COMMISSION STAFF WORKING DOCUMENT 2025 Country Report - Greece Accompanying the document 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

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 4.6.2025  SWD(2025) 208 final  COMMISSION STAFF WORKING DOCUMENT 2025 Country Report - Greece Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Greece {COM(2025) 208 final}  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC DEVELOPMENTS AND KEY POLICY 
CHALLENGES 

is  recognised  by  markets  and  credit-rating 
agencies. 

heightened 

Looking  ahead,  the  Greek  economy  is 
expected to preserve its resilience. Thanks 
to  its  limited  direct  trade  linkages  with  the 
United  States,  US  import  tariffs  are  expected 
to  have  only  a  modest  effect  on  the  Greek 
Despite 
global 
economy. 
uncertainty, 
is  set  to 
investment  growth 
remain  strong,  fuelled  by  the  absorption  of 
RRP  and  cohesion  policy  funds,  while  private 
consumption  growth  is  expected  to  be  further 
supported by solid growth in incomes. Overall, 
GDP  growth  is  expected  to  remain  above 
Greece’s long-term potential, with growth rate 
forecasts of 2.3% in 2025 and 2.2% in 2026. 
Inflation  is  set  to  start  falling  in  2025  and 
2026,  but  strong  demand  and  wage  growth 
fuelled by both minimum wage increases, and 
constrain 
labour  market  will 
tight 
a 
disinflation. 

Despite marked improvements, 
challenges remain 

Greece’s  public  debt  ratio  is  falling  but 
remains  high.  Between  2023  and  2024,  the 
public-debt-to-GDP  ratio  dropped  by  more 
than 10% of GDP to 153.6% - even though it 
remains the highest in the EU. The decline was 
driven by strong nominal GDP growth and was 
supported  by  the  significant  improvement  in 
the  budget  balance.  Thanks  to  favourable 
economic  conditions  and 
tax 
collection, the headline budget balance turned 
from 1.4% deficit in 2023 to 1.3% surplus  of 
GDP in 2024. Solid GDP growth and the strong 
fiscal  position  (i.e.  the  fact  that  government 
revenues  are  covering  spending,  so 
the 
increase 
government  does  not  need 
borrowing) are set to ensure a further decline 
in the debt ratio (see Annex 1). But despite the 

improving 

to 

Greece’s growth outlook remains 
robust 

robust  growth  momentum 

Real  GDP  growth  in  Greece  continues  to 
outpace the EU average. Greece maintained 
in  2024, 
its 
recording  real  GDP  growth  of  2.3%.  Since  the 
COVID-19  pandemic,  the  economy  has  grown 
much  more  quickly  than  the  EU  average.  This 
to  solid  private 
has  mostly  been  due 
consumption, a strong rebound in tourism and 
high  investment  growth  supported  by  the 
implementation of the recovery and resilience 
plan (RRP).  

Thanks  to  strong  growth  and  policy 
action,  Greece  is  addressing  some  long-
standing  vulnerabilities  in  its  high  levels 
of  public  and  external  debt,  non-
performing loans, and unemployment, but 
sustaining reforms is key. The Commission 
undertook  an  in-depth  review  of  the  Greek 
economy  as  part  of  the  macroeconomic 
imbalance  procedure  earlier  in  2025  (1).  Over 
the  last  decade,  Greece  has  increased  the 
resilience  of  its  economy  and  strengthened 
business  confidence  thanks  to  budgetary 
consolidation and structural  reforms,  resulting 
in:  (i)  strengthened  tax  compliance;  (ii)  action 
to  address  labour market and  product market 
inefficiencies;  and  (iii)  reforms  of  the  public 
sector.  Public  and  external  debt  ratios  have 
declined  substantially  since  2020.  In  addition, 
the  quality  of  banks’  loan  portfolios  has  been 
improving 
and  Greece’s 
unemployment  rate  fell  significantly  from  its 
peak  at  around  28%  in  mid-2013  to  below 
10% in the second half of 2024. This progress 

2016, 

since 

(1)  See ‘In-depth review of Greece 2025’ – Institutional 

Paper 309, May 2025, Brussels. 

2 

 
 
 
6.4%  of  GDP)  in  2024.  Sustained  external 
deficits  reflect  a  low  export  base  and  high 
import  dependency.  Viewed  from  a  saving-
investment  perspective, 
low  and  declining 
household  savings  have  been  only  partly 
offset  by  declining  budget  deficits.  Thanks  to 
strong  nominal  GDP  growth  and  favourable 
valuation  effects,  Greece’s  net  international 
investment position (NIIP) improved further, to 
-131.6%  of  GDP  in  2024  but  remained  the 
most negative in the EU. Driven by strong RRP-
induced  import  demand,  the  current  account 
deficit is expected to stay high and the NIIP to 
improve only slowly in 2025-2026.  

The  non-performing  loan  (NPL)  ratio  of 
Greek  banks  has  declined,  but  the  high 
stock  of  loans  held  by  ‘servicers’  weighs 
on  the  economy.  Greek  banks’  NPL  ratio 
declined  to  3.4%  in  September  2024,  thanks 
to portfolio sales and securitisations. However, 
the  stock  of  NPLs  held  by 
‘servicers’ 
(companies that manage and enforce the debt 
on  behalf  of  the  creditors)  has  increased  and 
amounted  to  EUR 74.8  billion  (31.5%  of  GDP) 
at  the  end  of  2024  due  to  additional 
securitisation  and  slow  progress 
the 
servicers’ workout processes slow (see Section 
2).  For  this  reason,  legacy  NPLs  continue  to 
hamper efficient capital allocation.  

in 

Employment  has  increased,  but  Greece’s 
reserves  of  untapped  labour  are  still 
substantial. The number of employed people 
in  Greece  increased  by  almost  2%,  82 000  in 
2024,  mostly  in  the  trade,  transportation  and 
tourism  sectors,  while  the  participation  rate 
remained  low  compared with  the  EU  average. 
The unemployment rate declined by 1 pps over 
one year to 9.5% in the last  quarter of 2024. 
This  is  the  lowest  rate  since  2009,  yet  still 
substantially  higher  than  the  EU  average  of 
5.7%.  Women  and  young  people  continue  to 
be  disproportionately  affected  by  joblessness 
(see Section 4). Conversely,  several  sectors of 
the  economy,  including  tourism,  are  reporting 
labour  shortages.  Overall,  the  Greek  jobs 
market continues to face structural challenges, 
including: (i) a skills gap; (ii) improving but still 
inadequate childcare and elderly care; and (iii) 
limited labour mobility (see Section 4).  

notable progress made in tax compliance since 
2018, the VAT compliance gap in Greece is still 
relatively  high,  providing  further  space  for 
improvement (see Section 2). 

The  evolution  of  net  expenditure 
in 
Greece  reflects  a  shift  from  moderate 
growth  in  2024  to  a  more  pronounced 
increase  in  2025,  while  remaining  within 
the  overall  fiscal  limits  recommended  by 
the  Council.  In  2024,  net  expenditure  (2)  in 
Greece  declined  by  0.3%  (see  Annex  1).  This 
decrease  is  mainly  driven  by  the  muted 
expenditure  growth  and  the  discretionary 
revenue measures to combat  tax  evasion and 
undeclared  work  whose  impact  is  deducted 
from net expenditure. In 2025, net expenditure 
is  forecast  by  the  Commission  to  grow  by 
4.2%,  which  is  above  the  maximum  growth 
rate  recommended  by  the  Council (3).  This 
development is mainly driven by higher social 
welfare  benefits,  pension,  and  public  sector 
wage 
a 
intermediate 
pronounced  acceleration 
consumption,  which is expected  to grow more 
rapidly than in 2024. Furthermore, the planned 
reduction  in  the  social  security  contribution 
is 
rate  by  1  percentage  point 
projected  to  contribute  to  this  growth  as  the 
impact  of  this  measure  is  added  to  net 
expenditure.    The  cumulative  growth  rate  of 
net  expenditure  in  2024  and  2025  taken 
together  is  projected  at  3.9%,  which  is  below 
the  maximum  rate  recommended  by  the 
Council.  

together  with 

expenditures, 

in  2025 

in 

Persistent  current  account  deficits  make 
it  difficult  for  Greece  to  reduce  external 
debt.  Declining  net  exports  led  to  a  slight 
widening  of  the  current  account  deficit  (to 

expenditure, 

(2)  Net expenditure is defined in Article 2(2) of Regulation 
(EU)  2024/1263  as  government  expenditure  net  of  (i) 
revenue 
(ii) 
interest 
measures, (iii) expenditure on programmes of the Union 
fully  matched  by  revenue  from  Union  funds,  (iv) 
national  expenditure  on  co-financing  of  programmes 
(v)  cyclical  elements  of 
funded  by 
unemployment  benefit  expenditure,  and  (vi)  one-off 
and other temporary measures. 

discretionary 

the  Union, 

(3)  Council  Recommendation  of  21  January  2025 
endorsing  the  national  medium-term  fiscal-structural 
plan  of  Greece  (OJ  C,  C/2025/661,  10.2.2025,  ELI: 
http://data.europa.eu/eli/C/2025/661/oj) 

3 

 
 
 
Box 1: 

UN Sustainable Development Goals (SDGs) 

Greece  performs  well  in  SDGs  related  to  the  green  transition  (SDGs  7,  12,  15)  and  some 
indicators  of  social  fairness  (SDGs  2,  10)  but  is  moving  away  from  the  targets  for  the  SDG 
related to peace, justice and strong institutions (SDG 16). Greece is improving on almost all SDGs 
related  to  environmental  sustainability,  although  it  needs  to  catch  up  with  the  EU  average  on 
many of them (SDGs 9, 11, 13). 

Greece is far below the EU average, but catching up, in terms of poverty (SDG 1), SDGs related to 
productivity (SDGs 4, 8, 9) and partnership for goals (SDG 17). However, progress was limited in 
the case of SDG 3 on health care (see Annex 15). 

increases  have 

led  to 
House  price 
deteriorating  housing  affordability.  Greek 
house  prices  have  increased  on  average  by 
9.3%  per  year  over  2020-2024  (compared  to 
the EU average of 4.9%) and are estimated to 
be  overvalued  by  around  20%.  Price  growth 
has  been  driven  by  a  combination  of  reviving 
domestic  and  foreign  demand  and  limited 
supply  due  to  years  of  subdued  construction 
investment. 
accelerating 
construction  activity 
(residential  building 
permits  measured  by  square  meter  of  useful 
floor  area  grew  by  31.5%  in  2024)  may 
moderate  the  growth  in  house  prices  in  the 
coming  years.  The  strong  rise  in  house  prices 
has also triggered rent increases, implying that 
affordable  housing  continues 
to  be  a 
significant challenge (see Section 4). 

parallel, 

In 

Graph 1.1: OECD Product Market Indicators, 
progress made from 2018 to 2023 

in  2023 

lowest  within  the  EU,  reaching  only  56.2%  of 
the  EU  average 
in 
purchasing  power  standards).  The  country’s 
long-term 
also 
hampered  by  the  rapid  decline  in  the  ratio  of 
working-age people to total population.  

(measured 

prospects 

growth 

are 

Moreover,  regional  disparities  remain 
pronounced.  Regional  disparities  in  terms  of 
GDP  per  capita,  especially  between  Attiki  (the 
region  around  Athens)  and  the  rest  of  the 
country, remain significant, with several Greek 
the  EU 
regions  not  converging 
average (see Section 4).  

towards 

in 

Low productivity is partly associated with 
the  structure  of  the  economy.  The  Greek 
economy  is  more  heavily  reliant  than  the  EU 
average  on  low-productivity  sectors,  such  as 
accommodation and food services. Meanwhile, 
employment 
medium-to-high-tech 
manufacturing in 2024 stood at 1.4% of total 
employment (compared with 6.0% for the EU) 
in  Attiki. 
and 
Furthermore, the Greek economy is dominated 
by micro and small enterprises (4) that tend to 
be  more 
less 
competitive (5), less capable of entering global 
markets, and less capable of investing in R&D.  

concentrated 

is  highly 

resources, 

limited 

in 

Source: OECD 

Despite  solid  growth  since  2021,  labour 
productivity  in  Greece  is  not  catching  up 
with  the  rest  of  the  EU.  Based  on  2024 
data,  Greek  per  capita  GDP  in  purchasing 
power  standards  is  the  second  lowest  in  the 
EU,  at  only  70%  of  the  EU  average.  Greece’s 
labour  productivity  per  hour  worked  was  the 

(4)  Greek  micro-  and  small  enterprises  employ  72.6%  of 
employees (vs 49.7% in the EU) and generate 50.2% of 
the total value added (vs 36.6% in the EU). 

(5)  In  2024,  the  productivity  of  micro  companies  (0-9 
people  employed)  was  estimated  at  49%  of  large 
companies  in  the  EU,  while  the  productivity  of  small 
companies (10-49 people employed) was estimated at 
63% of large companies in the EU. 

4 

01234Distortions Inducedby PublicOwnershipDistortions Inducedby StateInvolvement inBusinessOperationsRegulations ImpactEvaluationAdministrative andRegulatory BurdenBarriers in Service& Network sectorsBarriers to Tradeand InvestmentGreece - 2023Greece - 2018EU average - 2023Top 5 performers - 2023 
  
 
 
 
Box 2: 

Barriers to private and public investment  

Greece’s private investment ratio is among the lowest in the EU. The three main 
barriers contributing to this underperformance are set out in the bullet points below (6).  

•  Business  regulation,  uncertainty  and  high  energy  costs.  More  than  90%  of 

companies mention these factors as impediments to investment (see Annex 4). 

•  Labour and skills shortages. An increasing proportion of Greek companies report 

a lack of skilled staff as a barrier (see Annexes 10 and 12).  

•  Access to financing. While progress has been substantial in recent years, the share 
of financially constrained Greek companies, especially  among SMEs, is high. Access 
to non-bank financing and venture capital remains scarce (see Annex 5). 

Despite progress in recent years, barriers to efficient public spending remain:  

•  Protracted 

litigation  processes  to  address 

legal  claims  against  public 
procurement  procedures,  coupled  with  slow  licensing  and  transfer  of  property 
rights are impeding the timely completion of key infrastructure investments.  

•  Effective  coordination  among  public  bodies  is  lacking,  particularly  when  it 

comes to investments that span multiple areas and ministries.  

These  challenges  also  act  as  a  bottleneck  to  the  implementation  of  EU  funds.  The 
implementation  of  Greece’s  RRP  is  well  underway  but  faces  considerable  obstacles, 
linked to above the challenges. At present, Greece has fulfilled 35% of the milestones 
and targets in its RRP.  

It remains important to accelerate the implementation of cohesion policy programmes. 
The mid-term review offers opportunities to speed up  progress and better address EU 
strategic priorities related to competitiveness, defence, housing, water resilience and the 
energy transition. 

While Greece has signalled interest in leveraging the Strategic Technologies for Europe 
Platform (STEP) under cohesion policy, Greece can further support the development or 
manufacturing of critical technologies in the areas of digital and deep tech, clean and 
resource efficient technologies, and biotechnologies.  

Further  cost-competitiveness  gains  are 
unlikely  without  higher  productivity.  Over 
the past decade, Greece has achieved sizeable 
improvements in cost competitiveness, largely 
through  wage  cuts  between  2010-2019.  To 
sustain  competitiveness  in  the  future,  it  may 
be  beneficial  for  Greece  to  explore  ways  to 
its  productivity  and  non-cost 
increase 
competitiveness, 
its 
significant  innovation  gap  with  the  EU,  as 
relying  on  further  wage  reductions  may 
become socially unsustainable.  

including  by  reducing 

but 

challenges 

The  Greek  business  environment  has 
improved, 
remain. 
According to OECD data (7), product markets in 
Greece  became  more  competitive  in  2024  as 
administrative  and 
regulatory  burden  on 
businesses  eased  and  more  regulations  were 
subject  to  impact  evaluations  (Graph  1.1). 
However, there remains considerable potential 
to:  (i)  improve  the  regulatory  framework  for 
professional services and the retail sector; and 
(ii) facilitate trade, in part by streamlining the 
customs  system.  In  addition,  improving  the 
governance  of  state-owned  enterprises  could 

(6)  EIB Investment Survey 2024: Greece overview. 

PMR country note. 

(7)  See OECD Product Market Regulation indicators, Greece, 

5 

 
 
 
 
a 

fair 

and 

ensure 

for  private  companies 

competitive 
help 
environment 
(see 
Section 2). Moreover, fast-changing legislation 
and a complex tax system make it difficult to 
do  business  in  Greece  (see  Annex  6).  In 
addition,  despite  progress  in  recent  years, 
major  inefficiencies  remain  in  both:  (i)  the 
judicial  system  which  suffers  from  lengthy 
procedures;  and  (ii)  public  procurement  which 
is characterised by a high share of single bids 
(8). 

Climate  adaptation  has  improved,  but 
further  improvements  are  needed.  Greece 
is  highly  exposed  to  natural  hazards,  and 
suffered  substantial  economic  losses  due  to 
such  events  in  recent  years.  Despite  progress 
in  preparedness  and  adaptation  in  2024, 
building  resilience  against  natural  hazards 
(earthquakes,  wildfires, 
floods,  and  heat 
waves) remains a key challenge, and is all the 
more  urgent  given  that  Greece  has  a  large 
insurance-protection gap (see Section 3).  

Investment needs are substantial 

recent 

progress, 

Despite 
Greece’s 
investment-to-GDP  ratio  remains  the 
lowest 
in  the  EU.  Despite  substantial 
increases  over  recent  years,  the  investment 
ratio  stood  at  15.3%  of  GDP  in  2024,  almost 
6 pps below the EU  average, (see Box 2). This 
gap with the rest of the EU is largely driven by 
investment,  while  public 
low 
investment  slightly  exceeded  the  EU  average. 
Nevertheless,  Greece  needs  to  accelerate  the 
public  sector’s  absorption  capacity  to  deliver 
its RRP commitments by 2026 (9). 

corporate 

The  green  transition 
is  expected  to 
improve  competitiveness.  Greece  recorded 
a  sizeable  increase  in  the  use  of  renewable 
energy  for  power  generation  over  the  last 
decade.  However,  key  challenges  persist, 
including  limited  electricity  storage  and  grid 
capacity,  which  also  has  a  cross-border 
dimension.  Additional  investments  in  these 
areas  could  help  accelerate  decarbonisation 
and  reduce  wholesale  energy  prices,  thus 
supporting  firms’  competitiveness.  Further, 
there  is  significant  scope  to  accelerate  the 
electrification  in  the  transport  sector,  with 
recent  investment  initiatives  not  having  the 
expected impact.  

(8)  The  ratio  of  single-bid  procurements  was  55%  in 

Greece in 2024 (see Annex 6). 

(9)  The  cumulative  grant-absorption  rate  (grants  spent  by 
end  2024  compared  with  the  total  RRP  budget)  is 
estimated  at  31%,  i.e.  more  than  two  thirds  of  the 
investments are set to materialise over 2025-2026. 

6 

 
 
INNOVATION, BUSINESS ENVIRONMENT AND 
PRODUCTIVITY 

Increasing R&D performance and 
firms’ access to finance is key 

European 

Innovation 

innovation  performance 

Greece’s 
is 
improving,  but  the  country  struggles  to 
close the gap with the EU. According to the 
2024 
Scoreboard, 
Greece’s innovation performance is improving. 
Gross domestic expenditure on R&D expressed 
as a percentage of GDP (R&D intensity) is also 
increasing,  reaching  1.49%  in  2023,  but  it 
remains  below  the  European  average  of 
2.24%. At the same time, Greece is ranked as 
a ‘moderate innovator’ performing at 77.5% of 
the EU average on innovation, while innovation 
outputs  remain  below  the  EU  average  (Graph 
2.1).  Despite  steadily  increasing  since  2017, 
Greek  business  expenditure  on  research  and 
development  remains  below  the  EU  average. 
This  holds  back  innovation  diffusion  and  the 
commercialisation of research outputs. Against 
this  background,  the  recovery  and  resilience 
plan  (RRP)  includes  measures  to:  (i)  upgrade 
Greece’s  research  infrastructure;  (ii)  provide 
funding for basic and applied research with an 
emphasis  on  the  most  innovative  companies; 
and  (iii)  internationalise  the  Greek  innovation 
ecosystem (Annex 3).  

and 
can 

governance 
burden 

Improved 
lower 
administrative 
boost 
innovation  outcomes 
in  Greece.  Both 
the 
funding  sources  for 
management  of  research  policy  have  long 
been 
different 
organisations, including  several  ministries, the 
for  Research  and 
Hellenic 
Innovation,  and  regional  R&I  authorities.  In 
addition-advisory and management bodies has 

innovation  and 

fragmented 

Foundation 

across 

been  inadequate (10).  Moreover,  the  financing 
of  research  activities  is  subject  to  excessive 
administrative  requirements,  slow  evaluation 
procedures,  and  high  perceived  bureaucratic 
burden (11).  Greece  would  benefit 
from 
managing and coordinating its R&I ecosystem 
more  efficiently  by  assessing  the  policy 
measures  already  in  place.  In  this  way,  it  can 
fully  take  advantage  of  its  growing  research 
spending 
innovation 
improve 
performance (Annex 3).  

and 

its 

Graph 2.1: Innovation outputs 

Source: Patent applications filed under the Patent 
Cooperation Treaty per billion of GDP (in PPS EUR). EPO 
PATSTAT data and Eurostat GDP data 

Facilitating  access  to  finance  for  start-
ups  and  scale-ups  remains  key.  Venture 
capital  investment  in  Greece  is  far  below  the 
EU  average  as  a  percentage  of  GDP.  State-
sponsored  initiatives  have  had  some  success 
in  mobilising  investment  for  start-ups  via 
EquiFund,  and 
II. 
Equifund 
is  a  fund-of-funds  programme 
formed  by  a  public-private  partnership 
between  the  Greek  government  and  the 
European  Investment  Fund.  In  addition,  the 

its  successor  EquiFund 

(10)  OECD Economic Surveys: Greece 2024, OECD 

Publishing, Paris and EC 2023: DG R&I Support to 
Greece in the implementation of PSF country 
recommendations – Final report. 

(11)  EC 2023: DG R&I Support to Greece in the 

implementation of PSF country recommendations – 
Final report and OECD (2024), OECD Economic Surveys: 
Greece 2024, OECD Publishing, Paris. 

7 

0.01.02.03.04.05.06.07.08.0SEFIDKDENLATFREU27BESIITLUIEESHUMTLVPTCZCYEEELHRSKPLLTBGRO 
 
   
 
makes  it more  difficult  for  potential  investors 
to  make  informed  decisions.  Greece  is  now 
taking  steps  to  strengthen  evidence-based 
policymaking and is planning to start using an 
indicator  to  measure  regulatory  burden  for 
businesses  (13),  and  to  improve the  regulatory 
impact  assessment  required  ahead  of  new 
legislation.  This  is  expected  to  allow  for  a 
comprehensive  estimation  of  regulatory  and 
administrative  costs. 
It  would  also  be 
beneficial  if  Greece  took  a  more  systematic 
and 
public 
consultations. 

qualitative 

approach 

to 

the 

reviewing 

is  currently 

Independent authorities, including market 
regulators,  are  critical  for  an  effective 
and  consistent  regulatory  framework. 
Greece 
legal 
framework for its independent authorities. The 
aim  of  this  review  is  to  strengthen  the 
capacity  of  market  regulators  in  key  sectors 
(e.g.  energy  and  telecommunications).  This  in 
turn would help ensure a level playing field for 
all  companies  and  citizens.  It  would  also 
reduce  the  time  currently  required  to  issue 
regulatory decisions. 

Greece  continues  to  face  regulatory 
obstacles  in  the  granting  of  permits  and 
licences.  The legal  framework  for  concession 
agreements  for  infrastructure  in  seashore, 
the  development  of  new 
especially  for 
industrial  ports,  is  not  fit  for  investment 
activity  (14).  Moreover,  regulatory  gaps  and 
excessive  burden  in  the  permitting  process 
make  it  difficult  for  Greek  companies  to 
operate  lawfully.  In  terms  of  environmental 
licensing,  incomplete  legislation  continues  to 
weigh on investment. For instance, Greece has 
yet  to  legislate  the  conditions  under  which 
renewables 
limited 
projects  with 
environmental  impact  can  be  licensed  (15). 
Regulation to activate the lower environmental 
classification  to  be  applied  to  businesses 

a 

(13)  Bureaucracy Measurement Index (BMI). 
(14)  Law 2971/2001 concerning the granting of concession 
agreements for various types of infrastructure works in 
seashore, sea areas and sea beds of various types. 

(15)  Regulation is pending for most types of activities, 

including renewable projects. 

RRP  Loan  Facility  is  being  used  for  financing 
programmes to scale up Greek businesses. The 
equity 
is  now 
instrument  of  the  Facility 
composed  of  two  schemes  (Q-Equity  and 
the 
InnovateNow),  which 
establishment  of  venture  capital  funds  to 
invest through equity/quasi-equity instruments 
in  companies,  including  SMEs.  Nonetheless, 
despite these measures, Greece would benefit 
from  both  additional  sources  of  venture 
capital  and  a  post-RRP  strategy  to  improve 
access to financing innovation (Annex 3). 

provide 

for 

There is scope to further digitalise public 
services  for  businesses.  Greece  has  made 
solid progress, in particular since 2020 and the 
start of the COVID-19 pandemic, in increasing 
the number of online public services available 
for citizens and businesses (12). In addition, the 
Greek  RRP  includes  reforms  and  investments 
supporting  the  digital  transformation  of  the 
public  sector.  However,  Greece  could  further 
reap  the  benefits  of  public  digital  services  by 
targeting the issuance of permits and licences 
for  digitalisation.  It  is  essential  that  the 
continued rollout of digital services be coupled 
with  both  the  streamlining  of  processes  and 
the  greater  accountability  of  public  services, 
for  example  by  setting  maximum  processing 
times.  The  effective  enforcement  of  already 
adopted 
licensing 
initiatives  to  streamline 
processes  (e.g.  permits  for  new  renewable 
energy 
involving 
is 
administrations at local and regional level and 
decentralised authorities. 

projects) 

vital, 

The regulatory burden for business 
remains high and unpredictable  

A stable legal framework and cutting red 
tape  are  prerequisites  for  a  stronger 
business  environment.  Greece  is  the  EU 
Member  State  with  the  shortest lead times  in 
the  EU  for  adopting  new  laws,  and  fast-
changing  legislation  is  frequently  cited  as  a 
in  the 
key  challenge  for  doing  business 
country.  Frequent  changes 
legal 
framework  are  increasing  uncertainty,  which 

the 

to 

(12)  DESI Dashboard.  

8 

 
 
 
technologies 

established  in  business  parks  (16)  are  also 
pending  for  most  types  of  activities. 
In 
addition,  Greece’s  manufacturing  capacity 
remains 
across  all  net-zero 
integrated  policy 
modest.  Developing  an 
framework  linked  with  investment  incentives 
could  boost  its  manufacturing  in  the  area  of 
net-zero  technologies,  including  in  specific 
areas that have already seen some investment 
flows (e.g. electricity cables) (Annex 7). 

in 

recent 

reforms 

indicators 

Entry  barriers  remain  high  in  several 
in  professional 
product  markets  and 
services  (see  Annex  4).  According  to  the 
OECD’s 
product  market 
on 
regulation  (17),  despite  improvements  due  to 
years, 
regulatory 
professional services in Greece continue to be 
subject  to  heavy  regulations.  The  country’s 
barriers  to  entry  remain  at  the  highest  level 
and it has a ‘firm-exit ratio’ (i.e. the number of 
firms  that  close  in  a  time  period  compared 
with the total number of firms in that country) 
that  is  the  lowest  in  Europe.  According  to  the 
OECD’s 
for 
lawyers  and  engineers  remain  high.  Greece’s 
RRP  is  expected  to  contribute  to  more  open 
and competitive product markets, in part by: (i) 
making  it  easier  for  businesses  to  obtain  an 
electricity connection and complete a property 
transfer;  and  (ii)  improving  the  surveillance 
framework  to  ensure  a  level  playing  field 
among 
competitors.  Nonetheless,  Greece 
would benefit from both an ex post evaluation 
of  the  impact  of  these measures,  and  further 
activities  to  open  up  product  markets  by 
prioritising  those  sectors  facing  the  most 
significant regulatory distortions. 

indicators,  entry 

restrictions 

The  Greek  justice  system  is  still  battling 
with  inefficiencies  and  delays,  which  are 
detrimental to the business environment. 
Final resolution of disputes in first instance for 
civil  and  commercial  cases  reached  771  days 

(16)  Greece adopted the relevant Decisions for roads 

infrastructures, ports infrastructures, environmental 
infrastructures, and mining activities, but not for other 
types of activities. 

(17)

https://www.oecd.org/content/dam/oecd/en/topics/

policy-sub-issues/product-market-
regulation/Greece_PMR%20country%20note.pdf 

and 

tools; 

remedy 

procedures 

in 2023, and 746 in 2022, among the longest 
in  the  EU.  This  results  in  backlogs  and  is 
further  exacerbated  by:  (i)  the  low  take-up  of 
alternative 
(ii) 
dispute-resolution 
insufficient  use  of  IT;  and  (iii)  inadequate 
judicial  statistics.  Several  RRP  (and  non-RRP) 
measures, currently in progress, address these 
shortcomings, in particular: (i) the digitalisation 
project to simplify, standardise and accelerate 
judicial 
the 
interoperability  of  IT  systems;  (ii)  the  revision 
of  the  distribution  of  administrative,  civil  and 
penal  courts  across  the  territory  of  the 
country;  and  (iii)  the  creation  of  a  judicial 
police. 
be 
complemented  by  already  planned  initiatives, 
including:  (i)  a  revision  of  the  Code  of  Civil 
Procedure  to  streamline  and  accelerate  trials; 
(ii)  the  adoption  of  codified  legislation  for 
alternative  dispute-resolution  mechanisms 
(judicial  and  extra-judicial  mediation  and 
arbitration);  and  (iii)  a  revision  of  the  code  of 
judges.  

These  measures 

would 

Efforts continue to secure 
financial stability and tax 
compliance  

real-estate 

restructuring  of  non-performing 
The 
loans (NPLs) (18) held by banks and credit 
‘servicers’ is still slow. The workout of NPLs 
remains slower than planned. This is due to: (i) 
delays  and  inefficiencies  in  court  procedures; 
(ii)  a  high  level  of  unsuccessful  auctions  of 
foreclosed 
the 
mortgages  on  which  original  owners  were 
unable  to  service;  and  (iii)  delays  in  the 
registration  of  transactions  in  the  cadastre. 
Greece  could  introduce  measures  to  address 
the  currently  long  delays  and  high  level  of 
unsuccessful  auctions 
introduced 
appropriate  amendments  to  its  Code  of  Civil 
Procedure;  and  (ii)  created  a  new  electronic 
platform  to  assign  new  hearing  dates  in  the 

properties, 

it:  (i) 

if 

(18)  NPLs are bank loans that are subject to late repayment 
or are unlikely to be repayed by the borrower in full. 

9 

 
 
 
 
near  future  (replacing  remote  hearing  dates) 
to pending NPL-related enforcement cases (19). 

Greece’s  tax  framework  continues  to  be 
complex,  fragmented  and  subject  to 
frequent  changes.  Investors  perceive  the 
high  administrative  burden  needed  to  comply 
with  tax  rules  as  a  major  obstacle  to  doing 
business in the country. Greece’s RRP supports 
the  codification  of  key  areas  in  the  tax 
framework,  including  taxation,  customs,  VAT, 
property taxes and state debt collection. Once 
legal 
in  place, 
framework remains stable and is supported by 
timely  administrative  guidance  to  businesses 
and the public. This would help make Greece’s 
tax  system more  transparent  and  should  also 
reduce compliance costs for businesses. 

important  that  the 

is 

it 

has 

payments 

Electronic  payments  have  curtailed  tax 
evasion  and  increased  public  revenues, 
but  tax  evasion  remains  a  challenge  in 
specific  sectors.  The  expanding  use  of 
significantly 
electronic 
increased tax collection, especially in the retail 
sector.  Electronic  payments  have  been  an 
effective  tool  to  combat  tax  evasion,  as 
demonstrated  by  Greece’s  shrinking  VAT 
compliance  gap,  which  fell  from  25.4%  in 
2018 to 13.7% in 2022 (20). Nevertheless, this 
gap remains higher than the EU average (6%). 
Measures  that  are  part  of  Greece’s  RRP,  such 
as  the  interconnection  of  cash  machines  (and 
tax 
‘point  of  sale’ 
authority’s 
to 
contribute  to  a  further  reduction  of  the  VAT 
compliance  gap.  However,  tax  evasion  in  the 
fuel sector remains high, with recent estimates 
(21)  pointing  to  lost  revenues  (VAT  and  excise 
tax)  could  be  as  high  as  EUR  500  million  per 

the 
terminals)  with 
IT  systems,  are  expected 

(19) 75%  of  the  auctions  were  unsuccessful,  while  in 
successful  auctions  third  parties  only  acquired  about 
the  properties.  See  post-programme 
50%  of 
surveillance 
report  on  Greece,  Autumn  2024 
(https://economy-
finance.ec.europa.eu/publications/post-programme-
surveillance-report-greece-autumn-2024_en). 

(20)  European Commission, EU VAT Gap Report. 
(21)  Estimates, which includes tax losses based on fuel 
adulteration, are based amongst others on reports 
carried on by diaNEOsis and EY (2016) and more recent 
figures from the Association of Petroleum Trading 
Companies (SEEPE). 

year.  Completing  the  legal  framework  for  the 
(22)  and 
tool 
tax  authority’s  monitoring 
installing 
container 
tracking  devices  on 
vehicles  and  ships,  are  expected  to  help.  In 
addition,  Greece  could  further  strengthen  the 
enforcement  of  the 
legal  framework  by 
amending  the  judiciary  codes  and  increasing 
the capacity of the customs authority to carry 
out  physical  checks.  In  addition,  the  ongoing 
organisational 
customs 
reform  of 
administration  to  centralise  checks,  which  is 
being  supported  by  the  RRP  (23),  is  also 
expected to further strengthen tax compliance. 

the 

Steps are being taken to improve 
both the public administration and 
the management of state assets 

(EKDDA) 

Greece  is  taking  steps  to  make  its  civil 
service more effective. The National Centre 
Local 
Administration 
Public 
for 
and 
Government 
is  carrying  out  an 
extensive  capacity-building  programme,  which 
is supported by the Greek RRP. The programme 
covers many civil servants and focuses on key 
skills, 
including  digital  skills  and  public 
procurement.  The  revamped  annual  appraisal 
exercise introduced in 2022 has improved goal 
setting  for civil servants  and  made it possible 
to identify and assess civil servants’ core skills. 
The  performance-based  reward  system  that 
was  introduced  through  the  RRP  has  further 
the  civil  service  appraisal 
strengthened 
system’s  link  with  pre-set  objectives.  There  is 
scope to extend this appraisal system to cover 
(24).  The  multi-level 
more  public  entities 
governance  framework  adopted  in  2024  (part 
of the RRP) is yet to become fully operational. 
The  simplified 
local 
government to be adopted in 2025 is set to: (i) 
assign clear responsibilities and accountability 
across  central,  regional  and  local  levels;  and 
(ii) avoid overlapping mandates.  

legal  framework  for 

(22)  IT tool named ‘inflow-outflow system’. 
(23)  Integrated 
information 
commercial vehicles and containers. 

to  enable  surveillance  of 

(24)  At  the  moment,  some  220  000  of  Greece’s  590  000 

permanent civil servants are covered. 

10 

 
 
 
the 

Improved  governance  of  public-asset 
management  is  set  to  improve  both  the 
provision  of  services  and 
financial 
results.  The  recent  merger  of  the  Hellenic 
Republic  Asset  Development  Fund  (TAIPED) 
and the Hellenic Financial Stability Fund (HFSF) 
under  the  Hellenic  Corporation  of  Assets  and 
Participations  (HCAP)  is  set  to:  (i)  strengthen 
the HCAP’s capacity to ensure the provision of 
services by state-owned enterprises’ (SOEs) to 
citizens;  and  (ii)  improve  financial  results.  In 
particular, 
public-assets-development 
is  expected  to  help 
expertise  of  TAIPED 
overcome  the  long-standing  problems  of  the 
subsidiary  Public  Properties  Company  (ETAD) 
with  managing  its  portfolio  of  real  estate 
assets.  Recently,  a two-year-long  exercise  has 
been  launched  for  evaluating  up  to 36,000 
of ETAD's properties in 
their 
commercial  exploitation.  These  efforts  are 
particularly worthwhile given RRP measures to 
increase:  (i)  access  to  affordable  and  quality 
housing  for  low-income  households;  and  (ii) 
the availability of social housing for vulnerable 
groups in cooperation with the private sector.  

view 

of 

11 

 
 
DECARBONISATION, ENERGY AFFORDABILITY AND 
SUSTAINABILITY 

Greece is taking steps to make 
electricity more affordable, but 
short-term solutions are limited 

is 

on 

both 

impact 

income 

disposable 

industries.  This 

High  electricity  prices  are  having  an 
the 
adverse 
competitiveness of  Greek  businesses and 
the 
of  Greek 
households.  Greece’s  wholesale  electricity 
prices  remain  above  the  EU  average  (see 
Graph  3.1)  and  are  having  an  adverse  impact 
on  the  competitiveness  of  Greece’s  energy-
impeding  the 
intensive 
further  electrification  necessary  to  meet  the 
country’s climate objectives, although it should 
be  stressed  that  Greece  is  above  the  EU 
average  (25).  A  major  driver  of  high  electricity 
prices is the still-heavy reliance on natural gas 
for electricity generation. The electricity-to-gas 
price  ratio  remains  higher  than  the  EU 
average,  as  consumers  and  industries  pay  
three times or more for electricity than they do 
for  gas.  The  price  ratio is further  exacerbated 
by the higher level of taxes and levies imposed 
on electricity than on gas (26). 

resilient. 

is  taking  steps  to  make 

Greece 
its 
electricity  system  more  cost-effective 
is 
For 
and 
interconnecting  its  islands  to  the  mainland 
grid.  This 
is  being 
interconnection  work 
supported through the Recovery and Resilience 
Facility, and will result in the shutting down of 
heavily  polluting  and  costly  oil-fired  power 

example, 

it 

generators  on  the  islands.  In  addition,  Greece 
has  taken  steps  to  increase  price  competition 
in the retail sector, for example by creating an 
online  price-comparison  tool  and  making  it 
easier for customers to switch their electricity 
provider.  However,  the  increase  in  electricity 
bills  during  the  last  five  years  is  putting  a 
strain  on  disposable  income,  in  particular  for 
low-income  households.  Nearly  one  in  three 
Greek  households  continue  facing  arrears  on 
their  utility  bills  in  2023,  which  is  broadly  at 
the  same  level  seen  in  previous  years.  This 
level of utility-bill arrears is close to five times 
the EU average.  

Graph 3.1: Monthly average day-ahead 
wholesale electricity prices and European 
benchmark natural gas prices (Dutch (27)) 

Source: S&P Platts and ENTSO-E. 

Improving  the  flexibility  of  Greece’s 
energy system could help make electricity 
more  affordable. Greece  has  taken  steps to 
make  its  energy  sector  more  flexible,  for 

(25)  Greece’s share of electrification stands at 40% 

compared to EU average of 33%. 

(26)  Analysis is based on Eurostat data for the first half of 

2024. Consumption band is DC for electricity and D2 for 
gas, which refer to medium-sized consumers and 
provide an insight into affordability. 

(27)  The Title Transfer Facility (TTF) is a virtual trading point 
for natural gas in the Netherlands. It serves as the 
primary benchmark for European natural gas prices. 
CWE and SEE are average prices in the central-western 
European (Belgium, France, Germany, Luxembourg, the 
Netherlands and Austria) and south-eastern European 
(Bulgaria, Greece and Croatia) markets. 

12 

 
 
 
 
 
increasing 

in  place  a 

battery-storage 
by 
example 
capacity  and  putting 
legal 
framework  for  electricity  storage,  both  of 
which are measures in the Greek recovery and 
resilience  plan  (RRP).  However,  the  regulatory 
framework  does  not  yet  allow:  (i)  battery 
storage to fully participate in wholesale energy 
markets;  and  (ii)  demand  response  to  access 
the  Greek  day-ahead  and  intraday  markets. 
Firms  and  households  in  Greece  by  and  large 
do  not  use  smart  meters  or  digital  solutions 
that  would  allow  for  demand  flexibility. 
power-purchase 
However, 
agreements  (PPAs)  is  growing  significantly, 
and the use of PPAs could be further expanded 
by  developing  forward  markets  that  promote 
the  secure  and  long-term supply  of  electricity 
through:  (i)  flexibility  instruments  based  on 
PPAs; and (ii) a commitment by the industry to 
consume  clean  electricity.  Such 
initiatives 
could provide targeted support to the industry, 
which  has  actually  seen  a  steady  increase  of 
its production in the previous years, in order to 
reduce  its  reliance  on  fossil  fuels,  which  is  a 
key  contributing  factor  for  Greece’s  current 
level of electricity prices. 

interest 

in 

Limited network and storage 
capacity and low demand are 
increasing the need to curtail 
electricity generation 

in  renewable 
increase 
The  continued 
energy  sources  has  made  Greece  a  net 
electricity  exporter,  but  challenges  are 
looming.  Installed  renewables  capacity  grew 
by  an  impressive  17.5%  in  2024  and  now 
exceeds  18 GW.  With  market 
interest 
remaining strong, Greece is on track to exceed 
its 2030 target of having 27.5 GW of installed 
renewable  electricity  capacity.  In  the  future, 
careful attention will be required on a number 
of  fronts.  Firstly,  renewables  capacity  has 
increased  unevenly,  with  wind  capacity  only 
increasing  by  2%  in  2024.  Adding  more  wind 
power, including from offshore wind farms (28), 

(28)  A reform measure included in Greece’s RRP will 

designate project development areas for offshore wind 
projects in Greece. 

would  result  in  more  balanced  electricity 
production from renewables. Secondly, there is 
scope to accelerate electrification, for example 
in  the  transport  sector.  This  would  increase 
domestic  demand  and  support  a  more  cost-
effective  shift  away  from  fossil  fuels.  Finally, 
given  the  sharp  increase  in  renewables,  in 
particular  from  solar  generation,  the  need  for 
‘curtailment’  (i.e.  a  reduction  of  electricity 
generation  because  grid  and  storage  capacity 
is  insufficient  to  accommodate  all  the  extra 
electricity  production)  is  expected  to  further 
increase, at least in the short term. A clear and 
stable 
the 
curtailment will be done is therefore essential 
to  maintain  current  market 
in 
renewable energy. 

framework  setting  out  how 

interest 

in 

the 

for 

increase 

substantial 

promising 

Funding 
renewable  energy  and 
storage  projects  could  be  phased  out 
energy-efficiency 
while 
investments  could  be  further  scaled  up. 
Given 
the 
installation  of  renewable  energy  sources  in 
Greece  in  recent  years,  the  Greek  authorities 
are  now  planning  to  phase  out  state-aid 
support  schemes  for  new  renewable  energy 
projects.  Similarly,  the  growing  interest  in 
battery-storage  projects  –  motivated  by  the 
increasing  need  for  curtailment  of  electricity 
produced  from  renewable  sources  –  also 
means  that  state  aid  for  batteries  could  also 
be  phased  out.  The  Greek  RRP  contains  an 
investment  aiming 
to  strengthen  energy 
efficiency and promote the use of renewables 
for  ‘self-consumption’  (where  households  and 
businesses themselves consume the electricity 
they produce). This investment includes a plan 
to  install  more  than  100 000  solar  water 
heaters  and  heating  pumps.  Given  the  strong 
interest  shown  in  these  technologies,  there 
could  be  scope  to  expand  this measure,  while 
also  considering  upscaling  non-grant-based 
the 
financial 
‘Upgrade  My  Home’,  which  is  a  loan-based 
financial  instrument  introduced  through  the 
Greek RRP, has attracted strong initial interest.  

instruments.  For  example, 

Electricity  networks 
in  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, thereby consolidating 

13 

 
 
could  also  step  up 

its  position  as  a  net  exporter  of  electricity. 
However,  lengthy  permitting  procedures  for 
grid  infrastructure  remain  one  of  the  major 
bottlenecks  delaying  the  further  development 
of  renewable  energy  sources.  At  the  same 
time,  Greece 
its 
collaboration with neighbours to maximise the 
operational  capacity  of  existing  cross-border 
in  particular  by 
electricity 
making better use of the regional coordination 
centres. In addition, there remains a significant 
need  to  improve  the  quality  of  distribution 
technical  and  non-technical 
networks,  as 
losses (29) of electricity on the grid remain well 
above the EU average.  

infrastructures, 

Greece  records  sizeable  relevant  fossil-
fuel  subsidies  and  there  are  no  plans  to 
phase  out  these  subsidies  before  2030. 
Scaling  down  and  phasing  out  current 
subsidies  (30)  is  in  line  with  EU  commitments 
and could help to ease limits on Greece’s fiscal 
space.  The  country  could  consider  prioritising 
the  phasing  out  of  the  following  types  of 
subsidies:  (i)  fossil-fuel  subsidies  that  do  not 
address  energy poverty  in  a  targeted  way; (ii) 
fossil-fuel  subsidies  that  do  not  respond  to 
genuine  energy-security  concerns;  (iii)  fossil-
fuel  subsidies  that  hinder  electrification;  and 
(iv) fossil-fuel subsidies that are not crucial for 
it 
industrial  competitiveness.  Nevertheless, 
the 
must  be  stressed 
combination  of  national  energy  and  carbon 
taxes  and  the  EU’s  emissions  trading  system 
leads in general to disincentives for fossil-fuel 
use,  and  that  these  disincentives  are  greater 
than the EU average (Annexes 2 and 8). 

in  Greece 

that 

following 

remaining 

The 
fossil-fuel 
subsidies are particularly damaging from 
an 
environmental 
and 
perspective and Greece benefit from starting 
to  establish  incentives  for  more  climate-

economic 

(29)  Technical  losses  are  caused  by  factors  like  conductor 
resistance  and  electromagnetic  fields,  which  are 
inherent  to  the  system  and  can  be  reduced  through 
improved  grid 
infrastructure  and  efficiency.  Non-
technical  losses,  also  known  as commercial  losses,  are 
attributed to issues like metering errors, theft, and non-
payment. 

(30)  Greece’s fossil-fuel subsidies have a value of 0.79 % of 

Greece’s GDP  

friendly  solutions.  These  subsidies  all  concern 
excise 
(i) 
tax  exemptions,  namely 
petroleum  products  consumed  in  domestic 
water  navigation;  (ii)  kerosene  consumed  in 
domestic  air  traffic;  and  (iii)  the  use  of  coal 
and coke for industrial uses (Annex 8).. 

for: 

More efforts are needed to 
electrify the transport sector, 
including the rail system 

Greece’s transport sector remains one of 
the  country’s  main  emitters  amid  still-
few  electrical  transport  alternatives.  The 
share  of  GHG  emissions  originating  from  the 
transport  sector  is  32%  in  Greece,  which  is 
slightly  above the  EU  average  (29%) (31).  One 
reason  for  this  is  that  Greece  has  one  of  the 
oldest  vehicle  fleets  in  the  EU,  while  rules  to 
withdraw  outdated  professional  vehicles  (e.g. 
taxis) are not properly enforced. The Greek RRP 
contains a number of investments to promote 
electro-mobility,  including  by  replacing  old 
public 
in  Athens  and 
Thessaloniki  with  electric  buses.  However, 
other  measures,  such  as  replacing  old  taxis 
with  electric  ones  or  installing  new  electric 
charging  points  at  public  spaces,  have  not 
received the expected market interest. For this 
reason,  it  would  be  beneficial  for  Greece  to 
draw  up  a  comprehensive  strategy,  including 
an  investment  plan  and  reforms,  to  promote 
the 
the  green  and  digital 
transport sector. This would need to cover the 
electrification  of  transport  modes  and  the 
improvement  of  urban  and 
inter-regional 
public transport. 

transport  buses 

transition  of 

investing 

is  committed  to 

Greece 
in 
railway  infrastructure  and  safety.  Both 
the  action  plan  on  rail  safety,  drawn  up  after 
the  Tempi  accident  and 
the  prepared 
masterplan  for  deployment  of  the  European 
Rail  Traffic  Management  System  (ERTMS)  set 

(31)  This corresponds to data from the official EU 

inventories submitted by Greece and the EU to the 
United Nations Framework Convention on Climate 
Change (UNFCCC) concerning all transport, national and 
EU-related. 

