Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Greece
Date: 2025-06-04
Institutions: European Commission, Reform and Investment Task Force
Subjects: Greece, administrative formalities, budget policy, economic policy, economic recovery, economic reform, employment policy, energy policy, social policy, stability pact

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   EUROPEAN COMMISSION  Brussels, 4.6.2025  COM(2025) 208 final  Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Greece {SWD(2025) 208 final}  
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on the economic, social, employment, structural and budgetary policies of Greece 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 121(2) and Article 148(4) thereof, 

Having regard to Regulation (EU) 2024/1263 of the European Parliament and of the Council 
of  29 April  2024  on  the  effective  coordination  of  economic  policies  and  on  multilateral 
budgetary surveillance and repealing Council Regulation (EC) No 1466/971, and in particular 
Article 3(3) thereof, 

Having  regard  to  Regulation  (EU)  No 1176/2011  of  the  European  Parliament  and  of  the 
Council  of  16 November 2011  on  the  prevention  and  correction  of  macroeconomic 
imbalances2, and in particular Article 6(1) thereof, 

Having regard to the recommendation of the European Commission, 

Having regard to the resolutions of the European Parliament, 

Having regard to the conclusions of the European Council, 

Having regard to the opinion of the Employment Committee, 

Having regard to the opinion of the Economic and Financial Committee, 

Having regard to the opinion of the Social Protection Committee, 

Having regard to the opinion of the Economic Policy Committee, 

Whereas: 

General considerations 

(1) 

Regulation (EU) 2024/1263, which entered into force on 30 April 2024, specifies the 
objectives  of  the  economic  governance  framework,  which  aims  at  promoting  sound 
and  sustainable  public  finances  and  sustainable  and  inclusive  growth  and  resilience 
through reforms and investments, and preventing excessive government deficits. The 
Regulation  stipulates  that  the  Council  and  the  Commission  conduct  multilateral 
surveillance in the context of the European Semester in accordance with the objectives 
and requirements set out in the TFEU. The European Semester includes, in particular, 
the  formulation,  and  the  surveillance  of  the  implementation  of  country-specific 
recommendations.  The  Regulation  also  promotes  national  ownership  of  fiscal  policy 
and  emphasises  its  medium-term  focus,  combined  with  more  effective  and  coherent 
enforcement. Each Member State must submit to  the Council and the Commission  a 
national  medium-term  fiscal-structural  plan,  containing  its  fiscal,  reform  and 
investment  commitments,  over  4  or  5  years,  depending  on  the  length  of the  national 

1 
2 

OJ L, 2024/1263, 30.4.2024, ELI: http://data.europa.eu/eli/reg/2024/1263/oj. 
OJ L 306, 23.11.2011, p. 25, ELI: http://data.europa.eu/eli/reg/2011/1176/oj. 

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legislative  term.  The  net  expenditure3  path  in  these  plans  has  to  comply  with  the 
Regulation’s  requirements,  including  the  requirements  to  put  or  keep  general 
government debt on a plausibly downward path by the end of the adjustment period, or 
for it to remain at prudent levels below 60% of gross domestic product (GDP), and to 
bring  and/or  maintain  the  general  government  deficit  below  the  3%-of-GDP  Treaty 
reference value over the medium term. Where a Member State commits to a relevant 
set  of  reforms  and  investments  in  accordance  with  the  criteria  set  out  in  the 
Regulation, the adjustment period may be extended by up to three years. 
Regulation  (EU)  2021/241  of  the  European  Parliament  and  of  the  Council4,  which 
established  the  Recovery  and  Resilience  Facility  (the  ‘RRF’),  entered  into  force  on 
19 February 2021.  The  RRF  provides  financial  support  to  Member  States  for 
implementing  reforms  and  investments,  delivering  a  fiscal  impulse  financed  by  the 
Union.  In  line  with  the  priorities  of  the  European  Semester  for  economic  policy 
coordination, the RRF fosters economic and social recovery while driving sustainable 
reforms and investments, in particular promoting the green and digital transitions and 
making  Member  States’  economies  more  resilient.  It  also  helps  strengthen  public 
finances  and  boost  growth  and  job  creation  in  the  medium  and  long  term,  improve 
territorial cohesion within the Union and support the continued implementation of the 
European Pillar of Social Rights. 
Regulation  (EU)  2023/435  of  the  European  Parliament  and  of  the  Council5  (the 
‘REPowerEU  Regulation’),  which  was  adopted  on  27 February 2023,  aims  to  phase 
out the Union’s dependence on Russian fossil-fuel imports. This helps achieve energy 
security  and  diversify  the  Union’s  energy  supply,  while  increasing  the  uptake  of 
renewables,  energy  storage  capacities  and  energy  efficiency.  Greece  added  a  new 
REPowerEU chapter to its national recovery and resilience plan in order to finance key 
reforms and investments that will help achieve the REPowerEU objectives. 

On  27 April  2021,  Greece  submitted  its  national  recovery  and  resilience  plan  to  the 
Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. Pursuant 
to Article 19 of that Regulation, the Commission assessed the relevance, effectiveness, 
efficiency  and  coherence  of  the  recovery  and  resilience  plan,  in  accordance  with  the 
assessment guidelines set  out  in  Annex V.  On  13 July  2021, the Council adopted its 
Implementing Decision approving the assessment of the recovery and resilience plan 
for Greece6, which was  amended under Article 18(2) on  7 December 2023 to  update 
the  maximum  financial  contribution  for  non-repayable  financial  support,  Greece  as 

Net  expenditure  as  defined  in  Article  2,  point  (2),  of  Regulation  (EU)  2024/1263:  ‘net  expenditure’ 
means government expenditure net of (i) interest expenditure; (ii) discretionary revenue measures; (iii) 
expenditure  on  programmes  of  the  Union  fully  matched  by  revenue  from  Union  funds;  (iv)  national 
expenditure  on  co-financing  of  programmes  funded  by  the  Union;  (v)  cyclical  elements  of 
unemployment benefit expenditure; and (vi) one-offs and other temporary measures. 
Regulation  (EU)  2021/241  of  the  European  Parliament  and  of  the  Council  of  12 February 2021 
establishing 
(OJ  L  57,  18.2.2021,  p. 17,  ELI: 
http://data.europa.eu/eli/reg/2021/241/oj). 
Regulation  (EU)  2023/435  of  the  European  Parliament  and  of  the  Council  of  27 February 2023 
amending Regulation (EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans 
and  amending  Regulations  (EU)  No 1303/2013,  (EU)  2021/1060  and  (EU)  2021/1755,  and  Directive 
2003/87/EC (OJ L 63, 28.2.2023, p. 1, ELI: http://data.europa. eu/eli/reg/2023/435/oj). 
Council Implementing Decision of 13 July 2021 on the approval of the assessment of the recovery and 
resilience plan for Greece (ST10152/2021). 

