by  making  more  information  available  on 
auctioned  properties  and  lifting  the  territorial 
exclusivity of notaries. 

(8)  ECB data reported as a share of total gross loans and 
advances, i.e. including cash balances at central banks 

and other demand deposits in the denominator on a 
consolidated basis. 

12 

 
 
 
 
to 

finance 

investment,  especially 

impedes 
Limited  access 
for 
corporate 
small  and  medium-sized 
companies 
(SMEs).  Measures  aiming  to  deepen  the 
implementing  the 
include 
capital  markets 
related  national  strategy, tackling  the  shadow 
economy  (estimated  at  20%  of  GDP  by  the 
Bank  of  Greece)  and  incentivising  micro  and 
small  companies  to  scale  up  their  operations. 
These  measures  can 
improve  companies’ 
bankability and financing opportunities (Annex 
18). 

Improving the regulatory 
framework to facilitate doing 
business 

to 

Regulatory  barriers  continue  to  weigh on 
competition and harm private investment 
and  competitiveness.  Despite  numerous 
reforms  and  other  improvements  in  the  area, 
Greece  continues  to  lag  behind  many  EU 
countries  in  terms  of  business  dynamism. 
According 
intra-European 
the  OECD 
Economic  Area  Services  Trade  Restrictiveness 
Index, Greece is still one of the countries with 
the  highest level  of  restrictions in  several  key 
services  sectors,  such  as  maritime  transport, 
construction, accounting, engineering and legal 
services (9). According 
the  ECB’s  SAFE 
survey (10),  Greek  SMEs  face  more  difficulties 
in  accessing  bank  credit  than 
their  EU 
counterparts.  In  addition,  restrictions  to  enter 
certain key professions, such as architects, civil 
engineers,  patent  agents, 
tourist  guides, 
lawyers  and  accountants,  are  higher  than  the 
EU  average,  weighing  on  competitiveness (11) 
(Annex  12).  Meanwhile,  low  R&D  investments 
by  SMEs  continue  to  impede  innovation  and 

to 

(9)  OECD intra-European Economic Area Services Trade 

Restrictiveness Index (STRI). https://oecd-
main.shinyapps.io/STRI_Explorer/. 

(10)  SAFE Survey. 

https://www.ecb.europa.eu/stats/ecb_surveys/safe/html/
ecb.safe202311~c94d2c3a78.en.html. 

(11) Communication on updating the reform 

recommendations for regulation in professional 
services (COM(2021) 385). 

Policy 

the  commercialisation  of  research  outputs, 
which  holds  back  productivity  growth  (Annex 
11). 
the 
assessments 
macroeconomic  imbalance  procedure  suggest 
that  Greece  could  benefit  from  further 
implementing  reforms  and  investments  to 
improve  productivity  and  competitiveness  and 
to expand its export capacity. 

under 

a 

with 

process, 

activities 

licensing 

framework 

to  speed  up 

environmental 

Slow 
and 
regulatory  gaps  continue  to  hamper 
investment.  Despite  recent  reforms  outside 
the 
the  RRF 
environmental 
the 
licensing 
regulatory  framework  in  this  area  is  still 
incomplete, 
legislative 
preventing 
improvements  from  having  any  impact.  In 
particular,  there 
is  still  no  environmental 
classification  for  renewables (12)  or  conditions 
that  determine  under  which  circumstances 
limited 
industrial 
environmental  impact  can  be  licensed.  The 
criteria  for  cases  that  require  a 
lighter 
permitting  process  due  to  non-substantial 
changes  also  need  to be  set  out.  Encouraging 
private  professionals  to  join  the  registry  for 
certified  environmental  assessors  (13)  could 
also  help  reduce  the  backlog  of  cases.  In 
addition,  the  legislative  framework  for  the 
protection  of  Natura  2000  areas is  still 
incomplete.  This  leads  to  continued  legal 
uncertainty  about  the  types  of  permissible 
investment 
in  30%  of  the  country  and 
threatens  Greece’s  rich  natural  environment 
and  the  completion  of  the  country’s  local 
urban  plans.  The  quality  of  the  studies  to 
shape 
relevant 
implementing  acts  to  protect  Natura  2000 
areas  is  crucial,  and  it  would  significantly 
benefit  from  proper  public  consultation  and 
scientific  evidence.  Looking  ahead,  stronger 
mechanisms  for  better  regulation  at  central 
and  ministerial  levels  and  more  systematic 
legal  codification,  as  well  as  addressing 
administrative 
regulatory 
shortcomings 
licensing, 
would help improve the business environment. 

and 
in  environmental 

content 

gaps 

the 

the 

of 

(12)  A new environmental classification is needed given the 
annulment of the relevant Decision by the Council of 
State (number 1885/2023). 

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

and Joint Ministerial Decision 17185/2022. 

13 

 
 
 
certain 

such  as 

listed  SOEs, 

investment  gaps.  There 

Reinforcing  the  management  of  state 
assets and stimulating new funding is key 
to  bridge 
is 
significant scope to accelerate the growth and 
modernisation  of  state-owned  enterprises 
(SOEs) and thus contribute to higher and more 
inclusive  growth,  improved  services  to  the 
public  and  increased  economic  and  climate 
sustainability.  Reforms  that  proved  successful 
in 
the 
enhancement of the operational flexibility and 
commercial  autonomy,  the  improvement  of 
the  procurement,  remuneration  and  hiring 
policies  and  processes,  and  the  strengthening 
of 
internal  management  capacities,  are 
necessary for all SOEs to be able to create and 
capture increased value for the society and the 
economy  alike.  The  Hellenic  Corporation  of 
Assets  and  Participations  is  creating  a  new 
fund  aiming  to  mobilise  additional  domestic 
and foreign direct investment (FDI). Increasing 
its  organisational  and  functional  capacity  and 
strengthening  its  operational  autonomy  and 
in-house  investment  expertise  would  help  the 
Corporation to successfully cope with this new 
challenge.  It  is  also  crucial  to  strengthen  the 
Corporation’s 
and 
promptly  identify  priority  areas  that  the  new 
fund  will  focus  on,  in  synergy  with  other 
available funds, to bridge investment gaps and 
stimulate  new  funding  for  transformative 
investments, including FDI. 

leadership 

corporate 

Increasing and upskilling the 
workforce to boost productivity 

As  labour  shortages  increase  in  Greece, 
bringing  unemployment  further  down 
requires  targeted  and  decisive  action. 
Although  unemployment  has  dropped  to  pre-
2008 levels, at around 10.2% in March 2024, 
it  is  still  among  the  highest  in  the  EU  and  it 
disproportionally  affects  women  and  young 
people,  keeping  poverty  at  relatively  high 
levels (Annex 14). This calls for more targeted 
and 
training 
services for these population groups and more 
widespread  formal  early  childhood  education 
and 
to  enable  broader 
participation  in  the  labour  market.  To  further 

intensified  employment  and 

facilities 

care 

at 

in-work  benefit 
lower-paid  workers 

labour  market  participation  and 
increase 
employment,  Greece  would  benefit  from 
scheme 
developing  an 
targeted 
and 
encouraging more flexible work arrangements. 
It  would  also  help  to  make  full  use  of  the 
upgraded labour market diagnosis mechanism 
for  skills  forecasting  and  to  fully  implement 
individual learning accounts. 

post-secondary 

While 
educational 
attainment is high, and the proportion of 
students  leaving  school  early  is  among 
the  lowest  in  the  EU,  performance  in 
basic skills is relatively low, undermining 
labour market outcomes, productivity and 
competitiveness. Greece adopted reforms to 
improve  its  education  system  over  the  past 
decade, and the RRP contains some measures 
revise  curricula  and  upgrade 
to  further 
education facilities. However, the performance 
of  15-year-old  students 
in  mathematics, 
reading  and  science  has  been  deteriorating 
since 2012 and is one of the worst in the EU, 
according  to  the  OECD’s  Programme  for 
International  Student  Assessment 
(PISA) 
survey of 2022 (Annex 15) (14). Based on latest 
data, participation in early childhood education 
and  care,  which  has  been  found  to  positively 
affect subsequent education outcomes, is also 
among  the  lowest  in  the  EU.  Against  this 
background, the Greek education system could 
benefit  from  a  further  shift  from  purely 
knowledge-based 
learning 
methods  to  those  based  on  competences  as 
well  as  a  stronger  focus  on  entrepreneurial, 
soft  and  transversal  skills.  The  country  could 
also  improve  education  outcomes  by  further 
increasing  participation 
in  quality  early 
childhood  education  and  care,  expanding 
teacher evaluations and making schools more 
autonomous. 

teaching  and 

Rapidly 
increasing  real  estate  prices 
make  housing  less  affordable  and  more 
difficult  for  people  to  change 
jobs. 
Property prices have started to rise since 2018 
largely  as  a  result  of  a  strong  recovery  in 
domestic  and  foreign  demand.  Apart  from 

(14)  OECD (2023), PISA 2022 Results (Volume I): The State 

of Learning and Equity in Education. 

14 

 
 
leading  to  less  affordable  housing,  property 
price  increases  affect  labour  mobility.  This 
further  exacerbates  the  problem  of  skill 
mismatches  and  labour  shortages,  especially 
in  areas  with  high  labour  demand,  such  as 
Attica  or  the  islands.  Looking  ahead,  Greece 
would  benefit  from  a  comprehensive  social 
housing strategy that identifies social housing 
needs  and  streamlines  policies  and  delivery 
tools. 

target  for  2030  (27.3 GW),  the  existing  grid 
permitting  process  and  court  proceedings  to 
resolve  expropriation  cases  are  still  lengthy. 
This  could  put 
the  scheduled  network 
expansion  at  risk.  The  addition  of  new 
renewables,  including  the  significant  volume 
from  offshore  wind,  and  the  electrification  of 
various  sectors  (e.g.  transport  and  industry) 
calls  for  the  electricity  networks  to  be 
expanded  further.  This  will,  in  turn,  require  a 
more streamlined permitting process. 

Maintaining the momentum of the 
green transition 

Greece is expected to reach its ambitious 
2030  targets  for  renewable  energy  and 
energy  efficiency.  Greece  has  significantly 
installation  of  renewable 
accelerated  the 
energy  capacity  and  implemented  a  series  of 
energy  efficiency  measures.  Further,  Greece 
has  reiterated  its  commitment  to  phase  out 
lignite from its electricity production by 2028, 
which  is  also  part  of  Greece’s  first  national 
Climate Law that was adopted in 2022. 

for 

source 

energy 

renewable 

framework 

Greece  would  benefit  from  streamlining 
the  permitting 
its 
electricity  networks.  This  would  facilitate 
their  planned  expansion,  which  is  critical  for 
safeguarding  the  grid’s  balance  as  more 
renewables  are  being  integrated.  The  RRP, 
including its REPowerEU chapter, is expected to 
further  accelerate  Greece’s  green  transition. 
New 
(RES) 
installations  are  in  the  pipeline (15)  and  would 
double the current RES capacity. It would stand 
to  Greece  to  further  expand  the  grid  in  the 
future,  beyond  what 
is  already  planned, 
including  in  the  context  of  the  RRP  (e.g. 
through  interconnections  with  the  islands) 
(Annex  8).  This  expansion  should  match  a 
potential increase in demand due to hydrogen 
development  and  a  possible 
in 
exports. While the current plans for increasing 
the  transmission  and  distribution  networks 
would  enable  Greece  to  meet  its  renewable 

increase 

by 

being 

produced 

storage 
Increasing  Greece’s  energy 
capacity  would  reduce  the  need  for 
curtailing  green  electricity.  Adding  more 
energy  storage  capacity,  in  particular,  behind-
the-meter storage systems, could contribute to 
tackling challenges linked to the high volatility 
of  RES  and  reduce  the  need  for  curtailing 
electricity 
RES 
installations (16), which is expected to continue 
in  the  short  term.  Other  solutions  that  would 
reduce  the  impact  and  need  for  curtailment 
would  be  strengthening  flexibility  measures, 
such  as  demand-side  responses.  Further,  as 
concerns the deployment of new RES, although 
a  legal  framework  for  licensing  new  RES 
installations  was  adopted  in  2022  (part  of 
Greece’s  RRP),  response  times  from  certain 
public  bodies,  in  particular  local  and  regional 
authorities,  have  yet  to  be  fully  aligned  with 
the provisions of this framework. 

Energy  poverty  remains  a  challenge.  One 
out  of  five  households  faces  difficulties  in 
adequately heating their homes, which is close 
to twice as high as the EU average (Annex 8). 
As  part  of 
its  RRP,  Greece  adopted  a 
comprehensive  energy  action  plan  in  2021 
that  envisaged  a  number  of  measures, 
including  increased  subsidies  for  households 
that  are  eligible  for  the  social  tariff  scheme 
and  targeted  support  to  promote  energy-
efficient  renovations.  Given  the  rising  number 
of  households  struggling  to  pay  their  utility 
bills, it would help to swiftly implement these 
measures and consider expanding their scope, 
in  particular  focusing  on  energy-efficient 

(15)  The share of renewable electricity production, including 
from large hydropower plants, reached a historic high in 
2023 (57%). 

(16)  Curtailment refers to the deliberate reduction of output 
below what could have been produced in order to 
balance energy supply and demand or due to 
transmission constraints. 

15 

 
 
 
renovations.  This  would  also  contribute  to 
increasing  Greece’s  energy  efficiency  gains, 
which have slowed. 

Greece  continues  to  make  progress  in 
reducing  its  dependency  on  fossil  fuels, 
but  there  is  scope  to  step  up  efforts,  in 
particular  in  the  transport  sector.  Greece 
reduced  its  gas  demand  by  16%  between 
August  2022  and  December  2023,  compared 
to  the  average  demand  of  the  previous  5 
years  (Annex  8).  However,  there  is  slower 
progress in reducing fossil fuel dependency in 
the transport sector, which remains one of the 
largest  emitter  of  carbon  dioxide.  Greece  has 
one of the oldest vehicle fleets in the EU, and 
the use of renewables in transport is still very 
low.  The  Climate  Law  adopted 
in  2022 
promotes  sustainable  transport;  for  example, 
all  new  taxis  in  Attica  and  Thessaloniki  are 
required  to be  electric  as of  2026.  Given  that 
the RRP measures mainly focus on investment 
(e.g.  electric  buses/taxis,  electric  vehicle 
charging  points),  there  is  scope  for  more 
ambitious  policy  action  to  accelerate  the 
electrification  of  the  transport  sector.  This 
includes, 
the 
example, 
categories  of  vehicles  that  the  Climate  Law 
requires to switch from combustion engines to 
electric  motors  and  enforcing  the  withdrawal 
of  heavily  polluting  vehicles.  Other  policy 
action that could reduce air pollution in major 
cities  is  to  reduce  traffic  in  city  centres 
through  providing  better  public  transport  and 
discouraging  the  use  of  cars  (e.g.  by  bringing 
in city tolls) (Annex 6).  

expanding 

for 

and 

floods,  which 

The  rising  frequency  and  severity  of 
natural  disasters  affecting  Greece  has 
put a heavy strain on the civil protection 
system. In 2023, Greece fell victim to severe 
wildfires 
caused 
catastrophic  harm  to  the  natural  environment 
and  extensive  damage 
to  property  and 
infrastructure.  In  particular,  the  August  2023 
wildfire  in  Northern  Greece  was  the  largest 
ever  to  be  recorded  in  the  EU,  and,  in 
September 2023, Storm Daniel devastated the 
agricultural  region  of  Thessaly.  Investment  in 
civil  protection  under  the  RRP  predominantly 
system’s 
improving 
focuses 
responsiveness  mainly  through  the  purchase 
of  firefighting  and  other  disaster-response 

the 

on 

equipment  (such  as  helicopters,  drones,  fire 
engines,  collapsible  bridges)  and 
less  on 
prevention;  only  the  Antinero  measure  on 
forest  protection  aims  to  reduce  the  risk  of 
wildfire  outbreaks.  Reforms  and  investments 
to improve the effectiveness and efficiency of 
early  warning,  climate-proofing  infrastructure 
and  other  risk  prevention  measures  could 
complement  these  measures  and  help  reduce 
the damage caused by future disasters. Given 
the increasing costs of post-disaster recovery, 
strengthened  organisational  capacities  and 
more  resources  devoted  to  disaster  recovery 
efforts  may be  needed  as  well.  Moreover, the 
significant gap in wildfire insurance protection 
in Greece could pose a risk to public finances if 
insurance coverage remains low (Annex 6). 

Sustainable water management continues 
to be a major environmental issue for the 
country.  To  help  address  related  challenges 
(Annex  9),  in  2023,  Greece  established  a  new 
water  regulator  as  part  of  the  Regulatory 
Authority  for  Waste,  Energy  and  Water 
(RAAEY).  Greece  would 
from 
accelerating  the  regulator’s  efforts  to  boost 
the  skills  and  capacity  of  water  service 
providers,  including  irrigation  water  service 
providers,  and  to  rationalise  water  tariff 
policies in line with the ‘polluter pays’ principle. 

benefit 

16 

 
 
 
 
 
 
 
 
Box 4: 

The mid-term review of cohesion policy funds for Greece 

The  mid-term  review  of  cohesion  policy  funds  is  an  opportunity  to  assess  cohesion 
policy programmes and to tackle emerging needs and challenges in EU Member States 
and their regions. Member States are reviewing each programme, taking into account among 
other things the challenges identified in the European Semester, including in the 2024 country-
specific recommendations. This review forms the basis for a proposal by the Member State for 
the definitive allocation of 15% of the EU funding included in each programme. 

Greece has made progress in implementing cohesion policy programmes and the European Pillar 
of Social Rights, but challenges remain as outlined in this report, including Annexes 14 and 17. In 
particular,  Greece  continues  to  register  slow  growth  in  more  peripheral  regions,  and  there  are 
significant  disparities  between  urban  and  non-urban  areas.  Against  this  background,  it  is 
important  to  continue  implementing  the  planned  priorities,  with  particular  attention  to:  (i) 
improving  the  capacity  of  businesses  to  innovate,  focusing  on  targeted  business  support;  (ii) 
making  the  required  investments  in  waste  management  to  meet  recycling  targets  and  reduce 
landfilling; (iii) improving water management in an integrated manner, encompassing water and 
wastewater management, energy recovery, digitalisation, water reuse, rainwater and RES-based 
sustainable  desalination;  (iv)  moving  ahead  with  the  energy  transition,  including  renewable 
energy,  storage  solutions  and  energy  efficiency,  and  increasing  the  availability  of  clean  urban 
transport; (v) investing in skills based on a comprehensive strategy; (vi) implementing the Child 
Guarantee; (vii) promoting quality and affordable long-term care services and social housing; and 
(viii)  getting  more  people  from  marginalised  communities  working  or  looking  for  work,  such  as 
Roma and people with a migrant background, and improving their social integration. 

The potential to increase funding for the sustainable use of natural resources to make up for the 
backlog of investments from the previous programming period, merits  specific  consideration in 
preparation for the mid-term review. Greece could benefit from the opportunities provided by the 
Strategic Technologies for Europe Platform  (STEP) initiative in the areas of digital technologies 
and  deep  tech  innovation,  clean  and  resource-efficient  technologies,  and  biotechnologies  to 
support the transformation of industry (17). 

(17)  Regulation (EU) 2024/795. 

17 

 
 
 
KEY FINDINGS 

With its wide policy scope and substantial 
financial envelope, Greece’s recovery and 
resilience  plan  (RRP)  includes  measures 
to  address  a  series  of  structural 
challenges  in  synergy  with  other  EU 
funds, including cohesion policy funds, by:  

•  Improving  the  business  environment 
by:  (i)  increasing  the  efficiency  of  public 
administration, including tax administration; 
(ii) modernising the judicial system; and (iii) 
providing  favourable  financial  and  tax 
incentives  to  private  sector  companies  to 
help them grow, export and innovate; 

the 

energy 

•  Accelerating the green transition by: (i) 
efficiency 
upgrading 
performance of buildings; (ii) supporting the 
phasing  out  of 
lignite-based  power 
generation  and  the  use  of  renewable 
(iii)  expanding  energy 
energy  sources; 
storage  capacity;  and  (iv) 
in 
sustainable  transport,  water  and  waste 
management; 

investing 

•  Supporting  the  digital  transition  by 
investing  in  the  digitalisation  of  the  public 
sector 
administration 
companies,  connectivity  infrastructure  and 
digital skills; 

private 

and 

•  Developing  a  skilled  workforce  by:  (i) 
upgrading 
levels  of 
facilities  at  all 
education;  (ii)  investing  in  skills;  and  (iii) 
creating  new  employment  and  training 
opportunities; 

•  Improving 

social 
by 

protection 
strengthening 

and 
inclusiveness 
the 
quality,  efficiency  and  accessibility  of  the 
national  social  protection system, including 
the healthcare system. 

The  implementation  of  Greece’s  recovery 
and  resilience  plan  is  well  underway. 
Going  forward,  it  is  facing  risks  and 

18 

challenges.  Further  efforts  are  key  for  a 
successful implementation of all the measures 
of  Greece’s  recovery  and  resilience  plan  by 
August 2026. 

Beyond  the  reforms  and  investments  in 
the RRP and cohesion policy programmes, 
Greece would benefit from: 

balanced 

•  Promoting 
growth  and 
domestic 
supporting 
investment 
that  external 
to  ensure 
balances  are  put  on  a  steadily  improving 
path;  

productive 

•  Pursuing  a  prudent  fiscal  policy  to 
continue  to  improve  the  sustainability 
of public finances; 

•  Further improving the efficiency of the 
public  administration  by  making  the 
recently  adopted  multi-level  governance 
system fully operational; 

•  Continuing to reduce the stock of non-
performing  loans  held  by  banks  and 
credit services, including by improving the 
e-auction  processes  by  making  more 
auctioned 
information 
properties  and 
territorial 
exclusivity of notaries; 

available 
lifting 

on 
the 

•  Strengthening 

administration, 
tax 
facilitating  investment  and  enforcing 
tax compliance, including by introducing a 
wider  advance  tax  ruling  system  and 
boosting  the  tax  administration  authority’s 
operational autonomy; 

•  Further 

the 

improving 

regulatory 
framework by: (i) reviewing and removing 
unjustified  restrictions  in  the  entry  to  and 
(ii) 
exercise  of  professional  services; 
speeding 
licensing 
procedures  and  completing  the  framework 

environmental 

up 

 
 
the  protection  of  environmentally 
for 
sensitive  areas;  and  (iii)  further  improving 
the  financial  management  of  state-owned 
enterprises; 

•  Helping more young people and women 
get into work or training and reducing 
poverty  by  tackling  underachievement  in 
basic skills and further developing targeted 
training  programmes, 
employment  and 
combined  with  more 
flexible  working 
practices and an in-work benefit scheme; 

•  Expanding  sustainable  transport  by 
accelerating  the  decarbonisation  of  the 
transport  sector  and  promoting  the  use  of 
electric vehicles;  

•  Strengthening  the  management  of 
natural  disasters  by  putting  in  place  an 
effective early warning and risk prevention 
system. 

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 – implementation 

A4.  Other EU instruments for recovery and growth 

A5.  Resilience 

Environmental sustainability 

A6.  European Green Deal 

A7.  Energy transition and competitiveness 

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 

LIST OF TABLES 

A2.1. 
A3.1. 

Summary table on 2019-2023 CSRs 
Key facts of the Greek RRP 

23 

26 

26 

30 

33 

35 

38 

40 

40 

45 

50 

53 

53 

56 

58 

60 

65 

67 

67 

70 

72 

74 

78 

78 

80 

82 

83 

30 
33 

 
 
 
Support from EU instruments in Greece 
EU/ euro area loans under the 2010-2018 financial assistance programmes 
Resilience indices across dimensions for Greece and the EU-27 
Indicators tracking progress on the European Green Deal from a macroeconomic perspective 
Key Energy Indicators 
Key indicators for a fair transition in Greece 
Circularity indicators 

A3.2.  Measures in Greece's RRP 
A4.1. 
A4.2. 
A5.1. 
A6.1. 
A7.1. 
A8.1. 
A9.1. 
A10.1.  Key Digital Decade targets monitored by the Digital Economy and Society Index 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 

LIST OF GRAPHS 

Progress towards the SDGs in Greece 
Greece’s progress on the 2019-2023 CSRs (2024 European Semester) 
Total grants disbursed under the RRF 
Total loans disbursed under the RRF 
Distribution of cohesion policy funding across policy objectives in Greece 
Distribution of RRF funding by pillar in Greece 
Greenhouse gas emissions from the effort sharing sectors in Mt CO2eq, 2005-2022 
Changes in livestock density and organic farming 
Environmental investment gaps, annual average 
Greece´s energy retail prices for households and industry & industry 
Trends in electricity prices for non-household consumers (EU and foreign partners) 
Greece's installed renewable capacity (left) and electricity generation mix (right) 
Fair transition challenges in Greece 
Job vacancy rate in transforming sectors and mining and quarrying 
ETS emissions by sector since 2013 
Treatment of municipal waste 

A1.1. 
A2.1. 
A3.1. 
A3.2. 
A4.1. 
A4.2. 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2. 
A7.3. 
A8.1. 
A8.2. 
A9.1. 
A9.2. 
A11.1.  R&D expenditure as % of GDP 2015-2022 
A12.1.  Labour productivity hours worked, whole economy 
A12.2.  Labour productivity by sector 
A13.1.  Government effectiveness 
A13.2.  Adult education. a) Participation rate in job-related employer-sponsored education and training (left side); b) average 

instruction hours spent by participants in education and training by sector (centre); c) share of employed people by 
occupation and by sector (right side) 

A15.1.  Underachievement rates in mathematics by socio-economic background, PISA 2022 
A16.1.  Life expectancy at birth, years 
A16.2.  Projected increase in public expenditure on healthcare over 2024-2070 
A18.1.  Evolution of credit activity 
A19.1.  Tax revenues from different tax types, % of total revenue 
A19.2.  Tax wedge for single and second earners as a % of total labour costs, 2023 

34 
37 
37 
38 
44 
49 
50 
54 
57 
58 
63 
66 
67 
68 
71 
73 
75 
79 
80 
82 
85 
85 

26 
29 
34 
34 
36 
36 
40 
42 
43 
45 
45 
47 
50 
52 
53 
54 
58 
60 
60 
65 

66 
70 
72 
72 
78 
81 
81 

24 

 
 
 
LIST OF MAPS 

A17.1.  Depth of development trap in NUTS-2 regions in Greece 

74 

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. 

to  environmental 

Greece  is  improving  on  all  SDG  indicators 
sustainability 
related 
(SDGs 2,  7,  9,  11,  12,  13,  14),  although  it 
needs  to  catch  up  with  the  EU  average  on 
nearly  all  of  them.  On  SDGs 12  and  13 
(Responsible  consumption  and  production  and 

Graph A1.1: Progress towards the SDGs in Greece 

improvements  were  recorded 
Climate  action), 
between  2017  and  2022.  Economic 
losses 
incurred due to climate-related effects (expressed 
as a 30-year average)  fell by 16.6%, with Greece 
ranking  more  favourably  in  2022  than  EU  peers. 
Furthermore,  by  2022,  the  share  of  renewable 
energy  in  gross  final  energy  consumption  in 
Greece  had  reached  22.7%  (vs  23%  EU  average), 
while  energy  productivity  increased  by  19.9%. 
Over 
fared 
the  same  period,  Greece  also 
particularly well on net greenhouse gas emissions. 
These  fell  by  16.9%,  putting  Greece very  close  to 
the  EU  average.  On  waste  generation  and 
management, the share of materials recycled and 
fed  back  into  the  economy  for  domestic  use 
increased  to  3.1%  by  2022,  although  the  figure 
still  lagged  significantly  behind  the  EU  average 
(11.5%). 
substantial 
improvement,  access  to  affordable  and  clean 
energy  (SDG 7)  remains  challenging 
in  some 
respects. In particular, in 2022, 18.7% of Greece’s 
population  were  unable  to  keep  their  homes 
adequately warm (vs 9.3% EU average), while the 

Meanwhile, 

despite 

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). 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 25 April 2024. Data refer mainly to the period 2017-2022 or 2018-2023. Data on SDGs may 
vary across the report and its annexes due to different cut-off dates. 

26 

 
 
 
 
 
 
 
 
country  lagged  significantly  behind  EU  peers  on 
energy import dependency, with 79.6% of imports 
in gross available energy (EU average: 62.5%). On 
SDG 14  (Life  below  water),  Greece’s  performance 
is overall close to the EU average but the country 
has  a  higher  share  of  marine  waters  affected  by 
eutrophication  relative  to its  EU  counterparts.  The 
EU  Recovery  and  Resilience  Facility  will  support  a 
series  of  measures  to  promote  environmental 
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, 3, 4, 5, 7, 8, 10), 
it needs to catch up with the  EU average on 
almost  all  of  them.  On  SDGs 1  and  3  (No 
poverty  and  Good  health  and  well-being),  despite 
some  improvements  Greece  still  underperformed 
compared  to  EU  average  in  2022  across  several 
domains:  26.3%  of  the  population  were  at  risk  of 
poverty  and  social  exclusion  (vs  21.6%);  13.9% 
were  materially  and  socially  deprived  (vs  6.7%); 
9%  of  the  population  aged  19  or  over  reported 
unmet  needs  for  medical  care  (vs  2.2%).  In 
addition,  26.7%  of  Greece’s  population  was 
overburdened  with  housing  costs  (vs  8.7%  for  EU 
peers).  Greece  continues  to  improve  on  certain 
aspects  of  equality  (SDGs 5  and  10),  but  these 
remain  less  positive  overall  than  in  the  EU  as  a 
whole.  In  2023,  the  employment  rate  of  women 
was  19.8%  lower  than  that  of  men  (against  only 
10.2% in the EU), while women held only 26.3% of 
senior  management  positions  and  21.3%  of 
political  positions  (against  33.8%  and  33.2% 
respectively  in  the  EU).  Furthermore,  people  in 
rural  areas  in  Greece  face  a  disproportionally 
higher risk of poverty or social inclusion compared 
to those living in cities than the EU average (8.1% 
of the population vs 0.4% in 2022). When adjusted 
for  purchasing  power,  GDP  per  capita  in  Greece 
was two thirds the EU average in 2023. On health 
(SDG 3), while healthy life expectancy (65.6 years) 
is  slightly  higher  than  in  the  EU  (63.6  years)  and 
more  people  report  being  healthy  (77.2%  vs 
67.8%),  the  total  consumption  of  antibiotics  in 
Greece  was  70%  higher  than  the  EU  average.  Up 
until 2026, the EU Recovery and Resilience Facility 
will support a wide range of measures to promote 
employment,  including  among  women,  the  long-
term unemployed and people with disabilities, and 
upgrade the national healthcare system.   

is 

improving  on  SDG 

Greece 
indicators 
(SDGs 4,  8,  9), 
related  to  productivity 
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  2023  in 
early school leaving (3.7% vs 9.5%) and in tertiary 
educational  attainment  (44.5%  vs  43.1%)  but 
significant challenges in underachievement for 15-
year-olds  in  basic  skills  (see  Annex  15),  in  adult 
learning  participation  (3.4%  vs  12.7%)  and  R&D 
spending  (1.48%  of  GDP  vs  2.24%  in  2022). 
Moreover,  according  to  2023  data,  there  is  a 
persisting  gap  on  basic  digital  skills  for  adults 
(52.4%  in  Greece  vs  55.6%  EU  average).  Decent 
work  and  economic  growth  indicators  (SDG 8) 
continue  to  improve  but  remained  less  positive 
than in other Member States in 2023, as reflected 
in the low employment rate (67.4%, vs 75.3% EU 
average),  the  still  high  share  of 
long-term 
unemployed (6.2% vs 2.1%) and young people not 
in  employment,  education  or  training  (15.9%  vs 
11.2%).  With  support  from  the  EU  Recovery  and 
Resilience  Facility,  Greece  is  expected  to  upskill  a 
large part of its working population, modernise its 
public  employment  services  and  upgrade 
its 
university education and research system.    

