COMMISSION STAFF WORKING DOCUMENT 2026 Country Report – Greece Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Greece
Date: 2026-06-03
Institutions: European Commission, Reform and Investment Task Force
Subjects: Greece, budget policy, economic policy, economic recovery, economic reform, employment policy, energy policy, investment, social policy, stability pact

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 3.6.2026  SWD(2026) 208 final  COMMISSION STAFF WORKING DOCUMENT 2026 Country Report – Greece     Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Greece     {COM(2026) 208 final}  
 
 
 
 
 
 
 
 
 
 
ECONOMIC DEVELOPMENTS AND KEY POLICY 
CHALLENGES 

The Greek economy emerged 
stronger from the pandemic crisis 

The  Greek  economy  has  grown  solidly  in 
the  post-pandemic  period.  Real  GDP  grew 
by 2.1% per year  in  2023-2025 – well above 
the  EU  average  of  1%.  The  energy  crisis  is 
expected  to  weigh  on  economic  activity  in 
2026. Still, GDP growth is set to remain solid, 
investment  and 
led  by 
1.8% 
consumption;  and  to  moderate  to  1.6%  in 
2027  as  the  RRF’s  implementation  comes  to 
an end. 

in  2026, 

Graph 1.1: Investment gap compared with the 
EU by asset type (% of GDP) 

Source: Eurostat 

The  investment  gap  vis-à-vis  the  EU 
average  has  halved  since  2018.  The 
investment-to-GDP  ratio  rose  from  11.3%  in 
2018 to 16.9% in 2025, driven by investments 
in  machinery  that  have  exceeded  the  EU 
average  since  2022  (Graph 1.1).  Construction 
investment  (including  dwellings)  is  still  well 
below  the  EU  average,  but  the  gap  has  been 
declining  since  2020  thanks  to  a  sustained 

increase  in  construction  activity  in  Greece. 
Persistently 
in 
intellectual  property  are  hindering  innovation 
and weighing on productivity. 

investment 

levels 

low 

Job  creation  has  been  strong,  and 
unemployment  has  fallen  below  2008 
levels.  Over  the  last  five  years,  employment 
growth has been driven by the manufacturing, 
construction,  social  and  healthcare  sectors  as 
well as by professional, scientific and technical 
activities.  Youth  and  female  employment  has 
increased  faster  than  total  employment,  but 
the employment rate has remained well below 
the EU average. 

Economic activity has been fuelled by EU 
funds,  particularly  the  RRF.  According  to 
the  most  recent  estimates,  the  RRF  is  set  to 
increase  Greece’s  GDP  by  almost  4.5% 
compared with a no-policy change scenario in 
2026. This is mostly due to an investment-led 
demand  stimulus (1).  In  addition,  the  RRF  is 
also  expected  to  give  a  long-term  boost  to 
potential  growth  by  upgrading  and  extending 
the  capital  stock  and  through  the  reform-
induced  increase  in  total  factor  productivity. 
Greece  is  one  of  the  top  five  EU  Member 
States  in  terms  of  cohesion  fund  absorption 
for  2021–2027.  Cumulative  EU  payments 
from  the  ERDF,  ESF+,  Cohesion  Fund  and  JTF 
place Greece above the EU average (2). 

(1)  See the Mid-Term Evaluation of the Recovery and 
Resilience Facility, February 2024, Brussels. 

(2)  For further details, see the European Commission’s 

Cohesion Open Data platform. 

2 

-20246810122016201720182019202020212022202320242025% of GDPDwellingsOther constructionsMachineryIntellectual propertyInvestment gap 
 
   
 
Rebalancing the economy and 
closing the income gap remain key 

Economic activity has accelerated but not 
fast  enough  to  ensure  a  rapid  catch-up. 
Despite a robust growth performance in recent 
years, real GDP was still almost 14% below its 
2008 peak level in 2025. Per capita income in 
2025 was 68.4% of the EU average (3). Long-
term real growth is estimated at around 1.5%, 
only  slightly  exceeding  the  EU  average.  This 
implies only a slow economic convergence. 

remains  high. 

Greece  is  continuing  to  address  its  long-
standing  vulnerabilities  relating  to  high 
public  and  external  debt,  non-performing 
loans, and unemployment, but its current 
The 
account  deficit 
Commission  undertook  again  an 
in-depth 
review  of  the  Greek  economy  as  part  of  the 
Macroeconomic Imbalance Procedure earlier in 
2026 (4).  That  review  highlighted  that  fiscal 
policy and nominal GDP growth are set to keep 
reducing  the  public  debt-to-GDP  ratio.  The 
unemployment rate is at its lowest level since 
2009.  However,  the  current  account  deficit  is 
still  elevated, and the net external liability-to-
GDP  ratio  improved  only  marginally  in  2025. 
Banks’  ratio  of  non-performing  loans  (NPL)  to 
total gross loans declined further in 2025. Still, 
when  considering  the  NPLs  held  by  servicers, 
the  stock  of  NPLs  in  the  economy  remained 
broadly  unchanged  and  continues  to  burden 
private sector balance sheets. The review also 
highlighted  that  reforms  are  bringing tangible 
benefits,  but  Greece  needs  to  become  more 
competitive to help reduce debt and produce a 
lasting improvement in external balances. 

non-cost 

competitiveness 

Low 
is 
reflected  by  a  persistently  high  current 
account  deficit.  The  current  account  deficit 
fell  to  5.7%  of  GDP  in  2025.  This  implies  a 
high  external  liability-to-GDP  ratio,  which  is 
expected  to  decline  only  marginally  in  the 

coming  years.  The  economy  continues  to  rely 
on  low  value-added  sectors  like  tourism  and 
agriculture  and  small-  and  medium  sized 
enterprises  (SMEs)  which  lack  economies  of 
scale  and  have  very  limited  international 
exposure.  Further  improvement  in  non-cost 
competitiveness is essential in order to reduce 
import  dependence;  increase  export  capacity; 
and raise long-term growth prospects. 

Legacy  NPLs  continue  to  weigh  on  the 
economy.  Greece  received  a  country-specific 
recommendation  (CSR)  in  2025  to  continue 
reducing the stock of NPLs held by banks and 
credit  servicers  by  accelerating  liquidation-
related  court  proceedings.  Resolution  of 
remaining NPLs, which are currently managed 
largely  by  credit  servicers (5),  has  proceeded 
slowly.  Judicial  and 
institutional  obstacles 
(e.g. a  lack  of  sufficient  information  on  the 
long 
state  of  auctioned  properties; 
duration  of  the  judicial  resolution  of  post-
auction  disputes;  and  delays  in  registering 
transactions  in  Greece’s  land  registry)  reduce 
interest  and  make  auctions 
third-party 
unsuccessful, 
collateral 
delaying 
liquidations (6). 
the  government 
the 
introduced  measures 
information  available  on  auctioned  assets  in 
the e-auctions platform, improve the efficiency 
of  judicial  processes  and  tackle  backlogs  in 
debt enforcement (see Annex 2). 

thus 
In  2025, 

expand 

the 

to 

Strong demand and subdued construction 
activity  are  driving  housing  market 
remained 
challenges.  Domestic  demand 
strong and house prices continued to grow at a 
fast  (albeit  slowing)  pace  in  2025  (7.8% 
versus 9.1% in 2024). Despite the absence of 
a  credit-fuelled  house  price  bubble,  recent 
price  developments  are  showing  signs  of 
overvaluation.  Foreign  demand  –  which  has 
been 
the  golden  visa 
programme  and  investment  opportunities  in 
tourism  -  moderated  in  2025  thanks  to  the 
tightening of golden visa and short-term rental 
regulations.  Housing  supply  is  constrained  by 

incentivised  by 

(3)  Measured at purchasing power standards (i.e. adjusted 

(5)  Credit servicers were managing EUR 80 billion of debt 

for differences in national price levels). 

(32.2% of GDP) at the end of 2025. 

(4)  SWD(2026) 137 final; see In-depth review of Greece 
2026, Institutional Paper 334, May 2026, Brussels. 

(6)  See In-depth review of Greece 2026, Institutional Paper 

334, May 2026, Brussels. 

3 

 
 
 
years  of  sluggish  housing  investment,  which 
only started to grow in 2020 and is still only at 
60%  of  the  EU  average  (see  Annex 16) (7). 
House  price  and  rent  increases  surpassed 
income  growth  and  housing  affordability  has 
deteriorated.  However,  housing  affordability 
varies  sharply,  deepening  the  urban-rural 
divide  and  undermining  local  development 
outside  major  hubs  (see  Annex 16).  Ongoing 
government  policies  need  to  step-up  to  close 
the construction gap. 

Sustained growth requires higher 
productivity and employment  

is 

labour 

productivity 

being 
Low 
compensated  by 
long  working  hours. 
Labour  productivity  has  started  to  edge  up 
recently,  but  is  still  only  54.6%  of  the  EU 
average.  By  contrast,  Greece  recorded  the 
most hours worked per employee in the EU. 

regional 

competitiveness 

Skill  gaps  and  low  participation  are 
limiting  the  efficient  use  of 
labour 
reserves.  The  skills  of  young  people  leaving 
the  education  system  often  do  not  match 
labour market needs, while regional disparities 
jeopardise 
(see 
Annex 18). Persistently low education spending 
(combined  with  weak  basic  and  digital  skills) 
points  to  challenges  related  not  only  to  the 
level but also to the effectiveness of education 
expenditure and highlights the need for better 
targeting  and  monitoring  of 
spending. 
Measures  have  been  taken  to  improve  the 
vocational  education 
skill-
matching,  but  participation  in  adult  learning 
remains  low  and  80%  of  companies  report 
that  unavailability  of  skilled  staff 
is  an 
obstacle to investment (8). Furthermore, lack of 
adequate  child  and  elderly  care  solutions 
continues  to  limit  women’s  capacity  to  enter 
the 
(see  Section 4  and 
Annex 11). 

labour  market 

system  and 

is 

suggest 

that,  despite 

hindering 
innovation 

Despite  improvements,  the  institutional 
business 
environment 
dynamism, 
and 
entrepreneurship.  High  entry  barriers  are 
hampering competition in professions such as 
law,  architecture, 
civil  engineering  and 
accountancy, and in the retail sector (9). Survey 
data 
significant 
improvements and digitalisation, Greece is still 
lagging  behind  as  regards  the  operational 
efficiency of public services for businesses (10). 
For  example,  reforms  have  recently  been 
implemented  or  are  being  implemented  to 
improve  the  effectiveness  and  efficiency  of 
the  justice  system.  However,  the  insufficient 
and/or  disparate  use  of  IT  across  the  judicial 
system  and  the  length  of  court  proceedings 
level  of 
issues.  Yet 
both 
digitalisation 
A 
increases 
shortage of available land area – exacerbated 
by bottlenecks in urban and spatial planning – 
and  insufficient  rail  and  road  infrastructure 
are hindering business expansion. Ensuring an 
fosters 
institutional 
competition  and  allows  businesses  to  grow 
and  integrate  into  international  markets  is 
essential in order to raise productivity.  

progressively. 

environment 

remain 

that 

the 

investment 

investment 

productivity 

levels  of  private 

Low 
in 
research  and  development  (R&D)  are 
impeding 
improvements. 
in  R&D  has  been 
Corporate 
increasing  rapidly  but  is  still  below  the  EU 
average  (0.9%  of  GDP  in  Greece  versus  1.5% 
in  the  EU).  Future  progress  of  business 
innovation  depends  on  investment,  science-
technology 
interlinkages  and  technological 
transfer  to  SMEs  (see  Annex 4).  Greece  has 
introduced  regulatory  tools  as  well  as  tax 
the  digital 
incentives  for  R&D  However, 
transformation 
challenge  – 
remains  a 
especially  for  SMEs,  which  are  lagging  behind 
other EU Member States in adopting advanced 
technologies. 

(7)  Many houses have become uninhabitable or are tied up 
in lengthy legal processes (e.g. inheritance disputes and 
debt enforcement). 

(9)  See IMF, 2025, Improve Resource Allocation to Boost 

Growth in Greece, Washington, DC. 

(10)  See World Bank, 2025, B-Ready report for Greece, 

(8)  EIB Investment Survey 2025, Greece overview. 

Washington, DC. 

4 

 
 
 
 
Box 1: 

UN Sustainable Development Goals (SDGs) 

Greece’s performance is improving on a number of SDGs related to sustainability (SDGs 2, 7, 9, 
12,  13,  and  14)  but  declining  for  others  (SDGs 11  and  15).  It  is  also  improving  for  all  SDGs 
related to social fairness (SDGs 1, 3, 4, 5, 7, 8 and 10). However, it is still below the EU average 
for nearly all the SDGs related to this area. 

Greece’s  performance  is  far  below  the  EU  average  but  improving  for  SDGs  related  to 
competitiveness (SDGs 4, 8 and 9) and partnership for goals (SDG 17) but declining for the SDG 
related to peace, justice and strong institutions (SDG 16).  