the  Recovery  and  Resilience  Facility 

(2) 

(3) 

(4) 

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5 

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(5) 

(6) 

(7) 

well as to include the REPowerEU chapter7. The release of instalments is conditional 
on  the  adoption  of  a  decision  by  the  Commission,  in  accordance  with  Article 24(5), 
stating  that  Greece has satisfactorily achieved the relevant  milestones and targets  set 
out in the Council Implementing Decision. Satisfactory achievement requires that the 
achievement  of  preceding  milestones  and  targets  for  the  same  reform  or  investment 
has not been reversed. 

On  21 January  2025,  the  Council,  upon  the  recommendation  of  the  Commission, 
adopted a recommendation endorsing the national medium-term fiscal-structural plan 
of Greece8. The plan was submitted in accordance with Article 11 and  Article 36(1), 
point (a), of Regulation (EU) 2024/1263, covers the period from 2025 until 2028 and 
presents a fiscal adjustment spread over four years. 

On  26 November 2024,  the  Commission  adopted  an  opinion  on  the  2025  draft 
budgetary  plan  of  Greece.  On  the  same  date,  on  the  basis  of  Regulation  (EU) 
No 1176/2011, the Commission adopted the 2025 Alert Mechanism Report, in which 
it identified Greece as one of the Member States for which an in-depth review would 
be  needed.  The  Commission  also  adopted  a  recommendation  for  a  Council 
recommendation on the economic policy of the euro area and a proposal for the 2025 
Joint  Employment  Report,  which  analyses  the  implementation  of  the  Employment 
Guidelines  and  the  principles  of  the  European  Pillar  of  Social  Rights.  The  Council 
adopted  the  Recommendation  on  the  economic  policy  of  the  euro  area9  on 
13 May 2025 and the Joint Employment Report on 10 March 2025. 

On  29 January 2025,  the  Commission  published  the  Competitiveness  Compass,  a 
strategic framework that aims to boost the EU’s global competitiveness over the next 
five  years.  It  identifies  the  three  transformative  imperatives  of  sustainable  economic 
growth: (i) innovation; (ii) decarbonisation and competitiveness; and (iii) security. To 
close  the  innovation  gap,  the  EU  aims  to  foster  industrial  innovation,  support  the 
growth of start-ups through initiatives like the EU Start-up and Scale-up Strategy, and 
promote the adoption of advanced technologies like artificial intelligence and quantum 
computing.  In  pursuit  of  a  greener  economy,  the  Commission  has  outlined  a 
comprehensive Affordable Energy Action Plan and a Clean Industrial Deal, ensuring 
that  the  shift  to  clean  energy  remains  cost-effective,  competitiveness-friendly, 
particularly  for  energy-intensive  sectors,  and  is  a  driver  for  growth.  To  reduce 
excessive dependencies and increase security, the Union is committed to strengthening 
global  trade  partnerships,  diversifying  supply  chains  and  securing  access  to  critical 
raw materials and clean energy sources. These priorities are underpinned by horizontal 
enablers, namely regulatory simplification, deepening of the single market, financing 
competitiveness and a Savings and Investments Union, promotion of skills and quality 
jobs, and better coordination of EU policies. The Competitiveness Compass is aligned 
with  the  European  Semester,  ensuring  that  Member  States’  economic  policies  are 
consistent with the Commission’s strategic objectives, creating a unified approach to 
economic governance that fosters sustainable growth, innovation and resilience across 
the Union. 

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Council Implementing Decision of 7 December 2023 amending the Implementing Decision of 13 July 
2021 on the approval of the assessment of the recovery and resilience plan for Greece (ST15831/2023). 
Council  Recommendation  of  21  January2025  endorsing  the  medium-term  fiscal-structural  plan  and 
setting the net expenditure path of Greece, OJ C/2025/661/, 10.2.2025. 
Council  Recommendation  of  13 May 2025  on  the  economic  policy  of  the  euro  area  (OJ  C, 
C/2025/2782, 22.5.2025, ELI: http://data.europa.eu/eli/C/2025/2782/oj). 

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(8) 

In  2025,  the  European  Semester  for  economic  policy  coordination  continues  to 
develop  alongside  the  implementation  of  the  RRF.  The  full  implementation  of  the 
recovery and resilience plans remains essential for delivering on the policy priorities 
under the European Semester, as the plans help effectively address all or a significant 
subset  of  challenges  identified  in  the  relevant  country-specific  recommendations 
issued  in  recent  years.  These  country-specific  recommendations  remain  equally 
relevant  for  the  assessment  of  amended  recovery  and  resilience  plans  in  accordance 
with Article 21 of Regulation (EU) 2021/241. 

(9) 

the  key  economic  policy 
The  2025  country-specific  recommendations  cover 
challenges that are not sufficiently addressed by measures included in the recovery and 
resilience  plans,  taking  into  account  the  relevant  challenges  identified  in  the  2019-
2024 country-specific recommendations. 

in 

(10)  On  4  June  2025,  the  Commission  published  the  2025  country  report  for  Greece.  It 
assessed  Greece’s  progress 
country-specific 
recommendations  and  took  stock  of  Greece’s  implementation  of  the  recovery  and 
resilience plan. Based on this analysis, the country report identified the most pressing 
challenges  Greece  is  facing.  It  also  assessed  Greece’s  progress  in  implementing  the 
European  Pillar  of  Social  Rights  and  in  achieving  the  Union  headline  targets  on 
employment, skills and poverty reduction, as well as progress in achieving the United 
Nations Sustainable Development Goals. 