With  the  exception  of  SDG 16,  Greece  is 
improving  on  SDG 
indicators  related  to 
macroeconomic  stability  (SDGs 8  and  17), 
although  it  needs  to  catch  up  with  the  EU 
average  on  all  of  them.  Greece  continues  to 
underperform  in  terms  of  real  GDP  per  capita  in 
2023 (SDG 8), which corresponded to 66.2% of the 
EU  average.  Furthermore,  despite  improvements, 
the  investment  gap  persists:  13.7%  of  GDP  in 
2022  vs  22.9%  in  the  EU,  while  some  10.6%  of 
Greece’s working population was at risk of poverty 
in 2022, compared to 8.5% in the EU. On SDG 16 
(Peace,  justice  and  strong  institutions)  Greece  is 
moving  away  from  the  goal  and  continues  to  be 
worse off than EU peers, This is evidenced by the 
lower score in the Corruption Perceptions Index  in 
2023  (49  vs  64  EU  average)  and  the  higher 
number  of  victims  of  human  trafficking  in  2022 
(340  000  vs  230  000  EU  average).  The  Recovery 
and Resilience Facility will help bridge a large part 
of  Greece’s  investment  gap  and  support  broad-
based structural reforms, including in the areas of 
justice,  public  administration  and  the  business 
environment,  which  are  expected  to  improve  the 
functioning of the economy at large.   

27 

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

28 

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

The Commission has assessed the 2019-2023 
country-specific  recommendations  (CSRs) (35) 
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  (SDGs) 
(see  Annexes  1  and  3). The  assessment  considers 
the  policy  action  taken  by  Greece  to  date (36)  and 
the  commitments  in  its  recovery  and  resilience 
plan 
RRP 
implementation,  72%  of  the  CSRs  focusing  on 
structural  issues  from  2019-2023  have  recorded 
at  least  ‘some  progress’,  while  25%  recorded 
‘limited  progress’  (see  Graph  A2.1).  As  the  RRP  is 
implemented  further,  considerable  progress  in 
addressing  structural  CSRs  is  expected  in  the 
coming years. 

(RRP) (37). 

stage 

this 

At 

of 

Graph A2.1: Greece’s progress on the 2019-2023 
CSRs (2024 European Semester) 

Source: European Commission. 

(35)  2023 CSRs: EUR-Lex - 32023H0901(08) - EN - EUR-Lex 

(europa.eu) 

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) 

(36)  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). 

(37)  Member States were asked to effectively address in their 
RRPs all or a significant subset of the relevant country-
specific recommendations issued by the Council. 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 have not yet been 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. 

29 

No Progress3%Limited Progress25%Some Progress53%Substantial Progress10%Full Implementation9% 
 
 
 
     
 
 
 
 
 
Table A2.1:  Summary table on 2019-2023 CSRs 

(Continued on the next page) 

30 

GreeceAssessment in May 2024*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.Some 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 andSome 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 9 
 
 
 
 
 
 
 
  
 
Table (continued) 

(Continued on the next page) 

31 

2020 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 1Not relevant anymoreIn2022,usetheRecoveryandResilienceFacilitytofinanceadditionalinvestmentinsupportoftherecoverywhilepursuingaprudent fiscal policy. Preserve nationally financed investment. Not relevant anymoreNot 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. Not relevant anymoreNot applicableSDG 8, 16Atthesametime,enhanceinvestmenttoboostgrowthpotential.Payparticularattentiontothecompositionofpublicfinances,onboththerevenueandexpendituresidesofthebudget,andtothequalityofbudgetarymeasuresinordertoensureasustainableandinclusiverecovery.Prioritisesustainableandgrowth-enhancinginvestment,inparticular investment supporting the green and digital transition. Not relevant anymoreNot 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.Not relevant anymoreNot 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.Some progressNot applicableSDG 8, 16Expandpublicinvestmentforthegreenanddigitaltransitions,andforenergysecuritytakingintoaccounttheREPowerEUinitiative,includingbymakinguseoftheRecoveryandResilienceFacilityandother Union funds.Substantial 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.Full implementationNot applicableSDG 8, 16Buildingonreformsundertakenaspartoftherecoveryandresilienceplan,improvetheinvestment-friendlinessofthetaxationsystembyintroducing 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 frameworkSome 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. 
 
 
  
 
Table (continued) 

Note:  
* See footnote (37).  
** 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. 

32 

2023 CSR1Some progressWind down the emergency energy support measures in force, using the related savings to reduce the government deficit, as soon as possible in 2023 and 2024. Should renewed energy price increases necessitate new or continued support measures, ensure that these are targeted at protecting vulnerable households and firms, fiscally affordable, and preserve incentives for energy savings.Full implementationNot applicableSDG 8, 16Ensureprudentfiscalpolicy,inparticularbylimitingthenominalincreaseinnationallyfinancednetprimaryexpenditurein2024tonotmore than 2,6 %.Full implementationNot applicableSDG 8, 16Preserve nationally financed public investment and ensure the effective absorption of grants under the Facility and of other Union funds, in particular to foster the green and digital transitions.Limited progressNot applicableSDG 8, 16Fortheperiodbeyond2024,continuetopursueamedium-termfiscalstrategyofgradualandsustainableconsolidation,combinedwithinvestmentsandreformsconducivetohighersustainablegrowth, in order to achieve a prudent medium-term fiscal position.Full implementationNot applicableSDG 8, 16Building on reforms undertaken as part of the recovery and resilience plan, improve the investment friendliness of the taxation system by introducing a wider advance tax-ruling system,No progressSDG 8, 10, 12, 16enlargethetaxbase,includingbyreviewingthecurrenttaxationstructure for the self-employed,Some progressRelevant RRP measures being implemented as of 2022.SDG 8, 10, 12and strengthen tax compliance by extending the use of electronic payments.Some progressRelevant RRP measures being implemented as of 2022.SDG 8, 10, 12, 16Preserve and increase the operational autonomy of the tax authority.Limited progressRelevant RRP measures being implemented as of 2023.SDG 8, 16Safeguard the efficiency of public administration while ensuring that it can attract the right skills and preserving consistency with the unified wage grid.Some progressRelevant RRP measures being implemented as of 2022.SDG 16Pursuetheongoingreductionofnon-performingloansandfurtherimprovethefunctioningofthesecondarynon-performingloansmarket.Some progressRelevant RRP measures being implemented as of 2022.SDG 82023 CSR2MaintainthemomentuminthesteadyimplementationofitsrecoveryandresilienceplanandswiftlyfinalisetheREPowerEUchapterwithaviewtorapidlystartingtheimplementationthereof.Ensurecontinuedsufficientadministrativecapacityinviewofthesizeoftheplan.Proceedwiththespeedyimplementationofcohesionpolicyprogrammes,inclosecomplementarityandsynergywiththerecovery and resilience plan.2023 CSR 3Limited progressToensureadequateandequalaccesstohealthcare,completetheroll-outoftheprimaryhealthcareframeworkandadoptstrongerincentivesfortheenrolmentofanadequatenumberoffamilydoctorsinordertoachievefullpopulationcoverageandpopulationregistration.Limited progressRelevant RRP measures being implemented as of 2023.SDG 3Finalise cadastral reform by completing cadastral mapping and through the establishment and operation of the Hellenic Cadastre Agency.Some progressRelevant RRP measures being implemented as of 2023.SDG 8, 92023 CSR 4Some progressReduce reliance on fossil fuels andLimited progressRelevant RRP measures being implemented as of 2022.SDG 7, 9, 13further accelerate the diversification of energy supply routes.Some progressRelevant RRP measures being implemented as of 2023.SDG 7, 9, 13Further expand the deployment of renewable energy by completing and enforcing the new legal frameworks for the licensing process and for offshore wind farms, increasing electricity network and storage capacity, promoting the decentralised production of renewable energy and putting in place legislative frameworks for the production of renewable hydrogen and biomethane.Some progressRelevant RRP measures being implemented as of 2022.SDG 7, 8, 9, 13Stepupthedeliveryofmeasuresthatimproveenergyefficiency,includingtargetedmeasuresforenergy-poorhouseholdsandtheinstallation of smart meters, andSome progressRelevant RRP measures being implemented as of 2022.SDG 1, 2, 7, 10policy efforts aimed at the provision and acquisition of skills and competences needed for the green transition.Limited progressRelevant RRP measures being implemented as of 2022.SDG 4Supportthedecarbonisationofthetransportsector,inparticularbypromoting electric vehicles.Limited progressRelevant RRP measures being implemented as of 2022.SDG 11RRP implementation is monitored through the assessment of RRP payment requests and analysis of the bi-annual reporting on the achievement of the milestones and targets, to be reflected in the country reports. Progress with the cohesion policy programming is monitored in the context of the Cohesion Policy of the European Union. 
 
 
 
 
 
 
 
 
  
 
ANNEX 3: RECOVERY AND RESILIENCE PLAN – IMPLEMENTATION 

This  Annex  provides  a  snapshot  of  Greece’s 
implementation of its recovery and resilience 
plan  (RRP),  past  the  mid-way  point  of  the 
Recovery  and  Resilience  Facility’s 
(RRF) 
lifetime.  The  RRF  has  proven  central  to  the  EU’s 
recovery  from  the  COVID-19  pandemic,  helping 
speed  up  the  twin  green  and  digital  transition, 
while  adapting  to  geopolitical  and  economic 
resilience 
developments, 
against  future  shocks.  The  RRF  is  also  helping 
implement the UN Sustainable Development Goals 
and 
country-specific 
recommendations (see Annex 2).   

strengthening 

address 

and 

the 

The  RRP  paves  the  way  for  disbursing  up  to 
EUR 18.2  billion  in  grants  and  EUR  17.7 
billion in loans under the RRF over the 2021-
2026 period, representing 16.3% of Greece’s 
GDP (21).  As  of  mid-May  2024,  EUR  14.9  billion 
has  been  disbursed  to  Greece  under  the  RRF, 
comprising  EUR  7.6  billion  in  grants  and  EUR  7.3 
billion in loans. 

Greece still has EUR 21.1 billion available in 
grants  and  loans  from  the  RRF.  This  will  be 
disbursed  after  the  assessment  of  the  future 
fulfilment  of  the  remaining  295  milestones  and 
targets (22)  included  in  the  Council  Implementing 
Decision (23)  (CID),  ahead  of  the  2026  deadline 
established for the RRF.  

Greece’s progress in implementing its plan is 
recorded  in  the  Recovery  and  Resilience 
Scoreboard (24).  The 
scoreboard  gives  an 
overview  of  the  progress  made  in  implementing 
the  RRF  as  a  whole.  Graphs  A3.1  and  A3.2  show 
the  current  state  of  play  as  reflected  in  the 
scoreboard. 

(21)  GDP information is based on 2023 data. Source: 

https://ec.europa.eu/economy_finance/recovery-and-
resilience-scoreboard/index.html?lang=en 

(22)  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. 

(23)  https://data.consilium.europa.eu/doc/document/ST-10152-

2021-ADD-1/en/pdf  

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

resilience-scoreboard/country_overview.html 

33 

Greece’s  RRP  includes  a  REPowerEU  chapter 
to phase out its dependency on Russian fossil 
fuels,  diversify 
its  energy  supplies,  and 
produce  more  clean  energy  in  the  coming 
years.  To  kick-start  the  REPowerEU  chapter’s 
implementation,  EUR  158.7  million  was  disbursed 
as pre-financing on 25 January 2024. This helped 
launch  relevant  reforms,  including  the  facilitation 
of  production  of  renewable  hydrogen  and  bio-
methane,  optimisation  of  land  and  sea  space 
usage for the development of renewables, and the 
promotion  of  energy  sharing,  energy  communities 
and self-consumption. 

The  plan  has  a  strong  focus  on  the  green 
transition, dedicating 38.1% of the available 
funds  to  measures  that  support  climate 
objectives  and  22.1%  of  its  total  allocation 
to support the digital transition. It also retains 
a  strong  social  dimension  with  social  protection 
measures,  especially  related  to  fostering  labour 
market  activation  and  upskilling  for  employees 
and those unemployed. 

Table A3.1:  Key facts of the Greek RRP 

Source: RRF Scoreboard 

its  RRP 

implementation  of 
timely 

With  three  payment  requests  completed, 
Greece’s 
is 
underway.  However, 
completion 
requires  increased  efforts.  The  Commission 
gave  a  positive  assessment  of  Greece’s  first  and 
second payment requests, taking into account the 
opinion of the Economic and Financial Committee. 
This  led  to  EUR  3.6  billion  being  disbursed  in 
financial  support  on  8  April  2022;  and  EUR  3.6 

Initial plan CID adoption date13 July 2021Scope Revised plan with REPowerEU chapterLast major revision8 December 2023Total allocation EUR 18.2 billion in grants and EUR 17.7 billion in loans (16.3% of 2023 GDP)Investments and reforms 103 investments and 75 reforms Total number of milestones and targets381Fulfilled milestones and targets86 (22.6% of total) 
 
 
 
 
   
 
 
Graph A3.2: Total loans disbursed under the RRF 

billion  on  19  January  2023 (25).  The  related  43 
milestones  and  targets  covered  reforms  and 
investments  such  as  those  related  to  the  Loan 
Facility,  to  make  the  electricity  market  fit  for  a 
high  share  of  renewables,  develop  a  modern 
railway  network,  promote  a  greener  public  bus 
fleet., and others in the areas of energy efficiency, 
waste  management, 
taxation 
policy, business environment and healthcare.  

labour  market, 

Graph A3.1: Total grants disbursed under the RRF 

Source: RRF Scoreboard 

As  of  15  May  2024,  the  Commission  is 
assessing  Greece’s  fourth  payment  request 
for  loans.  Table  A3.2  highlights  some  relevant 
measures  achieved  so  far,  and  some  that  will  be 
implemented  before  2026 
to  keep  making 
Greece’s  economy  greener,  more  digital,  inclusive, 
and resilient.  

Table A3.2:  Measures in Greece's RRP 

Source: FENIX 

Note: This graph displays the amount of grants, including pre-
financing, 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: RRF Scoreboard 

The most recent payment request, which the 
Commission  assessed  positively  on  28 
November  2023,  led  to  the  disbursement  of 
EUR  3.6  billion  on  28  December  2023.  The 
disbursement reflected the positive assessment of 
43 milestones and targets covering among others 
in  electromobility  and  charging 
investments 
infrastructure 
for  electric  vehicles,  energy-
efficiency  renovations  in  residential  buildings  and 
the  digitalisation  of  public  administration;  as  well 
as a series of reforms to enhance efficiency in the 
public administration, to accelerate the delivery of 
justice, and to enhance the fight against corruption 
and smuggling. 

(25)  When requested payments are disbursed, the pre-financing 
is cleared proportionally. The net amounts are quoted here. 

34 

EUR 7.59billion (41.6%)Total allocation: EUR 18.22billionEUR 7.29billion (41.1%)Total allocation: EUR 17.728billionReforms and investments implemented• Incentivization regime for productivity and extroversion of enterprises• Strengthening the National Anti-Corruption Framework• Framework for installation and operation of electric vehicle charging infrastructureUpcoming reforms and investments• Energy renovation of residential buildings• Reform of the taxation of the self-employed• Upskilling, reskilling and employment programmes 
   
 
 
   
 
   
 
ANNEX 4: OTHER EU INSTRUMENTS FOR RECOVERY AND GROWTH 

to 

States. 

addition 

EU funding instruments provide considerable 
resources for recovery and growth to the EU 
Member 
the 
In 
EUR 35.9 billion of Recovery and Resilience Facility 
(RRF)  funding  described  in  Annex  3,  EU  cohesion 
policy funds (26) provide EUR 20.5 billion to Greece 
for the 2021-2027 period (27). Support from these 
two  instruments  combined  represents  25.64%  of 
the  country’s  2023  GDP,  compared  to  an  EU 
average  of  5.38%  of  GDP (28).  Cohesion  policy 
supports  regional  development,  economic,  social 
and  territorial  convergence  and  competitiveness 
through  long-term  investment  in  line  with  EU 
priorities and with national and regional strategies. 

During  the  2014-2020  programming  period, 
cohesion  policy  funds  boosted  Greece’s 
competitiveness, with  tangible achievements 
notably 
in  digital  connectivity,  energy 
efficiency, water management, education and 
employment.  By  the  end  of  the  eligibility  period 
in  December  2023,  2014-2020  cohesion  policy 
funds (29)  had  made  EUR 18.3 billion  available  to 
Greece (30),  of  which  EUR 10.9 billion  has  been 
disbursed  since  March  2020,  when  the  COVID-19 
pandemic  began (31).  Thanks  to  the  2014-2020 
cohesion  policy  funds,  around  46 600  households 
benefit  from  an  improved  energy  consumption 
classification,  at  least  66 284  households  benefit 
from  upgraded  ICT  infrastructure  resulting  in 
faster  broadband  access  (at  least  30  Mbps), 
706 534  people  benefit  from  improved  drinking 
water supply, and 355 673 population equivalents 
benefit from improved waste water treatment. The 

(26)  In 2021-2027, cohesion policy funds include the Cohesion 
Fund, the European Regional Development Fund, the 
European Social Fund Plus and the Just Transition Fund. 

(27)  European territorial cooperation (ETC) programmes are 
excluded from the figure. In 2021-2027, the total 
investment, including national financing, amounts to 
EUR 25.7 billion. 

(28)  RRF funding includes both grants and loans, where 

applicable. The EU average is calculated for cohesion policy 
funds excluding ETC programmes. GDP figures are based on 
Eurostat data for 2022. 

(29)  In 2014-2020, cohesion policy funds included the Cohesion 

Fund, the European Regional Development Fund, the 
European Social Fund and the Youth Employment Initiative. 
REACT-EU allocations are included but ETC programmes are 
excluded. 

(30)  In 2014-2020, the total investment, including national 

financing, amounted to EUR 22.5 billion.  

(31) Cut-off date: 15 May 2024. 

competitiveness  of  Greek 
regions  has  been 
increasing  since  2016,  and  Greece’s  regional 
innovation  performance  has  improved  in  recent 
years (see Annex 17). During the same period, the 
European  Social  Fund  (ESF)  supported  training 
initiatives  to  increase  employability  and  improve 
the  Greek  education  and 
training  system. 
Programmes funded by the ESF have helped more 
than 360 000 people gain a new qualification or a 
new skill. 

total  allocation  of  more 

In  the  current  programming  period  (2021-
2027),  cohesion  policy will  provide a  further 
boost  to  Greece’s  competitiveness,  to  the 
green  transition  and  to  social  cohesion, 
improving  the  living  and  working  conditions 
of Greece’s people. In 2021-2027, the European 
Regional  Development  Fund  and  the  Cohesion 
Fund  will  support  more  than  41 000  businesses, 
around  870 000  people  will  benefit  from  new  or 
upgraded  wastewater  treatment  facilities,  and 
some 1 million pupils will enjoy new or modernised 
education facilities. The Just Transition Fund (JTF) 
–  with  a 
than 
EUR 1.6 billion – will invest in Western Macedonia, 
Megalopoli  and  the islands  to  address  the  impact 
of  the  energy  and  climate  transition  away  from 
lignite,  facilitating  the  transition  towards  climate 
neutrality. This will also help people overcome the 
challenges  of  the  green  transition.  The  European 
Social  Fund  Plus  (ESF+)  will  dedicate  more  than 
EUR 1.5 billion  to  combating  poverty  and  social 
exclusion.  The  main  areas  of  ESF+  action  include 
tackling 
social 
integration  of  vulnerable  groups,  and  supporting 
the  operation  of  more  than  1 200  social  and 
health  structures  across  Greek  regions.  With  this 
work,  cohesion  policy  substantially  contributes  to 
achieving  the  UN  Sustainable  Development  Goals 
(SDGs) in Greece, in particular SDG 8 (Decent work 
and economic growth), SDG 9 (Industry, innovation, 
infrastructure)  and  SDG  7  (Affordable  and  clean 
energy). 

child  poverty, 

strengthening 

Through combined action, cohesion policy and 
the recovery and resilience plan (RRP) have a 
mutually  reinforcing  impact  in  Greece.  For 
instance,  a  cohesion  policy  funds  allocation  of 
EUR 2 billion  will  help  Greece  follow  EU  rules  on 
circular  economy  and  wastewater  management, 
while the RRP includes important reforms for both 
the  solid  waste  sector  and  the  water  sector  in 
Greece,  aiming  to  strengthen  governance  in  both 
sectors, 
including  governance  of  beneficiaries 
(FODSA,  DEYA  and  municipalities).  In  the  area  of 

35 

 
 
 
and  national  investment.  The  TSI  has  funded 
projects  in  Greece  to  design  and  implement 
growth-enhancing 
reforms  since  2015.  The 
support  provided  in  2023  included  action  to 
develop  a  task  force  against  disinformation; 
implement  the  national  industrial  strategy;  and 
professionalise  public  procurement  staff.  The  TSI 
also  helps  Greece  to  increase  its  overall  capacity 
to  implement  specific  reforms  and  investments 
included  in  its  RRP,  such  as  implementing  the 
building information modelling roadmap. 

Greece  also  receives  funding  from  several 
other  EU  instruments,  including  those  listed  in 
Table A4.1. For a more complete view of loans, see 
Table  4.2  on  EU  funded 
loans  along  with 
complementary  bilateral  Member  States-funded 
loans  given  to  Greece  in  the  context  of  its  past 
financial  assistance  programme  and 
their 
outstanding amounts. 

energy  efficiency,  the  cohesion  policy  action 
the  RRP  support  energy 
‘Exoikonomo’  and 
efficiency renovations of private homes to reduce 
households’  primary  energy  consumption  by  30% 
on  average.  The  RRP 
focuses  on  earlier 
renovations,  while  cohesion  policy  will  focus  on 
future  ones  (after  2025).  Finally, 
in  specific 
territories eligible for Just Transition Fund support, 
the RRP includes support for ‘land restoration’ (i.e. 
the appropriate preparation of land as a basis for 
new land use and associated  economic activities), 
while 
projects 
policy 
‘repurposing’  the  territories  as  receptors  of  new 
economic  activities.  The  contribution  of  cohesion 
policy  and  RRP  funding  by  policy  objective  is 
illustrated by Graphs A4.1 and A4.2.   

cohesion 

finances 

Graph A4.1: Distribution of cohesion policy funding 
across policy objectives in Greece 

Source: European Commission 

Graph A4.2: Distribution of RRF funding by pillar in 
Greece 

(1) Each RRP measure helps achieve the aims of two of the 
six policy pillars of the RRF. The primary contribution is shown 
in the outer circle while the secondary contribution is shown in 
the inner circle. Each contribution represents 100% of the RRF 
funds. Therefore, the total contribution to all pillars displayed 
on this chart amounts to 200% of the RRF funds allocated to 
Greece. 
Source: European Commission 

The Technical Support Instrument (TSI) helps 
Greece invest in its public administration and 
create a better enabling environment for EU 

36 

PO1 Smarter EuropePO2 Greener EuropePO3 Connected EuropePO4 Social EuropePO5 Europe closer to citizensPO8 JTF specific objectiveGreen transitionDigital transformationSmart, sustainable andinclusive growthSocial & territorial cohesionHealth & resilienceNext generation 
     
 
   
 
Table A4.1:  Support from EU instruments in Greece 

(1) RRF implementation period is 2021-2026. 
(2) The public sector loan facility’s programming period is 2021-2025 and the amount reflects the national share in its grant 
component reserved until the end of the period.   
(3) Common agricultural policy programming periods are 2014-2022 and 2023-2027.   
(4) EMFF – European Maritime and Fisheries Fund, EMFAF – European Maritime, Fisheries and Aquaculture Fund. 
(5) Data on the Connecting Europe Facility covers transport and energy and has a cut-off date of 15 May 2024. 
(6) Data on Horizon Europe (2021-2027) has a cut-off date of 13 May 2024. 
(7) 2021-2027 data on the LIFE programme has a cut-off date of 15 May 2024. 
(8) The amount of the EU guarantee signed under the EFSI Infrastructure and Innovation Window was derived based on the 
signed amount of the operations and the average internal multiplier, as reported by the EIB (cut-off date is 31 December 2023). 
(9) The amount of the EU guarantee and of the volume of operations signed under InvestEU includes the EU compartment as well 
as the Member State compartments (cut-off date is 31 December 2023).   
(10) SURE - European instrument for temporary support to mitigate unemployment risks in an emergency. 
Source: European Commission 

Table A4.2:  EU/ euro area loans under the 2010-2018 financial assistance programmes 

Data include upfront retained amounts (prepaid margin, service fee). The cut-off date is 15 May 2024.  
Source: European Commission 

37 

Amount 2021-2027 (EUR million)Cohesion policy20 540.3RRF grants (1)18 220.4Public sector loan facility (grant component) (2)63Common agricultural policy (3)13 478.0EMFF/EMFAF (4)375Connecting Europe Facility (5) 843.6Horizon 2020 / Horizon Europe (6)1 216.8LIFE programme (7) 39.7Volume of operations (EUR million)European Fund for Strategic Investment 2015-2020 (8)2 876.7InvestEU 2021-2027 (9) 415.5PeriodTotal amount available (EUR million)Disbursed amount (EUR million)SURE (10)2020-20226 165.06 165.0RRF 2021-202617 7287 290.0 297.8EU loansEU grantsAmount 2014-2020 (EUR million)18 267.2--23 500.0379.7 624.41 723.4 94.4EU guaranteesEU Guarantee (EUR million)1 173.0PeriodTotal amount disbursed (EUR billion)Outstanding amount (EUR billion)Greek Loan Facility/Member State bilateral loans2010-201152.939.5European Financial Stability Facility2012-2015141.8126European Financial Stabilisation Mechanism201570European Stability Mechanism2015-201861,959.8 
 
 
   
 
 
  
 
ANNEX 5: RESILIENCE 

Table A5.1:  Resilience indices across dimensions for Greece and the EU-27 

(1)  The synthetic indices aggregate the relative resilience situation of countries across all considered indicators. For an indicator, 
each country’s relative situation in the latest available year is compared with the collection of values of that indicator for all 
Member States and all years in the reference period. 
Source: Resilience Dashboards - version spring 2024, data up to 2022 

This  Annex  uses  the  Commission’s  resilience 
dashboards  (RDB) (32)  to  show  Greece’s  relative 
resilience  capacities  and  vulnerabilities (33)  that 
may be of relevance for societal, economic, digital, 
and  green  transformations,  and  for  dealing  with 
future shocks and geopolitical challenges. (34) 

and  medium 

According  to  the  set  of  resilience  indicators 
in  the  RDB,  Greece  has  medium-high  overall 
vulnerabilities 
overall 
capacities.  Compared  to  the  2023  RDB,  its 
vulnerabilities  have  remained  stable  and  above 
the  EU  average.  Its  resilience  capacities  have 
improved, but  they  remain  below  the  EU  average. 
This  is  reflected  in  the  distribution  of  indicators 
across  the  different  resilience  categories:  about 
half Greece’s vulnerability indicators are medium-

high  or  high,  and  also  more  than  40%  of  the 
capacity indicators are medium-low or low.  

vulnerabilities 

In the social and economic dimension, Greece 
has  medium-high 
and 
medium-low  capacities,  both  of  which 
indicate  it  has  greater  resilience  challenges 
than  the  rest  of  the  EU.  Despite  the  stable 
situation compared to the 2023 RDB, many of its 
vulnerability  indicators  have  changed.  Among  its 
improvements  such  as  having 
vulnerabilities, 
fewer  young  people  who  are  neither 
in 
employment  nor  in  education  or  training,  and  the 
lower 
rate,  were 
counterbalanced  by increases  in the proportion  of 
people  reporting  unmet  needs  for  medical  care 
and  the  lower  household  saving  rate.  On  the 
capacity side, Greece has the highest proportion of 
innovative businesses in the EU.  

long-term  unemployment 

(32)  Https://ec.europa.eu/info/strategy/strategic-

planning/strategic-foresight/2020-strategic-foresight-
report/resilience-dashboards_en. Resilience is defined as the 
ability not only to withstand and cope with challenges but 
also to undergo transitions, in a sustainable, fair, and 
democratic manner. 2020 Strategic Foresight Report: 
Charting the course towards a more resilient Europe 
(COM(2020) 493). 

(33)  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, 
while capacities refer to enablers or abilities to cope with 
crises and structural changes and to manage transitions. 

(34)  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. 

In  the  green  dimension,  the  country  has 
medium vulnerabilities, worse than last year, 
and  medium  capacities,  similar  to  last  year. 
Among the most significant changes are its higher 
raw material consumption per capita and its lower 
e-waste  recycling  rate.  Greece’s  resilience  would 
improve  if  the  country  reduced  water  use  and 
gradually  increased  insured  losses  from  climate 
extremes. 