Accelerating  the  green  transition 
is 
essential  for  sustainable  growth.  Greece 
has  managed  to  expand its  renewable  energy 
source (RES) capacity in recent years. However, 
in order to maximize its use of green energy it 
needs  to  expand  its  storage  capacity  and 
completing the interconnection of islands with 
the  mainland  grid.  Adding  offshore  wind 
capacities  could  complement  the  current  RES, 
which  is  primarily  based  on  photovoltaics. 
further 
Recalibrating  energy 
incentivise 
would 
decarbonising  the  transport  sector,  which 
remains  the  main  emitter  of  greenhouse 
gases. The Just Transition Fund supports those 
of Greece’s regions that are most affected by 
the  green  transition  by  helping  to  create  and 
expand businesses to diversify the economy as 
well as reskilling and upskilling the workforce. 

electrification. 

taxes  could 

So 

The  economic  dominance  of  the  capital 
region  of  Attica  is  exacerbating  regional 
disparities.  High-productivity  sectors  and 
research  investment  dominate  in  Attica.  In 
contrast,  mountainous,  insular  and  remote 
regions  face  transport  limitations,  seasonal 
tourism  pressures  and  overreliance  on  low-
productivity  sectors  (see  Annex  18).  Partly 
because of demographic decline, northern and 
rural  areas  are  also  struggling  with  weaker 
labour  markets,  which  are  disproportionately 
affecting  young  people 
(see  Annex 12). 
remain 
and 
Poverty 
widespread  (even  in  economically  stronger 
regions),  highlighting  the  unequal  distribution 
of growth benefits. 

exclusion 

social 

5 

Sound fiscal policies help cope 
with rising spending pressures 

Greece’s  fiscal  position  remains  solid 
amid  rising  spending  needs.  Measures 
improving  tax  compliance  have  supported 
revenue  collection.  Greece  recorded  a  general 
government budget surplus above 1% of GDP 
in  both  2024  and  2025.  This  is  projected  to 
narrow to 0.8% in 2026 and 0.6% in 2027, but 
the  primary  surplus  is  expected  to  remain 
above  3.5%  of  GDP.  The  shrinking  surplus 
mainly 
implementation  of 
permanent  tax  cuts  and  targeted  social 
measures  that  have  been  adopted  to  support 
households’ 
incomes  while 
strengthening  incentives  for  labour  market 
participation  and  expanding  labour  supply. 
Additional  pressures 
from  higher 
defence. 

disposable 

reflects 

stem 

the 

targeted 

fuel-pass 

temporary  support  package  was 
A 
introduced  to  alleviate  the  surge  in  fuel 
prices  that  was  triggered  by  the  war 
against  Iran.  The  measures  amount  to 
around 0.2% of GDP and include, for a limited 
period  (April-May  2026)  an  untargeted  diesel 
subsidy  and  a 
for 
households  (subject  to  income  criteria).  They 
also  include  a  targeted  support  for  fertiliser 
costs  until  August  2026, a  one-off  support  to 
families  with  children  and  compensation  for 
is  broadly 
ferry  operators.  The  package 
targeted,  with  some  degree  of 
income 
differentiation,  and  aims  to  mitigate  the 
impact  of  higher  energy  prices  on  households 
transport  and 
and  key  sectors 
agriculture). The measures are temporary and 
may  be  extended,  depending  on  how  the 

(notably 

 
 
Box 2: 

Key achievements of the recovery and resilience plan (RRP) 

Greece’s RRP represents a total investment envelope of EUR 35.95 billion (corresponding to 16% 
of GDP). It aims to support the green and digital transitions, strengthen economic resilience and 
address long-standing structural challenges that have been identified in the European Semester. 

As of June 2026, EUR 24.6 billion (68.5% of the total allocation) has been disbursed, following 
the  satisfactory  fulfilment  of  [204]  milestones  and  targets.  [Implementation  has  progressed 
steadily; a growing number of reforms and investments have already been fulfilled and are now 
delivering tangible results.] 

Highlights and impact of the RRP 

• 

Increasing  efficiency  of  the 
establishing, abolishing and redistributing courts in all judicial districts. 

judiciary:  redesigning  the 

justice  system  by 

•  Simplifying  and  digitalising  the  public  sector:  expanding  e-services  for  driving 
licence renewals, court decisions, digital signatures and document circulation, along with 
digitising public sector archives and establishing a unified IT platform for tax services. 

•  Accelerating the roll-out of RES: simplifying the legal and administrative framework, 
leading to reducing RES licensing and permitting times from 5 years to 14 months. 

•  Supporting affordable housing: the My Home II facility enables loans (for a total of 
up  to  EUR 2 billion)  on  beneficial  terms  to  individuals  for  the  acquisition  of  primary 
residences. 

•  Upgrading  Greece’s  electricity  network:  investments  are  strengthening  the  grid, 
adding  new  interconnections  to  islands,  boosting  substation  capacity  for  more 
renewable  energy  and  supporting  clean  energy.  The  RRP  has  delivered  more  than 
7.5 GW of new renewable installed capacity in Greece. 

•  Digitalisation  and  infrastructure  in  the  health  system:  setting  up  a  national  digital 
health record database for doctors and patients, renovation of primary healthcare units and 
creation of chronic disease management units. 

energy  crisis  evolves.  In  parallel,  Greece  has 
introduced 
regulatory  and  market-based 
interventions  to  contain  energy  and  consumer 
prices. These include a temporary cap on profit 
margins  for  fuels  and  selected  essential 
supermarket products. This cap will be applied 
across  the  supply  chain  until  the  end  of  June 
2026. 

Greece’s  public  debt-to-GDP  ratio 
is 
shrinking  significantly  but  remains  the 
highest  in  the  EU.  It  dropped  to  146.1%  in 
2025, almost 43 pps lower than its pre-COVID 
peak  (in  2018).  Sustained  primary  surpluses 
and  favourable  nominal  GDP  growth  are, 
together  with  prudent  debt  management 
(including  early 
financial 
assistance),  expected  to  reduce  the  ratio  to 
140.7% 
in  2027. 
in  2026  and  134.4% 
However,  a  less  favourable  macroeconomic 
environment  might  slow  the  pace  of  future 
debt reductions.  

repayments  of 

6 

the 

tax  and 

customs 
Centralising 
administration  remains  key  to  further 
increasing tax compliance.  Greece received 
a  CSR  in  2025  to  continue  its  efforts  to 
improve  tax  compliance  (including  through 
further  centralisation  and  digitalisation  of 
customs  and  tax  inspections)  and  improve  its 
tax  system’s  predictability.  The  roll-out  of 
digital  tools  and  strengthened  compliance 
systems  have  reduced  the  VAT  compliance 
gap,  but  continuing  investment  in  system 
and 
maintenance 
institutional capacity will be required. Customs 
administration  is  also  undergoing  reform.  The 
ongoing centralisation of inspections is already 
but 
supporting 
adequate 
consolidation 
inspection  capacity  remain 
important.  Key 
frameworks (including the VAT and income tax 
codes)  have  been  codified,  but  further  action 
(particularly to reduce the VAT policy gap and 

revenue 
and 

infrastructure) 

collection, 

providing 

(e.g. IT 

 
 
rationalise tax expenditures) is needed in order 
to make the tax system more predictable. 

is 

expenditure 

Defence 
increasing, 
supported  by  both  national  and  EU 
funding.  Total  government  expenditure  on 
defence  amounted  to  2.2%  of  GDP  in  2024 
and  2.4%  in  2025  and  is  forecast  to  reach 
2.6%  in  2026.  The  activation  of  the  National 
Escape Clause provides temporary flexibility to 
spending. 
accommodate  higher  defence 
Greece 
instruments  to 
(including 
strengthen  defence 
financing  opportunities  under  the  Security 
Action  for  Europe  (SAFE)  instrument).  In  the 
cohesion  policy’s  mid-term  review,  Greece 
ranked  third  in  the  EU  (after  Poland  and 
Romania),  allocating 
to 
defence-related priorities. 

is  also  using  EU 

EUR 634 million 

investment 

The  implementation  of  the  multilevel 
governance  framework  is  in  progress. 
Greece  received  a  CSR  in  2025  to  further 
improve the effectiveness and efficiency of its 
public  administration  by  fully  implementing 
the  multilevel  governance  framework.  Greece 
is  expected  to  start  applying  the  governance 
framework once it has adopted a codified law 
that  will  bring  all  the  responsibilities  of  the 
regional  and  local  administration  under  a 
single legal framework (this law is expected to 
by  mid-2026). 
The 
place 
be 
operationalisation 
the  multi-level 
of 
governance  framework  is  also  expected  to 
contribute to better management of EU funds, 
because  the  key  implementation  bodies  are 
usually  administrations 
regions  and 
localities  where  effective  implementation  of 
public  investments  is  often  hampered  by  low 
administrative  capacity  (see  Annexes 2,  7 
and 18). 

in 

in 

Greece faces challenges related to 
climate, security and demography 

and 

Population-ageing  is  weighing  on  public 
finances 
labour  market. 
the 
Demographic  trends  are  projected  to  see  the 
working-age population fall by roughly a third 
by  2070.  Against 
the 
budgetary cost of ageing is set to increase by 

this  background. 

about  0.8 pps  of  GDP  by  2040  but  to  decline 
below the 2025 levels by 2070, driven mainly 
by a projected decline in public pension outlays 
and, to a lesser extent, by education spending 
(see  Annex 2).  Moreover,  demographic  decline 
is  further  straining  peripheral  areas,  where 
inadequate  healthcare,  education,  public 
transport  and  weak  digital  infrastructure  are 
causing  a  rapid  population  exodus.  Labour 
market  shortages  persist  (especially  in  the 
tourism  and  construction  sectors)  and  require 
the  expansion  of the  labour  force.  To  address 
demographic  pressures,  especially  in  non-
metropolitan 
accelerating 
areas, 
implementation  of  the  national  demographic 
action  plan  and  ensuring  coherence  with 
regional  development  plans  is  key  (see  also 
Annex 18). 

is  rapidly 

Climate  change 
increasing 
economic  costs.  Greece is  highly  exposed  to 
the  impact  of  climate  change,  which  also 
exacerbates regional asymmetries, threatening 
long-term  economic  stability.  In  recent  years, 
extreme  weather  events  (including  floods, 
heatwaves,  wildfires  and  droughts)  have 
severely  disrupted  the  economy  and  society. 
The  annual  investment  needed  to  adapt  to 
climate  change 
in  water 
infrastructure  due  to  severe  water  scarcity) is 
one  of  the  highest  in  the  EU  (see  Annex  10). 
Greece  has  taken  action  to  address  its  large 
private 
insurance  gap  against  natural 
disasters, but insurance coverage remains low. 

(for  example 

Export  structure  and  dependence  on 
fossil  fuels  remain  economic  security 
risks.  Greek  exports  have  become  more 
diversified,  but tourism and transport services 
(these  are  both  heavily  exposed  to  regional 
geopolitical  risks)  account  for  around  20%  of 
GDP.  Moreover,  energy  price  shocks  have 
significant effects on inflation and growth due 
to  the  economy’s  still  strong  dependence  on 
fossil  fuels  (see  Section 3),  while  the  Greek 
economy’s  reliance  on  imported  critical  raw 
it  vulnerable  to  sudden 
materials  makes 
supply  disruptions  (see  Annex 5).  In  addition, 
Greek  businesses  are  the  least  prepared  for 
cybersecurity  attacks,  according  to  Eurostat 

7 

 
Box 3:    Contribution of cohesion policy funds 

EU  cohesion  policy  funding  is  supporting  Greece’s  efforts  to  boost  competitiveness, 
environmental  sustainability,  skills  and  social  fairness.  In  the  2021-2027  programming 
period,  EU  cohesion  policy  funds (13)  are  providing  Greece  with  EUR 20.5 billion  (amounting  to 
EUR 25.7 billion  paired  with  national  co-financing)  or  8.5%  of  2024  GDP.  This  makes  cohesion 
policy  one  of  the  main  sources  of  public  investment  in  Greece.  The  value  of  selected  projects 
corresponded  to  82.6%  of  the  total  allocation  as  of  March  2026,  with  additional  calls  for 
projects in the pipeline. 

• 

Innovation, business environment and productivity:  nearly EUR 4 billion has been 
allocated  to  research  and  innovation,  SMEs’  competitiveness  and  the  regions  most 
affected  by  the  transition  away  from  carbon-intensive  activities.  Around  34 000  firms 
have already seen their projects approved.  

•  Decarbonisation, energy affordability and sustainability: EUR 5.6 billion has been 
allocated  to  clean  transition  projects.  More  than  EUR 1.3 billion  has  been  allocated  to 
drinking  water  and  wastewater  treatment  projects,  which  are  expected  to  improve 
facilities  for  500 000  people.  Another  EUR 1.3 billion  has  been  allocated  to  supporting 
energy efficiency interventions.  

the 

labour  market 

•  Skills,  quality  jobs  and  social  fairness:  EUR 1.6 billion  has  been  allocated  to 
training  systems; 
improving 
EUR 1.7 billion to enhancing  access to employment; and  EUR 360 million to addressing 
material deprivation. The development of social, primary health care and long-term care 
services  has  been  further  enhanced.  Greece’s  educational  facilities  are  also  being 
supported, with projects already on track to benefit 423 000 pupils.  

relevance  of  education  and 

The  mid-term  review (14)  reinforced  the  cohesion  policy’s  contribution  to  emerging  strategic 
priorities, reallocating nearly EUR 1.9 billion. One third of reallocations (EUR 634 million) support 
defence (particularly military mobility along the EU’s main corridors). The  mid-term  review has 
also  strengthened  competitiveness  (through  support  for  critical  technologies),  better  water 
management  (through  digitalisation),  improvements  in  energy  efficiency  and  increased  energy 
connectivity  to  secure  clean  electricity  supply  and  additional  investments  in  more  affordable 
housing. Together with promoting skills in the development of critical Strategic Technologies for 
Europe Platform (STEP) technologies, ring-fenced resources will also target policies such as the 
adaptation  of  workers  to  change  and  the  development  of  specialised  skills  for  the  defence 
industry, cyber security and civil preparedness. In addition to cohesion policy funding, Greece will 
allocate up to EUR 3.6 billion under the Social Climate Fund  in 2026-2032 to help mitigate the 
social impact of the new emissions trading system (ETS2), supporting vulnerable households and 
small  businesses.  EU  funding  instruments  also  play  an  important  role  in  supporting  maritime 
transport, port infrastructure and island connectivity, including the green transition of shipping. 

data (11).  Policies  to  reduce  economic  security 
risks  include  transitioning  to  RES,  increasing 
energy  efficiency,  exploiting  domestic  critical 
increasing 
raw  material 
circular material use. 

reserves (12)  and 

(11)  For example, Greece has the lowest share of enterprises 
using at least 3 ICT security measures, according to 
Eurostat data. 

(12)  Greece is rich in critical raw materials (CRMs) such as 
bauxite, gallium, nickel and magnesium which the 
government plans to exploit. 

funding 

EU 
provide 
considerable  resources  to  Greece.  They 

instruments 

(13)  ERDF, ESF+, CF and JTF. 

(14)  The mid-term review was undertaken halfway through 
the 2021-2027 programming period. It is a formal 
assessment process required under Article 18 of the 
Common Provisions Regulation to assess the 
implementation of a programme; and, where necessary, 
to propose adjustments to improve its performance, 
ensure its continuing relevance in the light of new and 
emerging needs and maintain coherence with other EU 
policies. 