14 

 
 
 
rail 

the 

country’s 

out steps towards modernisation the Greek rail 
system.  The  Greek  RRP  contains  a  reform  to 
enable 
infrastructure 
manager  to:  (i)  effectively  operate  a  modern 
railway network; and (ii) complete investments 
in  key  safety  systems  and  infrastructures. 
Greece  could  benefit  from  providing  the  new 
rail infrastructure manager with sufficient and 
stable  resources,  based  on:  (i)  the  conclusion 
of 
complete 
performance  contract;  and  (ii)  the  accelerated 
deployment  of  the  ERTMS  on  the  railway 
network to increase interoperability,  efficiency 
and safety.  

comprehensive 

and 

a 

Greece is taking steps to improve 
its capacity to deal with natural 
hazards 

is 

insufficient.  Greece 

Preparedness  and  adaptation  to  climate 
change  have  improved,  but  disaster-risk 
financing 
is 
particularly  vulnerable  to  climate  risks 
and  extreme  weather  events  (32).  Climate 
risk  and  the  risk  of  extreme  weather  events 
also  extend 
to  fiscal  considerations,  as 
became evident in the costly rehabilitation and 
reconstruction following Storm Daniel in 2023. 
To mitigate these costs, Greece has decided to 
allocate  EUR 600 million  per  year  to  manage 
future  natural  hazards.  Between  2006  and 
2024, a surface of 0.4% of Greece’s land area 
was  burnt  on  average  each  year,  one  of  the 
highest  rates  in  the  EU  (33).  The  increased 
frequency and severity of natural hazards puts 
pressure  on  the  country’s  public  finances, 
low  rate  of  private 
especially  given  the 
insurance  coverage  despite 
recent  policy 
actions (34). Greece (along with Italy) currently 
insurance-
has  one  of  the  highest  total 
protection-gap scores for natural catastrophes. 

This  is  due  to  the  combined  high  impact  of 
hazards  it  faces  and  the  very  low  level  of 
insurance  coverage  for  these  hazards  (in 
particular for earthquakes) (35).  

Greece has made some progress towards 
improving  its  preparedness  for  –  and 
response  to  –  natural  hazards,  including 
through  RRP  investments.  In  particular, 
Greece  adopted  a  law  (36)  in  2024  which 
addresses the multifaceted impacts of climate 
change  on:  (i)  water  management;  (ii)  forest 
(iii)  urban 
management  and  protection; 
resilience  and  policy;  (iv)  combating  illegal 
construction; and (v) energy security. Moreover, 
Greece  increased  the  penalties  for  wildland 
legislation  requiring 
arson 
citizens  to  regularly  clear  their  land  of  dry 
wood to prevent wildfires has also entered into 
force  since  December  2023.  RRP  investments 
in  civil  protection  relate to  the  setting  up  and 
the  National  Disaster  Risk 
equipping  of 
on-site 
including 
Management 
Centre, 
intensity, 
the 
management  centres.  With 
severity  and  frequency  of  natural  hazards 
likely to increase, it would also be beneficial if 
Greece  developed  a  structured  approach  to 
disaster-risk financing (37).  

in  2024,  and 

Climate-proofing key 
infrastructure and addressing 
water scarcity will be vital 

Water  scarcity,  particularly  during  the 
summer,  is  affecting  both  tourism  and 
industry  in  Greece.  As  climate  change 
intensifies  droughts,  floods  and  heatwaves, 
Greece faces challenges in managing its water 
resources.  These  challenges  include  water 
scarcity and pollution, both of which can have 

(32)  EEA, 2024, European Climate Risk Assessment 

(33)  EFFIS - European Forest Fire Information System (). 

(34)  Law 5116/2024 on Mandatory Insurance Coverage 

Against Natural Disasters and Other Provisions, which 
made it mandatory as of 2025 for large companies to 
have insurance against forest fires, floods and 
earthquakes. 

(35)  The Dashboard on Insurance Protection Gap for Natural 
Catastrophes in a Nutshell, European Insurance and 
Occupational Pensions Authority (EIOPA), 
22 November 2024. 

(36)  Law 5106/2024, OJ Α 63/01.05.2024. 

(37)  See for example ‘Approaching Disaster Risk Financing in 
a Structured Way’, Diana Radu, Directorate-General for 
Economic and  Financial Affairs, May 2024. 

15 

 
 
 
measures  to  boost  the  transition  to  a  circular 
economy  and  to  increase  recycling  rates, 
including  for  critical  raw  materials,  would 
improve  resource  efficiency  while  reducing 
waste.  Such  measures  also  have  clear 
potential to increase Greece’s competitiveness. 

severe impacts on the environment, economy, 
and human health. The agricultural sector is by 
far  Greece’s 
largest  consumer  of  water 
resources. Significant challenges remain in the 
country’s  urban  wastewater-treatment  sector. 
Local  water-service  providers  run  by  small 
municipalities  have  neither 
financial 
means  nor  the  administrative  and managerial 
capacity  to  apply  optimal  water-management 
solutions based on the ‘consumer and polluter 
pays’  principle.  The  Greek  RRP  contains 
investments  to  increase  the  availability  and 
quality  of  drinking  water  and  reduce  water 
leakage.  

the 

to 

its 

climate-proof 

Greece  would  benefit  from  drawing  up  a 
critical 
plan 
infrastructure,  including  its  water  supply 
infrastructure.  More  specifically  on  water 
supply,  this  would  entail:  (i)  strengthening  the 
sustainability  of  water-utility  operations  and 
investments; (ii) improving the management of 
water supply and demand; (iii) incentivising the 
implementation  of  net-zero  water  practices; 
and  (iv)  fostering  an 
institutional  reform 
focusing on how to improve the capacity (and 
accountability)  of  municipal  water  and 
wastewater companies. 

rate 

recycling 

in  Greece 

Turning  waste  into  resources  is  key  for 
the  transition  to  a  cleaner,  climate-
neutral  and  circular  economy  benefiting 
the  environment  and  local  communities. 
The 
is  17%, 
significantly  below  the  EU  average  of  49%. 
The  separate  collection  services  for bio-waste 
currently  deliver  only  moderate  capture  rates, 
and  landfilling  is  still  the  dominant  treatment 
method  for  municipal  waste,  at  80%.  Illegal 
dumping  rates  continue  to  be  significant.  The 
RRP  contains  a  reform  introducing  incentives 
to achieve high rates of reuse and recycling in 
line  with  the  ‘pay  as  you  throw’  principle. 
Under  this  RRP  reform,  Greece  established  an 
independent regulator responsible for ensuring 
both  the  soundness  of  waste-management-
pricing  policies  and  the  proper  functioning  of 
the  regional  and  local  waste-management 
utilities.  Greece  could  benefit  from  ensuring 
the  effective  application  of  the  landfill-tax 
reform  and  using  the  revenues  from  landfill 
taxes  to  finance:  (i)  waste  prevention;  (ii) 
separate  collection;  and  (iii)  recycling.  Further 

16 

 
SKILLS, QUALITY JOBS AND SOCIAL FAIRNESS 

Adverse demographic trends call 
for a larger and better skilled 
workforce 

in 

the 

rate, 

remains 

increase, 

including 

subdued,  with 

affects  women, 

Greece’s 
labour  market  performance 
continues  to  improve,  but  key  structural 
challenges  remain.  Although  employment 
continues 
Greek 
to 
unemployment 
long-term 
unemployment, remains among the highest in 
Greece 
the 
Unemployment 
EU. 
disproportionally 
young 
people,  and  persons  with  disabilities.  Regional 
disparities  are  particularly  pronounced  with 
weaker  labour  market  outcomes  observed  in 
northern regions (Annex 17). Meanwhile, wage 
growth 
real 
compensation  per  employee  growing  only 
moderately in 2024 (by 1.5%) after two years 
of decline. In addition, certain segments of the 
Greek  population  have  very  low  labour-force 
participation  rates  due  to persistent  obstacles 
in  accessing  the  jobs  market  (Annex  10). 
Against this background, Greece has reformed 
its policies to help people find work or training, 
and  has  deregulated  parts  of  its  employment 
law. The government has also restructured its 
public  employment  service  with  support  from 
EU  funding.  Nevertheless,  there  is  room  for 
more  effective 
initiatives  and 
reskilling 
programmes,  given  also  Greece’s  adverse 
demographic trends.  

unemployment  peaked.  The  poor  outcomes  of 
women on the jobs market, which can be seen 
in  both  younger  and  older  cohorts,  can  be 
partly  attributed  to:  (i)  the  low  availability  of 
part-time  work;  (ii)  the  insufficient  availability 
of early childcare and long-term care services; 
and 
(iii)  uncertain  and  poor  employment 
prospects.  The  gender  employment  gap  could 
be  narrowed  by:  (i)  increasing  the  availability 
of childcare and long-term care; (ii) expanding 
all-day 
(iii) 
promoting 
flexible  working  arrangements, 
including in the form of teleworking, and more 
balanced parental leave rights. 

opportunities; 

school 

and 

Graph 4.1: Key labour market indicators 

Source: Eurostat 

Greece  has  one  of  the  largest  gender 
employment gaps in the EU. Although 85% 
of  working-age  men  are  either  employed  or 
actively  seeking  employment  (in  line  with  the 
EU  average),  the  share  is  much  lower  among 
women (2 out of 3 women against 75% in the 
EU) (Annex 10). The gender employment gap in 
Greece  is  nearly  twice  as  high  as  the  EU 
average (18.8 pps vs 10.0 pps) and it has not 
narrowed  significantly  since  2013  when 

International 

Underperformance  in  basic  skills  among 
young people is a barrier to further skills 
the  OECD 
development.  Since  2012, 
Student 
for 
Programme 
Assessment  (PISA)  has  shown  a  persistent 
deterioration  in  the  performance  of  15-year-
olds in basic skills (mathematics, reading, and 
science),  which  is  currently  one  of  the  lowest 
in  the  EU  (Annex  12).  PISA  results  also  reveal 
differences  in  the  performance  of  students 

17 

 
 
 
   
depending  on  whether  they  are  in  urban  or 
rural  areas  (Annex  17).  A  lack  of  basic  skills 
among young people limits their opportunities 
to develop more advanced skills, and restricts 
Greece’s  productivity  potential.  Policy  efforts 
have  intensified  in  recent  years  to  improve 
educational  outcomes,  with  support  from  the 
RRF  and  ESF+  (Annex  12).  However,  there  is 
still  room  to:  (i)  further  increase  participation 
in early childhood education and care from the 
age of three; (ii) strengthen schools and school 
leaders’  autonomy;  (iii)  empower  teachers  by 
professional 
improving 
development; 
student 
align 
and 
assessment  to  competence-based 
learning 
approaches. 

continuous 
(iv) 

their 

At 

15.1%, 

around 

they  have 

the  necessary  skills 

levels  of  participation 

Skills  mismatches,  partly  attributed  to 
low 
in  adult 
learning, impede employment growth and 
the 
productivity. 
percentage of Greek adults that participated in 
training activities in the last 12 months is one 
of  the  lowest  in  the  EU  (Annex  12).  At  the 
same time, only around half of the population 
aged  16-74  has  at  least  basic  digital  skills, 
and  only  one  third  of  the  population  believe 
to 
that 
contribute  to  the  green  transition.  Greece  has 
taken measures to address skills mismatches, 
including  through  an  EU-funded  technical 
support  project  for  the  implementation  of  a 
national  skills  framework.  With  an  overall 
allocation of nearly EUR 2 billion, the ESF+ and 
the  European  Regional  Development  Fund  are 
helping  to  improve  Greece’s  overall  skills 
ecosystem.  In  addition,  the  RRF  is  providing 
more  than  EUR 1.8  billion  to  Greece  to:  (i) 
upgrade  the  infrastructure  of  its  general  and 
vocational  education  system;  and  (ii)  expand 
the  supply  of  lifelong  learning  opportunities 
for  unemployed  and  employed  people.    These 
investments  are  supported  by  a  thorough 
reform  of  Greece’s  national  lifelong  learning 
system  to  improve  its  quality  and  labour-
market  relevance.  This  thorough  reform  still 
remains to be fully implemented. In particular, 
Greece’s  upgraded  skills-intelligence  system 
lacks 
IT 
infrastructure  and  staffing,  while  plans  for 
individual learning accounts that link the needs 
training  participants  with  appropriate 
of 

forecasting 

sufficient 

tools, 

upskilling  programmes  have  not  yet  been 
implemented.  

Greece’s  ageing  population 
requires 
effective  support  to  take  up  jobs  and 
training.  Although  the  pace  of  population 
decline  has  recently  slowed,  Greece  has 
experienced  a  net  reduction  of  almost  half  a 
million  residents  since  2014.  Birth  rates  have 
fallen to historic lows, with only 71 000 births 
in  2023  (compared  with  over  100 000  in 
2012).    Greece’s  total  population  is  projected 
to  shrink  by  25%  between  2023  and  2070, 
one of the sharpest declines in the EU. Greece 
is  now  developing  a  10-year  action  plan  on 
demography (38) to mitigate the economic and 
social  impacts  of  these  adverse  demographic 
changes.  It  has  also  set  up  a  platform (39)  to 
connect  highly  skilled  Greeks  working  abroad 
with  businesses  operating  in  Greece.  Despite 
these  efforts,  structural  impediments  such  as 
long  delays  in  awarding  pensions  to  people 
residing 
outside  Greece  who  worked 
temporarily  in  the  country,  might  affect  the 
attractiveness of the jobs market (Annex 4). 

Working  conditions  remain  challenging 
for many workers, making it a priority to 
improve  job  quality  in  order  to  improve 
social  fairness.  The  country  has  one  of  the 
highest shares of low-wage earners in the EU 
(21.7% in 2022) and – as of 2023 - one of the 
highest  shares  of  workers  working  long  hours 
(12.4%  in  2024),  with  full-time  employment 
corresponding to an average of 42.3 hours per 
week.  In  addition,  more  than  30%  of  Greek 
employees  work  during  weekends  and  more 
than 35% stated that they usually work during 
the  evening.  Meanwhile,  collective 
labour 
small 
relatively 
cover 
agreements 
percentage  of  employees,  and  non-standard 
forms  of  employment  are  very  widespread. 
is 
Undeclared  and  under-declared  work 
favoured by  widespread self-employment and 
the  many  micro-  and  small  enterprises. 
Despite  this,  the  Greek  government  has  been 
making  a  continuous  effort  to  eliminate  the 
phenomenon  of  undeclared  and  under-
declared  work  (Annex  10).  Completing  the 
legislative codification of the labour legislation 

a 

(38)  National action plan for Demography. 
(39)  Rebrain Greece platform. 

18 

 
 
that  was  postponed  for  several  years  could 
further  help  to  increase  legal  clarity  for  both 
employers and employees.   

Map 4.1:  Risks of poverty and social exclusion 
by region, 2023 (%) 

Further improvements in living 
standards will require continued 
structural reforms         

in 

living 

regions  such  as 

Despite  Greece’s 
improved  economic 
situation,  the  risk  of  poverty  and  social 
exclusion remains high. In 2024, two thirds 
of  the  population  said  they  had  difficulty  in 
making  ends  meet,  one  of  the  highest  shares 
of  the  population  saying  this  in  the  EU.  The 
share  of  people  at risk  of  poverty,  severely 
materially  and  socially  deprived, or  living  in  a 
household with very low work intensity is high, 
particularly  among  third-country  nationals, 
Roma, and persons with disabilities. There are 
also  significant  regional  disparities,  with  the 
south  Aegean  region,  Crete,  and  the  western 
region of Epirus showing lower risks of poverty 
than  the  EU  as  a  whole  (21.0%).  Meanwhile, 
people 
the 
Peloponnese and elsewhere in western Greece 
have  some  of  the  highest  risks  of  poverty  in 
the EU (Graph 4.2). The percentage of children 
at risk of poverty or social exclusion in Greece 
also remains above the EU average (27.9% in 
Greece  vs  24.2%  in  the  EU)  and  is  not 
improving.  This  affects  children’s  access  to 
education, social care, and healthcare, with the 
intergenerational 
risk  of  perpetuating  the 
transmission  of  poverty.  EU  cohesion  policy 
funds  and  the  RRF  both  support  vulnerable 
groups in Greece, including by helping them to 
improving  the 
find  work  or  training  and 
delivery  of  social  benefits  and  services.  To 
further  mitigate  the  impact  of  poverty  on 
children,  Greece  is  also  implementing  the 
European Child Guarantee, with some progress 
in  some  areas,  such  as  early  childhood 
education  and  care,  but  gaps  remaining  in 
others,  such  as  access  to  school  meals.  To 
make progress in the fight against poverty and 
social  exclusion,  Greece  would  benefit  from 
further  boosting 
the  effectiveness  and 
efficiency of its social protection system.  

Source: Eurostat 

Energy  poverty is increasing.  The  share  of 
the  Greek  population  unable  to  keep  their 
homes adequately warm is one of the highest 
in  the  EU  (19%  vs  an  EU  average  of  9.2%  in 
2024) and has been increasing in recent years. 
This  disproportionately  affects  people  at  risk 
of  poverty,  for  whom  the  percentage  rose  to 
43.6%  in  2024  (vs  19.7%  in  the  EU  on 
average).  Similarly,  nearly  one  in  three  of  the 
population  (32%)  faced  arrears  on  utility  bills 
in 2024, a rise of 5.7 pps compared with 2021 
and almost five times the EU average (6.9%). 
Greece has drawn up a national action plan for 
the alleviation of energy poverty. The plan has 
a  target  to  reduce,  by  at  least  50%  the 
relevant indicators of energy poverty by 2025 
and  by  75%  by  2030  compared  with  2016. 
The  action  plan  includes  measures  such  as  a 
social  tariff  scheme,  heating-oil  allowances, 
and  financial  incentives  for  energy-efficiency 
upgrades.  The  RRF  further  supports  energy-
poor  households  by  funding  improvements  in 
energy  efficiency  in  residential  buildings  and 
incentivising  the  use  of  renewable  energy 
solutions. Greece has also put some structural 
measures in  place,  including  improvements to 
energy  efficiency  within  the  housing  stock, 
where  the  country  has  made  significant 
progress  over  the  last  five  years.  However, 
significant  gaps  remain  as  many  of  Greece’s 
actions  continue  to  be  focused  on  financial 
assistance  and  price  support,  rather  than  on 
addressing the root causes of energy poverty. 

High  housing  prices  disproportionately 
while 
affect 
preventing  people  from  moving  to  find 
work.  House  prices  in  Greece  have  increased 

vulnerable 

groups, 

19 

 
 
 
 
increases, 

by  around  50%  since  2015,  spurred  by  both: 
(i) reviving domestic and foreign demand; and 
(ii)  limited  supply  due  to  previous  years  of 
subdued construction investment. Sharp house 
price  increases  have  been  accompanied  by 
rent 
affordability, 
especially  for  low-income  and  single-person 
households.  This  affects  people’s  willingness 
to  move  to  a  new  place  to  find  work, 
exacerbating the problem of labour shortages, 
especially  in  areas  with  high  labour  demand, 
such as Attica or the islands (Annex 11).  

reducing 

is 

in 

rebound 

developing 

accelerating 

Although 
construction 
activity  could  help  to  moderate  housing 
price  pressures  in  the  future,  this  would 
take  time  to  have  any  effect.  Building 
permits  increased  by  31.5%  in  2024  pointing 
to  a 
construction  activity. 
Nevertheless,  any  impact  on  housing  prices 
will  take  time  and  depend  on  changes  in 
housing  demand.  To  address  housing-related 
challenges,  Greece 
an 
overarching  strategic  framework.  It  has  also 
introduced  a  wide  set  of  measures  to  curb 
housing demand for investment purposes and 
broaden the supply of housing - especially for 
renting. 
owner-occupation  and 
These  measures  have  included:  (i)  increased 
VAT  on  short-term  rentals;  (ii)  exemptions 
from  rental  taxation  for  owners  converting 
long-term  rentals;  (iii) 
their  property 
subsidies 
renovation  of  vacant 
for 
properties; and (iv) tightening-up of the Golden 
Visa  programme.  Greece  also  provides 
mortgage loans at favourable interest rates to 
low-income  families  with  support  from  the 
RRF.  A  total  of  EUR  1.4  billion  in  RRF  loans  is 
being made available for both the purchase of 
primary  residences  through  the  ‘My  Home  2’ 
programme and energy-efficiency renovations 
in owner-occupied properties.  

long-term 

into 
the 

Greece  faces  significant  challenges  in 
meeting  healthcare  needs,  which  will 
become  even  more  acute  in  the  future 
due  to  population  ageing.  Public  spending 
on healthcare in Greece is one of the lowest in 
the  EU  (5.8%  of  GDP  in  2023  vs  an  EU 
average  of  7.3%  of  GDP),  and  most  of  this 
spending  goes  on  hospital  care  and  retail 
medical goods. Meanwhile, the high proportion 
of out-of-pocket payments by patients and the 

to 

access 

healthcare, 

shortage of nurses and general practitioners is 
limiting 
further 
exacerbating  health  inequalities.  Against  this 
background,  the  percentage  of  the  Greek 
for 
population 
healthcare  increased  further  in  2024  from 
11.6% in 2023 to 12.1% in 2024, the highest 
level  in  the  EU  (EU  average:  2.5%),  with 
women being more affected than men.   

reporting  unmet  needs 

Long-term  adult  care  is  underdeveloped 
in  Greece  and  there  are  limited  formal 
services  to  ensure  adequate  coverage  in 
a coordinated manner. As also observed for 
healthcare  services,  these  challenges  in  long-
term adult care disproportionately affect rural 
and  remote  areas,  which  generally  rely  on 
insufficient  and 
low-quality  services.  The 
underdeveloped  nature  of  long-term  care  is 
considered  a  barrier  to  women’s  participation 
in  the  jobs  market.  To  address  challenges  in 
the  healthcare  sector,  Greece’s  recovery  and 
resilience  plan  includes  several  reforms  and 
investments  to  expand  healthcare  services, 
increase  the  number  of  general  practitioners, 
and 
on 
pharmaceuticals.  Greece  is  also  developing  a 
strategic  framework  for  long-term  care  with 
support  from  the  EU’s  Technical  Support 
Instrument.  However,  Greece  could  further 
improve  access  to  healthcare  and  long-term 
care  services  through:  (i)  more  efficient  and 
targeted 
resource 
allocation  (in  particular,  expanding  access  to 
primary care) including with the use of digital 
tools; and (iii) strategic workforce planning for 
healthcare and long-term care.  

expenditure 

(ii)  better 

rationalise 

financing; 

to 

boost 

upward 

Addressing  these  challenges  will  help 
social 
Greece 
convergence with its EU peers. The second-
stage  analysis 
the  Social 
Convergence  Framework  points  to  challenges 
for Greece that may affect social convergence 
in  relation  to  its  social  situation,  its  jobs 
market as well as its education and skills (40). 

line  with 

in 

(40)  European Commission, SWD(2025)95. The analysis 

relies on all the available quantitative and qualitative 
evidence and the policy response undertaken and 
planned. 

20 

 
 
KEY FINDINGS 

To  foster  competitiveness,  sustainability  and 
social fairness, Greece would benefit from: 

of  –  professional  services  and  product 
markets; 

•  accelerating the implementation of the 
RRP,  including  the  REPowerEU  chapter, 
implementing  cohesion  policy, 
swiftly 
taking  advantage  of  the  opportunities 
under  the  mid-term  review  and  making 
optimal  use  of  EU  instruments,  including 
improve 
and 
InvestEU 
competitiveness; 

STEP, 

to 

in: 

•  continuing  making  progress 

(i) 
strengthening  tax  compliance  through 
further  centralisation  and  digitalisation  of 
customs  and 
(ii) 
system’s 
improving 
predictability  by  facilitating  access  to 
applicable 
the 
codification  of 
tax  and  customs 
framework; 

rules  and  building  on 

controls;  and 

tax 
the 

tax 

the 

•  further  improving  the  effectiveness 
public 
and 
administration  by  fully  implementing  the 
multi-level governance framework; 

efficiency 

its 

of 

•  further  reducing  the  administrative 
and  regulatory  burden  for  companies 
by: 
streamlining  and  digitalising 
administrative processes; and (ii) improving 
both  regulatory  impact  assessments  and 
the capacity of market regulators; 

(i) 

licensing  by: 

•  completing  the  regulatory  framework 
(i) 
for  environmental 
creating  a  modern  regulatory  framework 
for  the  granting  of  concession  agreements 
on the seashore, in particular, for industrial 
scaling  up  net-zero 
ports;  and 
manufacturing  capacity  by  providing  an 
enabling policy framework; 

(ii) 

•  promoting  the  effective  and  efficient 
justice  system 
judicial 

functioning  of  the 
including 
proceedings;  

streamlining 

by 

•  pursuing  the  ongoing  reduction  of  the 
stock  of  non-performing  loans  held  by 
banks  and  credit  servicers  by  optimising 
liquidation-related court proceedings;  

• 

improving 
research, 
the  national 
development and innovation system by: 
(i)  addressing  the  fragmentation  of  both 
research  policy  management  and  funding 
sources;  and  (ii)  facilitating  access  to 
finance for start-ups and scale-ups;  

•  strengthening 

electricity 

network 
capacity  and  affordability  by: 
(i) 
streamlining  the  licensing  process  for  new 
transmission  networks  and  strengthening 
collaboration  with  neighbouring  countries 
through  making  better  use  of  the  regional 
coordination  centres;  (ii) 
improving  the 
quality  of  the  distribution  network;  (iii) 
improving  electricity  price  affordability  by 
developing  non-fossil  flexibility  solutions, 
such  as  demand  response  and  storage;  
and  (iv)  adjusting  the  price  signal  of 
imposed  energy 
to  encourage 
electrification; 

taxes 

•  promoting 

the  green  and  digital 
transition of the transport sector by: (i) 
drawing  up  a  comprehensive  strategy  with 
the 
reforms 
(ii) 
electrification  of 
upgrading  urban  and  inter-regional  public 
transport;  and 
railway 
infrastructure, operations and safety; 

transport  modes; 

investments 

improving 

and 

(iii) 

for 

•  reviewing  and  removing  unjustified 
restrictions on the entry to – and exercise 

•  taking  concrete  steps  to  phase  out 
fossil  fuel  subsidies  in  particular  in  the 

21 

 
 
industry 
incentives 
solutions; 

sector  and  by  establishing 
climate-friendly 

for  more 

•  drawing up a plan to: (i) climate-proof 
key  infrastructure,  including  the  water 
supply;  and  (ii)  reform  the  institutional 
framework  to  improve  both  the  capacity 
and  accountability  of  local  water-services 
providers; 

•  to support upward social convergence, 
outcomes 
educational 
improving 
through  better  continuous  professional 
development  of 
focused  on 
competence-based approaches, and related 
student assessment;  

teachers 

•  boosting  participation 

in  the 

jobs 
market – in particular of young people 
and women by: (i) promoting more flexible 
work  arrangements;  (ii)  expanding  formal 
early 
care 
childhood  education  and 
facilities;  (iii) improving  financial  incentives 
(including 
cross-border 
pensions  without  long  delays);  and  (iv) 
addressing skills mismatches; 

granting 

by 

•  addressing 

and 

poverty 

social 
exclusion  by 
the 
effectiveness  and  efficiency  of  the  social 
protection system, and by improving access 
to social and affordable housing; 

further  boosting 

•  promoting  the  cost  effectiveness  of 
the  healthcare  and  long-term  care 
systems through: (i) efficient and targeted 
financing;  (ii)  strengthening  the  role  of 
primary care and the coverage of long-term 
care  services;  and  (iii)  ensuring  strategic 
workforce planning. 

22 

 
ANNEXES 

 
 
 
 
LIST OF ANNEXES 

Fiscal 

A1.  Fiscal surveillance and debt sustainability 

A2.  Taxation 

Productivity 

A3. 

Innovation to business 

A4.  Making business easier 

A5.  Capital markets, financial stability and access to finance 

A6.  Effective institutional framework 

Sustainability 

A7.  Clean industry and climate mitigation 

A8.  Affordable energy transition 

A9.  Climate adaptation, preparedness and environment 

Fairness 

A10.  Labour market 

A11.  Social policies 

A12.  Education and skills 

A13.  Social Scoreboard 

A14.  Health and health systems 

Horizontal 

A15.  Sustainable development goals 

A16.  CSR progress and EU funds implementation 

A17.  Competitive regions 

LIST OF TABLES 

General government balance and debt 
Net expenditure growth 
Net expenditure (outturn and forecast), annual and cumulated deviations vis-à-vis the recommendation 
Defence expenditure and the national escape clause 

A1.1. 
A1.2. 
A1.3. 
A1.4. 
A1.5.  Macroeconomic developments and forecasts 
A1.6. 
A1.7. 
A1.8. 
A1.9. 

General government budgetary position 
Debt developments 
RRF – Grants 
RRF - Loans 

25 

28 

28 

35 

39 

39 

43 

48 

55 

60 

60 

66 

73 

78 

78 

82 

86 

90 

91 

95 

95 

97 

104 

29 
29 
30 
30 
31 
31 
32 
32 
33 

 
 
 
A1.10.  Projected change in age-related expenditure in 2024-2040 and 2024-2070 
A1.11.  Fiscal Governance Database Indicators 
A2.1. 
Taxation indicators 
A3.1. 
Key innovation indicators 
A4.1.  Making Business Easier: indicators. 
A5.1. 
Financial sector indicators 
A6.1. 
Selected indicators on administrative burden reduction and simplification 
A6.2. 
Key Digital Decade targets monitored through the Digital Economy and Society Index 
A7.1. 
Key clean industry and climate mitigation indicators: Greece 
A8.1. 
Key Energy Indicators 
A9.1. 
Key indicators tracking progress on climate adaptation, resilience and environment 
A13.1.  Social Scoreboard for Greece 
A14.1.  Key health indicators 
A16.1.  Selected EU funds with adopted allocations - summary data (million EUR) 
A16.2.  Summary table on 2019-2024 CSRs 
A17.1.  Selection of indicators at regional level in Greece 

LIST OF GRAPHS 

Greenhouse gas emissions in the effort sharing sectors, 2005 and 2023 

GHG emission intensity of manu-facturing and energy-intensive sectors, 2022 

Retail energy price components for household and non-household consumers, 2024 

A2.1. 
Tax revenue shares in 2023 
A2.2. 
Tax wedge for single and second earners, % of total labour costs, 2024 
A3.1. 
Total public support to business R&D 
A4.1.  Making Business Easier: selected indicators. 
A5.1. 
Net savings-investment balance 
A5.2. 
International investment position 
A5.3. 
Capital markets and financial intermediaries 
A5.4. 
Composition of NFC liabilities as a % of GDP 
A5.5. 
Composition of households' financial assets per capita and as a % of GDP 
A6.1. 
Trust in justice, regional / local authorities and in government 
A6.2. 
Indicators of Regulatory Policy and Governance (iREG) 
A6.3.  Median time for law adoption in parliament (days) 
A7.1. 
A7.2.  Manufacturing industry production: total and selected sectors, index (2021 = 100), 2017-2023 
A7.3. 
A7.4.  Municipal waste treatment 
A8.1. 
A8.2.  Monthly average day-ahead wholesale electricity prices and European bencmark natural gas prices (Dutch TTF) 
A8.3. 
A9.1. 
A9.2. 
A10.1.  Key labour market indicators 
A10.2.  Employment rate by sex (annual) 
A10.3.  Employment growth by contract type 
A11.1.  At-risk-of-poverty-or-social-exclusion (AROPE) rate and its components 
A11.2. 
A11.3.  Share of persons unable to keep house adequately warm (2023) 
A12.1.  Underachievement in mathematics by students’ socio-economic status, PISA 2012, 2018 and 2022 (%) 
A12.2.  Adult participation in learning (excluding guided on-the-job training, %) 
A14.1.  Life expectancy at birth, years 
A14.2.  Treatable mortality 
A15.1.  Progress towards the SDGs in Greece 
A16.1.  Distribution of RRF funding in Greece by policy field 
A16.2.  Distribution of cohesion policy funding across policy objectives in Greece 
A17.1.  Labour productivity per hour 

Greece's installed renewable capacity (left) and electricity generation mix (right) 
Direct dependency(1) on ecosystem services(2) of the gross value added generated by economic sector in 2022 
Investment needs and gaps in EUR million, in 2022 constant prices 

In-work poverty rate 

33 
34 
36 
42 
47 
54 
56 
57 
65 
72 
77 
90 
92 
100 
101 
104 

36 
37 
40 
44 
48 
49 
49 
51 
52 
55 
55 
56 
62 
62 
63 
64 
66 
67 
69 
75 
76 
78 
79 
81 
82 
83 
83 
86 
88 
91 
91 
95 
98 
98 
104 

26 

 
 
 
LIST OF MAPS 

A17.1.  Average speed for fixed internet, 2023 
A17.2.  Human exposure to harmful climate impacts 

106 
107 

27 

 
 
FISCAL 
ANNEX 1: FISCAL SURVEILLANCE AND DEBT SUSTAINABILITY 

This  Annex  contains  a  series  of  tables  relevant  for  the  assessment  of  the  fiscal  situation  in  Greece, 
including  how  Greece  is  responding  to  Council  recommendations  issued  under  the  reformed  Economic 
Governance Framework. 

The  reformed  framework,  which  entered  into  force  on  30  April  2024 (41),  aims  to  strengthen  debt 
sustainability  and  promote  sustainable  and  inclusive  growth  through  growth-enhancing  reforms  and 
priority investments. The medium-term fiscal-structural plans (hereinafter, MTPs or plans) constitute the 
cornerstone  of  the  framework,  setting  the  budgetary  commitment  of  Member  States  over  the  medium 
term. The latter is defined in terms of net expenditure growth, which is the single operational indicator for 
fiscal surveillance.  

Greece submitted its plan on 7 October 2024. The plan covers the period until 2024, presenting a fiscal 
adjustment  over  four  years.  On  21  January  2025,  the  Council  adopted  the  Recommendation  endorsing 
Greece’s plan (42). 

The  assessment  of  the  implementation  of  the  Council  Recommendation  endorsing  the  Greece’s  plan  is 
carried out on the basis of outturn data from Eurostat, the Commission’s Spring 2025 Forecast and taking 
into  account  the  Annual  Progress  Report  (APR)  that  Greece  submitted  on  30  April  2025.  Furthermore, 
given  Greece’s  request  to  activate  the  National  Escape  Clause (43)  in  accordance  with  the  Commission 
Communication  of  19  March  2025 (44),  the  assessment  also  considers,  as  appropriate,  the  projected 
increase in defence expenditure based on the Commission Spring 2025 Forecast.  

The Annex is organised as follows. First, developments in government deficit and debt are presented 
based  on  the  figures  reported  in  Table  A1.1.  Then,  the  assessment  of  the  implementation  of  the 
Council  Recommendation  endorsing  the  plan  follows,  based  on  the  relevant  figures  presented  in 
Tables A1.2 to A1.9, including data on defence expenditure.  

The Annex also provides information on the cost of ageing and the national fiscal framework. Fiscal 
sustainability risks are discussed in the Debt Sustainability Monitor 2024 (45). 

Developments in government deficit and debt  

Greece’s government surplus amounted to 1.3% of GDP in 2024. Based on the Commission’s Spring 2025 
Forecast,  it  is  projected  to  decrease  to  0.7%  in  2025.  The  government  debt-to-GDP  ratio  amounted  to 
153.6% at the end of 2024 and, according to the Commission, it is projected to decrease to 146.6% end-
2025.  The  debt  ratio  declined  by  almost  56  percentage  points  since  2020 thanks  to  solid  nominal  GDP 

(41)  Regulation (EU) 2024/1263 of the European Parliament and of the Council (EU) on  the effective coordination of economic policies 
and on multilateral budgetary surveillance, together with the amended Regulation (EC) No 1467/97 on the implementation of the 
excessive deficit procedure, and the amended Council Directive 2011/85/EU on the budgetary frameworks of Member States are the 
core elements of the reformed EU economic governance framework. 

(42)  OJ C, C/2025/661, 10.02.2025, ELI: http://data.europa.eu/eli/C/2025/661/oj.  

(43)  On 29 April 2025, Greece requested to the Commission and to the Council the activation of the National Escape Clause. On this 
basis, the Commission adopted a Recommendation for a Council Recommendation allowing Greece to deviate from, and exceed, the 
net expenditure path set by the Council, COM(2025)605. 

(44)  Communication  from  the  Commission  accommodating  increased  defence  expenditure  within  the  Stability  and  Growth  Pact of  19 

March 2025, C(2025) 2000 final. 

(45)  European Commission (2025) ‘Debt Sustainability Monitor 2024,’ European Economy-Institutional Papers 306. 

28 

 
 
 
 
 
 
growth  and  improving  primary  balances.  The  difference  between  the  general  government  balance 
projected by the Commission and Greece in 2025 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. 

Table A1.1:  General government balance and debt 

Source: Commission Spring 2025 Forecast (COM), Annual Progress Report (APR)  

Developments in net expenditure  

The  net  expenditure (46)  growth  of  Greece  in  2025  is  forecast  by  the  Commission (47)  to  be  above  the 
recommended  maximum,  corresponding  to  a  deviation  of  0.2%  of  GDP.  Considering  2024  and  2025 
together, the cumulative growth rate of net expenditure is projected below the recommended maximum 
cumulative  growth  rate.  The  difference  between  the  Commission's  calculations  of  the  net  expenditure 
growth  and the  estimates  of  national  authorities  is mainly  due  to  the  lower pension  and  social  welfare 
benefits projected in  the Commission  Spring  2025 Forecast,  incorporating  to the  next year  forecast  the 
underspending observed in the past. 

Table A1.2:  Net expenditure growth 

* The cumulative growth rates are calculated by reference to the base year of 2023. 
Source: Council Recommendation endorsing the national medium-term fiscal-structural plan of Greece (REC), Annual Progress 
Report (APR) and Commission's calculation based on Commission Spring 2025 Forecast (COM) 

The assessment of the net expenditure growth and in particular the comparison with the recommended 
net expenditure path considers that Greece has requested the activation of the national escape clause to 
facilitate transitioning to a higher level of defence expenditure. 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  2023 (48). 

(46)  Net expenditure is defined in Article 2(2) of Regulation (EU) 2024/1263 as 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-off and other temporary measures.  

(47)  European Commission Spring 2025 Forecast, European Economy-Institutional paper 318, May 2025. 

(48)  Eurostat, government expenditure by classification of functions of government (COFOG).  

29 

2024OutturnAPRCOMAPRCOM1General government balance% GDP1.30.10.7n.a.1.42General government gross debt% GDP153.6145.7146.6n.a.140.6Variables20252026RECAPRCOMRECAPRCOM2024n.a.-0.3%-0.3%n.a.n.a.n.a.20253.7%4.5%4.2%6.5%4.2%3.9%20263.6%n.a.3.1%10.3%n.a.7.1%AnnualCumulative*Growth rates 
 
                     
 
 
     
 
 
 
According to the Commission Spring 2025 Forecast, expenditure on defence is projected at 2.4% of GDP in 
in both 2024 and 2025. 

Table A1.3:  Net expenditure (outturn and forecast), annual and cumulated deviations vis-à-vis the 
recommendation 

*  The growth rate for 2024 is not a recommendation but serves to anchor the base, as the latest year with outturn data when 
setting the net expenditure path is year 2023.  
Source: Commission Spring 2025 Forecast and Commission's calculation  

Table A1.4:  Defence expenditure and the national escape clause 

Source:  Eurostat (COFOG), Commission Spring 2025 Forecast and Commission's calculation. 

30 

2023202420252026OutturnOutturnCOMCOM1Total expenditurebn NAC111.5114.0119.3125.22Interest expenditurebn NAC7.68.27.87.93Cyclical unemployment expenditurebn NAC0.30.10.00.04Expenditure funded by transfers from the EUbn NAC5.76.28.210.75National co-financing of EU programmesbn NAC0.70.70.80.76One-off expenditure (levels, excl. EU funded)bn NAC0.30.40.10.07=1-2-3-4-5-6Net nationally financed primary expenditure (before discretionary revenue measures, DRM)bn NAC96.898.3102.3106.08Change in net nationally financed primary expenditure (before DRM)bn NAC1.54.03.79DRM (excl. one-off revenue, incremental impact)bn NAC1.8-0.20.510=8-9Change in net nationally financed primary expenditure (after DRM) bn NAC-0.34.13.211Outturn / forecast net expenditure growth% change-0.32%4.2%3.1%12Recommended net expenditure growth*% change2.6%3.7%3.6%13=(11-12) x 7Annual deviationbn NAC-2.80.5-0.514 (cumulated from 13)Cumulated deviationbn NAC-2.8-2.3-2.815=13/17Annual balance% GDP-1.20.2-0.216=14/17Cumulated balance% GDP-1.2-0.9-1.117p.m. Nominal GDP  bn NAC225.2237.6251.3262.8Variables2021202220232024202520261Total defence expenditure% GDP2.72.62.22.42.42.52of which: gross fixed capital formation% GDP0.60.50.50.30.50.63Flexibility from increases in defence expenditure% GDP0.00.14Cumulated balance after flexibility% GDP-0.9-1.2 
 
 
        
 
 
 
          
 
 
Table A1.5:  Macroeconomic developments and forecasts 

Source: Commission Spring 2025 Forecast (COM), Annual Progress Report (APR) 

Table A1.6:  General government budgetary position 

Source: Commission Spring 2025 Forecast (COM), Annual Progress Report (APR) 

31 

2024OutturnAPRCOMAPRCOM1=7+8+9Real GDP% change2.32.32.3n.a.2.22Private consumption% change2.11.71.9n.a.1.83Government consumption expenditure% change-4.10.02.6n.a.1.14Gross fixed capital formation% change4.58.47.8n.a.7.35Exports of goods and services% change1.04.03.1n.a.3.26Imports of goods and services% change5.53.84.2n.a.3.5Contributions to real GDP growth 7- Final domestic demandpps1.32.53.0n.a.2.68- Change in inventoriespps3.20.00.0n.a.0.09- Net exportspps-2.2-0.3-0.7n.a.-0.310Output gap% pot GDP1.80.92.4n.a.2.711Employment % change1.20.71.1n.a.0.912Unemployment rate%10.19.79.3n.a.8.713Labour productivity% change1.01.51.1n.a.1.314HICP % change3.02.42.8n.a.2.315GDP deflator% change3.22.33.4n.a.2.316Compensation of employees per head% change6.04.03.8n.a.3.517Net lending/borrowing vis-à-vis the rest of the world% GDP-7.3n.a.-5.4n.a.-4.220252026Variables2024OutturnAPRCOMAPRCOM1=2+3+4+5Revenue49.348.948.1n.a.49.0of which:2- Taxes on production and imports16.916.816.0n.a.16.33- Current taxes on income, wealth, etc.11.110.711.1n.a.11.24- Social contributions13.313.013.0n.a.13.05- Other (residual)8.18.48.0n.a.8.58=9+16Expenditure 48.048.847.5n.a.47.6of which:9- Primary expenditure44.545.744.4n.a.44.6of which:10- Compensation of employees 10.310.210.1n.a.9.911- Intermediate consumption5.25.35.4n.a.5.412- Social payments19.419.419.2n.a.18.813- Subsidies1.41.31.1n.a.1.014- Gross fixed capital formation3.75.84.2n.a.3.815- Other4.53.74.4n.a.5.716- Interest expenditure3.53.13.1n.a.3.018=1-8General government balance1.30.10.7n.a.1.419=1-9Primary balance4.83.23.8n.a.4.420Cyclically adjusted balance0.4n.a.-0.6n.a.-0.121One-offs-0.20.00.0n.a.0.022=20-21Structural balance0.6-0.3-0.5n.a.-0.123=22+16Structural primary balance4.02.82.6n.a.3.0Variables (% GDP)20252026 
 
                     
 
 
 
                     
 
 
 
Table A1.7:  Debt developments 

* End of period.  
** The 'snow-ball' effect captures the impact of interest expenditure on accumulated general government debt, as well as the 
impact of real GDP growth and inflation on the general government debt-to-GDP ratio (through the denominator). The stock-flow 
adjustment includes differences in cash and accrual accounting (including leads and lags in Recovery and Resilience Facility grant 
disbursements), accumulation of financial assets, and valuation and other residual effects. 
Source: Commission Spring 2025 Forecast and Commission’s calculation (COM), Annual Progress Report (APR) 

Table A1.8:  RRF – Grants 

Source: Annual Progress Report 

32 

2024OutturnAPRCOMAPRCOM1Gross debt ratio* (% of GDP)153.6145.7146.6n.a.140.62=3+4+8Change in the ratio (pps. of GDP)-10.3-7.9-7.0n.a.-5.9Contributions**3Primary balance-4.8-3.2-3.8n.a.-4.44≈5+6+7'Snow-ball' effect-5.1-3.6-5.3n.a.-3.4of which:5- Interest expenditure3.53.13.1n.a.3.06- Real growth effect-3.5-3.3-3.3n.a.-3.17- Inflation effect-5.0-3.4-5.1n.a.-3.38'Stock-flow' adjustment-0.4-1.02.0n.a.1.820252026VariablesRevenue from RRF grants (% of GDP)20202021202220232024202520261RRF grants as included in the revenue projectionsn.a.0.20.40.71.02.13.12Cash disbursements of RRF grants from EUn.a.1.30.81.50.51.42.420202021202220232024202520263Total current expenditure0.00.10.00.20.20.40.44Gross fixed capital formation0.00.10.30.20.61.01.85Capital transfers0.00.00.10.30.30.60.96=4+5Total capital expenditure0.00.10.40.50.81.62.620202021202220232024202520267Reduction in tax revenue0.00.00.00.00.00.00.08Other costs with impact on revenue0.00.00.00.00.00.00.09Financial transactions0.00.00.00.00.00.00.0Expenditure financed by RRF grants (% of GDP)Other costs financed by RRF grants (% of GDP) 
 
                     
 
 
 
                     
 
 
Table A1.9:  RRF - Loans 

Source: Annual Progress Report 

Cost of ageing  

Total age-related spending in Greece is projected to rise from 22% of GDP in 2024 to 22.5% in 
2040  but  to  decline  to  21%  in  2070  (see  Table  A1.10).  The  overall  decrease  by  2070  is  mainly 
driven by pension spending, which more than offsets the expected increase on healthcare spending. The 
pension expenditure-to-GDP ratio would rise from 13.4% of GDP in 2024 to a peak of 14.2% in 2044 but 
decline thereafter to 12% in 2070.  

Public healthcare (49) expenditure is projected at 5.2% of GDP in 2024 (below the EU average 
of 6.6%) and is expected to increase by 0.6 pps by 2040 and by a further 0.2 pp by 2070.  

Public expenditure on long-term care (50) is projected at 0.1% of GDP in 2024 (far below the 
EU average of 1.7%) and is expected to remain broadly similar by 2040 and 2070.  

Table A1.10:Projected change in age-related expenditure in 2024-2040 and 2024-2070 

Source: 2024 Ageing Report (EC/EPC). 

(49)  Key performance characteristics, recent reforms and investments are discussed in Annex 11 ‘Health and health systems’.  

(50)  The quality and the accessibility of the long-term care system are covered in Annex 9 ‘Social policies’. 

33 

Cash flow from RRF loans projected in the Plan (% of GDP)20202021202220232024202520261Disbursements of RRF loans from EUn.a.0.90.91.71.01.41.82Repayments of RRF loans to EUn.a.0.00.00.00.00.00.020202021202220232024202520263Total current expenditure0.00.00.00.00.00.00.14Gross fixed capital formation0.00.00.00.00.00.00.05Capital transfers0.00.00.00.00.00.00.06=4+5Total capital expenditure0.00.00.00.00.00.00.020202021202220232024202520267Reduction in tax revenue0.00.00.00.00.00.00.08Other costs with impact on revenue0.00.00.00.00.00.00.09Financial transactions0.00.00.10.40.71.51.9Expenditure financed by RRF loans (% of GDP)Other costs financed by RRF loans (% of GDP)EL22.00.30.60.0-0.30.622.5ELEU24.30.50.30.4-0.30.925.2EUEL22.0-1.40.80.0-0.3-1.021.0ELEU24.30.20.60.8-0.41.325.6EUage-related expenditure 2024 (% GDP)change in 2024-2040 (pps GDP) due to:age-related expenditure 2040 (%GDP)pensionshealthcarelong-term careeducationtotalage-related expenditure 2024 (% GDP)change in 2024-2070 (pps GDP) due to:age-related expenditure 2070 (%GDP)pensionshealthcarelong-term careeducationtotal 
 
                     
 
 
  
 
 
National fiscal framework 

The Hellenic Fiscal Council (HFC) is a well-resourced Independent Fiscal Institution (IFI) with a 
fairly  wide  mandate,  but  it  could  improve  its  impact.  It  endorses  both  macroeconomic  and 
budgetary  forecasts  and  monitors  fiscal  rules  and  has  14  members  of  staff.  However,  recruitment  is 
limited to civil servants. The HFC has a legal right to full access to information but reports having issues 
with  the  timeliness  of  access.  Its  new  task  of  costing  the  elections  platforms  of  political  parties  will 
require an improvement of the legal framework governing access to information. Policy dialogue with the 
government, interactions with the parliament and outreach activities could be further developed.  

Continuous  efforts  have  been  made  to  strengthen  the  management  of  public  investments  in 
Greece.  The  national  development  plan,  launched  in  2021,  sets  out  the  rules  for  developing  projects 
financed  solely  from  national  funds  and  complements  the  planning  for  EU  cofinanced  investments  (51). 
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. In September 2024, Greece adopted a 
simplified  legislative  framework,  which  introduced,  inter  alia,  an  integrated  planning  framework  for  EU-
financed and nationally-financed investments; a rolling 10-year investment plan; mechanisms for project 
tracking,  performance  evaluation,  and  transparency  in  resource  allocation  as  well  as  digital  tools  to 
support project lifecycle management and inter-agency collaboration. 