In  the  digital  dimension,  both  Greece’s 
vulnerabilities and capacities have increased 
compared  to  the  2023  RDB,  to  medium-high 
and  medium  respectively.  Higher vulnerabilities 
are the result, for instance, of the greater number 

38 

ELELEU-272023 RDB2024 RDB2024 RDBHighMedium-highMediumMedium-lowLowHighMedium-highMediumMedium-lowLowCapacitiesGeopoliticalVulnerabilities0.470.440.41Capacities0.430.500.65DigitalVulnerabilities0.540.340.52Capacities0.320.560.65GreenVulnerabilities0.680.550.44Capacities0.420.410.70Social and economicVulnerabilities0.260.340.47Capacities0.340.370.67DimensionDistribution of indicators by vulnerabilities and capacitiesOverall resilienceVulnerabilities0.380.360.50Capacities0.370.460.67Vulnerabilities0%20%40%60%80%100%Vulnerabilities(59 indicators)Capacities(64 indicators) 
 
 
 
   
 
 
of  employees  who  do  not  telework  and  a  slightly 
increased  gender  gap  among  information  and 
communication 
specialists. 
Greece’s  capacities  have  improved  thanks  to  the 
increase in the use of social networks and a major 
improvement in e-healthcare services.   

technology 

(ICT) 

remained 

capacities  have 

Greece’s  medium  geopolitical  vulnerabilities 
stable 
and 
compared  to  the  last  release  of  the  RDB.  A 
narrowing of the employment gap between EU and 
non-EU nationals, and a major increase in intra-EU 
energy  trade  are  among  the  most  significant 
improvements  in  its  vulnerabilities,  while  its  net 
investment  position  and  higher 
international 
borrowing  needs 
its  major 
challenges. There is room to improve its capacities, 
particularly  by 
the  added  value 
generated  by  foreign  businesses  and  reducing  its 
net  migration  rate.  On  the  positive  side,  Greece 
has  the  highest  rate  of  decline  of  metal  footprint 
per capita and the biggest army staff in the EU.  

remain  among 

increasing 

39 

 
ENVIRONMENTAL SUSTAINABILITY 
ANNEX 6: EUROPEAN GREEN DEAL 

a

Greece  has  made  progress  in  the  green 
transition, with more action needed in several 
areas,  including  managing  potential  losses  from 
climate  hazards,  sustainable  water  management 
and  the  circular  economy.  This  Annex  provides  a 
snapshot  of  climate,  energy,  and  environmental 
aspects of the transition in Greece (35). 

Greece  is  therefore  expected  to  exceed  its  effort 
sharing  target  with  existing  measures.  The  draft 
updated  NECP  reiterates  Greece’s  commitment  to 
achieve climate neutrality by 2050. 

Graph A6.1: Greenhouse gas emissions from the 
effort sharing sectors in Mt CO2eq, 2005-2022 

Greece's  draft  updated  national  energy  and 
climate plan (NECP) lacks key information on 
investment  needs  and  funding  sources  to 
achieve  its  2030  climate  and  energy  targets.  The 
plan  provides  quantitative  information  on  the 
investment  needs  based  on  a  central  scenario 
(with existing measures, WEM). It outlines some of 
the  main  sources  of  funding  for  the  key  policies 
and  measures  but  it  briefly  describes  the  current 
funding programmes instead of linking funding to 
lacks  a 
planned  policies  and  measures. 
consolidated 
budgetary 
all 
information,  which  means  it  is  not  possible  to 
identify any potential funding gaps (36). 

overview 

of 

It 

Greece  is  projected  to  reach  its  2030  effort 
sharing  target  with  existing  policies  and 
measures (37).  Greece’s  2022  greenhouse  gas 
emissions  from  its  effort  sharing  sectors  are 
expected to come in at 28.6% below 2005 levels. 
Current  policies  are  projected  to  reduce  Greece's 
emissions by 35.5% from 2005 levels. This would 
exceed  Greece’s  effort 
target,  a 
22.7% reduction,  by  12.8  percentage  points (38). 

sharing 

(35)  This Annex is complemented by Annex 7 on energy transition 

and competitiveness, Annex 8 on the fair transition to 
climate neutrality, Annex 9 on resource efficiency, circularity, 
and productivity, and relevant topics in other annexes to this 
country report. 

(36)  See the Commission’s (2023) assessment of the draft 

national energy and climate plan of Greece.  

(37)  The national greenhouse gas emission reduction target is 
laid down in Regulation (EU) 2023/857 (the Effort Sharing 
Regulation). The aim is to align action in the sectors 
concerned with the objective to reach the EU-level economy-
wide target of greenhouse gas reductions of at least 55% 
compared to 1990 levels. The target also applies to the 
sectors outside the current EU Emissions Trading System, 
notably buildings (heating and cooling), road transport, 
agriculture, waste, and small industry (known as the effort 
sharing sectors).  

(38)  The effort sharing emissions for 2022 are based on 
approximated inventory data. The final data will be 
established in 2027 after a comprehensive review. Greece’s 
draft updated NECP does not provide emissions projections 
for the effort sharing sectors. The information on projections 

40 

Source: European Environment Agency 

There is scope for increasing Greece’s target 
for  energy  efficiency  in  its  final  updated 
NECP (39).  Greece’s  energy  efficiency  contribution 
of  18.2  Mtoe  in  primary  energy  consumption  and 
15.4  Mtoe  in  final  energy  consumption  for  2030 
set  in  the  draft  updated  NECP  are  less  ambitious 
than  the  contribution  required  under  the  Energy 
Efficiency  Directive.  Greece’s  renewable  energy 
contribution set in its draft updated NECP, to reach 
44%  by  2030,  is  significantly  higher  than  the 
required contribution of 39%. 

Greece  has  yet  to  make  the  shift  to 
sustainable  transport (40).  Passenger  cars  are 

of effort sharing emissions ‘with existing measures’ (WEM) is 
based on the latest data that had to be reported by 
15 March 2023 under Article 18 of Regulation 2018/1999 
(the Governance Regulation). 

(39)  The EU target set out in the revised Renewable Energy 

Directive is to have 42.5% of gross final energy consumption 
coming from renewable energy sources by 2030, with the 
aspiration to reach 45%. The formula in Annex I to Directive 
(EU) 2023/1791 sets the indicative national contribution for 
Greece at 417.1 Mtoe for primary energy consumption. The 
Commission communicated a corrected national contribution 
of 14.64 Mtoe in final energy consumption for 2030 in 
accordance with Article 4(5) of the Energy Efficiency 
Directive to increase the contribution towards the Union’s 
binding energy efficiency target. See the Commission 
Recommendation of 18/12/2023 Greece.  

(40)  Unless otherwise indicated, data in this section refer to 
2021. See European Commission, 2023, EU transport in 
figures, transport.ec.europa.eu. 

01020304050607020052022MtCO2eWasteSmall industryAgricultureBuildings (under ESR)Domestic transport (excl. aviation) 
 
 
 
 
   
 
 
 
used for 87.1% of distances travelled, and 97.7% 
of inland freight is transported by road, according 
to  2022  data.  Battery  electric  cars  account  for 
only  0.1%  of  Greece’s  car  fleet.  The  country  has 
about  3 200  publicly  accessible  charging  points, 
one for every six electric vehicles. 

farming, 

sustainable 

Carbon 
forest 
management  and  replacing  harvested  or 
damaged  forests  have  the  potential  to 
significantly  increase  carbon  removals  in 
Greece.  Greece's  land  use,  land-use  change  and 
forestry  (LULUCF)  sector  has  achieved  stable 
carbon  removals  for  over  ten  years.  For  reaching 
the  2030  LULUCF  target,  additional  removals  of 
1 154 kt CO2eq  are  yet  missing (41).  The  latest 
projections indicate that Greece is on track to meet 
the target. (42)  

Greece is particularly vulnerable to wildfires 
and  water-related  climate  hazards  and  has 
low  levels  of  insurance  coverage.  It  is  both 
vulnerable  to  the  impacts  of  extreme  weather 
events  such  as  floods,  coastal  floods,  droughts 
and  heatwaves  and  at  risk  due  to  a  persistently 
high  climate  protection  gap (43).  Overall,  between 
5-20% of economic losses over the past decades 
were  covered  by  insurance.  Wildfires  are  the 
highest 
impact 
risk,  with  a  high  economic 
historically.  There  are  also 
to  water 
management, but work has begun to assess flood 
risk  management  plans.  Putting  in  place  the  right 
climate 
institutional 
is 
adaptation.  Greece  has  made  progress 
in 
understanding  and  monitoring  the  effects  of 
in 
climate 
implementing  adaptation  strategies,  notably  due 
to  insufficient  human  and  financial  resources (44). 
The creation of a climate crisis and civil protection 
ministry is welcome, but it has not been assigned 
sufficient  resources  to  effectively 
implement 
adaptation policies. 

change  but 

challenges 

settings 

crucial 

faces 

risks 

to 

(41)  National LULUCF targets of the Member States in line with 

Regulation (EU) 2023/839. 

(42)  Projections submitted in Greece’s draft updated national 

energy and climate plan, 2023. 

(43)  On the climate protection gap, see the annotations to Table 

A6.1. 

(44)  See the Commission’s 2023 assessment and 

recommendation on Greece’s progress on climate 
adaptation. 

41 

Sustainable  water  management  is  a  major 
environmental  issue  for  Greece.  The  water 
exploitation  index  plus  (WEI+),  which  compares 
water  use  against  renewable  water  resources, 
measured  13.3%  in  2019  versus  EU  average  of 
3.6%. The worst seasonal water scarcity conditions 
were  recorded  at  70.2%  in  Q3  of  2019 (45).  On 
average between 2000 and 2020, 3.2% of land in 
Greece was affected by droughts, rising to 4.5% in 
2022. Forests and woodlands tend to be the most 
damaged  ecosystems.  The  efficient  use  of  water 
resources 
by  water 
can 
productivity (46). 
In  2021,  Greece’s  economy 
generated  EUR 49  per  cubic  metre  of  water 
abstracted,  among  the  lowest  water  productivity 
levels in  the  EU  (EU-27  average  EUR  398).  Based 
river  basin 
on 
management  plan (47),  64%  of  all  surface  water 
bodies achieved a good ecological status and 87% 
achieved  a  high  chemical  status.  The  marine 
in  a  good 
waters  of  Greece  are  not  yet 
environmental  status  for  all  the  descriptors  used 
in the Marine Strategy Framework Directive, based 
on  the 
its  marine 
strategy (48). 

latest  data  reported  for 

be  measured 

reporting 

second 

the 

in 

to 

Greece  has  scope 
improve  nature 
protection.  By  the  end  of  2021,  Greece  had 
protected 35% of its land and 19.8% of its marine 
areas.  48%  of  habitats  and  35%  of  species  were 
in a good conservation status (49). According to the 
the  Common 
latest  available  data 
Farmland Bird Index has fallen to 76, below the EU 
average. 
the  pace  of  Greece’s 
transition to a circular economy is insufficient and 
improve  waste 
room 
the  country  has 
management and recycling (see Annex 9).  

In  addition, 

(2019), 

to 

Intensive  agriculture  has  a  major  impact  on 
ecosystems, biodiversity, air and soil quality. 
In Greece, organic farming accounted for 10.2% of 
the  total  utilised  agricultural  area  in  2020  versus 

(45)  WEI+ values above 40% indicate severe stress and 

unsuitable freshwater use. 

(46)  Measured as GDP over total fresh surface water abstracted 

in cubic meters. 

(47)  Data from the 3rd river basin management plan are not yet 

available. 

(48)  EUR-Lex – 52022XC0314(01) – EN – EUR-Lex (europa.eu) ; 
The next reporting on the state of the marine environment is 
due in October 2024. See also Greece – Marine (europa.eu). 

(49)  Against the EU average of 15% and 28%. 

 
 
 
Graph A6.2: Changes in livestock density and 
organic farming 

Livestock unit (LSU)/ha of UAA: it measures the stock of 
animals (cattle, sheep, goats, equidae, pigs, poultry and 
rabbits) converted in LSUs per hectare of UAA. 
Source: Eurostat 

Sustainable  water  management  remains one 
of 
the  major  challenges  for  Greece’s 
agriculture  sector.  In  2020,  16.4  of  agricultural 
land  in  Greece  is  irrigated,  one  of  the  highest 
shares  in  the  EU,  and  therefore  agriculture  has  a 
high impact on water resources. Water abstracted 
for  agricultural,  Forestry  and  Fishing  purposes 
accounted  for  80.5%  of 
total  volume 
abstracted in 2019. 

the 

Greece  would  benefit  from  an  increase  in 
environmental  investment.  Over  the  2014-
2020  period,  the  environmental  investment  gap 
was  estimated  at  EUR 2.7  billion  per  year, 
accounting for 1.5% of GDP. The gap is estimated 
to  be  decreasing  over  the  2021-2027  period  at 
EUR 1.7 billion. Sufficient resources have yet to be 
allocated, 
for  biodiversity  and 
ecosystem  protection  (a  gap  of  EUR  788  million). 
Greece  would  also  benefit  from  investing  in 
sustainable  water management  (EUR  208  million) 
as well as the circular economy and in waste (EUR 
379 million). 

in  particular 

9.1%  in  the  EU-27  and  the  EU  target  of  25%  by 
2030.  Food  waste  production  remains  relatively 
high,  while  at  the  same  time  the  composting  and 
digestion rates are too low. The country produced 
191  kg  of  food  waste  per  capita  in  2020,  above 
the EU average of 131 kg per person. Most waste 
was generated during household use. 33% of soil 
in Greece could be in an unhealthy state, according 
to  the  best  available  information  on  soil  health 
issues  at  Member  State  level  used  in  the  impact 
assessment  for  the  Soil  Monitoring  Law (50), (51). 
The  loss  of  organic  carbon  affects  83%  of 
topsoil 
cropland  and  grassland  area  and 
compaction  affects  11%  of  land.  Conservation 
tillage  practices,  which 
increase  soil  organic 
carbon, were used in only 14% of tillable areas in 
2016 in Greece. 

Greece’s  livestock  farming  sector  is  moving 
to  more  intensive  practices.  While  most  EU 
Member  States  lowered  their  livestock  density 
indices  between  2010  and  2020,  it  increased 
significantly  in  Greece,  from  0.46%  to  0.70% (52). 
However,  the  total  number  of  livestock  units  has 
fallen.  Intensive  poultry  and  pig  farming  are  the 
activities  that  put  the  highest  burden  on  the 
environment in  terms  of  ammonia  emissions.  The 
agricultural  sector  was  responsible  for  generating 
90.1%  of  all  ammonia  emissions,  comparable  to 
the  EU  average  of  90.7%.  Reducing  the  use  of 
pesticides  and  nutrients  would  help 
reduce 
pollution.  The  latest  figures  on  the  gross  nitrogen 
balance on agricultural land in Greece indicate an 
average  surplus  of  59  kg  of  nitrogen  per  hectare 
per  year 
in  2015.  11.9%  of  groundwater 
monitoring  stations  indicate  levels  above  the 
maximum 50 mg nitrates/l. The gross phosphorus 
balance was 0 kg/ha in 2015. The chemical status 
of  water  bodies  is  less  affected  by  pesticide 
contamination than the EU average. Overall, 2.1% 
of monitoring sites were reported to have pesticide 
levels  exceeding  the  thresholds  set  by  the  Water 
Framework Directive. 

(50)  SWD 417 final of 5.7.2023 - impact assessment for the 

Directive of the European Parliament and of the Council on 
Soil Monitoring and Resilience (Soil Monitoring Law), (see. p. 
10, pp. 189-190, pp. 835-845). 

(51)  However, not all soil degradation processes could be 

quantified for all land uses. This number simply indicates an 
order of magnitude. 

(52)  Still below the EU average of 0.75%. 

42 

01202468101220162020% LSU per hectare% of total utilised agricultural areaLivestock density index Greece (% LSU per ha)Livestock density index EU-27 (% LSU per ha)Organic farming Greece (% of total utilised agricultural area)Organic farming EU-27 (% of total utilised agricultural area) 
 
        
Graph A6.3: Environmental investment gaps, 
annual average 

The numbers are computed by the European Commission 
based on the latest internal reports, Eurostat, EIB and national 
data sources. 
Source: European Commission 

43 

7961514741,24135020837978802004006008001,0001,200Pollution prevention &controlWater managementCircular economy andwasteBiodiversity andecosystemsmillion EUR2014-20202021-2027 
        
 
Table A6.1:  Indicators tracking progress on the European Green Deal from a macroeconomic perspective 

Sources:  (1)  Member  States’  emission  data  for  2019  and  2020  are  in  global  warming  potential  (GWP)  values  from  the  4th 
Assessment Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC). Member States’ 2005 base year emissions 
under  Regulation  (EU)  2018/842,  emissions  data  for  2021  and  2022,  and  2030  projections  are  in  GWP  values  from  the  5th 
Assessment Report (AR5) of the IPCC. 2021 data are based on the final inventory reports, 2022 data are based on approximated 
inventory reports and European Environmental Agency’s calculation of effort sharing emissions. The final data for 2021 and 2022 
will  be  established  after  a  comprehensive  review  in  2027.  The  2030  target  is  in  percentage  change  of  the  2005  base  year 
emissions. Distance to target is the gap between the 2030 target and projected effort sharing emissions with existing measures 
(WEM) and with additional measures (WAM), in percentage change from the 2005 base year emissions. The measures included 
for  the  2030  emission  projections  reflect  the  state  of  play  as  reported  in  Member  States'  draft  updated  national  energy  and 
climate plans or, if unavailable, as reported by 15 March 2023 as per Regulation 2018/1999. (2) Net removals are expressed in 
negative figures, net emissions in positive figures. Reported data are from the 2024 greenhouse gas inventory submission. 2030 
value  of  net  greenhouse  gas  removals  as  in  Regulation  (EU)  2023/839  –  Annex  IIa.  (3)  The  2030  national  objectives  for 
renewable  energy  and  energy  efficiency  are  indicative  national  contributions,  in  line  with  Regulation  (EU)  2018/1999  (the 
Governance  Regulation),  the  EU-level  2030  renewable  energy  target  set  out  in  Directive  EU/2018/2001  amended  by  Directive 
EU/2023/2413 (the revised Renewable Energy Directive) – 42.5% of gross final energy consumption with the aspiration to reach 
45% –, and the formula in Annex I to Directive (EU) 2023/1791 (the Energy Efficiency Directive). (4) Passenger battery electric 
vehicles (BEV) and fuel cell electric vehicles (FCEV). (5) The climate protection gap refers to the share of non-insured economic 
losses caused by climate-related disasters, based on modelling of the risk from floods, wildfires, windstorms, and the insurance 
penetration rate. Scale: 0 (no protection gap) –4 (very high gap) (European Insurance and Occupational Pensions Authority, 2022). 
(6) Total water consumption in renewable freshwater resources available for a territory and period. (7) Material extractions  for 
consumption and investment. (8) Years of potential life lost through premature death due to exposure to particulate matter with a 
diameter  of  less  than  2.5  micrometres.  (9)  Share  of  habitats  in  good  conservation  status  according  to  the  records  submitted 
under  Art.  17  of  the  Habitats  Directive  (Directive  92/43/EEC)  for  2013-2018.  (10)  Multi-species  index  measuring  changes  in 
population abundances of farmland bird species. (11) Source: annex 12 of the Commission’s proposal for a soil monitoring law, 
SWD (2023) 417 final. (12) Estimates of organic carbon content in arable land. 

44 

Target200520192020202120222030WEMWAMProgress to climate and energy policy targetsGreenhouse gas emission reductions in effort sharing sectors (1)Mt CO2eq, %, pp62,985.2-28%-31%-30%-29%-23%1323Net greenhouse gas removals from LULUCF (2)Kt CO2eq-3 550-5 140-5 203 -5 013-5 391-4,373n/an/aShare of energy from renewable sources (1) (3)%7%20%22%22%23%39%--Energy efficiency: primary energy consumption (3)Mtoe30.322.319.220.320.917.1Energy efficiency: final energy consumption (3)Mtoe21.016.214.415.216.114.6Projected20182019202020212022202120222030Green transition: mobility         Greenhouse gas emissions: road transportMt CO2e---16.418.1769.0786.616.2Share of zero-emission vehicles in new registrations (4)% 0.10.20.82.22.8912.1n/aNumber of publicly accessible AC/DC charging points --277611982299178446956n/aShare of electrified railways%29.6%32.1%31.2%31.3%-56.1%-n/aGreen transition: buildings         Greenhouse gas emissions: buildingsMt CO2e---6.06.0537.0486.74.8Final energy consumption in buildings2015=10094.7%98.4%97.6%99.8%101.3%104.0%97.2% Climate adaptation         Climate protection gap (5)score 1-4--2.22.42.01.51.5n/a20182019202020212022202020212022State of the environmentWater | Water exploitation index (WEI+) (1) (6)% of renewable freshwater11.813.3---3.6--Circular economy | Material footprint (7)tonnes per person13.012.811.811.413.014.214.814.9Pollution | Years of life lost due to air pollution by PM2.5 (8)per 100.000 inhabitants1,087883807918-545584-Biodiversity | Habitats in good conservation status (9)%48.314.7                       Common farmland bird index (10)2000=10079.276.0---78.2--Green transition: agri-food sectorOrganic farming% of total utilised agricultural area9.3210.2610.15--9.1--Nitrates in groundwatermg NO3/litre12.7814.4213.91--20.42--Food waste per capitaKg per capita191--130131-Share of soil in poor health (11)%3341Soil organic matter in agricultural land (12)Mt per ha158----7,904--DistanceEU-27 
 
      
 
ANNEX 7: ENERGY TRANSITION AND COMPETITIVENESS 

This  Annex (53)  sets  out  Greece’s  progress 
and  challenges  in  accelerating  the  net-zero 
energy  transition  while  bolstering  the  EU’s 
competitiveness 
energy 
sector (54). It considers measures and targets put 
forward in the draft updated National Energy and 
Climate Plans (NECP) for 2030 (55). 

clean 

the 

in 

Greece  has  significantly  accelerated  the 
installation  of  renewable  energy  capacity, 
implemented  a  series  of  energy  efficiency 
measures  supported  by  EU  funds  and  has 
taken steps to enhance its security of supply 
and  that  of  the  broader  region.  However, 
important  challenges  remain  including  in  grid 
capacity. 

Aligning with the prevailing trends witnessed 
across the EU, retail energy prices in Greece 
exhibited  a  noteworthy  decline  in  2023, 
dipping  below  the  levels  recorded  end  of  
2022.  Average  household  gas  prices  in  Greece 
were  significantly  reduced  by  21%  in  the  second 
half  of  2023,  compared  to  the  first  semester, 
the  EU  average.  Average 
remaining  below 
household  electricity  prices 
remained  stable 
throughout  the  second  semester  of  2023,  around 
19% below the EU average, following a 5% decline 
during the first half of the year. For the industrial 
and  services  sector,  both  gas  and  electricity 
average  prices  have  been  decreasing  since  their 
peak  in  December  2022.  In  the  second  half  of 
2023,  industrial  consumers  experienced  a  31% 
decrease for gas and a 4% decrease for electricity 
prices. In 2023, industry/service electricity prices in 
Greece remained below the EU average. 

Graph A7.1: Greece´s energy retail prices for 
households and industry & industry 

(1) For industry, consumption bands are I3 for gas and IC for 
electricity, which refer to medium-sized consumers and 
provide an insight into affordability 
(2) For households, the consumption bands are D2 for gas 
and DC for electricity 
(3) Industry prices are shown without VAT and other 
recoverable taxes/levies/fees as non-household consumers 
are usually able to recover VAT and some other taxes 
Source: Eurostat 

consumers 

In  relative  terms,  electricity  prices  for  non-
household 
increased 
significantly  compared  to  the  US  and  Japan, 
thus  potentially  affecting 
international 
competitiveness  of  energy-intensive  industries  in 
Greece. 

have 

the 

Graph A7.2: Trends in electricity prices for non-
household consumers (EU and foreign partners) 

(53)  It is complemented by Annex 6 as the European Green Deal 

focuses on the clean energy transition and by Annex 8 on the 
actions taken to protect the most vulnerable ones 
complementing ongoing efforts under the European Green 
Deal, REPowerEU and European Green Deal Industrial Plan. 

(54)  In line with the Green Deal Industrial Plan and the Net-Zero 

Industry Act 

(55)  Greece submitted its draft updated NECP in November 2023, 
Commission issued an assessment and country specific 
recommendations on 18 December 2023. Commission 
Recommendation, Assessment (SWD) and Factsheet of the 
draft updated National Energy and Climate Plan of Greece - 
European Commission (europa.eu) 

(1) For Eurostat data (EU and EL), the band consumption is ID 
referring to large-sized consumers with an annual 
consumption of between 2 000 MWh and 20 000 MWh, such 
as in electricity intensive manufacturing sectors, and gives an 
insight into international competitiveness 
(2) JP = Japan 
Source: Eurostat, IEA 

45 

0.000.050.100.150.200.250.300.35€/KWhGas (industry & service) - ELGas (industry & service) - EUGas (households) - ELGas (households) - EUElectricity (industry & service) - ELElectricity (industry & service) - EUElectricity (households) - ELElectricity (households) - EU050100150200250300Index ( 2018 S2 = 100)JPUKUSELEU 
 
 
   
  
 
 
Most  of  the  direct  energy  support  measures 
to  final  consumers  implemented  since  the 
outset of the energy crisis were not targeted 
at  the  most  vulnerable  households  or  firms. 
The  measures  continued  in  2023,  even  though 
were  trimmed  as  electricity  prices  fell,  but  many 
households  and  businesses 
it 
challenging  to  pay  their  bills  amid  persistent 
inflation.  Worth  mentioning  that  in  2023  an 
emergency  heating  allowance  was  announced,  to 
help  up 
to  1.2  million  energy-vulnerable 
consumers,  along  with  a  special  electricity  tariff 
for  households  with  four  or  more  children, 
targeting up to 30 000 families.  

found 

still 

Consumer  empowerment  in  the  electricity 
and  gas  markets  is  moving  in  the  right 
direction,  but  the  deployment  of  smart 
meters  is  still  lagging.  In  November  2023,  the 
Ministry  of  Environment  and  Energy  announced  a 
series  of  measures  to  protect  retail  customers  in 
view of the suspension of general subsidies and to 
boost competition in the retail market, including a 
new  model  for  electricity  tariffs  for  low  voltages. 
Moreover,  the  national  regulator  RAEWW  intends 
to  establish  an  online  price  comparison  tool (56) 
and  an  Energy  Ombudsman,  to  resolve  disputes 
and  spare  consumers  from  time-consuming  and 
costly  legal  action.  Regarding  smart  meters,  their 
deployment 
the  Greek 
Recovery and Resilience Plan, but their penetration 
rate  remains  particularly  low.  Up  to  now  only 
420 000  electricity  smart  meters  have  been 
installed  at  low  voltage (57),  but  Greece  is  among 
the countries with the lowest adoption rate, falling 
significantly  short  of  the  EU  target  of  at  least 
80%.  

is  promoted 

through 

Greece  has  taken  significant  steps  to 
its  security  of  supply  and 
strengthen 
diversify its natural gas sources. Gas has been 
playing  an  increasing  role  in  Greece’s  energy 
system  over  the  last  years  covering  41%  of 
electricity  generation,  22%  of  industry  energy 
demand  and  10%  of  space  heating  demand (58). 
Between August 2022 and December 2023 Greece 
managed  to  reduce  its  gas  demand  by  16%  in 

(56)  www.energycost.gr 

(57) As communicated by the national authorities to the 

Commission services 

(58)  EU energy statistical pocketbook and country datasheets - 

comparison  with  the  average  of  the  previous  five 
years. 

level  group,  Greece  has 

Greece  significantly  boosted  its  natural  gas 
exports  with  the opening  of the  IGB  pipeline 
to  Bulgaria.  The  planned  expansion  of  the  IGB 
pipeline between Greece and Bulgaria from 3 to 5 
bcm/year  will  also  increase  security  of  supply  for 
the  region.  In  the  context  of  the  Central  and 
SouthEastern  Europe  energy  connectivity  (CESEC) 
high 
signed  a 
Memorandum of Understanding with Bulgaria and 
Romania  focusing  on  cooperation  to  tap  their 
common renewable energy potential. Moreover, on 
top  of  the  already  existing  LNG  infrastructure 
(Revythousa),  the  Alexandroupolis  FSRU  (floating 
be 
regasification 
and 
storage 
unit)  will 
in  2024,  positioning 
commercially  operational 
Greece  at 
the  energy 
diversification efforts of the broader region. 

the  epicentre  of 

Greece  doesn’t  have  storage  facilities  apart 
from  its  LNG  terminals  and  FSRUs.  However, 
under the gas storage regulation, it has stored 100 
mcm of gas, covering 2% of its annual demand, in 
Italy  (via  reverse  flow  in  the  TAP  pipeline)  and 
Bulgaria.  Greece  also  dedicates  a  small  share  of 
its  LNG  storage  capacity  to  support  emergency 
operations by gas-fired power plants.  

The  development  of  a  CCS  facility  in  South 
Kavala and the construction of a H2 pipeline 
between Greece and Bulgaria are labelled as a 
Projects of Common Interest.  

As  reiterated  in  the  draft  updated  NECP, 
Greece  intends  to  phase  out  lignite  from  its 
electricity  production  by  2028.  The  overall 
2028 target is also included in the first ever Greek 
Climate  Law (59).  Compared  to  the  territorial  just 
transition  plans  (TJTPs)  submitted  in  2021,  the 
draft  updated  NECP  extends  the  phasing  out  of 
three lignite units from 2023 to 2025.  

Installed  renewable  capacity  surged  by 
15.5% in 2023, compared to 2022, driven by 
a significant increase in solar. Total renewable 
energy capacity in Greece in 2023 stood at 15 805 
MW.  As 
the  acceleration  of  solar 
deployment,  the  total  installed  capacity  in  2023 
was  7  430  MW,  almost  all  of  which  is  PVs.  The 

regards 

European Commission (europa.eu) 

(59)  Greek Climate Law 4936/2022, article 11 

46 

 
 
 
total wind capacity in Greece for 2023 was 5 220 
MW  (an  increase  of  11%),  all  of  which  was 
onshore wind (60).  

Graph A7.3: Greece's installed renewable capacity 
(left) and electricity generation mix (right) 

(1) "Other" includes renewable municipal waste, solid biofuels, 
liquid biofuels, and biogas. 
Source: IRENA, Ember 

steps 

significant 

Greece  made 
in 
implementing  reforms  to  accelerate  the 
deployment  of  renewables  but  needs  to 
continue these efforts in order to achieve its 
ambitious  targets.  In  its  REPowerEU  chapter, 
Greece  included  the  obligation  to  further  simplify 
decision-making for collective self-consumption, to 
create  a  self-consumer  registry  and  a  contact 
point  for  energy  communities.  Moreover,  it  also 
optimised  its  land  and  sea  space  usage  for  the 
development  of  renewables,  under  which the  first 
Offshore Wind Organized Development Areas were 
identified.  