addressing 

relevant 

the 

to  high  government  and  external  debt,  non-performing 

(11)  The  Commission  carried  out  an  in-depth  review  under  Article 5  of  Regulation  (EU) 
No 1176/2011  for  Greece.  The  main  findings  of  the  Commission’s  assessment  of 
macroeconomic  vulnerabilities  for  Greece  for  the  purposes  of  that  Regulation  were 
published on 13 May 202510. On 4 June 2025, the Commission concluded that Greece 
is experiencing macroeconomic imbalances. In particular, Greece faces vulnerabilities 
loans,  and 
related 
unemployment,  which  continue  to  recede,  while  the  current  account  deficit  remains 
high.  The  government  debt-to-GDP  ratio  declined  substantially  again  in  2024,  but 
despite  sustained  reductions  it  remains  the  highest  in  the  EU.  Budgetary  surpluses 
together  with  GDP  growth  are  set  to  ensure  continued  debt  reductions.  The  current 
account deficit increased marginally in 2024, well above its pre-pandemic level, and it 
is expected to remain unchanged at high levels this year and next. The net international 
investment position improved further in 2024, although it remains the most negative in 
the  EU,  and  is  not  expected  to  improve  materially  further  on  account  of  the  large 
current  account  deficits  and  of  faltering  denominator  effects.  The  labour  market 
continues  to  improve;  unemployment  is  falling  but  is  still  high.  The  stock  of 
non-performing  loans  in  banks’  balance  sheets  decreased  further  in  2024,  but  the 
resolution of non-performing loans held by servicers remained sluggish, continuing to 
burden  corporate  and  household  balance  sheets.  Greece  has  made  strong  policy 
progress in addressing its vulnerabilities. In 2024, measures were taken to improve tax 
collection  and  to  further  support  the  enforcement  of  legacy  non-performing  loans. 
Progress was achieved in the judicial sector too. Sustaining reform momentum under 
and beyond the RRP remains key to address the structural weaknesses of the economy, 
and  increasing  productivity  is  key  to  enhance  long-term  growth  prospects,  which 
would facilitate the unwinding of imbalances. 

10 

SWD(2025) 70 final. 

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Assessment of the Annual Progress Report 

(12)  On 21 January 2025 the Council recommended the following maximum growth rates 
of net expenditure for Greece: 3.7% in 2025, 3.6% in 2026, 3.1% in 2027, and 3.0% in 
2028,  which  correspond  to  the  maximum  cumulative  growth  rates  calculated  by 
reference to 2023 of 6.5% in 2025, 10.3% in 2026, 13.7% in 2027, and 17.1% in 2028. 
On 30 April 2025 Greece submitted its Annual Progress Report11, on adherence to the 
recommended  maximum  growth  rates  of  net  expenditure  and  the  implementation  of 
reforms and investments responding to the main challenges identified in the European 
Semester country-specific recommendations. The Annual Progress Report also reflects 
Greece’s  biannual  reporting  on  the  progress  made  in  achieving  its  recovery  and 
resilience plan in accordance with Article 27 of Regulation (EU) 2021/241. 

(13)  Russia’s  war  of  aggression  against  Ukraine  and  its  repercussions  constitute  an 
existential  challenge  for  the  European  Union.  The  Commission  recommended  to 
activate the national  escape clause of the Stability and Growth Pact  in  a coordinated 
manner to support the EU efforts to achieve a rapid and significant increase in defence 
spending and this proposal was welcomed by the European Council of 6 March 2025. 
Following  the  request  of  Greece  on  29  April  2025,  on  [date]  the  Council,  upon  the 
recommendation  of  the  Commission,  adopted  a  recommendation  allowing  Greece  to 
deviate  from,  and  exceed,  the  recommended  maximum  growth  rates  of  net 
expenditure12.  

(14)  Based on data validated by Eurostat13, Greece’s general government balance increased 
from a deficit of 1.4% of GDP in 2023 to a surplus of 1.3% in 2024, while the general 
government debt fell from 163.9% of GDP at the end of 2023 to 153.6% at the end of 
2024. According to the Commission’s calculations, these developments correspond to 
a net expenditure growth rate of -0.3% in 2024. In the 2025 Annual Progress Report, 
Greece  estimates  the  net  expenditure  growth  in  2024  also  at  -0.3%.  Based  on  the 
Commission’s  estimates,  the  fiscal  stance14,  which  includes  both  nationally  and  EU 
financed expenditure, was contractionary, by 1.5% of GDP, in 2024. 

(15)  According to the Annual Progress Report, the macroeconomic scenario underpinning 
the budgetary projections by Greece expects real GDP growth at 2.3% in 2025, while 
HICP  inflation  is  projected  at  2.4%  in  2025.  The  Commission  Spring  2025  Forecast 
projects real GDP to grow by 2.3% in 2025 and 2.2% in 2026, and HICP inflation to 
stand at 2.8% in 2025 and 2.3% in 2026. 

(16) 

In the Annual Progress Report, the general government surplus is expected to decrease 
to  0.1%  of  GDP  in  2025,  while  the  general  government  debt-to-GDP  ratio  is  set  to 
decrease  to  145.7%  by  the  end  of  2025.  These  developments  correspond  to  net 
expenditure growth of 4.5% in 2025. The Commission Spring 2025 Forecast projects a 

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14 

The  2025  Annual  Progress  Reports  are  available  on:  https://economy-finance.ec.europa.eu/economic-
and-fiscal-governance/stability-and-growth-pact/preventive-arm/annual-progress-reports_en. 
Council  recommendation  allowing  Greece  to  deviate  from,  and  exceed,  the  recommended  net 
expenditure path (Activation of the national escape clause), OJ…. 
Eurostat-Euro Indicators, 22.4.2025. 
The fiscal stance is defined as a measure of the annual change in the underlying budgetary position of 
the  general  government.  It  aims  to  assess  the  economic  impulse  stemming  from  fiscal  policies,  both 
those  that  are  nationally  financed  and  those  that  are  financed  by  the  EU  budget.  The  fiscal  stance  is 
measured as the difference between (i) the medium-term potential growth and (ii) the change in primary 
expenditure net of discretionary revenue measures and including expenditure financed by non-repayable 
support (grants) from the Recovery and Resilience Facility and other Union funds. 