Greece  is  particularly  vulnerable  to  climate  risks  and  extreme  weather  events.  As  of  2024, 
Greece  has  decided  to  allocate  EUR  600  million  per  year  in  their  public  investment  budget  to  manage 
natural  disasters. These funds can be  supplemented,  when relevant, by the budget  contingency reserve, 
and  supplementary  budgets  upon  Parliamentary  approval.  Other  measures  aimed  at  addressing  the 
insurance protection gap for natural catastrophes have also been taken by the Government (see Annex 9). 

Table A1.11:Fiscal Governance Database Indicators 

The Country Fiscal Rule Strength Index (C-FRSI) shows the strength of national fiscal rules aggregated at the country level based 
on i) the legal base, ii) how binding the rule is, iii) monitoring bodies, iv) correction mechanisms, and v) resilience to shocks. The 
Medium-Term Budgetary Framework Index (MTBFI) shows the strength of the national MTBF based on i) coverage of the 
targets/ceilings included in the national medium-term fiscal plans; ii) connectedness between these targets/ceilings and the 
annual budgets; iii) involvement of the national parliament in the preparation of the plans; iv) involvement of independent fiscal 
institutions in their preparation; and v) their level of detail. A higher score is associated with higher rule and MTBF strength. 
Source: Fiscal Governance Database 

(51)  Belu Manescu, C. (2024) “The Planning of Public Investments in the EU Member States: Long-Term Strategy, Selection and 

Budgeting Issues”, ECFIN Discussion Paper no 2013. 

34 

2023GreeceEU AverageCountry Fiscal Rule Strength Index (C-FRSI)11.2314.52Medium-Term Budgetary Framework Index (MTBFI)0.870.73 
 
     
 
 
 
 
 
ANNEX 2: TAXATION 

This  annex  provides  an 
indicator-based 
overview  of  Greece’s  tax  system.  It  includes 
information on: (i) the tax mix; (ii) competitiveness 
and  fairness  aspects  of  the  tax  system;  and  (iii) 
tax collection and compliance.  

Greece’s  tax  burden  was  similar  to  the  EU 
aggregate  in  2023.  The  tax-revenue-to-GDP 
ratio in Greece decreased from 41.0% to 38.9% in 
2023 and is now similar to the EU average. There 
has  been  a  clear  increase  in  this  ratio  in  the  last 
decade,  given  that  in  2010  it  stood  at  32.3%  of 
GDP.  Compared  with  2022,  in  2023  capital-tax 
revenues  (equivalent  to  8.3%  of  GDP)  gained 
weight at the expense of consumption and labour 
taxes,  bringing  Greece  closer  to  the  EU  average 
(8.5%  of  GDP).  Comparing  the  structure  of 
taxation  in  Greece  with  that  of  the  EU,  Greece  is 
less  reliant  on  labour  taxation  than  most  EU 
countries and relies more on growth-friendly taxes 
(i.e.  consumption  taxes  rather  than  labour  taxes) 
than  the  EU  average  (Table  A13.1).  However,  the 
VAT policy gap in Greece is somewhat higher than 
the  average  in  the  EU  (the  VAT  rate  gap  is  at 
18.6%  while  the  EU  average  is  12%,  and  the 
actionable  exemption  gap  in  Greece  is  at  9.8% 
while the EU average is at 7% (52). Despite falling 
in  2023,  revenues  from  environmental  taxes  in 
Greece  were  still  equivalent  to  4.1%  of  GDP  in 
2023,  still  among  the  highest  shares  in  the  EU. 
The 
taxation 
(EUR 86.73/tonne  of  CO2)  is  2  pps  above  the  EU 
average. Revenues from both energy and transport 
tax  as  a  percentage  of  GDP  in  Greece  are 
significantly above the EU average. To strengthen 
the  application  of  the  ‘polluter  pays’  principle, 

effective 

carbon 

rate 

of 

(52)  The  policy  gap  can  be  decomposed  to  further  understand 
how  different  elements  of  the  tax  system  contribute  to  the 
loss  of  VAT  revenue.  In  this  study,  the  VAT  policy  gap  is 
decomposed into “additive” components (summing up to the 
total  policy  gap).63  The  main  components  of 
this 
decomposition  are  the  rate  gap  and  the  exemption  gap, 
which capture the forgone VAT liability due to the application 
of  reduced  rates  and  the  implementation  of  exemptions  or 
the  exclusion  of  part  of  household  final  consumption  from 
the  tax  base.  The  rate  gap  is  defined  as  the  difference 
between what would have been obtained in a counterfactual 
situation in which the standard rate had been applied to the 
total final consumption and the VTTL. The exemption gap is 
defined as the difference between two amounts: what would 
have been obtained in a counterfactual situation – where the 
standard  rate  applied  to  exempt  products  and  services  and 
no restriction of the right to deduct were applicable; and the 
VAT  Total  Tax  Liability.  European  Commission:  Directorate-
General for Taxation and Customs Union, The VAT gap in the 
EU  2024,  Publications  Office  of  the  European  Union,  2024, 
https://data.europa.eu/doi/10.2778/2861558.  

Greece  is  encouraged  to  complete  the  process  of 
introducing landfill tax as also committed to in its 
recovery and resilience plan (RRP). Revenues from 
property  taxes  (2.7%  of  GDP)  also  exceeded  the 
EU  average  in  2023  (1.9%  of  GDP).  This  was 
particularly  the  case  for  recurrent  taxes  from 
immovable property (2.0% of GDP, compared with 
0.9% for the EU average).     

Greece’s labour-tax burden is lower than the 
EU  average  across  all  income  levels.  Graph 
A19.2 shows that the labour-tax wedge for Greece 
in  2023  was  lower  than  the  EU  average  for  both 
single  people  at  various  income  levels  and  for 
second earners at 67% of the average income (53). 
Overall,  the progressivity of the Greek tax system 
(as  measured  by  the  ratio  of  the  tax  wedge  of 
high-income and low-income earners) is similar to 
the  EU  average.  However,  the  tax-and-benefit 
system  in  Greece  reduced  income  inequality  (as 
measured by the Gini coefficient) by far less than 
the  EU  average  in  2023  (Table  A19.1).  In  Greece, 
the  tax  and  benefit  system  reduced  the  Gini 
coefficient  on  average  by  4.5  points,  while  in  the 
EU  this  reduction  was  on  average  7.7  points  in 
2023.  

to 

its 

tax-policy 

In December 2024, Greece adopted additional 
framework, 
reforms 
including  for  self-employed  people,  also  in 
view of RRP commitments. These reforms were 
part  of  a  wider  package  of  reforms  that  were 
initiated  in  2023  and  continued  in  2024  and 
included  measures  to:  (i)  increase  the  mandatory 
acceptance of electronic payments; (ii) put in place 
new  reporting  requirements  on  data  sent  to  the 
tax  administration  enabling  the  use  of  this  data 
for  VAT  and  income-tax  purposes;  and  (iii)  put  in 
place  a  deemed  minimum  income  for  the  self-
employed  based  on  criteria  such  as  the  minimum 
wage, a comparison with annual sectoral revenues, 
etc. The deemed minimum income can be rebutted 
at  the  request  of  the  taxpayer.  The  increase  of 
personal-income-tax revenues in 2023 (from 5.5% 
of GDP in 2022 to 5.9%)  can be attributed  partly 
to  these  reforms.  Finally,  Greece  also  introduced 
several tax reductions in 2025 to boost disposable 
income,  including  by  reducing  the  compulsory 

(53)  The  tax  wedge  is  defined  as  the  sum  of  personal  income 
social-security 
taxes  and  employee  and  employer 
contributions  net  of  family  allowances,  expressed  as  a 
percentage of total labour costs (the sum of the gross wage 
and social-security contributions paid by the employer). 

35 

 
 
 
 
 
Table A2.1:  Taxation indicators 

(1) Forward-looking effective tax rate (KPMG).       
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average. 
(**) For more details on the VAT gap, see European Commission, Directorate-General for Taxation and Customs Union, VAT gap in 
the EU - 2024 report,  https://data.europa.eu/doi/10.2778/2476549 
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, OECD 

social-security  contributions  by  an  additional 
percentage point. This has resulted in a cumulative 
reduction in social-security contributions (employer 
and employee combined) of 5.4 percentage points 
since 2019 (from 40.56% to 35.16%). 

Graph A2.1: Tax revenue shares in 2023 

Source: Taxation Trends Data, DG TAXUD 

between  the  statutory  and  effective  CIT  rate,  in 
part due to the complexity of the tax system, this 
is no longer the case. In fact, Greece is one of only 
three  Member  States  where 
the  effective 
corporate-income-tax  rate  increased  over  the  last 
two  decades  (2002-2022-from  17.5%  to  21.1%). 
It  decreased  or  remained  stable  in  all  other 
Member  States  (EU  average  19.1%).  This  can  be 
explained by reforms to the Greek tax system, that 
led to an increase in tax collection over the same 
period. As a result, the gap between the statutory 
and  effective 
rates  of  CIT  has  narrowed 
significantly.  Greece  also  enacted  the  Pillar  2 
Directive  in  a  timely  manner  (1st  January  2024). 
The  Commission  will  assess  Greece’s  application 
of  the  CIT  top-up  tax  on  a  case-by-case  basis 
depending  on  the  actual  effective  tax  rate  of  the 
given group in Greece. Nevertheless, it is likely that 
the  application  of  the  top-up  tax  will  not 
significantly affect Greek tax revenues. 

There  has  been  a  strong  reform  momentum 
in business and the public administration, but 
challenges  persist. 
In  2024,  the  statutory 
corporate  income  tax  (CIT)  rate  was  22%  after 
progressively declining over the last 30 years (the 
EU-27  average 
in  2024  was  around  21%). 
Although  Greece  has  historically  had  a  large  gap 

 Greece  maintains  several  tax  Incentives 
related to the green transition, and has also 
introduced  a  specific  venture-capital  tax 
to  Venture  Capital 
regime,  applicable 
Companies  (EKES)  and  Closed  –  end  Venture 
Capital  Mutual  Funds  (AKES),  respectively”   
‘Green’  tax  incentives  in  Greece  include:  (i)  PIT 

36 

51,226,921,939,738,921,4Tax revenue shares in 2023, Greece (outer ring) and EU (inner ring)Taxes on labourTaxes on consumptionTaxes on capitalELMedian (EU-27)2010202120222023202420102021202220232024Tax structureTotal taxes (including compulsory actual social contributions) (% of GDP)32,439,441,038,937,840,239,739,0Taxes on labour (% of GDP)13,816,916,115,419,820,520,120,0of which, social security contributions (SSC, % of GDP)11,112,712,111,212,913,012,712,7Taxes on consumption (% of GDP)12,014,716,915,210,911,210,910,5of which, value added taxes (VAT, % of GDP)7,18,29,08,86,87,37,47,1Taxes on capital (% of GDP)6,67,88,08,37,18,58,78,5Personal income taxes (PIT, % of GDP)4,05,85,55,98,69,69,49,3Corporate income taxes (CIT, % of GDP)2,62,02,52,92,22,93,23,2Total property taxes (% of GDP)2,03,13,02,71,92,22,11,9Recurrent taxes on immovable property (% of GDP)1,02,42,12,01,11,11,00,9Environmental taxes (% of GDP)2,74,25,64,12,52,42,12,0Effective carbon rate in EUR per tonne of CO2 equivalentsNA83,7NA86,7NA86,0NA84,8Tax wedge at 50% of average wage (single person) (*)34,429,930,330,931,633,931,831,531,531,8Tax wedge at 100% of average wage (single person) (*)40,037,338,038,739,340,939,939,940,240,3Corporate income tax - effective average tax rates (1) (*)21,921,621,621,621,319,319,118,9Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)5,53,74,04,58,68,27,97,7Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)203,0190,635,532,6VAT gap (% of VAT total tax liability, VTTL) (**)17,513,76,67,0GreeceEU-27Progressivity & fairnessTax administration & complianceBy tax baseSome tax types 
 
   
 
   
 
income-tax exemptions for buying or using a zero-
pollution  or  low-pollution  vehicle  (up  to  50  g  CO2 
per km); and (ii) increased CIT-deduction rates for 
the  cost  of  leasing  ‘green’  company  passenger 
cars.  Stock  options  granted 
to  employees, 
shareholders or partners of a legal entity in Greece 
are  exempt  from  employment-income  tax  under 
certain conditions.  

introduced  two  new  preferential  tax  regimes  for 
individuals to promote investments in the country, 
especially in start-ups. These two new regimes will 
take effect from 2025. 

Graph A2.2: Tax wedge for single and second 
earners, % of total labour costs, 2024 

its  taxation  system 

Greece is working to improve the investment 
friendliness  of 
in 
response  to  RRP  commitments. 
In  2024, 
Greece  completed  several  reforms  including:  (i) 
codification  of  legislation  on  tax  procedures;  (ii) 
the replacement of stamp-duty with a new digital 
transaction  tax;  (iii)  the  simplification  of  tax 
legislation;  (iii)  further  digitalisation  of  services; 
and 
innovation, 
transformation, and the scaling up of companies. 

incentives  on 

(iv)  specific 

In line with other EU Member States, Greece 
does not have a wealth tax, and capital gains 
are  taxed  at  a  flat  rate,  while  inheritance 
and  gift  taxes  apply  at  progressive  rates. 
Capital gains from the transfer of shares, whether 
traded  publicly  or  not,  are  taxed  in  principle  at  a 
flat  rate  of  15%,  with  an  additional  2%  duty  for 
gross  sale  proceeds  of  publicly  traded  shares. 
Inheritance tax applies to the current value of the 
property  inherited,  at  a  rate  of  between  1%  and 
40%. This inheritance tax is progressive and varies 
depending  on  the  relationship  between  deceased 
and  heir.  There  is  a  similar  progressive  system  in 
place,  which  also  varies  depending  on 
the 
relationship  between  deceased  and  heir,  for 
donations  and  parental  grants.  Rental  income  is 
taxed  progressively  at  a  rate  ranging  between 
15% and 45%. Dividends are currently subject to a 
withholding tax at a rate of 5%.  

Greece  has  five  preferential  tax  regimes  to 
attract 
investors  and  highly  qualified 
employees,  two  of  which  entered  into  force 
in  2025.  The  three  regimes  that  were  in  force 
before  2025  are:  (1)  a  regime  under  which 
investors  not  resident  in  Greece  are  subject  to  a 
yearly lump-sum tax of EUR 100 000 for up to 15 
years; (2) a regime for pensioners living in Greece 
and receiving pension income from abroad that is 
taxed  at  only  7%;  and  (3)  an  alternative  tax 
regime for employees relocated to Greece who can 
be  exempt  from income  tax  and  special  solidarity 
contributions  for  50%  of  their  employment  or 
business  income  in  Greece  for  seven  years.  In 
addition  to  these  three  regimes,  Greece  has 

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

to 

on 

reforms 

improve 

tax  arrears,  although 

Continued 
digitalisation, 
improving tax compliance, and combating tax 
evasion  are  starting 
the 
performance of the Greek tax administration. 
At  191%  of  total  net  revenue  collected,  Greece’s 
outstanding 
slightly 
improved  in  comparison  with  2021,  remained  the 
highest in the EU in 2022 (32.6% aggregate). VAT 
revenue  in  Greece  grew  by  22.8%  in  2022,  with 
growth  in  key  macroeconomic  indicators  such  as 
GDP, household final consumption and investment 
also  increasing  strongly  in  2021  and  2022 (54). 
And the VAT compliance gap in Greece fell by 3.8 
pps  to  13.7%  in  2022  but  remained  above  the 
median  EU-wide  gap  of  6%.  This  was  a 
continuation  of 
that 
commenced  in  2018  and  is  in  line  with  most  EU 
Member  States.  Similarly,  on-time  payment  rates 
for VAT have continued to improve, and amounted 
to 90.2% of expected due payments in 2022. The 
rate  of  audits  with  adjustment  of  the  tax 
obligation  as  a  percentage  of  audits  completed 
has  improved  (from  68.9%  in  2022  to  88.5%  in 

the  downward 

trend 

(54)  European Commission: Directorate-General for Taxation and 
Customs Union, Bonch-Osmolovskiy, M., Poniatowski, G., 
Braniff, L., Harrison, G. et al., VAT gap in the EU – 2024 
report, Poniatowski, G.(editor), Publications Office of the 
European Union, 2024, 
https://data.europa.eu/doi/10.2778/2476549. 

37 

31,635,239,344,836,32025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - ELSingle earner - EU averageSecond earner -  ELSecond earner -  EU average 
     
 
2021 (55)).  On  efficient 
tax  collection,  gross 
the  Greek  authorities  on 
expenditure  by 
information  and 
technology 
communications 
doubled between 2021 and 2022 (56), and the rate 
of  returns  filed  electronically  was  high  for  CIT, 
personal-income tax and VAT.  

legislation  that 

Finally, reforms in the area of tax compliance and 
collection  continued:  In  December  2024,  Greece 
lays  down:  (i)  fixed 
adopted 
submission deadlines for tax returns; (ii) incentives 
for early payment of due taxes; and (iii) penalties 
for  the  public  and  private  sectors  for  non-
registration,  late  filing,  or  the  filing  of  inaccurate 
data  used  to  populate  the  pre-filled  income  tax 
returns.  

(55)  https://www.oecd.org/content/dam/oecd/en/topics/policy-

issues/tax-administration/tax-administration-series-country-
snapshot-grc.pdf. 

(56)  From EUR 11.1 million to EUR  22.093  million, OECD, Tax 

Administration 2024, Comparative Information on OECD and 
other Advanced and Emerging Economies, data tables 
available at 
https://data.rafit.org/regular.aspx?key=74180905. 

38 

 
 
PRODUCTIVITY 
ANNEX 3: INNOVATION TO BUSINESS  

than 

the  EU 

that  of 

Although  Greece’s  science  base  shows  a 
positive  trend,  the  country  still  faces 
challenges to boost its innovative ecosystem. 
Innovation 
According  to  the  2024  European 
Scoreboard (57),  Greece  is  ranked  as  a  ‘moderate 
innovator’,  performing  at  77.5%  of  the  EU 
average.  Its  performance  is  increasing  at  a  rate 
higher 
(+10%).  R&D 
intensity (58) has been steadily increasing over the 
last  decade  and  reached  1.49%  in  2023  but 
remains significantly below the European average 
(2.24%).  Regional  gaps  in  R&D  intensity  are 
persistent,  with  low  innovation  diffusion  causing 
regional  disparities (59).  Despite  progress  in  its 
long-term 
science  base, 
commitment  to  R&D  investment,  while  further 
improvements  in  research  and  innovation  (R&I) 
governance  could  boost  the  effectiveness  of 
investments.  On  the  innovation  side,  Greece  still 
exhibits  weaknesses  because  of  a  lack  of  private 
investment  in  R&D,  with  a  high  share  of  small, 
low-productivity  firms  that  are  lagging  behind  in 
adopting new and innovative technologies. 

there  must  be  a 

Science and innovative ecosystems 

the 

Greece’s  science  performance  has  improved 
in  recent  years,  although  more  efforts  can 
help  close 
innovation  gap.  Public 
expenditure  on  R&D  as  a  percentage  of  GDP  was 
slightly  above  the  EU  average  in  2023  (0.75% vs 
0.72%),  while  scientific  production  is  stable,  at  a 
level  similar  to  the  EU  average.  This  is  illustrated 
by the international  scientific co-publications as a 
percentage  of  total  publications  (52%  vs  an  EU 
in  2023)  and  scientific 
average  of  55.9% 
publications  within  the  top  10%  most  cited 
scientific  publications  worldwide  as  a  percentage 
of  total  scientific  publications  (8.9  vs  an  EU 
average  of  9.6).  Equally,  the  number  of  new 
doctorate  graduates in  science  and  engineering is 
17.6%  (EU  average  17.5%,  see  Table  A3.1).  The 

(57)  2024 European Innovation Scoreboard Greece: provides a 
comparative analysis of innovation performance for EU 
countries, including the relative strengths and weaknesses of 
their national innovation systems. 

(58)  Eurostat. R&D intensity is defined as gross domestic 
expenditure on R&D as a percentage of GDP.  

(59)  2023 Regional Innovation Scoreboard: Greece.  

39 

the  highest 

public  sector  (government  and  higher  education 
institutions)  employs 
level  of 
researchers  at  7.8  per  thousand  of  the  active 
population  (EU  average  4.1).  The  Greek  recovery 
and  resilience  plan  (RRP)  contributes  to  a  better 
science base by boosting R&D expenditure through 
investments  in  research  centre  infrastructure  as 
well  as  basic  and  applied  research  programmes. 
These  investments  are  complemented  by  the 
National  Strategy  for  Research,  Technological 
Development  and 
Innovation  and  support  to 
research  careers  and  research  organisations  by 
the Hellenic Foundation for Research & Innovation. 
Nonetheless,  Greece  would  benefit  from  a  long-
investments  post-RRP (60) 
term  strategy 
beyond 2026 and thus ensure stability as well as 
predictability.  This  would  help  further  boost  the 
quality  of  research  outputs  and  improve  the 
effectiveness of R&D investment (61). 

for 

R&I governance in Greece is fragmented and 
requires  better  coordination  as  it  faces 
challenges  to  optimise  and  reduce  the 
administrative  burden.  The  country’s  research 
policy management and funding sources have long 
been fragmented across several ministries, among 
others  the  General  Secretariat  for  Research  and 
Innovation,  the  Hellenic  Foundation  for  Research 
and Innovation and the regional R&I authorities. In 
addition to frequent changes, coordination among 
these policy advisory and management bodies has 
been inadequate (62). Moreover, the various bodies 
involved in the financing of research activities are 
characterised by high levels of bureaucracy. This is 
due  to  specific  laws,  regulations  and  provisions 
that  hinder  the  R&D  activities  (e.g.  excessive 
requirements,  slow  evaluation 
administrative 
burden, 
bureaucratic 
perceived 
procedures, 
etc.) (63).  Despite  the 
the 
country  would  benefit  from  managing  and 
coordinating  its  R&I  ecosystem  more  efficiently 

increased  funding, 

(60)  The RRP funding for R&I amounted over 90% of Greece’s 

public R&D expenditure in 2020. 

(61)  This has been described among others in the final report, 

(2020) Development Plan of the Greek Economy. 

(62)  EC 2023: Support to Greece in the implementation of PSF 
country recommendations and OECD Economic Surveys: 
Greece 2024. 

(63)  EC 2023: Support to Greece in the implementation of PSF 

country recommendations and OECD (2024), OECD Economic 
Surveys: Greece 2024. 

 
 
 
 
 
 
and  effectively  in  order  to  improve  its  innovative 
performance.  

participating in the unitary patent system as it and 
boosting competitiveness (68). 

Public support for private R&D has increased 
markedly, but further improvements can help 
increase  its  effectiveness.  Direct  and  indirect 
government  support  for  business  R&D  showed 
substantial  increases  between  2017  and  2022. 
Business  enterprise  expenditure  on  R&D  financed 
by  the  public  sector  (national  and  abroad)  as  a 
percentage  of  GDP  reached  0.150%  (EU  average 
0.100%).  R&D  tax  incentives  (foregone  revenues 
as  %  of  GDP)  reached  0.022%  in  2022,  up  from 
0.007% 
lag 
significantly behind the EU average (0.102%) (see 
Table  A3.1).  While  measures  have  been  taken  to 
in  the  tax  incentive 
boost  SME  participation 
scheme  (69),  the  take-up  of  these  provisions  has 
been 
(see  Graph  A3.1).  Further 
improvements  can  help  ensure  easier  access  and 
small 
increased  awareness  particularly 
businesses. An external assessment of the system 
could  provide 
to 
recommendations 
strengthen  the  policy  mix  for  the  innovation 
ecosystem. 

in  2017,  although 

they  still 

in  order 

low 

(70) 

for 

Graph A3.1: Total public support to business R&D 

Business innovation  

since 

2017, 

(SMEs) 

increasing 

is  also  reflected 

increased  private 

Greece’s  moderate  innovation  performance 
investment, 
requires 
improved  innovation  diffusion  to  small  and 
medium-sized 
and 
enterprises 
stronger  R&I  policies.  Although  it  has  been 
steadily 
business 
expenditure  on  R&D  as  a  percentage  of  GDP 
reached  0.74%  in  2023  and  continues  to  remain 
some  way  below  the  EU  average  (1.49%).  This  is 
caused among others by overall low dynamism in 
the business sector, with many SMEs concentrated 
in  low  technology  sectors  such  as  tourism  and 
agrifood  (64),  and  weaknesses  when  it  comes  to 
value  added  in  medium-  to  high  technology 
manufacturing  (65).  This 
in 
innovation  outputs,  with  only  0.51%  patent 
applications per billion of GDP compared to the EU 
average  of  2.8%  (see  Table  A3.1,  and  Section  2) 
(66). To tackle these challenges, Greece has set up 
the  ‘Research-Create-Innovate’  programme  to  link 
the 
R&I  with  entrepreneurship  and 
competitiveness, 
outward 
productivity 
orientation  of  Greek  businesses,  along  with  Greek 
Elevate,  a  database  registry  intended  to  identify 
promising  start-ups  and  help  them  grow.  These 
actions  seek  to  channel  resources  in  order  to 
promote  private  research  activities  in  companies, 
especially  SMEs,  which  could  help  boost  R&D 
expenditure  in  SMEs in  future (67).  In  terms  of  the 
country’s  innovation  activity  in  the  private  sector, 
which is still lagging behind overall, it is of utmost 
in  support 
to  ensure  continuity 
importance 
measures. Additionally, Greece would benefit from 
offers  key  advantages  in  promoting  innovation 

improve 

and 

(64)  OECD (2024), OECD Economic Surveys: Greece 2024 

(65)  The value added in medium- to high-tech manufacturing in 
Greece as a percentage of total value added stands at 
1.36% compared to the EU average of 5.25%. 

(66)  As measured in patent applications filed under the Patent 
Cooperation Treaty per billion of GDP (in purchasing power 
standards/PPS €). 

(67)  Business enterprise expenditure on R&D performed by SMEs 
as % of GDP: Greece 0.32% vs 0.40% for the EU (2022). 

Source: Eurostat and OECD 

Greek  SMEs  struggle  to  adopt  digital  and 
advanced  technologies,  with  below-average 
performance  in  digitalisation  compared  to 

(68)  The country is expected to join by ratifying the Unified Patent 

Court Agreement, which it has already signed. 

(69)  Greek Law No. 5162 (Dec 2024) tax reform includes 
improvements for R&D tax incentives for firms. 

(70)  OECD (2024), OECD Economic Surveys: Greece 2024 

40 

0.00.10.20.30.40.50.6Business enterprise expenditure on R&D (BERD) financed by the public sector (nationaland abroad) as % of GDPR&D tax incentives: foregone revenues as % of GDP 
 
        
 
the EU. In 2024, only 53.4% of SMEs had at least 
a  basic  level  of  digital  intensity,  below  the  EU 
average  (72.9%),  although  this  result  shows 
progress from 2022 (41.2% SME digital intensity). 
Firms in Greece also have a low level of take-up of 
advanced technologies such as AI, cloud and data 
analytics.  Although 
recent  figures  show  an 
acceleration  in  the  adoption  of  AI  in  general  in 
both the EU and in Greece, with an increase from 
3.98% by firms in 2023 to 9.81% in 2024, this is 
still  below  the  EU  average  of  13.48%.  The 
adoption  of  data  analytics  and  advanced  cloud 
services  are  also  far  from  the Digital Decade  EU-
level  target  of  75%  by  2030.  However,  the 
dynamic start-up ecosystem is a positive sign of a 
digital  ecosystem  in  development.  To  support  the 
further  adoption  and  development  of  digital 
technologies,  the  country  is  making  use  of  the 
resources  of  its  recovery  and  resilience  plan.  It  is 
carrying  out  several 
initiatives,  reforms  and 
investments  to  upgrade  its  digital  and  research 
infrastructure,  increase  the  digital  maturity  of 
SMEs  by  helping  modernise  their  production, 
commercial  and  administrative  functions,  and 
purchase and use of digital products and services. 
and 
However, 
introducing  additional  measures  can 
further 
contribute to the digital transformation of SMEs. 

strengthening 

strategy 

the 

Science-business linkages have improved, but 
continuous efforts can help boost technology 
transfer  and  commercialisation  of  research. 
Despite  Greece’s  solid  research  base,  better 
science-business  linkages  have  historically  been 
held  back  by  structural  factors  such  as  weak 
incentives  for 
technology  transfer  offices  or 
researchers  to  work  in  (or  work  with)  the  private 
sector.  However,  backed  by  dedicated  support 
programmes  that  promote  collaboration  between 
the 
academia  and 
country’s  performance  has  improved,  as  seen  in 
the  number  of  public-private  scientific  co-
publications 
total 
publications (9.2%  vs  the  EU  average  of  7.7%  in 
2023).  A  recent  report  notes  that  progress  is 
visible 
intermediary 
number 
organisations,  with  accelerators  and  incubators 
flourishing (72), although there is scope for further 

the  business  sector (71), 

percentage 

the 

as 

of 

of 

in 

a 

(71)  For instance, the General Secretariat for Research and 
Innovation implemented the Research-Create-Innovate 
programme (2014-2020). This has been succeeded by the 
Research-Innovate 2021-2027 initiative.  

(72)  ‘Greeking Out 2.0 The Greek tech ecosystem is growing up.’ 

Sifted Reports, June 2024. 

collaboration. 

support.  Furthermore,  Greece  received  Horizon 
Europe  Policy  Facility  support  to  revise  its  2021-
2027  National  Research  Infrastructure  Roadmap, 
boosting  sustainability,  scientific  excellence  and 
science-business 
Full 
implementation  of  these  recommendations  (73) 
while  ensuring  that  the  support  system  for 
science-business 
and 
commercialisation of research more specifically, is 
assessed and that intermediary structures such as 
tech  transfer  clusters  are  strengthened  through 
continuous support, remain key.  

collaboration, 

Financing innovation 

to 

finance 

Venture  capital  in  Greece  has  remained 
stagnant,  and  although  measures  have  been 
remains 
introduced,  access 
limited. Venture capital in Greece is at 0.025, far 
below the EU average of 0.078 as a percentage of 
GDP.  Nevertheless,  there  is  access  to  finance  for 
firms  at  initial  stages,  shown  by  9.5%  of  venture 
capital for the seed stage (vs 7.3% for the EU) and 
56.2% for the start-up stage (vs 44.0% for the EU) 
(see Table A3.1). While local private equity and the 
growth  venture  capital  market  are  not  developed, 
state-sponsored initiatives have had some success 
in  mobilising  investment.  EquiFund  (and  EquiFund 
II in 2024) a fund-of-funds programme formed by 
a  public-private  partnership  between  the  Greek 
government  and  the  European  Investment  Fund, 
has  made  investments  in  Greek  start-ups.  In 
addition,  the  RRP  Loan  Facility 
is  used  for 
small 
financing  programmes 
businesses  (see  Annex  5).  Nonetheless,  despite 
these  measures  Greece  would  benefit  from 
additional  sources  and  a  post-RRP  strategy  to 
improve access to financing innovation.  

scale  up 

to 

Innovative talent 

Human  resources  with 
innovative  talent  are 
insufficient,  and  more  skilled  workforce  would  be 
needed 
innovation 
ecosystem.    The  share  of  population  aged  25-34 
tertiary 
who  have 

successfully 

the  Greek 

completed 

support 

to 

(73)  EC 2023: DG R&I Support to Greece in the implementation of 

PSF country recommendations – Final report. 

41 

 
 
 
Table A3.1:  Key innovation indicators 

(1) EU average for the last available year or the year with the largest number of country data. 
Source: Eurostat, DG JRC, OECD, Science-Metrix (Scopus database), Invest Europe, European Innovation Scoreboard 

to 

more  widespread  due  to  specific  courses  offered, 
innovation  programmes  and  business  incubators. 
However,  limited  resources  and  the  absence  of 
monitoring  and  evaluation  of  entrepreneurship 
education,  coupled  with  no  national  strategy,  are 
significant  barriers 
the  development  of 
entrepreneurship  competences  and  skills.  Greece 
has  put  in  place  support  measures  for  PhD  and 
postdoctoral  students 
innovative 
talent.  Its  RRP  also  includes  a  programme  for 
upskilling  and  reskilling  aimed  at  benefiting 
ICT  specialists. 
companies 
However,  further  strengthening  digital  skills  and 
promoting  innovative  talent  capacity  would  help 
effectively support Greece’s innovation ecosystem.  

increase 

recruit 

trying 

to 

to 

education  in  2024  reached  44.5%  (EU  average 
44.2%),  although  graduates 
in  the  field  of 
computing per thousand population aged 25-34 is 
at 2.8% (the EU of average of 3.6 in 2023).  Also, 
the  limited  level  of  at  least  basic  digital  skills 
among  the  population  (52.4%  for  Greece  vs  EU 
average 55.6%) is hindering the adoption of digital 
technologies  (see  Annex  12).  The  percentage  of 
ICT  specialists  out  of  total  employment  is  the 
lowest in the EU, at 2.4% (74). SMEs in Greece have 
stated that skills shortages are holding them back 
from  adopting  and/or  using  digital  technologies 
(67%) (75).  The  development  of  entrepreneurship 
education in Greece is in its early stages, although 
in  higher  education, entrepreneurship  education is 

(74)  See DESI Indicators 2024.  

(75)  Digital Decade 2024 Country Reports. Greece. 

42 

R&D intensity (gross domestic expenditure on R&D as % of GDP)0.721.151.491.431.481.49:2.243.45Public expenditure on R&D as % of GDP0.470.580.790.750.750.75:0.720.64Scientific publications of the country within the top 10% most cited publications worldwide as % of total publications of the country 8.818.938.798.91:::9.6412.29Researchers (FTE) employed by public sector (Gov+HEI) per thousand active population4.25.37.17.17.88.1:4.2:International co-publications as % of total number of publications43.151.852.451.351.252.0:55.939.3Business enterprise expenditure on R&D (BERD) as % of GDP0.250.560.690.670.720.74:1.492.70Business enterprise expenditure on R&D (BERD) performed by SMEs as % of GDP:0.230.260.280.32::0.400.30Researchers employed by business per thousand active population0.92.12.72.93.3::5.7:Patent applications filed under the Patent Cooperation Treaty per billion GDP (in PPS €)0.60.60.60.70.5::2.8:Employment share of high-growth enterprises measured in employment (%):::::::12.51SMEs with at least a basic level of digital intensity% SMEs (EU Digital Decade target by 2030: 90%)::::41.21:53.4272.91:Data analytics adoption% enterprises (EU Digital Decade target by 2030: 75%):::::25:33.17:Cloud adoption% enterprises (EU Digital Decade target by 2030: 75%):::15.22:18.07:38.86:Artificial intelligence adoption% enterprises (EU Digital Decade target by 2030: 75%):::2.61:3.989.8113.48:Public-private scientific co-publications as % of total number of publications6.17.58.68.58.99.2:7.78.9Public expenditure on R&D financed by business enterprises (national) as % of GDP0.0320.0410.0410.0460.043::0.0500.020Total public sector support for BERD as % of GDP:0.0640.1320.1550.169::0.2040.251R&D tax incentives: foregone revenues as % of GDP0.0040.0070.0290.0280.0190.022:0.1020.141BERD financed by the public sector (national and abroad) as % of GDP :0.0580.1030.1270.150::0.1000.110Venture capital (market statistics) as % of GDP, total (calculated as a 3-year moving average)0.0020.0100.0140.0210.0270.025:0.078:Seed capital (market statistics) as % of GDP50.79.525.514.110.09.5:7.3:Start-up stage funding share (% of total venture capital)47.334.041.479.854.756.2:44.0:Later stage funding share (% of total venture capital)2.056.533.16.235.234.3:48.7:New graduates in science and engineering per thousand population aged 25-3412.214.614.217.117.6::17.6:Graduates in the field of computing per thousand population aged 25-342.21.62.12.52.8::3.6:Innovative talentR&D investment & researchers employed in businessesInnovation outputsDigitalisation of businessesAcademia-business collaborationPublic support for business innovationFinancing innovationScience and innovative ecosystemsGreece2012201720202021202220232024EU average (1)USAHeadline indicator 
 
 
          
 
ANNEX 4: MAKING BUSINESS EASIER 

Despite  significant  recent 
improvements, 
Greece  still  faces  serious  competitiveness 
challenges.  High  regulatory  barriers,  a 
low 
investment  share  by  the  private  sector,  weak 
allocative efficiency and limited access to finance 
(especially for SMEs) remain important issues.  

Economic framework conditions 

Economic  sentiment 
in  2024  was  more 
positive  among  firms  and  overall  than  the 
long-term  EU  and  Greek  average,  except  for 
consumers.  According  to  the  2024  business  and 
increased 
consumer  survey  data,  confidence 
substantially in the service sector (+40.3 points) as 
well as in retail (+12.6), construction (+7) and, to a 
lesser extent, industry (+1.8). These increases were 
much higher than the EU average (+6.4 points for 
services,  -5  for  retail,  -7.6  for  construction 
and  -10.1  for 
industry).  By  contrast,  Greek 
consumers were much more pessimistic (-46) than 
the EU average (-13) (76). 

ratio 

investment-to-GDP 

The 
remains 
worryingly  low  and  is  impeding  productivity 
growth.  In  2023,  Greece  had  the  lowest  level  of 
total  investment  (15.2%  as  share  of  GDP)  and 
business  investment  (7.7%  of  GDP)  in  the  EU. 
Government investment is still being supported by 
the  recovery  and  resilience  plan  (RRP)  funds  and 
the government’s investment share to GDP (3.9%) 
is  above  the  EU  average  (3.6%).  However,  Greek 
investment  is  focused  on  capital  replacement 
(56%  of  firms)  rather  than  capacity  expansion 
(22%  of  firms)  (77) .  Following  the  recent  natural 
catastrophes,  Greece  had  the  highest  share  of 
firms investing in climate-resilience in response to 
the physical risk of climate change (78) in 2023. 

Firms  strongly  perceive  uncertainty,  energy 
costs  and  business  regulations  as  the  main 
investment  obstacles.  According  to  the  2024 
EIB Investment Survey, the three main obstacles to 

(76)  Business and consumer surveys - European Commission  

(77)  EIB Investment Survey 2024 - European Union overview 

(78)  Physical  risk  as defined  in  the  EIB  Investment  Survey  is  the 
impact of climate change on a company, such as losses due 
to  extreme  climate  events  (including  droughts,  flooding, 
wildfires  or  storms,  or  changes  in  weather  patterns  due  to 
progressively increasing temperatures and rainfall). 

43 

for  more 

investment 
than  90%  of  Greek 
businesses  are:  uncertainty  about  the  future, 
energy  costs 
(see  Annex  8)  and  business 
regulations. This is well above the EU average.  

labour  supply  constraints  and 
Greece’s 
material  supply  constraints  are  increasing. 
The  share  of  Greek  businesses  facing  material 
supply constraints increased slightly from 7.3% in 
2023 to 8.8% in 2024, but still remains lower than 
the  overall  EU  2024  average  of  10%  (See  table 
A2.1).  The  share  of  businesses  facing  labour 
supply  constraints  increased  (23.15%  in  2024  vs 
14.83% in 2023) and is higher than in the EU as a 
whole (20.16% EU average) (See table A2.1). 

Greece  has  the  second-lowest  employment 
rate  in  the  EU  and  women  are  especially 
under-represented.  Greece’s  employment  rate 
was  67.4%  in  2023.  The  share  of  women  in  the 
labour market was 57.6% (also the second lowest 
in the EU). The female  employment gap  is one of 
the  highest  in  the  EU  and  labour  productivity  is 
below  the  EU  average.  The  low  employment  rate 
of women may be related to a high tax wedge for 
second  earners  (usually  women).  Considering  the 
adverse  demographic  projections  for  Greece,  the 
Greek  authorities  could  encourage  return  to  work 
for women (e.g. via tax incentives).  

Greek  firms  see  transport  infrastructure  as 
an  obstacle  to  investment  despite  Greece 
performing  well  in  the  world  ranking  index. 
According to the 2024 EIB Investment Survey (79), 
72%  of  Greece’s  businesses  think  that  transport 
infrastructure  is  an  obstacle  to  investment  (vs 
45% in the EU). However, Greece ranks 24th in the 
world  ranking  of  the  2024  Logistic  Performance 
Index (LPI) and as the 11th EU Member State.  

The digital landscape for Greek businesses is 
improving  (including  for  cybersecurity),  but 
progress  is  needed  in  very  high-capacity 
network (VHCN) coverage. Only 53.4% of SMEs 
had  at  least  a  basic  level  of  digital  intensity  in 
2024 – well below the EU average of 72.9% (see 
the  Annex  3).  By  contrast,  the  score  for  digital 
public  services  for  businesses  (86.2%)  is  slightly 
higher  than  the  EU  average  (85.4%)  (see  the 
Annex  6).  Greece’s  performance  on  connectivity 
infrastructures  shows  a  need  to  substantially 

(79)  EIB Investment Survey 2024 - European Union overview 

 
 
 
 
 
increase efforts in order to achieve the EU’s 2030 
targets  and  objectives.  Digital  infrastructure  has 
recently  improved  but  remains  below  the  EU 
average in terms of gigabit connectivity. Greece is 
lagging  behind  on  the  deployment  of  fibre 
networks  to  provide  gigabit  connectivity  for  all. 
Only 38.4% of households have very high-capacity 
network (VHCN) coverage – still far fewer than the 
EU  average  of  78.8%.  However,  the  2021-2027 
National  Broadband  Plan  is  starting  to  bear  fruit 
and  achieved  a  10-percentage  point  increase  in 
VHCN coverage over the last year. 60.7% of Greek 
households  had  access  to  a  broadband  speed 
above  100 Mbps  in  2023.  The  29.5%  share  of 
fixed  broadband  subscriptions  to  services  of  at 
least 100  Mbps  was  significantly  below  the  EU 
average  of  65.9%.  No  households  had  a 
broadband  service  providing  a  service  of  at  least 
1 Gbps. 

Graph A4.1: Making Business Easier: selected 
indicators. 

Share of (1) enterprises, (2) average intra-EU exports and 
imports in GDP, (3) firms, (4) SMEs. 
Sources: (1) EIB IS, (2) Eurostat, (3) ECFIN BCS, (4) SAFE 
survey. 

5G connectivity is well above the EU average. 
5G  coverage  was  98.1%  of  populated  areas  in 
2023  (the  EU  average  was  89.3%).  58.8%  of 
populated  areas  were  covered  by  the  3.4-3.8 GHz 
band (above the EU average of 50.6%).  

44 

Cybersecurity  awareness 
in  enterprises 
remains  a  concern.  The  share  of  enterprises 
experiencing an ICT attack leading to unavailability 
of  ICT  services  (e.g. a  ransomware  attack  or  a 
denial-of-service  attack) increased  from  5.61%  in 
2022 to 6.23% in 2024 (significantly above the EU 
average  of  3.43%).  Only  72%  of  enterprises 
deployed some ICT security measures – one of the 
lowest  percentages  in  the  EU  and  well  below  the 
EU  average  of  93%.  Only  32%  of  enterprises 
made their employees aware of their obligations in 
issues  related  to  ICT  security  (significantly  below 
the EU average of 60%).  

Late payments are disrupting SME cash flow. 
The  share  of  SMEs  experiencing  late  payments 
from  public  entities  is  the  highest  in  the  EU 
(32.2%) and almost twice as high as the 2024 EU 
average  (16,6%)  (Table  A2.1).  According  to  the 
2024  SAFE  survey,  the  delay  in  payments  in  the 
public  sector  was  18.9  days  (vs 15.2 days  for  the 
EU).  Late  business-to-business  payments  have 
continued  to  increase  since  2021.  The  average 
delay in payments by businesses is now 15.1 days 
(vs 15.5  days  for  the  EU).  However,  the  share  of 
SMEs  experiencing  such  delays  (53.8%)  is  higher 
than the EU average (47,9%). 

Availability  of  finance  remains  a  significant 
obstacle  to  investment.  According  to  the  EIB 
Investment Survey (80), availability of finance is an 
obstacle  to  investment  for  72%  of  Greek  firms 
(well above the EU average of 45%) (see Annex 5). 
75% of Greek firms’ investment needs are covered 
by  internal  funding  (the  EU  average  is  66%). 
Greece  scores  lowest  in  the  EU  on  the  five-year 
average for EIF loans access to finance index, but 
scores  better  on  equity  (Greece  has  a  small  but 
lively equity sector). 

is 

Greece 
increasingly  perceived  as  an 
attractive  investment  destination.  The  2024 
EY  Attractiveness  Survey  Greece  (81)  recorded  50 
foreign  direct  investment  (FDI)  projects  in  2023. 
This  was  Greece’s  strongest  performance  since 
2000  and  placed  Greece  19th  out  of  the  45 
countries surveyed. However, investment in Greece 
represents  only  0.9%  of  the  total  number  of 
investments in  the  EU. Current  growth  rate  needs 
intensified.  The 
to  be  maintained  and  even 

(80)  EIB Investment Survey 2024 - European Union overview 

(81)  EY Attractiveness Survey Greece 2024,  

53.832.78.821.053.947.916.61041.624.50102030405060from private entitiesfrom public entitiesMaterial shortages as afactor limiting productionEU Trade IntegrationRegulation as a majorobstacle to investment(4) Late payments(3) Shortages(2) SingleMarket(1) RegulatoryburdenShare (%)EU27EL 
     
 
qualitative  composition  of 
investments  has 
improved,  with  a  significant  percentage  being 
directed towards knowledge-based activities. 51% 
of  respondents  perceived  Greece  as  a  location 
where  their  company  might  establish  or  develop 
investment 
the 
activities.  However, 
remains lower than in other EU countries.  

level  of 

Regulatory and administrative 
barriers 

in 

investing 

(including 

The Greek business environment is becoming 
more  friendly.  However,  firms  still  see  business 
regulations  as  one  of  the  main  obstacles  to  their 
investing 
innovation). 
Business entry requirements are among the lowest 
in the EU and simplified business registrations are 
offered  in  international  trade  and  utility  services. 
Greece  provides  traders  with  extensive  facilities 
and  equipment  at  the  main  seaports  and  land 
border crossings. Tax legislation is currently being 
codified  in  the  context  of  Greece’s  recovery  and 
resilience  plan  (RRP).  Nonetheless, the  88%  share 
of  Greek  exporters  reporting  that  they  must 
comply  with  different  standards  and  consumer 
protection was well above the EU average of 60% 
in  2024.  Judicial  proceedings  are  still  extremely 
long,  despite  recent  efforts  to  reduce  them,  and 
companies’  confidence  in  the  effectiveness  of 
investment protection by the law and courts is the 
lowest of the EU. Greece scores lowest in business 
insolvency, taxation and business location (82).  

best  practices,  but  challenges  persist. 
According  to  the  OECD(84),  Greece  is  among  the 
countries  that  made  the  strongest  progress 
between  2016  and  2022 
in  reforming  their 
insolvency  framework.  Greece  has  transposed  the 
Restructuring 
EU  Directive 
Frameworks. 
case 
management  systems  in  insolvency  proceedings 
have not been implemented. 

on 
However, 

Preventive 

electronic 

The  Greek  economy’s  allocative  efficiency  is 
weak.  This  is  reflected  in  the  high  dispersal  of 
marginal revenues from capital and labour. This is 
particularly  true  in  the  wholesale  and  retail  trade 
sector  but  also  visible  in  manufacturing.  Greece’s 
large number of micro-firms is (in conjunction with 
regulatory  burden  and  rigidity)  blocking  the 
efficient reallocation of labour resources from one 
firm to another. Improving the business regulatory 
environment  further  (particularly  product  market 
regulations) and helping Greek firms to grow could 
help increase their productivity.  

Single market 

Greece  ranks  low  in  the  2024  Single  Market 
Scoreboard  for  intra-EU  integration  in  trade 
in  goods  and  services  as  a  whole.  However, 
integration  of  travel  services  is  above  the  EU 
average.  Transport  data  show  less  integration  in 
the  single  market.  Greece  has  one  of  the  three 
biggest  commercial  fleets 
in  the  world  and 
therefore has many extra-EU trade partners.  