Regarding  Greece’s  share  of  renewables  in 
heating  and  cooling  (30.61%  in  2022  - 
mainly  heat  pumps  and  solar  thermal 
systems)  the  target  for  2030  is  46%,  which 
will be met mainly by heat pumps.  The target 
stated  in  the  draft  NECP  and  the  measures  to 
achieve  it  appear  rather  unclear  as  it  is  not 
described  how  Greece 
increase 
renewable  energy  in  heating  and  cooling,  even 
though  usage  of  heat  pumps is  expected  to grow 
rapidly.   

intends 

to 

Greece  may  face  challenges  regarding  its 
grid  capacity  to  meet  electricity  demand 
while  rapidly  integrating  renewable  energy 

(60)  Figures from IRENA report Renewable Capacity Statistics 

2024. The data might differ from the Eurostat data because 
a different methodology is used to calculate capacity in AC 
and DC 

47 

the  project 

sources  and  other  technologies,  as  well  as 
increasing  the  capacity  of  the  national 
system.  The  draft  updated  NECP  estimates  that 
electricity generation from renewables in 2030 will 
reach  29  GW,  based  on  the  investment  plan  for 
developing  the  transmission  system.  It  is  worth 
mentioning 
the 
autonomous  electricity  systems  of  the  Cyclades 
islands  to  the  mainland  grid  and  the  Ariadne 
project  (Crete-Attica),  with  a  completion  date 
planned  for  2024.  Moreover,  in  its  REPowerEU 
Chapter,  Greece  included  a  reform  on  the  grid 
capacity  increase.  With  respect  to  cross-border 
interconnections, a second overhead line of 400 Kv 
between  Greece  and  Bulgaria  was  commissioned 
in 2023. 

interconnect 

to 

Energy  efficiency  gains  have  slowed 
in 
Greece,  although  there  is  still  untapped 
potential in energy efficiency. In 2022, Greece 
had a primary energy consumption of 20.9 Mtoe, a 
2.8%  increase  compared  to  2021  and  a  21.2% 
decrease compared to 2012. It had a final energy 
consumption  of  16.1  Mtoe,  a  6.2%  increase 
compared to 2021 and a 5.5% decrease compared 
to 2012. The best results came from the industry 
sector,  which  nevertheless  increased  its  final 
energy consumption by 0.1%, and the worst from 
the  transport  sector  which  increased  its  final 
energy consumption by 12.8%. 

Greece  has  implemented  a  series  of  energy 
efficiency  measures  with  the  support  of 
several EU funds. However, most of the schemes 
are  addressed  to  buildings  and  schemes  for 
industry are rather limited. Support under Greece’s 
recovery and resilience plan has been scaled up in 
the framework of the REPowerEU Chapter, notably 
by upscaling investment in residential and services 
buildings.  The  revised  plan  supports  the  green 
transition  through  investment  to  increase  energy 
efficiency  for  more  than  116  500  residences, 
including  energy-poor  households. 
  The  key 
enabling measures to increase energy efficiency in 
businesses is the  promotion  of  energy  audits  and 
energy management systems.  

Most of the schemes on energy efficiency are 
still  grant-based  and  the  use  of  financial 
instruments  is  still  very  limited.  In  terms  of 
existing  funding  schemes  addressing  mobilisation 
of investments in energy efficiency, Greece mainly 
relies  on  grant-based  funding  schemes  –  like  the 
“Exoikonomo”  programme  that  targets  residential 
buildings  and  residential  units.  However,  it  has 

 
 
 
transformers,  electrical  switchgear  and  towers. 
Particularly  noteworthy  is  a  medium-sized  steel 
manufacturing  company  producing  specialised 
components  essential  for  the  construction  of 
supporting  structures  for  floating  offshore  wind 
turbines.  Also  worth  mentioning  is  a  vertical 
production  plant  manufacturing  the  EW16  wind 
rotor and a wind tower manufacturing plant with a 
maximum  capacity  of  450  sections  annually. 
Recent  market  dynamics  have  taken  a  toll  on 
established  manufacturers  of  photovoltaic  (PV) 
frames, leading to closures amid stiff competition 
from  Chinese  counterparts.  In  contrast,  a  Greek 
company 
the  development, 
production  and  distribution  of  cutting-edge  lead-
acid  and  lithium-ion  batteries,  along  with  energy 
storage  systems  and  chargers,  is  currently  the 
third  largest  manufacturer  of  batteries  in  the 
global  motive  power  battery  industry,  with  about 
EUR  1  billion  of  consolidated  annual  sales  and  a 
workforce of approximately 3 100 people.  

specialising 

in 

Despite  some  positive  indicators  in  Greece's 
innovation  landscape,  the  country  continues 
to  fall  behind  several  other  Member  States. 
Recent  studies  tracking  research  and  innovation 
(R&I) have shown encouraging trends but Greece's 
private  expenditure  on  research  and  development 
(R&D)  related  to  Energy  Union  priorities  in  2019 
stood  at  0.018%  of  GDP,  notably  lower  than  the 
EU  average.  A  significant  portion  of 
this 
expenditure  (around  68%)  was  directed  towards 
renewable energy initiatives. While venture capital 
investment has displayed positive growth in recent 
years,  the  figures  remain  somewhat  modest.  In 
2021, approximately EUR 4.5 million was invested 
in  climate  technology  firms  within  the  energy 
sector,  constituting  about  1.5%  of  total  VC 
investments in Greece (EU average is 10%).  

included  in  its  Recovery  and  Resilience  Plan  a 
measure  to  lunch  non-grant  financial  instruments 
for  energy  efficiency  and  additionally  the  Loan 
Facility 
leverage  significant 
to 
is  expected 
investments by the private sector. 

Greece  needs  to  step  up  its  efforts  in  the 
residential  sector  to  achieve  a  meaningful 
contribution to the 2030 reduction target for 
energy  consumption  by  buildings.  As  per  its 
most  recent  Long  Term  Renovation  Strategy, 
Greece 
reduce  building  energy 
consumption  by  8%  in  2030  compared  to  2015. 
However,  between  2015  and  2022,  final  energy 
consumption in the residential sector declined only 
by 1% (61).  

intends 

to 

Greece is carrying out a number of checks on 
products  covered  by  eco-design  and  energy 
labelling,  though  they  may  be  too  low  with 
respect  to  the  size  of  its  market.  This  generates 
concerns  with  respect  to  the  level  playing  field 
among  economic  operators  and  uncertainty  as  to 
the  compliance  levels  of  the  products  concerned, 
and  therefore  possible  missed  energy  and  CO2 
savings.   

in 
Greece  expects  to  have  a  capacity 
electrolysers of 300 MW in 2030 (62). Only two 
small  research  units  and  a  small  commercial 
electrolytic  hydrogen  production  plant  have  been 
built  so  far.  Some  hydrogen  production  projects 
and  pilots 
from  EU 
receive 
programmes  have  been  made  public.  The  Greek 
REPowerEU  Chapter 
to 
facilitate the production of renewable hydrogen. 

includes  measures 

funding 

that 

Greece's  manufacturing  landscape  for  clean 
technologies  has  historically 
leaned  on 
its  renewable  energy 
imports  to  drive 
initiatives. However, recent years have witnessed 
the emergence of noteworthy initiatives notably in 
the  wind  rotor  and  battery  manufacturing  supply 
chain.  

In  the  wind  energy  domain,  although  critical 
components  such  as  nacelles,  blades  and  control 
systems  are  imported,  local  production  exists  for 

(61)  Final energy consumption in households from Eurostat, 
climate-corrected by the Joint Research Centre, with 
reference period 2005-2022 

(62)  Draft updated National Energy and Climate Plan 

48 

 
 
Table A7.1:  Key Energy Indicators 

(1) The ranking of the main suppliers is based on the latest available figures (for 2022) 
(2) Venture Capital investment includes Venture Capital deals (all stages), Small M&A deals and Private Equity (PE) growth deals 
(for companies that have previously been part of the portfolio of a VC investment firm or have received Angel or Seed funding). 
Source: Eurostat, Gas Infrastructure Europe, JRC elaboration based on PitchBook data (03/2024), JRC SETIS (2024) 

49 

20192020202120222019202020212022Import Dependency [%] 74.1%81.4%73.8%79.6%60.5%57.5%55.5%62.5%of Solid fossil fuels 6.4%10.2%9.6%-0.7%43.3%35.8%37.3%45.8%of Oil and petroleum products 95.7%106.4%93.1%101.8%96.7%96.8%91.7%97.7%of Natural Gas 99.0%100.7%99.4%101.6%89.7%83.6%83.6%97.6%Dependency from Russian Fossil Fuels [%]of Natural Gas 32.3%39.0%40.5%17.5%39.7%41.3%41.1%21.0%of Crude Oil21.9%28.2%22.9%18.7%28.8%26.7%26.4%19.5%of Hard Coal88.7%87.0%95.9%11.6%43.5%49.1%47.4%21.5%2016201720182019202020212022Gas Consumption (in bcm)4.1                   4.9                   4.8                   5.2                 5.8                 6.4                 5.2                 Gas Consumption year-on-year change [%]29.4%21.3%-1.9%8.3%11.5%10.4%-19.6%Gas Imports - by type (in bcm)4.1                   5.0                   4.9                   5.2                 5.9                 6.4                 5.7                 Gas imports - pipeline3.3                   3.5                   3.9                   2.4                 2.9                 4.2                 2.2                 Gas imports - LNG0.81.51.02.83.02.23.6                 Gas Imports - by main source supplier (in bcm) (1)United States-                   -                   0.1                   0.2                 1.5                 1.1                 1.9                 Russia2.6                   2.9                   3.2                   1.7                 2.3                 2.6                 1.0                 Azerbaijan-                   -                   -                   -                 0.0                 1.2                 1.1                 Egypt-                   -                   -                   0.3                 0.1                 0.1                 0.4                 20192020202120222023LNG Terminals - storage capacity m3 LNGNumber of LNG Terminals1                      1                      1                      1                    1                 LNG Storage capacity (m3 LNG)225,000          225,000          225,000          225,000        225,000     Underground StorageNumber of storage facilities00000Technical Capacity (bcm)0.00.00.00.00.020162017201820192020202120222023Gross Electricity Production (GWh) (2)54,439            55,266            53,263            48,626          48,252          54,715          52,671          -              Combustible Fuels39,798         41,698         37,412         32,880       31,055       33,020       30,648       -              Nuclear0000000-              Hydro5,565           4,040           5,760           4,051         3,440         5,961         4,000         -              Wind5,146           5,537           6,300           7,266         9,310         10,483       10,883       -              Solar3,930           3,991           3,791           4,429         4,447         5,251         7,140         -              Geothermal0000000-              Other Sources0-0 00-0 00-              Gross Electricity Production [%]Combustible Fuels73.1%75.4%70.2%67.6%64.4%60.3%58.2%-              Nuclear0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Hydro10.2%7.3%10.8%8.3%7.1%10.9%7.6%-              Wind9.5%10.0%11.8%14.9%19.3%19.2%20.7%-              Solar7.2%7.2%7.1%9.1%9.2%9.6%13.6%-              Geothermal0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Other Sources0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Net Imports of Electricity (GWh)8,796               6,237               6,278               9,944             8,864             3,684             3,447             -              As a % of electricity available for final consumption 16.0%11.2%12.3%19.2%18.1%7.2%7.0%-              Electricity Interconnection [%]-               10.6%9.7%9.8%9.9%6.3%6.3%5.6%Share of renewable energy consumption - by sector [%]Electricity22.7%24.5%26.0%31.3%35.9%35.9%42.4%-              Heating/cooling25.4%28.2%30.1%30.0%31.9%31.1%30.6%-              Transport1.6%4.0%4.1%4.0%5.3%4.4%4.1%-              Overall15.4%17.3%18.0%19.6%21.7%22.0%22.7%-              20192020202120222023VC investments in climate tech start-ups and scale-ups (EUR Mln)1.05             0.65             0.51             11.00             0.70               as a % of total VC investment (3) in Greece start-ups and scale-ups0.6%0.1%0.2%2.7%0.5%Research & Innovation spending in Energy Union R&i prioritesPublic R&I (EUR mln)-               50.2             48.8             -              -              Public R&I (% GDP)-               0.030%0.027%-              -              Private R&I (EUR mln)1.5                8.0                -               -              -              Private R&I (% GDP)0.001%0.005%-                   -                 -                 ELECTRICITY/ENERGYCLEAN ENERGYGreeceEUENERGY DEPENDNCEDIVERSIFICATION 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, 
particularly  for  workers  and  households  in 
vulnerable  situations.  Greece’s  green  economy 
is  expanding.  Between  2015  and  2021,  total  jobs 
in  the  environmental  goods  and  services  sector 
grew  by  30.1%  (to  around  83 400)  (EU:  18.2%), 
reaching  2.1%  of  total  employment  (EU:  2.7%). 
However, further efforts are needed for this trend 
to  continue.  Also,  between  2015  and  2022,  the 
greenhouse  gas  emission  intensity  of  Greece’s 
workforce  (see  Graph  A8.1  and  Table  A8.1) 
declined  from  25.1  to  18.9  tonnes  per  worker. 
Although  this  is  still  above  the  EU  average  (14.3 
tonnes  per  worker  in  2022) (63),  it  indicates  a 
positive  trend  in  the  green  transition.  In  line  with 
the Council Recommendation of 2022 on ensuring 
a  fair  transition  towards  climate  neutrality (64), 
providing  skills  relevant  for  the  green  transition 
will  contribute  to  the  effective  implementation  of 
REPowerEU  plan.  Greece’s  recovery  and  resilience 
plan (RRP) outlines crucial reforms and investment 
for  a  fair  green  transition,  including  for  upskilling 
and 
the 
reskilling  measures,  complementing 
territorial  just  transition  plans  and  actions  by  the 
European Social Fund Plus (ESF+). 

Graph A8.1: Fair transition challenges in Greece 

of 

1.4% 

(3.5% 

comprised 

While  Greece’s  green  sector  is  growing  fast, 
targeted  support  for  the  sectors  most 
affected by the green transition is needed. In 
2023,  employment  in  Greece’s  energy-intensive 
industries (65) 
total 
employment 
the  EU),  although 
in 
employment in mining and quarrying has risen by 
9.6%  since  2015  (to  around  11  400  workers  in 
2023).  The  job  vacancy  rate  in  construction  (see 
Graph A8.2), a key sector for the green transition, 
is lower than the EU average (2.6% vs 3.6% in EU 
in  2023).  This  is  in  line  with  the  perception  of 
small and medium-sized enterprises (SMEs) in the 
sector,  where  89%  reported  that  skills  shortages 
are  holding  them  back 
in  general  business 
activities (66).  According  to  the  European  Labour 
Authority (ELA) (67), labour shortages were reported 
in 2023 for a number of occupations that required 
specific  skills  or  knowledge  for 
the  green 
transition (68),  plumbers  and  pipe  fitters,  air 
conditioning  and  refrigeration  mechanics,  and 
building 
Following 
extensive changes to the labour market, there is a 
need to provide targeted employment and training 
support in line with the transition plans and labour 
market  needs.  In  this  context,  the  Just  Transition 
programme for Greece (worth EUR 1.63 billion) will 
allocate  20.4%  (EUR  280.5  million)  of  its  funding 
to upskilling and reskilling workers in regions most 
affected  by  the  transition,  combined  with  an 
improved  offer  of  training  at  national 
level, 
including  in-work  training  envisaged  under  the 
ESF+  and  in  the  RRP.  With  funds  from  the 
Recovery  and  Resilience  Facility, 
the  public 
employment  services  are  currently  implementing 
training programmes in digital and green skills for 
about 150 000 unemployed people. 

construction 

labourers. 

Source: Eurostat, EU Labour Force Survey, EMPL-JRC GD-
AMEDI/AMEDI+ and DISCO(H) projects (see Table A8.1). 

(63)  Workforce-related calculations are based on the EU Labour 
Force Survey. Note, in the 2023 country report for Greece, 
such indicators were calculated based on employment 
statistics in the national accounts. This may result in limited 
comparability across the two reports. 

reskilling  are  key 

Upskilling  and 
to 
supporting  jobs  in  transforming  sectors.  In 
Greece, 43% of SMEs report that skills required for 
greening  business  activities  are  becoming  more 
important  (EU:  42%) (66).  If  Greece  matches  its 

(65)  * Mining and quarrying (NACE B), chemicals (C20), minerals 

(C23), metals (C24) and automotive (C29). 

(66)  Eurobarometer on skills shortages, recruitment, and retention 

strategies in small and medium-sized enterprises. 

(67)  Based on the European Labour Authority 2024 EURES Report 
on labour shortages and surpluses 2023, i.e., data submitted 
by the EURES National Coordination Offices 

(64)  Council Recommendation of 16 June 2022 (2022/C 243/04) 
covers employment, skills, tax-benefit and social protection 
systems, essential services and housing. 

(68)  Skills and knowledge requirements are based on the 

European Skills Competences and Occupations (ESCO) 
taxonomy on skills for the green transition. 

50 

0.00.51.01.52.02.53.03.5Greenhouse gasemissions per workerEmployment inEnergy-IntensiveIndustriesEnergy povertyTransport poverty(proxy)Carbon inequalityEL Latest vs EU LatestEU LatestEL 2015 vs EU Latest 
 
  
 
 
 
Table A8.1:  Key indicators for a fair transition in Greece 

Source: Eurostat (env_ac_ainah_r2, lfsa_egan2d, ilc_mdes01), EU Labour Force Survey (break in time series in 2021), EMPL-JRC 
GD-AMEDI/AMEDI+ and DISCO(H) projects. 

projected contribution to the EU’s 2030 renewable 
energy 
target,  between  3  000  and  5 180 
additional  skilled  workers  will  be  needed  for  the 
deployment  of  wind  and  solar  energy,  which  may 
require  an  investment  in  skills  of  EUR  19.3-24.2 
million (69).  In  response  to  this,  6.2%  of  the  ESF+ 
funding  for  Greece  (EUR  344.6  million)  will  help 
promote  green  skills  and  jobs,  as  well  as  create 
jobs  for  the  workers  affected  by  the  green 
transition. 

Protecting  people  from  energy  poverty 
continues  to  be  a  challenge  in  Greece.  The 
share  of  the  population  unable  to  keep  their 
homes adequately warm decreased from 29.2% in 
2015 to 19.2% in 2023 but  is still double the EU 
average  (9.3%  in  2022) (70).  Furthermore,  the 
indicator 
increased  by  0.5  percentage  points 
between  2022  and  2023  on  the  back  of  energy 
price  increases  due  to  supply  constraints  caused 
by  the  COVID-19  pandemic  and  Russia’s  war  of 
aggression against Ukraine, despite the emergency 
measures  implemented  in  Greece.  In  particular, 
39.8% of the population at risk of poverty (AROP) 
in 2023 (EU: 20.1% in 2022)  were unable to keep 
their homes adequately warm. On the other hand, 
in  January  2023,  41.9%  of  the  population  at  risk 
of poverty spent a considerable proportion of their 
budget (more than 6%)  on private transport fuels 
(EU: 37.1%) (71). Greece adopted an Action Plan for 
Combatting  Energy  Poverty,  aiming  to  cut  energy 
poverty  by  50%  in  2025  and  75%  in  2030, 
compared to 2016.   

to 

leading 

Air  pollution  remains  a  critical  issue  in 
Greece, 
environmental 
inequalities.  In  2021,  the  consumption  footprint 
for 20% of the population with the highest income 
was  1.8  times  higher  than  the  footprint  of  the 
poorest  20% (72)  (EU:  1.8).  For  both  groups,  the 
consumption  footprint  is  highest  for  food  and 
housing.  The  average  levels  of  air  pollution  in 
2021  stood  above  the  EU  average  (15.9  vs  11.4 
µg/m3 PM2.5), with 99% of the population living in 
levels  of  air 
regions  exposed 
pollution (73).  This  has  led  to  a  significant  impact 
on  health,  affecting  vulnerable  groups 
in 
particular,  and  around  10 000  premature  deaths 
annually (74). 

critical 

to 

especially 

strengthening 

Greece is progressing towards ensuring a fair 
transition to climate neutrality in the context 
of  the  Council  Recommendation  of  2022, 
with  more  targeted  actions  still  possible. 
Efforts  were  made  to  promote  jobs  in  the  green 
economy 
the 
by 
the  green 
acquisition  of  skills  relevant  for 
transition.  The  new  governance  framework  for 
active  labour  market  policies,  including  in  the 
regions most affected by the green transition, has 
yet to bring the expected results. The development 
of up-to-date labour market and skills intelligence 
and  foresight  through the  national  Labour  Market 
Needs  Diagnostics  Mechanism  will  help  identify 
and  forecast  occupation-specific  and  transversal 
skills  needs.  There  is  scope  for  providing  more 
targeted  employment  support  based  on individual 
and labour market needs in line with the transition 
plans. At the same time, tax reliefs and discounts 

(69)  EMPL-JRC AMEDI+ project. 

(70)  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. 

(71)  Affordability of private transport fuels is one key dimension 

of transport poverty. The indicator has been developed in the 
context of the EMPL-JRC GD-AMEDI/AMEDI+ projects. 
Methodology explained in Economic and distributional effects 
of higher energy prices on households in the EU. 

(72)  Developed in the context of the EMPL-JRC DISCO(H) project. 
Methodology explained in Joint Research Centre, 2024. 
Carbon and environmental footprint inequality of household 
consumption in the EU. JRC137520. The EU average refers 
to EU27 without Italy (household income data not available 
for IT in the HBS). 

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

Quality Guidelines (annual exposure of 5µg/m3). 

(74)  EEA- Air Quality Health Risk Assessment 

51 

IndicatorDescriptionEL 2015ELEUGHG per workerGreenhouse gas emissions per worker – CO2 equivalent tonnes25.118.9 (2022)14.3 (2022)Employment EIIEmployment share in energy-intensive industries, including mining and quarrying (NACE B), chemicals (C20), minerals (C23), metals (C24) and automotive (C29)1.4%1.4% (2023)3.5% (2023)Energy povertyShare of the total population living in a household unable to keep its home adequately warm29.2%18.7% (2022)9.3% (2022)Transport poverty (proxy)Estimated share of the AROP population that spends over 6% of expenditure on fuels for personal transport37.0%41.9% (2023)37.1% (2023)Carbon inequalityRatio between the consumption footprint of the top 20% vs bottom 20% of the income distribution1.81.8 (2021)2.7 (2021) 
 
 
 
  
 
in  expenses  were  introduced  in  2023  for  SMEs, 
climate  and 
which  are  helping 
environmental targets (75). 

to  meet 

Graph A8.2: Job vacancy rate in transforming 
sectors and mining and quarrying 

B - Mining and quarrying 
C - Manufacturing 
D - Electricity, gas, steam and air conditioning supply 
E - Water supply; sewerage, waste management and 
remediation activities 
F - Construction 
H - Transportation and storage 
Source: Eurostat jvs_a_rate_r2. 

(75)  Based on the monitoring review of the Council 

Recommendation on ensuring a fair transition towards 
climate neutrality, which took place in October 2023. 

52 

0.0%1.0%2.0%3.0%4.0%5.0%BCDEFHEU 2023EL 2023EL 2015 
       
 
PRODUCTIVITY 
ANNEX 9: RESOURCE PRODUCTIVITY, EFFICIENCY AND CIRCULARITY 

The green transition of industry and the built 
environment,  in  particular  decarbonisation, 
resource  efficiency  and 
is 
Greece’s 
essential 
competitiveness (76). In this regard, priorities for 
Greece  are  waste  management  and  the  use  of 
circular materials in industry and construction. 

circularity, 

boost 

to 

is 

The  pace  of  Greece’s  circular  economy 
transition 
insufficient  to  achieve  the 
Circular  Economy  Action  Plan  goals,  due  to 
structural  issues  in  waste  management.  The 
material  footprint  increased  from  12.99  to  13.05 
tonnes  per  capita  between  2018  and  2022, 
staying  below  the  EU  average.  Total  waste 
production  per  capita  was  well  below  the  EU 
average and further decreased between 2016 and 
2020, reaching 2.7 tonnes per capita. There is still 
room  to  make  better  use  of  the  potential  of  the 
circular 
the 
decarbonisation of Greece’s industry. 

to  drive 

transition 

economy 

Graph A9.1: ETS emissions by sector since 2013 

Source: European Commission 

In Greece, greenhouse gas emissions covered 
by  the  EU  emissions  trading  system  (ETS) 
have been on a strong downward trend since 
2019 (77)  and  have  reduced  by  57%  since  2013, 
mostly  thanks  to  the  power  generation  sector. 
Emissions  decreased    between  2013  and  2022;  . 
However,  in  the  industry  sectors,  greenhouse  gas 
emissions  have  only  decreased  by  14%  since 
2019,  after  having  risen  by  12%  between  2013 
and  2019.  In  2023,  Greece’s  ETS  installations 
emitted 37% less greenhouse gases than in 2019 

(76)  See also Annexes 6, 7 and 12. 

(77)  This analysis excludes air travel. For more details and the 
data sources, see Weitzel, M; van der Vorst, C. (2024), 
Uneven progress in reducing emissions in the EU ETS, JRC 
Science for policy brief, JRC138215, Joint Research Centre. 

53 

altogether. 
In  2023,  45%  of  Greece’s  ETS 
emissions  came  from  power  generation.  Of  the 
total  emissions  from  all  industry  sectors,  cement 
and lime production accounted for 36%, refineries 
for  42%,  other industries for  19%,  and  chemicals 
and the metals industry for up to 2% each. 

Although  there  are  some  positive  trends, 
there  is  still  room  for  improving  Greece’s 
industrial  efficiency.  The  secondary  material 
use  rate  has  steadily  increased  in  the  last  few 
years, with a peak in 2020, reaching 3.1% in 2022. 
However, Greece is still far from the EU average of 
11.5%.  Promisingly,  the  gap  with  EU  average 
resource  productivity  narrowed,  reaching  2.03 
purchasing power standards per kilogram in 2022 
versus  an  EU  average  of  2.45.  Furthermore, 
Greece  depended  on 
imports  for  39.2%  of 
materials  used  in  2022,  compared  with  an  EU 
average 
country 
comparatively  more  vulnerable  to  supply  chain 
disruptions.  Water  abstraction  for  manufacturing 
purposes  accounted  for  1.8%  of  total  water 
in  2018.  The  2022  EcoInnovation 
abstracted 
Scoreboard  placed  Greece 
‘average 
performers  group’,  with  a  score  of  101.6.  As  of 
September  2023,  Greece  totalled  20  awarded  EU 
Ecolabel licences  and  4 614  products  with the  EU 
Ecolabel, showing a low take-up of licences. While 
the  number  of  products  has  steadily  increased 
over  the  last  few  years,  the  number  of  licences 
has remained approximately stable, after dropping 
from 32 to 21 in 2019. 

of  22.4%,  making 

the 

the 

in 

the  progress  made 

in  waste 
Despite 
management  in  the  past  decade,  there  are 
still major structural problems to solve.  Only 
21% of municipal waste was recycled in 2019 and 
Greece  is  considered  at  risk  of  missing  the 
recycling  targets  for  2020  and  onwards.  The 
recycling rate of plastic packaging stood at 37.6% 
in 2019, below the EU average of 41.1%. Greece is 
performing  better  in  e-waste  recycling:  80.9%  of 
electrical and electronic equipment was recycled in 
2021,  almost  in  line  with  the  EU  average  of 
81.1%.  In  addition,  the  number  of  illegal  landfills 
has  been  significantly  reduced.  However,  the 
remaining landfills are still a major challenge and 
Greece  would  benefit  from  building  new  facilities. 
treatment 
Furthermore, 
technologies has been slow, which is illustrated by 
the fact that just 1 new patent on waste recycling 
was registered in 2020. 

innovation 

in  waste 

00.20.40.60.81010203040506020132014201520162017201820192020202120222023Emissions relative to 2013Mt CO2eCement & LimeChemicalsMetalsRefineriesPower generationOtherGreece (both axes) 
 
 
  
 
 
Graph A9.2: Treatment of municipal waste 

construction  and  demolition  activities  per  capita 
doubled  between  2010  and  2020,  remaining 
below  the  EU  average.  Greece  did  not  report  any 
backfilling  activities  in  2020,  while  35.9%  of 
construction  waste  was  backfilled 
in  2022. 
Greece’s  recovery  rate  reached  100%  in  2020, 
meeting  the  Waste  Framework  Directive’s  target 
for 2020, but dropped to 72,7% in 2021.  In 2021, 
95% of the Greek population was connected to at 
treatment. Large 
least  secondary  wastewater 
companies  in  the  Greek  construction  sector  are 
reporting  circular  business  models  and  adopting 
circular activities. However, large companies focus 
on 
recyclability  of  materials,  and  a 
comprehensive  assessment  of  their  impacts  is 
missing. 

the 

Source: Eurostat 

compared 

There  is  still  room  to  improve  Greece’s 
resource  efficiency  in  the  built  environment 
system.  In  2022,  Greece’s  building  permits  index 
–  based  on  useful  floor  area  –  stood  at  238.8, 
showing  a  significant  increase  in  construction 
to  2015 (78).  Greece’s 
activities 
residential  and  non-residential  floor  areas  per 
capita have increased over the last few years but 
were  still  below  the  EU  average  in  2020 (79). 
Furthermore,  in  2020,  Greece  submitted  a  long-
term strategy for energy renovation in the building 
sector.  It  aims  to  achieve  decarbonisation  of  the 
building  stock  by  2050,  specifying  that  older 
buildings  must  undergo  major  energy  upgrading. 
The  Greek  national  energy  and  climate  plan  aims 
to  achieve  energy  upgrading  of  12%-15%  of 
buildings  and/or building  units between  2021  and 
2030 through targeted policy measures. The Greek 
RRP  contains  dedicated  investments  to  improve 
the  energy  efficiency  of  residential  buildings  and 
provide 
incentives  to  economically  challenged 
households  to  improve  their  energy  performance 
(Exikonomo). 

successfully 
and 

its 
Greece  has 
construction 
waste 
management  systems,  but  waste  generation 
from 
increasing.  Waste  generated 
keeps 

demolition 

improved 

(78)  2015=100. 