8 

 
 
 
 
competitiveness, 

support investments and structural reforms to 
environmental 
increase 
sustainability,  skills,  social 
fairness  and 
security,  while  helping  to  address  challenges 
identified in the CSRs. Key instruments include 
the  Recovery  and  Resilience  Facility  (see  Box 
2)  and  Cohesion  policy  funds  (see  Box  3).  In 
addition, the Common Agricultural Policy (CAP) 
provides  Greece  with  an  EU  contribution  of 
EUR  13.5  billion  under  the  CAP  strategic  plan 
for 2023-2027 (15), while EUR 364 million are 
allocated  under  the  Common  Fisheries  Policy 
(CFP).  A  further  EUR  2  billion  are  available 
under  the  Asylum,  Migration  and  Integration 
Fund 
the  Border 
together  with 
Management  and  Visa  Instrument  (BMVI)  and 
the  Internal  Security  Fund  (ISF).  Other  EU 
programmes  also  support  competitiveness  in 
Greece,  for  instance  through  open  calls  under 
Horizon  Europe  and  the  Connecting  Europe 
Facility. 

(AMIF), 

(15)  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 

9 

 
 
INNOVATION, BUSINESS ENVIRONMENT AND 
PRODUCTIVITY 

to 

of 

the 

the 

and 

reduce 

national 

increase 

competition 

Greece is facing broad-based obstacles to 
innovation and to increasing productivity. 
In  2025,  Greece  received  country-specific 
recommendations 
the 
(CSRs) 
regulatory  and  administrative  burden  for 
businesses; 
in 
professional  services  and  product  markets; 
improve 
funding 
governance 
research, 
possibilities 
development and innovation system; facilitate 
access to finance for start-ups and scale-ups; 
and  increase  the  effectiveness  of  justice. 
implemented 
Some  measures  have  been 
(including  with  support  from  the  RRF)  to 
digitalise 
simplify 
regulation; ease funding barriers for R&D; and 
infrastructure.  Businesses 
expand  research 
have  been 
incentivised  to  accelerate  the 
uptake  of  digital  technologies  (albeit  with 
mixed  success).  Greece’s  public  procurement 
and  justice  systems  have  been  strengthened 
but remain prone to lengthy court proceedings. 

services  and 

public 

to 
dynamism. 

Despite  recent  progress,  the  business 
constrain 
environment 
continues 
entrepreneurial 
key 
The 
structural  weaknesses  holding  back  private 
investment include the lack of a definition for 
land  uses  in  Greece.  Law  4759/2020  aims  to 
tackle 
local 
informal  construction  through 
urban  plans  (LUPs)  and  special  urban  plans 
(SUPs);  and  to  provide  legal  certainty  for 
business  establishments  and  expansions. 
However, 
being 
reform 
is 
implemented. 
In  addition,  there  are  still 
regulatory  and  administrative  obstacles  to 
doing  business,  including  in  overly  restricted 
professional services and product markets (see 
Annexes 4, 5, 6, 7 and 18). 

still 

the 

Funding shortfalls are preventing 
Greece from reaping the benefits 
of its strong science base  

remains 

The diffusion of innovation is undermined 
by  stagnant  public  R&D  investment  and 
fragmented  governance.  Greece  received  a 
CSR in 2025 to improve the governance of the 
national research, development and innovation 
system  by  reducing  the  fragmentation  of 
research  policy  management  and  funding 
sources.  Scientific  output  has  grown  in  line 
with  public  R&D  expenditure,  but  research 
policy  management 
fragmented 
between  ministries  and  regional  authorities 
(see Annex 18). Through the RRF and cohesion 
is  supporting 
policy  programmes,  the  EU 
infrastructures  and 
expansion  of  research 
increased  collaboration  between 
research 
institutions,  universities  and  businesses,  thus 
promoting  knowledge-transfer  and  innovation 
diffusion.  Going  forward,  it  will  remain  of  key 
importance  to  strengthen  the  governance  of 
research  policy 
the 
establishment  of  a  dedicated  ministry,  which 
has  already  been  announced);  secure  long-
term  R&D  funding;  and  (beyond  the  RRF) 
strengthen 
research 
the  autonomy  of 
institutions,  accelerate  project  evaluation 
processes  and  implement  measures  to  retain 
top talent. 

(including 

through 

Private  R&D  investment  remains  low. 
Direct and indirect public support for business 
R&D  has  increased  (Graph 2.1),  but  private 
sector  spending  still  lags  significantly  behind 
the  EU  average.  The  size of,  and  value  added 
in,  medium-to  high  technology  manufacturing 
remains below the EU average (value added in 
medium-to  high  technology  manufacturing  as 
percentage of total value-added stands at 2% 
compared to EU average of 5.21% in 2024). 

10 

 
 
Weak  collaboration  between  research 
institutions  and  industry  is  hindering  the 
commercialisation  of  innovation.  Both  the 
proportion of researchers employed within the 
innovation  outputs 
business  sector  and 
(e.g. patent  applications)  are  below  EU 
averages. This underscores the need to better 
integrate  research  and  industry.  EU-funded 
programmes  (including  under  the  European 
Regional  Development  Fund 
(ERDF))  have 
begun 
technology-transfer 
offices to improve academia-industry linkages. 
This  is  reflected  in  a  rising  share  of  public-
private 
total 
publications  vs  the  EU  average  of  7.62%  in 
2024).  However,  challenges  persist,  including 
underfunding  of  transfer  offices  and  limited 
industry  engagement.  Future  efforts  may 
focus  on  simplifying  access  to  R&D  funding 
(particularly  for  SMEs)  and  strengthening 
public-private collaboration (see Annex 4). 

co-publications 

strengthening 

(9.01%  of 

Graph 2.1: Total public support for business 
R&D 

(1) 2024 or latest available data 
Source: Eurostat and OECD 

start-up 

ecosystem 

is 
Greece’s 
flourishing,  but  scaling-up  opportunities 
are 
raised 
limited.  Over  90 start-ups 
EUR 555 million in 2024 (a 15% year-on-year 
investment 
increase),  but  venture  capital 
remains  well  below  the  EU  average.  This 
reflects  a  reliance  on  State-backed  initiatives 
rather  than  mature  private  markets.  Recent 
measures (including the ‘start-up Golden Visa’, 
expanded  R&D  tax  incentives  and  business 
angel  investment  incentives)  aim  to  ease 

‘Elevate  Greece’ 
funding  shortfalls.  The 
programme  has  improved  visibility  for  high-
potential  start-ups,  but  financing  gaps  hinder 
growth at a more mature stage.  

Greek  firms’  financing  constraints  are 
further  exacerbated  by  late  payments, 
particularly by the public sector. The 33% 
share  of  SMEs  burdened  with  late  payments 
from public bodies is far above the EU average 
of  20%.  The  gap  for  business-to-government 
transactions  is  the  largest  in  the  EU  (see 
Annex  5).  The  current  system  for  registering, 
monitoring and paying invoices does not allow 
efficient  monitoring.  To  strengthen  the  start-
up  ecosystem,  further  efforts  could  focus  on 
investment, 
private-sector 
facilitating 
enhancing  university  spin-out  support  and 
scaling  up  mentorship  networks.  In  addition, 
stronger  entrepreneurship  education  could 
translation  of  research  and 
support 
innovation into marketable products. 

the 

There  is  considerable  scope  for  further 
digitalisation 
in  businesses,  especially 
SMEs.  Despite  past  measures,  the  uptake  of 
key  digital  technologies by  businesses (e.g. AI, 
cloud  computing  and  data  analytics)  remains 
below  the  EU  average  (see  Annex 4).  For 
instance,  in  2025,  8.93%  of  enterprises  in 
Greece were using AI technology, while the EU 
average  was  at  19.95%.  Policy  efforts  have 
been  intensified  more  recently  (with  support 
from the RRF and ERDF) to incentivise SMEs to 
purchase digital products and services; and to 
finance projects relevant to the production and 
use  of  cloud  software  and  applications. 
Despite  some  gradual  progress  (reflected  in 
the  share  of  companies  with  e-commerce 
operations – 23.48% above the EU average of 
20.26%),  further  adoption  of  advanced  digital 
(coupled  with 
technologies  by  businesses 
broader 
support 
financial  and  advisory 
schemes  for  SMEs  in  particular)  can  boost 
their export-orientation and competitiveness. 

11 

00.050.10.150.20.250.30.350.40.450.5Business enterprise expenditure on R&D (BERD) financed bythe public sector (national and abroad) as % of GDPR&D tax incentives: foregone revenues as % of GDP 
   
Alleviating regulatory and 
administrative burden and 
necessary conditions to benefit 
from the single market 

In 

improve 

regulatory 

Some improvements have been made, but 
businesses  are  still  subject  to  a  heavy 
regulatory  and  administrative  burden. 
Greece  received  a  CSR  in  2025  to  simplify 
tools  and 
regulation, 
reduce  administrative  burden  for  companies 
by streamlining and digitalising administrative 
processes. 
recent  years,  Greece  has 
improved  its  regulatory  framework  and  taken 
digital  measures  to  foster  tax  compliance, 
streamline  businesses’  interaction  with  the 
State  and  reduce  administrative  burden.  In 
particular,  Greece  in  2025  launched  a  new 
digital  platform  called  OpenBusiness 
to 
simplify  procedures  and  reduce  the  costs  and 
time  needed  to  establish  and  operate  a 
business,  in  parallel  with  the  ongoing  reform 
of 
several  economic 
activities (16).  Nonetheless,  according  to  the 
European  Investment  Bank,  Greek  firms  still 
perceive  compliance  with  new  regulations, 
standards  and  certifications  as  a  major 
challenge.  89%  of  them  report  business 
regulation as an investment barrier (vs 69% in 
the EU as a whole) (17) (see Annex 5). Ensuring 
that  digitisation  is  coupled  with  simplification 
(by 
redesigning  processes  and  ensuring 
seamless  end-to-end  digital  services  for 
citizens  and  businesses)  therefore  remains 
key. There is also significant scope to enhance 
evidence-based  policymaking  through  robust 
regulatory impact assessments (see Annex 7).  

licensing  of 

the 

Greece  has  made  opening  a  business 
relatively fast and straightforward. It is a 
for  business 
top  performer 
registration. Starting a business requires three 
procedures  and  can  be  completed  in  three  to 
four  days  at  a  competitive  cost.  However, 

the  EU 

in 

obtaining  permits  remains  complex  and  time-
consuming in several sectors.  

licensing 

restrictions 

Professional 

requirements; 

Entry  barriers  in  professional  services 
and  product  markets  remain  high.  Greece 
received a CSR in 2025 to review and remove 
the  high  entry  barriers  to  the  exercise  of 
professional  services  and  to  new  entrants  to 
services 
product  markets. 
(notably lawyers, architects, civil engineers and 
accountants)  face  tight  regulations  (including 
entry 
on 
multidisciplinary  practices  and  advertisement; 
territorial  restrictions;  and,  in  some  cases, 
fixed  fee  schedules).  These  professions  also 
have a low firm exit ratio (Annex 6). Similarly, 
entry  into  retail  trade  remains  subject  to 
zoning  and 
requirements.  The 
pharmacy  sector  continues  to  operate  under 
strict establishment rules (including population 
and  geographic  restrictions).  Sector-specific 
establishment  rules  are  also  more  restrictive 
than in the EU as a whole in the transport and 
telecom sectors. Entry and establishment costs 
are  increased  by  changes  to  tax  rules  and 
regulations,  high  compliance  costs  and  a 
generally  restrictive  business  environment  – 
especially  for  EU  and  non-EU  investors (18). 
Easing  administrative  requirements 
in  the 
implementation  of  posting  of  workers  rules 
could  reduce  regulatory  fragmentation  within 
the  single  market,  facilitate  cross-border 
mobility  and  foster  competitiveness  –  without 
undermining workers’ protection (see Annex 5). 

is 

The 

licensing. 

hindering 

permitting 

remains 
Environmental 
lengthy 
private 
and 
investment.  Greece  received  a  CSR  in  2025 
to  complete  the  regulatory  frameworks  for 
regulatory 
environmental 
framework  on  environmental  licensing  is  still 
being  implemented,  because  the  secondary 
acts  setting  out  the  criteria  for  investments 
that require a lighter permitting process due to 
non-substantial  changes  are  still  pending  for 
four 
(including 
manufacturing).  According  to  the  World  Bank, 
Greece ranks very low in terms of operational 
permits (19). 
efficiency 

categories  of  activities 

environmental 

in 

(16)  Umbrella law on investment licensing 4442/2016. 

(17)  EIB Investment Survey, 2025, Greece Overview, 

Luxembourg, p. 19. 

(18)  Ibid., p. 19. 

(19)  World Bank, Business Ready indicators 2025, 

Washington, DC. 

12 

 
 
 
Natura  2000  sites,  because  the  effective 
definition of land uses in the LUPs is based on 
these.  Greece  could  also  use  the  reform 
momentum  to  extend  the  coverage  to  its 
entire  territory.  In  addition,  the  RRF  also 
supports  two  other  spatial  planning  reforms 
(the  adoption  of  new  special  spatial  planning 
frameworks  for  renewable  energy,  industry, 
and tourism; and the already adopted national 
spatial strategy for the marine environment). 

the 

framework (21) 

Greece’s  legal  framework  for  granting 
concession  agreements  on  the  seashore 
is not conducive to investment promotion. 
Greece received a CSR in 2025 to simplify and 
for 
complete 
framework 
regulatory 
the 
granting  concession  agreements  on 
seashore.  The  existing 
is 
outdated. Some provisions are incomplete and 
non-transparent (22).  As regards industrial port 
infrastructure,  businesses  have  difficulties  in 
renewing their permits when they wish to carry 
out  repairs  or  upgrades  after  the  original 
concession.  This  undermines  their  ability  to 
invest  in  existing  and  new  port  infrastructure 
(including  special  structures  necessary  for  the 
storage, assembly, repair and transportation of 
offshore  wind  turbines).  Such  infrastructure 
benefiting 
industrial,  extractive  and  other 
supporting  activity  would  benefit  from  a 
distinct  legal  framework  (i.e. the  introduction 
into 
of  the  concept  of 
Greece’s  legal  framework,  as  it  exists  for 
tourist ports), given the highly complex safety 
and environmental requirements. 

‘industrial  ports’ 

The justice system is still facing 
significant operational challenges 

Recent  reforms  aim  to  shorten  and 
streamline  judicial  proceedings.  Greece 
received  a  CSR  in  2025  to  streamline  and 
shorten  judicial  proceedings  by  accelerating 

(21)  Law 2971/2001, governing the granting of concession 
agreements for the development of various types of 
infrastructure works at seashore and coastal zone 
(beach). 