It 

inefficient. 

location  framework  meets 
The  business 
international  standards,  but  interaction  with 
public  services 
is 
is  still 
important  for  entrepreneurs  to  be  able  to  choose 
the 
location  to  set  up  their  company.  The 
regulatory  framework  seems  to  comply  with 
international  standards,  but  availability  and 
reliability  of  public  services  (particularly  digital 
interfaces  and 
interoperability)  show  serious 
dysfunctions.  Operational  efficiency  is  low  and 
proceedings 
land 
property are very long(83). 

transfer  of 

regarding 

the 

Greece has made substantial efforts to align 
its  insolvency  framework  with  the  OECD’s 

Greece  scores  well 
in  single  market 
transposition and conformity deficits, but the 
SOLVIT  resolution  rate  is  the  lowest  in  the 
EU.  Greece  had  a  transposition  deficit  of  0.5%  in 
2024  and  ranked  5th  out  of  27  Member  States 
(the  EU  average  was  0.8%). 
Its  overall 
performance improved by more than 70% in three 
years.  In  2024,  it  ranked  6th  on  conformity,  with 
0.5%  of  single  market  directives  being  wrongly 
transposed  (the  EU  average  was  0.9%).  However, 
Greece  had  the  second-highest  number  of  single 
market infringement proceedings in 2024 (41 – so 
well  above  the  EU  average  of  24).  Due  to  a 
to  pensions,  Greece 
systemic 

related 

issue 

(82)  Greece | Economy Profile | Business Ready 2024 

(84)  OECD, Enhancing insolvency frameworks to support 

(83)  Greece | Economy Profile | Business Ready 2024 

economic renewal, 8/12/2022. 

45 

 
 
 
resolved  only  26.3%  of  the  SOLVIT  cases  it 
handled  as  the  lead  centre  in  2024  (the  EU 
average  was  84.9%).  However,  Greece  resolved 
more  than  90%  of  its  cases  if  these  pension-
related cases are not taken into account.  

institution  e-EFKA 

Long  delays  with  awarding  Greek  pensions 
cause  serious  problems  to  many  EU  citizens 
who  worked  in  Greece.  There  are  significant 
delays of several years on average with decisions 
on  awarding  pensions  to  mobile  workers  who 
worked in Greece. Similarly, the long delays of the 
to 
Greek  social  security 
communicate  periods  of  contributions  of  mobile 
citizens  in  Greece  to  the  institutions  in  other 
Member  States  mean  that  many  citizens  face 
problems  in  accessing  any  old-age  pension  when 
they reach their retirement age. This situation has 
been  ongoing  for  more  than  a  decade,  seriously 
impacting the rights of thousands of workers who 
have  enjoyed  their  right  of  free  movement  and 
creating a barrier in the Single Market in the form 
of  a  deterrent  for  potential  mobile  workers  from 
taking employment in Greece.   

Greece  remains  one  of  the  OECD  countries 
with  the  highest  barriers  in  the  service 
sector.  According  to  the  latest  OECD  product 
market  regulation  index  (PMR),  Greece  has  the 
highest  barriers  to  entry  and  to  conducting 
business  in  the  services  sector  in  the  EU.  It  also 
scores  badly  on  barriers  to  trade  facilitation, 
assessment  of  impact  on  competition  and  public 
ownership.  Regarding  networks,  Greece  has 
recently opened up but remains restrictive for road 
communications  and  fixed  e-communications. 
According to the OECD’s PMR, impact assessments 
for  proposed  legislation  could  improve.  Written 
guidance is available on how to assess the impact 
of  primary  laws  and/or  secondary  regulations  on 
competition, but not on how to assess the impact 
of  new  primary  laws.  Regulators  are  not  required 
to  include  such  guidance  in  their  assessments. 
There  is  a  requirement  to  conduct  a  regulatory 
impact  assessment  to inform  the  development  of 
new subordinate regulations, but this requirement 
is  subject  to  exemptions.  There  is  an  observatory 
for monitoring the impact of administrative burden 
imposed  on  businesses/citizens. 
It  conducted 
several  measurements  on  specific  processes 
(publicly  available).  However,  it  seems  that  the 
tools developed by the observatory are not linked 
to the impact assessment framework. 

The  2023-2024  OECD  PMR  evaluates  Greece 
as  one  of  the  most  restrictive  countries  in 
the  EU  for  retail  and  access  to  professional 
services. Regulatory barriers to entry are still high 
(particularly  regarding  establishment  of  a  retail 
trade  business).  Barriers  to  competition  include 
restrictions  on  shops’  opening  hours  and  differing 
regulations  in  different  regions.  The  retail  sale  of 
medicines  in  pharmacies  is  strictly  regulated  and 
so  are  online  sales.  Entry  requirements  for 
regulated  professions 
remain  high  and  all 
professions  (except  accountancy)  are  subject  to 
higher  regulatory  requirements  than  the  OECD 
average.  Access 
legal,  architectural  and 
engineering  professions  is  only  allowed  via  a 
single  academic  pathway.  It  is  not  possible  to 
access  the  activity  through  proven  professional 
experience.  Passing  a  professional  examination 
and 
are 
prerequisites 
these  activities. 
Reserved  activities  are  high  for  architects  and 
engineers.  Legal  form  restrictions  are  high  for 
lawyers.  

body  membership 

for  exercising 

professional 

to 

Public procurement  

Reforms  have  been  undertaken  to  improve 
public  procurement,  but  further  measures 
can  still  be  taken.  While  the  share  of  not 
awarded  contracts  decreased  from  17%  to  14% 
between 2023 and 2024, the share of single bids 
has  steadily  increased  since  2021  and  is  well 
above the average in the European Union (Greece 
55%  vs  EU  32%  in  2024)  knowing  however  that 
regarding  2024  data  some  additional  data  is 
missing.  I  Another  factor that  hinders  competition 
is the low use of quality-based criteria, with 85% 
of  contracts  being  awarded  on  the  basis  of  the 
lowest  price.  The  award-decision-making  period 
decreased  slightly  in  2023  on  the  previous  year 
but  has  not  greatly  improved  and  is  still  the 
highest  in  the  EU(85).  The  RRP  proposes  some 
measures  to 
improve  and  streamline  public 
procurement – not only by enhancing digital tools, 
but  also  by  improving  staff  capacities  and  the 
regulatory framework.  

(85)  Access to public procurement | Single Market and 

Competitiveness Scoreboard 

46 

 
 
Table A4.1:  Making Business Easier: indicators. 

*Change in methodology in 2024: reporting late payments from public and private entities separately. 
**Data on single bids for 2024 is provisional and subject to revision. Please note that approximately 30% of the total data is 
currently missing, which may impact the accuracy and completeness of the information. Due to missing data, the EU average of 
direct awards data is calculated without Romania. 
Sources: (1) ECFIN BCS, (2) Eurostat, (3) EIB IS, (4) Digital Decade Country reports, (5) Intrum Payment Report, (6) SAFE survey, 
(7) OECD, (8) up to 2023: Single Market and Competitiveness Scoreboard, 2024: Public procurement data space (PPDS). 

47 

POLICY AREA20202021202220232024EU-27 average4.89.312.37.38.810.04.36.28.814.823.220.20.50.71.32.22.42.318.922.024.024.124.113.4-19.827.838.4-78.8-19.827.838.4-64.0-66.185.798.1-89.3Regulatory environment59.258.451.942.953.924.516.112.813.014.815.115.615.111.913.012.818.915.1from public or private entities in the last 6 months63.654.952.357.0--from private entities in the previous or current quarter----53.847.9from public entities in the previous or current quarter----32.716.616.219.922.921.921.041.60.0470.0460.0460.0450.0500.0501.01.80.40.30.50.81.11.51.30.90.50.990.415.444.159.026.384.949.046.045.044.041.024.44240484955-111117.0GreeceINDICATOR NAMEInvestment climateShortagesMaterial shortage, firms facing constraints, %1Labour shortage, firms facing constraints, %1Vacancy rate, vacant posts as a % of all available ones (vacant + occupied)2InfrastructureTransport infrastructure as an obstacle to investment, % of firms reporting it as a major obstacle3VHCN coverage, %4FTTP coverage, %45G coverage, %4Reduction of regulatory and administrative barriersImpact of regulation on long-term investment, % firms reporting business regulation as a major obstacle3Late paymentsPayment gap - corporates B2B, difference in days between offered and actual payment5Payment gap - public sector, difference in days between offered and actual payment5Share of SMEs experiencing late payments, %*6Single MarketIntegrationEU trade integration, % (Average intra-EU imports + average intra EU exports)/GDP2EEA Services Trade Restrictiveness Index7ComplianceTransposition deficit, % of all directives not transposed8Conformity deficit, % of all directives transposed incorrectly8SOLVIT, % resolution rate per country8Number of pending infringement proceedings8Competition and transparency in public procurementSingle bids, % of total contractors**8Direct awards, %**8Public procurement 
 
 
 
 
 
       
 
ANNEX 5: CAPITAL MARKETS, FINANCIAL STABILITY AND ACCESS TO FINANCE 

(NFCs) 

Against the backdrop of negative net private 
savings and investment over the last decade, 
the  Greek  economy  has  become  increasingly 
reliant  on  borrowing  from  abroad.  The 
underdeveloped  capital  markets  do  not  play  a 
material  role  in  financing  companies,  which  rely 
primarily  on  internal  funding  and  bank  lending. 
Having  strengthened  significantly  their  balance 
sheets  and  resilience  to  risks  since  the  financial 
crisis  starting  in  2009,  banks  improved  their 
capacity  to  fund the economy,  as  reflected  in  the 
very  strong  credit  growth 
to  non-financial 
since  2020.  Subsidised 
companies 
financing  provided  by  the  Greek  recovery  and 
resilience  plan  and  by  the  Cohesion  Fund  also 
serves as an abundant source of cheaper financing 
and will continue to support NFCs for the duration 
of  the  plan.  Public  support  also  exists  for  SMEs 
and  startups  via 
Institutional 
investors are at a very early stage of development 
and  do  not  have  a  material  relevance  for  the 
financing  of  businesses.  Direct  retail  participation 
in  capital  markets  is  very  low,  due  to  both  the 
negative net private savings and a high preference 
liquid  and  safer  assets.  Greece’s  under-
for 
developed  capital  markets  also  reduce  the  exit 
options  for  private-equity  and  venture-capital 
investors.  This  contributes  to  a  less-developed 
domestic  market  for  venture  and  growth  capital, 
further  compounding  the  lack  of  funding  sources 
for 
is  a  key  element  for 
competitiveness. 

innovation,  which 

the  EquiFund. 

Availability and use of domestic 
savings 

The  negative  net  private  savings  and 
investment  balance  in  Greece  over  the  last 
decade,  and  government  deficits  between 
2020-2023 led to increasing borrowing from 
the  rest  of  the  world.  In  2023,  the  private 
savings  ratio,  net  of  fixed  capital  consumption, 
remained negative at -3.7% of GDP, very close to 
its  ten-year  average  of  -3.3%  of  GDP  (see  Graph 
A5.1).  The  net  private  investment  ratio,  which 
measures the net contribution of the private sector 
to  capital  accumulation  in  the  country,  turned 
positive in 2022 for the first time since 2010, but 
fell  markedly  to  0.7%  of  GDP  in  2023.  Over  the 
last  decade,  net  private  investment,  which  was 
negative  from  2011  to  2021,  averaged  the 
equivalent of -2.8% of GDP per year. The return to 

48 

government  budget  deficits  since  the  Covid  crisis 
explains why lending to the government increased 
sizeably  in  the  later  years  and  averaged  2.7%  of 
GDP  in  the  last  decade.  Together,  the  negative 
balance  between  net  private  savings  and  net 
investment,  and  the  positive  average  lending  to 
the government implied that for the last ten years 
the  Greek  economy  borrowed  each  year,  on 
average, the  equivalent  of  3.3%  of GDP  from  the 
rest of the world. 

Graph A5.1: Net savings-investment balance 

Source: AMECO. 

its 

improve 

(negative) 

investments  helped 

Despite  a  structural  net  borrowing  from 
abroad,  a  major  increase  in  privately  held 
the  Greek 
foreign 
economy 
net 
international  investment  position.  As  of  Q3 
2024, total assets on foreigners reached 141% of 
GDP,  up  from  110%  in  2017,  while  liabilities  to 
foreigners stood at 271% of GDP, up from 250% 
in 2017 (see Graph A5.2). As a result, the negative 
net  international  investment  position  (NIIP)  came 
down  from  -140%  of  GDP  in  2017  to  -130%  of 
GDP  as  of  Q3  2024,  showing  that  the  Greek 
economy  remains  a  major  net  borrower  from  the 
the  world.  While  direct  and  other 
rest  of 
investments  abroad  have  been  broadly  stable 
relative 
portfolio 
gross 
investments  abroad 
increased  significantly  by 
33 percentage  points  of  GDP  between  2017  and 
Q3  2024  and  reached  the  equivalent  of  91%  of 
GDP.  During  the  same  period,  the  stock  of  gross 
foreign  direct 
in  Greece 
increased  by  10 percentage  points  up  to  28%  of 
GDP,  while  other  dues  to  foreigners  (primarily 
loans)  rose  by  11 percentage  points  up  to  215% 
of GDP. Thus, overall, despite a net increase in FDI 
in the country, and given its negative net savings, 
the  Greek  economy 
in 
international 
flows  primarily  as  a 
significant financial borrower. 

to  GDP,  Greeks’ 

investments 

involved 

remains 

capital 

(FDI) 

-8-6-4-2024681012142017201820192020202120222023% of GDPPrivate investment, netLending to the governmentPrivate savings, netPrivate savings, grossBorrowing from the rest of the world 
 
     
 
Graph A5.2: International investment position 

Source: ECB. 

Structure of the capital markets and 
size of the financial sector 

2009, has increased substantially since  2013 due 
to bank consolidation. Thus, the five largest banks 
in  Greece  controlled  96%  of  bank  assets  as  of 
end-2023, which much higher than the EU average 
of  54%.  Insurance  corporations,  with  total  assets 
that declined  from the equivalent of 12% of GDP 
at  end-2020  to  9  %  of  GDP  at  end-2023,  stay 
much  behind  the  EU  average  of  55%.  Pension 
funds  are  practically  non-existent.  From  all  non-
bank  financial  intermediaries,  only  investment 
funds  grew  marginally,  reaching  the  modest 
equivalent  of  6.8%  of GDP  at  end-2023,  up  from 
4.6% at end-2020. 

Graph A5.3: Capital markets and financial 
intermediaries 

markets 

remain 
in  Greece. 
listed  equity 

relatively 
Capital 
The  market 
underdeveloped 
capitalisation  of 
the 
reached 
equivalent of 31.3% of GDP at end-2023, which is 
much  below  the  EU  average  of  67%  (see  Graph 
A5.3).  Trading  volumes  on  the  Athens  Stock 
Exchange are low and much concentrated, with the 
top five most traded stocks accounting for 53.8% 
of  the  total  trading  volume  in  2023  (an  EU 
average  of  33.4%).  Non-financial  corporations 
accounted for three quarters of that capitalisation. 
The outstanding volume of debt securities reached 
the equivalent of 61% of GDP at end-2023, which 
is also significantly below the EU average of 137% 
of  GDP. General  government  bonds  accounted  for 
76%  of  the  outstanding  amounts.  The  remainder 
(17%),  non-
was  distributed  between  banks 
financial  corporations  (4%)  and  other  financial 
intermediaries  (3%).  Thus,  the  contribution  of 
capital  markets  in  Greece  to  the  financing  of  the 
domestic economy appears to be rather limited. In 
April  2025,  Greece  passed  a  law  incorporating  a 
set  of  incentives  in  order  to  enhance  its  capital 
market, including facilitating SME’s listings on the 
stock exchange. 

While  banks  remain  the  dominant  actor  in 
the  financial  sector  in  Greece,  their  relative 
size  has  decreased  substantially  lately.  The 
size  of  the  banking  sector  declined  by  60  basis 
points  of  GDP  since  2020  and  reached  the 
equivalent of 141% of GDP in 2023. Foreign banks 
control  only  about  2%  of  the  sector’s  assets. 
Concentration,  which  was  already  higher  even 
before  the  major  financial  crisis  that  started  in 

49 

Source: ECB, EIOPA, AMECO. 

Resilience of the banking sector 

in 

the 

Despite  significantly  improving  its  resilience 
to  risks  over  the  last  years,  the  Greek 
banking  sector  still  has  room  for  further 
progress.  The  aggregate  total  capital  adequacy 
ratio, which grew from 17.1% in 2017 to 19.4% as 
of Q3 2024, remained nevertheless below the EU 
(see  Table  A5.1).  The 
average  of  20.1% 
improvement 
aggregate 
capitalisation by 0.6 percentage points in the first 
three  quarters  of  2024  was  due  to  a  mechanical 
reduction  in  the  provisions  for  expected  losses. 
This accounting operation resulted in a significant 
decline  in  the  coverage  ratio  of  non-performing 
loans  by  provisions  from  45.6%  at  end-2023  to 
38.1%  as  of  Q3  2024,  falling  below  the  EU 
average of 42.1%. At the same time, the common 
equity  tier  1  ratio  declined  from  17%  in  2017  to 
15.6%  as  of  Q3  2024,  which  is  one  percentage 

sector’s 

-400-300-200-100010020020172018201920202021202220232024-Q3% of GDPForeign Direct Investment, AssetsPortfolio Investment, AssetsOther investment, AssetsOfficial reserve assetsForeign Direct Investment, LiabilitiesPortfolio Investment, LiabilitiesOther investment, LiabilitiesNIIPNon-financial corporationsFinancial corporationsNon-financial corporationsMFIsInsurance  and pension fundsOther financialsGovernmentMFIs​Insurance corporationsInvestment funds020406080100120140160Listed equity                   Bonds                        Assets by sector% of GDP 
      
      
point  below  the  EU  average.  As  of  end-2023, 
Greek banks’ aggregate Minimum Requirement for 
Own  Funds  and  Eligible  Liabilities  (MREL)  rate 
stood  at  24.2%  of  risk-weighted  assets,  which 
implied  an  MREL  shortfall  of  5.2  percentage 
points. This suggests that investors still demand a 
high  premium  for  subscribing  to  Greek  banks’ 
long-term debt.  

for 

ratio 

loans 

Over the last years Greek banks managed to 
markedly  strengthen  the  quality  of  their 
assets  and  returned  to  profitability.  The 
overall  aggregate  ratio  of  non-performing  loans 
(NPL), which stood at 45% of in 2017, fell to 3.4% 
as of Q3 2024. Even though this is still above the 
EU  average  of  1.9%,  the  reduction  is  impressive. 
to  non-financial 
The  NPL 
corporations  (3.8%)  was  only  marginally  higher 
than  the  EU  average  (3.5%).  The  main  driver  for 
the  decrease  were  securitisations  using  Hellenic 
Asset  Protection  Scheme,  with  state  guarantees 
given  on  senior  notes.  Even  though  the  NPL 
reduction  was  impressive,  credit  standards  going 
forward  need  to  be  monitored  closely,  given  the 
significant  expansion  in  credit  to  non-financial 
corporations  (NFCs)  over  the  last  five  years. 
Indeed,  the  annual  growth  rate  of  bank  credit  to 
NFCs  averaged  8.1%  since  2020  and  reached 
9.2% as of Q3 2024, which is much above the EU 
average  of  0.8%.  Further  progress  is  needed  as 
regards  non-performing 
loans  to  households, 
which stood at 7.7% as of Q3 2024, as opposed to 
only  2.2%  at 
level.  The  overall 
improvement  in  asset  quality  came  hand  in  hand 
with a return to stable profitability since 2022. As 
of  Q3  2024,  the  return  on  assets  reached  1.2%, 
markedly  above 
the  EU  average  of  0.7%. 
Profitability  is  expected  to  remain  high  going 
forward,  and 
to  support  banks’  aggregate 
capitalisation, given the major compression in the 
cost-to-income  ratio,  which  declined  from  52.7% 
in  2017  to  35.4%  as  of Q3  2024  (EU  average  of 
52.6%). 

the  EU 

lowered  their 
Greek  banks  successfully 
liquidity  risk  and  keep  strong 
liquidity 
positions.  The  banking  sector  is  exposed  to  low 
liquidity funding risk and shows an improving and 
satisfactory  term  adequacy  between  assets  and 
liabilities. Greek banks managed to decrease their 
aggregate  loan-to-deposit  ratio  from  83.5%  in 
thereby 
to  63.8%  as  of  Q3  2024, 
2017 
strengthening 
the  coverage  of  deposits  by 
marketable and more liquid assets. As a result, the 
liquidity coverage ratio, which has been increasing 

50 

over the years, reached 214% at end-2024, more 
than  40  basis  points  above  the  EU  average.  The 
net  stable  funding  ratio  has  also  been  increasing, 
from  124%  at  end-2021  to  139.8%  as  of  Q3 
2024, again above the EU average of 128.8%. 

Sources of business funding and the 
role of banks 

Greek  firms  rely  more  on  bank  funding  and 
less  on  capital  markets  compared  to  the  EU 
average.  More  specifically,  at  the  end  of  2023 
bank  finance  through  loans  constituted  37.3%  of 
all  funding  sources  for  Greek  NFCs,  while  listed 
shares  and  bonds  represented  only  16.1%  of 
funding  sources  (see  Graph  A5.4).  The  equivalent 
figures for the EU average are 27.2% and 23.8%. 
Expressed as a share of GDP, Greek NFCs also rely 
less  on  bank  finance  than  the  EU  average  (bank 
finance through loans for Greek NFCs is equivalent 
to 49% of GDP against an EU average of 60% of 
GDP) and less on listed shares and bonds than the 
EU  average  (listed  shares  and  bonds  of  Greek 
NFCs are equivalent to 20% of GDP against an EU 
average of 40% of GDP). However, this is because 
overall  levels  of  funding  of  NFCs  are  lower  in 
Greece than the EU average (as the overall level of 
NFC funding was 135% in Greece and 230.3% of 
GDP  for  the  EU  average).  Further,  a  sizeable  part 
of  NFCs  is  effectively  excluded  from  capital 
markets  as  their  non-performing 
loans  were 
transferred  from  banks  to  credit  servicers  (EUR 
25.5 billion or 34.1% or of total NPLs in servicers’ 
accounts  in  December  2024).  A  recent  study(86) 
found  a  strong  positive  correlation  between  NPLs 
and  the  prevalence  of  “zombie”  companies  in  the 
that  a  high 
Greek  economy  and 
concentration  of  capital  in  zombie  firms  hinders 
investment  by  healthy  firms  and  prevents  the 
reallocation of capital to more productive uses. As 
regards  Greek  SMEs,  their  use  of  equity  is  low, 
despite 17% of SMEs indicating in the 2024 SAFE 

revealed 

(86)  See “Benefits for the Greek economy from resolving bad 

loans and zombie firms” published on the Economic Bulletin 
of Bank of Greece, July 2024 
(https://www.bankofgreece.gr/Publications/oikodelt202407.p
df) 

 
 
increased  in  2024,  the  overall  stock  of  mortgage 
loans  declined  due  to  high  amounts  of  capital 
repayments  from  mortgages  with  older  vintages. 
Overall,  the  outstanding  mortgages  decreased  by 
7.0%  in  2024.  According  to  the  latest  results  of 
the Bank Lending Survey published by the Bank of 
Greece,  credit  standards  on  loans  to  households 
and  NFCs  ‘remained  basically  unchanged’  in  the 
third quarter of 2024. 

Retail investment in capital markets 

a 

from 

Bank 

is  to: 

strategy 

Reconstruction 

for 
Its  aim 

technical  assistance 

Given  the  degree  of  underdevelopment  of 
capital  markets 
in  Greece,  authorities 
for 
national 
adopted 
strengthening the capital market in February 
2023.  The  strategy  was  developed  with  EU 
the 
support  and 
European 
and 
Development. 
(i)  re-establish 
developed-market  status  for  Greece;  (ii)  create 
more  competitive  and  dynamic  capital  markets; 
and  (iii)  successfully  support  the  development  of 
the  domestic  economy.  The  national  strategy  for 
strengthening  the  capital  market  is  built  on  the 
following six pillars, each of which is dedicated to 
a  specific  area  of  improvement:  (i)  strengthening 
the  regulatory  and  supervisory  framework;  (ii) 
expanding 
and 
developing  the  ecosystem  for  FinTech  companies 
and  the  issuance  of  securities  meeting  economic, 
social and governance (ESG) criteria; (iii) putting in 
place  a  fair  and  transparent  taxation  framework; 
(iv)  improving  the  operating  framework  of  the 
Greek capital markets; (v) encouraging demand for 
investing  in  capital  markets;  and  (vi)  accelerating 
to  promote  financial 
and  deepening  efforts 
literacy.  Regarding  the  first  pillar,  Greece  has 
adopted  the  law  L.  5193/2025  setting  incentives, 
including  facilitating  SME’s  listings  on  the  stock 
exchange. The new law also strengthens the roles 
of  the  supervisors  i.e.,  the  Hellenic  Capital  Market 
Commission  and  the  Bank  of  Greece  to  closely 
monitor the operation of Greek capital market. 

opportunities 

investment 

survey that equity is relevant for them, compared 
with an EU average of 11.7% (87).  

As  a  result,  businesses  in  Greece  depend 
more  on 
internal  financing  than  their 
European  peers.  According  to  the  2024  EIB 
Investment  Survey,  75%  of  Greek 
firms’ 
investment needs are covered by internal funding, 
compared  with  an  EU  average  of  66%.  In  this 
survey,  72%  of  Greek  firms  declared  that  they 
believed  their  investment  activities  over  the  last 
three  years  were  at  about  the  right  amount  (EU 
average:  80%),  while  14%  believed  they  invested 
too  much  (EU  average:  6%).  This  suggests  that 
there  is  no  material  financing  gap  relative  to 
investment  demand  in  Greece.  However,  this  may 
not  be  the  case  for  firms  with  no  or  limited 
capacity  for  internal  funding,  such  as  innovative 
start-up  firms  (see  below  section  on  venture  and 
growth capital). 

Graph A5.4: Composition of NFC liabilities as a % 
of GDP 

Source: Eurostat and FISMA E2 calculations. 

The  improved  balance  sheets  of  banks  and 
their  strengthened  capacity  to  finance  the 
economy  have 
in  a  notable 
resulted 
acceleration  of  the  lending  to  non-financial 
corporations.  The  growth  rate  of  bank  credit  to 
NFCs,  which  peaked  at  12%  in  2022,  reached 
9.2%  as  of  Q3  2024.  However,  net  lending  to 
households,  which  averaged  -2.2%  per  year 
between  2017  and  2023,  remained  negative  at  -
0.7%  as  of  Q3  2024.  While  consumer  credit 
lending  to 
growth  picked  up,  net  mortgage 
households 
the 
monthly  average  gross  flow  of  mortgage  loans 

remained  negative.  Although 

(87)  Data  and  surveys  -  SAFE  -  European  Commission,  2024, 

Results by country, T27. 

51 

050100150200250GREU% of GDPLoansTrade credit and advancesBondsListed sharesUnlisted sharesOther equity 
   
 
Graph A5.5: Composition of households' financial 
assets per capita and as a % of GDP 

Source: Eurostat and FISMA E2 calculations. 

Greek households own fewer financial assets 
than households in other EU Member States, 
both  in  absolute  and  relative  terms.  As  of 
end-2023,  an  average  Greek  household  held 
financial assets of EUR 31 000 (as opposed to an 
EU average of EUR 80 000). Total financial assets 
held  by  households  represented  the  equivalent  of 
143% of GDP, versus an EU average of 210% (see 
Graph  A5.5).  Moreover,  Greek  households  held  a 
significantly  higher  share  of  their  financial  assets 
in  cash  and  deposits  (55%)  than  the  average  EU 
household 
reflects  a 
(32%).  This  outcome 
conservative approach to managing wealth, with a 
strong preference for more liquid and safer assets. 

reduction 

the  subsequent 

There is some scope to increase the level of 
direct  or  indirect  retail  investment  in  Greek 
capital markets. Greek households had negative 
saving  rates  over  the  last  decade,  a  direct 
consequence  of  the  Greek  government-debt  crisis 
and 
in  household 
disposable  income.  For  many  Greeks,  household 
income over the past decade was barely sufficient 
for  basic  needs  and  debt  repayments.  More 
advanced  financial  products  are  available  on  the 
Greek market for retail investors. However, only a 
small  part  of  the  population  shows  an  interest, 
including  because  of  the  severe  impact  of  the 
Greek  crisis  on  the  retail  investors.  Regaining 
clients’  trust  is therefore challenging,  and  general 
interest  in  retail  investment  remains  low  as  of 
today. 

The role of domestic institutional 
investors 

The  small  size  of  institutional  investors  in 
Greece is a limiting factor in their support in 
financing  the  economy.  The  financial  sector  in 
Greece  remains  heavily  dominated  by  banks  (see 
discussion  above).  As  of  end-2023,  institutional 
investors altogether represented, in terms of total 
assets, slightly above 10% of the financial sector. 
As  of  Q3  2024,  based  on  EIOPA  data,  insurance 
corporations held their total assets of EUR 19.6 bn 
in  government  bonds  (39%),  investment  funds 
(31%),  corporate  bonds  (17%),  equity  (5%)  and 
other assets (8%). Thus, their direct contribution to 
financing the private economy is very limited. 

Investment  funds  are  experiencing  rapid 
growth in Greece albeit from a very low base. 
Their  so-far  limited  market  penetration  can  be 
attributed  to  several  factors,  including  the  strong 
preference  of  Greek  retail  investors  for  bank 
deposits and a low savings rate in the last decade. 
Pension  funds  (voluntary  schemes)  are  practically 
inexistent, as Greeks traditionally rely on  the pay-
as-you-go  ‘pillar  1’  pension  system  for  their 
retirement.  Encouraging  the  build-up  of  universal 
funded  supplementary  pension  schemes  would 
positively  contribute  to  (i)  the  sustainability  and 
adequacy  of  pension  benefits;  (ii)  investment  in 
equity;  (iii)  access  to  finance;  (iv)  growth;  and  (v) 
innovation. 

The depth of venture and growth 
capital  

The  local  Greek  private-equity  and  venture-
The 
capital  markets  are  undeveloped. 
combined  value  of  annual  private-equity  and 
venture-capital  investment  relative  to  nominal 
GDP in Greece was 0.19% and 0.01% respectively 
in  2023,  much  lower  than  the  equivalent  EU 
averages  (0.41%  and  0.05%).  Private-equity  and 
venture-capital  investment  have  decreased  since 
their  peak  in  2021  at  0.41%  and  0.04%  of  GDP. 
This  under-developed  market  for  venture  and 
growth capital points to a financing gap for early-
stage  innovative  firms  in  need  of  capital  (See 
Annex 3).  

52 

0501001502002500102030405060708090GREUGREUper capita (000 EUR) (lhs)% of GDP GDP (rhs)Currency and depositsInsurance and pension fundsInvestment fundsBondsListed sharesUnlisted sharesOther equityHH Debt (liability) 
      
 
Financial literacy  

overall 

(90),  the  Eurobarometer  survey 

Financial  literacy  in  Greece  is  below  the  EU 
average,  although  the  government  has 
developed  plans  to  address  this  problem. 
Although  Greece’s 
financial-literacy 
indicator of 45 is close to an EU average score of 
(91)  on 
45.5 
financial  knowledge  shows  that  only  19%  of 
Greeks  achieved  the  highest  score,  while  52% 
achieved a medium score, and the remaining 29% 
a low score. This compares with an EU average of 
26%  for  the  highest  score,  50%  for  the  medium 
score, and 24% for the low score. Greece has the 
lowest  score  on  using  digital  financial  services 
(such  as  online  banking  or  mobile  payments), 
where  only  63%  are 
'very  comfortable'  or 
'somewhat  comfortable'  in  using  them,  compared 
with the highest score of 95% in Finland and 77% 
in  the  EU  overall.  Financial  literacy  is  crucial  for 
both  promoting  retail-investor  participation 
in 
capital  markets  and  familiarising  SMEs  with 
financing.  To  enhance 
alternatives 
financial 
literacy,  authorities  have  adopted  a 
national  strategy,  based  on  the  findings  of  OECD 
financial  literacy  survey.  A  set  of  new  initiatives 
are  being  implemented,  which  are  targeting  both 
underaged groups and adults. 

to  bank 

State-sponsored initiatives to facilitate non-
bank  financing  have  had  some  success  in 
mobilising private investment. The Greek start-
up  scene  received  a  significant  boost  with  the 
establishment  of  EquiFund  (88),  a  fund-of-funds 
programme  formed  in  2023  by  a  public-private 
partnership  between  the  Greek  government  and 
the  European  Investment  Fund  (EIF).  EquiFund 
spurred  the  initiation  of  Greek  venture-capital 
firms,  and  EquiFund-supported  venture-capital 
investors  have  made  139  investments  in  Greek 
start-ups with a total  of EUR 366 million invested 
since  2023.  In  2024,  a  new  EquiFund  II  initiative 
was  allocated  an  additional  EUR  200 million,  co-
financed  by  the  Cohesion  Policy  Funds  and 
national resources managed by the EIF. In addition, 
one  pillar  of  the  EUR  17.7  billion  loan  facility  of 
the Greek recovery and resilience plan will be used 
to help small businesses to scale up. 

Financing the green transition  

The  financing  needs  for  the  green  transition 
in  Greece  are  predominantly  supported  by 
various  public  schemes.  Of  the  EUR 35.95 bn 
Greek  recovery  and  resilience  plan,  38.1%  is 
allocated  to  the  green  transition.  In  addition, 
Greece  will  benefit  from  grants  amounting  to 
EUR 1.38 billion from the Just Transition Fund, the 
main aim of which is to alleviate the impact of the 
energy  and  climate 
local 
economy and society.  

transition  on  the 

The  issuance  in  Greece  of  bonds  with  ESG 
objectives  remains  well  below  levels  in  peer 
EU countries (89). The Greek government has not 
yet  issued  any  type  of  ESG  bond,  as  it  prioritises 
regular  bond  issuances  to  boost  liquidity  and 
increase  the  tradeable  share  of  its  portfolio  of 
bonds. By January 2025, there were only five ESG 
bonds traded on the Athens Stock Exchange.  

(88)  For more details, see EquiFund. 

(90)  See Indicator 27(c) Average Score of Commission staff 

working document: Monitoring progress towards a capital 
markets union: a toolkit of indicators - 2024.  

(89)  Source: AFME CMU Key Performance Indicators, Seventh 

(91)  Source: Monitoring the level of financial literacy in the EU - 

Edition, November 2024. 

July 2023 - Eurobarometer survey. 

53 

 
 
 
Table A5.1:  Financial sector indicators 

(1) Annualised data. Credit growth and pension funds EU data refers to the EA average. 
Source: ECB, ESTAT, EIOPA, DG FISMA CMU dashboard, AMECO. 

54 

20172018201920202021202220232024-Q3EUTotal assets of MFIs (% of GDP)169.9162.0167.2200.6177.9157.6140.8134.2248.4Common Equity Tier 1 ratio17.015.316.215.013.614.415.515.616.6Total capital adequacy ratio17.116.017.316.716.217.418.819.420.1Overall NPL ratio (% of all loans)45.041.635.526.58.66.25.03.41.9NPL (% loans to NFC-Non financial corporations)51.446.138.231.015.29.37.03.83.5NPL (% loans to HH-Households)47.146.543.537.412.011.18.37.72.2NPL-Non performing loans coverage ratio46.748.044.544.942.746.645.638.142.1Return on Equity1-1.3-0.40.7-7.9-20.112.712.012.510.0Loans to NFCs (% of GDP)46.242.236.339.631.230.429.529.130.0Loans to HHs (% of GDP)53.448.343.140.825.620.818.516.844.5NFC credit annual % growth0.30.31.810.23.212.06.09.20.8HH credit annual % growth-2.0-2.2-2.7-2.0-2.1-2.3-1.9-0.70.7Stock market capitalisation (% of GDP)22.917.524.523.426.925.031.332.769.3Initial public offerings (% of GDP)0.000.000.000.000.000.180.00-0.05Market funding ratio21.523.225.625.932.230.229.6-49.6Private equity (% of GDP)0.050.040.050.110.410.080.19-0.41Venture capital (% of GDP)0.000.020.010.010.040.030.01-0.05Financial literacy (composite)------45.0-45.5Bonds (as % of HH financial assets)1.21.31.31.21.51.62.8-2.7Listed shares (as % of HH financial assets)2.42.52.92.93.43.34.1-4.8Investment funds (as % of HH financial assets)3.02.72.92.93.73.34.5-10.0Insurance/pension funds (as % of HH financial assets)5.76.36.46.86.65.95.8-27.8Total assets of all insurers (% of GDP)9.59.410.211.911.29.09.18.854.8Pension funds assets (% of GDP)--0.91.01.00.91.01.023.41-34-1011-1718-2425-27Colours indicate performance ranking among 27 EU Member States.Banking sectorNon-banks sector 
 
 
 
     
 
ANNEX 6: EFFECTIVE INSTITUTIONAL FRAMEWORK 

is 

Greece’s  institutional  framework  influences 
its  competitiveness.  Trust  in  Greece’s  public 
institutions,  particularly  in  its  justice  system  and 
the  government, 
low.  Greece  has  made 
substantial  progress  in  the  provision  of  digital 
public  services  for  businesses  but  still  lags  in 
providing such services to citizens. Greece also has 
significant  scope  to  improve  transparency  and 
regulatory  practices,  minimise  administrative 
burdens  and  simplify  legislation.  Although  Greece 
has  been  extensively  reforming  its  civil  service  to 
boost  productivity,  it  still  faces  key  challenges  in 
embedding  a  culture  of  life-long  learning  in  the 
public  administration.  The  justice  system  also 
continues  to  face  serious  challenges  affecting  its 
overall efficiency, in particular regarding the length 
of proceedings. 

Public perceptions 

Graph A6.1: Trust in justice, regional / local 
authorities and in government 

EU27 from 2019; EU28 before 
Source: Standard Eurobarometer surveys 

institutions 

is  between  trust 

Trust  in  public  institutions  is  below  the  EU 
average. The widest  gap in trust  across Greece’s 
national 
in  the 
judiciary  and  trust  in  central  government  (Graph 
A6.1).  When  asked  about  improvements  that  can 
increase  trust  in  Greece’s  public  administration, 
63%  of  citizens  pointed  to  less  bureaucracy  (EU: 
52%),  44% to more transparency  about  decisions 
and the use of public money (same as in the EU), 
and 44% to better skilled civil servants (EU: 30%) 

(92). The perceived quality of government has seen 
improvements in most regions, although it remains 
below  the  EU  average (93).  The  government  is 
aiming  to  simplify  the 
legal  framework  for 
regional  and local  administration (94) and increase 
their accountability through open data.  

Quality of legislation and regulatory 
simplification 

for 

and 

regulations 

Performance  in  developing  and  evaluating 
legislation  remains  below  the  EU  average.  It 
is  generally  stronger  for  primary  laws  than  for 
public 
subordinate 
consultation. Performance in ex post evaluation of 
legislation  shows  a  visible  gap  with  the  EU 
average,  with  weaker  methodology,  systematic 
adoption,  transparency,  oversight  and  quality 
controls 
for  both  primary  and  subordinate 
legislation.  There  is  also  scope  to  improve  the 
above-mentioned 
regulatory 
impact  assessments,  especially  for  subordinate 
regulations (Graph A6.2).  

rules  governing 

Graph A6.2: Indicators of Regulatory Policy and 
Governance (iREG) 

Source: OECD (2025), Regulatory Policy Outlook 2025 and 
Better Regulation across the European Union 2025 
(forthcoming). 

(92)  Understanding Europeans’ views on reform needs - April 
2023 - Eurobarometer survey. Country Fact Sheet. 

(93)  Inforegio - European Quality of Government Index. 

(94)  Law 5013/2023. link.  

55 

00.10.20.30.40.50.60.7AutumnSpringAutumnSpringAutumnSpringAutumnSpringAutumnSpringAutumnSummerWinterSummerWinterSpringAutumnSpringAutumn2014201520162017201820192020202220232024Justice,  legal system EU27Justice,  legal system ELRegional or local public authorities EU27Regional or local public authorities ELGovernment  EU27Government  EL0.00.51.01.52.02.53.03.54.0Primary lawsSubordinateregulationsPrimary lawsSubordinateregulationsPrimary lawsSubordinateregulationsEL_StakeholderengagementEL_Regulatory ImpactAssessmentEL_Ex-post evaluation oflegislationMethodologySystematic adoptionTransparencyOversight and quality control2021EU-27 
 
     
       
 
 
 
 
Table A6.1:  Selected indicators on administrative burden reduction and simplification 

(1) This table presents a subset of iREG indicators focusing on regulatory costs. The indicators refer to primary legislation. 
Source: OECD (2025), Regulatory Policy Outlook 2025 [https://doi.org/10.1787/56b60e39-en] and Better Regulation across the 
European Union 2025 (forthcoming). 

legislation 

The  quality  of 
is  negatively 
impacted by the very short time for adopting 
laws  (Graph  A6.3),  the  incorporation  of  last-
minute  amendments  and  the  addition  of  issues 
unrelated 
subject-matter  of  draft 
legislation, as reported by stakeholders (95).   

the 

to 

identifying  administrative  burdens  (table  A6.1). 
Efforts are ongoing for systematic updates of the 
National  Registry  of  Administrative  Procedures 
“MITOS”.  

Graph A6.3: Median time for law adoption in 
parliament (days) 

of 

Legal 

Secretariat-General 

Recent simplification efforts aim at codifying 
and  setting  up  complaints  portals.  In  2024, 
the 
and 
Parliamentary  Affairs,  a  unit  of  the  Presidency  of 
Government,  produced  a  manual  on 
legal 
codification (96).  Moreover,  a  national  codification 
portal  was  established (97). 
the 
government has established a procedure for filing 
complaints 
regarding  citizen  and  consumer 
services.  It  has  launched  a  digital  complaints 
portal  for  this  purpose,  however  not  all  public 
services  are  covered (98).  However,  there  remains 
visible  scope  for  Greece  to  further  strengthen  its 
regulation  and 
mechanisms 

for  simplifying 

In  addition, 

(95)  See the 2024 country-specific chapter for Greece of the Rule 

of Law Report, pp. 25-26. 

(96)  https://gslegal.gov.gr/egcheiridio-methodologias-gia-tin-kodi/ 

(97)  https://gslegal.gov.gr/ethniki-pyli-kodikopoiisis/ 

(98)  https://www.gov.gr/ipiresies/polites-kai-

kathemerinoteta/kataggelies 

Source: European Commission based on national 
parliament's websites 

56 

0102030405060708090ELEU-27Ex ante impact assessment of legislationEx post evaluation of legislationIdentify and assess the impacts of the baseline or ‘do nothing’ option.Is required to consider the consistency of regulations and address areas of duplication.Identify and assess the impacts of alternative non-regulatory options.Is required to contain an assessment of administrative burdens.Quantify administrative burdens of new regulations.Is required to contain an assessment of substantive compliance costs.Quantify substantial costs of compliance of new regulations.Compares the impact of the existing regulation to alternative options.Assess macroeconomic costs of new regulations. Periodic ex post evaluation of existing regulations is mandatory.Assess the level of compliance.Government uses stock-flow linkage rules when introducing new regulations (e.g., one-in one-out).Identify and assess potential enforcement mechanisms.A standing body has published an in-depth review of specific regulatory areas in the last 3 years.In the last 5 years, public stocktakes have invited businesses and citizens to assess the effectiveness, efficiency, and burdens of legislation.When developing new legislation, regulators are required to …Yes /  For all primary laws For major primary laws For some primary lawsNo / Never 
 
  
 
  
 
Table A6.2:  Key Digital Decade targets monitored through the Digital Economy and Society Index 

Source: State of the Digital Decade report 2024 

Social dialogue 

Efficiency of selected administrative 
procedures 

The  lack  of  an  institutionalised  setting  for 
social  dialogue  in  Greece  weighs  on  the 
involvement  of  social  partners  in  designing 
and  implementing  policies.  Social  partners  rely 
on  existing  bodies  or  on  ad-hoc  consultation 
processes  for  their  involvement  in  shaping  policy 
initiatives. Social partners report that this form of 
consultation  is  superficial  and  not  effective,  and 
that their proposals are rarely seriously considered 
in the formulation of policies. Challenges also exist 
the 
in 
the 
the 
and 
authorities 
implementation of policies (99). 

information  exchange  between 
on 

partners 

social 

Proper and systematic involvement of social 
partners  (including  regional  and  sectoral 
ones)  and  building  capacity  is  key  for  the 
successful 
implementation  of  economic, 
labour  market  and  social  policies.  For  the 
period  2021-2027,  Greece  allocated  over  EUR  44 
million from the European Social Fund+ to support 
capacity building of social partners. 

permits 

(see  also  Annex 4), 

Selected  indicators  point  to  Greece’s  public 
administration  taking  longer  to  complete 
administrative  procedures  compared  to  the 
EU  average.  While  Greece  has  made  progress  in 
reducing the burden involved in obtaining licences 
and 
certain 
administrative  procedures  still  take  a  long  time. 
For  example,  the  mean  time  for  decision-making 
by  public  buyers,  measured  as  the  time  between 
the  deadline  for  receiving  offers  and  the  date  of 
the  contract  award,  is  well  above the  EU  average 
(212 days  in  Greece  compared  to  an  EU  average 
of  99 days),  thus  contributing  to  uncertainty  for 
companies.  Moreover,  the  B-READY  indicators (100) 
show considerable potential for cutting the time it 
takes  to  obtain  a  property  transfer  or  building 
permit,  receive  a  VAT  refund,  or  be  paid  under  a 
government  contract.  Lastly,  although  the  OECD 
product  market  regulation  indicators  show  that 
Greece has adopted some of the best practices to 
reduce  the  burden  involved  in  obtaining  licences 
and  permits,  there  is  still  scope  for  Greece’s 
licensing  system  to  be  further  aligned  with  best 
practices, e.g. by regularly assessing whether such 
licences and permits are still required or should be 
withdrawn. 

(99)  For  an  analysis  of  the  involvement  of  Greece’s  social 
partners at national level in the European Semester and the 
Recovery  and  Resilience  Facility,  see  Eurofound  (2025), 
National-level  social  governance  of  the  European  Semester 
and the Recovery and Resilience Facility. 

(100) World Bank. 2024. Business Ready 2024. Washington, DC: 

World Bank. doi:10.1596/978-1-4648-2021-2. 

57 

Digital Decadetarget by 20302022202320242024EU-27Digitalisation of public services152657679100Score (0 to 100)20212022202320232030248748685100Score (0 to 100)202120222023202320303na617479100Score (0 to 100)20212022202320232030GreeceEU-27Digital public services for citizensDigital public services for businessesAccess to e-health records 
 
 
 
   
 
Digital public services 

Greece  has  made  significant  progress  in 
moving  public  services  online.  Digital  public 
services for businesses scored 86.2, above the EU 
average  of  85.4,  presenting  a  recent  annual 
growth of 17.0%, while  the EU  average growth is 
2.0%.  Services  for  citizens  scored  75.9,  which  is 
below  the  EU  average  of  79.4  (Table A6.2),  but 
they  are  also  demonstrating  a  very  strong 
progress,  with  an  annual  growth  of  17.5%, 
compared  to  3.1%  in  the  EU.  As  part  of  its 
recovery and resilience plan, Greece is working on 
a major project to help public sector organisations 
exchange data for use in services more easily.  

The  rate  of  digital  service  use  in  Greece  is 
quite  high.  In  2024,  76.3%  of  people  used  e-
government  services,  above  the  EU  average  of 
74.7%, however room for improvement still exists. 
The number of eID users in Greece, at 66.4%, also 
exceeds the EU average (40.7%) (101). This may be 
because  a  high  degree  of  support  and  mobile-
friendly  options  are  provided  to  e-government 
users  in  Greece.  A  digital  assistant  chatbot  called 
mAIgov  also  helps  people  interact  with  public 
services.  Nevertheless,  access  to  e-health  records 
could be improved, despite significant progress by 
Greece which achieved 21.6%, compared to an EU 
average of 10.6%.  

Greece  is  also  working  to  make  its  digital 
services  accessible  from  other  EU  countries. 
It  is  introducing  a  new  ID  card  for  Greek  citizens, 
which will help with the roll out of the national eID 
scheme.  Tests  with  other  EU  countries  are 
currently  underway.  However,  Greece  has  not  yet 
set up and notified eID schemes for legal persons 
under  the  eIDAS  Regulation  (102).  This  means  that 
Greek  businesses  cannot  authenticate  themselves 
to  access  public  services  provided  by  other 
Member  States,  including  those  enabled  by  the 
Once-Only  Technical  System  (103),  part  of  the  EU 
Single Digital Gateway. 

Greece  is  making  good  progress  towards 
seamless,  automated  exchange  of  authentic 

(101) European Commission. Digital Decade 2024: Country reports. 

documents  and  data  across  the  EU.  It  has 
already  successfully  tested  its  first  transactions 
through  the  Once-Only  Technical  System(104). 
Greece  is  in  the  process  of  connecting  the  first 
authorities. 

Civil service  

of 

recruitment, 

Greece  has  been  extensively  reforming  its 
civil  service  to  boost  the  productivity  of  its 
public  administration.  Its  reforms  cover  the 
streamlining 
professional 
development  plans  for  civil  servants  and  new 
upskilling  programmes.  Moreover,  Greece  has 
introduced new job profiles, such as policy analyst, 
law-making  expert,  digital  policy  officer.  With 
support from the recovery and resilience plan, the 
National  Centre  for  Public  Administration  and 
Local  Government  (EKDDA)  has  prepared  and 
regularly runs a wide range of training courses for 
civil servants including training in digital skills (105). 
However, there remains a significant gap with the 
EU-27  in  the  rate  of  participation  of  public 
administration  employees  in  lifelong  learning  (EL 
5%, EU-27 18.9%) (106). 