(79)  34.24 m2 per capita versus the EU average of 36.46 m2 for 
residential buildings and 14.09 m2 per capita versus the EU 
average of 15.51 m2 for non-residential buildings. 

54 

5155244995090010020030040050060020182019202020212022Kg per capita Waste treatment to be determinedLandfill/disposalTotal incineration (including energy recovery)Composting and digestionMaterial recyclingEU-27 
        
 
 
 
 
 
 
 
 
 
 
Table A9.1:  Circularity indicators 

Source: Eurostat, European Environment Agency 

55 

201820192020202120222023EU-27Latest yearIndustryResource productivity (purchasing power standard (PPS) per kilogram)1.61.81.82.02.0-2.52022Circular material use rate (%)3.03.44.23.53.1-11.52022Eco-innovation index (2013=100)73.192.185.893.3101.6-121.52022Recycling of plastic packaging (%)39.837.6----40.72021Cost of air emissions from industry (EUR bn)11.09.88.08.6--352.72021Built environmentRecovery rate from construction and demolition waste (%)97.0-100.072.7--89.02020Soil sealing index (base year = 2006)102.4-----103.42018Non-residential floor area (m2 per capita)25.325.625.9---18.02020Waste backfilled (%)97.2---35.9-9.92020 
 
 
 
      
 
ANNEX 10: DIGITAL TRANSFORMATION 

infrastructure/connectivity 

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  22.1%  of  its  total  RRP 
(EUR 7.77 billion) (80).  Under 
budget 
Cohesion Policy, an additional EUR 2.7 billion (13% 
of  the  country’s  total  Cohesion  Policy  funding)  is 
allocated 
digital 
transformation (81). 

to  digital 

country’s 

and 

the 

to 

The  Digital  Decade  Policy  Programme  sets 
out  a  pathway  for  EU’s  successful  digital 
transformation  by  2030.  Greece’s  national 
roadmap outlines the actions it intends to take to 
reach the objectives and targets at national  level. 
The first Report on the State of the Digital Decade 
highlighted the need to accelerate and deepen the 
collective efforts to reach the EU-wide targets and 
objectives (82).  Among  others,  a  digitally  skilled 
population 
the  development  and 
adoption  of  digital  technologies  and  leads  to 
productivity  gains  and  new  business  models.  It 
also  leads  to  higher  inclusion  and  participation  in 
an environment increasingly shaped by the digital 
transformation (83). 
technologies, 
infrastructure  and  tools  all  play  a  role 
in 
addressing 
the  current  structural  challenges, 
including  strategic  dependencies,  cybersecurity 
and climate change. 

increases 

Digital 

(80)  The share of financial allocations that contribute to digital 
objectives has been calculated using Annex VII to the 
Recovery and Resilience Facility Regulation. 

(81)  This amount includes all investment specifically aimed at or 
substantially contributing to digital transformation in the 
2021-2027 Cohesion Policy programming period. The source 
funds are the European Regional Development Fund, the 
Cohesion Fund, the European Social Fund Plus, and the Just 
Transition Fund. 

(82)  European Commission (2023): Report on the State on the 

Digital Decade 2023, 2023 Report on the state of the Digital 
Decade | Shaping Europe’s digital future (europa.eu). 

(83)  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) and OECD (2019): Going Digital: 
Shaping Policies, Improving Lives – Summary, 
https://www.oecd.org/digital/going-digital-synthesis-
summary.pdf. 

56 

Stepping  up  work  to  develop  digital  skills 
remains a priority for Greece. Just over half of 
the  population  aged  between  16  and  74  has  at 
least  basic  digital  skills,  close  to  the  EU  average, 
but  stagnating  since  2021.  The  share  of 
individuals  employed  as  ICT  specialists  remains 
very low compared to the EU average. Greece has 
begun 
implementing  RRP  measures  that  are 
expected to help develop digital skills in the labour 
force; for example, training programmes on digital, 
green  and  financial  literacy  skills  for  at  least 
150 000 participants have been completed. 

In  digital  infrastructure/connectivity,  fixed 
very  high  capacity  network  (VHCN)  coverage 
continues  to  grow  significantly,  with  an 
average  annual  growth  of  37.9%,  well  above  the 
EU  annual  average  growth  (7.4%).  Nevertheless, 
the percentage of households covered by VHCNs in 
2023  remained  low  compared  to  the  EU  average. 
By  contrast,  overall  5G  coverage  exceeds  the  EU 
average,  showing  a  substantial  increase  since 
2022. Greece is a frontrunner in making available 
the  5G  pioneer  bands,  with  a  very  high  score 
(99%)  for  this  indicator  (EU  average  73%).  In 
2023, under the RRP, Greece launched a project to 
promote 
the  fibre  optic 
the 
infrastructure in buildings. 

installation  of 

technologies  are 

technologies,  enterprises 

Digital 
slowly  being 
integrated  into  business  activities.  43%  of 
SMEs  have  a  basic  level  of  digital  intensity. 
Although  this  score  shows  a  slight  progress  (i.e. 
5.7% average annual growth progress), it remains 
below  the  EU  average  (58%).  On  the  adoption  of 
in 
advanced  digital 
Greece  also  score  below  the  EU  average  of  55% 
for the three technologies monitored in the Digital 
Decade (i.e. cloud computing services, big data and 
artificial intelligence), with only 34% of enterprises 
using  at  least  one  of  them.  Under  the  RRP, 
implementation of the project launched in 2022 to 
contribute  to  the  digital  transition  of  SMEs  is 
progressing.  In  2022,  5.6%  of  enterprises  in 
Greece  reported 
ICT  service  outage  due  to 
cyberattacks (e.g. ransomware or denial of service 
attacks). Over the same year, 6.9% of enterprises 
developed  or  reviewed  their  ICT  security  policy 
within the previous 12 months. 

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. The 
results  are  not  yet  fully  reflected  in  the  indicator 

 
 
 
 
records,  Greece  scores  below  the  EU  average  in 
the composite indicator. 

on  digital  public  services  for  citizens  which 
remains  below  the  EU  average,  however,  the 
indicator  of 
the  digital  public  services  for 
businesses scores above the EU average. In 2023, 
the  percentage  of  e-Government  users  in  Greece 
was higher than the EU average (80% vs 75%). As 
part of its RRP measures, Greece is implementing 
a major project aimed at modernising digital public 
services,  through  the  ongoing  digitisation  of  key 
archives  and  related  services  to  reduce  the  time 
cost  of  providing  services 
to  people  and 
enterprises. In terms of access to electronic health 

Table A10.1:Key Digital Decade targets monitored by the Digital Economy and Society Index 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 evolution will also be monitored separately and taken 
into consideration when interpreting VHCN coverage data in the Digital Decade. 
(3) At least 75% of EU 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 

57 

EUDigital Decade target by 2030 2022202320242024(EU)Digital skillsAt least basic digital skills52%52%52%56%80%% individuals20212021202320232030ICT specialists (1)2.4%2.5%2.4%4.8%20 million% individuals in employment aged 15-7420212022202320232030Digital infrastructure/connectivityFixed very high capacity network (VHCN) coverage20%28%38%79%100%% households20212022202320232030Fibre to the premises (FTTP) coverage (2)20%28%38%64%-% households2021202220232023Overall 5G coverage66%86%98%89%100%% populated areas20212022202320232030Digitalisation of businessesSMEs with at least a basic level of digital intensity39%NA43%58%90%% SMEs2021202320232030Data analyticsNANA25%33%-% enterprises20232023Cloud15%15%18%39%-% enterprises2021202120232023Artificial intelligence3%3%4%8%-% enterprises2021202120232023AI or cloud or data analytics (3)NANA34%55%75%% enterprises202320232030Digitalisation of public servicesDigital public services for citizens52657679100Score (0 to 100)20212022202320232030Digital public services for businesses48748685100Score (0 to 100)20212022202320232030Access to e-health recordsNA617479100Score (0 to 100)2022202320232030Greece 
 
     
 
 
 
 
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 
transition and ensuring long-term competitiveness. 

Greece  is  a  ‘moderate  innovation  performer’ 
with  a  performance  at  79.5%  of  the  EU 
average.  According  to  the  2023  edition  of  the 
Innovation  Scoreboard (84),  Greece's 
European 
performance  is  increasing  at  a  rate  higher  than 
that  of  the  EU.  While  the  country’s  performance 
gap  to  the  EU  is  becoming  smaller,  overall  Greek 
innovation  performance  remains  below  the  EU 
average. 

Despite  significant  progress  over  the  last 
two decades, R&D intensity (85) was 1.48% in 
2022,  significantly  below  the  European 
average (2.24%) (86). In 2011, gross expenditure 
on research and development (GERD) amounted to 
0.68%  of  GDP  (EUR 1 391  million);  in  2022,  it 
reached 1.48% of GDP and had almost doubled in 
(EUR 3.085 
terms  of  absolute  expenditure 
million) (87).  While  public  expenditure  on  R&D 
surpassed  the  EU  average  in  2022  (0.75%  vs 
0.73%), business R&D expenditure on R&D as % of 
GDP  continued  to  lag  markedly  behind  (0.73%  vs 
1.48% in 2022). The Greek recovery and resilience 
plan  (RRP)  further  contributes  to  boosting  R&D 
expenditure,  for  example  through  investments  in 
research  centre 
infrastructure  and  basic  and 
applied  research  programmes.  These  investments 
are  complemented  by  the  forthcoming  national 
strategy  for  research,  technological  development 
and  innovation,  providing  strategic  priorities  for 
investments. Going forward, it will be key to place 
continuous 
the  performance 
evaluation (88)  of  research-performing  institutions 

emphasis  on 

(84)  2023 European Innovation Scoreboard (EIS), country profile: 
Greece https://ec.europa.eu/assets/rtd/eis/2023/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). 

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

percentage of GDP. 

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

(87)  https://ec.europa.eu/eurostat/databrowser/view/rd_e_gerdtot/

default/table?lang=en. 

to  further  boost  the  quality  of  research  outputs 
and 
of  R&D 
enhance 
investment (89). 

effectiveness 

the 

Graph A11.1: R&D expenditure as % of GDP 2015-
2022 

Source: Eurostat. 2023 

Moreover,  the  long-term  sustainability  of 
R&D  investments  from  the  RRP needs  to  be 
ensured  in  light  of  the  R&D  expenditure 
target  of  1.81%  outlined  in  the  national 
reform  programme  2020 (90).  This  is  important 
also  given  the  persisting  regional  inequalities  in 
research performance (91), with the region of Attica 
accounting for 59.2% of public R&D expenditure in 
Greece  (2020)  and  prevailing 
in  high-impact 
scientific publications (92). 

Science-business  links  have  improved  but 
continuous  effort  is  needed  to  transform  Greece 
into  a  knowledge-intensive  economy.  The  number 
of  public-private  scientific  co-publications  as  a 
percentage  of  total  publications  with  8.8%  was 
above the EU average of 7.6% in 2022. While still 
below the EU  average, public expenditure on R&D 
financed  by  business  enterprise  (national)  as 
percentage  of  GDP  is  on  an  increasing  trend 
(0.042  in  2020  vs  0.047  in  2021).  The  RRP 
investment  ‘research-create-innovate’  will  provide 
research. 
further 
Improvement  can  be  achieved  by  having  the 

collaborative 

support 

for 

(89)  As for instance measured in scientific publications of the 

country within the top 10% most cited scientific publications 
worldwide as % of total scientific publications of the country. 

(90)  https://commission.europa.eu/content/2020-european-

semester-national-reform-programmes-and-
stabilityconvergence-programmes_en. 

(88)  This has been described among others here: 

https://alogedu.files.wordpress.com/2020/11/pissarides-
growth_plan_2020-11-23_1021.pdf. 

(91)  For more information please see Annex 17. 

(92)  https://metrics.ekt.gr/regions. 

58 

00.20.40.60.811.21.41.620152016201720182019202020212022As % of GDPR&D IntensityPublic expenditure on R&D (Government intramural expenditure on R&D+ Higher education expenditure on R&D)Business enterprise expenditure on R&D (Business expenditure on R&D) 
 
 
     
 
 
Table A11.1:Key innovation indicators 

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

necessary  research  infrastructure  and  know-how 
to  provide  specialised  services  and  innovation 
support  to  businesses,  especially  SMEs.  In  this 
context,  Greece  received  the  support  of  the 
Horizon Europe Policy Facility (93) in two continuous 
cycles  to  support  the  revision  of  the  national 
research  infrastructure  roadmap  for  the  2021-
2027  programming  period,  ensuring  its  long-term 
sustainability  and  fostering  scientific  excellence 
and  collaborative  research,  in  line  with the  2021-
2027 smart specialisation strategy (94). 

Greece's  innovation  potential  is  still  lacking. 
Innovation  generation 
lagging  behind, 
reflected  in  terms  of  innovation  outputs,  with 
0.62%  patent  applications  per  billion  GDP 

is  still 

(93)  https://ec.europa.eu/research-and-

innovation/en/statistics/policy-support-facility/psf-
open/support-greece-implementation-psf-country-
recommendations. 

(94)  https://gsri.gov.gr/ethniki-stratigiki-exypnis-exeidikefsis-

2021-2027/. 

value 

added 

compared  to  the  EU  average  of  4.9%  (for  2020). 
in  medium-high-tech 
The 
manufacturing  in  Greece  as  percentage  of  total 
value added stands at 1.36% compared to 6.26% 
of  the  EU  average (95).  These  weaknesses  result 
from  relatively  low  R&D  expenditure  of  SMEs 
(0.26%  of  GDP  vs  an  EU  average  of  0.34%  of 
GDP), and a relatively low level of venture capital 
(0.026%  of  GDP  vs  0.085%  of  GDP  EU  average). 
Various support programmes, for instance Elevate 
Greece to promote start-ups or an RRP investment 
for SMEs holding Horizon 2020 ‘Seal of Excellence’ 
quality labels are providing support in these fields. 
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 help Greece to redress the main regional 
imbalances, prioritising investment in sectors with 
regional  competitive  advantages  identified  in  the 
process of entrepreneurial discovery (EDP) in every 
region. 

(95)  Eurostat. 

59 

EU2022average (1)R&D intensity (GERD as % of GDP)0.600. 971.511.461.482.24Public expenditure on R&D as % of GDP0.360.640.800.760.750.73Business enterprise expenditure on R&D (BERD) as % of GDP0.240.320.700.690.731.48Scientific publications of the country within the top 10% most cited publications worldwide as % of total publications of the country 8.59.18.92::9.6Patent Cooperation Treaty (PCT)  patent applications per billion GDP (in PPS)0.40.50.62::3.4Public-private scientific co-publications as % of total publications5.57.38.68.48.87.6Public expenditure on R&D financed by business enterprise (national) as % of GDP:0.0400.0420.047:0.054New graduates in science & engineering per thousand pop. aged 25-3410.913.414.217.1:16.9Total public sector support for BERD as % of GDP:0.0490.1320.156:0.204R&D tax incentives: foregone revenues as % of GDP0.0030.0050.0290.029:0.104Share of environment-related patents in total patent applications filed under PCT (%)20.311.212.9::14.7Venture capital (market statistics) as % of GDP0.0080.0100.0150.0210.0260.085Finance for innovation and economic renewalQuality of the R&I systemAcademia-business cooperationHuman capital and skills availabilityPublic support for business enterprise expenditure on R&D (BERD)Green innovation Key indicators Greece2010201520202021 
 
 
 
  
 
ANNEX 12: INDUSTRY AND SINGLE MARKET 

Productivity  growth  in  Greece  is  above  the 
EU average, but the productivity level is one 
of the lowest of the EU. Real labour productivity 
per  person  has  been  recovering  since  2020.  In 
2022, it surpassed EU productivity growth  with an 
increase  of  3%  (versus  1.4%  in  the  EU).  At  the 
same  time,  total  factor  productivity  is  recovering. 
This can be mainly attributed to the improvement 
in  labour  utilisation  via  an  increase  in  average 
hours  worked  as  people  return  to  work  after  the 
coronavirus  outbreak,  and  a 
in 
unemployment (96).  However,  capital  deepening 
(more  capital  being  invested  per  worker)  had  a 
negative contribution to productivity developments 
during the last years. More recent data shows that 
productivity  growth  was  lower  in  2023,  but  still 
positive  (1%)  compared  to  the  EU  (-0.8%) (97). 
However, 
there  remains  a  considerable  and 
persistent  gap  between  Greek  hourly  productivity 
in purchasing power standards and that of the EU, 
as  Greece’s  productivity  was  57.4%  of  the  EU 
average in 2023 (98).  

reduction 

Graph A12.1: Labour productivity hours worked, 
whole economy 

Source: Eurostat 

were  mainly 

On  sectoral  level,  the  largest  productivity 
by 
gains 
manufacturing  followed  by  service  sectors, 
except  for  tourism  activities.  The  Greek 
economy  has  experienced  significant  structural 
change,  specifically  after  the  financial  and  debt 

generated 

crisis,  favouring  aggregate  productivity  growth. 
However,  while  productivity  developments  have 
been  rather  sluggish  in  the  tourism  sector  since 
2015,  the  sector  has  expanded  in  terms  of  gross 
value  added  (GVA).  Main  productivity  advances  in 
the Greek economy were recorded in professional, 
scientific  and  technical  activities,  although  they 
only represented 5.6% of GVA in 2023.  

Graph A12.2: Labour productivity by sector 

Source: Eurostat 

Industry  (except  construction)  in  Greece  has 
a  small  share  of  GVA  with  15.9%  compared 
to  the  EU  average  of  20.6%.  Within  industry, 
the manufacturing sector only generates 10.2% of 
GVA  compared  to  16.7%  on  average  in  the  EU. 
However,  it  is  a  sector  that  has  maintained  its 
productivity  over  the  years  and  has  converged 
towards  the  EU  average 
labour  productivity 
level (99).  Knowledge-intensive  activities  and  high-
tech  make  up  14%  of  GVA  in  manufacturing, 
though  only  5%  of  final  exports  are  high-tech 
products. With this low share, Greece occupies last 
place among EU countries. On a positive note, the 
sector  attracts  increasingly  more  investment,  and 
exports have more than doubled since 2017 (100). 

The  Greek  economy  is  dominated  by  labour-
intensive  tourism  activities.  Wholesale  and 
retail  trade,  transport,  accommodation  and  food 
service  activities,  which  relate  to  tourism  and 
passenger  transport  activities,  are  the  most 
important  sectors  of  the  Greek  economy  and 
represented a share of 27.4% of GVA in 2023 (101). 
At the same time, the tourism sector is one of the 
largest employers, in contrast to its country peers 

(96)  Greek National Productivity Board (2023). Annual Report 

(99)  Eurostat. 

2023. 

(97)  European Commission Autumn Forecast. 

(100) Bank of Greece. 

(101) Among EU countries, Greece has the second highest share in 

(98)  Level_vs_growth_prodd – Ameco database. 

these activities according to Eurostat. 

60 

6070809010011012008Q409Q410Q411Q412Q413Q414Q415Q416Q417Q418Q419Q420Q421Q422Q4Index 2008=100ELITFRPTEA1960708090100110120130140201520162017201820192020202120222023Agriculture, forestry, fishingIndustry (exc. construction)ConstructionWholesale, retail trade, transport, accommodation, food service activitiesInformation and communicationFinancial and insurance activitiesProfessional, scientific and techn. activities; admin. and support service activities 
 
     
 
   
 
 
where tourism plays also an important role (Spain, 
Italy,  Portugal,  France)  but  where  share  of 
employment  is  lower (102).  Modernisation  of  the 
sector  through  investment  in  digitalisation  and 
green technologies could improve productivity.  

investment 

The  very  low  level  of  total  investment  in 
Greece  is  impeding  productivity  growth.  In 
2023 (103),  public  net 
increased 
markedly  (0.68%  of  GDP  and  55%  of  the  EU 
average),  while  private  net  investment  remains 
one  of  the  lowest  of  the  EU  (-0.14%  of  GDP  and 
3.7% of the EU average) (see Table A12.1). Public 
and  private  investment  have  been  on  a  growing 
path since 2019, but such low levels are impeding 
productivity  improvements.  Greece  ranks  among 
the last in the EU on the 5-year average in private 
investments (104).  A  noticeable  difference  can  be 
seen  due  to  the  implementation  of  the  Greek 
recovery  and  resilience  plan  (RRP),  thanks  to  the 
stimulating  effect  of  EU  funding.  Greece  has  the 
highest  RRP  as  a  share  of  GDP  (16.7%  of  2019 
GDP), and the RRP is already supporting economic 
recovery.  

to 

supply 

vulnerable 

The  Greek  economy  is  highly  dependent  on 
the import of investment goods, which makes 
business 
chain 
disruptions  and  erratic  producer  price 
developments.  Despite  a  certain  easing  of 
producer price  pressure  compared  to  2022, Greek 
business depends heavily on capital goods imports 
and  external  markets  when  investing  in  new 
capacities. According to the EIB Investment Survey, 
some  68%  of  Greek  firms  considered 
the 
disruption of logistics and transport to be the main 
obstacles to international trade (105).   

While  Greece’s  energy  mix  is  still  dependent 
on fossil fuels, its development of renewable 
energy resources is above the EU average. In 
2022,  Greece  still  depended  by  82%  on  fossil 
fuels (106).  The  renewables  production  capacity  in 
Greece  is  above  the  EU  average  (56.6%  against 
53%  in  2022).  37.5%  of  the  RRP  is  dedicated  to 
measures that support climate objectives, and the 

(102) Eurostat. 

(103) European Commission Autumn Forecast. 

(104) Eurostat sdg_08_11 

(105) EIB Investment Survey 2023 - Greece overview 

(106) Total energy supply by sources, IEA 

61 

loan  facility  was  used 
to  develop  several 
in  2023.  The  REPowerEU 
photovoltaic  parks 
chapter adopted in December 2023 contains seven 
reforms  to  support  decarbonisation,  renewable 
energy  and  renewable  gases 
(hydrogen  and 
biomethane) (see Annex 7).  

Greece  could  further  benefit  from  the 
advantages  of  the  single  market.  It  is  one  of 
the  EU  countries  that  is  the  least  integrated  into 
the single market, with the average of exports and 
imports  of  goods  and  services  representing  only 
21.9%  of  GDP  in  2022  (EU  average  46%).  The 
Single  Market  Scoreboard  indicates  scope  for 
improvement  on  implementation  of  the  Single 
Market  Law (107).  Greece  performs  very  well  when 
it  comes  to  transposing  EU  directives,  having  a 
deficit  of  only  0.3%  and  ranking  4th  out  of  27 
Member  States  (EU  average  0.7%).  It  also  ranks 
8th  in  conformity,  with  only  0.9%  of  directives 
being  wrongly  transposed  (EU  average  1.1%). 
However,  Greece  ranks  last  for  the  time  taken  to 
transpose  directives.  It  could  only  solve  59%  of 
the  SOLVIT  cases  (79)  it  handled  as  lead  centre, 
far  below  the  EU  average  of  88.3%.  Most  of  the 
unresolved cases are due to the systemic issue of 
delays  to  certify  insurance  periods  and  the  late 
payment  of  pensions.  Indicatively,  its  resolution 
rate without these cases would have been 89.3%. 

Greece  shows  a  lack  of  dynamism  in  the 
business environment. With 5.3%, Greece shows 
one  of  the  lowest  churn  rate  in  the  EU (108)  This 
lack  of  dynamism  is  partly  attributable  to  its 
economic  structure,  which  is  dominated  by  very 
small  firms  (46.6%  of  people  in  Greece  are 
employed  in  micro  businesses,  against  29.4%  in 
the EU in 2022) and which makes it more difficult 
to  adapt  to  e.g.  new  technologies  and  upskilling. 
The  public  administration  continues  to  reform, 
mainly within the RRP framework, but government 

(107) Single Market Scoreboard 2024. 

(108)  Business churn is the sum of the birth rate and death rate of 
all active firms with 10 employees or more, excluding holding 
companies. An enterprise birth occurs when an enterprise (for 
example a company) starts from scratch and begins 
operations, amounting to the creation of a combination of 
production factors with the restriction that no other 
enterprises are involved in the event. An enterprise death is 
the termination of an enterprise, amounting to the 
dissolution of a combination of production factors with this 
restriction that no other enterprises are involved in the event. 
Deaths do not include: exits from the population of active 
enterprises due to mergers, takeovers, break-ups or 
restructuring of a set of enterprises. 

 
 
 
effectiveness is still considered less efficient than 
the EU average (see annex 13) which drags on the 
business environment. 

The package of various measures introduced 
to  help  consumers  during  the  cost-of-living 
crisis could be reassessed. In 2020, in the face 
of  the  pandemic,  several  exceptional  measures 
were  taken  to  stabilise  food  prices  and  prices  of 
other products considered as basic by the Ministry 
of Investments and Development. Ever since, these 
measures have been expanded (increased number 
of  codes  of  products  concerned)  and  prolonged 
(for  6  months  each  time).  While  some  of  the 
measures seem to have helped reduce information 
asymmetry for consumers (website for comparing 
prices)  and  maintain  consumer  price  stability,  the 
impact  of  some  others  on  price,  competition  and 
the supply chain could be reassessed as they could 
lead  to  market  distortions  and  have  negative 
consequences for consumers. 

Taxation instability and business regulations 
challenge  the  smooth  functioning  of  the 
business  environment.  According  to  the  IMD 
Competitiveness  Ranking  2023 (109),  Greece  has 
improved since 2019. However, 81% of firms still 
identify business regulations as long-term barriers 
to investment, and 89% identify uncertainty about 
the  future  as  another  barrier.  A  high  educational 
level, skilled workforce, dynamism of the economy, 
cost  competitiveness  and  open  and  positive 
attitudes  are  considered  as  strengths.  However, 
Greek  companies  are  far  less  confident  than  the 
EU average that the law and courts are protective 
of their investments (28% against the EU average 
of  54%) (110).  60%  of  the  surveyed  investors  give 
Frequent  changes  in legislation  or  concerns about 
quality  of  the  law-making  process  as  their  main 
reason  for  concern  in  Greece.  The  legal  system is 
not  considered  efficient  enough  and  protective  of 
property  rights,  and  enforcement  is  weak.  While 
tax  levels  are  quite  low,  frequent  changes  and 
uncertainty  around  tax  regulation  make  the  tax 
system  an  obstacle  to  business  growth.  Key 
reforms to improve regulation, the judicial system 
and to ease doing business are included under the 
RRP, most notably reform of the Hellenic Cadastre 
(land  registry).  This  is  expected  to  provide  legal 

certainty over property rights and promote private 
investment.  

index  and  education 

The  Greek  population  is  highly  educated,  but 
Greece  scores  lowest  in  the  EU  on  the  skills 
levels  are 
match 
declining.  The  percentage  of  graduates  from 
higher  education  in  2022  was  30.5%  (slightly 
above  the  EU  average  of  30.2%),  but  its  results 
from  the  OECD's  Programme  for  International 
Student Assessment (PISA) have deteriorated since 
2012,  with  the  student  underachievement  rate  in 
basic skills one of the highest in the EU in 2022 in 
all  three  fields  tested  (see  Annex  15).  Such  a 
decline in basic skills may have consequences for 
the country’s competitiveness and social cohesion. 

Greece  is  a  moderate  innovator  in  the  2023 
Innovation  Scoreboard.  The  population  with  a 
higher  education 
the  EU  average 
is  above 
(118.5%),  but  doctorate  graduates  make  up  only 
70.3%  of 
the  EU  average.  Overall  R&D 
performance  is  increasing  at  a  rate  higher  than 
that  of  the  EU  (8.5%  points).  The  country’s 
performance  gap  to  the  EU  is  becoming  smaller. 
Firm  investment  in  R&D  has  increased  by  23.1 
points  since  2016  but  remains  at  70.5%  of  EU 
performance (111) (see Annex 11).  

significant 

shows 
on 

While 
reforms  have  been 
undertaken in  recent years,  the  Greek public 
system 
some 
procurement 
shortcomings, 
limited 
especially 
competition. The country has the second highest 
share  of  single  bid  procedures  in  the  EU  (50%  in 
2023),  and  the  trend  has  increased  compared  to 
recent  years.  In  addition,  the  contract  was  not 
awarded in 17% of public procurement procedures 
in  2023.  Another  factor  hindering  competition  is 
the low use of quality-based criteria, with 85% of 
contracts awarded based on the lowest price. Also, 
the award decision-making period, despite a slight 
decrease  in  2023  compared  to  the  previous  year, 
does not show much improvement and is still the 
relevant  RRP 
highest 
in 
investments 
including 
professionalisation  of  the  public  procurement 
workforce, 
public 
procurement  and  implementation  of  the  national 

the  EU (112).  The 

digitalisation 

reforms, 

further 

and 

of 

(109) World Competitiveness Ranking 2023 – IMD business school 

(111) European Innovation Scoreboard. 

for management and leadership courses 

(112) Access to public procurement | Single Market Scoreboard 

(110) 2024 EU Justice Scoreboard 

(europa.eu) 

62 

 
 
 
 
slightly since 2019 according to Greek authorities, 
and the training programme for tourist guides has 
been  accelerated  (2  months).  As  regards  civil 
engineers,  different  categories  of  activity  exist, 
and  additional  authorisation 
to 
undertake public works or studies. Such restrictions 
impact  the  efficiency  of  service  provision.  Also 
notaries  are  more  strictly regulated than  in  many 
other  OECD  countries  as 
the  OECD  PMR 
shows (116).  A  more  proportional  approach  to 
regulation  for  such  professions  would  make  the 
respective sectors more competitive. 

required 

is 

system 

exchange, 

the 
(OOTS) (117), 

Greece  has  reached  the  stage  of  technical 
readiness for the single market/cross-border 
‘once-only’ 
information 
before 
technical 
initiating  its  first  OOTS  transactions.  As  part 
of  the  Single  Digital  Gateway  Regulation (118),  the 
system  will  enable  the  automated  cross-border 
competent 
exchange  of  evidence  between 
authorities improving online access to information, 
administrative  procedures  and  assistance  within 
the  EU.  The  onboarding  of  Greek  competent 
authorities  is  crucial  for  the  system  to  function 
smoothly and to reduce administrative burden.   

public  procurement  strategy,  are  expected  to 
address such shortcomings. 