(22)  Setting of concession fees and fines for non-

compliance. 

the  environmental  permitting 
Expediting 
process  (including  through  ensuring  sufficient 
capacity  and  digitalising  end-to-end 
the 
electronic  environmental  registry  and  related 
permitting  processes  for  all  involved  services) 
would be conducive to investment. 

but 

system 

its  public 
Greece  has  strengthened 
ensuring 
procurement 
competition  and  transparency  remains 
challenging.  Greece  received  a  CSR  in  2025 
on  accelerating  the 
judicial  resolution  of 
disputes related to public procurement. Greece 
has  adopted  and  put 
into  force  several 
measures  to  accelerate  public  contract  award 
procedures.  Greece  has  also  focused  on  the 
professionalisation  of  the  public  procurement 
tasks  in  the  civil  service  (supported  by  the 
RRF).  In  addition,  a  new  and  more  integrated 
and  user-friendly  e-procurement  system  is 
currently  being  developed  (partly  funded  by 
the  RRF)  to  address  the  weaknesses  of  the 
current 
Some 
(see 
challenges  nevertheless  remain,  such  as  the 
persistently  high  share  of  single  bids  or  the 
predominant  use  of  the  lowest-price  award 
criterion.  

Annex 5). 

system 

in 

Completing  the  urban  planning  reform  is 
set  to  accelerate  investment.  Only  around 
20%  of  Greece’s  territory is  currently  covered 
by  approved  LUPs.  The  lack  of  defined  land 
uses  has 
led  to  uncertainty  as  regards 
permitted  economic  activity  and  to  informal 
construction,  which  has 
turn  placed 
unsustainable  pressure  on  the  environment 
and 
infrastructure.  The  RRF  supports  a 
comprehensive  urban  policy  reform  to  extend 
LUP  coverage  to  around  80%  of  Greece’s 
has  made 
municipal 
considerable progress in elaborating the urban 
plans, but the timeline for their entry into force 
falls after the RRF’s timeframe. It is therefore 
important  that  Greece  completes  the  ongoing 
reform, with all the draft urban plans entering 
into force. It would also be important to adopt 
special  environmental  studies  to  define  the 
protection  zones  and  permissible  land  uses  in 

units (20)  Greece 

(20)  Vassi, A., Siountri, K., Papadaki, K., Iliadi, A.; Ypsilanti, A. 
and Bakogiannis, E., 2022, The Greek Urban Policy 
Reform through the Local Urban Plans (LUPs) and the 
Special Urban Plans (SUPs), funded by the RRF. 

13 

 
 
 
code  on 
civil  proceedings,  adopting  a 
alternative  dispute  resolution  mechanisms, 
revising  the  code  of  judges  and  accelerating 
the  judicial  resolution  of  disputes  related  to 
public  procurement.  The  amendment  of  the 
Code  of  Civil  Procedure 
(effective  from 
1 January 2026) has improved the conduct of 
civil  and  commercial  trials  through procedural 
improvements  to  the  first  and  appellate 
jurisdictions.  Moreover,  the  creation  of  an 
electronic  platform  for  the  reassignment  of 
distant  hearing  dates 
improve 
enforcement.  The  pilot  phase  of  the  digital 
case  file  system  has  been  launched  in  civil 
courts.  The  code  of  alternative  dispute 
resolution  mechanisms  is  expected  to  be 
adopted  in  June  2026  and  curtail  the  judicial 
backlog.  With  respect  to  addressing  backlogs 
affecting  the 
judicial  resolution  of  public 
procurement  disputes,  Law  5172/2025  has 
introduced new jurisdictional arrangements for 
disputes  arising  from  public  works  contracts 
(to  be  resolved  by the  administrative  court  of 
appeal)  and  disputes  arising  from  public 
supply  or  service  contracts  (to  be  resolved  by 
the first instance administrative court). 

is  set  to 

improving 

in  terms  of 

However, the justice system still features 
lengthy  proceedings.  While  reforms  are 
promising 
judicial 
efficiency, it is too early to assess their impact. 
The  integration  of  IT  into  judicial  proceedings 
still  remains  insufficient  (e.g. for  the  issuance 
of  court  certificates)  or  sporadic  (e.g. in  non-
metropolitan  courts).  Limited  progress 
in 
revising the code of judges has been reported 
remain.  These 
and 
include  the 
in  all 
branches  of  the  judiciary  and  the  insufficient 
level  of  digitalisation  (for  example  as  regards 
the  fully  electronic  conduct  of  all  judicial 
procedures  and  the  issuance  of  machine-
readable  judicial  decisions,  as  detailed  in 
Annex 7). 

length  of  proceedings 

important  challenges 

14 

 
DECARBONISATION, ENERGY AFFORDABILITY AND 
SUSTAINABILITY 

taxes 

energy 

improving 

including  by 

Greece  is  faced  with  the  challenges  of 
upgrading  and  decarbonising  its  energy 
system  and  electrifying 
its  transport 
sector.  A  country-specific  recommendation 
(CSR)  issued  in  2025  aims  at  increasing  the 
energy  sector’s  flexibility  by  adding  storage; 
incentivise 
adjusting 
to 
electrification; 
fossil-fuel 
out 
phasing 
increasing  the  capacity  of 
subsidies;  and 
electricity  networks.  Furthermore,  Greece  is 
encouraged to advance the decarbonisation of 
transport, 
railway 
infrastructure  and  operations.  Some  progress 
has  been  made  in  making  the  energy  system 
more  flexible  by  adopting  legal  provisions  to 
facilitate  demand-response.  The  electricity 
interconnection  of  Crete  with  Attica  has  been 
completed.  The  impact  of  the  Recovery  and 
Resilience  Facility  (RRF)  is  already  evident  in 
the increase of new renewable energy sources 
(RES)  (7.5  GW)  and  strengthening  of  the 
electricity  transmission  network,  with  other 
investments  (e.g. battery  storage  and  energy 
efficiency  renovations)  to  be  completed  in 
2026.  By  contrast,  Greece’s  transport  sector 
remains a major emitter of greenhouse gases, 
largely  due  to  Greece’s  reliance  on  road 
low 
transport,  an  old  vehicle  fleet  and 
penetration of electric vehicles. 

Making 
infrastructure  climate-resilient 
and  limiting  disaster-related  costs  faced 
by  firms  and  households  remain  key. 
Greece  received  a  2025  CSR  to  make  its  key 
infrastructure  (including  water  supply)  more 
private 
and 
climate-resilient; 
insurance  coverage  against  natural-disaster-
related  damages.  The  authorities  have 
developed  a  new  national  water  strategy  that 
to  achieve  a  more  efficient  and 
aims 
sustainable 
resources. 
of  water 
Furthermore,  the  governance  system  to  plan 
and implement actions to strengthen Greece’s 
climate resilience remains weak. 

increase 

use 

Greece is consolidating its position 
as a net electricity exporter 

tenfold 

Greece is reinforcing its position as a key 
electricity  producer 
in  south-eastern 
Europe.  In  2025,  electricity  production  stood 
at  54.4 TWh  compared  with  52.1  TWh  in 
2024 (23).  Greece’s  net  exports  exceeded 
3 TWh,  an  almost 
increase  on 
2024 (24). The increase of electricity production 
was mainly driven by natural gas (increased by 
9.4%  in  2025  compared  to  2024)  and  to  a 
lesser  extent  by  RES  (increased  by  4.3% 
compared  to  2024),  while  domestic  demand 
remained  stagnant  (see  Graph 3.1).  Lignite’s 
share  in  Greece’s  electricity  mix  fell  to  5%  in 
2025 and its use is expected to be phased out 
completely in 2026. Greece is also reinforcing 
its  position  as  a  regional  energy  hub  by 
establishing the so-called vertical corridor (25). 

(23)  Figures from TSO (ADMIE). 

(24)  According to ELSTAT (Hellenic Statistical Authority), 
Greece’s total revenue from electricity exports was 
EUR 972 million in 2025 and the balance of trade for 
electric power showed a surplus of EUR 261 million. 

(25)  This is a pipeline initiative to transport natural gas and 
LNG from Greece northward to Bulgaria, Hungary, 
Moldova, Romania, Slovakia and Ukraine. 

15 

 
 
 
Graph 3.1: Electricity balance and production 
sources 

Source: TSO (ADMIE) 

More  energy  storage  would 
reduce 
curtailments  and  increase  the  use  of 
green  electricity.  Greece  has  made  limited 
progress  in  addressing  the  2025  CSR  to 
increase  the  flexibility  of  its  energy  system, 
but  it  is  planning  to  add  around  700 MW  of 
battery storage in 2026 with support from the 
RRF (26).  This  would  be  the  first  grid-scale 
energy  storage  for  Greece.  The  need  for 
Greece  to  add  energy  storage  is  becoming 
evident  in  the  light  of  significant  and  rapidly 
increasing  curtailments 
(i.e. the  deliberate 
reduction of output from energy generators, in 
particular  from  solar)  below  their  maximum 
capacity (due,  for  example,  to  low  demand  or 
grid  congestion).  The  addition  of  energy 
storage  will  enable  the  use  of  more  green 
electricity  and  ease  the  market  uncertainty 
that is currently forcing smaller RES producers 
to  exit.  In  addition  to  larger  grid-scale  energy 
storage  investments,  Greece  could  explore 
ways to make its energy system more flexible 
by  improving  the  design  of  support  schemes 
with a view to adding smaller battery storage 
systems connected to RES installations. 

A  higher  share  of  wind  energy  would 
make  the  energy  system  more  flexible. 
The  significant  increase  of  renewables  in 

(26)  The RRF is also supporting the construction of 

Amfilochia Pumped Hydro Storage, which is expected to 
be in operation by 2028 and add 680 MWh of energy 
storage. 

loads, 

recent  years  has  mainly  been  driven  by 
expanding  photovoltaic  capacity.  Combined 
with energy storage, wind energy would make 
it  possible  to  support  grid  frequency  and 
relying  on  more 
manage  peak 
affordable  green  electricity.  Greece  has  a 
target  of  having  1.9 GW  of  offshore  wind 
capacity (27)  in  place  by  2030.  This  can  be 
compared  with  its  overall  RES  capacity  of 
around  15 GW,  which  it  aims  to  increase  to 
28 GW  (including  storage)  by  2030.  However, 
the  legislative  framework  still  needs  to  be 
completed,  and  maritime  areas  have  to  be 
designated.  Promoting  renewable  energy  self-
consumption  is  an  alternative  to  expanding 
RES  and  Greece  is  planning  to  adopt  legal 
provisions by mid-2026 that will be part of the 
legal framework aiming to transpose the EU’s 
Renewable Energy Directive. It will be essential 
that the legal framework is completed, by the 
swift adoption of the secondary legislation and 
with 
schemes  being 
support 
established,  in  order  for  this  market  segment 
to be unlocked in a meaningful way. 

targeted 

Transforming  the  energy  mix  would 
reduce reliance on fossil fuels. Greece has 
taken  decisive  steps  to  make  its  electricity 
production  greener.  However,  continuing  high 
reliance  on  natural  gas,  which  is  a  costly 
marginal  price-setting  source,  leaves  Greece 
exposed  to  high  prices  and  extreme  price 
volatility  due  to  geopolitical  events 
(see 
Graph 3.2).  The  detrimental  impact  of  such 
events  has  forced  the  Greek  authorities  to 
impose  ad  hoc  and  unorthodox  measures  to 
protect firms and households from sharp price 
increases (28).  Adding  more  flexibility  to  the 
energy  system, 
including  energy  storage, 
would  facilitate  the  further  transformation  of 
the  energy  mix,  so  that  Greece  can  gradually 
reduce  its  reliance  on  fossil  fuels,  which 
accounted  for  more  than  half  of  Greece’s 

(27)  Overall offshore wind capacity in the EU is estimated at 

around 20 GW. 

(28)  In March 2026, in reaction to the energy price spikes 

following the US-Israel military operations against Iran, 
Greece introduced temporary profit margin caps on fuel 
and essential goods. These will remain in place until 
30 June 2026. Retail gas stations are restricted to a 
maximum mark-up of EUR 0.12 per litre over 
purchasing cost. Fuel wholesalers are capped at 
EUR 0.05 per litre. 

16 

0481216202428-10-8-6-4-20242020202120222023202420251000 Gwh1000 GwhElectricity net exports (left hand scale)RESNatural gasHydroLignite 
       
 
 
electricity  production 
highest share in the EU) (see Annex 9). 

in  2025 

(the  sixth 

Graph 3.2: Wholesale electricity prices vs. low-
carbon electricity share (2025) 

Source: European Commission calculation based on 
ENTSO-E, S&P Global Platts 

Energy taxation and subsidies 
cement dependency on fossil fuels 

2030. Gradually phasing out current subsidies 
is in line with EU commitments and would help 
free  some  fiscal  space.  Greece  has  not  yet 
taken steps to address the 2025 CSR to speed 
up  the  phasing-out  of  fossil-fuel  subsidies.  It 
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 or do not respond to genuine 
energy-security 
(ii) fossil-fuel 
concerns; 
subsidies for the transport sector that are not 
targeted;  (iii) fossil-fuel  subsidies  that  hinder 
(iv) fossil-fuel  subsidies 
electrification;  and 
that 
industrial 
crucial 
not 
are 
competitiveness (see Annex 9). 

for 

Decarbonisation and efficiency 
gains remain key for affordable 
energy  

sector 

remains  a 

Industry’s decarbonisation efforts benefit 
from  significant  EU  support.  Greece’s 
manufacturing 
large 
greenhouse  gas  emitter.  Its  energy-intensive 
industry has the highest share of emissions in 
terms  of  gross  value  added  in  the  EU  (see 
Annex 8).  Greece  has  established  a 
legal 
framework  for  carbon  capture  and  storage, 
which  will  help  industry  meeting  its  emission 
targets and has already secured significant EU 
support  throughout  the  value  chain (30).  The 
Commission 
approved 
EUR 400 million  in  State  aid  under  the  Clean 
Industrial Deal State Aid Framework (CISAF) to 
invest  in  clean  technologies  to  accelerate  the 
transition  to  a  net  zero  economy.  Funds  that 
have  been  collected  from  a  range  of  sources 
(e.g. the ETS and a hotel surcharge (31)) will be 
allocated to decarbonisation and the restoring 

also 

has 

(30)  The RRF and CEF are providing support to Greece’s first 
carbon capture and storage facility in northern Greece 
(Prinos), which has also secured EUR 120 million in 
funding from the EU’s Connecting Europe Facility (CEF). 
The EU’s Innovation Fund is providing EUR 655 million 
to support the private sector in capturing the CO2 that is 
to be transported and stored. 