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general government surplus of 0.7% of GDP in 2025. The decrease of the surplus in 
2025 mainly reflects the planned 1 pp reduction in the social security contribution rate 
and the increase in public sector wages as well as the new package of measures, worth 
0.5% of GDP, announced after the publication of the 2024 fiscal outcome, including a 
refund  of  one  month’s  rent  for  tenants  and  subject  to  an  income  threshold  ,  a 
permanent social benefit to vulnerable persons and a EUR 500 million annual increase 
in the national investment budget. According to the Commission’s calculations, these 
developments correspond to a net expenditure growth of 4.2% in 2025. The difference 
between the general government balance projected by the Commission and Greece can 
be attributed to higher social security contributions and lower expenditures on wages, 
pensions,  and  social  welfare  benefits  projected  in  the  Commission  Spring  2025 
Forecast. This reflects the incorporation of both the overperformance in social security 
contributions  and  the  underspending  observed  in  previous  years  into  this  year's 
forecast.  These  effects  are  partially  offset  by  the  lower  direct  tax  revenues  also 
projected  in  the  Commission  Spring  2025  Forecast.  Based  on  the  Commission’s 
estimates,  the  fiscal  stance,  which  includes  both  nationally  and  EU  financed 
expenditure, is  projected to  be expansionary, by 0.8% of GDP, in  2025. The general 
government  debt-to-GDP ratio is  set  to  decrease to  146.6% by the end of 2025. The 
decrease of the debt-to-GDP ratio in 2025 mainly reflects the growth of nominal GDP 
as well as the projected budget surplus. 

(17)  General  government  expenditure  amounting  to  1.7%  of  GDP  is  expected  to  be 
financed  by  non-repayable  support  (“grants”)  from  the  Recovery  and  Resilience 
Facility  in  2025,  compared  to  1.0%  of  GDP  in  2024,  according  to  the  Commission 
Spring 2025 Forecast. Expenditure financed by Recovery and Resilience Facility non-
repayable support enables high-quality investment and productivity-enhancing reforms 
without a direct impact on the general government balance and debt of Greece. 

(18)  General  government  defence  expenditure  in  Greece  amounted  to  2.7%  of  GDP  in 
2021,  2.6%  of  GDP  in  2022  and  2.2%  of  GDP  in  202315.  According  to  the 
Commission  Spring  2025  Forecast,  expenditure  on  defence  is  projected  at  2.4%  of 
GDP in both  2024 and 2025. This  corresponds  to  no change compared to  2024. The 
period  when  the  national  escape  clause  is  activated  (2025-2028)  allows  Greece  to 
reprioritise government  expenditure or increase government revenue so that  lastingly 
higher  defence  expenditure  would  not  endanger  fiscal  sustainability  in  the  medium 
term.  

(19)  According  to  the  Commission  Spring  2025  Forecast,  net  expenditure  in  Greece  is 
projected to grow by 4.2% in 2025 and 3.9% cumulatively in 2024 and 2025. Based on 
the Commission Spring 2025 Forecast, the net expenditure growth of Greece in 2025 
is projected to be above the recommended maximum growth rate, corresponding to a 
deviation16  of  0.2%  of  GDP  in  annual  terms.  When  considering  2024  and  2025 
together,  the  cumulative  growth  rate  of  net  expenditure  is  projected  to  be  below  the 
recommended maximum growth rate.  

(20)  The  Annual  Progress  Report  does  not  include  budgetary  projections  beyond  2025. 
Based on policy measures known at the cut-off date of the forecast, the Commission 
Spring 2025 Forecast projects a general government surplus of 1.4% of GDP in 2026. 

15 
16 

Eurostat, government expenditure by classification of functions of government (COFOG).  
From  2026  these  figures  will  appear  in  the  control  account  that  is  established  in  Article  22  of  the 
Regulation (EU) 2024/1263. 

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The  increase  in  the  surplus  in  2026  mainly  reflects  the  muted  growth  of  current 
expenditure  compared  to  revenue  growth.  These  developments  correspond  to  net 
expenditure growth of 3.1% in 2026. Based on the Commission’s estimates, the fiscal 
stance, which includes both nationally and EU financed expenditure, is projected to be 
expansionary, by 0.8% of GDP, in 2026. The general government debt-to-GDP ratio is 
projected by the Commission to decrease to 140.6% by the end of 2026. The decrease 
of the debt-to-GDP ratio in 2026 mainly reflects the growth of nominal GDP as well 
as the achievement of budget surpluses.  

Key policy challenges 

(21)  Several  important  measures  have  been  carried  out  as  part  of  the  recovery  and 
resilience  plan  to  improve  tax  compliance  and  tax  collection,  such  as  a  reform 
connecting  cash  registers  with  point-of-sale  terminals  with  the  tax  authority’s  IT 
systems  with  the  aim  of  combating  tax  evasion.  However,  there  remains  scope  for 
further action, notably to target specific sectors that are prone to high tax evasion such 
as  the  fuel  sector.  Actions  include  completing  the  legal  framework  for  the  tax 
authority’s monitoring tool of the fuel sector’s value chain, installing tracking devices 
on  container  vehicles  and  ships  transporting  fuel,  and  amending  judiciary  codes  to 
facilitate more effective enforcement of the legal framework. Furthermore, completing 
the  ongoing  organisational  reform  of  the  customs  administration  to  centralise 
inspections is expected to result in more and better targeted on-site checks. 

(22)  Under  the  recovery  and  resilience  plan,  Greece  is  taking  steps  to  complete  legal 
codifications  of  key  areas  in  its  tax  framework  including  income  taxation,  customs, 
VAT,  property  taxes  and  state  debt  collection.  A  streamlined  and  coherent  tax 
framework  would  help  make  Greece’s  tax  system  more  transparent  and  reduce  the 
compliance costs for businesses. In turn, this would reduce the disincentives to invest, 
which could help narrow the still high investment gap. Once the legal codifications are 
in place, it is important that the legal framework remains stable and is supported by the 
swift provision of administrative guidance to businesses and individual taxpayers. 

(23) 

Greece has continued to take steps to modernise its public administration, but there is 
still  scope  to  increase  efficiency.  Following  a  significant  adjustment  after  2010,  the 
size  and  cost  of  the  public  administration  has  been  broadly  aligned  with  the  EU 
average. Greece’s public sector wage bill remained broadly stable in 2024 at 10.3% of 
GDP,  slightly  above  the  EU  average  (10.2%  of  GDP).  To  sustain  this,  it  is  key  to 
continue  to  apply  the  unified  wage  grid,  while  maintaining  current  staffing  levels, 
including  for temporary  staff. The recovery and  resilience plan contains  measures to 
improve  the  effectiveness  of  the  public  administration,  including  a  multi-level 
governance framework adopted in 2023, which should improve coordination between 
central,  regional  and  local  administrations.  However,  better  coordination  is  likely  to 
materialise only once the framework is fully operational, notably once the governance 
structures,  information  systems  and  legal  codification  are  in  place,  clarifying  the 
competencies of the regional and local administration (adoption planned in 2025). 