Access  to  finance  remains  difficult  for 
businesses,  especially  small  and  medium-
(SMEs),  but  Greece’s 
sized  enterprises 
improvement  to  ‘investment  grade’  opens 
new  perspectives.  According  to  the  Survey  on 
access  to  finance  of  enterprises  (SAFE)  2023, 
76.8%  of  SMEs  received  everything  or  most  of 
what  they  requested  as  bank 
loans,  which 
represents a significant increase over the last few 
years (113). For 9.9% of firms the loan was refused 
or  rejected,  which  is  still  above  the  EU  average 
(8.7%). Around 20% of Greek firms rely on grants 
for 
is  above  EU  average 
(16%) (114).  The  improvement  in  its  return-on-
investment  rating  in  2023,  confirmed  by  four 
rating  agencies,  may  attract  more  capital  and 
funding  and  make  lending  easier.  This  upgrading 
has  made  the  cost  of  borrowing  more  on  a  par 
with  that  in  other  EU  Member  States  for  non-
financial  corporations.  Some  reforms  under  the 
RRP  aim  to  make  it  easier  to  access  finance,  but 
measurements  of  their  impact  are  still  to  come 
(see also Annex 18). 

financing which 

The  persistence  of  late  payments  weighs  on 
business  liquidity.  In  2023,  57%  of  Greek 
companies  declared 
they  experienced 
problems  due  to  late  payments  from  private  or 
public bodies in the past 6 months, versus the EU 
average  of  48.7% (see  Table  A12.1).  This  is 
particularly an issue in the health sector. 

that 

Access  to  and  the  exercise  of  certain 
regulated  professions 
is  still  restricted, 
which  may  be  detrimental  to  a  dynamic 
business environment. Especially architects, civil 
engineers,  patent  agents,  tourist  guides,  lawyers 
and  accountants  are  more  regulated  than  the  EU 
average (115).  Lawyers  in  Greece  are  subject  to 
restrictions  on  the  legal  form  of  their  business, 
while  it  is  considered  incompatible  for  lawyers  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.  The 
profession  of  patent  agent  has  been  opened 

(113) SAFE survey. 

(116) 2018 Product Market Regulation Country Note : Greece by 

(114) EIB Investment Survey – European Union Overview 

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

OECD - Issuu 

(117) Regulation (EU)2018/1724 

(118) Implementing Regulation (EU) 2022/1463. 

63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table A12.1:Industry and the Single Market 

Source: (1) AMECO, (2) Eurostat, (3) Single Market Scoreboard, (4) OECD, (5) ECFIN BCS, (6) COMEXT and Commission 
calculations, (7) EIB Investment Survey, (8) Intrum Payment Report, (9) SAFE survey, (10) EIF SME Access to Finance Index.  
* Own Commission calculations for the EU27 average 

64 

POLICY AREAINDICATOR NAME20192020202120222023EU27 average*Net Private investment, level of private capital stock, net of depreciation, % GDP1-2,9-3,1-1,4-0,2-0,13,8Net Public investment, level of public capital stock, net of depreciation, % GDP1-1,1-0,8-0,10,30,71,2Real labour productivity per person in industry (% yoy)2-0,41,39,9-7,8-2-1,24Cost competitivenessNominal unit labour cost in industry (% yoy)22,6-3,4-6,112,57,19,83Single Market integrationEU Trade integration, % (Average intra-EU imports + average intra EU exports)/GDP217,816,420,223,121,942,9Transposition deficit, % of all directives not transposed30,811,80,40,30,7Conformity deficit, % of all directives transposed incorrectly311,11,51,30,91,1SOLVIT, % resolution rate per country387,590,415,444,159,088,3Number of pending infringement proceedings3334449464425,9RestrictionsEEA Services Trade Restrictiveness Index40,050,050,050,050,050,05Single bids, % of total contractors3404240485028,6Direct Awards, %3011118,1Material Shortage (industry), firms facing constraints, %55,94,89,312,37,317,2Labour Shortage using survey data (industry), firms facing constraints, %54,34,36,28,814,823,3Vacancy rate (business economy), % of vacant posts to all available ones (vacant + occupied)20,7250,50,71,32,02,5Concentration in selected raw materials, Import concentration index based on a basket of critical raw materials60,130,130,130,120,220,22Installed renewables electricity capacity, % of total electricity produced248,052,156,356,6-53Investment obstaclesImpact of regulation on long-term investment, % of firms reporting business regulation as major obstacle786,359,358,451,052,022,2Bankruptcies, Index (2015=100)2-----105,6Business registrations, Index (2015=100)2-----120,2Payment gap - corporates B2B, difference in days between offered and actual payment8-1613131515Payment gap - public sector, difference in days between offered and actual payment8-1512131316Share of SMEs experiencing late payments in past 6 months, %962,063,654,952,357,048,7EIF Access to finance index - Loan, Composite: SME external financing over last 6 months, index values between 0 and 1100,210,200,130,22-0,49EIF Access to finance index - Equity, Composite: VC/GDP, IPO/GDP, SMEs using equity, index values between 0 and 110 0,080,090,120,11-0,17Access to financeECONOMIC STRUCTUREShortagesStrategic dependenciesBUSINESS ENVIRONMENT - SMEsBusiness demographyLate paymentsPublic procurement GreeceHEADLINE INDICATORSEconomic StructureSINGLE MARKETCompliance 
 
 
 
 
 
 
      
 
ANNEX 13: PUBLIC ADMINISTRATION 

Greece’s  public  administration  is  essential 
for  the  economy’s  competitiveness  by,  in 
particular,  shaping  the  conditions  for  the 
twin  transitions  and  creating  a  favourable 
business  environment.  The  perception  of 
government  effectiveness  has  continued 
to 
improve  but  is  still  below  the  EU  average.  The 
recovery  and  resilience  plan  (RRP)  was  recently 
in  multi-level 
updated 
governance,  digitalisation  and  anti-corruption, 
public  employees’  skills  and  public  transport 
procurement  (see  annex  12).  Greece  has  put 
the  energy 
to 
measures 
consumption of its public administration (119). 

in  place 

reforms 

include 

reduce 

to 

Graph A13.1: Government effectiveness 

Average value over 2018-2022 and change over 2018-2022. 
The GDP per head bar shows the mean value of the 
government effectiveness indicator for the group of EU 
countries belonging to the same GDP per head cluster as 
Greece (EU countries are ranked in terms of their GDP per 
head and grouped into three equally sized clusters). 
Source: Worldwide Governance Indicators. 

continue, 

Greece  has  strengthened  the  coordination 
and  monitoring  of  policy  initiatives,  while 
challenges  regarding  the  quality  of  the  law-
making  process 
in 
consultation  of  stakeholders.  The  use  of 
emergency  procedures  in  the  legislative  process 
has  been  significantly  reduced.  Complete  draft 
laws,  however,  are  still  not  published  for  public 
consultation. As part of the RRP, Greece is working 
to  improve  the  use  of  evidence  in  policymaking 

including 

(119) Ministry of Energy, Ministerial Ordinance 
ΥΠΕΝ/ΔΕΠΕΑ/68315/502, 02/07/2022. 

65 

and  increase  the  capacity  for  policy  analysis  and 
legal  drafting.  A  new  secretariat  for  strategic 
foresight in the Presidency of the Government will 
support long-term planning. The role and capacity 
of  Greece’s 
including 
market regulators, is currently being reviewed. 

independent  authorities, 

in 

the 

and 

skilled 

Greece continues to invest in the skills of its 
is 
public  administration  employees.  This 
particularly  important  given  the  low  participation 
in  adult  learning  and  the  relatively  low  share  of 
highly 
public 
occupations 
administration (Graph A13.2). The National Centre 
for 
Local 
Administration 
Public 
Government launched 
reskilling  and  upskilling 
programmes.  Human  resource  management  will 
be  strengthened  by  a  new  IT  system.  In  addition, 
an  integrated  skills  and  incentives  system  is 
expected  to  help  make  public  services  more 
productive  and  develop  goal  setting  for  civil 
servants (Law 4940/2022). Following a successful 
pilot,  a  permanent bonus system is  under  way  as 
part  of  the  RRP.  Law  5062/2023  sets  out 
procedures  and  criteria  to  select  and  appoint 
public  agency  managers.  A  nationwide  written 
competition to recruit new public sector employees 
attracted more than 100 000 candidates. 

Greece  is  progressing  in  implementing  its 
strategy  to  digitalise  public  services.  While 
still  performing  below  the  EU  average,  in  2023, 
the e-government benchmark overall score rose to 
68.1, up from 60.3 in 2022 (Table A13.1).  

In  2023  a  new  system  of  multi-level 
governance  was  adopted (Law  5013/2023), 
which is yet to be operationalised. It is part of 
a  RRP  reform  to 
improve  the  allocation  of 
responsibilities and coordination among the public 
administration’s  different  levels.  An  information 
system,  managed  by  the  Ministry  of  Interior,  will 
help monitor the roles of public sector bodies. 

solely 

from  national 

Efforts  have  been  made  to  strengthen  the 
planning  of  public  investments  under  the 
RRP.  The  national  development  plan,  launched  in 
2021,  sets  out  the  rules  for  developing  projects 
funds  and 
financed 
complements  the  planning  for  EU  co-financed 
investments.  The  plan  helps  integrate  objectives 
across  all  levels  of  government  and  financing 
sources,  provide  more  consistency,  avoid  overlap 
and facilitate strategic alignment. A single monitor 
and  control  system  for  all  programmes  and 
projects will support the plan’s implementation.  

-0.20.00.20.40.60.81.01.2ELEU-27GDP perhead clusterChange 2018-2022Average 2018-2022 
 
   
 
 
Table A13.1:Public administration indicators 

(1) High values indicate a good performance, except for indicator # 6. (2) 2023 value. If unavailable, the latest value available 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: E-government activities of individuals via websites, 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). 

The  efficiency  and  quality  of  the  justice 
system continues to face serious challenges. 
The main challenge is the length of proceedings, in 
particular litigious civil disputes, which has further 
deteriorated.  Tackling  the  quality  of  the  justice 
system  requires  improving  e-justice  despite  some 
Graph A13.2: Adult education. a) Participation rate in job-related employer-sponsored education and 
training (left side); b) average instruction hours spent by participants in education and training by 
sector (centre); c) share of employed people by occupation and by sector (right side) 

use of digital tools in courts. Ongoing reforms aim 
to  improve  the  quality  of  the  justice  system, 
including revising the judicial map and introducing 
remote  hearings.  On  judicial  independence,  no 
systemic deficiencies have been reported. 

(1) 2022 data.  Chart c: high: International Classification of Occupations (ISCO) categories 1-3; medium: ISCO4-8; low: ISCO 9 
Source: Eurostat, 2022 Adult Education Survey (charts a and b) and Labour Force Survey, 2023 data (chart c). 

66 

0%10%20%30%40%50%60%70%PublicadministrationEducationHealth andsocial workTotaleconomya) Adult learningELEU-27050100150200250PublicadministrationEducationHealth andsocial workTotaleconomyb) Average instruction hoursELEU-270%10%20%30%40%50%60%70%80%90%100%EEEU27EEEU27EEEU27Publicadministration (O)Publicadministration,education andhealthcare O-QTotal economyc) Share of employed by occupations and sector High skilled occupationsMedium skilled occupationsLow skilled occupationsArmed forcesEL20192020202120222023EU-27(2)1n/an/an/a80.579.775.02n/a52.252.360.468.175.830.70.90.80.60.60.8453.053.152.5 (b)53.756.452.954.34.43.2 (b)2.52.917.964.87.612.815.817.89.272.01.91.8 (b)1.71.51.580.90.90.90.9n/a0.790.90.90.90.9n/a1.410n/an/a1.25n/an/a1.7Medium-term budgetary framework indexIndicator (1)E-government and open government dataShare of internet users within the last year that used a public authority website or appE-government benchmark overall score (3) Open data and portal maturity indexEducational attainment level, adult learning, gender parity and ageingShare of public administration employees with higher 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 the EU headline and national targets for 2030 
on employment, skills and poverty reduction. 

Table A14.1:Social Scoreboard for Greece 

Update of 25 April 2024. Members States are categorised 
based on the Social Scoreboard according to a methodology 
agreed with the EMCO and SPC Committees. Please consult 
the Annex of the Joint Employment Report 2024 for details on 
the methodology. 
Source: Eurostat 

in  the 
There  are  positive  developments 
labour  market,  although  some  challenges 
remain  for  specific  groups.  The  employment 
rate  continued  its  upward  trend  (67.4%  in  2023), 
but it is still one of the lowest in the EU. While the 
unemployment  rate  fell  to  10.2%  in  March  2024 
(a  record  low  since  2009),  it  remains  the  second 
highest  in  the  EU  following  Spain.  Although  the 
long-term  unemployment  component 
is  also 
decreasing, it is among the highest in the EU (6.2% 
in  2023  vs  2.1%  in  the  EU).  This  particularly 
affects  women  and  persons  with  disabilities 
(respectively  63.3%  and  64.6%  of  the  long-term 
unemployed 
labour  market 
outcomes of women could be improved, with 8.7% 
long-term 
of  women 

in  2022).  The 

15-74 

aged 

in 

very 

than 

there 

unemployment  and  a 
large  gender 
employment  gap  at  19.8   percentage  points  in 
2023.  Meanwhile,  in  Q4-2023,  the  situation  for 
young  people  (15-29)  was  still  challenging,  with 
the shares of those in unemployment (21.1%) and 
of those not in employment, education or training 
(16.3%)  still  significantly  higher 
the 
respective  EU  averages 
(11.4%  and  11.2%). 
Persons  with  disabilities  also  continue  to  face 
obstacles  in  integrating  in  the  labour  market  and 
challenges  in  getting  access  to  training.  More 
generally, 
the 
is  scope 
effectiveness  of  outreach  activities  and  targeted 
individualised  activation  and  training  services, 
especially  for  vulnerable  groups,  including  by 
involving  the  social  partners  and  by  continuously 
improving  public  employment  services  and  their 
coordination  with  social  services.  The  potential  of 
the social economy to support the employment of 
people  from  vulnerable  groups  could  be  further 
exploited.  The  Recovery  and  Resilience  Facility 
(RRF)  and  the  European  Social  Fund  Plus  (ESF+) 
make a significant contribution to boosting efforts 
in these areas and to making progress towards the 
national  employment  rate  target  of  71.1%  by 
2030. 

improve 

to 

introduction  of  an 

The 
in-work  benefit 
scheme  in  Greece  has  the  potential  to 
improve  long-term  unemployment  and  at-
risk-of  poverty  rates  and 
increase  the 
employment rates for women and vulnerable 
groups. The Greek employment rate for women is 
more than 15 percentage points lower than the EU 
average,  whilst  more  than  a  million  women  are 
currently  either  long-term  unemployed  or  unable 
to  be  active  in  the  labour  market.  A  recent 
Commission  staff  analysis  shows 
the 
introduction of an in-work benefit scheme targeted 
at 
to 
significantly  increase  the  labour  participation  rate 
in  Greece  by  approximately  60,000  allowing  an 
increase  in  employment  by  more  than  1%  and 
reducing the  at-risk-of-poverty  rate  for  the  active 
population  by  0.6  percentage  points.  Combined 
with  other  efforts  to  encourage  part-time  work 
and  more  flexible  employment,  such  a  scheme 
labour  shortages, 
could  substantially  address 
improve  inclusion  and  reduce  poverty  through 
bringing  more  young  people  and  women  into  the 
labour market. 

the  potential 

low-income 

jobs  has 

that 

67 

15.13.752.415.919.85.267.411.16.279.926.328.120.3425.926.729.19Critical situationTo watchWeak but improvingGood but to monitorOn averageDynamic labour markets and fair working conditionsEmployment rate(% of the population aged 20-64, 2023)Unemployment rate(% of the active population aged 15-74, 2023)Long term unemployment(% of the active population aged 15-74, 2023)Gross disposable household income (GDHI) per capita growth(index, 2008=100, 2022)Social protection and inclusionAt risk of poverty or social exclusion (AROPE) rate (% of the total population, 2022)At risk of poverty or social exclusion (AROPE) rate for children(% of the population aged 0-17, 2022)Impact of social transfers (other than pensions) on poverty reduction(% reduction of AROP, 2022)Disability employment gap (percentage points, population aged 20-64, 2022)Housing cost overburden (% of the total population, 2022)Children aged less than 3 years in formal childcare (% of the under 3-years-old population, 2022)Self-reported unmet need for medical care (% of the population aged 16+, 2022)Better than averageBest performersPolicy areaHeadline indicatorEqual opportunities and access to the labour marketAdult participation in learning (during the last 12 months, excl. guided on the job training, % of the population aged 25-64, 2022)Early leavers from education and training(% of  the population aged 18-24, 2023)Share of individuals who have basic or above basic overall digital skills(% of the population aged 16-74, 2023)Young people not in employment, education or training(% of the population aged 15-29, 2023)Gender employment gap(percentage points, population aged 20-64, 2023)Income quintile ratio (S80/S20, 2022) 
 
 
 
   
 
 
construction  and 

Labour  shortages  are  rising  in  some  sectors 
and  skills  mismatches  continue  to  be  a 
challenge,  while  skills  development  is  a 
priority  area.  While  keeping  below  the  EU 
average  (1.6%  vs  2.6%  in  Q3-2023),  the  job 
vacancy rate increased in Greece. Sectors such as 
agriculture, 
tourism  have 
difficulties in filling vacancies for multiple reasons, 
including  working  conditions  and  demographic 
change.  Together  with  wider  demographic 
challenges,  the  limited  labour  market  integration 
of  various  groups  and  other  issues,  this  also 
undermines  Greece’s  potential  to  increase  its 
economic  competitiveness.  Only  15.1%  of  all 
Greek adults took part in training activities in 2022 
(vs 39.5% in the EU) (120). The rate of early leavers 
from  education  and  training  is  significantly  below 
the EU average (3.7% vs 9.5% in the EU in 2023), 
however the performance of 15-year-olds in basic 
skills  declined  sharply,  as  indicated  by  the  2022 
PISA data (see Annex 15). The set-up of individual 
learning 
effective 
implementation  of  a  skills  forecasting  system 
(using the labour market diagnostic mechanisms in 
place) can improve people’s employability. Several 
vocational education and training, lifelong learning, 
upskilling  and  reskilling  actions  are  planned,  with 
the  support  of  the  ESF+  and  the  RRF.  These  will 
help  Greece  to  make  progress  towards  the 
national target of 40% of all adults participating in 
training every year by 2030.  

accounts 

and 

the 

Although  decreasing,  levels  of  poverty  and 
social  exclusion  in  Greece  remain  high.  The 
share  of  people  at  risk  of  poverty  or  social 
exclusion  fell  to  26.1%  in  2023  from  26.3%  in 
2022 (against a 2022 EU average of 21.6%). The 
rate is significantly higher for people born outside 
the EU, at 52.2% in 2022 (vs 40% in the EU). The 
proportion  of  children  at  risk  of  poverty  fell  to 
21.8%  in  2023  from  22.4%  in  2022  (against  a 
2022  EU  average  of  19.3%),  while  the  share  of 
those  experiencing  severe  material  and  social 
deprivation  increased  to  15.6%  in  2023  from 
15.5%  in  2022  (against  a  2022  EU  average  of 
8.4%). There was a high level of energy poverty in 
2022, particularly for households at risk of poverty 
(see  Annex  8).  The  share  of  households 
overburdened by housing costs increased to 28.5% 
in  2023  from  26.7%  in  2022(almost  three  times 
higher than the 2022 EU average of8.7%). There is 

(120) Adult Education Survey 2022, special extraction excluding 

guided training on-the-job training. 

a  need  for  a  comprehensive  housing  strategy, 
social  housing  and  housing 
focusing  on 
affordability.  The  ESF+  provides  substantial 
funding  (more  than  EUR  1.5  billion)  for  actions 
promoting  social  inclusion  and  tackling  poverty. 
Further efforts to strengthen social policy are key 
to achieving the national target of lifting 860 000 
people out of poverty or social exclusion by 2030. 

is 

room 

strengthen 

social 
to 
There 
protection.  The  adequacy  of  the  minimum 
income scheme is below the EU average, reaching 
around  59.9%  of  the  poverty  threshold  and  only 
27.8%  of  the  income  of  low-wage  earners  (vs 
46.8% in the EU, income year 2021)]. In 2022, the 
proportion  of  people  living  in  very  low  work-
intensity  households,  and  who  are  below  the 
poverty threshold, that received social benefits fell 
to 58.4%, compared to 81.1% in the EU. Greece’s 
tax  and  benefit  system  has  one  of  the  lowest 
inequality reducing effects in the EU (23%, vs 51% 
in  the  EU)  and  the  impact  of  social  transfers 
(excluding  pensions)  on  reducing  poverty  fell  to 
18.2%  in  2023  from  20.3%  in  2022  (against  a 
2022 EU average of 35.3%). There are still gaps in 
access  to  social  protection  for  people  in  non-
standard  forms  of  employment  and  for  the  self-
employed. This is an important issue because solo 
self-employment  makes  up  to  19.6%  of  the 
population  in  employment.  Many  self-employed 
people  are  not  covered  by  unemployment  or 
sickness benefits and some categories of the self-
employed need to opt in to access pensions. There 
are  relatively  high  levels  of  material  and  social 
deprivation rates among the self-employed, people 
on temporary contracts and the unemployed. 

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

(1) Adult Education Survey, special extraction: adults in 
learning in the past 12 months, special extraction excl. guided 
on-the-job training.  
(2) Change in the number of persons at risk of poverty or 
social exclusion (AROPE), reference year 2019. 
Source: Eurostat, DG EMPL. 

The  ageing  population  is  leading  to  an 
increase  in  the  number  of  people  who  need 
long-term  care.  The  share  of  the  population 
aged  65  and  over  is  expected  to  increase  from 

68 

IndicatorsLatest dataTrend            (2016-2023)2030 targetEU target 67.4(2023)15.1(2022)-401(2023)Poverty reduction2 (thousands)-860-15 000Employment (%)71.178Adult learning1 (%)4060 
 
 
  
 
22.7%  in  2022  to  25.8%  in  2030  and  35.5%  in 
2050,  highlighting  the  need  for  affordable  long-
term care (LTC) services. Public expenditure on LTC 
in  Greece  is  considerably  below  the  EU  average 
(0.15% vs 1.74% of GDP in 2021). The governance 
system  for  LTC  is  fragmented,  and  there  are  no 
comprehensive formal LTC services that guarantee 
universal  coverage.  The  number  of  formal  LTC 
workers is among the lowest in the EU, at 0.3 per 
100  people  aged  65  and  over.  The  system  relies 
primarily  on  informal  family  carers,  with  nearly 
three  out  of  ten  adults  in  Greece  providing 
informal  care  or  assistance  at  least  once  a 
week (121).  On  top  of  that,  self-reported  unmet 
needs for medical care, already much higher than 
the  EU  average,  increased  significantly  in  2023. 
The  affordability  of  healthcare  is  also  an  issue, 
with  out-of-pocket  payments  accounting  for 
33.3%  of  total  healthcare  expenditure  in  2021 
(see Annex 16).  

(121) Source: Survey of Gender Gaps in Unpaid Care, Individual and 

Social Activities, EIGE, 2022. 

69 

 
 
ANNEX 15: EDUCATION AND TRAINING 

This  Annex  outlines  the  main  challenges  of 
Greece’s education and training system based 
on  the  2023  Education  and  Training  Monitor  and 
the  2022  OECD  Programme  for  International 
Student Assessment (PISA) results. 

for 

Greek  students’  underachievement  rate  is 
one of the highest in the EU in all three PISA 
fields  tested,  and  it  has  increased.  The  2022 
OECD  Programme 
International  Student 
Assessment  (PISA) (122)  showed  that  47.2%  of 
Greek  15-year-olds  had  difficulties  in  interpreting 
and  recognising  how  a  simple  situation  can  be 
represented mathematically (vs EU 29.5%). 37.6% 
could  not  identify  the  main  idea  in  a  text  of 
moderate length and reflect on its purpose (vs EU 
26.2%).  37.3%  could  not  recognise  the  correct 
explanation  for  familiar  scientific  phenomena  and 
draw  evidence-based  conclusions  (vs  EU  24.2%). 
Greece’s increase in underperformance since 2012 
is  also  among  the  highest  in  the  EU,  while  the 
share of top-performing students is well below the 
EU  average  in  all  three  fields.  Only  2%  of  young 
Greeks 
in 
mathematics (EU  7.9%),  2%  in  reading  (EU  6.5%) 
and 1.5% in science (EU 6.9%). Those results may 
reflect, for example, the underfunding of education 
policies,  the  impact  of  socio-economic  factors  on 
performance, 
lack  of  school  autonomy, 
challenges  in  the  implementation  of  competence-
based  teaching  methods,  and  an  evaluation 
culture. 

demonstrated 

advanced 

skills 

the 

and 

social 

The decline in students’ performance in basic 
skills  has  consequences  for  the  country’s 
cohesion. 
competitiveness 
Underachievement  is  frequent  across  the  entire 
socio-economic  distribution.  The  rate  for  the  top 
quartile of the socio-economic distribution is three 
times  higher  than  the  average  rate  in  other  EU 
countries  (26.7%  vs  10.9%)  and  has  significantly 
increased  (8.2 pps  vs  EU  2.2 pps).  At  the  same 
time,  the  socio-economic  gap  has  widened,  as  6 
from  disadvantaged 
out  of  10 
backgrounds  (64%)  did  not  reach  a  minimum 
proficiency  level  in  mathematics  (vs  52.8%  in 
2018). In addition, Greece has the highest share of 
migrant 
students 
underachieving 
background (123) 
their 

the  EU,  although 

students 

with 

in 

(122) OECD (2023), PISA 2022 Results (Volume I): The State of 

Learning and Equity in Education. 

(123) Students with a migrant background include both foreign-
born students and native-born with parents born abroad. 

70 

longstanding  challenges  of 

performance  gap  disappears  when  accounting  for 
socio-economic  background  and  language  spoken 
at  home.  These  overall  negative  trends  underline 
the 
the  Greek 
education system and the need to improve quality 
of  education  and  to  address  socio-economic 
disparities  to  equip  young  people  with  the  basic 
skills  needed  for  employability  and  life.  This  is 
even  more  important  in  the  light  of  substantial 
skills  mismatches  and  the  low  participation  in 
adult  learning  (5.1%  in  2022  vs  EU  39.5%)  (see 
Annex 14). 

Graph A15.1: Underachievement rates in 
mathematics by socio-economic background, PISA 
2022 

Source: OECD (2023). 

Greece  expects  to  have  enough  teachers  in 
future  while  there  are  efforts  underway  to 
empower  them.  This  can  be  partly  explained  by 
the large pool of potential teacher candidates and 
demographic trends. Notably, while a high number 
of  teachers  are  approaching  retirement  age,  a 
major reduction in the school student population is 
projected  for  the  coming  years.  Greece  has  been 
proceeding  with  28 500  permanent  appointments 
of teachers for all levels of compulsory education, 
including  for  special  needs  education,  after  a 
decade  of  no  hirings  in  education.  However, 
existing  public  data  does  not  allow  us  to  assess 
whether  all  needs  are  covered  or  if  there  are 
specific  subjects  that  might  suffer  shortages. 
While teachers benefit from high job security, their 
career prospects remain limited. Opportunities and 
to 
incentives  are  being  gradually  provided 
teachers,  based  on  law  4823/2021  on  ‘Schools’ 
upgrade  and  teachers’  empowerment’,  but  a 
national  career  framework  for  teachers  was  only 

010203040506070ELEUELEUELEUTotalAdvantaged studentsDisadvantagedstudents%2030 EU target 
 
 
  
 
 
Table A15.1:EU-level targets and other contextual indicators under the European Education Area 
strategic framework 

Notes: b = break in time series; d = definition differs; e = estimated; p = provisional; u = low reliability; : = data not available. 
Source: 1,3,4,5,7,8,9,10,12=Eurostat; 11= Eurostat, Adult Education Survey; 2,6=OECD, PISA. 

recently developed and teacher evaluation started 
in school year 2022/2023 (124). 

Early childhood education and care has been 
reformed  in  recent  years.  Greece  ranks  last  in 
the  EU  regarding  participation  in  early  childhood 
education and care (age 3+). In 2019 (125), the rate 
stood  at  68.8%  vs  EU:  92.9%  and  the  EU-level 
target  for  2030  of  96%.  To  respond  to  the  low 
overall  participation  rate  from  age  3  to  the 
starting  age  for  compulsory  primary  education,  a 
series  of  measures  have  been  taken,  such  as  the 
introduction of mandatory pre-schooling from age 
4  which  has  been  fully  implemented  since  the 
school year 2021/2022 (126). 

Tertiary educational attainment has reached 
the  EU-level  target  set  for  2030.  In  2023, 
44.5%  of  Greeks  aged  25-34  held  a  tertiary 
education  degree,  compared  with  the  EU  average 

(124) Education and Training Monitor 2023, Volume II. 

(125) More recent data are not available for Greece. 

(126) Education and Training Monitor 2022, Volume II. 

71 

of 43.1%. This constitutes a significant increase of 
7.3 pps during the  last  decade  (vs  an  average  EU 
increase  of  8 pps)  and  underlines  the  fact  that 
Greek  society  places  a  high  value  on  higher 
education.  To  achieve  a  better  gender  balance, 
Greece  took  a  major  policy  initiative  related  to 
gender  equity  in  higher  education.  In  addition,  a 
new  governance  model  is  being  introduced  in 
higher education. 

sustainable 

development 

Education for environmental sustainability is 
addressed 
in  Greek  legislation  and  new 
school  curricula.  During  consecutive  reforms, 
soft  skills  and  life-science  competencies  in  areas 
such as climate change, environmental awareness 
and 
been 
incorporated into the new curricula. Those notions 
constitute an integral part of the innovative action 
in  schools, 
‘Skills  Labs’.  Shifting  from 
knowledge-based  to  competence-based  education 
and  integrating  into  them  entrepreneurial,  green, 
soft,  and  transversal  skills,  will  be  crucial  to 
improve  competitiveness  and  stimulate  economic 
growth for a robust post-crisis recovery. 

have 

the 

96%85.3%2013,d91.8%201350.8%d92.2%:92.5%2021,dReading< 15%22.6% 18.0%30.5% 22.5%37.6%202226.2%2022Mathematics< 15%35.7% 22.1%35.8%22.9%47.2%202229.5%2022Science< 15%25.5% 16.8%31.7%22.3%37.3%202224.2%2022< 9 %11.3%12.6%4.7%10.5%3.7%9.5%Men13.7%14.5%5.7%12.1%3.8%11.3%Women8.9%10.6%3.6%8.7%3.6%7.7%Cities7.8%b11.2%3.0%9.4%2.5%8.6%Rural areas18.0%b14.0%8.0%11.0%6.0%9.9%5By country of birthNative8.2%11.3%3.9%9.2%3.3%8.2%EU-born23.6%u26.2%22.5%u22.4%:u21.0%Non EU-born45.4%30.1%16.7%23.0%24.5%u21.6%6Socio-economic gap (percentage points)38.1:34.429.537.3202237.220227Exposure of VET graduates to work-based learning≥ 60% (2025) ::: :35.4% 64.5%45%34.5%34.1%42.8%38.7%44.5%43.1%Men29.4%29.1%35.0%33.3%36.3%37.6%Women39.7%39.2%51.0%44.2%53.3%48.8%Cities43.0%b43.5%49.4%49.0%53.1%53.3%Rural areas23.4%b24.8%27.7%27.7%29.5%31.7%Native38.1%35.4%46.0%39.7%46.2%44.2%EU-born17.7%29.3%21.6%u36.7%39.9%40.2%Non EU-born8.1%24.2%12.9%31.0%15.8%37.1%11Participation in adult learning (age 25-64)≥ 47% (2025) ::16.0%201637.4%201615.1%202239.5%202217.3%201322.7%201321.3%23.8%29.8%202124.5%2021Tertiary educational attainment (age 25-34)8Total8By gender9By degree of urbanisation10By country of birth12Share of school teachers (ISCED 1-3) who are 55 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 urbanisation201220182023IndicatorTargetGreeceEU-27GreeceEU-27GreeceEU-27 
 
 
  
 
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. 