In  2024,  under  the  recovery  and  resilience 
plan,  the  government  put  in  place  new 
remuneration  and  performance  management 
systems.  It  is  working  to  advance  competency-
based  and  data-informed  staff  management.  To 
address the rapidly ageing public sector workforce, 
recruitment 
the  government  has 
competitions  based  on  a  ‘one-out-one-in’  or  ‘one-
to-one’  principle.  These  recruitment  competitions 
have, however, suffered major delays.  

launched 

Integrity 

A  far  higher  percentage  of  companies  than 
the  EU  average  consider  corruption  to  be 

(104) European Commission, Once-Only Technical System 

Acceleratormeter 

(105)

(102) European Commission, eIDAS Dashboard. 

https://www.ekdd.gr/images/seminaria/katalogos_progr

(103) European Commission, The Once Only Principle System: A 

breakthrough for the EU’s Digital Single Market 

ammaton_epimorfosis.pdf) 

(106) Eurostat, 2025, EU Labour Force Survey. 

58 

 
 
 
 
widespread  and  a  problem  when  doing 
business.  In  Greece,  97%  of  companies  consider 
that  corruption  is  widespread  (EU  average  64%), 
while  70%  consider  that  corruption  is  a  problem 
when  doing  business  (EU  average  36%) (107). 
Moreover,  only  13%  of  companies  believe  that 
people and businesses caught for bribing a senior 
official  are  appropriately  punished  (EU  average 
31%) (108).  Few  high-level  corruption  cases  result 
(109). 
in  prosecutions  and 
Moreover,  no  convictions  involving  sanctions  have 
been  brought  for  foreign bribery  up to  2024  (110). 
According  to  the  prosecution  services,  there  are 
still  challenges  in  relation  to  obtaining  evidence 
through  judicial  or  administrative  assistance,  the 
length  of  preliminary  investigations  in  complex 
cases,  and  risks  of  confidential  information  being 
leaked to the media (111).  

judgments 

final 

in 

to 

system 
integrity 

The  government  is  developing  an  integrated 
increase 
risk  management 
transparency  and 
public 
procurement,  which  is  still  considered  as  a 
high-risk area in Greece. 54% of companies (EU 
average 27%) think that corruption has prevented 
them  from  winning  a  public  tender  or  a  public 
procurement  contract  in  practice  in  the  last  three 
years  (112).  Other  high-risk  areas  appear  to  be 
civil  protection, 
healthcare, 
according 
Public 
the  Hellenic 
Procurement  Authority.  Greece  is  developing  an 
integrated  risk  management  system  to  increase 
transparency  and  integrity  in  public  procurement 
(113).  Furthermore,  Greece  has  planned  an  ex-post 
evaluation  of 
the  National  Strategic  Anti-
Corruption  Action  Plan  2022-2025  including  the 
National  Integrity  System  (NIS).  An  Information 
System  for  the  Management  of  Audits  and 
Inspections is also under development. In addition, 

education  and 

Single 

to 

(107) Flash Eurobarometer 543 on businesses’ attitudes towards 

corruption in the EU (2024).   

(108) Ibid. 

(109) See the 2024 country-specific chapter for Greece of the Rule 

of Law Report, pp. 11-12. 

(110) OECD (2024), Phase 4 Two-Year Written Follow-Up Report, 
pp. 4- 5. See also the 2024 country-specific chapter for 
Greece of the Rule of Law Report, p. 12. 

to enhance integrity in the public sector, Greece is 
currently  revising  and  modernizing  its  Disciplinary 
Law  for  Civil  Servants  to  simplify  and  accelerate 
disciplinary procedures. The existing “e-peitharxika” 
platform,  an  electronic  database  for  registration 
and  follow-up  of  disciplinary  cases  in  the  public 
sector, will also be upgraded. 

As  with  most  Member  States,  Greece  is 
implementing  lobbying  rules,  however  the 
number  of  entries  in  its  lobbying  register 
remains low. Greece’s lobbying register has been 
in  operation  since  December  2022.  It  was  made 
publicly  accessible  in  July  2024,  at  which  time  it 
had  only  20  registrations,  a  slight  increase  from 
17 entries in December 2023 (114). 

Justice 

the 

regarding 

The  justice  system  continues to  face  serious 
challenges  as  regards  its  overall  efficiency, 
length  of 
in  particular 
proceedings.  The  disposition  time  in  civil  and 
commercial  cases  at  first  instance  courts  has 
further increased (771 days in 2023 compared to 
746  in  2022)  and  remains  among  the  longest  in 
the  EU.  Administrative  justice  is  also  faced  with 
delays, despite some improvements in the ordinary 
administrative courts (439 days in 2023 compared 
to  464  in  2022).  Efforts  have  been  made  to 
reduce the length of proceedings, including as part 
of Greece’s recovery and resilience plan. Efforts to 
improve  the  quality  of  the  justice  system  are 
ongoing, including the level of digitalisation which 
increases  progressively.  The  courts  continue  to 
make  only  limited  use  of  digital  tools  and  still 
have  very  few  electronic  communication  tools 
available  to  them,  while  judges  and  clerks  are 
being  trained  in  new  technologies.  No  procedural 
rules  are 
incorporating  digital 
technologies  into  administrative  justice  (115).  As 
regards 
independence,  no  systemic 
deficiencies have been reported. (116) 

in  place  for 

judicial 

(111) See the 2024 country-specific chapter for Greece of the Rule 

(114) Ibid. pp. 16-17. 

of Law Report, pp. 11-12. 

(112) Flash Eurobarometer 543 on businesses’ attitudes towards 

corruption in the EU (2024).   

(113) Ibid., pp. 18-19. 

(115) See the upcoming 2025 Justice Scoreboard. 

(116) For more detailed analysis of the performance of the justice 
system  in  Greece,  see  the  upcoming  2025  EU  Justice 
Scoreboard and the 2024 Rule of Law Report. 

59 

 
 
 
SUSTAINABILITY 
ANNEX 7: CLEAN INDUSTRY AND CLIMATE MITIGATION 

Greece faces significant challenges regarding 
its clean industry transformation and climate 
mitigation: it has limited manufacturing capacity 
in  net-zero  technologies  and  a  lack  of  policy 
framework 
to  support  domestic  production. 
Although  Greece  possesses  mining  potential  for 
critical  raw  materials,  achieving  the  EU's  self-
sufficiency targets requires substantial investment 
and support. On climate mitigation, while there has 
been  progress  in  reducing  emissions  intensity, 
in  decarbonizing 
further  efforts  are  needed 
energy-intensive  industries.  Additionally,  Greece's 
transition  to  a  circular  economy  lags  behind,  with 
low  waste  recycling  rates and  an  urgent  need  for 
circular  economy 
increased 
initiatives. This annex reviews the areas in need of 
urgent  attention  regarding  the  clean  industry 
transition and climate mitigation in Greece, looking 
at different dimensions. 

investments 

in 

Strategic autonomy and technology 
for the green transition 

Net zero industry 

Greece  manufacturing  capacity  across  all 
net-zero  technologies  remains  modest  (117). 
Greece’s  manufacturing  capacity  amounts  to 
between  5.3  and  11  GWh/y  (2-5%  of  total  EU 
capacity) for battery and storage technologies and 
between  500  and  550 MW/y  (1%  of  EU  capacity) 
for  wind  turbine  towers.  For  grid  technologies, 
Greece’s  capacity  is  expected  to  grow  as  Hellenic 
Cables, a leading cable manufacturer, has invested 
over EUR 280 million over the past decade to build 
cutting-edge  production  and  storage  facilities  for 
submarine cable systems. The cable industry could 
also  benefit  from  the  promising  market  outlook 
with  high  demand  across  both  onshore  and 
offshore  projects.  Greece 
tech 
production  facilities,  with  no  production  of  solar 
panels, heat pumps or electrolysers. 

lacks  clean 

Greece  has  not  developed  yet  a  policy 
incentives  to 
investment 
framework  nor 

(117) European Commission: Directorate-General for Energy, The 
net-zero manufacturing industry landscape across the 
Member 2025, https://data.europa.eu/doi/10.2833/2181110  

60 

its 

net-zero 

support 
technologies 
manufacturing.  Greece  could  boost  its  role  in 
some  tech  domains  where  it  has  production 
facilities.  The  Greek  recovery  and  resilience  plan 
also  includes  flagship  projects  in  GRID  connection 
via  submarine  cables,  and  there  is  a  promising 
market outlook which the cable industry could take 
advantage of. 

Transformation of the car industry 

Greece  does  not  have  a  significant  car 
industry  and  petrol-powered  cars  still  make 
the  bulk  of  the  cars  circulating  in  the 
country.  The  automotive  industry  in  Greece  is 
relatively small and not a major contributor to the 
national  economy  compared  to  other  European 
countries. Greece is among the EU Member States 
with  the  highest  share  of  petrol-powered  cars, 
which  correlates  with  the  low  availability  of 
charging  points  for  electrified  vehicles.  In  2023, 
77.7%  of  new  car  registrations  were  of  petrol-
powered cars (including hybrids). This was at least 
partially a consequence of the very low availability 
of electric charging points in Greece (118). 

Critical raw materials 

Greece  is  a  mining  country  and  shows  a 
moderate  degree  of  import  concentration.  In 
2023,  Greece  scored  0.22  on 
import 
concentration  index,  in  line  with  the  EU  average 
(119).  The  Mining  Contribution  Index  ranks  Greece 
75th  out  of  183  countries,  with  Greece  being  a 
leading  producer  of  aluminium,  nickel,  perlite, 
pumice, bentonite and chromium. 

the 

The  revised  2024  national  energy  and 
climate plan proposes a roadmap for critical 
raw  materials.  More  than  15  raw  materials 

(118) Interactive map – Correlation between electric car sales and 
charging point availability (2023 data) - ACEA - European 
Automobile Manufacturers' Association 

(119) The concentration index measures how much a country relies 
on a number of partner countries for a basket of critical raw 
materials.  Higher  values  indicate higher  import  dependency: 
a  value  of  0.25  indicates  a  high  dependency;  0.15-0.25 
indicates  a  moderate  degree  of  dependency;  and  values 
under 0.15 indicate low import dependency. 

 
 
 
 
 
 
 
included  in  the  List  of  Strategic  and  Critical  Raw 
Materials  have  been  identified,  with  potential  for 
(120).  The 
more  exploitation 
roadmap  under 
preparation  focuses  on  mining  exploration/mining 
research as well as on the exploitation of Greece’s 
mining potential.  

plans 

Mining  research  is  both  public  and  private. 
The  Hellenic  Authority  for  Economic  and  Mining 
research 
Research 
programmes  and  mining  exploration.  For  private 
mining research, Greek authorities are considering 
the  possibility  of  granting  more  exploration 
licences. 

implements 

and 

tenders 

Greece  plans  to  grow  its  mining  industry  by 
over  400%  within the next 6-7  years to  help 
the  EU  increase  self-sufficiency  in  critical  raw 
materials  to  10%  by  2030.  The  Ministry  of 
launch  annual 
Environment  and  Energy  will 
and 
international 
exploitation rights, with a focus on critical mineral 
metals.  Over  120  potential  mining  projects  are 
being  assessed,  with  the  evaluation  process 
accelerated to meet the 10% target. Greece states 
that  these  mining  projects  need  EU  funding  and 
estimates that 8 to 10 years are needed to bring a 
mining project from exploration to production.  

exploration 

for 

One of the 47 strategic projects approved by 
the  European  Commission  under  the  Critical 
Raw  Materials  Act  (CRMA)  is  Greek.  On  25 
March  2025,  the  European  Commission  officially 
recognised  a  new  industrial  investment  in  Greece 
for  the  development  of  an  integrated  production 
line for bauxite/alumina/aluminium and gallium as 
a strategic project.  

Energy-intensive industries are suffering due 
to  high  energy  prices,  but  production  only 
decreased  for  chemical  and  paper  products. 
In 2022, energy-intensive industries accounted for 
3.9%  of  Greece’s  gross  value  added,  well  above 
the  EU  average,  and  represented  a  large  part  of 
electricity  consumption.  Production 
these 
industries  has  increased  by  5%  on  average  since 
2021. 

in 

Reducing  CO2  emissions  from 
industrial 
processes  will  be  challenging,  but  measures 
are  being implemented  to facilitate  this. CO2 
emissions from industrial processes (2/3 of which 

(120) National energy and climate plans 

61 

come  from  the  production  of  building  materials) 
will  be  reduced  in  the  medium  term  through  the 
capture  of  emitted  CO2, 
its  use  to  produce 
synthetic  fuels,  and  through  geological  storage. 
However,  the  complete  elimination  of  these 
emissions by 2050 seems difficult to achieve. The 
Greek  recovery  and  resilience  plan  contains 
measures aimed at developing the grid to support 
increased  electricity  production,  from  solar  and 
wind,  and  some  pilot  projects  for  carbon  capture 
and  storage.  There  are  currently  80  biogas power 
plants in operation, but no biomethane production 
in the country. 

Climate mitigation 

Industry decarbonisation 

Manufacturing  in  Greece  emits  relatively 
large  amounts  of  greenhouse  gases  per  unit 
produced. 22 % of Greece’s total greenhouse gas 
emissions  come  from  manufacturing (121). 
Its 
manufacturing sector is the fourth most emissions 
intensive industry in the EU, with 680 g CO2eq of 
greenhouse  gases  per  euro  of  gross  value  added 
(GVA),  2.5  times  the  EU  average.  Between  2017 
and  2022,  the  greenhouse  emissions  intensity  of 
Greece’s  industry  declined  by  44 %,  more  than 
twice than in the EU overall. Two thirds of Greece’s 
manufacturing  greenhouse  emissions  come  from 
industrial processes and product use, and the rest 
are  energy  related.  In  the  EU,  these  shares  are 
42% and 58%. 

Manufacturing  in  Greece  is  benefiting  from 
energy  efficiency 
improvements,  but  the 
effects  of  cleaner  energy  supply  are  yet  to 
materialise.  Between  2017  and  2022,  the 
greenhouse  gas  emissions  intensity  of  Greece’s 
manufacturing  industry  improved  by  about  42% 
both  for  energy-related  and  industry  process  and 
product  use-related  emissions,  significantly  more 

(121) In  2023.  Manufacturing  includes  all  divisions  of  the  “C” 
section  of  the  NACE  Rev.  2  statistical  classification  of 
economic  activities.  In  the  remainder  of  this  section,  unless 
indicated  otherwise,  data  on  manufacturing  refer  to  the 
divisions  of  the  NACE  section  C  excluding  division  C19 
(manufacture  of  coke  and  refined  petroleum  products),  and 
the  year  2022.  The  source  of  all  data  in  this  section  is 
Eurostat;  data  following  the  UNFCCC  Common  Reporting 
Framework (CRF) are from the European Environment Agency 
(EEA), republished by Eurostat. 

 
 
 
EU 

the 

average,  16% 

than 
and  23% 
respectively (122).  In the same period,  the share of 
electricity  and 
final  energy 
renewables 
consumption  recorded  minor  improvements  only, 
increasing by 3.3 percentage points to 45.3 %. The 
in  Greece 
energy 
decreased by 22%, from 2.1 to 1.7 GWh per euro 
of GVA. 

intensity  of  manufacturing 

in 

recorded  a 

Energy-intensive  industries  have  expanded 
production. In Greece, they accounted for 24% of 
total manufacturing GVA in 2022 (123), the highest 
share in the EU. The manufacture of non-metallic 
mineral  products 
relatively  high 
greenhouse  gas  emissions  intensity,  with  6.6 kg 
CO2eq/€  of  GVA,  three  times  the  EU  average  of 
2.2 kg. While in several EU countries production in 
energy-intensive  industries  decreased  in  the  early 
2020s,  between  2021  and  2024  Greece 
experienced  relatively  stable  production  in  the 
paper  and  chemical  sectors,  and  an  increase  of 
production  of  about  15-20%  in  the  manufacture 
of basic metals, non-metallic mineral products and 
pharmaceutical  products.  The  combination  of 
low  energy  prices(124), 
significant 
relatively 
investments 
the  economic 
industry,  and 
recovery  may  all  have  contributed  to  Greece's 
ability to maintain or increase production in these 
sectors, unlike other EU countries. 

in 

Graph A7.1: GHG emission intensity of manu-
facturing and energy-intensive sectors, 2022 

Source: Eurostat. 

Greece has begun putting in place policies to 
support  the  decarbonisation  of  industry,  but 
is  needed  to  achieve  a  decisive 
more 
decoupling  of  economic  growth 
from 
emissions.  The  country  has  adopted  policies  on 
renewables  and  energy  storage  and  measures  to 
improve  energy  efficiency  and  implemented  pilot 
projects  on  renewable  hydrogen.  However,  further 
efforts are needed to support the decarbonisation 
of  manufacturing,  particularly  in  energy-intensive 
sectors. This includes support for the development 
of  new  low-carbon  technologies  (e.g.  under  the 
Innovation  Fund  and  the  Modernisation  Fund); 
accelerating  the  deployment  of  renewable  energy 
sources;  the  scaling  up  of  existing  solutions  such 
as 
the 
promotion  of  sustainable  supply  chains  and 
circular economy practices. 

energy-efficient 

technologies; 

and 

(122) For the GHG emissions intensity of GVA related to energy use 
and  industrial  processes  and  product  use  respectively,  GHG 
emissions  are  from  inventory  data  in  line  with  the  UNFCCC 
Common  Reporting  Format  (CRF),  notably  referring  to  the 
source sectors CRF1.A.2 –  fuel combustion in manufacturing 
industries  and  construction  and  CRF2  –  industrial  processes 
and  product  use.  The  CRF1.A.2  data  broadly  correspond  to 
the NACE C and E sectors, excluding C-19. GVA data (in the 
denominator  for  both  intensities)  are  aligned  with  this 
sectoral  coverage.  Therefore,  they  are  not  fully  consistent 
with the data referred to in other part of this section. 

(123) Notably,  the  manufacture  of  paper  and  paper  products 
(NACE  division  C17),  of  chemicals  and  chemical  products 
(C20),  “other”  non-metallic  mineral  products  (C23;  this 
division includes manufacturing activities related to a single 
substance of mineral origin, such as glass, ceramic products, 
tiles,  and  cement  and  plaster),  and  basic  metals  (C24).  To 
date,  these  industries  are  energy-intensive  –  i.e.  consuming 
much  energy  both  on  site  and/or  in  the  form  of  purchased 
electricity  –  and  greenhouse  gas  emissions  intensive,  in 
various combinations. 

(124) For a detailed analysis of energy prices, see Annex 8 on the 

affordable energy transition. 

Graph A7.2: Manufacturing industry production: 
total and selected sectors, index (2021 = 100), 
2017-2023 

Source: Eurostat. 

Reduction  of  emissions  in  the  effort  sharing 
sectors 

62 

01234567C-C19C17C20C23C24KG CO2eq / €GreeceEU-277075808590951001051101152017201820192020202120222023ManufacturingManufacture of paper and paper productsManufacture of chemicals and chemical productsManufacture of other non-metallic mineral productsManufacture of basic metals 
 
     
            
Sustainable industry 

Circular economy transition 

Greece’s  circular  transition  is  progressing 
slowly,  but  with  some  encouraging  signs.  Its 
circular  use  of  materials  increased  until  2020, 
peaking at 6.3%, then declined to to 5.2% in 2023, 
below  the  EU  average  of  11.8%.  With  EUR 1.71 
generated  per  kg  of  material  consumed  in  2022, 
resource  productivity  was  slightly  below  the  EU 
average  of  EUR 2.22  per  kg.  However,  the  steady 
increase in Greece’s resource productivity over the 
last  decade  is  encouraging.  In  2022,  Greece 
adopted  a  new  national  action  plan  for  circular 
economy  for  2021-2025,  following  the  limited 
results of the 2018 circular economy strategy. Key 
initiatives, 
focusing  on  waste,  are  being 
implemented,  and  include  revised  local  waste 
management  plans;  a  food-waste  prevention 
programme;  and  actions 
lignite-dependent 
regions.  New  infrastructure  for  waste  separation, 
recycling and recovery is to be financed. Economic 
incentives 
producer 
responsibility  schemes  for  various  waste  streams 
and a deposit refund system for beverage bottles 
are also provided. 

extended 

such 

as 

in 

low  and  stagnating,  at  2% 
the  dominant 

Greece’s  waste  management  performance  is 
still 
lagging  significantly.  Municipal  waste 
generation stagnated between 2010 and 2022. In 
2022, the country generated 519 kg per capita of 
municipal  waste,  close  to  the  estimated  EU 
average  of  534 kg  per  capita.  In  2022,  Greece 
recycled  17%  of  municipal  waste,  significantly 
below  the  EU  average  of  49%.  The  rate  of 
composting  and  anaerobic  digestion  also  remains 
in  2021. 
very 
Landfilling 
treatment 
method for municipal waste, at a very high level of 
80%. In 2021 and 2022, Greece recycled 54% and 
43%  of  its  total  packaging  waste  respectively. 
Greece  is  at  risk  of  missing  both  the  municipal 
waste  and  the  packaging  waste  targets  and  may 
not meet the 2035 target of a maximum of 10% 
of municipal waste landfilled. The preparing for re-
use and recycling rate of mineral construction and 
demolition  waste  in  Greece  in  2022  was  99.6% 
compared to the EU average of 79.8%. 

remains 

Greece  is projected to reach  its  2030  target 
for  the  effort  sharing  sectors  with  the 
climate mitigation policies currently in place 
(125).  GHG  emissions  from  Greece’s  effort  sharing 
sectors  in  2023  are  expected  to  have  been  28% 
below the level of 2005. By 2030, current policies 
are projected to reduce them by 35.5% relative to 
2005  levels,  additional  policies  being  considered 
by  Greece  are  expected  to  achieve  a  further 
reduction  of  7.7 percentage  points.  Consequently, 
Greece  is  projected  to  overachieve  its  effort 
sharing  target  of  22.7%  reductions  by  20.5 
percentage points (126), (127). 

Graph A7.3: Greenhouse gas emissions in the 
effort sharing sectors, 2005 and 2023 

Source: European Environment Agency 

(125) The national greenhouse gas emission reduction target is set 

out in Regulation (EU) 2023/857 (the Effort Sharing 
Regulation). It applies jointly to buildings (heating and 
cooling); road transport, agriculture; waste; and small industry 
(known as the effort sharing sectors). 

(126) The  emissions  from  effort  sharing  sectors  for  2022  are 
based on approximated inventory data. The final data will be 
established in 2027 after comprehensive review. Projections 
on  the  impact  of  current  policies  (“with  existing  measures”, 
WEM)  are  based  on  Greece’s  final  updated  national  energy 
and  climate  plan  and  additional  policies  (“with  additional 
measures”, WAM) on the 2024 Biennial Transparency Report 
Greece submitted to UNFCCC. 

(127) The  emissions  from  effort  sharing  sectors  for  2023  are 
based on approximated inventory data. The final data will be 
established 
review. 
Projections  on  the  impact  of  current  policies  (‘with  existing 
measures’,  WEM)  and  additional  policies  (‘with  additional 
measures’,  WAM)  as  per  Bulgaria’s  final  updated  national 
energy and climate plan. 

in  2027  after  a  comprehensive 

63 

01020304050607020052023MtCO2eDomestic transport (excl. aviation)Buildings (under ESR)AgricultureSmall industryWaste 
            
 
Graph A7.4: Municipal waste treatment 

commitments for 2030 onwards for NOx, NMVOC, 
SO2, NH3 and PM2.5. 

Greece’s  industry  releases  relatively  high 
amounts  of  air  and  water  pollutants.  The 
country has a relatively high level of damage from 
air  pollution,  and  its  emissions  intensity  is  above 
the EU average, primary due to the energy sector’s 
contributions.  The  costs  of  pollution  are  higher 
than 
in  prevention  and  control, 
leading to thousands of deaths annually. To meet 
its environmental  objectives and achieve pollution 
prevention and control, Greece needs to provide an 
additional  EUR  349  million  per  year,  with  the 
national  climate  and  energy  plan  playing  a 
significant  role  in  addressing  these  challenges. 

investments 

Source: Eurostat 

To  meet  its  circular  economy  and  waste 
objectives  Greece  needs  to  increase  circular 
investments  by  an  estimated 
economy 
EUR 310  million  per  year,  with  an  additional 
EUR 69 million for waste management action, not 
part  of  circular  economy (128).  This  totals  EUR 
379 million per year, or 0.18% of Greece’s GDP. To 
close the investment gap, EUR 81 million is needed 
for  initiatives,  like  eco-design  for  sustainable 
products;  packaging  and  packaging  waste; 
labelling  and  digital  tools;  critical  raw  materials 
recycling; and measures proposed under the Waste 
Framework  Directive 
Another 
EUR 229  million  is  needed  to  unlock  Greece’s 
circular economy potential. 

amendment. 

Zero pollution industry 

Air quality in some parts of Greece remains a 
concern,  particularly  in  the  urban  centres  of 
Attica and Thessaloniki. Emissions of several air 
pollutants  have  decreased  significantly  since 
2005,  while  GDP  growth  has  continued.  In  2024, 
Greece  met  its  emission  reduction  commitments 
for  2020-2029  for  air  pollutants  NOx,  non-
methane  volatile  organic  compounds  (NMVOC), 
sulphur  dioxide  (SO2),  ammonia  (NH3)  and  PM2.5. 
Greece is projected to meet its emission reduction 

(128) European Commission, DG Environment, Environmental 

investment needs & gaps assessment programme, 2025 
update. Expressed in 2022 prices. 

64 

52449950951901002003004005006002019202020212022Kg per capitaMaterial recyclingComposting and digestionLandfill/disposalTotal incineration (incl. energy recovery)Waste treatment unspecifiedEU-27 total waste per capita 
            
 
 
Table A7.1:  Key clean industry and climate mitigation indicators: Greece 

Source:  Net zero industry: European Commission: The net-zero manufacturing industry landscape across Member States: final 
report, 2025. Automotive industry transformation: Eurostat. Critical raw materials: Eurostat. Climate mitigation: See 
footnotes in the "climate mitigation" section; reduction of effort sharing emissions: EEA greenhouse gases data viewer; European 
Commission, Climate Action Progress Report, 2024. Sustainable industry: Years of life lost due to PM2.5: Eurostat and EEA, 
Harm to human health from air pollution in Europe: burden of disease status, 2024. Air pollution damage: EEA, EU large industry 
air pollution damage costs intensity, 2024. Emissions covered: As, benzene, Cd, Cr, Hg, NH3, Ni, NMVOC, NOX, Pb, dioxins, PM10, 
PAH, SOX. Water pollution intensity: EEA, EU large industry water pollution intensity, 2024. Releases into water covered from 
cadmium, lead, mercury, nickel. Other indicators: Eurostat. 

65 

Strategic autonomy and technology for the green transitionNet zero industryOperational manufacturing capacity 2023- Solar PV (c: cell, w: wafer, m: module), MW-- Electrolyzer, MW-- Wind (b: blade, t: turbine, n: nacelle), MW500-550 (t)- battery, MWh5300-11000Automotive industry transformation201720182019202020212022202320182021Motorisation rate (passenger cars per 1000 inhabitants), %487493504514536550565539561New zero-emission vehicles, electricity motor, %0.040.070.160.852.172.694.741.038.96Critical raw materials201720182019202020212022202320182021Material import dependency, %35.536.339.240.640.139.424.222.6Climate mitigationTrendIndustry decarbonisation201720182019202020212022202320172022GHG emissions intensity of manufacturing production, kg/€1.221.070.970.870.780.680.780.340.27Share of energy-related emissions in industrial GHG emissions69.368.270.171.169.567.468.244.842.5Energy-related GHG emissions intensity of manufacturing387.3313.9275.0269.9252.5225.6-158.4132.9and construction, kg/€Share of electricity and renewables in final energy consumption48.649.650.548.647.145.346.243.344.2in manufacturing, %Energy intensity of manufacturing, GWh/€2.131.961.851.891.711.661.501.291.09Share of energy-intensive industries in manufacturing production23.77.3GHG emissions intensity of production in sector [...], kg/€- paper and paper products (NACE C-17)0.190.220.220.210.170.160.19-0.730.68- chemicals and chemical products (NACE C20)1.401.751.621.581.230.970.85-1.251.26- other non-metallic mineral products (NACE C23)10.699.418.087.487.326.639.22-2.532.24- basic metals (NACE C24)1.771.181.210.981.000.731.07-2.793.49Reduction of effort sharing emissions20182019202020212022202320182023GHG emission reductions relative to base year, % -29.5-26.6-28.0- domestic road transport-20.4-18.6-29.5-23.3-18.0-16.21.45.2- buildings-63.7-60.2-54.9-60.2-55.2-54.721.432.92005202120222023TargetWEMWAMEffort sharing: GHG emissions, Mt; target, gap, %63.044.446.345.3-22.7020.5Sustainable industryTrendCircular economy transition20182019202020212022202320182021Material footprint, tonnes per person12.212.311.111.011.711.714.715.0Circular material use rate, %3.0        3.3        4.2        5.3        6.3        5.2        11.611.1Resource productivity, €/kg1.4        1.5        1.5        1.6        1.8        1.9        2.12.3Zero pollution industryYears of life lost due to PM2.5, per 100,000 inhabitants1,068    872      796      972      1,258    -702571Air pollution damage cost intensity, per thousand € of GVA    72.6          27.5      Water pollution intensity, kg weighted by human factors per bn € GVA    0.5   0.9GreeceEU-27GreeceEU-27GreeceEU-27 
 
 
   
 
ANNEX 8: AFFORDABLE ENERGY TRANSITION 

This  annex  outlines  the  progress  made  and 
the  ongoing  challenges  faced  in  improving 
energy  competitiveness  and  affordability 
while advancing the transition to net zero. It 
examines  the  measures  and  targets  proposed  in 
the  final  (draft)  updates  to  the  national  energy 
and climate plans (NECPs) for 2030. 

of 

installation 

Greece  has  shown  significant  progress  in 
accelerating 
renewable 
energy,  implemented  a  series  of  energy 
efficiency  measures  and  strengthen 
its 
security  of  supply  and  that  of  the  broader 
region.  However,  important  challenges  remain 
including  regarding  the  flexibility  of  the  energy 
system.  

Energy prices and costs 

Graph A8.1: Retail energy price components for 
household and non-household consumers, 2024 

(i) For household consumers, consumption band is DC for 
electricity and D2 for gas. Taxes and levies are shown 
including VAT. 
(ii) For non-household consumers, consumption band is ID for 
electricity and I4 for gas. Taxes and levies are shown 
excluding VAT and recoverable charges, as these are typically 
recovered by businesses. 
Source: Eurostat 

Greece’s  retail  energy  prices  decreased 
considerably  in  2024,  remaining  below  EU 
average for  a  second  consecutive  year,  both 
for household and non-household consumers. 
Retail price developments were also influenced by 
government 
the 
broad-based  support  to  households.  The  share  of 
taxes and levies on final electricity and gas prices 
for  households  were  considerably  lower  than  the 
EU average (15.8% and 7.9% for an EU average of 

interventions  and  especially 

25%  and  27.8%  respectively).  While  electricity 
network  costs  were  below  the  EU  average,  gas 
network costs for households were aligned with EU 
average. Overall, Greece ranked seventeenth in the 
EU  on  electricity  and  gas  prices  for  households. 
The  downward  trend  continued  in  2024  also  for 
non-household  consumers  for  both  electricity  and 
gas with taxes and levies and network costs in the 
final prices remaining below EU average.  

With  an  average  of  100.7 EUR/MWh 
in 
2024 (129),  Greece  had  the  EU’s  sixth-highest 
wholesale  electricity  prices  (the  EU  average 
was  84.7 EUR/MWh)  and,  while  prices 
declined  early  in  the  year  amid  falling 
natural  gas  costs,  prices  picked  up  in  the 
summer  and  were  high  also  in  the  winter. 
There  were  multiple  drivers  behind  these  price 
spikes,  including  a  structural  shortage  of  flexible 
solutions which are needed to meet peak demand 
in  the  region.  Greece  relied  on  costly  natural  gas 
for electricity generation in peak demand.  Greece 
has the fourth-largest share in the EU with 37.5% 
of the electricity mix in 2024. Prolonged and more 
intense heatwaves as well as a colder winter led to 
in  2024).  Reduced 
higher  consumption  (+6% 
hydropower 
the 
limited  non-fossil 
meteorological 
flexibility  and  a  strained  net-importing  position 
further  exacerbated  the  supply-demand  gap.  This 
gap  was  mainly  covered  by  ramped  up  and 
expensive  natural  gas-fired  generation  (+35%  in 
2024), especially during peak demand hours in the 
summer and throughout the entire day during the 
winter.  Consequently,  and  more  than  in  2023, 
these conditions drove concentrated price spikes in 
evening  hours  (18h-21h),  when  solar  output 
declined  and  demand  remained  high  (especially 
during the summer). Despite these trends, Greece’s 
average  electricity  price  over  the  year  was  still 
lower  (at  119 €/MWh)  than  in  2023,  driven  by 
lower average hourly prices (especially in daytime 
hours) (130). This was probably driven by the uptake 

in  2024)  due 

conditions, 

(-19% 

to 

(129) Fraunhofer (ENTSO-E data). 

(130) Average  hourly  prices  were  lower  than  in  2023,  except 
between  19h  and  21h.  The  largest  delta  in  daytime  hours 
was  between  9h  and  15h  (when  solar  output  is  at  its 
highest).  This  decrease  averaged  -29%.  For  the  other  hours 
of the day, it averaged at  -15%. Average hourly prices only 
increased at 19h and 20h (+9 and +6%, respectively). 

66 

 
 
 
 
 
 
in solar output, both in Greece (+39% in 2024) and 
in neighbouring markets (131). 

Graph A8.2: Monthly average day-ahead wholesale 
electricity prices and European bencmark natural 
gas prices (Dutch TTF) 

minimum  of  70%  of 
technical  cross-border 
capacity  is  available  for  trading.  To  achieve  this 
target  in  Member  States  heavily  influenced  by 
exchanges  in  neighbouring  countries,  work  at 
regional  level  (particularly  with  their  regional 
coordination  centre)  is  necessary.  For  the  Greece-
Italy border, trade levels were consistently high in 
2023,  whereas  certain  limitations  were  observed 
on the Greece – Bulgarian border. 

list 

(PMI) 

energy 

(e.g. the 

capacity 

interconnection 

rising  energy  demand, 

Further  action  to  expand  Greece’s  cross-
border 
and 
strengthen  its  national  grid  will  enable  it  to 
meet 
integrate 
renewable 
production  more 
effectively  and  improve  grid  flexibility.  The 
new  interconnector  between  Greece  and  Bulgaria 
became  operational  in  June  2023.  Several  of  the 
projects planned are included in the first project of 
common  interest  (PCI)  and  project  of  mutual 
electricity 
interest 
interconnectors  with  Cyprus  and  with  Egypt). 
Based  on  the  final  updated  NECP,  Greece  should 
achieve the 15% interconnection target until 2030 
due to implementation of interconnection projects 
on  its  borders.  Greece  is  carrying  out  (including 
under  its  recovery  and  resilience  plan  (RRP)),  a 
number of projects to strengthen the national grid. 
These  include  modernisation  of  the  distribution 
grid  in  the  most  congested  areas,  as  well  as 
projects  to  connect  mainland  Greece  with  its 
islands.  Lengthy  permitting  procedures  for  grid 
infrastructure  are  still  one  of 
the  major 
bottlenecks  delaying  the  further  development  of 
renewable  energy  sources.  To  tackle  this,  Greece 
has asked for support from the Technical Support 
Instrument  to  identify  how  processes  could  be 
simplified and accelerated.  

The constraints of the electricity system and 
networks in Greece have caused curtailments 
of  renewable  electricity  (i.e.  reduction  of 
power production) to significantly increase in 
the  last  few  years.  A  total  of  528 GWh  of 
renewable  electricity  was  curtailed  between 
January  and  July  2024  (3.5%  of  total  renewable 
electricity  production).  The  amount  of  renewable 
electricity curtailed in 2024 is expected to be four 
times  higher  than  in  2023,  indicating  a  rapid 
acceleration of curtailment (135).  

(135) Greek Ministry, 2025 Technical Support Instrument support 

request. 

67 

(i) The TTF is a virtual trading point for natural gas that serves as the 
primary benchmark for European natural gas prices. 
(ii) CWE and SEE respectively provide average prices in the central-
western (BE, FR, DE, LU, NL, AT) and south-eastern (BG, EL, HR) 
European markets. 
Source: S&P Platts and ENTSO-E 

Flexibility and electricity grids 

The  widening  price  gap  between  the  South-
East  Europe (132)  and  CORE (133)  capacity 
calculation  regions  (CCRs)  observed  during 
the  summer  also  highlighted  insufficient 
cross-border  capacity  available  for  trade. 
Greece  is  in  the  South-East  Europe  and  Greece-
Italy  CCRs  for  market-coupling.  In  this  part  of 
Europe,  electricity  flows  are  heavily  influenced  by 
in  nearby  bidding  zone  borders, 
exchanges 
including  with  the  Western  Balkan  countries (134). 
Member  States  are  required  to  ensure  that  a 

(131) Yearly electricity data, Ember (consumption and generation 

data throughout the paragraph). 

(132) A capacity calculation region (CCR) is a group of countries 
that calculate cross-border electricity trade flows together. 
Bulgaria, Greece and Romania are the three countries in the 
South-East Europe CCR. 

(133) Core is the CCR which covers Belgium, Czechia, Germany, 
France, Croatia, Hungary, the Netherlands, Austria, Poland, 
Romania, Slovenia and Slovakia (and, once connected, 
Ireland). 

(134)The Western Balkan countries are currently in the process of 
integrating into the EU’s single market via market-coupling. 

 
 
 
 
Greece has taken steps to support non-fossil 
flexibility  but  important  challenges  remain. 
The  operational  electricity  storage  capacity 
reported in Greece’s final updated NECP is around 
699 MW (only pumped hydro). In its final updated 
NECP,  Greece  has  reported  that  the  operational 
electricity storage capacity will reach 1928 MW of 
pumped hydro and 4325 MW of batteries by 2030 
(6,2 GW total).  Greece has already taken steps to 
promote the installation of electricity storage (the 
first auctions for small storage – under a State-aid 
scheme  approved  in  2022  –  have  already  taken 
place).  Several  big  storage  projects  are  being 
developed  in  Greece,  with  two  of  them  listed  on 
the  first  PCI/PMI  list  adopted  in  2023:  a  battery 
energy storage system in Ptolemaida and a hydro-
pumped  storage  system  in  Amfilochia.  However, 
Greece’s 
framework  still  hinders 
flexibility because it does not fully allow batteries 
to access the wholesale energy markets and does 
not  enable  demand  response  to  access  the  day-
intraday  markets.  To  overcome 
ahead  and 
flexibility  challenges,  Greece 
is  developing  a 
comprehensive  framework  for  electricity  storage 
that is also supported by the RRP (136).  

regulatory 

introduced  for  businesses  and 

Greece  is  progressing  with  measures  to 
empower  consumers  in  demand  response, 
energy  communities,  dynamic  pricing  and 
smart grids. From 2025 onward, dynamic pricing 
will  be 
large 
consumers  with  smart  meters.  A  nationwide  roll-
out of 7.3 million electricity smart meters by 2030 
(supported  by  the  Greek  RRP)  is  key  to  enabling 
broader 
in  dynamic 
consumption.  It  could  also  help  to  significantly 
reduce  non-technical  losses.  Only  660 000  smart 
meters had been installed by October 2024 (i.e. a 
penetration  of  just  over  6%) (137),  but  annual 
investments in digitalising the distribution network 
of  over  EUR 500 million  are  intended  to  achieve 
1.5 million dynamic pricing participants by 2025.  

consumer  participation 

energy 

This  includes  40  renewable  energy  communities 
and  17  citizen  energy  communities  created  under 
the new institutional framework (Law 5037/2023) 
adopted  in  March  2023.  The  Greek  RRP  also 
supports 
self-
vulnerable 
consumption 
households) 
Apollon 
programme.  This  promotes  the  creation  of  citizen 
energy  communities,  focusing  on  solar  self-
production and virtual net-billing to reduce energy 
poverty. 

communities 
for 
2024 

(particularly 

through 

and 

the 

(138)   partly  due 

Electricity  accounted  for  26.3%  of  Greece's 
final  energy  consumption  in  2023  (slightly 
above  the  EU  average  of  22.9%,  but  this 
share  has  remained  largely  stagnant  in  the 
to  an 
last  decade 
unfavourable  electricity-to-gas  price  ratio 
that  disincentivizes  electrification  and  cost-
effective  decarbonization.  When  it  comes  to 
households,  electricity  accounted  for  34.5%  of 
final  energy  consumption,  while  in  industry  it 
represented  39.9%  (see  also  Annex  6).  For  the 
transport sector, this share remained negligible at 
0.3%.  In  2024’s  second  semester,  household  and 
industrial  electricity  prices  in  Greece  were  below 
the  EU  average  due  to  government  support. 
However, the electricity-to-gas price ratio was high 
for both. For households, electricity cost 2.2 times 
more per unit than gas before taxes and 2.4 times 
more  after.  For  energy-intensive  industries,  this 
ratio  was  4.1  before  and  4.4  after  taxes,  among 
the highest in the EU. Taxes and levies accounted 
for  ~16,8%  of  household  electricity  prices  (vs. 
~11,9%  for  gas)  and  ~12%  for 
industrial 
electricity (vs. ~5,8% for gas) (139). 

is 
The  number  of  energy  communities 
steadily increasing, with 1 742 active energy 
communities  recorded  in  September  2024. 

(136) Investments: ‘Support of the installation of storage systems 
to enhance RES penetration’ (measure ID: 16926) and its 
scale-up in the REPowerEU chapter (measure ID: 16996). 
Reform: ‘Grid and storage capacity – fostering of storage 
investments’ (measure ID: 16990). 

(137)ACER/CEER  Market  Monitoring  Report  ‘Energy  retail  -  Active 
consumer participation is key to driving the energy transition: 
how can it happen?’, 30 September 2024. 

(138) The CAGR (compound annual growth rate) was -0.8% 

between 2013 and 2023. The minimum/maximum shares 
were 26.3% and 29.5% respectively. 

(139) Analysis based on Eurostat data for the second semester of 
2024. For household consumers, consumption band is DC for 
electricity and D2 for gas, which refer to medium-sized 
consumers and provide an insight into affordability. For non-
household consumers, consumption band is ID for electricity 
and I4 for gas, referring to large-sized consumers, providing 
an insight into international competitiveness (price used for 
the calculation excludes VAT and other recoverable 
taxes/levies/fees as non-household consumers are usually 
able to recover VAT and some other taxes). 

68 

 
 
 
has  made 

Specifically,  Greece 

gross final electricity consumption for 2030).  
Greece  aims  to  have  a  total  of  installed  capacity 
of  27.5 GW  across  all  forms  of  renewables,  by 
2030. 
a 
commitment  (as  part  of  the  wind  pledges  under 
the  European  Wind  Power  Action  Plan)  to  have 
7.6 GW  of  installed  onshore  wind  capacity  and 
1.9 GW  of  installed  offshore  wind  capacity  by 
2030, which is also confirmed in the final updated 
NECP. No new schedule for the expected allocation 
of  support  for  renewables  had  been  released  on 
the  Union  Renewables  Development  Platform  at 
the  end  of  2024,  since  the  Greek  authorities  are 
considering  phasing  out  the  aid  support  schemes 
for new RES projects.  

in  power  purchase  agreements 
Interest 
(PPAs) in Greece is growing significantly (141), 
with  numerous  (disclosed  and  non-disclosed) 
deals  concluded  in  2023  and  many  more 
under  way  (90%  of  them  based  on  solar 
power  production).  The  first  PPA  was  signed  in 
Greece  in  February  2021:  a  corporate  PPA  for 
200 MW  and  one  of  the  largest  deals  in  the  EU. 
Until 2025, this PPA scheme is expected to auction 
another  4.2 GW  of  installed  capacity  (142).  Already 
by March 2025, the TSO has approved connection 
terms  for  projects  up  to  800  MW  for  corporate 
PPAs,  which  have  priority  for  connecting  to  the 
system. Also in 2021, Greece introduced a contract 
for difference (CfD) for renewable energy. n 2022, 
Greece  obtained  State-aid  approval  to  support 
electricity storage with CfDs alongside investment 
grants  (143).  More  than  400 MW  of  production 
capacity  had  been  awarded  CfDs  under  this 
scheme by 2023 (144). CfDs will continue to play a 
crucial role in Greece’s renewable energy support.  

(141) European PPA Market Outlook 2024, Pexapark.  

(142) Contracts-for-Difference to support renewable energy 

technologies: Considerations for design and implementation, 
EUI Research Report, March 2024 

(143)https://ec.europa.eu/competition/state_aid/cases1/202240/S

A_64736_400E7A83-0000-C599-B417-
2392BF680950_60_1.pdf  

(144) Contracts-for-Difference to support renewable energy 

technologies: Considerations for design and implementation, 
EUI Research Report, March 2024 

Renewables and long-term markets 

In  2024,  renewable  energy  sources  (RES) 
remained at 50% of the Greek electricity mix 
(compared with the EU’s overall RES share of 
47% (140).  Installed  renewables  capacity  grew  by 
17.5%,  reaching  18  231  MW.  Regarding  solar 
deployment,  the  total  installed  capacity  in  2024 
was 9 269 MW (+2 580 MW, an increase of 38.5% 
compared  to  2023),  while  installed  onshore  wind 
capacity  only  increased  by  125  MW,  reaching  5 
357 MW. 

Graph A8.3: Greece's installed renewable capacity 
(left) and electricity generation mix (right) 

“Other” includes renewable municipal waste, solid biofuels, 
liquid biofuels, and biogas. 
Source: IRENA, Ember 

In 

framework 
has 

Greece  has  made  some  progress  in  speeding 
up  RES  permitting,  but  further  steps  are 
needed. 
its  final  updated  NECP,  Greece 
mentions  its  intention  to  further  streamline  RES 
permitting  via  several  measures  on  spatial 
planning, digitalization and even mentions plans to 
on  decommissioning. 
create  a 
Law 5037/2023 
designated 
already 
renewables  acceleration  areas  (RAAs)  in  Greece. 
The  first  designated  RAAs  were  reserved  for 
offshore wind (up to 600 MW) in northern Greece. 
Under  the  REPowerEU  chapter  of  the  RRP,  Greece 
has undertaken to update parts of its spatial plan, 
which  has  not  been  updated  since  2008.  The 
adoption  of  the  new  version  of  the  RES  spatial 
plan has been subject to very long delays.  

Greece  has  set  more  ambitious  targets  for 
renewables in its updated NECP (43% of RES 
in  gross  final  energy  consumption  for  2030 
and 95,8% for 2050 and 75,7% of RES in the 

(140) Yearly electricity data, Ember. 

69 

 
 
 
 
 
Energy efficiency 

Primary 

potential. 

Energy  efficiency  gains  have  slowed 
in 
Greece,  but  there  is  still  untapped  energy-
efficiency 
energy 
consumption  (PEC)  decreased  by  5.1%  to  19.88 
Mtoe  in  2023.  Final  energy  consumption  (FEC) 
decreased  by  2.4%  to  15.73  Mtoe.  Compared  to 
2022, FEC decreased in all main sectors (by 13.1% 
in residential, by 4;1% in industry  and by 0.4% in 
(increase  by  4.4%). 
services)  but 
According to the recast Energy Efficiency Directive, 
Greece should try to achieve a PEC of 17.55 Mtoe 
and a FEC of 14.68 Mtoe by 2030. 

transport 

In  the  residential  sector,  Greece  needs  to 
step up action to achieve the 2030 reduction 
target  for  energy  consumption  by  buildings. 
In  accordance  with  its  most  recent  long-term 
renovation  strategy,  Greece  intends  to  reduce 
building  energy  consumption  by  8%  in  2030 
(compared  with  2015).  However,  FEC 
in  the 
residential  sector  declined  by  only  1%  between 
2015 and 2022. 