(24)  Progress  has  been  made  to  reduce  non-performing  loans,  but  multiple  challenges 
remain  related  to  justice.  Significant  delays  routinely  faced  by  litigants  in  the 
adjudication  of  their  disputes  at  the  pre-  and  the  post-auction  stage  of  liquidation 
proceedings  are  far  longer  than  the  statutorily  mandated  deadlines  for  adjudication. 
This dissuades potential purchasers from participating in auctions and results in a high 
percentage  of  unsuccessful  auctions,  which  undermines  the  overall  efficiency  of  the 
debt resolution framework and reduces the effective supply of properties. Delays also 

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(25) 

exacerbate  the  housing  affordability  crisis,  as  many  vacant  residences  are  tied  up  in 
processes related to debt enforcement. Recently enacted procedural measures need to 
be complemented by further improvements to accelerate the adjudication of pre- and 
post-auction  disputes,  such  as  (i)  procedural  simplifications;  (ii)  measures  to  avoid 
disproportionate concentration of enforcement-related litigation in metropolitan areas; 
and (iii) a digital platform to make decisive progress on distant hearing dates. 

In accordance with Article 19(3), point (b), of Regulation (EU) 2021/241 and criterion 
2.2  of  Annex  V  to  that  Regulation,  the  recovery  and  resilience  plan  includes  an 
extensive set  of mutually reinforcing  reforms and investments  to  be implemented by 
2026.  These  are  expected  to  help  effectively  address  all  or  a  significant  subset  of 
challenges  identified  in  the  relevant  country-specific  recommendations.  Within  this 
tight timeframe, finalising the effective implementation of the recovery and resilience 
plan  including  the  REPowerEU  chapter,  is  essential  to  boost  Greece’s  long-term 
competitiveness  through  the  green  and  digital  transitions,  while  ensuring  social 
fairness. To deliver on the commitments of the recovery and resilience plan by August 
2026,  it  is  essential  for  Greece  to  accelerate  the  implementation  of  reforms  and 
investments by addressing relevant challenges. 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 as regards investment and reforms in policy areas that stretch beyond the 
remit  of  a  single  ministry.  The  systematic  involvement  of  local  and  regional 
authorities,  social  partners,  civil  society  and  other  relevant  stakeholders  remains 
essential in order to ensure broad ownership for the successful implementation of the 
recovery and resilience plan. 

(26)  The implementation  of  cohesion  policy  programmes, which encompass support from 
the  European  Regional  Development  Fund  (ERDF),  the  Just  Transition  Fund  (JTF), 
the European Social Fund Plus (ESF+) and the Cohesion Fund (CF), has accelerated in 
Greece. It is important to continue efforts to ensure the swift implementation of these 
programmes, while maximising  their impact  on the ground. Greece is  already taking 
action under its cohesion policy programmes to boost competitiveness and growth. At 
the same time, Greece continues to face challenges to boost regional competitiveness 
and  enhance  social  resilience,  to  strengthen  water  security  by  ensuring  adequate 
rainwater management and wastewater compliance, to improve availability and access 
to affordable housing, including social housing, and to accelerate the energy transition, 
including  by  enhancing  energy  storage,  integration  of  renewable  energy  sources  and 
regional  interconnectivity.  In  accordance  with  Article  18  of  Regulation  (EU) 
2021/1060, Greece is required – as part of the mid-term review of the cohesion policy 
funds  –  to  review  each  programme  taking  into  account,  among  other  things,  the 
challenges identified in the 2024 country-specific recommendations. The Commission 
proposals adopted on 1 April 202517 extend the deadline for submitting an assessment 
–  for  each  programme  –  of  the  outcome  of  the  mid-term  review  beyond  31  March 
2025.  It  also  provides  flexibilities  to  help  speed  up  programme  implementation  and 
incentives  for  Member  States  to  allocate  cohesion  policy  resources  to  five  strategic 

17 

Proposal  for  a  REGULATION  OF  THE  EUROPEAN  PARLIAMENT  AND  OF  THE  COUNCIL 
amending  Regulations  (EU)  2021/1058  and  (EU)  2021/1056  as  regards  specific  measures  to  address 
strategic challenges in the context of the mid-term review - COM(2025) 123 final. 

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priority areas of the Union, namely competitiveness in strategic technologies, defence, 
housing, water resilience and energy transition. 

(27)  The  Strategic  Technologies  for  Europe  Platform  (STEP)  provides  the  opportunity  to 
invest in a key EU strategic priority by strengthening the EU’s competitiveness. STEP 
is channelled through 11 existing EU funds. Member States can also contribute to the 
InvestEU programme supporting investments in priority areas. Greece could use these 
initiatives  to  support  the  development  or  manufacturing  of  critical  technologies, 
including clean and resource-efficient technologies. 

(28)  Beyond the economic and social challenges addressed by the recovery and resilience 
plan  and  other  EU  funds,  Greece  faces  several  additional  challenges  related  to  the 
regulatory  burden,  entry  barriers  to  product  and  service  markets,  fragmentation  of 
research  policy  and  lengthy  judicial  proceedings,  including  the  time  needed  to 
complete public procurement processes. 

(29)  As  set  in  the  Competitiveness  Compass,  all  the  EU,  national,  and  local  institutions 
must  make  a  major  effort  to  produce  simpler  rules  and  to  accelerate  the  speed  of 
administrative  procedures.  The  Commission  has  set  ambitious  goals  for  reducing 
administrative burden: by at least 25% and by at least 35% for SMEs; and has created 
new  tools  to  achieve  these  goals,  including  systematic  stress  test  of  the  stock  of  EU 
legislation and enhanced stakeholders’ dialogue. To match this ambition, Greece also 
needs  to  take  action.  80%  of  businesses  consider  the  complexity  of  administrative 
procedures  to  be  a  problem  for  their  company  when  doing  business  in  Greece18. 
Further reducing  the administrative and regulatory burden for companies  would help 
boost Greece’s competitiveness. Despite substantial progress made to digitalise public 
services  by  implementing  reforms  and  investments  under  Greece's  recovery  and 
resilience  plan,  Greece  would  further  benefit  from  streamlining  and  digitalising 
administrative processes, in  particular  for permits and licences. This  includes  greater 
accountability  of  the  public  administration,  for  example  by  setting  maximum 
processing  times,  and  effectively  enforcing  adopted  initiatives  (e.g.  permits  for  new 
renewable  energy  projects),  under 
local  and  regional 
administrations and decentralised authorities. Incomplete legislation in environmental 
licensing  remains  a drag  on investment.  For instance,  Greece has  yet  to  legislate the 
conditions under which renewables projects with a limited environmental impact can 
be licensed. Regulation to activate the lower environmental classification in business 
parks are also pending for most types of activities. The legal framework for concession 
agreements  for  infrastructure  on  the  seashore  (Law  2971/2001),  especially  for 
industrial ports, is not conducive to investment. Moreover, incomplete legislation and 
excessive  burden  in  the  permitting  process  make  it  difficult  for  Greek  companies  to 
operate lawfully under this framework. 