Life  expectancy  in  Greece  used  to  be  above 
it  has  dropped 
the  EU  average,  but 
is  now 
significantly  since  2019  and 
marginally above the EU average. This reflects 
the  effect  of  COVID-19  in  Greece,  which  caused  
three  times  more  deaths 
in 
2020 (127).  Greece’s  mortality  rate  from  treatable 
causes was just above the EU average in 2021. In 
the  same  year,  the  leading  causes  of  mortality 
were  diseases  of 
system 
the 
(‘cardiovascular diseases’) and cancer, followed by 
COVID-19.  Lung  cancer  and 
ischaemic  heart 
disease  continue  to  be  the  leading  causes  of 
preventable deaths. 

in  2021  than 

circulatory 

Graph A16.1: Life expectancy at birth, years 

Source: Eurostat 

Total  health  spending  relative  to  GDP  in 
Greece  (9.2%)  was  below  the  EU  average 
(10.9%) in  2021.  The  figure is down  from  9.5% 
in  2020,  as  the  rebound  in  GDP  outpaced  the 
growth  in  health  spending.  Provisional  data  from 
the  OECD  suggest  that  in  2022  total  health 
spending declined further to 8.6% of GDP. In 2021, 
public spending on health accounted for 11.6% of 
total public spending, which is almost the average 
for  these  last  5 years.  Spending  per  capita  on 
inpatient  care,  pharmaceuticals  and  outpatient 
care are all below the EU average. However, as a 
percentage  of  total  health  spending,  spending  on 
inpatient  care  and  pharmaceuticals  is  among  the 

(127) Based on data provided directly by Member States to the 

European Centre for Disease Prevention and Control, under 
the European Surveillance System. 

72 

highest  in  the  EU,  whilst  spending  on  outpatient 
care is again below the EU average. 

programmes.  Another  measure 

In  2021,  spending  on  prevention  in  Greece 
amounted  to  4.0%  of  total  spending  on 
healthcare,  compared  to  6.0%  for  the  EU 
overall. There was a more than three-fold rise in 
the  share  of  total  spending  on  preventive  care 
between  2019  and  2021  (up  106%  for  the  EU 
overall). In Greece, the main factors explaining the 
rise in the spending on preventive care in 2021 are 
the  substantial  increases  for  immunisation  and 
epidemiological  surveillance,  and  risk  and  disease 
control 
to 
safeguard  public  health  is  rationalisation  of  the 
use of antimicrobials. The situation in Greece had 
improved significantly, with the daily consumption 
of antimicrobials in 2021 falling to 69% of that in 
2019.  However,  in  2022 it  increased  significantly, 
to  the  second  highest  level  in  the  EU  and  almost 
back  to  the  2019  level.  According  to  the  Council 
Recommendation  on  stepping  up  EU  actions  to 
combat  antimicrobial  resistance  in  a  One  Health 
approach,  by  2030  Greece  is  supposed  to  reduce 
total consumption of antibiotics in community and 
hospital settings combined by 27% from the 2019 
level. 

Graph A16.2: Projected increase in public 
expenditure on healthcare over 2024-2070 

Baseline scenario 
Source: European Commission / EPC (2024) 

Public  health  spending  as  a  proportion  of 
total health spending (62.1% in 2021) is the 
lowest  in  the  EU.  The  share  of  out-of-pocket 
payments  for  healthcare  is  very  high  (33.3%,  the 
second  highest  in  the  EU).  In  2022,  Greece 
reported 
the  second  highest  proportion  of 
population  (among  EU  countries)  reporting  unmet 
needs  for  medical  care  (see  Annex  14),  with  the 
widest  disparities  in  the  EU  between  income 
groups.  There  are  also  substantial  disparities 
between  regions  (see  Annex  17).  Public  spending 
increase  by  0.8 
on  health 

is  projected 

to 

81.481.981.781.480.280.880.981.081.380.480.180.6201720182019202020212022GreeceEU6.65.20.60.802468EUGreece% of GDP20242070increase 
 
   
 
   
 
Table A16.1:Key health indicators 

Note: The EU average is weighted for all indicators except for doctors and nurses per 1 000 population, for which the EU simple 
average is used. Doctors’ density data refer to practising doctors in all countries except Greece, Portugal (licensed to practise) and 
Slovakia (professionally active). Nurses’ density data refer to practising nurses in all countries except Ireland, France, Portugal, 
Slovakia (professionally active) and Greece (hospital only). 
Source: Eurostat Database; except: * OECD, ** Joint Questionnaire on non-monetary healthcare statistics, *** ECDC, **** Council 
Recommendation on stepping up EU actions to combat antimicrobial resistance in a One Health approach. 

percentage  points  (pps)  of  GDP  by  2070  due  to 
population ageing, compared to 0.6 pps for the EU 
overall (see Graph 16.2 and Annex 21). 

Greece  has  the  highest  number  of  licensed 
doctors  but  one  of  the  lowest  number  of 
nurses per capita across EU countries. General 
practitioners  account  for  only  6%  of  all  doctors, 
which  is  by  far  the  lowest  share  among  EU 
countries. According to the new definition used by 
Eurostat  (following  the  EU  Directive  2005/36/EC 
on  the  recognition  of  professional  qualifications), 
the number of nurses per 1 000 population (2.1 in 
2020) was among the lowest in the EU and much 
in  2021). 
lower  than  the  EU  average 
Furthermore,  this  is  not  expected  to  improve  as 
the number of nursing graduates is relatively low. 

(7.9 

will  also  deploy  around  EUR 323 million  from  the 
European  Social  Fund  Plus 
improve  the 
accessibility  and  effectiveness  of  health  services, 
with  a  focus  on  marginalised  communities, 
vulnerable groups and children (128). 

to 

control 

to  keep  public 

Policies 
spending  on 
face 
under 
pharmaceuticals 
challenges.  These  policies  include  clawbacks  – 
repayment  orders  issued  to  the  industry  when 
spending  is  over-budget.  For  2023,  pre-agreed 
budget ceilings will  probably be  complied with, as 
authorities  negotiated  higher  rebates.  However, 
there seem to be difficulties in controlling demand 
through  compulsory  prescribing  protocols  and 
rational prescribing practices. 

on 

RRP 

focus 

investment 

in  healthcare 

in  healthcare.  Through 

in 
Historically, 
Greece  has  lagged  the  EU  average,  but  EU 
funds  provide  substantial  support.  Among  EU 
countries,  Greece  has  allocated  a  comparatively 
low  percentage  of  GDP  to  investment  in  gross 
capital  formation 
its 
recovery and resilience plan (RRP), Greece plans to 
invest EUR 1 486 million in healthcare. Reforms in 
healthcare, 
the 
pharmaceutical  funding,  public  health,  mental 
health and the hospital remuneration scheme. The 
RRP investments target hospital infrastructure and 
digitalisation,  aim  to  introduce  home  nursing  and 
set up a radiotherapy centre and a haematological 
clinic for cell and genetic therapy. Complementary 
investments are planned under the cohesion policy 
funds  in  2021-2027.  Greece  will  invest  around 
EUR 416 million  from 
the  European  Regional 
Development Fund mainly in health infrastructure, 
health  equipment  and  e-health  services.  Greece 

primary 

Reforms  to  strengthen  primary  care  rely  on 
achieving  appropriate  numbers  of  doctors 
and nurses. Recent reforms focus on doctors. To 
help familiarise medical students with the primary 
healthcare  field,  as  part  of  the  RRP  reforms,  a 
family  medicine  module  has  been  added  to  all 
medical  schools’  curricula.  Besides  this,  5  out  of 
the  7 medical  schools  now  have  active  academic 
curricula  in  family  medicine.  A  new  pay  package 
was offered to doctors and now 3 488 (129) 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  to 
ensure full and equal access to the health system 
through primary healthcare. 

(128) EU cohesion policy data reflect the status as of 13 May 

2024. 

(129) https://prosopikos.gov.gr/ 

73 

20182019202020212022EU average (latest year) Treatable mortality per 100 000 population (mortality avoidable through optimal quality healthcare)90,093,192,494,5NA93.3 (2021)Cancer mortality per 100 000 population241,7241,0240,8238,9NA235.4 (2021)Current expenditure on health, % GDP 8,18,29,59,2NA10.9 (2021)Public share of health expenditure, % of current health expenditure59,261,561,862,1NA81.1 (2021)Spending on prevention, % of current health expenditure 1,21,31,84,0NA6.0 (2021)Available hospital beds per 100 000 population420418423427NA525 (2021)Doctors per 1 000 population6,16,26,26,3NA4.1 (2021)*Nurses per 1 000 population2,02,02,1NANA7.9 (2021)Total consumption of antibacterials for systemic use, daily defined dose per       1 000 inhabitants per day ***34,134,128,123,532,919.4 (2022) 
 
 
  
 
ANNEX 17: ECONOMIC AND SOCIAL PERFORMANCE AT REGIONAL LEVEL 

Makedonia were unemployed  and between 31.9% 
and 42.9% were unemployed in the regions of  

A  number  of  regions  find  themselves  in  a 
persistent  downturn  in  economic  growth, 
employment,  and  productivity  compared  to 
their  neighbours  and 
their  own  past 
economic trajectories. The regions that endured 
the deepest development traps between 2001 and 
2018  were  Kastoria,  Thesprotia,  Phthiotis,  Phocis, 
Dytiki Attiki and Dytiki Makedonia (Map A17.1).  

Map A17.1:  Depth of development trap in NUTS-2 
regions in Greece 

Annex 17 showcases the economic and social 
regional  dynamics  in  Greece.  It  provides  an 
analysis  of  economic,  social  and 
territorial 
cohesion  in  the  Greek  regions  and  assesses 
investment  and  subnational  reform 
emerging 
social 
to  boost  economic  growth, 
needs 
development and competitiveness in the country. 

of 
Overview 
performance at regional level 

economic 

and 

social 

Greek GDP per capita has decreased over the 
past  decade  in  relation  to  the  EU  average, 
with  some  regions  facing  a  development 
trap (130). GDP per  capita  has grown modestly by 
0.85%  between  2013  and  2022.  Against  this 
in 
background, 
Greece  have  increased  only  moderately  while 
convergence  remains 
limited.  Except  for  the 
capital  region  of  Attiki  (90%),  by  2022,  all  Greek 
regions  were  below  72%  of  the  EU  average  in 
terms of GDP per capita. 

regional  economic  disparities 

In 2021, economic activity was concentrated 
mainly  in  two  regions  (Attiki  and  Kentriki 
Makedonia),  amounting  to  61%  of  the 
national GDP, while the at-risk-of-poverty or 
important 
social  exclusion  rate  showed 
regional  disparities.  Despite  the  reduction  in 
unemployment  and  the  increase  in  employment 
levels,  regional  disparities  in  employment  persist 
between the capital  region (Attiki)  and the rest of 
the  country.  At  national  level,  the  long-term 
unemployment  rate  was  three  times  the  EU 
average  in  2023  (6.2%  against  2.1%  of  EU 
average)  (Annex  14).  All  regions  were  above  the 
EU  average,  with 
long-term 
unemployment  rates  set  between  11%  and  7.9% 
of the active population in 2023, Dytiki Makedonia, 
Ipeiros,  Kentriki  Makedonia,  Sterea  Elláda  being 
the  most  affected.  Kriti  was  the  region  with  the 
lowest level of poverty or social exclusion in 2023 
(35.2%), 
(18.5%),  whereas  Dytiki 
Peloponnisos  (35.7%)  and  Anatoliki  Makedonia, 
Thraki (31.9%) were the most affected. 

the  highest 

Ellada 

Entering  the  labour  market  is  particularly 
challenging  for  young  people  (aged  15-24).  In 
2023,  45%  of  young  people  living  in  Dytiki 

Between  2013  and  2023,  the  population  in 
all Greek regions shrunk to differing degrees, 
including  in  the  capital  region  of  Attiki.  This 
reduction  -coupled  with  an  ageing  population  and 
net out-migration of people between 15-39 - have 
shrunk  the  working  population  and  increased  the 
share  of  the  elderly  population.  As  a  result,  two 
regions (Peloponnisos and Ionia Nisia) fall within a 
talent  development  trap, (131)  while  four  more 

(130) The geography of EU discontent and the regional 

(131) Communication Harnessing talent in Europe’s regions, 

development trap 

COM(2023) 32 final  

74 

 
 
 
 
 
 
 
 
 
Table A17.1:Selected indicators at regional level in Greece 

Source: Eurostat, EDGAR database 

regions  are  at  risk  of  falling  within  a  talent 
development trap (Dytiki Ellada, Thessalia, Ipeiros, 
Dytiki  Makedonia).  To  address  the  challenges 
related  to  attracting,  developing  and  retaining 
talent,  the  Peloponnisos  region  is  expected  to 
receive  support  under  the  Commission's  Talent 
Booster Mechanism (132). 

The share of population with low educational 
attainment  -  one  of  the  main  obstacles  to 
economic  growth  and  competitiveness  - 
stood  slightly  below  the  EU  average  (22.4% 
compared  with  24.7%  in  2023).  However, 
Attiki,  Dytiki  Makedonia,  Ipeiros  and  Thessalia  are 
the  only  regions  where  more  than  50%  of  young 
people  (aged  30-34)  completed  their  tertiary 
education,  the  national  average  being  45.1%, 
slightly  higher  than  the  EU  average  of  43.9%  in 
2023.  Early  school  leaving  remains  low  for  the 
country as a whole (3.7% in 2023) (Annex 15), but 
significantly  higher 
in  Sterea  Ellada  (13.6%), 
Anatoliki  Makedonia,  Thraki  (8.8%)  and  Dytiki 
Ellada  (6.9%  in  2022).  However,  the  increase  in 
underperformance  of  15-years-old  students  in 
basic  skills  as  tested  by  the  Programme  for 
International Student Assessment (PISA) is among 
the highest in the EU (Annex 15). 

(132) https://ec.europa.eu/regional_policy/policy/communities-and-

networks/harnessing-talent-platform/talent-booster-
mechanism_en 

75 

Greece  made  progress  in  recent  years  with 
its  regional  innovation  performance,  with 
Attiki  being  the  most  innovative  region  and 
Kriti and Kentriki Makedonia following in the 
ranking  of  Greek  regions,  according  to  the 
2023  Regional  Innovation  Index.  Performance 
has  increased  for  all  regions  -  most  strongly  for 
Ipeiros  and  Peloponnisos  -  and  also  at  a  higher 
rate  than  the  EU  average  (8.5).  In  terms  of 
regional  competitiveness,  the  Greek  regions  show 
an  upward  trend  since  2016  while  remaining 
below the EU average. In 2022 (EU average=100, 
Greece=73.1),  Attiki  was  the  most  competitive  of 
the  Greek  regions  (92.3),  followed  by  Kentriki 
Makedonia (69.8). 

increasing  at 

Access  to  healthcare  was  hindered  by 
financial  barriers,  long  waiting  lists,  and 
distance.  Between  2022  and  2023,  Greece 
experienced  a  further  29%  rise  in  self-reported 
unmet medical needs, from 9% to 11.6%, with the 
for 
indicator 
households below the at-risk-of-poverty threshold. 
The  sharpest 
in  Dytiki 
Makedonia,  from  8.5%  to  13.1%.  The  indicator 
also  stayed  high  and  above  the  national  average 
in Anatoliki Makedonia, Thraki (15.6%), Ionia Nisia 
(14.2%),  Voreio  Aigaio  (13.3%),  and  Peloponnisos 
(13.1%).  

rise  was 

recorded 

fourfold 

least 

of 

lack 

The 
transport 
key 
infrastructures  in  rail  and  bus  transport 
hinders  socio-economic  development  and 

public 

GDP per head (Purchasing Power Standard/PPS)GDP per head growthPopulation change Youth unemployment rateLong-term unemploymentAt-risk-of-poverty or social exclusionUnemployment ratePopulation aged 25-64 with low educational attainmentSelf-reported unmet needs for medical examination Electric vehicle charging pointsEU27 = 1002022Average % change on the preceding year2013-2022% change 2013-2023% of labour force aged 15-242023 (Notio Aigaio: 2021) % of labour force2023% of population 2023 (EU: 2022)% of labour force2023% of population aged 25-642023% of population 2023 (EU: 2022)Points per million inhabitants2022European Union 1001.441.714.52.121.66.120.22.2287.5Elláda670.85-5.426.76.226.111.118.911.653.2Attiki900.88-3.121.25.322.79.410.610.3132.5Voreio Aigaio41-0.09-2.028.14.730.41023.413.30.4Notio Aigaio67-0.62-2.333120.57.131.4125.7Kriti560.93-1.121.73.218.510.825.710.28.3Anatoliki Makedonia, Thraki470.87-8.331.87.431.912.135.615.61.9Kentriki Makedonia531.32-6.830.58.829.614.118.212.414.9Dytiki Makedonia60-3.79-11.0451132.716.720.213.11.9Ipeiros470.85-7.142.98.920.113.820.211.83Thessalia521.82-8.030.86.424.712.921.810.73.5Ionia Nisia57-0.01-2.930.94.727.714.725.714.21.5Dytiki Elláda490.34-5.831.25.235.29.823.312.85.6Sterea Elláda721.49-10.032.77.922.89.924.911.50.9Peloponnisos591.01-8.931.15.535.79.626.213.14Region name 
 
 
 
  
 
people's  quality  of  life.  In  2022,  an  EU-wide 
survey on passenger mobility (133) showed that the 
number  of  trips  by  public  transport  for  short-
distances in Greek cities was half the EU average, 
with  private  cars  being  the  main  mode  of 
transport.  Data  show that  there is  huge  wedge in 
access  to  public  transport  between  Attiki  and  all 
other  regions.  The  same  applies  to  e-mobility. 
While  in  Attiki  residents  have  access  to  132.5 
charging  points  per  million 
(EU 
average:  287.5),  this  number  drops  at  least  10-
fold for all the other regions.  

inhabitants 

Investment  and  subnational  reform  needs 
ahead 

The  Tempi  rail  tragedy  and  the  extensive 
damage  caused  by  Storm  Daniel  highlighted 
the  fragility  of  the  Greek  rail  system, 
particularly  with  regards  to  rail  safety. 
Greece  is  due  to  deploy  the  necessary  physical 
infrastructures  to  adequately  reduce  risks  on  the 
rail  network  in  operation:  a)  accelerate  planning 
and completion of required investments in the rail 
signaling system and kick start the safe operation 
of  the  ERTMS  system  on  all  major  rail  lines, 
involving  not  only 
construction  but  also 
authorisation by national safety authorities of the 
new  infrastructure  and  relevant  recertification  of 
drivers  to  operate  safely  on  ERTMS  routes;  b) 
assess climate vulnerability of the rail network and 
implement  progressively  investments  in  climate 
proofing. 

In  2021, 

Greece  continues  to  rely  heavily  on  landfill, 
resulting  in  a  systematic  failure  to  meet  EU 
recycling  targets. 
the  country’s 
recycling  rate  stood  at  17.5%  (EU  average:  48%) 
while  landfill  accounted  for  a  substantial  65%. 
According to the 2023 Waste Early Warning report, 
Greece  is  among  the  EU  Member  States  facing  a 
serious  risk  of  failing  to  meet  its  2025  recycling 
targets (134). The challenges ahead are to reach by 
2030  an  ambitious  recycling  rate  of  60%,  and 
significantly reduce landfill to 10% by 2035.  

To  reverse  the  current  situation  in  waste 
management,  robust  actions  are  needed  to 

(133) https://transport.ec.europa.eu/news-events/news/new-

mobility-patterns-study-insights-passenger-mobility-and-
urban-logistics-2022-12-20_en 

ensure  cost  efficiency  and  the  proper 
functioning and funding of the sector. Priority 
could  be  given  to  the  implementation  of  modern 
recycling  and  recovery  facilities  that  receive 
separated  waste,  as  well  as  the  establishment  of 
complementary  separate  collection  systems. It  is 
important 
capacity  of 
the 
beneficiaries 
(regional  waste  management 
associations and municipalities), including staffing. 
Ensuring that the recently established solid waste 
regulator 
is 
essential for the supervision of the sector. 

is  staffed  and  up-and-running 

strengthen 

to 

combined 

implementation, 

The  functioning  and  management  of  the 
water  sector  faces  a  number  of  challenges. 
From  a  lack  of  strategic  planning,  fragmented 
programming  and  lack  of  prioritisation  to  slow 
project 
with 
shortcomings in the operation and maintenance of 
wastewater  infrastructures,  as  well  as  limited 
connection of the private dwellings to the sewage 
networks.  Weak  final  beneficiaries,  repeatedly  fail 
to deliver quality  projects on time and on budget; 
and  appear  insufficiently  equipped  to  ensure  the 
proper  maintenance  and  operation  of  wastewater 
treatment plants. To rationalise and streamline the 
water  sector,  it  would  be  important  to  boost  the 
administrative, 
technical,  organisational  and 
financial capacity of water operators. Developing a 
the 
tariff-based 
recently 
established  water  regulator 
line  with  the 
polluter  pays  principle,  which  ensures  full  cost 
recovery and financial viability of investments will 
be 
that 
encompass  water,  wastewater,  energy  recovery, 
and 
digitalisation,  water 
desalination are needed. 

Comprehensive 

investments 

rainwater 

through 

reuse, 

policy 

key. 

in 

phenomena, 

investments 

Given  the  increased  frequency  of  extreme 
in 
natural 
prevention and preparedness against climate 
change-related 
risks  are  crucial.  These 
investments  are  included  in  the  existing  cohesion 
policy  allocation  of  EUR  1.13  billion (135)  for 
promoting climate change adaptation and disaster 
risk  prevention  and  resilience.  However,  a  greater 
use  of  eco-system-based  approaches  is  needed, 
for  more  sustainability  and  cost-effectiveness, 
building  better  resilience  to  climate  change  and 
securing biodiversity targets. 

(134) https://environment.ec.europa.eu/publications/waste-early-
warning-reports-2023-country-specific-factsheets_en 

(135) EU allocation. 

76 

 
 
 
increasing 

public-private 

Increasing  the  capacity  for  businesses  to 
innovate in less developed regions remains a 
high  priority.  In  particular,  further  strengthening 
the capacity for technological innovation transfers 
collaboration, 
by 
cooperation  between  large  businesses  and  SMEs, 
facilitating  investments  in  net-zero  technologies 
manufacturing, 
strengthening 
innovation  enablers  and  participation  in  European 
research  and  innovation  networks,  platforms  and 
programmes (Annex 11). Greece could also benefit 
from the opportunities under the STEP initiative to 
the  development  and 
boost 
manufacturing  of  critical  technologies  to  support 
industry's transformation. 

investments 

as  well 

as 

in 

Investing  in  skills  is  crucial  to  supply  the 
Greek  economy  with  a  well-trained  labour 
force.  Better  synergies  and  coordination  between 
the  national  system  of  lifelong  learning  and  skill 
provision  systems  and  the  regional  diagnostic 
mechanisms  of  labour  market  are  key  to  tackling 
skills  shortages  and  better  matching 
labour 
market needs and skills training. 

Adverse demographic trends point to a rise in 
the  ageing  population.  Long-term  care 
is 
underdeveloped,  with  no  comprehensive  formal 
services  that  guarantee  universal  coverage.  A 
comprehensive  mapping  could  help 
identify 
territorial  gaps  in  availability  and  access  to  long-
term  care  services  while  measures  facilitating 
active  and  healthy  ageing  could  promote 
autonomy and independent living. 

Housing  affordability  is  becoming  a  serious 
problem,  especially  in  big  cities  and  areas 
attracting  tourism.  Several  housing  initiatives 
were  promoted  by  the  Greek  authorities.  These 
initiatives  were  however  limited  and  did  not  fully 
address the issue. The development of a long-term 
plan for housing, incorporating systemic policies to 
promote social housing and housing assistance of 
good  quality,  as  well  as  measures  tackling 
homelessness, is key to overcoming the challenge. 

77 

 
 
MACROECONOMIC STABILITY 
ANNEX 18: KEY FINANCIAL SECTOR DEVELOPMENTS 

resolutions, 

restructurings, 

Greece’s  bank-based  financial  sector 
is 
highly  concentrated.  The  domestic  banking 
sector is dominated by four systemically important 
banks  holding  around  95%  of  market  share.  Very 
high concentration and low foreign ownership is a 
direct  result  of  the  consolidation  triggered  by 
numerous 
and 
recapitalisations  during  the  three  Greek  economic 
adjustment  programmes  (2010-2018).  The  banks 
are  mainly  privately-owned,  but  the  State  has, 
through  the  Hellenic  Financial  Stability  Fund, 
sizeable  ownership  stakes  in  one  systemic  bank 
and  the  fifth  largest  bank.  The  Fund  started  a 
divestment  process  in  late  2023  and  plans  to 
reduce  or  eliminate  its  ownership  in  all  systemic 
banks by end-2025. The Greek systemic banks are 
also present in the wider region, with operations in 
Cyprus and Bulgaria being the most noteworthy. 

Graph A18.1: Evolution of credit activity 

Adjusted for loan sales and securitisations. 
Source: ECB. 

significant 

Following 
asset-quality 
improvements  in  recent  years,  the  reduction 
in  the  stock  of  non-performing  loans  (NPLs) 
continued  more  slowly  in  2023.  The  NPL  ratio 
stood  at  5.7%  of  total  loans  in Q3-2023,  0.5 pps 
less than at the end of 2022 but significantly less 
than the 26.5% it reached in 2020 and the 2016 
peak of 46.3% (136). This sharp reduction in legacy 
NPLs  was  largely  due  to  securitisations  under  the 
Hellenic  Asset  Protection  Scheme  (HAPS)  coupled 
with  outright  loan  disposals.  The  HAPS  expired  in 

(136) ECB consolidated banking data. 

78 

October  2022  but  was  relaunched  in  November 
2023 to run until the end of 2024. The relaunched 
scheme is  also  expected  to  help  smaller banks  to 
clean  up  their  balance  sheets  more  rapidly.  While 
the  level  of  NPLs  improved  markedly  in  recent 
years, 
the  EU, 
substantially above the EU average (1.8%). 

the  highest 

remains 

in 

it 

in 

term,  due 

Greek  banks  continued  to  be  profitable  in 
2023,  while  capital  ratios  remain  stable. 
Profits were mainly driven by net interest income, 
as  the  interest  rate  spread  remained  high  given 
banks’  predominantly  variable-interest  loan  book 
and  the  slow  repricing  of  deposit  rates.  With 
return-on-equity of 13.1% in the first 9 months of 
2023,  banks  performed  better  than  the  EU 
average  (9.9%).  This  profitability  is  likely  to  be 
challenged 
to 
the  medium 
expectations  of:  (i)  monetary  loosening;  (ii)  higher 
pass-throughs  to  deposit  rates;  (iii)  an  increasing 
share of term accounts in the deposit mix; and (iv) 
potentially  higher  provisioning  needs.  In  addition, 
the rising cost of wholesale funding is relevant for 
profitability,  given:  (i)  the  banks’  need  for  future 
issuances of long-term debt to meet the minimum 
requirement  for  own  funds  and  eligible  liabilities 
(MREL);  and  (ii)  the  gradual  phasing  out  of 
targeted longer-term refinancing operations. In the 
second  half  of  2023,  three  of  the  four  major 
rating agencies returned Greece’s sovereign credit 
rating  to  investment  grade,  which  in  turn  is 
expected  to  affect  favourably  the  borrowing  cost 
for  commercial  banks.  Greek  banks’  capital 
adequacy  ratio  has  remained  stable  at  17.6%  in 
September 2023 (vs 19.6% in the EU). The capital 
position of Greek banks remains one of the lowest 
in the EU and its quality continues to be a concern, 
due to the high, albeit declining, share of deferred 
tax  credits  (these  accounted  for  approximately 
44%  of  total  prudential  own  funds  in  December 
2023 at consolidated level). Although asset quality 
and profitability have improved markedly in recent 
years,  the  financial  sector  still  faces  challenges. 
The  main  challenges  include:  (i)  the  workout  of 
legacy  non-performing  debt  which  has  exited 
banks’  balance  sheets  but  largely  remains  in  the 
economy,  held  by  credit  servicers  (approx.  EUR 
69.5  billion 
in  December  2023),  which  are 
expected  to  proceed  with  the  resolution  and 
restructuring of this debt; (ii) improving the quality 
of  banks’  capital;  and  (iii)  addressing  the  still 
substantial multichannel interlinkages between the 
banking sector and the Greek sovereign. 

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

(1) Last data: Q3-2023. 
(2) Data are annualised. 
(3) Data available for EA countries only, EU average refers to EA area. 
Source: ECB, Eurostat. 

Greek 

capital  market 

The 
remains 
underdeveloped,  despite  some  progress  in 
recent  years.  The  market-funding  ratio  has 
improved since 2017 but remains low at 30.2% in 
2022  compared  to  an  EU  average  of  50.8%.  The 
Athens  stock  exchange  is  still  far  from  its  pre-
2008 levels, in terms of both market capitalisation 
and  daily  turnover.  Sustainable  finance  in  Greece 
still  lags  EU  peers,  as  green  bond  issuance  has 
stagnated  in  recent  years.  The  Greek  authorities 
adopted in  February  2023  a  national  strategy  for 
strengthening  the  Greek  capital  market.  The 
strategy  is  built  on  six  pillars:  the  regulatory  and 
supervisory  framework;  investment  opportunities 
and  the  ESG  and  fintech  ecosystem;  the  taxation 
framework; the operating framework of the capital 
market; demand; and financial literacy. 