Efforts are being made to electrify and green 
the  heating  and  cooling  of  buildings  by 
promoting  the  installation  of  more  energy 
efficient  heat  pumps,  often  in  combination 
with  on-site  renewables.  Between  2010  and 
2021,  renewable  heating  and  cooling  increased 
from 50 PJ to 67.5 PJ and from 19% to 31.1% of 
total heating and cooling demand. This growth was 
mainly  driven  by  increased  use  of  heat  pumps. 
Approximately  208 000  heat  pumps  were  sold  in 
2022 (an increase of 112% on 2021), reaching a 
total  stock  of  around  577 000  installed  pumps in 
the  residential  sector.  Solar  thermal  and  biogas 
also  increased  (10 PJ  to  12.7 PJ;  and  0.1 PJ  to 
1.4 PJ respectively). Electricity is expected to cover 
47% of energy demand in the residential sector in 
2030, because the use of heat pumps is expected 
to  increase  significantly  and  because  of  building 
renovation. 

financing 

framework 
Greece’s  national 
mobilising  investments  in  energy  efficiency 
is  mostly  composed  of  grants  and  subsidies. 
In  2024,  Greece  continued  to  implement  the 
planned  energy  efficiency  financing  schemes 
(especially  under  the  Recovery  and  Resilience 
Facility  and  under  the  ‘Save  Energy  at  Home 
(EXOIKONOMO)’  programmes,  which  are  aimed  at 

70 

the residential sector). However, additional private 
funding  needs  to  be  leveraged,  particularly  by 
deploying  dedicated  financial 
instruments  for 
energy efficiency and supporting the development 
of  the  energy  services  sector  as  a  key  market-
enabler  for  energy  efficiency  improvements.  In 
terms  of  sectors,  energy-efficient  appliances  and 
equipment in buildings and businesses are covered 
by  several  funding  programmes,  and  Greece  has 
signalled  that  the  necessary  reforms  are  under 
way. 

Security of supply and diversification  

Greece  has  not  yet  phased  out  Russian  gas, 
it  has  made  significant  efforts  to 
but 
strengthen 
its  security  of  supply  and 
diversify  its  natural  gas  sources  through 
major infrastructure investments to increase 
its import capacity for liquefied natural gas. 
In  addition  to  the  recent  completion  of  projects 
such as the IGB pipeline, the commissioning of the 
liquefied natural gas terminal in Alexandroupolis in 
2024  has  further  strengthened  Greece’s  crucial 
role  in  the  diversification  of  the  broader  region 
against the backdrop of the ending of Russian gas 
transit  through  Ukraine  in  2025.  Greece  reduced 
its gas demand by only 8% between August 2022 
and  September  2024  –  below  the  15%  voluntary 
demand  reduction  target  recommended  by  the 
Council. 

Fossil fuel subsidies 

In  2023,  environmentally  harmful  (145)  fossil  fuel 
subsidies  without  a  planned  phase-out  before 
2030 represented 0.79% (146) of Greece’s GDP(147), 
above  the  EU  weighted  average  of  0.49%.  Tax 

(145) Direct fossil fuel subsidies that incentivise maintaining or 
increasing in the availability of fossil fuels and/or use of 
fossil fuels. 

(146) Numerator is based on volumes cross-checked with the 

Greek authorities. For all Member States, it includes public 
R&D expenditures for fossil fuels as reported by the IEA 
(Energy Technology RD&D Budgets) and excludes, for 
methodological consistency, excise tax exemption on 
kerosene consumed in intra-EU27 air traffic. 

(147) 2023 Gross Domestic Product at market prices, Eurostat. 

 
 
measures accounted for 53% of this volume, while 
income/price support and direct grants represented 
32%  and  15%,  respectively.  Fossil  fuel  subsidies 
without  a  planned  phase-out  before  2030  and 
which  do  not  specifically  address,  in  a  targeted 
way,  energy  poverty  nor  genuine  energy  security 
concerns  included  an  excise  tax  exemptions  on 
petroleum  products  consumed  in  inland  water 
navigation,  kerosene  consumed  in  domestic  air 
traffic  and  for  the  use  of  coal  and  coke  for 
industrial  usages 
reduction, 
(e.g., 
electrolyte metallurgical processes). Greece’s 2023 
Effective  Carbon  Rate(148)  averaged  EUR  86.7  per 
tonne  of  CO₂,  slightly  above  the  EU  weighted 
mean of EUR 84.80(149). 

chemical 

(148) The Effective Carbon Rate is the sum of carbon taxes, ETS 
permit prices and fuel excise taxes, representing the 
aggregate effective carbon rate paid on emissions. 

(149) OECD (2024), Pricing Greenhouse Gas Emissions 2024 

71 

 
 
Table A8.1:  Key Energy Indicators 

Source: Eurostat, ENTSO-E, S&P Platts 

72 

20212022202320242021202220232024Household consumer - Electricity retail price (EUR/KWh)0.1830          0.2427              0.2320              0.2265          0.2314              0.2649          0.2877          0.2879          Energy & supply [%]64.6%140.0%107.9%69.4%36.6%54.3%55.6%47.8%Network costs14.5%11.1%14.4%14.9%26.7%25.3%24.8%27.2%Taxes and levies including VAT20.9%-51.1%-22.4%15.8%36.7%20.3%19.6%25.0%VAT5.6%5.6%5.6%5.7%14.5%13.4%13.8%14.6%Household consumer - Gas retail price0.0723          0.1059              0.1114              0.0787          0.0684              0.0948          0.1121          0.1128          Energy & supply61.3%79.3%75.2%65.8%43.7%61.0%64.5%53.9%Network costs32.4%14.4%17.1%26.3%22.5%17.3%17.1%18.3%Taxes and levies including VAT6.4%6.2%7.7%7.9%33.8%21.7%18.4%27.8%VAT4.3%4.3%5.2%5.3%15.5%11.6%10.2%13.6%Non-household consumer - Electricity retail price0.1498          0.2235              0.1726              0.1658          0.1242              0.1895          0.1971          0.1661          Energy & supply77.6%137.5%81.0%73.2%43.0%66.5%63.0%55.8%Network costs5.0%3.9%8.0%8.8%15.8%10.7%11.9%15.5%Taxes and levies excluding VAT12.5%-49.8%5.7%13.1%30.4%9.9%11.2%15.4%Non-household consumer - Gas retail price0.0331          0.1161              0.0552              0.0415          0.0328              0.0722          0.0672          0.0517          Energy & supply83.7%85.5%85.9%83.3%66.2%77.3%77.3%68.7%Network costs6.3%8.1%5.0%6.6%7.7%3.8%5.3%7.1%Taxes and levies excluding VAT5.1%2.3%4.3%5.1%12.5%6.1%7.3%11.6%Wholesale electrity price (EUR/MWh)116.0279.4119.3100.7111.0233.299.184.7Dutch TTF (EUR/MWh)n/an/an/an/a46.9123.140.534.420172018201920202021202220232024Gross Electricity Production (GWh)55,266          53,263              48,626              48,252          54,715              52,670          49,917          -Combustible Fuels41,698       37,412           32,880           31,055       33,020          30,647       25,957       -Nuclear-              -                 -                 -              -                 -              -              -Hydro4,040         5,760             4,051             3,440         5,961            4,000         4,044         -Wind5,537         6,300             7,266             9,310         10,483          10,883       11,022       -Solar3,991         3,791             4,429             4,447         5,251            7,140         8,894         -Geothermal-              -                 -                 -              -                 -              -              -Other Sources-              -                 -                 -              -                 -              -              Gross Electricity Production [%]Combustible Fuels75.4%70.2%67.6%64.4%60.3%58.2%52.0%-Nuclear0.0%0.0%0.0%0.0%0.0%0.0%0.0%-Hydro7.3%10.8%8.3%7.1%10.9%7.6%8.1%-Wind10.0%11.8%14.9%19.3%19.2%20.7%22.1%-Solar7.2%7.1%9.1%9.2%9.6%13.6%17.8%-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)6,2376,2789,9448,8643,6843,4474,913-As a % of electricity available for final consumption 11.2%12.3%19.2%18.1%7.2%7.0%10.2%-Electricity Interconnection [%]10.6%9.7%9.8%9.9%6.3%6.3%5.6%4.8%Share of renewable energy consumption - by sector [%]Electricity24.5%26.0%31.3%35.9%35.9%42.4%48.2%-Heating and cooling28.2%30.1%30.0%31.9%31.1%30.6%35.5%-Transport4.0%4.1%4.0%5.3%4.4%4.1%3.9%-Overall17.3%18.0%19.6%21.7%22.0%22.7%25.3%-20202021202220232020202120222023Import Dependency [%] 81.4%73.8%79.6%75.6%57.5%55.5%62.5%58.3%of Solid fossil fuels 10.2%9.6%-0.7%-9.5%35.8%37.2%45.9%40.8%of Oil and petroleum products 106.4%93.1%101.8%97.6%96.8%91.7%97.8%94.5%of Natural Gas 100.7%99.4%101.6%97.6%83.6%83.6%97.6%90.0%Dependency from Russian Fossil Fuels [%]of Natural Gas 39.0%40.5%17.5%43.8%41.0%40.9%20.7%9.3%of Crude Oil17.7%13.1%2.8%0.0%25.7%25.2%18.4%3.0%of Hard Coal87.0%95.9%11.6%0.0%49.1%47.4%21.5%1.0%2017201820192020202120222023Gas Consumption (in bcm)4.9                 4.8                     5.2                     5.8                 6.4                    5.2                 4.7                 Gas Consumption year-on-year change [%]21.3%-1.9%8.3%11.5%10.4%-19.6%-10.1%Gas Imports - by type (in bcm)5.0                 4.9                     5.2                     5.9                 6.4                    5.7                 4.8                 Gas imports - pipeline3.5                 3.9                     2.4                     2.9                 4.2                    2.2                 2.2                 Gas imports - LNG1.51.02.83.02.23.62.6Gas Imports - by main source supplier [%]Russia58.2%65.9%32.3%39.0%40.5%17.5%43.8%United States0.0%2.1%4.4%25.0%17.7%32.5%20.7%Azerbaijan0.0%0.0%0.0%0.2%19.0%19.8%13.9%Egypt0.0%0.0%4.9%1.3%1.6%7.8%6.5%GreeceEU 
 
  
 
ANNEX 9: CLIMATE ADAPTATION, PREPAREDNESS AND ENVIRONMENT 

Greece  has  improved  its  preparedness  to 
manage  the  impacts  of  climate  change  but 
additional  action  is  required,  including  on 
insurance  coverage  against  extreme  events. 
Greece  is  particularly  vulnerable  to  climate  risks 
and extreme weather events. It is taking action to 
build resilience, including at regional level, but still 
faces  challenges  in  implementing  its  adaptation 
Sustainable  water  management 
strategies. 
remains  a  major  environmental  issue,  notably  in 
terms of water efficiency. The state of nature and 
ecosystems  remains  a  cause  for  concern  too, 
creating  significant  risks  to  the  economy  and  to 
competitiveness.  Greece  performs  above  the  EU 
average  in  terms  of  organic  farming  practices. 
However,  carbon  removals  fall  short  of  the  level 
needed to meet Greece’s 2030 target for land use, 
land-use change and forestry (LULUCF). 

Climate adaptation and preparedness 

Greece  is  particularly  vulnerable  to  multiple 
extreme  weather  events  including  floods, 
heatwaves,  wildfires  and  droughts.  Water 
scarcity  is  already  having  a  significant  impact  on 
society  and  poses  a  severe  risk  to  Greece  and 
other Mediterranean countries (150). Between 2019 
and  2023,  an  average  of  over  4 000 km²  of  the 
country’s  ecosystems  were  affected  by  drought 
each year. In 2023, storm Daniel brought 80 cm of 
rain  in  one  day,  causing  large-scale  flooding  in 
central  Greece  and 
risk  of 
waterborne  diseases  such  as  leptospirosis (151). 
The  country  also  faces  significant  heat-related 
health impacts and has the highest mortality rate 
in  Europe.  If  left  unaddressed,  heatwave-related 
deaths  could  increase  40-fold (152).  In  addition, 
Greece  is  prone  to  devastating  wildfires.  Between 
2006  and  2024,  an  average  of  0.38%  of  the 
country  was  burnt  each  year,  the  second-highest 
rate in the EU, with the 2023 Alexandroupolis fire 
the largest in EU history. The increasing frequency 
and  severity  of  wildfires  can  overwhelm  rescue 
operations and deplete emergency resources. 

increasing 

the 

(150) EEA, 2024, European Climate Risk Assessment. 

(151) EEA, 2024, European Climate Risk Assessment, p. 51. 

(152) EEA, 2024, European Climate Risk Assessment, p. 343. 

73 

Climate  risks  have  a  direct  effect  on 
Greece’s  economy  and  society.  Between  1980 
and  2023,  Greece  recorded  over  EUR 16 billion  in 
economic  losses  due  to  weather  and  climate-
related  extreme  events  (153).  Only  5%  of  the 
economic  damages  over  the  same  period  were 
insured,  leaving  Greece  with  one  of  the  lowest 
levels  of  insurance  coverage  against  extreme 
events  in  the  EU,  especially  for  wildfires  and 
windstorms. The overall  protection gap  score of 3 
for  wildfires  indicates  a  significant  estimated 
insurance  protection  gap (154).  However,  recently, 
Greece  has  taken  steps  to  promote  insurance 
awareness  and  uptake  against  disaster  risks, 
notably 
introduction  of  Law 
5116/2024  on  Mandatory  Insurance  Coverage 
Against  Natural  Disasters  and  Other  Provisions, 
which requires large companies to get mandatory 
insurance  against 
floods  and 
forest 
earthquakes from 1 January 2025. In addition, the 
Government  introduced  a tax incentive  scheme  to 
encourage  citizens  to 
insure  their  properties 
against natural catastrophes (155).   

through 

fires, 

the 

In  recent  years,  Greece  has  taken  action  to 
boost 
its  preparedness  to  manage  the 
impacts of climate change. It made progress in 
establishing robust national governance structures 
that  integrate  climate  change  adaptation  into 
sectoral  policies  and  strengthen  monitoring 
mechanisms.  Greece  identified  vulnerable  sectors, 
tourism,  agriculture  and 
such  as  health, 
infrastructure, and created the National Adaptation 
Observatory  to  monitor  climate-related  risks.  The 
national adaptation strategy outlines the country’s 
adaptation  objectives,  while  the  national  climate 
law  mandates  government  departments 
to 
incorporate  climate  adaptation  into  their  plans. 
However,  despite  these  efforts,  Greece  still  faces 
its  adaptation 
implementing 
challenges 
strategies due to insufficient human and financial 
resources. The creation of a climate crisis and civil 
protection  ministry  is  a  step  in  this  direction.  The 

in 

(153) EEA, 2024, Economic losses from weather- and climate-

related extremes in Europe. 

(154) Scale: 0 (no protection gap) – 4 (very high gap). EIOPA, 2024, 

Dashboard on insurance protection gap for natural 
catastrophes. 

(155) Uniform Real Estate Property Tax (ENFIA) discount of up to 
20% applies for properties with an objective property value 
of up to €500,000, and up to 10% for those with a value 
above €500,000 from 2024 onwards. This tax is an annual 
tax imposed on real estate property and was introduced in 
2013 under Law 4223/2013. 

 
 
 
 
 
 
reporting.  Greece  did  not  submit  the  third  river 
basin  management  plan  (RBMP)  or  the  second 
flood  risk  management  plan  (FRMP)  by  March 
2022,  as  required  under  the  Water  Framework 
Directive  and  the  Floods  Directive.  Greece  finally 
reported  all  its  third  RBMPs  by  June  2024.  The 
development of the second FRMPs is ongoing and 
due to be submitted shortly. As a result of this late 
and  incomplete  reporting  (as  at  early  2025),  the 
Commission  has  not  been  in  a  position  to  assess 
the plans and include  an assessment in its report 
to  the  European  Parliament  and  to  the  Council. 
According to data from the 2nd RBMP published in 
2020, 63.8% of all surface water bodies in Greece 
are  in  a  good  ecological  status  (with  8.0%  in  an 
unknown  status)  and  88.6%  are 
in  a  good 
chemical status (with 9.8% in an unknown status). 
84.6%  of  groundwaters  are  in  good  chemical 
status and 15.7% are in a poor quantitative status. 

Greece’s  wastewater  treatment  remains  a 
cause  for  concern.  Despite  improvements  in 
compliance  over  the  years,  in  particular  thanks  to 
EU  funding,  Greece  has  experienced  serious 
difficulties in implementing the Urban Wastewater 
Treatment  Directive.  This  partial  implementation 
has forced the European Commission to take legal 
action leading to rulings of the Court of Justice of 
the European Union (including, at a very advanced 
stage, i.e. where fines have been imposed). Overall, 
in Greece, the compliance rate was 98% in 2020. 
However,  31  agglomerations  failed  to  meet  the 
requirements  of  the  Directive.  Therefore,  the 
country has scope to take additional measures and 
implement  the  projects  needed  to  fully  comply 
with the requirements of the Directive, drawing on 
the  available  EU  funding,  i.e.  from  the  European 
Regional Development Fund and the Recovery and 
Resilience  Facility.  Greece  has  a  substantial  need 
for  investment  in  water  protection  and  water 
management,  as  shown  in  Graph  A9.2.  To  meet 
the various environmental targets under the Water 
Framework  Directive  and  the  Floods  Directive, 
Greece  has  a  water  investment  gap  of  EUR 212 
million  per  year  (0.1%  of  GDP),  with  over  half 
related  to  wastewater  (EUR 122  million  per  year). 
Drinking  water  measures  require  an  additional 
EUR 72  million  per  year  and  the  other  aspects  of 
the  Water  Framework  Directive  around  EUR 10 
million per year over existing levels of financing. 

Greek  RRP  supported  preparedness 
through 
fire  prevention  measures 
reforestation  and 
(AntiNERO  programmes)  as  well  as  anti-erosion 
and  flood  protection  works  in  areas  affected  by 
mega fires (156). 

Climate  adaptation  is  also  tackled  at  sub-
national level. The country has a well-structured 
system  to  support  adaptation,  with  regional 
authorities  playing  a  crucial  role.  It  has  also 
in  climate 
extended  stakeholder  engagement 
adaptation  action.  Greek 
local 
authorities are among the most active in the EU in 
developing local climate action plans. 73.5% of the 
Greek  population  live  in  municipalities  that  are 
signatories to the EU Covenant of Mayors. 

regions  and 

Water resilience 

Parts  of  Greece  are  subject  to  water  stress, 
in particular due to demand from agriculture, 
a  sector  heavily  dependent  on  water  supply, 
with  irrigation  crucial  in  many  rural  areas. 
Greece’s  water  productivity  stood  at  EUR 21  per 
m3 of abstracted water in 2022, showing a slightly 
increasing trend over a five-year period. The Water 
Exploitation Index Plus (WEI+) (157) reached 13.8 in 
2022 for the whole year, much higher than the EU 
average of 5.8. Looking at seasonal data, however, 
the WEI+ value peaked (at 45) in the third quarter 
of  2021,  after  the  peak  of  36  in  2019.  The main 
consumer  of  water  is  agriculture.  Between  2018 
and  2022,  water  abstraction  in  the  agricultural 
sector  fell  slightly  by  1.8  %,  but  the  sector  still 
consumes the most water, at 5 230 million m3, i.e. 
93%  of  total  consumption  in  2022,  putting  a 
significant strain on the country’s water resources. 
The  challenges  remain  significant,  particularly  in 
regions with high water stress. 

The  ecological  and  chemical  status  of 
surface  and  groundwater  bodies  cannot  be 
incomplete 
assessed  due 

late  and 

to 

(156) National Reforestation Plan, restoration and prevention 

(“antiNERO”), antierosion and flood protection measures, Link. 

(157) The WEI+ measures total water consumption as a 

percentage of the renewable freshwater resources available 
for a given territory and period. Values above 20% are 
generally considered to be a sign of water scarcity, while 
values equal or greater than 40% indicate situations of 
severe water scarcity. 

74 

 
 
Biodiversity and ecosystems 

The state of nature and ecosystems remains 
a cause for concern in Greece. Greece is host to 
89  habitat types  and  296  species  covered  by  the 
Habitats  Directive (158).  48.3%  of  habitats  were 
classified  as  having  good  conservation  status  in 
2018.  35%  of protected  species  were  reported  to 
have  good  conservation  status  in  2018.  Both 
figures are above the EU average. Under the LIFE-
IP  4  NATURA  project (159),  12  action  plans  have 
been  drawn  up  for  habitats  and  species  of 
community  interest,  whose  conservation  status  is 
considered  unsatisfactory  and 
rapid 
improvement.  The  main  forms  of  pressure  and 
threats  for  habitats  in  Greece  are  related  to 
agriculture, 
development, 
infrastructure 
development  and  operation  of  transport  systems, 
alien  and  problematic  species  and  natural 
processes (160).  These  are  also  the  main  forms  of 
pressure  affecting  species,  together  with  human-
induced  changes 
in  water  regimes,  unknown 
pressure  and  pressure  from  outside  the  country. 
There  seems  to  be  a  general  lack  of  progress  in 
maintaining 
favourable 
restoring 
conservation  status  of  species  and  habitats 
protected under the Nature Directives. 

requires 

the 

or 

Nature  degradation  creates  significant  risks 
to  the  economy  and  to  competitiveness. 
Greece  has  a  particularly  high  degree  of  direct 
dependency  on  ecosystem  services  at  58%  of 
gross value added. This is the second-highest level 
in the EU,  driven by transport and  public services. 
Several  sectors  such  as  agriculture,  forestry, 
fisheries,  construction  and  water  utilities,  mining 
and  metals  and  healthcare  delivery  (see  Graph 
A9.1)  are  particularly  dependent  on  ecosystem 
services.  100%  of 
the  gross  value  added 
generated  by  these  sectors  is  directly  dependent 
on ecosystem services. This means that failure to 
maintain  the  capacity  of  ecosystems  to  deliver 
services could entail significant costs or even stop 
production 
these  sectors.  Protecting  and 
restoring key ecosystems would help maintain the 
these  sectors. 
long-term  competitiveness  of 
Greece’s  supply  chain  dependency  on  ecosystem 

in 

(158) EEA, 2019, Number of habitats and species per Member 

State. 

(159) LIFE-IP 4 NATURA. 

(160) EEA, 2019, Main pressures and threats. 

75 

services  is  slightly  above  the  EU  average  at  23% 
of  gross  value  added,  against  the  EU-27  average 
of 22%. 

Graph A9.1: Direct dependency(1) on ecosystem 
services(2) of the gross value added generated by 
economic sector in 2022 

(1) Dependency based on the sector’s own operations, 
excluding value chain operations within countries and across 
international value chains. A high dependency indicates a high 
potential exposure to nature-related shocks or deteriorating 
trends, which means that the disruption of an ecosystem  
service could cause production failure and severe financial 
loss. 
(2) Ecosystem services are the contributions of ecosystems to 
the benefits that are used in economic and other human 
activity, including provisioning services (e.g. biomass 
provisioning or water supply), regulating and maintenance 
services (e.g. soil quality regulation or pollination), and cultural 
services (e.g. recreational activities). 
Source: Hirschbuehl et al., 2025, The EU economy's 
dependency on nature, Link. 

the  Habitats  Directive 

Targeted  action 
is  needed  on  nature 
protection  and  restoration.  In  2022,  35%  of 
land  in  Greece  was  in  a  protected  area,  a  stable 
figure  in  recent  years.  The  six-year  deadline  set 
under 
to  establish 
appropriate conservation objectives and measures 
has expired for 239 sites and insufficient data has 
stalled  progress  on  establishing  site-specific 
conservation 
conservation 
measures.  Greece  has  adopted  site-specific 
conservation  objectives  for  some  habitats  and 
species  but  not  for  all.  The  lack  of  data  indicates 
the  need  for  an  annual  permanent  monitoring  of 
the  conservation  status  of  species  and  habitats. 
Greece also needs to adopt conservation measures 

objectives 

and 

0%20%40%60%80%100%AgricultureForestryFishery and acquacultureMining and metalsConstructionWater utilitiesHealthcare deliveryAviation travel and tourismFood beverages and tobaccoSupply chain and transportPublic services and othersElectricityChemical and materials industryElectronicsOil and gasReal estateHeat utilitiesAutomotiveRetail consumer goods and…Information technologyBanking and capital marketsInsurance and asset managementDigital communicationsHighMediumLow 
 
     
for  already  designated  sites.  The  Ministry  of 
Environment  has  commissioned  23  environmental 
studies  and  corresponding  management  plans  for 
the  Natura  2000  network,  but  only  3  out  of  23 
regional  management  plans  have  been  approved 
so  far.  The  investment  needs  for  biodiversity  and 
ecosystems are estimated to be EUR 2.1 billion per 
year (in 2022 prices) in Greece for the 2021-2027 
period. The current level of biodiversity financing is 
estimated to be EUR 704 million per year (in 2022 
prices) in the 2021-2027 period (see Graph A9.2). 
To  meet  the  environmental  objectives  on  the 
protection  and  restoration  of  biodiversity  and 
ecosystems  and  other  related  measures,  Greece’s 
investment gap is estimated to be around EUR 1.4 
billion per year, corresponding to 0.67% of its GDP. 

Graph A9.2: Investment needs and gaps in EUR 
million, in 2022 constant prices 

Source: European Commission, DG Environment, 
Environmental investment needs & gaps assessment 
programme, 2025 update. 

Sustainable agriculture and land use 

Greece’s carbon removals are in line with its 
2030  target  for  land  use,  land-use  change 
and  forestry  (LULUCF).  Greece’s  LULUCF  sector 
has  seen  a  notable  decline  in  removals  since 
2013.  To  meet  its  2030  target,  additional  carbon 
removals of  -1.2 million tonnes of CO2 equivalent 
(CO2eq)  are  needed  (161).  The  latest  available 

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

Regulation (EU) 2023/839. 

76 

projections show a surplus compared to the target 
of -1.2 million tonnes of CO2eq for 2030 (162). This 
indicates that Greece is on track to meet its 2030 
target. 

farming. 

In  2022, 

Greek  agriculture  is  still  a  major  source  of 
greenhouse  gas  emissions,  particularly  from 
livestock 
agriculture 
generated  7.98  million  tonnes  of  CO2eq.  This 
includes  5.09  million  tonnes  of  CO2eq  from 
livestock.  The  utilised  agricultural  area  in  Greece 
remained  relatively  constant  between  2018  and 
2023,  at  5.28  million  hectares.  The  livestock 
density  index  was  0.7  in  2020,  slightly  below  the 
EU  average  of  0.75.  Ammonia  emissions  have 
been  on  a  downward  trend,  falling  4%  between 
2018  and  2022.  Between  2017-2022,  pesticides 
at  levels  exceeding  the  thresholds  were  detected 
in 7% of Greece’s surface water bodies. 

Greece  performs  above  the  EU  average  in 
terms of organic farming practices. In 2022, a 
7%  share  of  agricultural  land  had  non-productive 
landscape  features,  above  the  EU  average  of  5.6. 
Organic  farming,  which  reduces  the  use  of 
synthetic fertilisers and pesticides, made up 17.2% 
of  Greece’s  agricultural  land.  This  is  one  of  the 
highest  levels  in  the  EU  and  well  above  the  EU 
average  of  10.50%.  Greece  makes  an  above-
average contribution to the target to have 25% of 
the EU’s agricultural land under organic farming by 
the 
2030.  The  bioeconomy,  encompassing 
production  and  processing  of  biological  products, 
contributed EUR 11.7 billion of added value to the 
country’s  gross  domestic  product 
in  2021. 
Agriculture  generated  EUR 5.9  billion,  while  the 
food  industry  contributed  EUR 2.9  billion.  One 
major  challenge  in  the  food  industry  is  the  high 
volume  of  food  waste,  at  193 kg  per  capita  in 
2021 (EU average: 134 kg per capita). The highest 
share  of  food  waste  is  at  household  level  (45%) 
followed  by  primary  production  and  processing 
(38%) (163).  The  national  waste  prevention 
programme for 2021-2030 has set a quantitative 
target  to  reduce  food  waste  per  capita  by  30% 
from  2022  to  2030,  at  both  retail  and  consumer 
level (164). 

(162) Climate Action Progress Report 2024, COM/2024/498. 

(163) Eurostat, 2024, Food waste and food waste prevention – 

estimates. 

(164) EEA, 2023, Waste prevention country profile – Greece, Link. 

 - 500 1,000 1,500 2,000 2,500BiodiversityWaterBaselineGap 
     
 
 
Table A9.1:  Key indicators tracking progress on climate adaptation, resilience and environment 

(1) The data show the average for the timespan 2006-2023 based on EFFIS - European Forest Fire Information System. 
(2) Scale: 0 (no protection gap) – 4 (very high gap). EIOPA, 2024, Dashboard on insurance protection gap for natural catastrophes. 
(3) van Daalen, K. R. et al., 2024, The 2024 Europe report of the Lancet Countdown on health and climate change: unprecedented 
warming demands unprecedented action, The Lancet Public Health. 
(4) This indicator measures total water consumption as a percentage of the renewable freshwater resources available for a given 
territory and period. Values above 20% are generally considered to be a sign of water scarcity, while values equal or greater than 
40% indicate situations of severe water scarcity. 
(5) European Commission, 2024, 7th Implementation Report from the Commission to the Council and the European Parliament on 
the implementation of the Water Framework Directive (2000/60/EC) and the Floods Directive (2007/60/EC) (Third River Basin 
Management Plans and Second Flood Risk Management Plans). 
(6) For this indicator, the EU average includes figures for the UK under the previous configuration, EU-28. 
(7) European Commission, 2023, EU Bioeconomy Monitoring System dashboards. 
(8) Nitrates can persist in groundwater for a long time and accumulate at a high level through inputs from anthropogenic sources 
(mainly agriculture). The EU drinking water standard sets a limit of 50 mg NO3/L to avoid threats to human health. 
(9) 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. 
Source: Eurostat, EEA. 

77 

Climate adaptation and preparedness:20182019202020212022202320182021Drought impact on ecosystems2.630.541.296.675.641.536.772.76[area impacted by drought as % of total]Forest-fire burnt area (1)50 783     50 783     50 783     50 783     50 783     50 783     [ha, annual average 2006-2023]Economic losses from extreme events74            293          1 131       650          21            3 872       24 142       62 981       [EUR million at constant 2022 prices]Insurance protection gap (2)----2.00         2.00         [composite score between 0 and 4]Heat-related mortality (3)280          280          280          280          280          [number of deaths per 100 000 inhabitants in 2013-2022]Sub-national climate adaptation action68            66            67            72            74            74            4144[% of population covered by the EU Covenant of Mayors for Climate & Energy]Water resilience:20182019202020212022202320182021Water Exploitation Index Plus, WEI+ (4)10.812.013.59.113.8-4.54.6[total water consumption as % of renewable freshwater resources]Water consumption5 754       5 723       5 691       5 660       5 660       -           [million m3]Ecological/quantitative status of water bodies (5)[% of water bodies failing to achieve good status]Surface water bodies---34%---59%Groundwater bodies---14%---93%Biodiversity and ecosystems:20182019202020212022202320182021Conservation status of habitats (6)48.3-----14.7-[% of habitats having a good conservation status]Common farmland bird index79.276.0-110.180.1-72.274.42000=100Protected areas---3535--26[% of protected land areas]Sustainable agriculture and land use:20182019202020212022202320182021Bioeconomy's added value (7)11 160     11 741     11 475     11 762     634 378     716 124     [EUR million]Landscape features----7              -[% of agricultural land covered with landscape features]Food waste--191193--[kg per capita]Area under organic farming9.310.310.2-17.27.99-[% of total UAA]Nitrogen balance------[kg of nitrogen per ha of UAA]Nitrates in groundwater (8)------[mgNO3/l]Net greenhouse gas removals from LULUCF (9)4 684-       5 140-       5 203-       5 013-       5 391-       -           256 077-     240 984-     [Kt CO2-eq]GreeceEU-27GreeceEU-27GreeceEU-27GreeceEU-27 
 
  
 
FAIRNESS 
ANNEX 10: LABOUR MARKET 

stark 

regional 

The  labour  market  in  Greece  has  shown 
resilience and that incremental progress has 
been  made  in  recent  years,  marked  by 
improving  labour  market  outcomes.  However, 
the  country  still  faces  structural  challenges  that 
negatively affect its competitiveness and potential 
for  economic  growth,  such  as  persistently  low 
productivity, 
disparities, 
demographic  change  coupled  with  the  emigration 
of  talent,  and  the  low  labour  market participation 
of  some  groups,  especially  women  and  young 
people. As Greece works towards meeting its 2030 
employment  rate  target,  key  objectives  to  be 
fulfilled  in  order  to  achieve  a  more  robust  and 
inclusive  labour  market  and  a  thriving  economy 
are i) increasing the labour market participation of 
underrepresented  groups, 
ii) addressing  skills 
mismatches and labour shortages in services, and 
iii) improving job quality. 

Greece’s  labour  market  has  continued  to 
improve,  but  structural  challenges  persist. 
The  employment  and  activity  rates  rose  to 
historically  high  levels,  reaching  69.3%  and  77.% 
in  2024,  respectively. However,  both  rates  remain 
well below the EU averages (75.8% and 80.4%). At 
71.1%,  the  country’s  2030  employment  rate 
target  stands  only  1.8  percentage  points (pps) 
above current levels, indicating that at the current 
pace  Greece  could  reach  this  target  before  2030 
(see  Social  Scoreboard  in  Annex  13).  The 
unemployment  rate  stood  at  10.1%  in  2024, 
marking significant progress made compared to its 
peak  of  27.8% in  2013,  but  it  remains  above  the 
EU average of 5.9%. The long-term unemployment 
rate reached 5.4%, still significantly above the EU 
average  of  1.9%  while  the  share  of  long-term 
unemployment  in  total  unemployment  is  one  of 
the  highest  in  the  EU.  Regional  disparities  are 
particularly  pronounced,  with  a 
significant 
difference in labour market performance between 
Attica  and  the  other  regions.  Similar  patterns  are 
also  observed  for  unemployment  rates,  including 
those  for  women  and  young  people  (see  Annex 
17). These deviations can be attributed to regional 
differences  (combined  effects  of  geographical, 
demographic  and  economic  factors).  While  these 
aspects  are  taken  into  account  in  the  planning  of 
labour  market  strategies,  the  effectiveness  of 
implementation  varies  significantly  due  to  the 
diverse nature and complexity of local challenges.  
Looking  ahead,  labour  force  participation  and 

78 

employment  growth  are  set  to  continue,  albeit 
slowly. 

Graph A10.1: Key labour market indicators 

Source: Eurostat, LFS [lfsi_emp_a, une_rt_a, edat_lfse_20, 
une_ltu_a] 

in  employment 

Women in  Greece  continue  to face obstacles 
to their  labour market integration  compared 
to  men.  Greece’s  female  employment  rate, 
although improving, is among the lowest in the EU 
(59.9%  vs  EU:  70.8%  in  2024).  The  situation  is 
more  striking  for  older  women  (aged  55-64),  as 
only  46.7%  were 
in  2024 
(compared  to  69.2%  of  men  in  the  same  age 
group)  due  to  the  compound  effect  of  the 
obstacles they face when entering and re-entering 
the labour market. The gender employment gap is 
nearly twice the EU average (18.8 pps vs 10.0 pps) 
and has shown no major improvement since 2013. 
In 2024, the unemployment rate for women is also 
significantly higher than the EU average (12.8% vs 
6.2%)  and  that  of  men  in  Greece  (8.0%).  In 
addition,  women  are  more  likely  than  men  to 
remain 
long-term 
unemployment  rate  for  women  (8.3%)  is  more 
than  double  compared  to  that  for  men  (4.0%). 
Furthermore, women take up part-time work more 
than men (10.3% and 3.1%, respectively). The low 
labour market participation of women is a drag on 
economic  growth  and  underlines  significant 
challenges  due  to  insufficient  access  to  childcare 
and  long-term  care  services,  institutional  barriers 
and  limited  work-life  balance  opportunities.  The 

unemployed, 

the 

as 

6768697071727374757677780102030405060702009201020112012201320142015201620172018201920202021202220232024%%ELActivity rate 20-64 (rhs)Unemployment rate 15-74 (lhs)Long-term unemployment rate 15-74 (lhs)Youth unemployment rate 15-24 (lhs)NEET rate 15-29 (lhs) 
 
 
  
 
 
levels, 

reported 

pre-pandemic 

adoption  of  remote  work,  while  now  at  a  higher 
remains 
than 
level 
underdeveloped.  The 
frequency  of 
working from home among those in jobs for which 
remote work is possible is one of the lowest in the 
EU (165).  Against  this  background,    further  actions 
could  be  explored  to  support  women  and  carers, 
including  increasing  the  availability  of  childcare 
and long-term care, increasing the number of all-
day  schools  and  promoting  flexible  working 
arrangements.  Modernised 
legislation 
offering  strengthened  protection  for  working 
parents and balanced parental leave policies could 
redistribute  care  responsibilities  and  narrow  the 
gender employment gap. 

labour 

Graph A10.2: Employment rate by sex (annual) 

Source: Eurostat, LFS [lfsi_emp_a] 

Although  improving,  there  is  still  room  to 
strengthen  the  employment  rates  of  young 
people.  In  2024,  only  44.6%  of  young  people  in 
Greece  (15-29)  participated  in  the  labour  market, 
significantly  trailing  their  peers  across  the  EU 
(55.9%).  Among  those  participating,  19.1%  were 
unemployed, almost three quarters higher  the EU 
average of 11.3%, although on a downward trend. 
In  addition,  employment  rates  lagged,  with  only 
36.1%  of  people  in  this  age  group  employed 
against about half in the EU. The difficulties faced 
by  young  people 
in  transitioning  to  quality 
employment  are  further  underscored  by  the 
persistently high share of young people neither in 

(165) Eurofound, Quality of life in the EU in 2024: Results from the 

employment nor in education and training in 2024 
(14.2%  vs  11.0%  in  the  EU),  which  has  slightly 
increased  compared  to  2023.  Young  people  also 
face  significant  disparities  between  regions  (see 
trends 
Annex  17).  These 
reflect  structural 
job  opportunities, 
limited 
challenges  such  as 
inadequate support for transitions from education 
to work, the underuse of young people’s potential, 
and  low  investments  in  targeted  active  labour 
market  policies.  The  European  Social  Fund  Plus 
supports  access  to  employment  for  young  people 
in  Greece,  mostly  through  the  national  human 
resources and social cohesion programme, with an 
allocation  of  EUR 750  million  for  measures  to 
promote the activation of young people. 

Certain underrepresented groups continue to 
face  barriers  to  labour  market  integration. 
Older  people  in  Greece  are  more  likely  to  remain 
unemployed,  as  they  struggle  to  re-enter  the 
labour  market,  with  61.7%  of  unemployed  people 
aged above 55 being long-term unemployed (Q4-
2024). To date, Greece has not set an employment 
target  for  persons  with  disabilities.  The  disability 
employment  gap  stood  at  28.5 pps  in  2024, 
4.5 pps higher than the EU average. About 52% of 
persons  with  disabilities  were  active  in  the  labour 
market compared to the EU average of 64%  (166). 
40%  of  young  persons  with  disabilities  in  Greece 
are  neither  in  employment,  nor  in  education  or 
training (167).  Challenges  persist  also  for  third-
country  nationals  (from  non-EU  countries),  whose 
employment  rate  was  at  63.8%  in  2024,  5.5 pps 
lower  than  the  national  average.  Marginalised 
sections  of  the  population,  such  as  the  Roma 
community  and  homeless  people,  require  specific 
attention to help bring them into and keep them in 
employment.  The  public  employment  services 
launched  a  new  model  office  to  serve  special 
social  groups  in  Athens,  offering  individualised 
services to enable their integration into the labour 
market.  This  is  a  promising  example,  but  further 
efforts  are  needed  to  activate  difficult-to-employ 
targeted 
groups,  particularly 
actions delivered together with training and social 
support measures. 

through  better 

labour 
Persistent  skills  mismatches  and 
shortages hinder potential productivity gains. 
Job vacancy rates remain prevalent across sectors, 

(166) European comparative data on persons with disabilities - 

Publications Office of the EU. 

Living and Working in the EU e-survey. 

(167) Ibid. 

79 

304050607080902009201020112012201320142015201620172018201920202021202220232024% population 20-64ELTotalMenWomen 
   
 
 
production 

in  Q4-2024 

in  Q4-2024.  As 

their  pre-pandemic 
two  thirds  of  employers 

(EU:  2.3%), 
reaching  1.2% 
level 
considerably  above 
(0.7%).  Around 
in 
construction  and  23.1%  of  employers  in  industry 
reported  unavailability  of  labour  as  a  factor 
the 
limiting 
unemployment rate continued its downward trend, 
overall  labour  market  slack,  reflecting  the  unmet 
demand for labour, declined to 13.1% in Q4-2024 
from 15.8% in Q4-2023. It remained above the EU 
average  (10.8%),  indicating  significant  untapped 
labour  potential,  especially  for  women  and  young 
people. Shortages are reported  in accommodation 
and  food  service  activities,  professional,  scientific 
and technical activities, administrative and support 
services, and education (168). Simultaneously, skills 
mismatches  (169)  in  Greece  remain  a  pressing 
challenge,  standing  at  20.9%  in  2024,  above  the 
EU  average  (19.2%).  Over-qualification  remains  a 
structural  issue,  with  33%  of  workers  with  post-
secondary  education  qualifications  employed  in 
positions  that  do  not  require  their 
level  of 
education 
(EU:  21.5%).  High  over-
qualification rates may reflect a slow response on 
the  part  of  the  education  and  training  system  to 
evolving labour market needs and limited capacity 
among firms to effectively harness skilled labour. 

in  2024 

Greece’s  ageing  population  and  declining 
birth  rates  pose  long-term  challenges.  While 
the pace of population decline has recently slowed, 
Greece has experienced a net loss of almost half a 
million  residents  since  2014.  Birth  rates  have 
fallen  to  historic  lows,  with  only  71 000  births  in 
2023 (compared to over 100 000 in 2012) and a 
fertility  rate  of  1.26  in  2023.  Based  on  these 
trends,  Greece’s  total  population  is  projected  to 
shrink by 25% between 2023 and 2070  – one of 
the most severe declines in the EU. The projected 
decline  of  the  working-age  population  (-7.2%  by 
2030)  risks  exacerbating  labour  shortages  and 
undermining 
the 
population  is  increasingly  ageing,  the  old-age 
dependency ratio is projected to rise from 39% in 
2022  to  a  peak  of  66%  in  around  2070.  These 
demographic  shifts  will  exacerbate  labour  market 
tightness,  underscoring  the  urgency  to  activate 
labour  market  and  better 
those  outside  the 

the  growth  potential.  As 

(168) Statistics | Eurostat 

(169) The macroeconomic skills mismatch indicator measures the 
dispersion of employment rates across skill groups (proxied 
by qualification levels, with ISCED 0-2 low; 3-4 medium and 
5-7 high). 

80 

a 

plan 

action 

10-year 

long-term 

integrate  them  into  the  labour  market.  Greece  is 
for 
developing 
demography (,  with  measures  to  mitigate  the 
impact of adverse demographic changes on fiscal 
sustainability, 
competitiveness, 
prosperity  and  social  cohesion.  In  addition  to 
targeted  active  labour  market  policies  combined 
with  training,  further  incentives  to  attract  talent 
may  be  needed  to  maintain  adequate  human 
in  key  sectors  and  bolster  Greece’s 
capital 
competitiveness. 
ageing 
population will increase the need to provide long-
term  care  services,  an  area  which  already  faces 
persisting challenges (see Annex 11). 

Furthermore, 

the 

Amplifying these developments, many people, 
especially the young and the highly qualified, 
are  searching  for  better 
job  prospects 
abroad.  Between 2008 and 2022, more than 1.3 
million Greeks emigrated, half of them aged under 
35.  The  outflow  of  talent  has  intensified  among 
recent  graduates,  resulting  in  the  graduate  stock 
being  lost  without  being  replenished (.  The  Greek 
government  has  established  a  platform (to 
connect highly skilled Greeks working abroad with 
businesses  operating  in  Greece.  Measures  that 
could help retain talent in the Greek labour market 
include:  i) improving  the  quality  of  offers  and 
outreach  activities,  including  those  for  vulnerable 
young people under the reinforced European Youth 
Guarantee; ii) strengthening education and training 
labour  market  needs;  and 
in 
iii) developing targeted employment measures. 

line  with 

Recent real wage increases only partly offset 
past  losses,  while  structurally  low  labour 
productivity  growth  constrains  wage  growth 
looking  forward.  Nominal  wage  growth 
is 
expected  to  reach  6.0%  in  2024  and  3.2%  in 
2025,  after  reaching  3.7%  in  2023 (170).  In  turn, 
real wages, after a marked drop in 2022 by 6.3% 
and a slight increase in 2023 by 0.3%, are set to 
increase  by  2.9%  in  2024  and  by  1.1%  in  2025. 
This  recovery  in  real  wages  reflects  both  lower 
inflation  and  higher  nominal  wage  growth  but  it 
would  not  yet  be  sufficient  to  fully  recoup  the 
purchasing power losses experienced in 2022 and 
2023.  Meanwhile,  statutory  minimum  wages 
increased more sizeably, by around 25% between 
January 2022 and January 2025, corresponding to 
an approximate 9.5% rise in real terms. Moderate 
wage  growth  over  the  past  10  years  has  allowed 

(170) European Commission Autumn 2024 ecoomic forecast. 

 
 
 
on 

the 

and 

for  some  cost  competitiveness  gains,  particularly 
within  the  euro  area,  as  illustrated  by  raising 
export  market 
decreasing 
shares 
macroeconomic  imbalances.  Wage  growth  has 
also  been  well  below  what  could  be  expected 
underlying  macroeconomic 
based 
developments. Over recent years, unit labour costs 
(ULCs) in Greece increased less than in most euro 
area  Member  States.  ULC  growth  is  forecast  to 
increase  from  2.5%  in  2023  to  4.9%  in  2024, 
before  softening  again  in  2025  (1.7%).  At  the 
same time, the structurally low productivity growth 
in  Greece  is  a  challenge,  limiting  the  scope  for 
further  wage 
on 
growth 
competitiveness over time. 

and  weighting 

Graph A10.3: Employment growth by contract type 

Source: Eurostat, LFS [lfsq_egaps, lfsq_etgaed] 

The  high  prevalence  of  undeclared  and 
atypical  work  negatively  affect  job  quality. 
The  prevalence  of  undeclared  work  in  the  private 
sector  in  Greece  is  higher  than  the  EU  average 
(171), which can be  due to the relatively  high level 
of  self-employment  and  the  large  share  of  micro 
and  small  businesses.  The  scale  of  undeclared 
work  is  estimated  to  decline  supported  by  recent 
tax measures, but it still remains high. To combat 
undeclared  and  underdeclared  work,  unpaid 
overtime, as well as tax evasion, Greece has been 
gradually implementing a digital work card (172) to 
accurately  record  working  hours  of  employees  in 

(171) European Labour Authority, Factsheet on undeclared work – 

Greece, March 2023. 

the  EU  average, 

real time. Although part-time work (6.2%) is lower 
involuntary  part-time 
than 
employment  stood  disproportionately  high  at 
41.2% in 2024, compared to just 18.8% in the EU, 
particularly  among  young  people.  The  high 
prevalence  of  non-standard  forms  of  work, 
including  seasonal  work,  contributes  to  low  work 
intensity.  Labour  transitions  are  also  visible,  with 
the share of population transitioning to a contract 
with  less  employment  security  than  last  year, 
decreasing  to  16.2%  in  2023,  but  still  above  the 
EU  average  (11.7%).  These  weaknesses  heighten 
poverty risks and weigh on long-term productivity, 
competitiveness and social cohesion. 

country’s 

energy-intensive 

Greece’s  workforce  is  adapting  to  the  green 
and digital transitions. In 2024, employment in 
the 
industries 
represented 1.4% of total employment, while jobs 
in  the  green  economy  are  expanding.  Between 
2016 and 2021, employment in the environmental 
goods  and  services  sector  grew  by  42.2%, 
reaching  2.1%  of  total  employment,  although 
under the EU average: 2.7%. The job vacancy rate 
in  construction,  a  key  sector  for  the  green 
transition, is around the EU average (3.0% vs 3.1% 
in  2024).  The  greenhouse  gas  emission  intensity 
of  Greece’s  workforce  has  improved,  decreasing 
from  21.1  tonnes  per  worker  in  2015  to  13.3  in 
2023 (EU: 12.3 tonnes). This reflects the progress 
made  in  decarbonising  the  economy.  By  contrast, 
the ICT sector is considerably underdeveloped, with 
ICT  specialists  accounting  for  only  2.5%  of  total 
employment in 2024, compared to 5.0% in the EU. 
Women  represent  16.0%  of  ICT  specialists  (EU: 
19.5%).  While  the  share  of  working  population 
(25-64)  having  at  least  basic  digital  skills  stands 
at 66.5% (EU: 64.7%), broader digital skills among 
the population lag, with only 52.4% of the general 
population  (age  16-74)  meeting  this  threshold  in 
2023,  lower  than  the  EU  average  of  55.6%.  To 
accommodate the extensive changes and needs of 
the  labour  market,  there  is  a  need  for  further 
targeted support of upskilling and reskilling in line 
with  the  Council  Recommendation  on  ensuring  a 
fair transition towards climate neutrality  (173) (see 
Annex 8). 

(173) Council Recommendation on ensuring a fair transition 

(172) Law 4 808/2021 on Labour Protection . 

towards climate neutrality. 