the  responsibility  of 

(30)  Reviewing  and  removing  the  high  entry  barriers  to  the  exercise  of  professional 
services and obstacles to new entrants to product markets is a priority for Greece. As 
evidenced by the 2023-2024 Product Market Regulation indices, Greece has one of the 
highest barriers  to  entry and to  conducting business  in  the services sector in  the EU. 
Some barriers to setting up and operating retail shops, such as permitting procedures, 
may hamper the functioning of the sector. Nearly all professional services in Greece, 
including  legal,  architectural,  and  engineering  professions,  are  subject  to  higher 
regulatory requirements than the OECD average. For instance, it has a high number of 

18 

‘Businesses' attitudes towards corruption in the EU’ Flash Report, Eurobarometer Report (April 2024). 

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reserved  activities  for  architects  and  engineers  and  high  legal  form  restrictions  for 
lawyers.  Regarding  networks,  Greece  has  recently  opened  access,  but  the  conditions 
for road transport and fixed electronic communications remain restrictive. Greece also 
scores poorly on barriers to trade facilitation on implementing measures to ensure that 
the impact on competition of new and existing regulation is assessed and minimised, 
and on ensuring public ownership does not distort competition, which are barriers to 
new entrants in product markets.   

(31)  Greece’s research policy and research funding have long been scattered across several 
ministries,  the  Hellenic  Foundation  for  Research  and  Innovation,  and  regional  R&I 
authorities. In addition to frequent changes, coordination among these bodies has been 
weak.  Access to  funding for research activities suffers from excessive administrative 
requirements, slow evaluation procedures and perceived high bureaucratic burden. On 
access  to  finance,  venture  capital  in  Greece  is  below  the  EU  average  as  a  share  of 
GDP. State-sponsored initiatives have had some success in mobilising investment for 
start-ups and the recovery and resilience plan is used to finance programmes to scale 
up businesses. Despite these measures, Greece would benefit from additional funding 
and  a  post-recovery  and  resilience  plan  R&I  strategy  to  improve  financing  for 
innovation and to support its R&I ecosystem. 

(32)  Greece  has  made  progress  to  improve  the  effectiveness  and  efficiency  of  the  justice 
system, for example by revising the judicial map in civil and criminal justice and by 
digitising  judicial  processes.  However,  the  length  of  proceedings  before  civil,  penal 
and  administrative  courts  is  still  one  of  the  highest  in  the  EU  and  causes  major 
backlogs,  which  impedes  economic  development,  business  creation  and  investment. 
This  issue  is  most  acute  in  the  enforcement  of  contractual  and  property  rights,  the 
speedy resolution  of disputes,  the effective completion  of enforcement  measures  and 
in  the  conduct  of  public  procurement  proceedings.  Further  efforts  aim  to  streamline 
the conduct of civil and commercial trials by bringing in procedural improvements in 
the  first  and  the  appellate  degree,  and  in  the  context  of  enforcement;  to  enact 
legislation  to  actively  encourage  and  extend  the  use  of  alternative  dispute  resolution 
mechanisms to revise the legal framework on the organisation of courts and the status 
of  judges  and  to  tackle  the  backlog  affecting  the  adjudication  of  cases  relating  to 
public procurement. 

(33)  Despite  having  a  growing  share  of  renewable  energy  in  its  overall  electricity 
production,  Greece  remains  highly  dependent  on  fossil  fuels.  Wholesale  electricity 
prices  are  volatile  and  remain  higher  than  the  EU  average,  partially  due  to  the  high 
degree  of  dependency  on  natural  gas  for  electricity  generation.  The  REPowerEU 
chapter  in  Greece’s  recovery  and  resilience  plan  contains  several  reforms  and 
investments,  including  increasing  storage  capacity,  that  are  expected  to  accelerate 
decarbonisation. However, further actions are warranted to reduce Greece’s fossil-fuel 
dependency,  for example by  adapting  the regulatory framework to  allow for battery-
storage  providers  to  fully  participate  in  wholesale  energy  markets.  Greece  records 
sizeable fossil-fuel subsidies with no phase-out planned by 2030. In particular, fossil-
fuel subsidies that neither tackle energy poverty in a targeted way nor genuine energy 
security concerns hinder the process of electrification and are not crucial for industrial 
competitiveness could therefore be considered a phase-out priority. In Greece, fossil-
fuel  subsidies  such  as  the  use  of  coal  and  coke  for  industrial  uses  are  economically 
inefficient  and  perpetuate  the  dependency  on  fossil  fuels.  While  phasing  out  these 
subsidies,  Greece  would  benefit  from  bringing  in  incentives  to  decarbonise  industry 
and for more climate-friendly solutions in the transport sector. Electricity networks in 

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Greece face capacity constraints as more renewable energy is added to the energy mix. 
There is scope for Greece to expand its cross-border interconnection capacity to better 
link with the internal energy market. However, lengthy permitting procedures for grid 
infrastructure remain a major bottleneck. Greece could also step up cooperation with 
neighbouring  countries  to  explore  ways  to  better  use  the  existing  capacity  for 
electricity trading. There is also scope to improve the quality of distribution networks, 
as technical and non-technical losses of electricity on the grid are well above the EU 
average. 