The  Greek 
is  highly 
insurance  sector 
concentrated  and  smaller  than  its  EU  peers. 
As  of  30 September  2023,  total  assets  held  by 
Greek  insurers  were  equivalent  to  8.8%  of  GDP, 
compared  to  an  EU  average  of  53.7%.  The 
solvency  ratio  remained  solid  at  190.1%,  almost 
twice the regulatory requirement, albeit lower than 
the  EU  average  of  262.3%.  Like  elsewhere,  the 
higher-than-expected 
inflation  may  generate 
short-term  losses  for  the  non-life  business  of 
Greek insurers. According to the EIOPA’s dashboard 
on 
for  natural 
catastrophes,  Greece  has  one  of  the  highest 
insurance  protection  gaps  in  Europe  for  natural 
hazards, particularly earthquakes and wildfires. 

insurance  protection  gap 

Credit growth continued in 2023 at a slower 
pace  for  non-financial  corporations  (NFCs) 
but  remained  negative  for  households.  While 
the  credit-growth  rate  in  2023  was  lower  than  in 
2022, lending to NFCs continued at a steady pace 
(see Graph A18.1). Stock of lending to households 
continued to fall, as the increase in new lending to 
households  was  more  than  offset  by  repayments 
of existing mortgages. One of the reasons for the 
subdued demand is the increased cost of lending; 
with  rising  interest  rates,  the  weighted  average 
cost  of  new  bank  lending  has  risen  significantly. 
While  this  affects  both  households  and  NFCs, 
lending to companies in programmes supported by 
the  RRF  generally  has  a  lower  cost  than  market-
based  lending,  and  this  in  turn  increases  demand 
for lending in the NFC segment. 

House  prices  continued  to  grow  strongly  in 
2023,  unlike  in  many  other  EU  countries. 
Apartment prices increased by 11.8% year-on-year 
in  nominal  terms  in  the  fourth  quarter  of  2023, 
with the strongest increases in large urban centres 
but remained 7% below their peak levels in 2008. 
This  price  rebound,  following  the  large  fall  in  the 
2008-2017 period, is also driven by FDI purchases 
linked  to  the  country’s  golden  visa  programme. 
in  Greece,  expressed  as  a 
Housing  costs 
percentage  of  households’  disposable  income, 
were the highest in the EU  at 34.2% in 2022 (EU 
average:  19.9%).  However,  net  credit  growth  for 
mortgages is persistently negative since 2010, so 
financial  stability  risks  are  limited.  The  Bank  of 
Greece  has  maintained  the  countercyclical  capital 
buffer  at  zero  as  there  are  no  signs  of  excessive 
credit growth. 

79 

2017201820192020202120222023EUMedianTotal assets of the banking sector (% of GDP)170.4163.0168.9203.7180.9158.5142.5257.0184.6Share (total assets) of the five largest banks (%)97.096.897.497.096.295.7--69.6Share (total assets) of domestic credit institutions (%)197.998.098.798.798.698.598.6-62.9NFC credit growth (year-on-year % change)0.00.21.810.23.311.65.9-2.4HH credit growth (year-on-year % change)-2.0-2.2-2.8-2.0-2.0-2.3-1.9-1.4Financial soundness indicators:1        - non-performing loans (% of total loans)45.041.635.526.58.66.25.71.81.8- capital adequacy ratio (%)17.116.017.316.716.217.417.619.620.1- return on equity (%)2-1.3-0.40.7-7.9-20.112.713.19.913.2Cost-to-income ratio (%)152.755.252.142.664.437.235.452.844.9Loan-to-deposit ratio (%)183.574.774.863.956.960.762.493.380.2Central bank liquidity as % of liabilities16.25.23.215.317.912.65.4-0.7Private sector debt (% of GDP)120.4119.1110.4125.6122.0100.8-133.0118.4Long-term interest rate spread versus Bund (basis points)566.1378.8283.8178.2125.8234.4156.8107.7104.2Market funding ratio (%)21.523.225.625.932.230.2-50.839.8Green bonds outstanding to all bonds (%)3---0.71.71.81.74.02.71-34-1011-1718-2424-27Colours indicate performance ranking among 27 EU Member States. 
 
  
 
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  workers,  and  the  progressivity  and 
redistributive  effect  of  the  tax  system.  It  also 
provides 
tax  collection  and 
compliance. 

information  on 

Greece’s  tax  revenues  burden  exceeded  the 
EU  average  in  2022.  The  tax  revenue-to-GDP 
ratio in Greece increased to 41.2% in 2022, which 
was  1.0  pps  above  the  EU  aggregate  (Table 
A19.1).  In  terms  of  structure,  tax  revenues  in 
Greece tend to rely more on growth-friendly taxes 
(i.e.  consumption  taxes  rather  than  labour  taxes) 
than  the  EU  average  (Graph  A19.1).  Efforts 
continued to further improve the tax mix and make 
the  tax  system  more  growth  friendly.  Revenues 
from  environmental  taxes  continued  to  increase 
and  reached  5.6%  of  GDP  in  2022,  the  highest 
share  in  the  EU.  Revenues  from  both  energy  and 
transport  tax  (as  a  %  of  GDP)  are  significantly 
above  the  EU  aggregate,  but  the  relatively  low 
revenue  from  pollution  and  resources  taxes 
suggests potential to strengthen the application of 
the 
‘polluter  pays’  principle.  Revenues  from 
property  taxes  (3.0%  of  GDP)  also  exceeded  the 
EU aggregate (2.1% of GDP). This was particularly 
the  case  for  recurrent  taxes  from  immovable 
property (2.2% of GDP, compared to 1.0% for the 
EU  aggregate),  which  are  among  the  taxes  least 

Table A19.1:Taxation indicators 

detrimental to economic growth.     

Greece’s labour tax burden is lower than the 
EU average across the various income levels. 
Graph A19.2 shows that the labour tax wedge for 
Greece in 2023 was lower than the EU average for 
single  people  at  various  income  levels  and  for 
second  earners  at  67%  of  the  average  income. 
Overall,  the  progressivity  of  the  tax  system  (as 
measured  by  the  ratio  of  the  tax  wedge  of  high- 
and  low-  income  earners)  is  similar  to  the  EU 
average.  However,  the  tax  and  benefit  system 
reduces  income  inequality  (as  measured  by  the 
Gini  coefficient)  far  less  than  the  EU  average  in 
2022 (Table A19.1). In Greece, the tax and benefit 
system reduced the Gini coefficient on average by 
4.0  pps,  while  in  the  EU  this  reduction  was  on 
average  7.9  pps  in  2022.  It  is  notable,  however, 
that  the  difference  from  the  EU  average  was 
reduced in 2022 by comparison with 2021. 

tax  evasion 

Digitalisation,  improving  tax  compliance  and 
combating 
remain  highly 
relevant  to  enhancing  the  performance  of 
the Greek tax administration. At 203% of total 
net  revenue  collected,  outstanding  tax  arrears 
remained  the  highest 
in  the  EU  (35.5%  on 
average)  in  2021.  The  VAT  compliance  gap  (the 
gap  between  revenues  actually  collected  and  the 
theoretical tax liability) remained high at 17.8% in 
2021,  declining  in  line  with  most  EU  Member 
States.  However,  it  remained  well  above  the  EU-

(1) Forward-looking effective tax rate (OECD).  
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average. 
(**) Forecast value for 2022, if available. For more details on the VAT gap, see European Commission, Directorate-General for 
Taxation and Customs Union, 2023, VAT gap in the EU, https://data.europa.eu/doi/10.2778/911698. 
For more data on tax revenues as well as the methodology applied, see the Data on Taxation webpage, 
https://ec.europa.eu/taxation_customs/taxation-1/economic-analysis-taxation/data-taxation_en#. 
Source: European Commission and OECD 

80 

EL2010202020212022202320102020202120222023Total taxes (including compulsory actual social contributions) (% of GDP)32.339.540.041.237.940.040.440.2Labour taxes (as % of GDP)13.717.517.216.220.021.320.720.3Consumption taxes (as % of GDP)12.014.515.017.010.810.711.211.0Capital taxes (as % of GDP)6.67.67.98.07.18.08.68.9Of which, on income of corporations (as % of GDP)2.61.42.02.52.42.53.03.4Total property taxes (as % of GDP)2.03.43.23.01.92.32.22.1Recurrent taxes on immovable property (as % of GDP)1.02.62.42.21.11.21.11.0Environmental taxes as % of GDP2.74.14.25.62.42.22.32.0Tax wedge at 50% of average wage (Single person) (*)34.432.130.030.330.633.931.732.131.831.7Tax wedge at 100% of average wage (Single person) (*)40.038.937.438.038.541.040.139.940.040.2Corporate income tax - effective average tax rates (1) (*)23.021.021.019.519.019.0Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)5.54.43.74.08.68.18.27.9Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)228.3203.040.935.5VAT Gap (% of VAT total tax liability, VTTL)(**)22.721.017.810.29.75.4Tax structureProgressivity & fairnessTax administration & complianceGreeceEU-27 
 
 
 
       
 
 
 
Graph A19.1: Tax revenues from different tax types, % of total revenue 

Source: European Commission 

that 

in  2021  shows 

wide  gap  of  5.4%.  The  evolution  of  the  VAT 
compliance  gap 
the 
improvement  of  VAT  compliance  in  Greece  was 
rather  stable  and  is  linked  to  a  reduction  in  the 
VAT burden. The government reduced the VAT rate 
for  a  number  of  goods  and  services  (including 
hospitality,  tourism,  and  entertainment  services) 
from  24%  to  13%.  Companies  affected  strongly 
by the COVID-19 pandemic were allowed to defer 
their  VAT  payments.  Similarly,  on-time  payment 
rates for VAT continued to improve and amounted 
to 90.3% of expected due revenues  (137). However, 
the rate of audits with adjustment as a percentage 
of audits completed (88.5%) could indicate under-
reporting.  In  relation  to  efficient  tax  collection, 
gross ICT expenditure increased eightfold between 
2019  and  2021  and  the  rate  of  returns  filed 
electronically  was  high  for  CIT,  PIT  and  VAT  (138). 
The Greek administration has developed a strategy 
for digital transformation and digital culture which 
is  overseen  by  a  senior  management  governance 
body 
skills 
requirements. (139) 

identified 

future 

and 

has 

(137) OECD, Tax Administration 2023, Comparative Information on 
OECD and other Advanced and Emerging Economies, data 
tables available at https://www.oecd-ilibrary.org/taxation/tax-
administration-2017/table-a-9-on-time-payment-
performance_tax_admin-2017-table67-en 

(138) From EUR 1.3 million to EUR 11.1 million, OECD, Tax 

Administration 2023, Comparative Information on OECD and 
other Advanced and Emerging Economies, data tables 
available at 0d09309f-en.pdf (oecd-ilibrary.org). 

(139) OECD, Forum on Tax Administration, Tax Tech, available at 
https://www.oecd.org/tax/forum-on-tax-administration/tax-
technology-tools-and-digital-solutions/strategy-governance-
and-new-skills.htm 

81 

Graph A19.2: Tax wedge for single and second 
earners as a % of total labour costs, 2023 

The second earner tax wedge assumes a first earner at 100% 
of the average wage and no children. For the methodology of 
the tax wedge for second earners see OECD, 2016, Taxing 
Wages 2014-2015. 
Source: European Commission 

tax  administration  and 

Greece has made a commitment in its RRP to 
adopt  ambitious  measures  with  a  view  to 
making  taxes  more  growth-friendly  and 
tax 
improving 
collection.  In  line  with  this  commitment,  Greece 
already as a first step introduced modifications to 
its  tax  policy  framework  in  December  2023  that 
promote  electronic  payments;  strengthen  and  set 
new  electronic  reporting  (myDATA)  requirements 
(including for VAT purposes); limit the use of cash 
in  real  estate  transactions;  and  complete  the 
linking of cash systems that could further improve 
tax compliance and combat tax evasion.  (140) 

(140) See IMF, 2023, selected issues paper Recent Trend of 
Informality in Greece, which finds that the estimated 
informality had declined by about 14 pps of GDP since 2013. 

30.634.538.544.035.52025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - ELSingle earner - EU averageSecond earner -  ELSecond earner -  EU average50.627.322.139.341.219.5Tax revenue shares in 2022, Greece (outer ring) and EU (inner ring)Taxes on labourTaxes on consumptionTaxes on capital11.73.91.80.90.10.25.22.52.02.70246810121416Greece -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) NIIP excluding direct investment and portfolio equity shares. 
Source: Eurostat and ECB as of 2024-5-17, where available; European Commission for forecast figures (Spring forecast 2024). 

82 

2004-072008-122013-2020212022202320242025Real GDP (y-o-y)3.6-5.5-0.88.45.62.02.22.3Potential growth (y-o-y).-1.0-1.5-0.60.20.61.21.6Private consumption (y-o-y)3.4-4.3-0.45.87.41.81.71.6Public consumption (y-o-y)5.1-3.30.31.82.11.70.40.0Gross fixed capital formation (y-o-y)5.8-17.70.419.311.74.06.78.4Exports of goods and services (y-o-y)9.3-1.91.424.26.23.74.24.0Imports of goods and services (y-o-y) 8.3-7.83.817.97.22.13.83.6Contribution to GDP growth:Domestic demand (y-o-y)4.6-7.0-0.26.87.12.12.22.3Inventories (y-o-y)-0.3-0.70.30.9-0.6-0.70.00.0Net exports (y-o-y)-0.82.1-0.90.6-1.00.60.00.0Contribution to potential GDP growth:Total Labour (hours) (y-o-y).0.9-0.5-1.2-0.7-0.30.00.1Capital accumulation (y-o-y).0.1-0.4-0.10.00.10.10.3Total factor productivity (y-o-y).-2.0-0.60.70.80.81.11.2Output gap1.6-8.5-12.1-6.2-1.10.31.22.0Unemployment rate9.714.721.814.712.511.110.39.7GDP deflator (y-o-y)3.11.5-0.51.57.84.53.02.2Harmonised index of consumer prices (HICP, y-o-y)3.22.9-0.20.69.34.22.82.1HICP excluding energy and unprocessed food (y-o-y)3.22.00.0-0.75.76.23.12.2Nominal compensation per employee (y-o-y)5.1-0.9-1.73.82.85.54.32.7Labour productivity (real, hours worked, y-o-y)1.7-3.50.20.01.60.30.81.4Unit labour costs (ULC, whole economy, y-o-y)3.12.80.1-3.1-0.24.53.01.0Real unit labour costs (y-o-y)0.01.30.6-4.5-7.50.00.0-1.2Real effective exchange rate (ULC, y-o-y)1.40.6-1.5-3.2-3.9-2.3-1.6-1.4Real effective exchange rate (HICP, y-o-y)0.80.2-0.5-1.3-0.3-0.5..Net savings rate of households (net saving as percentage of net disposable income)-0.7-6.8-11.5-3.2....Private credit flow, consolidated (% of GDP)14.41.8-0.80.81.12.0..Private sector debt, consolidated (% of GDP)88.7125.7123.8122.4101.196.4..of which household debt, consolidated (% of GDP)38.159.260.255.745.341.8..of which non-financial corporate debt, consolidated (% of GDP)50.666.563.666.755.854.6..Gross non-performing debt (% of total debt instruments and total loans and advances) (1).9.134.77.15.0...Corporations, net lending (+) or net borrowing (-) (% of GDP)5.17.24.00.9-1.60.30.80.9Corporations, gross operating surplus (% of GDP)19.018.016.216.919.719.419.219.4Households, net lending (+) or net borrowing (-) (% of GDP)-7.9-4.7-3.01.2-4.1-3.0-3.1-2.4Deflated house price index (y-o-y)4.6-6.50.36.55.28.4..Residential investment (% of GDP)9.95.60.81.31.61.9..Current account balance (% of GDP), balance of payments-10.8-10.0-2.3-6.8-10.3-6.3-5.7-5.3Trade balance (% of GDP), balance of payments-9.1-7.2-1.9-7.6-9.8-4.8..Terms of trade of goods and services (y-o-y)-0.1-0.30.4-1.00.26.30.10.4Capital account balance (% of GDP)1.41.20.82.21.51.2..Net international investment position (% of GDP)-79.7-94.2-146.9-173.0-143.5-140.5..NENDI - NIIP excluding non-defaultable instruments (% of GDP) (2).-96.2-134.2-151.1-119.8-112.9..IIP liabilities excluding non-defaultable instruments (% of GDP) (2).189.9249.1305.8262.8248.8..Export performance vs. advanced countries (% change over 5 years)..-6.713.016.56.3..Export market share, goods and services (y-o-y)0.9-5.9-1.819.38.92.60.70.3Net FDI flows (% of GDP)0.1-0.1-1.3-2.4-2.4-0.6..General government balance (% of GDP)-6.9-11.3-2.4-7.0-2.5-1.6-1.2-0.8Structural budget balance (% of GDP)..4.0-4.6-2.5-1.5-1.7-1.8General government gross debt (% of GDP)104.2144.2184.4195.0172.7161.9153.9149.3forecast 
 
 
 
  
 
 
ANNEX 21: DEBT SUSTAINABILITY ANALYSIS 

This  annex  assesses  fiscal  sustainability 
risks for  Greece over the  short, medium  and 
long  term. 
It  follows  the  multi-dimensional 
approach  of  the  European  Commission’s  2023 
Debt Sustainability Monitor, updated based on the 
Commission 2024 spring forecast. 

1  –  Short-term  risks  to  fiscal  sustainability 
low.  The  Commission’s  early-detection 
are 
indicator  (S0)  does  not  point  to  any  major  short-
term  fiscal  risks  (Table A21.2) (141).  Government 
gross financing needs are expected to decrease to 
around 8½ % of GDP on average over 2024-2025 
(Table A21.1, Table 1).  The  sovereign  credit  rating 
has  been  steadily  improving  and  has  returned  to 
investment grade at three of the four major rating 
agencies by the cut-off date of this report.  

2  –  Medium-term  fiscal  sustainability  risks 
appear high.   

The DSA baseline shows that the government 
debt ratio is expected to decline but remains 
at  a  high  level  in  the  medium  term  (at 
around 119% of GDP in 2034) (Graph 1, Table 
1) (142).  The  debt  reduction  is  supported  by  the 
assumed  structural  primary  surplus  of  1.7%  of 
GDP  (excluding  changes  in  cost  of  ageing)  as  of 
2024.  Compared  to  historical  data  running  from 
1980,  this  may  appear  fairly  ambitious.  Indeed, 
less  than  one  fourth  of  past  fiscal  positions  were 
more  stringent  than  the  one  assumed  in  the 

(141) The S0 is a composite indicator of short-term risk of fiscal 
stress. It is based on a wide range of fiscal and financial-
competitiveness indicators that have proven to be a good 
predictor of emerging fiscal stress in the past.  

(142) The assumptions underlying the Commission’s ‘no-fiscal 

policy change’ baseline include in particular: (i) a structural 
primary surplus, before changes in ageing costs, of 1.7% of 
GDP from 2024 onwards; (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 ahead); (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 2024 spring  forecast, followed by the 
EPC/OGWG ‘T+10 methodology projections between T+3 and 
T+10 (average of 0.8%); (v) ageing costs in line with the 
2024 Ageing Report (European Commission, Institutional 
Paper 279, April 2024). For information on the methodology, 
see the 2023 Debt Sustainability Monitor see the 2023 Debt 
Sustainability Monitor (European Commission, Institutional 
Paper 271, March 2024). 

83 

recent 

relevant 

baseline.  (Table  A21.2) (143).  However,  compared 
performance, 
with  more 
maintaining  such  a  SPB  seems  plausible  (as  the 
average  SPB  computed  over  the  last  15  years 
reaches  a  surplus  of  3.6%  of  GDP).  The  debt 
decline  also  benefits  from  a  still  favourable  but 
declining snowball effect of around -0.6% of GDP 
annually  on  average  over  2025-2034,  which  is 
also  supported  by  the  impact  of  Next  Generation 
EU.  On  the  other  hand,  stock-flow  adjustments 
should  slightly  mitigate 
the  projected  debt 
reduction  over  the  period  2025--2034  (-0.5  pps. 
on average per year), due to the effect of deferred 
interests until 2032 (144).  

four 

The  baseline  projections  are  stress-tested 
deterministic 
alternative 
against 
scenarios to assess the impact of changes in 
key  assumptions  relative  to  the  baseline 
(Graph 1).  Under  the  historical  structural  primary 
balance  (SPB)  scenario  (i.e.  the  SPB  returns  to  its 
historical 15-year average) the debt ratio would be 
lower  than  under  the  baseline  by  15.7 pps.  in 
2034. However, under the adverse interest-growth 
rate  differential  scenario  (i.e.  the  interest-growth 
rate  differential  deteriorates  by  1 pp.  compared 
with the baseline), the debt ratio would be  higher 
than under the baseline by 9.6 pps. in 2034. Under 
the  financial  stress  scenario  (i.e.  interest  rates 
temporarily  increase  by  5.3 pps.  compared  with 
the baseline) the government debt ratio would be 

(143) This assessment is based on the fiscal consolidation space 

indicator, which measures the frequency with which a tighter 
fiscal position than assumed in a given scenario has been 
observed in the past. Technically, this consists in looking at 
the percentile rank of the projected SPB within the 
distribution of SPBs observed in the past in the country, 
taking into account all available data from 1980 to 2023. 

(144) The discussion among statistical authorities related to the 
statistical treatment of the deferred interest on the EFSF 
loan is ongoing. As part of the debt relief measures granted 
in 2012 and extended in 2018, Greece’s interest payments 
on part of its EFSF loan are deferred, and Greece is expected 
to start repaying these amounts as of 2033. The deferred 
amounts have been recorded as accrued interest 
expenditure, and hence deteriorate the budget balance, but 
the resulting liability has not been recorded as part of the 
Maastricht debt. In co-operation with Member States, 
Eurostat is reviewing the statistical recording of deferred 
interest on EFSF loans, for EDP purposes. If the statistical 
authorities decide to include these amounts into the 
Maastricht debt, debt figures could be revised upwards. 
Importantly, such a decision does not affect the assessment 
of Greece’s debt sustainability or its financing needs, as the 
amounts to be actually repaid are the same. 

 
 
 
 
 
 
 
in 

decline 
of 

term.  This  result  is  underpinned  by  a  favourable 
initial  budgetary  position  (-0.9  pps.)  and  the 
costs 
projected 
(contribution 
costs’ 
-0.6 pps.)-. 
developments  are  primarily  driven  by  both  a 
projected  decrease  in  public  pension  expenditure 
(-1.0 pp.)  and  a  decrease  in  education  spending, 
which is only partly offset by a projected increase 
in health-care spending (0.7 pps.) (Table , Table 2).  

ageing-related 
Ageing 

indicator  points  to 

The  S1 
low  fiscal 
sustainability risks. The indicator shows that the 
country  does  need  to  further  improve  its  fiscal 
position  to  reduce  its  debt  to  60%  of  GDP  by 
2070.  This  result 
is  mainly  driven  by  the 
favourable  initial  budgetary  position  (contribution 
of  -1.6 pps.).  However, this  effect  is  offset  by the 
current  distance  of  the  Greek  government  debt 
ratio  from  the  60%  reference  value,  which 
partially  reduces  the  fiscal  room  for  manoeuvre 
(1.9 pps.) (Table , Table 2).  

4  –  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,  and  to  the 
state  guarantees  granted  recently.  Contingent 
liability  risks  continue  to  stem  from  the  non-
performing  loans  in  the  banking  sector  (although 
the  share  of  non-performing  loans  witnessed  a 
sharp reduction in the previous years, it remains at 
the  highest  level  in  the  EU),  and  pending  legal 
cases  against  the  state  with  potential  budgetary 
implications  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  still  held  by  official  lenders  at  low 
interest rates and has a particularly long maturity 
structure compared with peer countries. Moreover, 
completely 
that  public  debt 
the 
denominated in euro, excludes currency risks.  

fact 

is 

higher  by  around  3.0 pps.  in  2034.  Finally,  under 
the  lower  structural  primary  balance  scenario  (i.e. 
the  projected  cumulative  deterioration  in  the  SPB 
between  2023  and  -2024  is  increased  by  50%) 
the  debt  ratio  would  be  higher  than  under  the 
baseline by 0.9 pps. in 2034. 

The  stochastic  projections  indicate  medium 
risk,  pointing  to  the  moderate  sensitivity  of 
these  projections  to  plausible  unforeseen 
events (145). These stochastic simulations indicate 
a 15% probability that the debt ratio will be higher 
in 2028 than in 2023, implying medium risks given 
the  high  debt  level.  In  addition,  the  uncertainty 
surrounding  the  baseline  debt  projections  (as 
measured by the difference between the 10th and 
90th debt distribution percentiles) is high, reaching 
around 56% of GDP in five years’ time (Graph 2).  

3  –  Long-term  fiscal  sustainability  risks 
appear overall low. This assessment is based on 
the  combination  of  two  fiscal  gap  indicators, 
capturing  the  required  fiscal  effort  to  stabilise 
debt  (S2  indicator)  and  bring  to  60%  of  GDP  (S1 
indicator) over the long term (146). This assessment 
is  driven  by  the  favourable  initial  budgetary 
position  and  projected  decline  in  ageing  costs. 
Hence, these results are conditional on the country 
maintaining a sizeable SPB over the long term, and 
duly implementing legislated pension reforms. 

indicator  points  to 

low  fiscal 
The  S2 
sustainability  risks.  The  indicator  shows  that, 
relative to the baseline, the SPB would not need to 
improve to ensure debt stabilisation over the long 

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

10,000 different shocks affecting the government’s 
budgetary position, economic growth, interest rates and 
exchange rates. This covers 80% of all the simulated debt 
paths and therefore excludes tail events. 

(146)The S2 fiscal sustainability indicator measures the 

permanent SPB adjustment in 2025 that would be required 
to stabilise public debt over an infinite horizon. It is 
complemented by the S1 indicator, which measures the 
permanent SPB adjustment in 2025 to bring the debt ratio to 
60% by 2070. The impact of the drivers of S1 and S2 may 
differ due to the infinite horizon component considered in the 
S2 indicator. For both the S1 and S2 indicators, the risk 
assessment depends on the amount of fiscal consolidation 
needed: ‘high risk’ if the required effort exceeds 6% of GDP, 
‘medium risk’ if it is between 2% and 6% of GDP, and ‘low 
risk’ if the effort is negative or below 2% of GDP. The overall 
long-term risk classification combines the risk categories 
derived from S1 and S2. S1 may notch up the risk category 
derived from S2 if it signals a higher risk than S2. See the 
2023 Debt Sustainability Monitor for further details. 

84 

 
 
 
 
 
 
 
 
 
Table A21.1:Debt Sustainability Analysis - Greece 

Source: Commission services 

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

Source: Commission services 

85 

Table 1. Baseline debt projections20212022202320242025202620272028202920302031203220332034Gross debt ratio (% of GDP)195.0172.7161.9153.9149.3144.6141.0137.1133.1129.2125.6122.2120.4118.8Changes in the ratio-12.0-22.3-10.8-8.1-4.6-4.6-3.7-3.8-4.1-3.9-3.6-3.4-1.9-1.6of whichPrimary deficit4.50.0-1.9-2.3-2.9-2.7-2.6-2.5-2.5-2.4-2.3-2.2-2.0-1.9Snowball effect-16.3-21.2-7.3-4.7-3.2-1.1-0.2-0.4-0.6-0.4-0.2-0.10.00.1Stock-flow adjustments-0.2-1.1-1.6-1.11.5-0.8-0.9-1.0-1.0-1.0-1.1-1.10.20.2Gross financing needs (% of GDP)19.413.812.17.99.410.29.711.310.711.212.811.816.314.4S1S2Overall index  (pps. of GDP)0.4-1.5of which Initial budgetary position-1.6-0.9Debt requirement1.9Ageing costs0.2-0.6of which    Pensions-0.2-1.0     Health care0.70.7     Long-term care0.00.0Education-0.2-0.3Table 2. Breakdown of the S1 and S2 sustainability gap indicators608010012014016018020022020212022202320242025202620272028202920302031203220332034Graph 1. Deterministic debt projections Historical SPB scenarioLower SPB scenarioFinancial stress scenarioAdverse 'r-g' scenarioBaseline% of GDPp10p20p40p60p80p90809010011012013014015016017018019020021020212022202320242025202620272028% of GDPGraph 2. Stochastic debt projections 2024-2028MedianBaselineBaselineHistorical SPBLower SPBAdverse 'r-g'Financial stressOverallHIGHHIGHHIGHHIGHHIGHMEDIUMDebt level (2034), % GDP118.8103.1119.7128.3121.8Debt peak year20242024202420242024Fiscal consolidation space23%21%24%23%23%Probability of debt ratio exceeding in 2028 its 2023 level15%Difference between 90th and 10th percentiles (pps. GDP)56.4Short termMedium term - Debt sustainability analysis (DSA)Long termOverall                               (S0)Overall Deterministic scenariosStochastic projectionsS2S1Overall(S1 + S2)(1)Debtlevelin2034.Green:below60%ofGDP.Yellow:between60%and90%.Red:above90%.(2)Thedebtpeakyearindicateswhetherdebtisprojectedtoincreaseoveralloverthenextdecade.Green:debtpeaksearly.Yellow:peaktowardsthemiddleoftheprojectionperiod.Red:latepeak.(3)Fiscalconsolidationspacemeasurestheshareofpastfiscalpositionsinthecountrythatweremorestringentthantheoneassumedinthebaseline.Green:highvalue,i.e.theassumedfiscalpositionisplausiblebyhistoricalstandardsandleavesroomforcorrectivemeasuresifneeded.Yellow:intermediate.Red:low.(4)Probabilityofdebtratioexceedingin2028its2023level.Green:lowprobability.Yellow:intermediate.Red:high(alsoreflectingtheinitialdebtlevel).(5)thedifferencebetweenthe90thand10thpercentilesmeasuresuncertainty,basedonthedebtdistributionunder10000differentshocks.Green,yellowandredcellsindicateincreasinguncertainty.(Forfurtherdetailson the Commission's multidimensional approach, see the 2023 Debt Sustainability Monitor)LOWHIGHLOWLOWLOW