81 

-500-400-300-200-10001002003004005002007-Q12008-Q12009-Q12010-Q12011-Q12012-Q12013-Q12014-Q12015-Q12016-Q12017-Q12018-Q12019-Q12020-Q12021-Q12022-Q12023-Q12024-Q1thsELPermanent employeesTemporary employeesSelf employmentOverall 
  
 
 
ANNEX 11: SOCIAL POLICIES 

include 

vulnerable  groups.  The 

Social  conditions 
in  Greece  have  been 
improving,  following  an  overall  downward 
trend  of  the  main  indicators.  However,  this 
trend  has  recently  slowed  down.  There  are  still 
significant challenges linked to poverty  and social 
exclusion,  particularly  among  households  with 
children  and 
key 
contributing  factors 
limited  economic 
in  areas  outside  the 
opportunities,  especially 
capital  region.  Income  inequalities  persist,  due  to 
the coverage gaps and low adequacy of the social 
benefit system to reduce poverty and spread more 
evenly  the  benefits  of  economic  growth.  The 
limited  capacity  of  the  social  protection  system 
also  poses  risks  for  a  sustainable  and  inclusive 
growth  in  Greece.  Addressing  poverty  and  social 
exclusion  challenges  will  contribute  to  inclusive 
growth and competitiveness. 

Graph A11.1: At-risk-of-poverty-or-social-
exclusion (AROPE) rate and its components 

Source: Eurostat, EU-SILC [ilc_peps01n, ilc_li02, ilc_mdsd11, 
ilc_lvhl11n] 

Although  decreasing,  poverty  and  social 
exclusion  in  Greece  remain  high.  The  share  of 
people  at  risk  of  poverty  or  social  exclusion 
(AROPE)  stood  at  26.9%  in  2024,  5.7 pps  lower 
than its level in 2016, but still 5.9. pps higher than 
the  EU  average  (21%).  The  decline  in  the  AROPE 
rate  observed  since  2016,  has  been  driven  by  a 
decrease in the number of people that live in very 
low  work  intensity  households  (by  8.2  pps)  and 
that  suffer  from  severe  material  and  social 
deprivation  (by  4.9 pps).  The  poverty  gap  has 
fallen  in  recent  years  and  is  now  around  the  EU 
average  (23.3%  in  2024  vs  EU:  22.8%).  These 

82 

developments  can  be  attributed  to  above  EU 
average  economic  growth  in  2022  and  2023  
accompanied  by  strong  employment  growth,  as 
well  as  a 
longer-term  convergence  process 
through  structural  reforms  to  support  sustainable 
growth  and  tackle  inequalities.  The  number  of 
people  at  risk  of  poverty  or  social  exclusion 
increased in 2024 but has fallen by 315 000 since 
2019  (reaching  2.7  million  in  2024).  It  appears 
possible  to  achieve  the  2030  target  of  reducing 
the  number  of  people  at  risk  of  poverty  or  social 
exclusion by at least 860 000 compared to 2019. 
However,  poverty  rates  remained  higher  than  the 
EU  average  in  2024,  with  severe  material  and 
social  deprivation  at  14%  (EU:  6.4%)  and  the  at-
risk-of-poverty 
(EU:  21%). 
rate  at  26.9% 
Furthermore,  in  2023  67%  of  the  population 
reported  having  difficulties  in  making  ends  meet 
(compared to 24.1% in the EU) (174). Between 2010 
and  2023,  the  overall  evolution  of  purchasing 
power  was  very  low  in  Greece  (-28.4%)  (175), 
reflecting  the  impact  of  the  financial  crisis.  There 
are  also  regional  disparities  in  Greece’s  poverty 
levels  (see  Annex  17).  In  this  context,  continued 
efforts are needed to achieve the national poverty 
reduction target by 2030. 

is  high. 

Employment  status  plays  an  important  role 
in  determining  poverty  risks,  and  in-work 
poverty 
In  2024,  quasi-jobless 
households  experienced  a  very  high  poverty  rate 
(67.2%  vs  EU:  64.8%),  up  from  66.5%  in  the 
previous  year.  Part-timers  and  the  self-employed, 
especially  in  rural  areas  where  job  opportunities 
are  scarce  and  subsistence  farming  is  more 
predominant, had higher poverty risks compared to 
the general population, with limited improvements 
in  recent  years.  The  AROPE  rate  for    individuals 
with  low  educational  attainment  increased  by 
1.1 pps  in  2024  reaching  39.3%  (vs  EU:  33.9%). 
In-work  poverty  is    slightly  higher  than  the  EU 
average (10.7% vs EU: 8.2% in 2024). 

Certain  groups  are  particularly  affected  by 
poverty  and  social  exclusion.  In  2024,  the 
AROPE  rate  for  people  born  in  non-EU  countries, 
although  declining,  was  one  of  the  highest  in  the 
EU (47.1% vs EU: 38.2%) and the gap with native 
people  was  21.8 pps  (EU:  20.2 pps).  The  AROPE 

(174) Subjective poverty statistics, Eurostat (Link). 

(175) Economic inequalities in the EU - Key trends and policies, 

p. 11 Publications catalogue - Employment, Social Affairs & 
Inclusion - European Commission. 

051015202530352015201620172018201920202021202220232024% of populationELAt-risk-of-poverty-or-social-exclusion rateAt-risk-of-poverty rateSevere material and social deprivationPeople living in low work intensity households 
 
  
 
 
 
rate  for  persons  with  disabilities  increased  by 
2.4 pps,  reaching  33%  in  2024  and  remaining 
higher  than  the  EU  average  (28.8%).  The  severe 
material  and  social  deprivation  rate  for  persons 
with disabilities also increased by 1.8 pps in 2024, 
standing  at  18.5%.  The  EU  cohesion  policy  funds 
and  the  Recovery  and  Resilience  Facility  (RRF) 
support  active 
for 
vulnerable  groups  and  measures  to  promote  the 
integration of third-country nationals and Roma in 
the labour market. The European Social Fund Plus 
(ESF+) allocates EUR 360 million for material  and 
food  aid  to  the  most  vulnerable.  Complementary 
initiatives could further help to effectively address 
the challenges faced by vulnerable groups. 

labour  market  policies 

Graph A11.2: In-work poverty rate 

Source: Eurostat, EU-SILC [ilc_iw01, ilc_iw05, ilc_iw07] 

The risk of poverty or social exclusion among 
children  continues  to  be  high.  The  AROPE  rate 
for  children  remained  stable  at  27.9%  in  2024, 
significantly  higher  than  the  EU  average  (24.2%). 
The share of children experiencing severe material 
and  social  deprivation  stands  at  13.9%  (higher 
than  the  EU  average  of  7.9%),  which  may  hinder 
children’s  access 
to  education,  social  and 
healthcare  services.  By  2030,  Greece  aims  to 
reduce  the  share  of  children  experiencing  poverty 
or  social  exclusion  risks  by  6.6 pps  compared  to 
the 2019 level of 31.2%. To mitigate the impact of 
poverty  on  children,  Greece  is  implementing  the 
European  Child  Guarantee  (ECG)  according  to  its 
2022 action plan. The 2024 implementation report 
shows  relative  progress  in  some  areas,  such  as 
early  childhood  education  and  care.  At  the  same 
time,  gaps  remain  in  areas  such  as  access  to 

83 

school  meals.  The  implementation  of  the  ECG  is 
supported  by  EU  cohesion  policy  funds  and  the 
RRF,  including  through  expanding  early  childhood 
education  services  and  creating  new  childcare 
facilities, 
deinstitutionalisation, 
providing material assistance to the most deprived 
families  and  their  children,  and  delivering  local 
action plans to tackle child poverty. 

promoting 

Income inequalities remain relatively high. In 
2024,  the  income  of  the  richest  20%  of  the 
population  was  5.3  times  higher  than  that  of  the 
poorest  20%  (S80/S20  income  quintile  ratio), 
which was above the EU average level (4.7). Some 
of  the  key  factors  influencing  inequalities  are  a 
high share of low-wage earners and a low labour 
market  participation,  especially  for  women,  young 
people,  and  vulnerable  groups  (see  Annex  10). 
Furthermore,  there  is  scope  for  improving  the 
effects  of  taxes  and  social  transfers  on  reducing 
inequalities.  In  2024,  social  transfers  (excluding 
pensions)  reduced  poverty  by  16.6%,  which  is 
17.8 pps  below 
the  EU  average  of  34.4%. 
Meanwhile, the inequality reducing effects of taxes 
and transfers (on S80/S20) is the lowest in the EU 
(21%  vs  EU:  48%).  Another  factor  influencing 
income  inequalities  is  a  high  share  of  low-wage 
earners  (in-market  income  inequality),  while  the 
coverage of collective bargaining is low (176). 

Graph A11.3: Share of persons unable to keep 
house adequately warm (2023) 

Source: Eurostat, EU-SILC [ilc_mdes01] 

Transport  poverty  has  emerged  as  a 
challenge  in  Greece.  In  2024,  8.4%  of  the 
population  could  not  afford  a  car,  standing  well 
above the EU average of 5.6%. This share reaches 
20.7% among those at risk of poverty (EU: 15.9%). 
24.8% of persons at risk of poverty also face high 

(176) European Commission, Economic inequalities in the EU, 

2024. 

05101520253035200720082009201020112012201320142015201620172018201920202021202220232024% of employedELTotalTemporaryPart-time19.27.510.63.6Inability to keep houseadequately warm (%)AROP population unable tokeep house adequatelywarm (%)Rest of populationOuter pie:EU27Inner pie: Greece 
  
   
 
expenditures on private transport (defined as twice 
the national median), compared to an EU  average 
of  18.3%.  Reliance  on  personal  cars  for  inland 
transport  has  increased  from  81.6%  in  2011  to 
84.6%  in  2022,  with  a  concurrent  decline  in  the 
use  of  trains,  motor  coaches  and  trolleybuses 
(from 18.4% to 15.4%). This increasing reliance on 
private  cars  underscores  the  need  for  public 
transportation  to  meet  individuals’  needs  more 
effectively. 

House  prices  have  increased  significantly  in 
recent  years  and  are  estimated  to  be 
overvalued.  House  prices  have  risen  by  around 
50% since 2015 in nominal terms. They have been 
increasing  significantly  recently  (+7.6%  in  2021, 
+11.9%  in  2022,  +13.9%  in  2023),  including  in 
2024 (+8.7% in 2024). House prices are estimated 
to  be  overvalued  by  around  20%.  House  price 
growth has been driven by both reviving domestic 
and  foreign  demand,  and  limited  supply  due  to 
years  of  subdued  construction  investment.  During 
the  economic  crisis before,  declining incomes  and 
high mortgage rates had strongly impeded access 
to  adequate  housing,  leaving  almost  one  half  of 
the  population  overburdened  by  housing  costs, 
amid 
The 
normalization of wage growth and mortgage rates 
over 2015-2024 had been largely offset by 64% a 
house  price 
reviving  foreign 
demand for holiday homes. While building permits 
for new dwellings have recovered somewhat from 
their  2013-2017  nadir, 
the  new  dwelling 
completions  remain  among  the  lowest  per  capita 
in  the  EU,  and  have  been  slow  to  respond  to 
reinvigorated  price  dynamics.  At  the  same  time, 
accelerating construction activity (building permits 
grew by 31.5% in 2024) could moderate growth in 
house prices in the coming years. 

increase,  amid 

construction. 

faltering 

housing 

housing 

affordability 

Overall 
has 
deteriorated  over  the  past  decade.  House 
prices  have  dropped  significantly  compared  to 
households’  income  and  the  standardised  house 
price-to-income  ratio  has  grown  by  13%  since 
2015.  House  price  levels  compared  to  incomes 
remain  among  the  highest  in  the  EU.  Considering 
the  cost  of  mortgages,  the  borrowing  capacity  of 
households remained stable over the past decade, 
but  stands  as  one  of  the  lowest  in  the  EU.  While 
the rental market is rather small, the ratio of new 
rents  to  incomes  increased  significantly  over  the 
last decade as well. 

High  housing  costs  negatively  impact  living 
standards,  especially  for  low-income  and 
single-person households. In 2023, the share of 
housing  costs  in  disposable  household  income 
stood at 35.5%, standing 16.3 pps higher than the 
EU  (19.2%).  28.9%  of  the  population  in  Greece 
faced high housing costs above 40% of their total 
disposable  household  income,  more  than  three 
times  the  EU  average  (8.2%).  The  housing  cost 
overburden  rate  disproportionately  affects  people 
at risk of poverty (88.9% vs EU: 31.1%), as well as 
single  households  (65.1%).  The  percentage  of 
households  with  arrears  on  key  commitments 
(mortgage  or  rent,  utility  bills  or  hire  purchase) 
reached 42.8% in 2023, almost five times the EU 
average (9.2%). In addition, 27% of people lived in 
an  overcrowded  household  in  Greece  in  2024, 
significantly  above  the  EU  average  of  16.9%.  To 
improve  housing  affordability  and  availability,  a 
new  General  Secretariat  was  created  in  2023 
under  the  Ministry  of  Social  Cohesion  and  Family, 
which is solely responsible for the implementation 
of  demographic  and  housing  policy.  Greece  is 
investing in housing programmes to support young 
people  and  vulnerable  groups,  making  use  of  the 
dormant housing stock. As part of its RRP, the Spiti 
Mou  II  (177)  programme  grants  low-interest  or 
interest-free  loans  for  the  acquisition  of  a  first 
home by 20 000 young people and couples. 

the  solo  self-employed 

The social protection system in Greece faces 
major  challenges  related  to  coverage  and 
efficiency.  Improving  access  to  social  protection 
for persons in non-standard forms of employment 
and 
is  particularly 
important  for  Greece,  especially  since  the  latter 
make  up  to  a  fifth  of  the  total  population  in 
employment  (EU:  9.0%).  Many  self-employed  are 
not  covered  by  unemployment  nor  sickness 
benefits  and  some  categories  of  self-employed 
need  to  opt in  to  access pensions  and  take-up  of 
such  options  is  low.  There  are  issues  in  both 
effective  access  and  in  adequacy.  In  2023,  the 
share  of  those  at  risk  of  poverty  (before  social 
transfers)  receiving  any  benefits  was  low  for  the 
self-employed (0.2% vs 12.7% in the EU)  and for 
temporary contract workers (13.7% vs EU: 39.2%). 
At  the  same  time,  there  was  high  material  and 
social  deprivation  among 
the  self-employed 
(21.9%  vs  EU:  8.0%),  temporary  contract  workers 
(28.7% vs EU: 15.5%) and the unemployed (55.3% 
vs EU: 38.3%). In addition, long delays in reaching 

(177) Ministry of Social Cohesion and Family. 

84 

 
 
decisions  on  awarding  pensions  in  Greece  impact 
workers  reaching  retirement  age.  This  issue  also 
affects  EU  mobile  workers,  with 
important 
implications  for  the  freedom  of  movement  within 
the Single Market (see Annex 4). There is scope for 
further  actions  to  strengthen  access  to  social 
protection,  in  line  with  the  related  2019  Council 
Recommendation. 

The adequacy of the minimum income system 
in  Greece  is  low.  In  2022  the  income  of  a 
minimum  income  benefit  recipient  only  reached 
53.9%  of  the  poverty  threshold  (EU:  55.6%)  and 
25.6%  of  the  income  of  a  low-wage  earner  (EU: 
46.1%). The benefit recipient rate for persons that 
are  both  at  risk  of  poverty  and  living  in  quasi-
jobless  households  is  also  below  the  EU  average 
(64.6% vs EU: 83.5) (178). The RRP introduces a new 
method  of  payment  for  allowances  and  welfare 
benefits  through  a  single  prepaid  payment  card, 
with  the  aim  of  simplifying  the  payment  of  all 
types  of  benefits.  Further  steps  to  increase  the 
adequacy  of  minimum  income  schemes  would 
help  secure  adequate  minimum 
income  and 
ensure  active  inclusion  as  set  out  in  the  related 
Council Recommendation (179). 

Meeting healthcare and long-term care needs 
remains  a  challenge.  The  share  of  people  who 
self-reported  unmet  needs 
for  healthcare 
increased from 11.6% in 2023 to 12.1% in 2024, 
significantly  above  the  EU  average  of  2.5%  (see 
Annex  14).  The  long-term  care  (LTC)  system  is 
underdeveloped  and  there  are  no  comprehensive 
formal  LTC  services to  ensure  adequate  coverage 
in  a  coordinated  manner.  The  system  is  severely 
underfunded,  with  one  of  the 
lowest  public 
expenditure  levels  in  the  EU  (0.1%  of  GDP  vs  EU 
average  of  1.7%  in  2022).  Greece  has  high  self-
reported  LTC  needs.  Only  20.14%  of  people  aged 
65+,  with  severe  level  of  difficulty  with  personal 
care  or  household  activities,used  home  care 
services in the last twelve months in 2019 (vs EU 
average of 28.6%). Rural and remote communities 
often  rely  on  scarce,  undersized  and  low-quality 
services  (180)  with  great  regional  disparities  in 

(178) Social Protection Committee benchmarking framework on 

minimum income. 

(179) Council adopts recommendation on adequate minimum 

income - European Commission 

(180) Country Report on the implementation of the Council 

Recommendation on access to high quality and affordable 
long-term care: Greece 

place. The lack of qualified staff is also a limiting 
factor to adequate access to LTC (with 0.2 workers 
per  100  people  65+  vs  EU  average:  3.2  in  2023) 
(181). There is no legal definition of informal carers, 
on  which  the  system  relies,  and  the  support 
provided to them is not sufficient to cater to their 
needs.  The  low  availability  and  affordability  of 
quality  non-residential  community-based  care  is 
delaying the deinstitutionalisation process and the 
transition  to  independent  living  of  persons  with 
disabilities.  Greece 
is  currently  developing  a 
strategic framework for LTC services with support 
from  the  Technical  Support  Instrument  (TSI).  In 
2024, Greece adopted a new 2024-2030 strategy 
for  the  rights  of  persons  with  disabilities(182), 
aiming to coordinate efforts to improve their social 
inclusion and protection. The accompanying action 
plan  contains  EU  cohesion  policy  and  RRP 
measures, such as the personal assistant scheme, 
the  expansion  of  supported  living  houses  and 
improving accessibility to public buildings. 

Greece  has  adopted  an  ambitious  strategic 
framework  to  address  its  social  challenges. 
The  National  Strategy  for  Social  Inclusion  and 
Poverty  Reduction  (ESKE)  (183),  adopted  in  2022, 
develops  an  integrated  policy  to  prevent  and 
combat  social  exclusion  at  national,  regional,  and 
local level. Implemented well, this strategy and its 
accompanying action plan could help increase the 
effectiveness  and  efficiency  of  social  protection 
measures  and  the  country’s  overall  social  policy. 
For  the  efficient  implementation  of  this  strategic 
framework,  coordination  between 
the  public 
authorities  will  be  instrumental,  especially  as 
regards  the  sustainability  of  services.  In  working 
with  marginalised  groups,  such  as  the  homeless 
and the Roma, public services would benefit from 
improved  identification  and  effective  outreach 
methods, in cooperation with the civil society. 

(181) More than 20 hours per week. 
(182) National Strategy for the Rights of Persons with Disabilities 

2024-2030. 

(183) National Strategy for Social Inclusion and Poverty Reduction 

(ESKE). 

85 

 
 
 
 
ANNEX 12: EDUCATION AND SKILLS 

Skills  shortages,  low  basic  skills  and  low 
limit  Greece’s 
learning 
levels  of  adult 
innovation  capacity  and 
competitiveness, 
better  labour  market 
integration.  Rapidly 
changing  labour  market  needs,  including  those 
stemming  from  the  green  and  digital  transitions 
and  other  technological  changes,  together  with 
Greece’s  shrinking  workforce,  put  pressure  on  the 
education  and  training  systems  to  better  equip 
young  people  and  adults  with  labour  market 
relevant  skills.  Weaknesses  in  skills  development 
start  at  an  early  age  with  low  participation  of 
disadvantaged  children  in  quality  early  childhood 
education and care (ECEC). In addition, more than 
half  of  15-year-olds  are  not  meeting  minimum 
standards  in  basic  skills.  Furthermore,  strong 
inequalities  in  education  leave  6  out  of  10 
disadvantaged pupils without basic skills, hindering 
their  upskilling  opportunities  and  employment 
prospects later in life. The share of adults engaged 
low,  and  the 
in 
acquisition of basic digital skills is stagnating. 

learning  activities  remains 

Participation  in  ECEC  remains  low  despite 
efforts to improve it. To address the overall low 
participation  rate (184)  from  age  three  to  the 
starting  age  for  compulsory  primary  education, 
Greece  has  taken  measures  to  improve  access  to 
quality  ECEC (185).  Mandatory  preschooling  from 
age  four  has  been  fully  implemented  since  the 
2021/2022 school year. In 2019, the participation 
rate  from  age  three  stood  at  68.8%  vs  the  EU 
average  of  92.9%  and  the  EU  target  for  2030  of 
96% (186).  Monitoring  progress  is  still  challenging 
due  to  a  lack  of  recent  data  for  Greece.  The 
country is invited to increase the participation rate 
for  children  under  the  age  of  three  by  13.3 
percentage  points  (pps)  from  the  average  of 
29.5%  between  2017  and  2021  (based  on  the 
In  2023,  29.5%  of  Greek 
Barcelona  target). 
children  aged  0-2  years  attended  ECEC  (EU 
37.4%), with a lower participation rate of children 
at  risk  of  poverty  or  social  exclusion  (19.8%). 
Participation  is  being  supported  by  EU  cohesion 
policy funds (notably  ESF+) and  the Recovery and 
Resilience Facility. 

(184) The most recent Eurostat data for Greece is from 2019. 

(185) European Commission: Directorate-General for Education, 
Youth, Sport and Culture, Education and training monitor 
2024 – Greece, Publications Office of the European Union, 
2024, https://data.europa.eu/doi/10.2766/516530. 

(186) The most recent Eurostat data for Greece is from 2019. 

In 

A  large  share  of  Greek  students  does  not 
reach a minimum level of proficiency in basic 
skills. 
the  2022  OECD  Programme  for 
International Student Assessment (PISA), 47.2% of 
in  mathematics, 
15-year-olds  underperformed 
37.6%  in  reading  and  37.3%  in  sciences.  These 
rates  are  among  the  highest  in  the  EU  (EU 
averages:  29.5% 
in 
reading,  24.2%  in  science).  Given  the  shrinking 
student 
skills 
and 
mismatches,  these  figures  raise  concerns  about 
the  adequacy  of  Greece’s  future  labour  and  skills 
supply. 

in  mathematics,  26.2% 

substantial 

population 

advanced 

demonstrated 

The  low  share  of  top  performers  in  basic 
skills and creative thinking limits the pool of 
innovative  talent.  The  share  of  top  performing 
students  in  all  three  subjects  tested  by  PISA  is 
among  the  lowest  in  the  EU.  Only  2%  of  young 
Greeks 
in 
mathematics (EU: 7.9%), 2% in reading (EU: 6.5%) 
and 1.5% in sciences (EU: 6.9%). Furthermore, the 
top performance rate in creative thinking stood at 
9.5%,  the  second  weakest  in  the  EU  (vs  EU-23: 
in  skills 
25.1%).  These  major  weaknesses 
development  and  human  capital  formation  hinder 
Greece’s  potential  for  research  and  innovation, 
(see 
productivity  growth  and  competitiveness 
Annex 3 Innovation to Business) (187). 

skills 

Graph A12.1: Underachievement in mathematics by 
students’ socio-economic status, PISA 2012, 2018 
and 2022 (%) 

Source: OECD (2023) 

The  decline  in  basic  skills  since  reflects 
major  equity  and  quality  challenges  in  the 

(187) According to the 2023 European Research Area Country 

Report for Greece, attracting and retaining talent is a major 
challenge for Greece, with a negative impact on the country’s 
competitiveness. 

86 

010203040506070EUELEUELAdvantaged studentsDisadvantaged students%2012201820222030 EU target 
 
 
   
 
 
 
 
education  and 
system.  While 
training 
in  mathematics  has  grown 
underachievement 
across all socio-economic levels since 2018, it has 
reached  very  high  levels  among  disadvantaged 
students.  In  2022,  6  out  of  10  students  from 
disadvantaged backgrounds (64%) did not reach a 
minimum  level  of  proficiency  in  mathematics  (vs 
52.8% in 2018 and 48% in the EU). The rate has 
also significantly increased for the top  quartile of 
the socio-economic distribution, more than the EU 
average  (8.2 pps  vs  2.2  pps  in  the  EU),  reaching 
26.7%.  This  is  nearly  three  times  higher  than  the 
average  rate  in  other  EU  countries  (10.9%).  The 
high  share  of 
low-achieving  students  among 
advantaged students, combined with the low share 
of  top  performing  students,  points  to  structural 
challenges  in  the  quality  and  equity  of  education. 
These  challenges may  stem  from  factors  such  as 
underfunded  education  policies,  limited  school 
autonomy, 
implementing 
competence-based teaching methods and the lack 
of an evaluation culture. In addition, existing public 
data on teachers hinder assessments of shortages 
in specific subjects, and teachers’ career prospects 
remain  constrained,  further  limiting  the  quality  of 
education. 

difficulties 

in 

and 

competitiveness. 

Challenges  related  to  the  labour  market 
relevance  of  vocational  education  and 
training  (VET)  and  the  low  attractiveness  of 
dual  VET  negatively  impact  employability, 
The 
productivity 
underperformance  of  VET  in  Greece  stems  from 
several  challenges,  such  as  fragmentation  and  a 
lack  of  coordination  among  VET  providers  as  well 
as a limited relevance to labour market needs. For 
example,  in  2023,  only  15.0%  of  recent  VET 
graduates  in  Greece  had  experienced  work-based 
learning, which is below the EU average of 65.3%. 
These  factors  contribute  to  VET’s  low  appeal  and 
lead  to  lower  employment  rates  for  recent  VET 
graduates aged 20-34 (65.7% in 2024), compared 
to the EU average (79.6% in 2024), and an overall 
lower  employment  rate  for  recent  graduates  in 
Greece 
In  addition,  at  30.9%,  the 
enrolment  rate  in  medium-level  VET  in  science, 
technology,  engineering  and  mathematics  (STEM) 
fields  was  below  the  EU  average  of  36.3%  in 
2023.  Meanwhile,  employers  struggle  to  find 
qualified  workers  among  VET  students  as 
participation  in  VET  remains  low  and  outdated 
forecasting 
coupled  with  weak 
curricula, 
mechanisms  for  labour  market  skills,  exacerbate 
skills  mismatches.  These  challenges  ultimately 
weigh  on  the  productivity  and  competitiveness  of 

(73.2%). 

the 

the  Greek  economy.  Strengthening 
link 
between  the  VET  system  and  the  labour  market, 
alongside  a  stronger  role  for  social  partners  and 
other  relevant  local  players  (e.g.  employers,  trade 
unions,  municipalities  and  NGOs),  could  boost 
labour market relevance and improve outcomes. 

Greece  has  prioritised  VET  in  its  2021-2030 
strategic  framework  for  education  and 
training.  The  recovery  and  resilience  plan  (RRP) 
supports renovating and equipping VET schools. In 
addition,  a  monitoring  mechanism 
for  VET 
implemented  under  the 
graduates  has  been 
supervision  of  the  public  employment  service  to 
evaluate  the  quality  of  training  modules  and 
schools.  As  part  of  the  modernisation  process  of 
the strategic framework, 376 laboratories and 19 
model  vocational  lyceums  will  be  renovated.      In 
addition to the RRP, the European Social Fund Plus 
(ESF+)  supports  VET  in  Greece  under  the  2021-
2027  human  resources  and  social  cohesion 
programme.  The  programme  is  helping:  (i)  boost 
the  quality  and  labour  market  relevance  of  the 
educational  services  provided;  (ii)  set  up  a  better 
governance of the VET, lifelong learning and youth 
employment  ecosystems;  and  (iii)  support  the 
development  of  a  certification  system  for  career 
and  professional  guidance  counsellors.  The 
success of these initiatives will also depend on the 
active  involvement  of  all  stakeholders  at  both 
local and national level. 

is  room  to  strengthen  students’ 
There 
knowledge  of  sustainability.  Despite  Greece’s 
long  tradition  of including  environmental  topics  in 
education,  essential  knowledge  is  lacking.  Since 
the  1990s,  Greece  has  integrated  sustainability 
learning  into  curricula  through  an  interdisciplinary 
approach,  with  environmental  centres  set  up  by 
law (188)  to  support  schools.  Transversal  skills  and 
life-science  competencies  –  creative  thinking, 
climate  change,  environmental  consciousness,  the 
circular  economy,  sustainable  development  – 
constitute an integral part of the innovative action 
in schools called the ‘Skills Labs’. However, there is 
still  a  critical  need  to  increase  the  share  of  top 
performers  in  creative  thinking  and  tackle  the 
challenge  of  shifting  from  knowledge-based  to 
competence-based education. This shift could also 
focus on the integration of entrepreneurial, green, 
improve 
soft 

transversal 

skills 

and 

to 

(188) Law 1892/1990. 

87 

 
 
competitiveness  and  stimulate  economic  growth 
for a robust post financial crisis recovery. 

is 

essential 

development 

Skills 
for 
competitiveness,  resilience  and  fairness  in 
light of  the  shrinking labour force and  skills 
shortages.  Skills  shortages  are  cited  by  74%  of 
small  and  medium-sized  enterprises  in  Greece  as 
hindering  business  activities.  In  addition,  86%  of 
employers  report  that  applicants  do  not  meet the 
skills  requirements  for  advertised  positions.  Skills 
intelligence  in  Greece  includes  activities  such  as 
regular  forecasts  by  the  public  employment 
service 
(DYPA),  skills  assessments,  employer 
surveys  and  privately  funded  sectoral  studies. 
Nevertheless,  turning  skills  intelligence  into  skills 
robust 
development 
evaluation  of  existing  measures  could  help 
allocate  funding  to  those  activities  with  the 
highest returns on investment. Furthermore, better 
governance  and  coordination  of  skills  policies 
would  improve  the  response  to  these  challenges 
and  benefit  from  more  stakeholder  involvement 
and  evidence-based  policymaking.  With  support 
Instrument  (TSI), 
from  the  Technical  Support 
Greece has initiated implementing a national skills 
framework for learning pathways as set out in its 
legislation.  Further  TSI  support  is  planned  for 
carrying out digital reforms in the school system. 

is  fragmented.  A  more 

As  part  of  the  broader  need  for  upskilling 
and  reskilling  the  current  workforce,  the 
development  of  green  skills  is  particularly 
critical  for  the  green  transition.  Greece’s 
national  energy  and  climate  plan  highlights  the 
need  for  developing  green  skills  to  support  the 
country’s  transition  to  a  low-carbon  economy  and 
new  technologies.  The  country’s  economy 
is 
moderately  energy-intensive  and  is  undergoing 
restructuring  to  decrease  the  use  of  fossil  fuels. 
The  need  to  reskill  the  workforce,  particularly  in 
former  lignite  mining  regions,  has  been  identified 
as  a  priority  and  continued  efforts  are  necessary 
to reduce unemployment in these areas, which are 
significantly  affected  by  the  green  transition.  In 
in  several 
2024,  shortages  were 
occupations 
including 
agricultural  and  forestry  production  managers, 
construction  supervisors,  and  environmental  and 
occupational 
hygiene 
professionals (189).  However,  only  35%  of  the 

requiring  green  skills, 

reported 

health 

and 

Greek  population  believe  that  they  have  the 
necessary  skills  to  contribute  to  the  green 
transition,  which  is  significantly  below  the  EU 
average  of  54%  and  the  lowest  share  across 
Member States. 

Skills  and  labour  shortages  are  exacerbated 
by  the  lack  of  progress  in  acquiring  digital 
skills.  In  2023,  52.4%  of  the  population  had  at 
least  a  basic 
level  of  digital  skills,  almost 
unchanged  compared  to  2021,  while  the  EU 
average increased by 1.6 pps to 55.6%. The RRP is 
funding digital education infrastructure in the vast 
majority  of  schools  and  aims  to  tackle  gaps  in 
digital  skills  by  investing  in  an  adult  learning 
platform  and  training  for  digital  skills.  Together 
with  measures  financed  by  the  ESF+,  these 
initiatives are expected to help more than 150 000 
people improve their digital skills. 

Graph A12.2: Adult participation in learning 
(excluding guided on-the-job training, %) 

Source: Eurostat, AES 2022. 

to 

adaptability 

Low  participation  in  adult  learning  hinders 
the  workforce, 
of 
the 
and 
shortages 
skills 
contributing 
hampering  competitiveness.  The  participation 
of adults in learning activities in Greece is limited. 
In  2022,  only  15.1%  of  adults  aged  25-64 
participated  in  education  and  training  over  the 
previous  12  months,  significantly  below  the 
country’s 2030 target of 40% and the EU average 
of  39.5%(190).  Participation  in  adult  learning  is 
strongly influenced by factors such as age, level of 
educational  attainment  and  employment  status. 
Younger  people  are  more  likely  to  participate  in 
learning  activities,  while  older  people  and  those 

(189) European Labour Authority, EURES Report on labour 

(190) Eurostat, special extraction, AES 2022 (excluding guided on-

shortages and surpluses 2024, 2025. 

the-job training) 

88 

05101520253025-34 years35-44 years45-54 years 55-64 yearsISCED 0-2ISCED 3-4ISCED 5-8EmployedpersonsUnemployedpersonsPersonsoutside thelabour forceAgeEducationEmployment status2022EL overall AES 2022 
 
   
 
with  a  lower  educational  background  (ISCED  0-2) 
participate  less.  Unemployed  people  are  also  less 
likely  to  enrol  in 
learning  programmes  than 
employed  people.  In  2024,  the  employment  rate 
for  those  with  tertiary  education  (ISCED  5-8) 
stands  at  80.3%,  compared  to  just  58.7%  for 
lower  secondary 
people  with  primary  and 
education  (ISCED  0-2).  The 
low  participation 
suggests  adult  learning  is  neither  accessible  nor 
attractive,  particularly  for  those  with  lower  skills 
and older people. 

programmes, 

To meet the need for inclusive education and 
skills  development,  the  human  resource  and 
social  cohesion  programme,  supported  by 
ESF+  actions,  introduced  new  initiatives  in 
2024.  These  focus  on  expanding  second-chance 
school 
promoting  work-based 
learning and giving workers across various sectors 
access to training and certification opportunities. A 
total  of  13  regional  programmes  aim  to  tackle 
long-term  unemployment  in  parallel  by  boosting 
the  skills  and  adaptability  of  unemployed  people, 
particularly women and vulnerable groups. Despite 
these efforts, further measures may be needed in 
light  of  the  low  participation  in  adult  learning, 
including 
training,  getting  social 
partners  more  involved  and  raising  awareness  of 
the  benefits  of  lifelong  learning.  One  proposed 
solution is introducing individual learning accounts 
at  national  level.  This  initiative  has  already  been 
planned  to  be  kick-started  as  a  pilot  with  support 
from  the  Recovery  and  Resilience  Facility  and 
would  empower  people  to  take  charge  of  their 
learning and development pathways. 

facilitating 

89 

 
 
 
ANNEX 13: SOCIAL SCOREBOARD 

Table A13.1:Social Scoreboard for Greece 

(1) Update of 5 May 2025. 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 2025 for details on the 
methodology (https://employment-social-affairs.ec.europa.eu/joint-employment-report-2025-0). 
Source: Eurostat 

90 

15,13,052,414,218,85,2769,310,15,481,626,927,916,628,528,928,912,1Critical situationTo watchWeak but improvingGood but to monitorOn averageSocial Scoreboard for GreeceEqual 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, 2024)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, 2024)Gender employment gap(percentage points, population aged 20-64, 2024)Income quintile ratio (S80/S20, 2024)Dynamic labour markets and fair working conditionsEmployment rate(% of the population aged 20-64, 2024)Unemployment rate(% of the active population aged 15-74, 2024)Long term unemployment(% of the active population aged 15-74, 2024)Gross disposable household income (GDHI) per capita growth(index, 2008=100, 2023)Social protection and inclusionAt risk of poverty or social exclusion (AROPE) rate (% of the total population, 2024)At risk of poverty or social exclusion (AROPE) rate for children(% of the population aged 0-17, 2024)Impact of social transfers (other than pensions) on poverty reduction(% reduction of AROP, 2024)Disability employment gap (percentage points, population aged 20-64, 2024)Housing cost overburden (% of the total population, 2024)Children aged less than 3 years in formal childcare (% of the under 3-years-old population, 2024)Self-reported unmet need for medical care (% of the population aged 16+, 2024)Better than averageBest performers 
 
 
 
  
 
 
ANNEX 14: HEALTH AND HEALTH SYSTEMS 

Greece’s  health  system  faces  significant 
challenges. These need to be addressed if the 
country  is  to  improve  the  health  of  its 
population  and 
fairness,  while 
social 
boosting the competitiveness of its economy. 
Challenges  include:  (i)  limited  and  uneven  access 
to  healthcare;  (ii)  suboptimal  funding  and  cost-
effectiveness  of 
system,  with 
insufficient  focus  on  disease  prevention  and 
outpatient  care;  and  (iii)  shortages  of  general 
practitioners and nurses. 

the  health 

Life expectancy at birth in Greece rebounded 
at  its  pre-COVID-19  level  in  2023,  reaching 
the EU average. In 2022, women could expect to 
live  about  five  years  longer  than  men,  but  they 
could only expect to live 1.6 year longer than men 
in  good  health.  Treatable  mortality  was  slightly 
below the EU average, having decreased very little 
over the last 10 years. This suggests that there is 
room  for  improvement  in  making  the  health 
system more effective. Diseases of the circulatory 
system  (‘cardiovascular  diseases’)  and  cancer 
remain the leading causes of death, with mortality 
rates  from  the  former  just  slightly  below  the  EU 
average.  Standardised  death  rates  from  cancer 
were also close to the EU average, but they have 
barely improved since 2018.  

Graph A14.1: Life expectancy at birth, years 

available  hospital  beds  in  Greece  was  also  below 
the  EU  average,  and  Greece  displays  a  trend  of 
very  low  investment  in  the  health  sector  (191), 
raising  concerns  about  the  continuity  and  quality 
of service delivery. Public spending as a proportion 
of total health expenditure was among the lowest 
in the EU in 2022. This translated into one of the 
highest proportions of out-of-pocket payments for 
healthcare  in  the  EU  (33.5%  in  2022,  more  than 
twice  the  EU  average).  In  2022,  retail  medical 
goods accounted for 40.3% and inpatient care for 
32%  of  all  out-of-pocket  payments  (192).  At  the 
end  of  2024,  the  Greek  Parliament  approved  a 
measure to provide free medication to low-income 
pensioners starting from March 2025.  

Graph A14.2: Treatable mortality 

Age-standardised death rate (mortality that could be 
avoided through optimal quality healthcare) 
Source: Eurostat (hlth_cd_apr) 

Source: Eurostat (demo_mlexpec) 

Health expenditure in Greece is low, as is the 
share  of  health  spending  covered  by  public 
funds. In 2022, health spending per inhabitant in 
Greece  (adjusted  for  differences  in  purchasing 
power) was half the EU average. The largest share 
of health expenditure (around 42%) went towards 
inpatient  and  hospital  day  care  followed  by 
medical  goods 
(retail  pharmaceuticals  and 
therapeutic appliances, 29.5%), while the share for 
outpatient  care  was  one  of  the  lowest  in  the  EU 
(21%), suggesting that the role of primary care is 
in  Greece.  However,  the  number  of 
limited 

billion 

around 

EUR 1.5 

The Greek recovery and resilience plan (RRP) 
allocates 
to 
healthcare  reforms  and  investments,  with  a 
significant share going towards the renovation and 
upgrade  of public hospitals. The RRP also aims to 
modernise  primary  healthcare  infrastructure  and 
rationalise  pharmaceutical  spending.  Policies  to 
keep  public  spending  on  pharmaceuticals  under 
control are proving difficult in practice. The related 
RRP measure aims to build on the enforcement of 
structural 
as 
efficiency  measures, 
compulsory  prescribing  protocols  and  rational 
prescribing  practices,  to  allow  for  a  reduction  in 
clawbacks,  i.e.  repayment  orders  issued  to  the 
industry  when  spending  is  over  budget.  Only  the 
first  step  in  this  reduction  has  been  taken  so  far 
(for the 2022 clawback). 

such 

(191) On capital formation, see Health at a Glance Europe 2018, 

2020, 2022 and 2024. 

(192) OECD/European Commission (2024), Health at a Glance: 

Europe 2024 - State of Health in the EU Cycle, pp. 186-187. 

91 

81.781.480.280.881.881.380.480.180.681.420192020202120222023GreeceEU90.093.192.494.585.691.389.291.793.389.720182019202020212022per 100 000 populationGreeceEU 
 
           
      
 
 
 
Table A14.1:Key health indicators 

*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 based on 2022 (or latest 2021) data except for Luxembourg (2017). Doctors’ density data refer to practising 
doctors in all countries except Greece, Portugal (licensed to practise) and Slovakia (professionally active). Density of nurses: data 
refer to practising nurses (EU recognised qualification) in most countries except France and Slovakia (professionally active) and 
Greece (hospital only). **‘Available hospital beds’ covers somatic care, not psychiatric care. ***The EU median is used for patents. 
Source:  Eurostat database; European Patent Office; ****European Centre for Disease Prevention and Control (ECDC) for 2023. 

investment 

As  regards  public  health, 
in 
disease  prevention  could  be  increased.  In 
2022,  the  share  of  spending  on  prevention  in 
Greece  was  lower  than  the  EU  average,  with  the 
biggest  share  being  spent  on  immunisation,  likely 
as  a  result  of  one-off  spending  in  the  context  of 
COVID-19. Preventable mortality in Greece in 2022 
was just below the EU average but had increased 
by 11% since 2013. The increase is still due to the 
impact of the COVID-19 pandemic but also to the 
persistent  impact  of  cancer,  in  particular  lung 
cancer.  In  April  2024,  the  Ministry  of  Health 
presented  the  national  screening  programme, 
‘Prolamvano’,  as  part  of  the  national  prevention 
programme.  The  programme  broadens  access  to 
and/or  increases  affordability  of  breast  cancer, 
cervical cancer and colon cancer screening, as well 
as  preventive  examinations  for  cardiovascular 
in  several 
diseases.  Greece  also  participates 
EU4Health  joint  actions  on  non-communicable 
diseases, 
in  particular  cancer  treatment  and 
prevention,  such  as  EUnetCCC  (the  European 
Comprehensive  Cancer  Centre  Network),  JANE-2 
(193) and JA PreventNCD (194). Preventable mortality 
in Greece is partly linked to environmental factors 
(such  as  air  pollution,  see  Annex  7)  and  to  heavy 
smoking. Greece still has one of the highest shares 
of adults smoking daily in the EU, though the rate 
has declined over the last two decades (195). 

in  2023  the  consumption  of 
Moreover, 
antibiotics  was  still  well  above  the  EU 
average,  although  it  has  significantly  decreased 

(196)).  This 

since  2019  (by  16%,  which  is  still  well  below  the 
recommended national target of a 27% reduction 
by  2030 
raises  concerns  about 
in  particular  among 
antimicrobial 
hospital  patients  with  bloodstream  infections  in 
Greece – a group with one of the highest rates of 
antibiotic-resistant bacteria in the EU (197). 

resistance, 

There are significant challenges in accessing 
healthcare,  with  geographical,  gender  and 
income-related  disparities.  On  top  of  the  low 
share of public funding for outpatient care and the 
high  out-of-pocket  payments,  access  to  care  is 
also 
the  uneven  distribution  of 
healthcare  resources.  Despite  a  broad  benefit 
package  in  2024,  the  proportion  of  the  Greek 
population reporting unmet needs for medical care 
was  one  of  the  highest  in  the  EU,  having  further 
increased since 2023 (see Annexes 11 and 15).  

limited  by 

Such  unmet  needs  are  mainly  due  to  financial 
reasons,  and  to  a  lesser  extent  to  waiting  times. 
Distance  to  healthcare  facilities  is  the  third  most 
frequently  reported  reason,  yet  it  concerns  a 
higher  share  of  people  than  in  the  other  EU 
countries.  Lower  income  groups  are  affected  the 
most,  and  the  magnitude  of  differences  between 
income  groups  in  Greece  is  the  highest in  the  EU. 
Furthermore,  among  people  with  self-reported 
medical needs, over 1 in 5 report that their needs 
are  unmet.  The  gender  gap  in  this  area  is  among 
the  highest  in  the  EU,  with  forgone  care  reported 
by 23% of women and 20% of men. Higher unmet 

(193) JANE-2: Shaping the EU Networks of Expertise on cancer! 
(194) JA PreventNCD - Reducing Europe's cancer and NCD burden 
through coordinated strategies on health determinants. 

(196) National target set by the Council Recommendation on 

stepping up EU actions to combat antimicrobial resistance in 
a One Health approach, 2023/C 220/01. 

(195) See Health at a Glance: Europe 2024, Chapter 4. 

(197) ECDC & WHO Regional Office for Europe, 2023. 

92 

20192020202120222023EU average* (latest year) Cancer mortality per 100 000 population241.0240.8238.9230.0n.a.234.7 (2022)Mortality due to circulatory diseases per 100 000 population 327.6 335.1 339.5 324.6n.a.336.4 (2022)Current expenditure on health, purchasing power standards, per capita1 6521 7261 8661 986n.a.3 684.6 (2022)Public share of health expenditure, % of current health expenditure 61.5 61.8 62.1 62.0n.a.81.3 (2022)Spending on prevention, % of current health expenditure 1.31.84.04.5n.a.5.5 (2022)Available hospital beds per 100 000 population** 346 352 356 359n.a.444 (2022)Doctors per 1 000 population*6.26.26.46.6n.a.4.2 (2022)*Nurses per 1 000 population* 2.0 2.1 2.2 2.2n.a.7.6 (2022)*Mortality at working age (20-64 years), % of total mortality12.512.212.911.611.814.3 (2023)Number of patents (pharma / biotech / medical technology)122512101429 (2023)***Total consumption of antibacterials for systemic use,                    daily defined dose per 1 000 inhabitants****34.128.123.532.928.520.0 (2023) 
 
 
 
        
 
needs for medical examination are also reported in 
rural areas. They can be linked to people having to 
travel  greater  distances  to  healthcare  facilities 
than the EU average in all areas (especially in rural 
ones) (see Annex 17).  

A  range  of  measures  under  the  RRP  and  the 
cohesion  policy  aim  to  improve  access  to 
healthcare in Greece. Programmes under the EU 
cohesion policy for 2021–2027 earmark EUR 739 
million for Greece’s health system. There is also a 
strong  emphasis  on  primary  healthcare  under  the 
European  Regional  Development  Fund  (ERDF)  and 
a  focus  on  improved  accessibility,  specifically  for 
vulnerable groups under the European Social Fund 
Plus  (ESF+)  (see  Annex  16).  The  RRP  includes  a 
reform  to  strengthen  the  primary  healthcare 
system,  entailing  the  renovation  of  primary 
healthcare  facilities  and  the  registration  of  all 
eligible  citizens  with  a  personal  doctor  who  will 
serve  as  a  gatekeeper  to  accessing  other  health 
services. Greece also allocated RRF grants to fund 
the operational cost of 37,500 afternoon surgeries 
for patients that have been waiting longer than 4 
months  for  their  elective  surgeries.  The  operation 
of  these  afternoon  surgeries  beyond  regular 
working  hours  (which  are  paid  by  patients)  were 
introduced in 2024 by Greece to help reduce long 
lists  for  elective  surgeries,  partly  a 
waiting 
consequence of the COVID-19 pandemic.  

Persistent  shortages  of  nurses  and  general 
practitioners  limit  the  availability  of  care  in 
Greece. In 2022, the number of practising nurses 
per 1 000 population was among the lowest in the 
EU, well below the EU average, posing a significant 
challenge to the health system and more broadly, 
the  care  system  (see  Annex  11)  (198).  Looking 
ahead,  Greece  has  a  low  number  of  nursing 
graduates  in  relation  to  its  population.  While 
Greece has a high number of licensed doctors, the 
number of new graduates has been below the EU 
average over recent years, and there is a shortage 
of  doctors  in  the  public  system.  Moreover,  the 
share  of  GPs  compared  to  specialists  was  the 
lowest  in  the  EU  in  2022.  The  reform  of  the 
primary  healthcare  system  under  the  Greek  RRP 

(198) Note  that  under  the  newly  adopted  Eurostat  definition  of 
nurses  (in  line  with  Directive  2005/36/EC on  the  recognition 
of  professional  qualifications),  nurse  density  numbers  are 
significantly  lower  than  those  arrived  at  when  using  a 
broader  definition,  for  example  that  used  for  OECD  health 
statistics. However, under both definitions Greece has one of 
the lowest numbers. 

entails  a  measure  which  aims  to  address  the 
shortages  of  doctors,  in  particular  GPs.  A  family 
medicine  module  was  added 
the  basic 
curriculum in all medical schools. 

to 

foster 

innovation  and 

The  potential  of  Greece’s  health  system  to 
drive 
industrial 
development  in  the  EU  medical  sector  is  not 
being fully exploited. Greece reports a moderate 
level  of  public  spending  on  health  research  and 
development 
low  private 
(R&D),  and  very 
investment in pharmaceutical R&D, as reported by 
the  European  Federation  of 
members  of 
Pharmaceutical  Industries  and  Associations  (199). 
Only  14  European  patents  were  granted  to  Greek 
innovations  in  2023:  one  for  technologies  and  13 
for pharmaceuticals. Greece also lags behind other 
EU  countries  on  clinical  trials  (200).  As  part  of  the 
effort to rationalise healthcare spending, the Greek 
RRP  also  includes  investment  in  pharmaceuticals 
R&D by offsetting previous clawbacks. 

it 

The  uptake  of  e-health  and  the  overall 
digitalisation  of  the  health  system  has 
is  uneven  across  the 
improved,  but 
population.  The  shares  of  people  accessing  their 
personal health records online and of people using 
online health services (excluding phone) instead of 
in-person  consultations  increased  significantly  in 
Greece in 2024 compared to 2020, exceeding the 
EU average. This is despite general digital literacy 
being  slightly  below  the  EU  average  in  2023 
(52.4%  of  individuals  with  at  least  basic  digital 
skills vs an EU average of 55.6%) (see Annex 12) 
and  delays 
in  the  technical  deployment  of 
electronic  health  records  (see  Annex  6).  However, 
uptake  varies  widely  depending  on  a  patient’s 
socio-economic  background, 
in  particular  for 
patient use of online services instead of in-person 
consultations. 