(34)  Greece  has  one  of  the  oldest  vehicle  fleets  in  the  EU,  which  is  a  major  reason  why 
Greece’s transport sector is one of the country’s main CO2 emitters. Greece's recovery 
and resilience plan contains several investments to promote electro-mobility, including 
replacing  old  public  transport  buses  in  Athens  and  Thessaloniki  with  electric  buses. 
However,  other  measures  such  as  replacing  old  taxis  with  electric  taxis,  have  not 
received  sufficient  market  interest  and  the  rules  to  withdraw  outdated  professional 
vehicles  are  not  properly  enforced.  Greece  would  benefit  from  drawing  up  a 
comprehensive  strategy,  including  an  investment  plan  and  reforms,  to  promote  the 
green and digital transition of the transport sector. The strategy would cover the shift 
to cleaner transport modes, including expanding the use of electric means of transport, 
and improvements to public transport by making them more accessible for people with 
disabilities, increasing the capacity of urban public transport and bringing in integrated 
online ticketing for inter-regional bus services. 

(35)  Greece is committed to investing in railway infrastructure and safety. The action plan 
on  rail  safety  and  the  masterplan  for  deployment  of  the  European  Rail  Traffic 
Management  System  (ERTMS)  set  out  steps  to  modernise  the  Greek  rail  system. 
Greece's  recovery  and  resilience  plan  contains  a  reform  to  enable  the  country’s  rail 
infrastructure manager to effectively operate a modern railway network and complete 
investments  in  key  safety  systems  and  infrastructures.  Greece  could  benefit  from 
measures  to  provide  the  new  rail  infrastructure  manager  with  sufficient  and  stable 
resources,  to  conclude  a  comprehensive  performance  contract,  and  to  accelerate  the 
roll-out of ERTMS on the railway network to increase interoperability, efficiency and 
safety. 

(36)  Greece  is  particularly  vulnerable  to  climate  change  and  related  extreme  weather 
events,  such  as  intense  droughts,  floods,  wildfires  and  heatwaves.  The  increasing 
frequency and severity of these events necessitate costly reconstruction work and the 
rehabilitation  of  affected  infrastructure.  It  would  be  beneficial  for  Greece  to  take  a 
structured  approach  to  disaster-risk  financing  and  to  take  further  policy  action  to 
increase  the  coverage  rate  of  private  insurance,  as  currently  Greece  has  one  of  the 
highest gaps in total insurance coverage for natural catastrophes in the EU. In view of 
intensified  droughts,  Greece’s  water  resources  become  increasingly  scarce  and 
polluted, which is expected to have a severe impact on the environment, the economy 
and  human  health.  The  agricultural  sector  is  by  far  the  main  consumer  of  water 
resources.  Major  challenges  remain  in  urban  wastewater  treatment,  as  local  water 
service providers run by small municipalities have neither the financial means nor the 
administrative and managerial capacities to apply optimal water management solutions 
based on the ‘consumer and polluter pays’ principle. Therefore, Greece would benefit 
from  drawing  up  a  plan  for  climate-proofing  critical  infrastructure,  including  water 
supply and demand management. Specifically on water management, this would entail 
improving the sustainability of water utility operations and investments by fostering an 

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institutional reform focusing on how to improve the capacity and accountability of the 
municipal water companies. 

(37)  Greece’s  overall  employment  performance  has  been  strong  in  recent  years,  reducing 
the  gap  with  the  EU  average.  However,  the  labour  market  participation  of  women 
remains very low, resulting in a gender employment gap that is twice the EU average. 
Greece also has a considerable share of young people not in employment, education or 
training (14.2%) and vulnerable groups such as people with disabilities, third-country 
nationals or Roma face difficulties in accessing the job market. Encouraging flexible 
working  arrangements,  increasing  childcare  services  and  improving  the  coverage  of 
long-term care can lay the ground for higher rate of people in work, especially young 
people, women and vulnerable groups. Although strategic frameworks are being put in 
place and some measures are underway, a high share of the population remains at risk 
of poverty and the effectiveness  of social transfers is  below the EU  average and has 
been  significantly  eroding  in  recent  years.  Unmet  medical  care  needs,  the  low 
provision  of  long-term  care,  high  housing  costs  and  deprivation  rates  underscore  the 
need for a robust social protection system and further policy action. The availability of 
social  and  essential  services 
limited  and  disproportionally  affects 
marginalised and remote communities. 

remains 

(38)  Beyond the economic and social challenges addressed by the recovery and resilience 
plan  and  other  EU  funds,  Greece  faces  several  additional  challenges  related  to 
education. Participation in early childhood education and care from the age of three to 
the starting age of compulsory education at primary level remains particularly low. In 
2019 (latest Eurostat data for Greece), Greece ranked last among EU Member states in 
terms  of  enrolment  rate,  while  lack  of  more  recent  data  makes  monitoring  progress 
difficult.  Participation  in  early  childhood  education  and  care  at  lower  ages  also 
remains  particularly  low.  In  2024,  28.8%  of  Greek  children  below  the  age  of  three 
attended early childhood education and care (EU 39.3%). Greece is invited to increase 
the participation rate of children under the age of three to meet the revised Barcelona 
target of 42.8% by 2030. The rate is particularly low for children at risk of poverty or 
social  exclusion.  Better  access  to  early  childhood  education  and  care  linked  to  early 
skills  development  has  been  found  to  bring  tangible  and  long-lasting  benefits,  in 
particular for disadvantaged children, and to contribute to substantial improvements in 
educational outcomes and skills development later in life. 

(39)  According  to  the  latest  OECD  Programme  for  International  Student  Assessment  in 
2022, a high share of Greek 15-year-old students does not achieve a minimum level of 
proficiency  in  basic  skills.  The  underachievement  rates  are  among  the  highest  in  the 
EU  and  have  grown  since  2018  in  all  socioeconomic  classes,  indicating  structural 
challenges in the quality and equity of the education system. In parallel, the low shares 
of  top  performers  in  basic  skills  and  creative  thinking  suggests  that  the  pool  of 
innovative talent in the country is limited. The lack of basic and digital skills among 
young people limits the prospects to develop higher skills and to reskill and upskill the 
workforce  and  restricts  Greece’s  potential  to  innovate  and  boost  competitiveness.  At 
16.6%,  adult  participation  in  training  is  much  lower  than  the  EU  average  and 
significantly  behind  Greece’s  2030  target  of  40%.  With  the  limited  effectiveness  of 
skills forecasting mechanisms, skills mismatches persist. The low performance of the 
vocational  education  and  training  system  undermines  efforts  to  close  the  wide  gap 
between the job market demand for skills and the skills promoted by the education and 
training systems. Those challenges undermining Greece’s education outcomes can be 
linked  to  limited  funding  for  education  policies,  limited  degree  of  school  autonomy, 

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(40) 

(41) 

difficulties  in  implementing  competence-based  teaching  methods  and  the  lack  of  an 
evaluation culture. Teachers still have limited career prospects, which in turn limits the 
quality of education. Addressing these challenges would also contribute to supporting 
upward  social  convergence,  in  line  with  the  Commission  services’  second-stage 
country analysis of the Social Convergence Framework19. 