(31)  Hotel customers are charged a ‘resilience to the climate 
crisis’ surcharge (ranging from EUR 1.50 to EUR 10 per 
night). 

in 

Energy  taxation  is  favouring  fossil  fuels 
over electricity. Final energy prices are lower 
for  fossil  fuels  such  as  natural  gas  than  for 
electricity.  Greece  has  one  of  the  highest 
electricity-to-gas  price  ratios  in  the  EU.  For 
large businesses, the after-tax electricity price 
was  more  than  four  times  higher  than  for 
natural  gas.  Taxes  and  levies  (excluding  VAT) 
further  widen  the  price  gap (29).  The  share  of 
electricity 
energy 
Greece’s 
consumption  exceeds  the  EU  average  (see 
Annex  9),  but  a  more  even  tax  treatment 
across energy sources would probably increase 
the  ratio  still  further,  thereby  contributing  to 
addressing  the  2025  CSR.  Moreover,  Greece 
remains  the  only  EU  Member  State  where 
diesel  excise  duties  are  significantly  lower 
than petrol excise duties – even though diesel 
is  more  environmentally  harmful. 
fuel 
Increasing  the  excise  duty  rate  for  diesel 
would  disincentivise  the  purchase  of  diesel 
cars. 

final 

Greece’s sizeable fossil-fuel subsidies are 
unlikely  to  be  fully  phased  out  before 

(29)  Taxes and levies account for 12% of electricity bills but 

just 5% of natural gas bills. 

17 

 
 
 
 
damages  from  natural  disasters.  Providing 
sufficient  resources  to  key  support  schemes 
(e.g. the  RES  account)  and  further  promoting 
the  decarbonisation  of  industry (32)  as  well  as 
alleviating  the  strain  on  critical  infrastructure 
(e.g.  water  and  wastewater)  in  tourist  areas, 
could  further  help  Greece  carry  out  its  green 
transition fairly and inclusively.  

and 

to  promote 

framework 
certification 

Energy  market 
reforms  have  been 
adopted  to  promote  clean  energy.  Under 
Greece’s  recovery  and  resilience  plan  (RRP), 
the 
legal 
the 
production, 
network-
integration  of  biomethane  and  hydrogen  has 
been  adopted  (Law 5215/2025).  This  follows 
Law 4951/2022,  which  was  adopted  in  2022 
and  was  intended  to  reduce  the  time  needed 
for  licensing  approvals  for  new  renewables 
projects  to  14  months.  However,  project 
promoters still face longer approval processes 
than  stipulated  by  national  legislation.  The 
special spatial plan for renewables that is due 
to be adopted in 2026 is expected to facilitate 
the  further  streamlining  of  the 
licensing 
process.  However, these  enabling  reforms  will 
only  support  Greece’s  green  transition  if  they 
are completed and fully implemented. 

The  building  sector  offers  substantial 
efficiency  gains.  The  fact  that  more  than 
stock  was 
half  of  Greece’s  building 
constructed  before  1980  indicates  that  there 
is significant scope for energy savings. Thanks 
to the RRF, Greece is expected to improve the 
energy  efficiency  of  more  than  100 000 
housing  units 
in  2026,  reducing  primary 
energy use by at least 30%. Moreover, Greece 
has  announced  a  new  financial  instrument 
(‘on-bill  financing’)  which  allows  electricity 
providers 
support  energy  efficiency 
interventions  by  gradually  covering  costs 
through the electricity bill. 

to 

(32)  In 2025, less than 2% of the collected ETS was 

allocated to decarbonising industry (as reported by 
Greek authorities pursuant to Article 19(2) of the 
Governance Regulation Report). 

18 

Extended and smarter electricity 
networks are set to lower energy 
costs 

the 

down 

costs. 

energy 

The  ongoing interconnection  of  islands  is 
driving 
The 
interconnection of Crete (33) with the mainland 
electricity  grid  allows  the  phasing-out  of 
autonomous  oil-driven  power  plants  and  is 
expected  to  lower  electricity  bills  by  up  to 
EUR 200 million  per  year  (corresponding  to 
EUR 25-30 for the average electricity bill). This 
is  because 
levy  on  consumer  bills 
compensating  for  electricity  providers’  public 
service  obligations 
to 
significantly  drop.  More  islands  (including  the 
Dodecanese  and  in  the  North  Aegean)  are 
expected to be interconnected in 2026, thanks 
to  EU  support  through  the  RRF  and  cohesion 
policy through the GR-eco Islands Initiative (35). 
Some progress has been made in streamlining 
licensing  procedures  for  new  transmission 
networks in response to a 2025 CSR. 

(PSOs) (34) 

is  set 

Lower non-technical losses and the wider 
use  of  smart  meters  are  likely  to  ease 
households’ energy bills.  Greece received a 
CSR in 2025 to reduce non-technical losses (or 
commercial  losses),  which  are  attributed  to 
issues  like  metering  errors,  theft  and  non-
payment.  The 
losses 
share  of 
nevertheless  remains  well  above  the  EU 
average.  According  to  the  distribution  system 
operator  (HEDNO),  electricity  theft  alone  is 
estimated  at  EUR 450 million  per  year  and 
increases  the  average  households’  annual 
electricity  bill  by  EUR 60.  Moreover,  a  legal 
initiative  is  still  pending  to  deal  with  the 

these 

(33)  The Ariadne interconnection has been operating since 
May 2025. It received support from the EU’s cohesion 
policy. 

(34)  Public-sector obligations (PSOs) in the Greek islands 

ensure non-discriminatory electricity supply at mainland 
prices, largely off-setting the high cost of operating 
isolated fossil-fuel-driven power plants. The PSOs are 
funded by a levy on all consumer bills and compensate 
providers for higher production costs in unconnected 
islands. 

(35)  The GR-eco Islands Initiative is for 39 islands with 

populations below 3 500 inhabitants. 

 
 
 
increasing arrears that electricity providers are 
facing  due  to  non-paying consumers.  A  faster 
roll-out  of  smart  meters  would  allow  more 
households 
to  manage  electricity  usage 
efficiently  and  thereby  reduce  their  bills. 
Despite  some  outstanding  elements  in  the 
legal  framework,  dynamic  pricing  has  been 
introduced  as  a  tool  to  facilitate  demand-
response (as recommended in the 2025 CSR). 
However, retailers’ interest in offering dynamic 
pricing  contracts  to  customers  has  been 
limited  so  far,  due  to  a  continuing  lack  of 
price-responsive behaviour in the retail market 
with 
a 
choices 
preference  for  predictable  and  stable  price 
setting arrangements. 

suggesting 

consumer 

The electrification of the transport 
sector is still in its infancy 

The  transport  sector  remains  one  of 
Greece’s  main  greenhouse  gas  emitters. 
Greece has one of the oldest  vehicle  fleets in 
the  EU.  It  is  yet  to  take  concrete  steps  in 
response  to  a  2025  CSR  to  set  up  a 
comprehensive  strategy  with  reforms  and 
investments  to  support  the  shift  to  electric 
mobility and upgrade urban and inter-regional 
public transport. Greece relies mainly on land-
based  fossil-fuel-driven  transport  and  this 
continues to impair its air quality. In particular, 
PM2.5 concentrations (36)  exceed  the  World 
Health  Organization’s  air  quality  guideline 
levels (see Annex 8). 

Greece has started electrifying its vehicle 
fleet.  The  national  climate  law  requires  all 
new taxis in Attica and Thessaloniki to be zero-
emission  vehicles  from  2026  onward.  It  is 
important  to  enforce  this  and  the  rules 
concerning withdrawal of professional vehicles 
(e.g. taxis  and  lorries).  Greece  is  still  lagging 
behind  other  EU  Member  States  as  regards 

(36)  According to the WHO, PM2.5 concentrations measure 
the mean annual concentration in the air of fine 
suspended particles with a diameter of 2.5 microns or 
less. These particles are considered the most dangerous 
air pollutant to health and are linked to mortality from 
cardiovascular disease, respiratory infections and lung 
cancer. 

cars, 

which 
passenger 
zero-emission 
comprised  only  6.4%  of  new  registrations  in 
2024  –  less  than  half  the  EU  average  of 
13.5% 
(see  Annex 8).  Greece  has  made 
progress in adding recharging points, including 
fast chargers (37), but their availability remains 
a bottleneck. This was a major reason why the 
support scheme for new electric taxis has not 
met the expected demand. More progress has 
been  made  in  renewing  the  bus  fleet  (zero-
emission  buses  accounted  for  almost  15%  of 
new  registrations  in  2025).  Through  the  RRF, 
more than 200 electric buses are in circulation 
in  Attica  and  Thessaloniki,  and  another  150-
200  are  expected  in  2026.  Greece  has  also 
launched 
tenders  for  public  bus  service 
contracts  for  its  regions  as  part  of  the  RRP. 
The  timely  completion  of  these  tenders  is  an 
opportunity  for  Greece  to  further  renew  and 
electrify its bus fleet and improve services.  

to 

the 

increase 

Greece  is  implementing  a  wide-ranging 
RRF-supported  railway  reform.  In  2025, 
Greece  received  a  CSR  to  enhance  its  railway 
infrastructure  and  operations.  This  highlighted 
for  short-term  organisational 
the  need 
reforms 
the  capacity  and 
investment of the infrastructure manager and 
accelerate 
the 
European  Rail  Traffic  Management  System 
(ERTMS), which is essential for digitalising the 
railways  and  harmonising  operations  across 
the  EU (38).  Along  with  advancing  and 
consolidating  organisational  reform  in  the 
railways  sector,  it  is  essential  to  strengthen 
the  Greek 
the  operational  capacity  of 
Regulatory  Authority  for  Railways  –  including 
by addressing resource limitations.  

full  deployment  of 

the 

railway  system  can 
Expanding 
position Greece as a key logistical hub in 
support 
south-eastern 
and 
Europe 
cohesion. 
regional  development  and 
road 
reliant  on 
remains  heavily 
Greece 
land-based  transport 
mobility.  Almost  all 

(37)  In 2025, Greece had 8 757 recharging points (18% 

were DC points) – compared with 3 166 in 2023 (7% 
were DC points). 

(38)  The ERTMS provides a unified signalling system that 
enhances safety and interoperability; facilitates cross-
border train movement; and boosts network capacity 
and operational efficiency. 

19 

 
 
 
(including  cargo)  was  carried  out  by  cars, 
buses  and  lorries  (see  Annex 8).  Greece’s 
railway network is strategically positioned and 
could  act  as  a  gateway  between  the  EU,  the 
Eastern Mediterranean and the Black Sea. It is 
part  of  the  trans-European  transport  network 
(TEN-T) (39)  that  anchor  Greece  in  west-east 
and  north-south  transport  flows  (including 
to  Moldova  and  Ukraine). 
connections 
Enhancing  network  density  and  implementing 
reforms  that  were  started  under  RRP  would 
reliable, 
enable  Greece 
railway  system; 
competitive  and  modern 
facilitate 
transport; 
enhance  logistics;  bolster  regional  economic 
development and competitiveness; and provide 
financially  and  environmentally  sustainable 
options  for  passenger  and  freight  transport 
(including  effective  commuting  solutions  that 
can help alleviate urban housing pressures and 
high costs). 

to  develop  a 

intermodal 

efficient 

is  subject  to 

Renewing  the  passenger  shipping  fleet 
would  generate  significant  economic  and 
environmental  benefits.  More  than  80%  of 
Greece’s  passenger  shipping  fleet  is  over  20 
years  old.  It  is  rarely  equipped  with  green 
increasing 
technologies  but 
environmental  performance  requirements  and 
suffers from rising operating and maintenance 
costs.  A  master  plan  for  the  renewal  of 
fleet  was 
Greece’s  passenger 
developed  as  part  of  the  Greek  RRP  and 
adopted  in  April  2026.  This  master  plan  will 
inform policy direction and decisions regarding 
infrastructure 
vessel  upgrade  needs,  port 
improvements, 
timelines  and 
financing requirements. 

investment 

shipping 

Water scarcity and frequent 
natural disasters highlight the 
need for climate-change resilience 

Greece  is  one  of  the  five  most  water-
stressed  Member  States  in  the  EU.  In 

(39)  With routes like the Baltic Sea – Black Sea – Aegean 
Sea corridor and the Western Balkans – Eastern 
Mediterranean corridor. 