Significant  investments  to  boost  the  digital 
transformation  of  healthcare  in  Greece  are 
planned under the current cohesion policy (2021-
2027)  and  the  RRP.  The  latter  includes  measures 
such  as  the  digital  transformation  of  EOPYY  (the 
National  Organisation  for  the  provision  of  Health 
Services), the roll out of the National Digital Health 
Record  and  the  creation  of  a  national  digital 
infrastructure to support cancer patients. The RRP 

(199) See EFPIA. 
(200) EMA (2024), Monitoring the European clinical trials 

environment, p. 9. 

93 

 
 
 
also  supports  home  healthcare  and  hospital-at-
that  provide  patients  with 
home  services 
telemedicine tools to monitor themselves at home. 
Greece  also  receives  several  direct  grants  under 
EU4Health,  for  example  to  expand  MyHealth@EU 
cross-border health services (201). 

(201) Electronic cross-border health services - European 

Commission. 

94 

 
 
HORIZONTAL 
ANNEX 15: SUSTAINABLE DEVELOPMENT GOALS 

dimensions 

This Annex assesses Greece’s progress on the 
Sustainable Development Goals (SDGs) along 
competitiveness, 
of 
the 
and 
fairness 
social 
sustainability, 
macroeconomic stability. 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 
inequalities  and  tackle  climate 
poverty,  fight 
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 
the EU. 

Greece  is  improving  on  SDGs  related  to 
competitiveness  (SDGs 4,  8,  9),  although  it 
the 
needs 
EU 
up  with 
catch 
innovation 
average. Greece’s  education  and 
performance (SDGs 4 and 9) is mixed, with better-

to 

Graph A15.1: Progress towards the SDGs in Greece 

(SDG 8)  continue 

than-EU  average  results  in  2024  in  early  school 
leaving  (3%  vs  9.3%)  and  in  tertiary  educational 
attainment  (44.5%  vs  44.2%)  but  significant 
challenges  in  underachievement  for  15-year-olds 
in  basic  skills  (see  Annex  12),  adult  learning 
participation  (4.4%  vs  13.3%)  and  R&D  spending 
(1.49%  of  GDP  vs  2.24%  in  2023).  Moreover, 
according  to  2023  data,  there  is  a  persisting  gap 
on basic digital skills for adults (52.4%, vs 55.6% 
EU  average).  Decent  work  and  economic  growth 
indicators 
improve  but 
remained  less  positive  than  in  other  Member 
States 
low 
employment  rate  (69.3%,  vs  75.8%  EU  average), 
the  falling,  but  still  high  share  of  long-term 
unemployed  (5.4%, vs 1.9% EU  average), and the 
high  percentage  of  young  people  not 
in 
employment, education or training (14.2%, vs 11% 
EU  average).  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 

in  2024,  as 

reflected 

the 

to 

in 

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 
five 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 28 April 2025. Data refer mainly to the period 2018-2023 or 2019-2024. Data on SDGs may 
vary across the report and its annexes due to different cut-off dates. 

95 

 
 
 
 
 
 
 
 
system. 

While  Greece  is  improving  on  some  SDGs 
related  to  sustainability  (SDGs 2,  7,  9,  12, 
15), it is moving away from others (SDGs 11, 
13, 14), and it needs to catch up with the EU 
average  on  most  of  them.  Greece’s  progress 
with  respect  to  SDGs 12  and  13  (Responsible 
consumption  and  production  and  Climate  action) 
between  2018  and  2023  is  mixed.  In  particular, 
Greece’s  net  greenhouse  gas  emissions  fell  by 
20.7%,  surpassing  the  EU  average,  while  energy 
productivity increased by 23.6%. Further, by 2023, 
the  share  of  renewable  energy  in  gross  final 
energy  consumption 
in  Greece  exceeded  EU 
average (25.3% vs 24.6%). Nonetheless, on waste 
generation  and  management,  only  5.2%  of 
materials  were  recycled  and  fed  back  into  the 
economy  for  domestic  use  in  2023  (compared 
against  11.8%  EU  average).  Meanwhile,  despite 
substantial improvement, access to affordable and 
clean energy (SDG 7) remains challenging in some 
respects. In particular, in 2023, 19.2% of Greece’s 
population  were  unable  to  keep  their  homes 
adequately  warm  (vs  10.6%  EU  average),  while 
the  country  lagged  significantly  behind  EU  peers 
on  energy  import  dependency,  with  75.6%  of 
imports  in  gross  available  energy  (EU  average: 
58.3%). Further, Greece is moving away from SDG 
11  (Sustainable  cities  and  communities),  as  6.9% 
of  Greece’s  population  was  faced  with  severe 
housing  deprivation  in  2023  (vs  4%  EU  average). 
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 SDGs related to 
social  fairness  (SDGs 1,  3,  4,  5,  7,  8,  10),  it 
needs  to  catch  up  with  the  EU  average  on 
most of them. On SDGs 1 and 3 (No poverty and 
Good  health  and  well-being),  despite  some 
improvements,  Greece  underperformed  compared 
to the EU average in 2023 across several domains: 
26.1%  of  the  population  were  at  risk  of  poverty 
and  social  exclusion  (vs  21.3%);  13.5%  were 
materially  and  socially  deprived  (vs  6.8%);  11.6% 
of the population aged 16 or over reported unmet 
needs  for  medical  care  (vs  2.4%).  In  addition, 
28.5%  of  Greece’s  population  was  overburdened 
with housing costs (vs 8.8% 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 2024, 
the employment rate of women was 18.8% lower 
than  that  of  men  (against  10%  in  the  EU),  while 
women  held  only  27.2%  of  senior  management 
positions and 23.3% of political positions (against 
32.6% and 33.4% respectively in the EU). Further, 
people  in  rural  areas  in  Greece  still  face  a 
disproportionally  higher  risk  of  poverty  or  social 
inclusion  compared  to  those  living  in  cities  than 
the EU average (6.3 percentage point difference vs 
0.2%  in  2023).  When  adjusted  for  purchasing 
power, GDP per capita in Greece was just 70% of 
the EU average in 2024. On health (SDG 3), while 
more  people  report  being  healthy  in  2023  than 
their EU counterparts (78.3% vs 67.9%), the total 
consumption  of  antibiotics  in  Greece  was  42.5% 
higher  than  the  EU  average.  Further,  36%  of 
Greece’s population aged 15 or over are smokers, 
compared to 24% EU average. Up until 2026, the 
EU  Recovery  and  Resilience  Facility  will  support  a 
wide  range  of  measures to  promote  employment, 
including 
long-term 
unemployed  and  people  with  disabilities,  and 
upgrade the national healthcare system. 

among  women, 

the 

With  the  exception  of  SDG 16,  Greece  is 
improving on SDGs 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  2024  (SDG 8),  which 
corresponded  to  57.01%  of  the  EU  average. 
Further, despite improvements, the investment gap 
persists:  15.2%  of  GDP  in  2023  vs  21.7%  in  the 
EU in 2024, while some 9.9% of Greece’s working 
population  was  at  risk  of  poverty  in  2023, 
compared  to  8.3%  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 2024 (49 vs 
62  EU  average)  and  the  higher  share  of  the 
population  reporting  crime,  violence  or  vandalism 
in their area in 2023 (20.9% vs 10% EU average). 
The EU Recovery and Resilience Facility is expected 
to help bridge a large part of Greece’s investment 
gap  and  support  broad-based  structural  reforms, 
justice,  public 
the  areas  of 
including 
administration  and  the  business  environment, 
which  are  expected  to  improve  the  functioning  of 
the economy at large. 

in 

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

96 

 
ANNEX 16: CSR PROGRESS AND EU FUNDS IMPLEMENTATION 

recommendations 

Greece faces structural challenges in a wide 
range  of  policy  areas,  as  identified  in  the 
country-specific 
(CSRs) 
addressed  to  the  country  as  part  of  the 
European  Semester.  They  refer,  among  other 
things,  to  taxation  policy  and  tax  administration, 
financial  services  and  financial  stability,  the 
business  environment,  skills  and  education, 
public 
healthcare, 
administration  including  the  capacity  to  manage 
EU  funds,  climate  adaptation,  transport  and 
energy. 

protection, 

social 

the 

The Commission has assessed the 2019-2024 
CSRs  considering  the  policy  action  taken  by 
Greece  to  date  and  the  commitments  in  its 
recovery  and  resilience  plan  (RRP).  At  this 
stage,  Greece  has  made  at  least  ‘some  progress’ 
on 78% of the CSRs (202), and ‘limited progress’ on 
19% (Table A16.2). 

to 

by 

competitiveness, 

EU funding instruments  provide considerable 
resources 
supporting 
Greece 
investments  and  structural  reforms  to 
increase 
environmental 
sustainability  and  social  fairness,  while 
helping  to  address  challenges  identified  in 
the  CSRs.  In  addition  to  the  EUR 35.9  billion 
funding  from  the  Recovery  and  Resilience  Facility 
(RRF) in 2021-2026, EU cohesion policy funds (203) 
are  providing  EUR 20.5  billion 
to  Greece 
(amounting  to  EUR 25.7  billion  with  national  co-
financing)  for  2021-2027  (204)  to  boost  regional 
competitiveness  and  growth.  Support  from  these 
instruments  combined  represents  around  25.1  % 
of  2024  GDP  (205).  The  contribution  of  these 
instruments  to  different  policy  objectives 
is 
outlined 
in  Graphs  A16.1  and  A16.2.  This 
substantial  support  from the  EU  comes  on  top  of 
financing  provided  to  Greece  under  the  2014-

2020  multiannual  financial  framework,  which 
financed  projects  until  2023  and  has  had 
significant  benefits  for  the  Greek  economy  and 
society.  Project  selection  under  the  2021-2027 
cohesion  policy  programmes  is  advanced,  while 
implementation  of  selected  projects  has  also 
gained  momentum, 
substantial 
investment. 

enabling 

The Greek RRP contains 103 investments and 
75  reforms  to  stimulate  sustainable  growth 
and  help  the  transition  towards  a  low-
carbon, digital and more inclusive economy. A 
year  before  the  end  of  the  RRF  timespan, 
implementation  is  underway  with  59%  of  the 
funds  disbursed.  At  present,  Greece  has  fulfilled 
35% of the milestones and targets in its RRP (206). 
Increased efforts are needed to ensure completion 
of  all  RRP  measures  by  31 August  2026.  Among 
other  challenges,  implementation  is  hindered  by 
weak  coordination,  lengthy  litigation  processes  to 
address  legal  claims  against  public  procurement 
procedures, and slow transfer of property rights. 

Greece  also  receives  funding  from  several 
other  EU  instruments,  including  those  listed 
in  Table  A  16.1.  Most  notably,  the  common 
agricultural  policy  (CAP)  provides  Greece  with  an 
EU  contribution  of  EUR 13.5  billion  under  the CAP 
strategic  plan  for  2023-2027  (207).  A  further 
EUR 1.6  billion  are  available  under  the  Asylum, 
Migration  and  Integration  Fund,  together  with  the 
Border  Management  and  Visa  Instrument  (BMVI) 
and 
Furthermore, 
operations  amounting  to  EUR 769  million  (208) 
have  been  signed  under  the  InvestEU  instrument 
backed  by  the  EU  guarantee,  improving  access  to 
financing for riskier operations in Greece. 

security 

internal 

funds. 

(202) 9% of the 2019-2024 CSRs have been fully implemented, 
18% substantially implemented and 51% have reached 
some progress. 

(203) In 2021-2027, cohesion policy funds include the European 
Regional Development Fund, the Cohesion Fund, the 
European Social Fund Plus and the Just Transition Fund.  The 
information on cohesion policy included in this annex is 
based on adopted programmes with the cut-off date of 5 
May 2025. 

(204) European territorial cooperation (ETC) programmes are 

excluded from the figure. 

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

(206) As of mid-May 2025, Greece has submitted 5 payment 

requests. 

(207) An overview of Greece’s formally approved strategy to 

implement the EU’s common agricultural policy nationally 
can be found at: https://agriculture.ec.europa.eu/cap-my-
country/cap-strategic-plans/greece_en  

applicable. GDP figures are based on Eurostat data for 2024. 

(208) Data reflect the situation on 31.12.2024. 

97 

 
 
 
 
 
 
Graph A16.1: Distribution of RRF funding in Greece 
by policy field 

will  benefit 
internet.  The 
from  high-speed 
European  Social  Fund  Plus  (ESF+)  supports  skills 
initiatives across all sectors in Greece, earmarking 
around  EUR 1.6  billion  (about  29%  of  the  total 
ESF+  allocation)  for  this  purpose.  Emphasis  is 
given  to  improving  the  quality  and  labour  market 
relevance  of  education  and  training  systems, 
including  vocational  education  and  training  and 
lifelong  learning.  Around  EUR 345  million  are 
targeted at developing green skills and jobs, while 
more  than  EUR 93  million  are  dedicated  to 
boosting digital skills. 

(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 circle 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. 
Source: European Commission 

Graph A16.2: Distribution of cohesion policy 
funding across policy objectives in Greece 

Source: European Commission 

Cohesion  policy  funds  aim  to  increase  the 
productivity  and  competitiveness  of  Greek 
firms and improve the business environment. 
institutions  and 
research 
Greek  businesses, 
industrial  ecosystems  receive  support  to  enhance 
regional  competitiveness.  The  competitiveness 
programme  supported  by  the  European  Regional 
Development Fund (ERDF) will benefit over 28 000 
firms in total, while it will enable 4 023 small and 
medium-sized  enterprises  to  introduce  innovative 
products  and/or processes.  Furthermore,  the  ERDF 
organisations 
will 
participating  in  joint  research  projects,  while  an 
additional  EUR 954  million  is  expected  to  boost 
regional 
competitiveness 
programmes.  ERDF  supports 
roll-out  of 
ultrafast  broadband,  which  is  a  prerequisite  for 
regional competitiveness. As a result, an additional 
116 000  dwellings  and  nearly  17 000  businesses 

the  13 
the 

research 

through 

support 

114 

98 

are 

supports 

It  also 

contributing 

infrastructure. 

in  Greece,  for 

to 
Other 
funds 
competitiveness 
instance 
through  open  calls.  The  Connecting  Europe 
Facility  has  financed  strategic  investments  in  rail 
and maritime infrastructure, as well as alternative 
fuel 
key 
infrastructure  for  energy  market 
integration, 
decarbonisation of the energy system and security 
of  energy  supply,  as  well  the  deployment  of 
submarine  cables  among  the  Aegean  islands  and 
the  deployment  of  5G  in  smart  communities. 
Horizon  Europe  has  supported  research  and 
innovation, 
to 
scaling  up  innovations,  with  digital,  industry  and 
space,  as  well  as  climate,  energy  and  mobility  as 
top  priorities.  In  Greece,  the  Technical  Support 
Instrument (TSI)  is  focused  in  2024  on  enhancing 
the  coordinating mechanism  supporting  the  rights 
the 
of  persons  with  disabilities,  promoting 
integration  of  AI  in  the  public  administration  and 
strengthening  the  green  budgeting  reform.  It  also 
helps  Greece  to  enhance  its  overall  capacity  to 
investments 
implement  specific 
included in its RRP.  

from  scientific  breakthroughs 

reforms  and 

to 

the 

Greece’s  RRP  also  contains  ambitious 
business 
improve 
measures 
environment  and  competitiveness.  As  part  of 
the  measures  covered  by  payment  requests 
submitted over the past year, EUR 7.1 billion loans 
have been singed to support private investment in 
research,  development  and  innovation,  increasing 
export  capacity,  and 
the  green  and  digital 
transition.  The  Income  Tax  Code  and  Code  of  Tax 
Administration  have  been  simplified  and  updated 
in  the  light  of  EU  best  practices.  The  justice 
system’s  IT  capabilities  have  been  reinforced;  14 
additional magistrate court judges have enrolled in 
the school of judges and legislation for the judicial 
clerks’  performance  tool  has  entered  into  force. 
Contracts have been awarded for the development 
of  small  satellites  to  support  connectivity  and 

Green transitionDigital transformationSmart, sustainable andinclusive growthSocial & territorial cohesionHealth & resilienceNext generationSmarter EuropeGreener EuropeConnected EuropeSocial EuropeEurope closer to citizensJTF specific objective 
          
 
       
earth  observation  applications 
for  mapping, 
shipping, precision agriculture and spatial planning, 
whilst  a  reform  to  encourage  the  transition  to 
gigabit  connections  has  been  completed.  To 
improve road safety, contracts have been awarded 
for interventions in 2 411 dangerous locations and 
for  the  construction  of  the  Cretan  Northern 
Highway.  

EU  funds  are  playing  a  significant  role  in 
promoting  environmental  sustainability  and 
green transition in Greece during the current 
seven-year  EU  budget  (multiannual  financial 
framework). Cohesion policy invests substantially 
in  the  Greek  water  and  wastewater  sector:  more 
than  EUR 1.17 billion 
is  allocated  to  relevant 
actions, including integrated water and wastewater 
management,  sustainable  desalination  in  remote 
islands  and  essential  infrastructure  to  ensure 
compliance  with  EU 
In 
relation to the circular economy, the ERDF is used 
for  infrastructure  to  increase  waste  recycling 
capacity  by  over  3  225  000  tonnes  annually. 
Furthermore,  an  additional  1.1  million  people  will 
be protected from flood-related risks. Greece also 
allocates  EUR 3.5  billion  under  the  CAP  strategic 
plan to environmental and climate objectives such 
as  organic  farming,  alternative  methods  of  plant 
protection  with  a  view  to  reducing  pesticides, 
nature  protection,  saving  water  and  improving 
infrastructure. 

laws  on  wastewater. 

in 

households. 

social 
Greek 

Greece.  Social 
investments  under  the  ERDF 
include more than  EUR 400  million  of  support  for 
inclusive  and  sustainable  education  infrastructure 
and  equipment  at  all  levels  (primary,  secondary 
and  tertiary)  and  an  additional  EUR 50 million  for 
infrastructure  benefiting 
labour  and 
vulnerable 
Another 
EUR 360 million 
healthcare 
invested 
infrastructure  and  equipment,  including  upgrades 
in  the  primary  healthcare  network,  is  expected  to 
improve healthcare outcomes in the Greek regions. 
The ESF+ provides around EUR 1.5 billion to foster 
social  cohesion  in  Greece,  while  over  EUR 670 
million are allocated to measures combating child 
poverty.  The  13  regional  programmes  contain 
actions  improving  access  to  inclusive  education, 
enhancing  accessibility  to  social  and  healthcare 
services,  and  promoting  integration  and  active 
inclusion, particularly for people at risk of poverty 
and  disadvantaged  groups,  such  as  non-EU 
nationals  and  Roma.  Among  their  interventions, 
the  ESF+  programmes  will  support  at 
least 
176 000  people  in  unemployment,  more  than 
11 000  children  and  students  with  a  disability  as 
well  as  the  operation  of  around  1 250  social  and 
primary  healthcare  structures  at  local  level.  In 
addition,  the  AMIF  supports  the  capacity  of  the 
asylum  service  to  manage  the  procedures.  It  also 
supports  legal  migration,  the  integration  of  third-
country  nationals  into  the  Greek  society  and  the 
countering of irregular migration via returns.  

Greece’s  RRP  contains  several  reforms  and 
investments  related  to  fairness  and  social 
policies.  Contracts  have  been  awarded 
to 
strengthen  (i)  the  quality  control  system  for 
vocational  education,  (ii)  and  the  training  units  of 
the 
The 
Employment 
pharmaceuticals  clawback  for  2022  has  been 
reduced by EUR 74.7 million compared to 2020. 

Service. 

Public 

in 

the  Cyclades 

Greece’s  RRP  has  a  comprehensive  set  of 
reforms  and 
investments  for  the  green 
transition.  Measures  covered  by  the  payment 
requests  submitted  over  the  last  year  include, 
among others, the award of contacts for electricity 
interconnection 
islands  and 
Peloponnese,  as  well  as  for  the  upgrade  of  the 
electricity  distribution  network;  a  2.5 GW  increase 
in  electricity  production  capacity  from  renewable 
energy  sources;  and  contracts  for  electricity 
storage  systems  with  a  capacity  exceeding 
700 MW. In addition, energy efficiency renovations 
have  been  completed  for  8  000  residential  units 
with  primary  energy  savings  exceeding  30  %. 
Initial  steps  have  been 
to  upgrade 
37 703 ha  of  degraded  forest  ecosystems  and  to 
improve  water 
increase  the 
infrastructure  to 
availability  and  quality  of  drinking  water  and 
reduce leakage.  

taken 

Promoting  fairness,  social  cohesion  and 
improving  access  to  basic  services  are 
among  the  key  priorities  of  EU  funding  in 

99 

 
Table A16.1:Selected EU funds with adopted allocations - summary data (million EUR) 

(1) The cut-off date for data on disbursements under the RRF is 31 May 2025. 
(2) Cohesion policy 2014-2020 allocations include REACT-EU appropriations committed in 2021-2022. 
(3) These amounts relate only to disbursements made from 2021 onwards and do not include payments made to the Member 
State before 2021.  Hence the figures do not comprise the totality of payments corresponding to the 2014-2020 allocation. The 
cut-off date for data on disbursements under EMFAF and EMFF is 29 April 2025.  The cut-off date for data on disbursements 
under cohesion policy funds, AMIF, BMVI and ISF is 5 May 2025. 
(4) AMIF - Asylum, Migration and Integration Fund; BMVI- Border Management and Visa Instrument; ISF - Internal Security Fund. 
(5) Expenditure outside the CAP strategic plan is not included. 
(6) The cut-off date for data on EARDF disbursements is 5 May 2025. The information on EAGF disbursements is based on the 
Member State declarations until March 2025.  Disbursements for the Direct Payments (EAGF) started in 2024. 
Source: European Commission 

100 

Instrument/policyDisbursed since 2021   (1)             RRF grants (including the RepowerEU allocation)9 936.3RRF loans11 401.8Instrument/policyAllocation 2014-2020 (2)Allocation 2021-2027 Disbursed since 2021 (3)    (covering total payments to the Member State on commitments originating from both 2014-2020 and 2021-2027 programming periods) Cohesion policy (total)18 267.220 540.310 415.9European Regional Development Fund (ERDF)10 980.810 672.05 917.2Cohesion Fund (CF)2 775.42 932.71 791.8European Social Fund (ESF, ESF+) and the Youth Employment Initiative (YEI)4 511.05 560.42 247.4Just Transition Fund (JTF)1 375.1 459.5FisheriesEuropean Maritime, Fisheries and Aquaculture Fund (EMFAF) and the European Maritime and Fisheries Fund (EMFF) 379.7 363.7309.5Migration and home affairsMigration, border management and internal security - AMIF, BMVI and ISF (4) 648.21 584.5765.3The common agricultural policy under the CAP strategic plan (5)Disbursements under the CAP Strategic Plan (6)Total under the CAP strategic plan3 767.8European Agricultural Guarantee Fund (EAGF)3 343.2European Fund for Agricultural Development (EAFRD) 424.69 844.93 636.0Allocation 2021-2026 18 220.417 728Allocation 2023-202713 480.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
        
 
Table A16.2:Summary table on 2019-2024 CSRs 

(Continued on the next page) 

101 

GreeceAssessment in May 2025Relevant 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 progressSDGs 1, 2, 8, 9, 10, 162019 CSR 2Some progressFocus investment-related economic policy on sustainable transport and logistics,Limited progressSDGs 10, 11environmental protection, energy efficiency, renewable energy and interconnection projects,Some progressSDGs 6, 7, 9, 10, 11, 12, 13digital technologies, Some progressSDGs 9, 10, 11R&D, Some progressSDGs 9, 10, 11education, Some progressSDGs 4, 10, 11skills, Some progressSDGs 4, 10, 11employability, Some progressSDGs 8, 10, 11health, Limited progressSDGs 3, 10, 11and the renewal of urban areas, taking into account regional disparities and the need to ensure social inclusion.Some progressSDGs 1, 2, 10, 112020 CSR 1Limited progressInlinewiththegeneralescapeclause,takeallnecessarymeasurestoeffectivelyaddressthepandemic,sustaintheeconomyandsupporttheensuingrecovery.Wheneconomicconditionsallow,pursuefiscalpoliciesaimedatachievingprudentmedium-termfiscalpositions and ensuring debt sustainability, while enhancing investment. No longer relevantSDGs 8, 16Strengthen the resilience of the health system and Limited progressSDG 3ensure adequate and equal access to healthcare. Limited progressSDGs 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 implementationSDGs 1, 2, 8, 10ensuring effective activation support. Some progressSDG 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 progressSDGs 8, 9Front-load mature public investment projects and Substantial progressSDGs 8, 16promote private investment to foster the economic recovery. Some progressSDGs 8, 9Focusinvestmentonthegreenanddigitaltransition,inparticularonsafeandsustainabletransport and logistics, Limited progressSDG 11clean and efficient production and use of energy, Some progressSDGs 7, 9, 13environmental infrastructure and Limited progressSDGs 6, 12, 15very-high capacity digital infrastructure and Some progressSDG 9skills. Some progressSDG 4Improve the effectiveness and digitalisation of the public administration andSome progressSDGs 9, 16promote digital transformation of businesses. Some progressSDG 92020 CSR 4Substantial progressContinueandcompletereformsinlinewiththepost-programmecommitmentsgivenattheEurogroupof22June2018torestartasustainableeconomicrecovery,followingthegradual easing up of constraints imposed due to the COVID-19 outbreak.Substantial progressSDGs 1, 2, 8, 9, 10, 162021 CSR 1No longer relevantIn2022,usetheRecoveryandResilienceFacilitytofinanceadditionalinvestmentinsupportoftherecoverywhilepursuingaprudentfiscalpolicy.Preservenationallyfinanced investment. No longer relevantSDGs 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. No longer relevantSDGs 8, 16Atthesametime,enhanceinvestmenttoboostgrowthpotential.Payparticularattentiontothecompositionofpublicfinances,onboththerevenueandexpendituresidesofthebudget,andtothequalityofbudgetarymeasuresinordertoensureasustainableandinclusiverecovery.Prioritisesustainableandgrowth-enhancinginvestment,inparticularinvestment supporting the green and digital transition. No longer relevantSDGs 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.No longer relevantSDGs 8, 16 
 
 
  
 
Table (continued) 

(Continued on the next page) 

102 

2022 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.No longer relevantSDGs 8, 16Expandpublicinvestmentforthegreenanddigitaltransitions,andforenergysecuritytakingintoaccounttheREPowerEUinitiative,includingbymakinguseoftheRecoveryand Resilience Facility and other Union funds.No longer relevantSDGs 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.No longer relevantSDGs 8, 16Buildingonreformsundertakenaspartoftherecoveryandresilienceplan,improvetheinvestment-friendlinessofthetaxationsystembyintroducingawideradvancetax-rulingsystemNo progressSDGs 8, 10, 12and review the structure of the tax burden on the self-employed.Substantial progressSDGs 8, 10, 12Safeguardtheefficiencyofthepublicadministrationwhileensuringitcanattracttherightskills and preserving consistency with the unified wage grid.Some progressSDG 162022 CSR 2Substantial progressProceedwiththeimplementationofitsrecoveryandresilienceplan,inlinewiththemilestones and targets included in the Council Implementing 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.Completeoutstandingreformsthathavebeenpursuedunderenhancedsurveillance,including the cadastre reform.Substantial progressSDGs 3, 8, 92022 CSR 3Some progressWithaviewtoensuringadequateandequalaccesstohealthcare,completetherolloutoftheprimaryhealthcarereforminlinewiththeframeworkamendedunderenhancedsurveillance,includingstaffingofallprimaryhealthcareunits,implementingpopulationregistration and introducing effective gatekeeping by general practitioners.Some progressSDG 32022 CSR 4Some progressReduce overall reliance on fossil fuels, and diversify imports of fossil fuelsSome progressSDGs 7, 9, 13by accelerating deployment of renewable energy and the development of infrastructure that would enable renewable hydrogen.Some progressSDGs 7, 9, 13Alsoaddressdependencythroughensuringsufficientcapacityofelectricitynetworksandinterconnections as well as gas interconnections and diversifying gas supply routes.Substantial progressSDGs 7, 9, 13Strengthen the energy services market frameworkSome progressSDGs 7, 9, 13andstepupenergyefficiency-enhancingmeasuresthroughreformsandmarketincentives to support the decarbonisation of the building sectorSome progressSDG 7and the transport sector, particularly by promoting electric mobility.Limited progressSDG 112023 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 implementationSDGs 8, 16Ensureprudentfiscalpolicy,inparticularbylimitingthenominalincreaseinnationallyfinanced net primary expenditure in 2024 to not more than 2,6 %.Full implementationSDGs 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 progressSDGs 8, 16Fortheperiodbeyond2024,continuetopursueamedium-termfiscalstrategyofgradualandsustainableconsolidation,combinedwithinvestmentsandreformsconducivetohigher sustainable growth, in order to achieve a prudent medium-term fiscal position.Full implementationSDGs 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 progressSDGs 8, 10, 12, 16enlargethetaxbase,includingbyreviewingthecurrenttaxationstructurefortheself-employed,Substantial progressSDGs 8, 10, 12and strengthen tax compliance by extending the use of electronic payments.Substantial progressSDGs 8, 10, 12, 16Preserve and increase the operational autonomy of the tax authority.Some progressSDGs 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 progressSDG 16Pursuetheongoingreductionofnon-performingloansandfurtherimprovethefunctioningof the secondary non-performing loans market.Substantial progressSDG 8RRP 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) 

Source: European Commission 

103 

2023 CSR2MaintainthemomentuminthesteadyimplementationofitsrecoveryandresilienceplanandswiftlyfinalisetheREPowerEUchapterwithaviewtorapidlystartingtheimplementationthereof.Ensurecontinuedsufficientadministrativecapacityinviewofthesizeoftheplan.Proceedwiththespeedyimplementationofcohesionpolicyprogrammes,in close complementarity and synergy with the recovery and resilience plan.2023 CSR 3Some progressToensureadequateandequalaccesstohealthcare,completetheroll-outoftheprimaryhealthcareframeworkandadoptstrongerincentivesfortheenrolmentofanadequatenumberoffamilydoctorsinordertoachievefullpopulationcoverageandpopulationregistration.Some progressSDG 3Finalise cadastral reform by completing cadastral mapping and through the establishment and operation of the Hellenic Cadastre Agency.Substantial progressSDGs 8, 92023 CSR 4Some progressReduce reliance on fossil fuels andSome progressSDGs 7, 9, 13further accelerate the diversification of energy supply routes.Some progressSDGs 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 progressSDGs 7, 8, 9, 13Stepupthedeliveryofmeasuresthatimproveenergyefficiency,includingtargetedmeasures for energy-poor households and the installation of smart meters, andSome progressSDGs 1, 2, 7, 10policy efforts aimed at the provision and acquisition of skills and competences needed for the green transition.Limited progressSDG 4Supportthedecarbonisationofthetransportsector,inparticularbypromotingelectricvehicles.Limited progressSDG 112024 CSR 1Some progressSubmit the medium-term fiscal-structural plan in a timely manner.Full implementationSDGs 8, 16In line with the requirements of the reformed Stability and Growth Pact, limit the growth in net expenditure in 2025 to a rate consistent with, inter alia, putting the general government debt on a plausibly downward trajectory over the medium term and maintaining the general government deficit below the 3% of GDP Treaty reference value.Full implementationSDGs 8, 16Continueimprovingtheinvestmentfriendlinessofthetaxationsystembyreinforcingitslegal certaintySome progressSDGs 8, 9, 10, 12and continue increasing the operational autonomy of the tax authority.Some progressSDGs 8, 16Safeguardtheefficiencyofpublicadministrationwhileensuringthatitcanattracttherightskills and preserving consistency with the unified wage grid,Some progressSDG 16and operationalising the multi-level governance framework.Limited progressSDG 16Ensurethatexternalbalancescontinueonasteadilyimprovingpathbypromotingbalanced growth and supporting productive domestic investment.Some progressSDGs 8, 9 Pursue the ongoing reduction of the stock of non-performing loans held by banks and credit servicers, including by further improving the e-auction processes to reduce the ratio of unsuccessful auctions.Substantial progressSDG 82024 CSR 2Strengthen administrative capacity to manage EU funds, accelerate investments and maintain momentum in the implementation of reforms. Address relevant challenges to allow for continued, swift and effective implementation of the recovery and resilience plan, including the REPowerEU chapter, ensuring completion of reforms and investments by August 2026. Accelerate the implementation of cohesion policy programmes. In the context of their mid-term review, continue focusing on the agreed priorities, taking action to better address the needs in the area of prevention and preparedness against climate change-related risks, while considering the opportunities provided by the Strategic Technologies for Europe Platform initiative to improve competitiveness.2024 CSR 3Some progressBoost competitiveness through tackling underachievement in basic skills,Limited progressSDG 4reinforcing the management of state assetsSome progressSDG 9and completing the regulatory framework for environmental licensing.Some progressSDGs 8, 9 2024 CSR 4Some progressReduce reliance on fossil fuels by accelerating the decarbonisation of the transport sector.Limited progressSDG 11Strengthenmanagementofnaturaldisastersbyputtinginplaceaneffectiveearlywarningand risk prevention system.Some progressSDGs 1, 7, 8, 11, 13RRP 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.RRP 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. Progress with the cohesion policy programming is monitored in the context of the Cohesion Policy of the European Union. 
 
  
 
ANNEX 17: COMPETITIVE REGIONS 

Favourable  economic  conditions  provide  an 
in 
opportunity  for  regional  convergence 
Greece.  Building  on  the  competitive  advantages 
of  regions 
in  key  sectors  of  the  economy, 
improving  the  country’s  digital  connectivity  and 
climate  adaptation  are  all  key  in  securing  social 
and economic convergence. 

Despite  the  long-term  divergence  of  the 
Greek economy from the EU average in terms 
of  GDP  per  capita 
(purchasing  power 
standard (PPS)), between 2014 and 2023, all 
regions  experienced  growth,  which  has  been 
mostly exceeding the EU average since 2021. 
This  trend  is  expected  to  continue  throughout 
2024-2026 and provides an opportunity to reduce 
economic  disparities,  which  have 
regional 
remained  broadly  unchanged,  with  47%  of  the 
country's  economic  activity  taking  place  in  the 
capital  region  of  Attiki.  Slightly  above  the  EU 
average  real  GDP  per  head  growth in  2014-2023 
was  higher  than  2%  in  Attiki,  Kentriki  Makedonia 
and  Sterea  Elláda,  while  it  was  negative  in  Ditiki 
Makedonia (-2.5%).  

The  creation  of  new  opportunities  for 
regional  growth would be  beneficial  in order 
to  stabilise  the  working-age  population  and 
sustain  GDP  growth  in  the  long  term.  Most 
regions  are  experiencing  depopulation,  which 
poses fiscal, economic and social challenges. Dytiki 
Makedonia has been particularly affected, with an 
annual  population  decrease  of  12  per  1 000 
residents  in  2023,  closely  followed  by  Sterea 
Elláda  and  Peloponnisos  with  decreases  of 

10 per 1 000  residents.  Depopulation  has  been 
caused by the joint effect of net out-migration and 
a  negative  natural  change.  The  share  of  older 
people  (aged  65+)  is  higher  than  the  EU  average 
while  the  share  of  the  population  that  is  of 
working age (15 to 64) is below the EU average in 
almost  all  Greek  regions,  weighing  on  fiscal 
sustainability. 

Graph A17.1: Labour productivity per hour 

Unit: Real GDP per hour worked (EUR, 2015 prices) 
Source: Eurostat 

Gaps  in  productivity  levels  between  Attiki 
and other regions have remained constant in 
the  last  nine  years.  Greece  has  been  slowly 
catching  up  with  other  Member  States  in 
southern Europe such as Spain and  Portugal. 
However, the convergence in productivity per hour 
to the EU has been hampered, as average annual 
growth  stagnated.  (Graph  A17.1)  In  addition  to 
tourism,  sectors  of  the  economy  with  higher 

Table A17.1:Selection of indicators at regional level in Greece 

(1) Early school leavers: last reliable year (among 2020-2024), data not available for remaining regions.  
(2) Unmet needs, because too expensive or too far to travel or waiting list.  
Source: Eurostat and JRC 

104 

051015202530354045201220132014201520162017201820192020202120222015 EUR per hour workedOther NUTS2 regionsCapital regionNational averageEU 27 averageGDP per head (PPS)Real GDP per head growthProductivity - GDP per person employed (PPS)Real productivity growth (per person employed)Productivity - GDP per hour worked (PPS)Real productivity growth (per hour worked)R&D expenditure in business enterprise sector (BERD)Human resources in science and technology (core)Employment in knowledge-intensive servicesPopulation growthPopulation with high educational attainmentPopulation aged 30-34 with high educational attainmentEarly leavers from education and training (1)At-risk-of-poverty or social exclusionUnmet needs for medical examination (2)Index EU-27 = 100Average annual % changeIndex EU-27 = 100Average annual % changeIndex EU-27 = 100Average annual % change% of GDP% of total employment% of total employmentAverage annual change per 1000 residents% of population aged 25-64% of population aged 30-34% of population aged 18-24% of total population% of total population20232014-202320232014-202320222013-20222022202420242014-202320242024202420242024European Union (27 MS)1001.61000.61000.91.549.241.51.7036.144.89.321.02.5Greece691.868-0.3570.10.741.837.7-4.8035.244.43.026.912.1Attiki962.285-0.271-0.11.152.849.4-2.1044.651.32.822.713.4Voreio Aigaio420.555-0.640-0.70.131.737.21.2026.524.833.210.6Notio Aigaio700.263-2.151-0.40.029.427.7-2.3022.227.98.220.311.0Kriti591.358-0.3440.20.332.827.4-1.3028.538.13.920.79.0Anatoliki Makedonia, Thraki451.350-0.3460.40.430.330.2-7.9023.737.96.433.810.9Kentriki Makedonia552.258-0.2500.30.543.135.0-6.8037.148.51.231.011.2Dytiki Makedonia55-2.565-4.561-4.80.234.331.1-12.0028.343.536.311.2Ipeiros451.4500.0430.90.642.140.1-6.0038.451.619.612.3Thessalia522.0530.1481.50.340.932.3-8.3034.349.625.811.0Ionia Nisia610.856-1.045-0.10.124.320.5-3.4019.636.441.414.2Dytiki Elláda501.254-0.542-0.20.431.429.9-5.7025.637.76.935.214.5Sterea Elláda632.268-0.165-0.20.626.222.6-10.2021.125.913.625.711.1Peloponnisos591.9620.0490.00.731.125.6-9.6026.148.812.032.310.0 
 
 
      
 
 
 
     
 
have the potential to increase growth opportunities 
and diversify these regions' economies. 

In  its  ambition  to  achieve  a  speedy  digital 
transformation,  Greece  faces  challenges  but 
increased 
also  opportunities  to  achieve 
regional connectivity. In the 2024 edition of the 
Digital  Economy  and  Society  Index  (DESI),  Greece 
ranked  among  the  last  of  the  EU  Member  States, 
in  a  series  of  key  digital  indicators.  for  most 
indicators,  including  the  percentage  of  small  to 
medium-sized  enterprises  (SMEs)  with  at  least  a 
intensity.  Despite 
digital 
basic 
improvements  in  almost  all  the  index  dimensions 
in  recent  years,  scores  remain  below  the  EU 
average.  Average  fixed  broadband  speeds  are 
among  the  lowest  in  the  EU  and  there  is  a  clear 
urban-rural divide (Map A17.1). 

level 

of 

ICT  uptake  is  relatively  high  in  the  capital 
region where almost 70% of the population used 
the  internet  to  interact  with  public  authorities  in 
2021 but is much lower elsewhere. Improving the 
country’s  digital  infrastructure  and  environment 
can  provide  opportunities,  especially  to  young 
people  across  regions  and  remote  areas,  to 
increase  the  productivity  of  local  businesses, 
innovation  and  access  to  digital  services provided 
by the government (see Annex 6). 

increase 

Improving  Greece’s  quality  of  governance 
the 
performance  would  help 
competitiveness  of  the  Greek  economy,  both 
at  national and  regional  level.  Building  on the 
successful  rollout  of  e-government  services  and 
recent  years, 
reforms 
other 
additional  measures  could  help  improve  Greece’s 
still comparatively weak governance (see Annex 6), 
especially at regional level. 

institutional 

in 

productivity have contributed to a modest increase 
since  2020.  Employment  in  knowledge-intensive 
services  and  human  resources  in  science  and 
technology,  and  R&D  expenditure  in  the  business 
sector (see also Annex 3) have all been on the rise, 
although  they  all  show  high  concentration  in  the 
capital region. 

Competitiveness 

There  is  significant  scope  to  strengthen 
innovation  by  helping  scale  up  innovative 
firms, not only in Attiki but also in the rest of 
the  country,  e.g.  in  Kentriki  Makedonia  and 
Kriti,  where  major  universities  are  located. 
According  to  the  Regional  Innovation  Scoreboard 
2023 (209),  the  highest  performing  regions  are 
Attiki,  closely  followed  by  Kriti  and  Kentriki 
Makedonia, all classified as ‘moderate innovators’. 
R&D  expenditure  has  increased  steadily  across 
regions  in  the  past  decade,  but  there  is  a 
persistently low level of patent applications across 
regions.  This  indicates  that  further  efforts  would 
help  encourage  technology  transfer  (see  Annex  3 
Innovation to Business). 

Greece  has  competitive  advantages  in  the 
agri-food,  and  life-sciences  sectors  as  well 
as  in  shipping  as  part  of  the  ocean/coastal 
economy,  which  have  the  potential  to  be 
further  developed  at  regional  level.  The  agri-
food sector plays an important role in most Greek 
regions.  Developing  innovative  methods  such  as 
precision  agriculture  can 
increase  agricultural 
productivity and sustainability in regions where the 
sector is particularly prevalent (such as in Kentriki 
Makedonia, Thessalia). Given Greece’s leading role 
in 
is  also 
strategically  placed  to  play  a  central  role  in 
decarbonising  the  industry:  from  the  update  of 
green fuel globally to cleaning up domestic ferries 
(see  Annex  7).  In  addition,  the  recent  opening  of 
shipyards  in  Skaramagas  (Attiki)  and  Syros  (Notio 
Aigaio)  indicate  a  revival  of  the  shipbuilding 
in  the  country.  Life  sciences-related 
industry 
innovation 
pharmaceuticals, 
biotechnology) in  research  institutions,  not  only  in 
Attiki  but  also  in  Ipeiros,  Peloponnisos  and  Kriti, 

the  global  shipping 

(med-tech, 

industry, 

it 

(209) Regional Innovation Scoreboard – Country profile RIS 2023 

Greece. 

105 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Map A17.1:  Average speed for fixed internet, 2023 

reported  unmet  medical  needs  in  the  EU 
regional ranking. Notably, Dytiki Elláda and Ionia 
Nisia saw their rates soar by 250%. These unmet 
needs  are  mainly  due  to  high  costs,  long  waiting 
lists  and  long  travelling  distances  especially  in 
rural  and  remote  areas  (see  Annex  14).  The 
development  and 
like 
telemedicine  could 
improve  accessibility  of 
healthcare  services  in  remote  areas  and  islands 
but would require Greece to continue improving its 
digital  infrastructure  and  to  address  the  digital 
skills gap. 

take-up  of  solutions 

Harnessing  talent  and  increasing  the  share 
of  women  and  young  people  in  regional 
labour  markets,  especially  outside  Attiki, 
improve  competitiveness.  Although 
could 
employment  rates  have  increased  in  recent  years 
in  the  country  overall,  regions  such  as  Dytiki 
Makedonia  and  Ipeiros  face  issues  concerning  in 
long-term  unemployment  and 
particular  high 
female unemployment. The regions of Ipeiros and 
Ionia  Nisia  also  have  particularly  high  shares  of 
young  people  who  are  not 
in  employment, 
education  or  training.  These  disparities  can  be 
partly due to lack of access to basic  services and 
employment  opportunities,  but  also  to  the  lack  of 
a strategic vision of the needs and characteristics 
of  each  region.  In  addition,  the  2022  Programme 
for International  Student Assessment (PISA)  study 
assessing  the  basic  skills  (maths,  science  and 
regional 
literacy)  of  15-year-olds 
in  the  country's  performance.  The 
disparities 
urban-rural 
quite 
significant,  with  pupils  in  larger  cities  performing 
Integrating  the  education 
significantly  better. 
system as well as vocational training with sectors 
in  which  regions  have  a  particular  competitive 
advantage – especially in high-productivity sectors 
–  can  help  improve  competitiveness  and  lower 
unemployment. 

performance 

revealed 

gaps 

are 

Sustainability 

in 

relation 

opportunities 

Greek regions face significant challenges but 
also 
to 
environmental sustainability, given their high 
exposure to climate change-related risks and 
diverse  geographical  terrain.  Investments  in 
adaptation  to  climate  change  and  mitigation  of 
related 
regional 
economies,  especially  mountainous,  coastal  and 

risks  would  help 

sustain 

Source: Eurostat and JRC 

Social fairness 

Improving  access  to  healthcare,  long-term 
care  and  affordable  housing  is  crucial  for 
reducing  regional  disparities.  The  rate  of 
people at risk of poverty or social exclusion, which 
stands  at  26.9%  nationally,  remains  among  the 
highest  in  the  EU  (see  Annex  11).  In  areas  like 
Ionia  Nisia,  Dytiki  Makedonia  and  Dytiki  Ellada,  it 
substantially exceeds the national average. 

Excessive  housing  costs  are  a  significant 
issue affecting the whole country, especially 
urban areas. Nearly a third of the population has 
to  allocate  at  least  29%  of  their  disposable 
income  to  accommodation  expenses,  among  the 
highest  levels  in  the  EU.  In  terms  of  home 
ownership,  Greece  experienced  a  drop  of  7.6 
percentage points from 2010 to 2023. 

Since  2021, 
there  has  also  been  a 
substantial  increase  in  unmet  healthcare 
needs  across  the  country,  and  by  2024  all 
Greek  regions  had  the  highest  shares  of 

106 

 
 
 
island  communities  (see  also  Annex  9).  The 
exposure to harmful climate effects is particularly 
high  in  southern,  coastal  areas,  which  experience 
significant heat during the summer, are vulnerable 
to  flash  flooding  during  the  rest  of  the  year  and 
face acute water scarcity (Map A17.2). 

highlighting  the  fact  that  targeted  pollution 
controls measures would help. Improving access to 
alternative  fuel  infrastructure  in  urban  centres 
across  the  country,  such  as  electric  vehicle 
charging  stations,  can  contribute  towards  more 
sustainable transport and help reduce emissions. 

Natural  resources  such  as  water  are  under 
intense pressure in regions that benefit from 
high  levels  of  tourism.  Improved  water  and 
waste  management  (see  Annex  9), 
including 
selective  desalination  investments  in  arid  islands, 
combined  with  the  use  of  renewable  energy 
sources,  could  become  drivers  for  innovative  and 
sustainable management of resources. 

Map A17.2:  Human exposure to harmful climate 
impacts 

Source: Eurostat and JRC 

is 

still  active 

Greenhouse  gas  emissions  in  Greece  are 
below the EU average, but the regions where 
lignite  mining 
(Dytiki 
Makedonia  and  Peloponnisos)  have  higher 
emissions  per  capita  than  the  rest  of  the 
country.  Both  regions  are  included  in  Greece’s 
Just  Transition  Plan  and  are  on  track  to  phasing 
out  their production by 2028. In addition, ongoing 
zero-emission  initiatives  such  as  ‘GR-Eco  islands’ 
aim  to  fully  decarbonise  and  digitalise  Greek 
islands  by  2030.  That  said,  air  quality  concerns 
remain  prominent,  especially  in  urban  areas  such 
as  the  capital  region,  Attiki,  where  in  particulate 
matter and nitrogen dioxide levels often exceed EU 
thresholds,  negatively  affecting  public  health,  and 

107