In view of the close interlinkages between the economies of euro-area Member States 
and  their  collective  contribution  to  the  functioning  of  the  economic  and  monetary 
union,  in  2025,  the  Council  recommended  that  the  euro-area  Member  States  take 
action,  including  through  their  recovery  and  resilience  plans,  to  implement  the  2025 
Recommendation  on 
the  euro  area.  For  Greece, 
recommendations (2), (3) and (4) help implement the first euro-area recommendation 
on  competitiveness,  while  recommendations  (4)  and  (5)  help  implement  the  second 
euro-area recommendation on resilience, and recommendation (1) helps implement the 
third euro-area recommendation on macro-economic and financial stability set out in 
the 2025 Recommendation. 

the  economic  policy  of 

In light of the Commission’s in-depth review and its conclusions on the existence of 
imbalances,  recommendations  under  Article 6  of  Regulation  (EU)  No 1176/2011  are 
reflected  in  recommendations  (1),  (2),  (3)  and  (5).  Policies  referred  to  in 
recommendation  (1)  help  to  address  vulnerabilities  linked  to  government  debt,  the 
external  position  and  non-performing  loans.  Policies  referred  to  in  recommendations 
(2), (3) and (5) support employment, competitiveness and potential GDP growth, and 
as a result also contribute to addressing vulnerabilities linked to government debt and 
the  external  position.  Recommendations  (1),  (2),  (3)  and  (5)  contribute  to  both 
addressing  imbalances  and  implementing  the  Recommendation  on  the  economic 
policy of the euro area, in line with recital 40. 

HEREBY RECOMMENDS that Greece take action in 2025 and 2026 to: 

1. 

2. 

19 

Reinforce overall defence spending and readiness in line with the European Council 
conclusions  of  6 March  2025.  Adhere  to  the  maximum  growth  rates  of  net 
expenditure recommended by the Council on 21 January 2025, while making use of 
the  allowance  under  the  national  escape  clause  for  higher  defence  expenditure. 
Continue efforts to improve tax compliance, including through further centralisation 
and  digitalisation  of  customs  and  tax  inspections  and  improve  the  tax  system’s 
predictability.  Further  improve  the  effectiveness  and  efficiency  of  its  public 
administration by fully implementing the multi-level governance framework. Pursue 
the ongoing reduction of the stock of non-performing loans held by banks and credit 
servicers by accelerating liquidation-related court proceedings. 

In  view  of  the  applicable  deadlines  for  the  timely  completion  of  reforms  and 
investments  under  Regulation  (EU)  2021/241,  accelerate  implementation  of  the 
recovery  and  resilience  plan,  including  the  REPowerEU  chapter.  Accelerate  the 
implementation  of  cohesion  policy  programmes  (ERDF,  JTF,  ESF+,  CF),  building, 
where  appropriate,  on  the  opportunities  offered  by  the  mid-term  review.  Make 
optimal use of EU instruments, including the scope provided by the InvestEU and the 
Strategic Technologies for Europe Platform, to improve competitiveness. 

SWD(2025)95  –  Second-stage  country  analysis  on  social  convergence  in  line  with  the  Social 
Convergence  Framework  (SCF),  2025  SWD(2025)95  –  Second-stage  country  analysis  on  social 
convergence in line with the Social Convergence Framework (SCF), 2025. 

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3. 

4. 

5. 

Simplify  regulation,  improve  regulatory  tools  and  reduce  administrative  burden  for 
companies by streamlining and digitalising administrative processes, completing the 
regulatory  frameworks  for  environmental 
licensing  and  granting  concession 
agreements  on  the  seashore.  Review  and  remove  the  high  entry  barriers  to  the 
exercise of professional services and to new entrants to product markets. Improve the 
governance of the national research, development and innovation system by reducing 
the  fragmentation  of  research  policy  management  and  funding  sources,  and  by 
facilitating access  to  finance for start-ups and scale-ups, including  developing  local 
private equity and venture capital markets with state-sponsored initiatives to mobilise 
investment.  Streamline  judicial  proceedings  and  curtail  their  length  by  accelerating 
civil  proceedings,  adopting  a  code  on  alternative  dispute  resolution  mechanisms, 
revising  the  code  of  judges,  and  accelerating  the  judicial  resolution  of  disputes 
related to public procurement. 

Developing non-fossil flexibility  solutions,  including  demand-response  and storage, 
which  will  contribute  in  making  electricity  prices  more  affordable;  recalibrating 
energy taxes to  incentivise electrification;  taking concrete steps to  phase out  fossil-
fuel  subsidies  in  particular  in  the  industrial  sector;  and  increasing  the  capacity  of 
electricity  networks  by  streamlining  the  licensing  process  for  new  transmission 
networks  and  by  improving  the  quality  of  the  distribution  network  to  reduce 
technical  and  non-technical  losses.  Accelerate  the  decarbonisation  of  the  transport 
sector  under  a  comprehensive  strategy  with  reforms  and  investment  in  the  shift  to 
electric mobility, upgrading urban and inter-regional public transport, and improving 
railway  infrastructure  and  operations,  including  by  undertaking  the  short-term 
organisational reform work required and the accelerated deployment of the European 
Rail Traffic Management System on the railway network to improve interoperability, 
efficiency  and  safety.  Draw  up  a  plan  for  climate-proofing  key  infrastructure, 
including  the  water  supply;  reform  the  institutional  framework  to  improve  the 
capacity  and  accountability  of  local  water  service  providers;  and  take  steps  to 
increase private insurance coverage against natural disaster-related damages. 

Increase the rate of women and vulnerable groups in work or looking for work, and 
help more young people find work by promoting more flexible work arrangements, 
expanding formal early childhood care and education and long-term care, reinforcing 
active  labour  market  policies,  and  tackling  skill  mismatches.  Improve  educational 
outcomes by enhancing continuous professional development for teachers focused on 
competence-based approaches and aligning student assessment to these approaches, 
improving school autonomy, and expanding teacher evaluation. Address poverty and 
social  exclusion  by  further  increasing  the  effectiveness  and  efficiency  of  the  social 
protection system. 

Done at Brussels, 

For the Council 
The president 

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