20 

key 

climate-proofing 

2025, Greece received a CSR to devise a plan 
for 
infrastructure, 
focusing  on  enhancing  the  water  supply  and 
reforming the institutional framework to boost 
local  water  service  providers’  capacity  and 
accountability. Agriculture consumes over 80% 
of  water 
resources  and  puts  particular 
pressure  on  water  supply.  The  lack  of  a 
framework  for  the  collection  and  storage  of 
surface  and  rainwater  means  that  rainwater 
and  treated  wastewater  often  flow  directly 
into  the  sea  rather  than  replenishing  aquifers 
or  irrigation  reservoirs.  Following  prolonged 
droughts, 
causing 
is 
inadequate 
into  reservoirs  and 
resulting in erosion as topsoil washes into the 
sea. 

extreme 
infiltration 

rainfall 

As part of its RRP, Greece is developing a 
new  water  strategy  whose  objectives 
include  strengthening  the  capacity  of 
local  water  service  providers.  In  2025, 
Greece received a CSR to improve the capacity 
local  water  service 
and  accountability  of 
providers. The new water strategy and related 
legislation are expected to be in place by mid-
2026. A new law will launch a pilot initiative to 
reorganise  major  water  service  providers.  In 
particular,  it  will  provide  for  the  extension  of 
the  geographic  scope  of  the  water  and 
wastewater  utilities 
the  wider 
metropolitan areas of Athens and Thessaloniki, 
while  also  extending  their  responsibilities  to 
include 
is  crucial 
because  building  and  maintaining  resilient 
local  water  service 
infrastructure  requires 
providers  with  sufficient  resources  to  plan, 
implement  and  deliver  essential  services. 
Implementing  tariffs  that  reflect  actual  costs 
local  water  service  providers’ 
may  boost 
financial viability and sustainability. 

irrigation  services.  This 

serving 

The  development  of  circular  water 
management  requires  more  investment. 
Circular  water  management  and  demand 
management  are  effective  tools  to  alleviate 
the  overall 
water  scarcity  and 
efficiency  of 
supply 
management. Investment initiatives under the 
RRF and cohesion policy funds aim to improve 
the  supply  and  quality  of  drinking  water  and 
reduce 
remains 
significant  scope  for  further  investment  to 

improve 
sustainable  water 

leakage.  However, 

there 

 
 
adaptation 

climate 
governance  and 
exposed in the event of emergencies. 

responsibilities 

system  with 

clear 
it 

leaves 

Greece is lagging far behind in 
recycling and waste management  

Greece  continues  to  bury  about  80%  of 
its waste. Its reliance on landfilling is mainly 
due to the lack of adequate recycling facilities. 
A landfill tax was introduced in 2022, but this 
has  not  significantly  decreased  landfilling  – 
including 
in  the  region  of  Attica,  which 
generates  around  half  of  national  municipal 
waste  and  relies  heavily  on  one  single, 
overused landfill site. 

reduction, 

Recycling levels remain very low, despite 
considerable 
in  waste 
investment 
management infrastructure. Only 17.4% of 
municipal  waste  is  being  recycled  (compared 
with  48%  in  the  EU).  It  is  vital  to  effectively 
encourage  waste 
reuse  and 
recycling by implementing comprehensive and 
integrated  waste  management  plans  and 
strategies.  The  adoption  of  regional  waste 
management  plans  (in  accordance  with  the 
requirements  of 
the  Waste  Framework 
Directive) is a prerequisite because it has been 
due  since  2020.  These  plans  should  involve 
investment 
infrastructure;  the 
adoption  of  pay-as-you-throw  schemes  to 
motivate businesses and households to reduce 
waste  generation  through  direct  financial 
incentives;  and  the  timely  enforcement  of 
separate 
by 
municipalities.  Strengthening  the  capacity  of 
regional  solid  waste  management  bodies  and 
implementing measures on islands to address 
capacity  constraints  during  peak 
tourism 
crucial,  alongside  promoting 
is 
periods 
behavioural  change 
for  effective  waste 
management. 

programmes 

in  recycling 

collection 

wastewater 

in  different  sectors. 

management 
advance 
infrastructure  and  operations;  modernise 
treatment  facilities;  and  expand  distribution 
networks, thus facilitating the reuse of treated 
to 
water 
promote 
treated 
the  use  of  adequately 
wastewater  in  industries  and  municipalities 
could,  along  with  efforts  to  raise  public 
awareness of its value and safety, support this 
development. 

Initiatives 

in 

Insurance  coverage  against  climate  risks 
low  and  a  robust  climate 
remains 
adaptation  system  is  still  missing.  The 
significant costs resulting from climate-related 
natural  disasters  threaten  Greece’s  economy 
and  public  finances.  Its  regions  are  affected 
disproportionately 
terms  of  potential 
economic  loss  (see  Annex 18) (40).  Between 
1980  and  2024,  weather  and  climate-related 
extreme  events  caused  EUR 18.3 billion  in 
economic  losses (41)  but  only  5%  of  this  was 
covered  by  insurance (42).  Greece  received  a 
CSR  in  2025  to  increase  private  insurance 
coverage 
natural-disaster-related 
damages.  The  Natural  Disasters  Private 
Insurance Observatory was set up in 2024 and 
tasked  with  preparing  a  national  strategy  for 
private  disaster  insurance.  Greece  has  also 
made  insurance  mandatory  against  natural 
disasters  for  vehicles  as  well  as  companies 
with  an  annual  turnover  over  EUR 500 000.  It 
has also introduced a property tax discount for 
insured  properties  (see  Annex 10).  However, 
the  impact  of  these  measures  on  insurance 
coverage  remains  limited.  Moreover,  the  fact 
that  Greece  has  not  yet  developed  a  robust 

against 

(40)  Greece has been investing heavily in disaster response 

equipment (particularly for firefighting) with 
considerable support from the RRF and cohesion policy 
(through a dedicated national programme for civil 
protection). 

(41)  EEA, 2024, Economic losses from weather- and 

climate-related extremes in Europe, Link. 

(42)  The Attica region accounts for close to half (45.8%) of 
the total insurance coverage for weather-related, 
earthquake and fire perils. Coverage is low in other 
regions, including those that are particularly exposed to 
floods (Thessaly: 5.2%, Central Macedonia: 14.4%) and 
wildfires (Crete: 4.7%, Southern Aegean: 1.5%). 
Source: the Hellenic Association of Insurance 
Companies, 2025, Number of House Insurance 
contracts: Survey of 30 September 2025. 

21 

 
 
SKILLS, QUALITY JOBS AND SOCIAL FAIRNESS 

In 2025, Greece received country-specific 
recommendations  (CSRs)  to  increase  the 
rate  of  women,  vulnerable  groups  and 
young  people  in  employment;  to  improve 
educational  outcomes;  and  to  address 
poverty  and  social  exclusion.  It  has  since 
implemented  some  measures  to  bring  more 
people  into  the  labour  market,  mainly  by 
labour  market  policies. 
reinforcing  active 
However,  there  has  been  less  progress  in 
promoting  more  flexible  work  arrangements; 
expanding  formal  preschool  education  and 
care  and  long-term  care;  and  tackling  skills 
mismatches.  Moreover,  no  major  step  has 
been  taken  to  improve  educational  outcomes 
and  increase  the  effectiveness  and  efficiency 
of the social protection system (Annex 1). 

Greece’s 

labour  market 

Employment  rates  continue  to  increase, 
but 
is 
characterised by poor job quality and low 
productivity.  Sluggish  productivity  growth 
reflects  a  variety  of  structural 
factors, 
including  a  high  share  of  low  value-added 
sectors  in  the  economy;  persistent  skills  gaps 
and 
talent  outflows;  and  poor  working 
conditions. These factors hinder further human 
capital  development  and,  combined  with 
limited availability of early childcare and long-
term  care  services, 
labour  force 
participation  and  social  inclusion.  Access  to 
high-quality,  affordable  healthcare  remains 
challenging  (especially  in  rural,  island  and 
remote areas) and the coverage and adequacy 
of  social  benefits 
low  overall.  The 
is 
proportions  of  adults  and  children  at  risk  of 
poverty  or  social  exclusion  remain  relatively 
high,  despite  decreasing  during  the 
last 
decade. 

impair 

education  and  skills,  as  well  as  its  social 
situation (43). 

Persistent skills gaps are 
hampering productivity and 
competitiveness 

the 

are 

education 

lowering  of 

Low  participation 
in  early  childhood 
education  and  care  and  weaknesses  in 
severely 
secondary 
undermining  Greece’s  human  capital 
potential.  Greece  received  a  CSR  in  2025  to 
expand  formal  early  childhood  education  and 
care  (ECEC)  and  improve secondary  education 
outcomes.  Participation  in  ECEC  remains  low, 
despite 
the  mandatory 
education  age  to  four  years;  as  well  as 
financial  support  from  the  European  Regional 
Development  Fund  (ERDF)  and  the  European 
Social  Fund  Plus  (ESF+)  to  expand  access  to 
early childcare. In secondary education, a high 
share of Greek 15-year-old students does not 
achieve  a  minimum  level  of  proficiency  in 
basic 
the 
this 
development  of  innovative  talent  (Annex 13). 
The  Recovery  and  Resilience  Facility  (RRF) 
places  particular  emphasis  on  upgrading 
school 
curricula 
infrastructure,  updating 
(including  in  model  and  experimental  schools) 
and  digital  upskilling  of  students  as  ways  to 
improve  educational  outcomes.  Greece  could 
benefit 
competence-based 
teaching,  learning  and  student  assessment 
methods;  greater  school  autonomy;  and  more 
systematic  professional  development  and 
evaluation of teachers. 

from  more 

skills,  and 

limiting 

is 

Addressing  these  challenges  will  help 
Greece  boost  upward  social  convergence. 
The  second-stage  analysis  in  line  with  the 
to 
Social  Convergence  Framework  points 
challenges  for  Greece  that  may  affect  social 
convergence  in  relation  to  its  labour  market, 

(43)  European Commission, SWD(2026) 122. The analysis 
relies on all the available quantitative and qualitative 
evidence and the policy response undertaken and 
planned. 

22 

 
 
 
a 

and 

pupil’s 

Promoting  inclusiveness  in  education  can 
help 
improve  educational  outcomes 
across  the  board  and  promote  social 
integration.  There  is  a  persistent  negative 
in 
correlation  between  underachievement 
school 
socio-economic 
background  that  holds  across  all  education 
levels. Almost 1 in 2 students from the lowest 
socio-economic  quartile  lack  basic  reading 
skills (compared with 1 in 7 students from the 
highest  quartile).  Moreover,  students  with  a 
migrant background, students with disabilities, 
and  Roma  pupils  have  poorer  educational 
outcomes  and  are  more 
leave 
education  earlier  than  other  pupils.  Another 
important consideration is the growing number 
of  students  with  special  educational  needs.  In 
line  with  the  Council’s  Recommendation  on 
Human  Capital  in  the  EU,  it  remains  key  to 
support  these  vulnerable  groups  (including  by 
making education and training more accessible 
and adaptive to their needs). 

likely  to 

Meeting  technical  skills  needs  requires  a 
more  attractive  and  labour  market  as 
well  as  a  relevant  vocational  education 
and training (VET) system. Enrolment rates 
in  medium-level  VET  in  science,  technology, 
engineering  and  mathematics  (STEM)  remain 
below  the  EU  average,  in  particular  in  ICT 
programmes,  but  there  is  increasing  demand 
for  technical  skills  at  this education  level  in  a 
broad range of digital and green areas. Further 
improving the employment prospects of STEM 
graduates 
levels 
all 
increased  work-based 
(including 
learning opportunities) would fill relevant skills 
gaps. Through the RRF and the ESF+, the EU is 
supporting  several  reforms  and  infrastructure 
upgrades  of  the  VET  system  in  Greece  to 
improve 
labour  market 
relevance (see Annex 13). 

its  quality  and 

across 
through 

education 

lifelong 

Persistent  skills  mismatches  call  for 
better  skills  intelligence  tools  and  more 
tailor-made 
learning 
opportunities.  In  2025,  Greece  received  a 
CSR 
skills  mismatches. 
Cedefop’s 2024  European  Skills  Index  ranked 
Greece  30th  out  of  31  countries  for  skills 
matching,  28th  for  skills  development  and 
27th for skills activation. Participation in adult 
learning  is  persistently  low  and  leading  to 

address 

to 

including 

in  digital  areas 
skills  gaps, 
(Graph 4.1).  Several  reforms  and  investments 
have  been  undertaken  (including  with  support 
from the RRF and ESF+) to improve the quality 
and labour market relevance of adult learning 
programmes  and  increase  their  availability, 
but  the  roll-out  of  modern,  well-coordinated 
and  tailored  programmes  based  on  Individual 
is  not  yet  operational. 
learning  accounts 
Moreover,  Greece  can  benefit  from  a  more 
comprehensive skills anticipation framework. 

Graph 4.1: Digital skills and adult participation 
in learning 

(1) Share of individuals who have basic or above-basic 
overall digital skills (% of population aged 16-74) 
(2) Adult participation in learning (during the last 12 
months, excluding guided-on-the-job training, % of the 
population aged 25-64) 
Source: Eurostat [special extraction from the AES], 
[tepsr_sp410], [isoc_sk_dskl_i], ESS ICT Survey. 

Some 
regulatory  and  administrative 
bottlenecks  are  hindering  cross-border 
labour  mobility  and 
the  effective 
functioning  of  the  single  market.  Despite 
digitalisation  efforts,  long  waiting  times  for 
individuals to obtain pensions from Greece and 
for other Member States’ institutions to obtain 
information  on  periods  of  contributions  in 
Greece  may  also  discourage  intra-EU  labour 
mobility (see Annex 5). 

23 

515253545556520152016201720182019202020212022202320242025EL Basic digital skillsEU-27 Basic digital skillsEL Adult learningEU-27 Adult learning 
  
Improving job quality and 
addressing social exclusion is key 

Employment  is  still  increasing  but  does 
not benefit women and vulnerable groups 
to  the  same  extent.  Greece  received  a  CSR 
in 2025 to increase the rate of women, young 
people  and  vulnerable  groups  in  work  or 
looking for work, but progress has been limited 
overall.  The  gender  employment  gap  remains 
one  of  the  highest  in  the  EU  (17.4 pps  vs 
EU: 9.6 pps in end-2025) and women are more 
likely  to  be  long-term  unemployed  or  inactive 
(partly  due  to  limited  care  services  for  pre-
primary school children and other dependents). 
Employment  outcomes  are  also  poorer  for 
groups 
young 
people 
(Annex 11).  Demographic 
the 
in  Greece’s  working-age 
resulting  decline 
population  make  it  key  to  further  expand  the 
labour  force  through  tailor-made  activation 
to  early 
programmes, 
childcare  and  long-term  care  services  and 
flexible work arrangements. 

increased  access 

trends  and 

vulnerable 

and 

to 

led 

The  high  prevalence  of  undeclared  and 
atypical  work  impairs  job  quality.  The 
persistently  high  incidence  of  undeclared  and 
under-declared  work  has 
the 
introduction of a digital work card that records 
working  time.  The  predominance  of  tourism 
and other services means that Greece has one 
of  the  highest  shares  of  low-wage  earners  in 
the  EU  and  a  relatively  high  share  of  non-
standard  forms  of  work  (including  seasonal 
work),  but  average  weekly  working  hours  are 
some of the highest in the EU. Almost half of 
workers on temporary contracts do not wish to 
work on a temporary basis and a third of them 
are faced with material and social deprivation. 
Law 5239/2025 
employment 
simplified 
introduced  some  further 
procedures  and 
flexibility in working time, while also putting in 
place  a  stronger  social  security  framework 
that  was  subsequently  complemented  by  the 
national  social  agreement  on  collective 
bargaining. These legal changes could improve 
job  quality  and  working  conditions,  but  their 
effective implementation will require thorough 
labour inspection mechanisms. 

impacts 

children 

is  higher  for 

individuals  with 

increased  by  0.6 pps 

The  risk  of  poverty  remains  high  and 
particularly 
and 
vulnerable groups. Greece received a CSR in 
2025  to  address  poverty  and  social  exclusion 
by  further  increasing  the  effectiveness  and 
efficiency  of  its  social  protection  system,  but 
progress  has  been  limited.  The  proportion  of 
people  at  risk  of  poverty  or  social  exclusion 
to  27.5% 
(AROPE) 
between  2024  and  2025  and  remains  high 
(despite decreasing over the past decade). The 
rate 
low 
educational  attainment and vulnerable  groups 
(e.g. persons  with  disabilities)  and  varies 
between  regions  (see  Annex 18).  Greece’s 
share of children experiencing severe material 
and  social  deprivation  is  also  higher  than  the 
EU  average  and  progress  in  reducing  child 
poverty  has  stalled  in  recent  years  (see 
Annex 12).  The  impact  of  social  transfers  on 
poverty reduction remains limited, because the 
coverage  and  adequacy  of  these  transfers  is 
low  overall  and  the  government  tends  to  rely 
on  one-off  support  measures  to  provide 
temporary relief to people in need. The severe 
underfunding  of  social  protection  services 
corresponds  to  one  of  the  lowest  public 
in  the  EU.  Particular 
expenditure  shares 
challenges  exist  as  concerns  access 
to 
healthcare and other essential  social  services. 
Vulnerable  groups  and  remote  communities 
are disproportionately affected (see Annex 12). 

costs 

impair 

living 
Rising  housing 
conditions,  especially 
for  vulnerable 
groups. The share of energy-poor households 
is  above  the  EU  average  and  increasing.  For 
28.9% of the population, housing costs exceed 
40%  of  their  total  disposable  household 
income  (vs  8.2%  in  the  EU)  (44).  Overall, 
housing  affordability  has  deteriorated.  The 
standardised house price-to-income ratio grew 
by  13%  in  the  last  decade  and  house  price 
increases  have  been  among  the  sharpest  in 
the EU. Rental prices are not regulated and the 
few  measures  supporting  tenants  have  a 
limited impact. The provision of social housing 
stopped in early 2010s and there are currently 

(44)  This indicator should be read together with the tenure 
structure (homeowner, tenants), that may differ across 
country and regions. 

24 

 
 
the 
few  social  housing  providers.  Given 
increasing  housing  challenges,  responsibility 
has  been  assigned  to  the  Ministry  of  Social 
Cohesion  and  Family,  which  is  assisted  by  an 
the 
interministerial  coordination  body. 
context  of  the  RRF,  a  comprehensive  housing 
strategy  has  been  developed.  However,  a 
national housing observatory is still needed to 
monitor  the  housing  situation  of  vulnerable 
groups (see Annex 16). 

In 

Further strengthening the 
healthcare and long-term care 
systems is a priority 

Several  measures  have  been  taken  to 
strengthen  the  healthcare  system,  but 
more  effort  is  needed  to  address  the 
persistently  high  level  of  unmet  medical 
needs  across  the  population  and  regions. 
Through  the  RRF,  ESF+  and  ERDF,  Greece  has 
invested in primary healthcare to help shift the 
focus of the healthcare system from hospital-
(see 
based  care 
in 
Annex 15). 
infrastructure  and  digital  transformation  are 
paving the way for improved access to health 
services. Focusing on sustaining investments in 
primary care and mobile health assets as well 
as  ensuring  the  functioning  of  the  personal 
doctor  reform  and  referral  system  are  key  to 
ensuring that healthcare needs are met across 
Greece  and  particularly  in  remote  or  rural 
regions. 

to  primary  healthcare 
investments 
Ongoing 

Greece still has the highest proportion of 
out-of-pocket  (OOP)  payments  in  the  EU. 
These  mainly  concern  pharmaceuticals  and 
inpatient care. The high level of OOP payments 
results  from  long  waiting  lists  and  the  high 
level  of 
to  private  providers, 
particularly to bypass long waiting times. This 
results  in  major  risks  for  Greek  households, 
especially  vulnerable  ones.  In  2023,  almost 
9.5%  of  Greek  households  had  to  face 
catastrophic  expenditure (45)  on  healthcare. 

recourse 

Greece  is  working  on  ways  to  increase  public 
spending  on  healthcare,  but  further  measures 
to  ensure  access  to  and  affordability  of 
services  (including  coverage  for  dental  care) 
would be very useful. 

Persistent  shortages 
in,  and  uneven 
distribution  of  health  professionals 
is  further  hampering 
across  regions 
access  to  healthcare.  Greece’s  healthcare 
system  has  a  relatively  high  number  of 
doctors,  but  it  faces  shortages  of  nurses  and 
several  medical  specialists  (including  general 
practitioners),  especially  in  rural  and  hard-to-
reach  areas.  In  addition  to  ongoing  efforts 
(made  with  support  from  the  RRF)  to  address 
current  shortages,  a  comprehensive  strategy 
that  leverages  planning  and  performance-
monitoring tools as well as strong and reliable 
data  would  strengthen  the  nursing  workforce 
(via  recruitment  and  retention),  reduce  unmet 
needs  and  further  accelerate  the transition  to 
primary and preventive care. 

Significant  unmet  long-term  care  (LTC) 
needs have been reported, particularly in 
remote and island regions. Greece received 
a  CSR  in  2025  to  expand  LTC  services.  It  has 
the  lowest  number  of  LTC  staff  per  100 
individuals  aged  65+  in  the  EU,  with  only 
0.3 workers  (EU: 3.3).  This 
limits  the  LTC 
system’s  capacity  to  function  in  a  timely  and 
efficient  manner.  Key  LTC  challenges  include 
limited  access  to  community-based  services, 
home  care  and  residential  care;  territorial 
service-quality.  A 
low 
inequalities;  and 
strategic  LTC  framework  has  been  developed 
with  support  from  the  EU’s  Technical  Support 
Instrument 
in 
expanding services has not yet been recorded 
and  a  dedicated  LTC  action  plan  is  still  to  be 
implemented.  Planned  measures 
(e.g. the 
expansion  of  community-based  services  and 
the operation of mobile service units in remote 
areas) aim to address regional disparities and 
unequal 
services.  However, 
increasing staff and training in the delivery of 
LTC  services  would  boost  the  roll-out  and 
implementation of the LTC strategy. Moreover, 

(TSI).  However,  progress 

access 

to 

(45)  Catastrophic expenditure is defined as household OOP 
spending exceeding 40% of total household spending 

net of subsistence needs (i.e. food, housing and 
utilities). 

25 

 
 
 
 
improvements in the licensing of LTC services 
(particularly  care  for  the  elderly)  would  allow 
more and better providers to enter the market, 
particularly  if  coupled  with  a  robust  and 
to  safeguard 
framework 
regular  control 
service standards. 

26 

 
KEY FINDINGS 

In  areas  covered  by  existing  CSRs,  Greece 
would benefit from: 

resolution  mechanisms,  and  by  further 
revising the code of judges; 

•  further 

developing 

non-fossil 
flexibility  solutions  by  promoting  new 
renewable  energy  sources  (RES)  (including 
offshore wind, energy storage and the roll-
out  of  smart  meters);  recalibrating  energy 
taxes  to  incentivise  electrification;  phasing 
out  fossil-fuel  subsidies (particularly in the 
industrial sector); and increasing the quality 
and  capacity  of  electricity  networks  (for 
example,  by  completing  interconnections 
with islands);  

•  accelerating  the  decarbonisation  of 
the  transport  sector  based  on  a 
comprehensive  strategy  and  by  promoting 
electric  mobility;  upgrading  the  passenger 
shipping fleet and urban and inter-regional 
public  transport;  expanding  the  railway 
network;  and  rolling  out  the  European  Rail 
Traffic  Management  System  (ERTMS)  in 
full; 

•  strengthening  climate  resilience  by 
governance 
key 

establishing  a  multilevel 
system 
and 
infrastructure; 

climate-proofing 

•  adopting  a  national  strategy  for 
increasing  private  insurance  coverage 
against 
disaster-related 
damages; 

natural 

• 

including  strengthening 

the  national  water 
implementing 
strategy, 
local 
water  service  providers  and  investing  in 
sustainable  water  infrastructure  (including 
reuse of adequately treated wastewater); 

•  promoting  upward  social  convergence 
by further increasing the effectiveness and 
efficiency of the social protection system;  

• 

the 

tax 
evaluating 

system’s 
improving 
transparency 
and 
rationalising tax expenditure and continuing 
the  centralisation  and  digitalisation  of 
customs and tax inspections; 

by 

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

implementing 

•  continuing to reduce the stock of non-
performing  loans  held  by  banks  and 
credit  servicers  by  accelerating  liquidation-
related court proceedings;  

•  further 

removing 

single  market 
barriers  by  reducing  the  administrative 
and 
regulatory  burden  on  companies 
(including  in  environmental  licensing  and 
for  the  granting  of  concession  agreements 
on the seashore); 

•  reviewing and removing entry barriers 
to  professional  services  and  product 
markets; 

•  expanding 

financial  and  advisory 
support  schemes  for  SMEs  aimed  at 
their  export-orientation  and 
boosting 
competitiveness,  especially  outside 
the 
capital region; 

•  reducing fragmentation of the national 
research,  development  and  innovation 
and 
system, 
sustainable  funding  and  facilitating  access 
to finance for start-ups and scale-ups;  

long-term 

ensuring 

•  further  accelerating  civil  and  public 
procurement  proceedings  through  the 
adoption  of  a  code  on  alternative  dispute 

27 

 
 
•  boosting youth employment and labour 
force  participation  of  women  through 
more  intensive  and  tailor-made  activation 
programmes,  and  by  expanding  access  to 
childcare and long-term care; 

•  addressing 

skills  mismatches 

by 
reorienting  education  and  training  systems 
to  labour  market  needs  and  improving  the 
coordination of adult learning programmes; 

•  promoting  human  capital  formation, 
including  by  supporting  persons  with 
disabilities  and  special  educational  needs; 
enhancing 
continuous 
teachers’ 
professional  development;  and  improving 
school autonomy. 

In other areas, Greece would benefit from: 

•  completing  the  urban  planning  reform 
through the entry into force of urban plans 
covering the whole of Greece; 

• 

improving  housing  affordability  by 
expanding  affordable  and  social  housing 
supply (particularly in areas of stress);  

•  addressing  demographic  decline  by 
accelerating implementation of the national 
demographic  action  plan  and  ensuring 
coherence with regional development plans; 

healthcare; 

•  promoting  access  to  high-quality  and 
affordable  healthcare  by  strengthening 
primary 
the 
functioning  of  the  personal  doctor  reform 
and referral system; tackling shortages and 
geographical  imbalances  of  nurses  and 
doctors; and addressing the high proportion 
of out-of-pocket payments; 

ensuring 

•  updating 

the 

regional 

waste 
management plans alongside investing in 
solid waste management infrastructure and 
the 
waste 
of 
management bodies (including on islands). 

capacity 

regional 

28 

 
LIST OF ANNEXES 

A1.  CSR implementation 

Fiscal 

A2.  Fiscal developments and debt sustainability 

A3.  Taxation 

Productivity 

A4. 

Innovation to business 

A5.  Single market and industry 

A6.  Savings, investment and access to finance 

A7.  Effective institutional framework 

Sustainability 

A8. 

Industry decarbonisation, circularity and climate mitigation 

A9.  Affordable energy transition 

A10.  Climate adaptation, preparedness and environment 

Fairness 

A11.  Labour market 

A12.  Social policies 

A13.  Education and skills 

A14.  Social scoreboard 

A15.  Health and health systems 

A16.  Housing 

Horizontal 

A17.  Sustainable development goals 

A18.  Competitive regions 

A19.  Transport 

LIST OF TABLES 

A1.1. 
A2.1. 
A2.2. 
A2.3. 
A3.1. 
A4.1. 

CSR implementation and Commission assessment 
Supplementary pension schemes - Scope for expansion 
Projected change in age-related expenditure in 2025-2040 and 2025-2070 
Fiscal governance database indicators 
Taxation Indicators 
Key innovation indicators 

29 

32 

36 

36 

42 

47 

47 

52 

61 

67 

73 

73 

80 

87 

93 

93 

97 

101 

105 

106 

110 

115 

115 

118 

126 

32 
38 
38 
41 
42 
51 

 
 
 
Single Market and Industry 
Savings and Investments Union summary diagnostic 
Financial sector indicators 
Greece. Selected indicators on better regulation practices for primary legislation 
Digital Decade key performance indicators: availability of digital public services 
Key clean industry and climate mitigation indicators: Greece 

A5.1. 
A6.1. 
A6.2. 
A7.1. 
A7.2. 
A8.1. 
A10.1.  Key Adaptation Indicators 
A14.1.  Social Scoreboard for Greece 
A15.1.  Key health indicators 
A18.1.  Key regional indicators (at NUTS2 level) for Greece 
A18.2.  Main development trends, challenges and the concentration of resources 
A19.1.  ERTMS deployment in Greece 

LIST OF GRAPHS 

Composition of non-financial corporations funding 
Capital markets and financial intermediaries 
Composition of households' financial assets 
Trust in the justice system, regional / local authorities and in government 

Contributions to the change in the general government balance (% of GDP) 
Public investment evolution and composition (% of GDP) 
Primary spending evolution and composition 
Investment breakdown 
Tax revenue by economic function in 2024, EL (outer ring) and EU-27 (inner ring) 
Tax wedge for single and second earners as a % of total labour costs, 2025 
VAT gap indicators, 2023 
Share of R&D personnel and researchers in total employment (%), as full time equivalent, 2024 

A2.1. 
A2.2. 
A2.3. 
A2.4. 
A3.1. 
A3.2. 
A3.3. 
A4.1. 
A5.1.  Manufacturing industry production: total and selected sector, index (2021=100), 2015-2024 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2.  Most time-consuming aspects of service delivery 
A8.1. 
A9.1. 
A9.2. 
A9.3. 
A11.1.  Employment rate by sex, annual 
A11.2.  Labour shortages and job vacancy rate 
A12.1.  At-risk-of-poverty or social exclusion rate by age group 
A12.2. 
A15.1.  Treatable mortality 
A15.2.  Out-of-pocket payments: share in healthcare spending and categories, 2023 
A16.1.  House prices, rents and price-to-income evolution in EL and EU27 since 2005 
A16.2.  House supply indicators in EL since 2005 
A16.3.  Housing affordability selected indicators 
A17.1.  Progress towards the SDGs in Greece 
A19.1.  Greece's Road fatalities per million, 2024 

Greenhouse gas emissions in the effort sharing sectors, 2005, 2023, and 2024 
Electricity and gas prices for household and non-household consumers, first half of 2025 
Low-carbon electricity generation vs. electricity wholesale prices, 2025 
Greece’s installed renewable capacity vs electricity generation mix 

Impact of social transfers on poverty reduction (%) 

A1.  CSR implementation 

Fiscal 

A2.  Fiscal developments and debt sustainability 

A3.  Taxation 

30 

60 
61 
66 
68 
70 
79 
92 
105 
106 
119 
122 
127 

36 
37 
37 
39 
42 
44 
45 
48 
59 
62 
63 
64 
67 
69 
74 
80 
81 
84 
93 
94 
97 
98 
106 
108 
110 
111 
114 
115 
128 

32 

36 

36 

42 

 
 
 
47 

47 

52 

61 

67 

73 

73 

80 

87 

93 

93 

97 

101 

105 

106 

110 

115 

115 

118 

126 

Productivity 

A4. 

Innovation to business 

A5.  Single market and industry 

A6.  Savings, investment and access to finance 

A7.  Effective institutional framework 

Sustainability 

A8. 

Industry decarbonisation, circularity and climate mitigation 

A9.  Affordable energy transition 

A10.  Climate adaptation, preparedness and environment 

Fairness 

A11.  Labour market 

A12.  Social policies 

A13.  Education and skills 

A14.  Social scoreboard 

A15.  Health and health systems 

A16.  Housing 

Horizontal 

A17.  Sustainable development goals 

A18.  Competitive regions 

A19.  Transport 

31 

 
 
 
 
ANNEX 1: CSR IMPLEMENTATION  

Table A1.1:  CSR implementation and Commission assessment 

(Continued on the next page) 

32 

  Greece faces challenges in a wide range of policy areas, as identified in the country-specific recommendations (CSRs). Greece was recommended, among other things, to simplify regulation, streamline judicial proceedings, improve governance of national research, development and innovation systems, develop non-fossil flexibility solutions and accelerate decarbonisation, and increase the rate of women and vulnerable groups in work or looking for work.  The Commission has assessed the degree of implementation of the 2025 CSRs considering the policy action taken by Greece to date*. To do so, the Commission has taken into account the information provided by Greece in its Annual Progress Report as well as other information sources. This annex provides summary information on the policy actions taken or planned by Greece for each CSR. More detailed information on these actions is included in the relevant chapters and other annexes of the report. *CSR 2 is not assessed in CeSaR. 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, to be reflected in the country reports. Progress with the cohesion policy is monitored in the context of the Cohesion Policy of the European Union. Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  1.1 Reinforce overall defence and security spending and readiness while ensuring debt sustainability in line with the European Council conclusions of 6 March 2025. • Total general government defence expenditure in 2026 is projected at 2.6% of GDP, corresponding to an increase of 0.4 ppt. compared to 2024. • Total general government defence expenditure in 2027 is projected at 2.5% of GDP, corresponding to an increase of 0.3 ppt. compared to 2024.   Substantial progress 1.2 In line with the requirements of the reformed Stability and Growth Pact, limit the growth in net expenditure in 2025 and 2026 to a rate consistent with 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, while making use of the allowance under the national escape clause for higher defence expenditure. • Cumulated deviation in 2025 amounted to -1.3% of GDP. • Cumulated deviation in 2026 projected at 0.2% of GDP but it is fully explained by the NEC flexibility (0.4% of GDP).  Full implementation 1.3 Continue efforts to improve tax compliance, including through further centralisation and digitalisation of customs and tax inspections. Tax compliance: POS integration with business cash registers and operationalisation of system for on-the-spot inspections of IAPR auditors. Centralisation of the tax and customs inspections:  Merger of fives big customs offices in Attica and Piraeus, establishment of the Attica Customs Audit Center and the Large Taxpayers Audit Center. Tax compliance: mandatory e-invoicing for B2B transactions (for all businesses).  Digitalisation of inspections: certification of new IT system (inflow-outflow) by petrol stations (March 2026). Some Progress 1.4 and improve the tax system's predictability. Codification and simplification of the Income Tax Code and Code of Tax Administration, the VAT code, Stamp duty, Property taxes, State Debt Collection (KEDE) and National Customs Code as well as the set-up of a content management system and dedicated website for taxpayer information (RRF). Establishment of a procedure for the adoption of tax interpretations (advanced tax ruling), by the end of the first half of 2026 (details not yet shared with COM). Some Progress 1.5 Further improve the effectiveness and efficiency of its public administration by fully implementing the multi-level governance framework. Effectiveness/Efficiency: Medium-term hiring plan complying with attrition rule.  Wage bill (% of GDP) remains stable. Multi-level governance: legal codification of local and regional development expected to be adopted in 2026 – enabling the operationalisation of the framework. Some Progress 1.6 Pursue the ongoing reduction of the stock of non-performing loans held by banks and credit servicers by accelerating liquidation-related court proceedings. E-auctions: Creation of the ‘property’s digital folder’ to tackle information asymmetries. Adoption of legislation expediting process (e.g. on utility arrears). Backlog of pending auction cases: Creation of new e-platform on bringing distant hearing dates of pending cases auctions-related cases earlier (operational by April Substantial Progress  
 
 
 
     
 
Table (continued) 

(Continued on the next page) 

33 

  Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  Backlog of pending auction cases: Adoption of legislation on case management and backlog reduction in enforcement proceedings, through amendments to the Code of Civil Procedure. 2026). 3.1 Simplify regulation, improve regulatory tools and reduce administrative burden for companies by streamlining and digitalising administrative processes, Expansion of digital public services (gov.gr, MITOS registry); upgrades and interoperability of public sector IT systems (property transfer, electricity connection, building permits); digitalisation of tax administration, improved access to information and taxpayer services for certain types of companies.  Simplification of licensing legislation for certain economic activities/ completion of the surveillance framework for businesses (RRF).  Some Progress  3.2 completing the regulatory frameworks for environmental licensing Issuance of secondary legislation for more rapid processing of minor permit amendments in 8 out of 12 categories of investment activities; issuance of new classification for environmental permitting of onshore wind and photovoltaic power plants. Issuance of legislation for defining criteria for substantive amendments in 4 remaining categories (including manufacturing).  Substantial Progress 3.3 and granting concession agreements on the seashore.   Limited Progress 3.4 Review and remove the high entry barriers to the exercise of professional services and to new entrants to product markets. No measure taken to remove unnecessary barriers to entry and allow for more competition in legal, pharma, civil engineering professions and in retail trade. Simplifying procedures for entering the activity of construction machinery operators; Study on competition focusing on selected product and service markets. Limited Progress  3.5 Improve the governance of the national research, development and innovation system by reducing the fragmentation of research policy management and funding sources, A National Strategy for Research, Technological Development and Innovation is underway pending validation and subsequent adoption.  Establishment of a dedicated Ministry of Research and Development.  Limited Progress 3.6 and by facilitating access to finance for start-ups and scale-ups, including developing local private equity and venture capital markets with state-sponsored initiatives to mobilise investment. “Startup financing Golden Visa” scheme for non-EU/EEA investors. R&D tax deductions for startup-registered companies; Incentives for patent exploitation; Easier access to finance via angel investment incentives.   Some Progress 3.7 Streamline judicial proceedings and curtail their length by accelerating civil proceedings, adopting a code on alternative dispute resolution mechanisms, further revising the code of judges, Implementation of the judicial map revision (civil/penal); Amendment of Code of Civil Procedure to accelerate administration of justice; Introduction of mandatory training of judges.  Code of alternative dispute resolution proceedings is under way and should enter into force by mid-September 2026.  Some Progress 3.8 and continuing efforts to accelerate the judicial resolution of disputes related to public procurement. Several measures taken to expedite contract awards, including in pre- and judicial resolution of disputes. Professional certification requirements set for public procurement staff (RRF).   Substantial Progress 4.1 Developing non-fossil flexibility solutions, including demand-response and storage, which will contribute to making electricity prices more affordable; Storage: Ministerial Decisions adopted in 2025 to set up the licensing framework to support standalone energy storage projects (part of RRF: 16990) Greek authorities are planning legislative initiatives to complete the legal framework for storage. Some Progress 4.2 recalibrating energy taxes to incentivise electrification;   Limited Progress 4.3 taking concrete steps to phase out fossil-fuel subsidies in particular in the industrial sector;   Limited Progress  4.4 and increasing the capacity of Transmission networks: no specific  Some Progress  
 
 
     
 
Table (continued) 

(Continued on the next page) 

34 

  Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  electricity networks by streamlining the licensing process for new transmission networks and by improving the quality of the distribution network to reduce technical and non-technical losses. action to streamline the licensing process, as EL’s position is that these projects have accelerated licensing process. Interconnection of Crete to the mainland grid in 2025 is expected to significantly reduce the PSO account charges on the electricity bills. Distribution networks: steps have been taken to reduce non-technical losses, which are nonetheless estimated to be still significant (and above EU average).  4.5 Accelerate the decarbonisation of the transport sector under a comprehensive strategy with reforms and investment in the shift to electric mobility, upgrading urban and inter-regional public transport, and improving railway infrastructure and operations, including by undertaking the short-term organisational reform work required and the accelerated deployment of the European Rail Traffic Management System on the railway network to improve interoperability, efficiency and safety. Specific measures taken (a number supported by RRF), but no steps taken in terms of preparing a comprehensive strategy for EL’s transport sector and how it could reduce its fossil fuel reliance. On rail, ongoing reforms are part of the RRP, but there will be certain reform actions that are likely not to be in place by mid-2026.  Limited Progress  4.6 Draw up a plan for climate-proofing key infrastructure, including the water supply; No specific plans announced, including clearly assigning responsibilities of concerned ministries.   Limited Progress  4.7 reform the institutional framework to improve the capacity and accountability of local water service providers; Through the national programme Antonis Tritsis, Greece has implemented several projects upgrading urban drinking water and wastewater infrastructures at municipal level. Insufficient administrative, managerial and financial capacity in this regard was highlighted in the 2025 CR. Reform (part of RRF) expected to be in place by mid-2026 that will establish a strategy for the efficient and sustainable use of water resources and support the pilot integration of drinking and irrigation water services with expanded geographic and technical capabilities.  Substantial Progress 4.8 and take steps to increase private insurance coverage against natural disaster-related damages. Implemented: Mandatory insurance for companies with turnover exceeding EUR 500.000 and mandatory insurance for vehicles. 10% property tax discount if the owner takes out a disaster insurance. Natural Disasters Private Insurance Observatory set up.  National strategy for private insurance against natural disasters planned but no timeline for it. Some Progress   5.1 Increase the rate of women and vulnerable groups in work or looking for work, and help more young people find work by promoting more flexible work arrangements, Adoption of Law 5239/2055 (greater flexibility around working time and hiring, especially for parents with children).   Limited Progress    5.2 expanding formal early childhood care and education Implementation of the vouchers’ scheme for childcare facilities and of the ‘Nannies’ scheme (ESF+) Extension of vouchers scheme; and expansion of ‘Nannies’ scheme Limited Progress  5.3 and long-term care, Establishment of home health care and hospital-at-home systems for patients with chronic diseases; Action Plan to be adopted in 2026; introduction of financial and non-financial incentives for nurses. Limited Progress  
 
 
     
 
Table (continued) 

Source: Greece’s reporting and Commission assessment 

35 

  Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  Delivery of telemedicine stations and equipment (both RRF).  5.4 reinforcing active labour market policies, Implementation of several training and employment subsidy programmes for women, GMI recipients, young people and persons with disabilities; expansion of PES’s digitalisation.  No announcement including as regards third- country nationals and Roma. Some Progress   5.5 and tackling skill mismatches. Large-scale training programmes (digital, green);  Implementation of the 2022 lifelong learning reform is not full (yet ILAs, governance).    Limited Progress  5.6 Improve educational outcomes by enhancing continuous professional development for teachers, improving school autonomy, and expanding teacher evaluation. Development of strategy for primary and secondary education; provision of digital tutoring to students; New evaluation framework of school units under design.  Implementation of 2026 OECD review; introduction of multiple textbooks in school year 2027-28.  Limited Progress  5.7 Address poverty and social exclusion by further increasing the effectiveness and efficiency of the social protection system. GMI increase by 8%; introduction of prepaid cards for social allowances and of disability card; introduction of annual rent refund for vulnerable renters and of an annual allowance (EUR 250) for persons with disabilities and pensioners; completion of personal assistance pilot. RRF: Rollout of personal assistance; accessibility interventions; digital training for elderly and persons with disabilities. Limited Progress     
 
   
 
FISCAL 
ANNEX 2: FISCAL DEVELOPMENTS AND DEBT SUSTAINABILITY 

in 

through 

strategy 

line  with 

compliance 

This annex discusses selected topics in public 
finances  and  developments  on 
fiscal-
structural  CSRs  addressed  to  Greece  in  July 
2025.  These  include  a  call  to  reinforce  defence 
spending and  readiness,  while  implementing  a 
fiscal 
the  Council 
Recommendation of 21 January 2025. Greece was 
also recommended to continue efforts to improve 
tax 
further 
(including 
centralisation  and  digitalisation  of  customs  and 
tax  inspections)  and  the  predictability  of  the  tax 
system.  Furthermore,  it  was  recommended  to 
further improve the effectiveness and efficiency of 
its public administration by fully implementing the 
multi-level  governance  framework  (see  Annex 7) 
and  pursue  the  ongoing  reduction  of  the  stock  of 
non-performing  loans  held  by  banks  and  credit 
servicers  by  accelerating  liquidation-related  court 
proceedings.  On  21  January  2025,  the  Council 
adopted  the  Recommendation  endorsing  Greece’s 
medium  term  fiscal  structural  plan  for  the  period 
2025-2028 (46).  The  plan 
fiscal 
adjustment over four years. At the same time, the 
Council  also activated the National  Escape Clause 
(NEC)  for  Greece  to  facilitate  the  transition  to 
higher levels of defence spending (47) (48). 

includes  a 

Developments in government balance, 
debt and public expenditure (49) 

despite 

increasing 

Greece  is  expected  to  maintain  sound  public 
spending 
finances, 
pressures.  The  general  government  recorded  a 
surplus of 1.7% of GDP in 2025, which, according 
to  the  Commission  Spring  2026  Forecast,  is 
projected to decline to 0.8% in 2026 and 0.6% in 
2027. The gradual narrowing reflects expansionary 

(46)  OJ C, C/2025/661, ELI: https://eur-

lex.europa.eu/eli/C/2025/661/oj/eng. 

(47)  OJ C, C/2025/3965, ELI: https://eur-

lex.europa.eu/eli/C/2025/3965/oj/eng. 

(48)  Compliance by Greece with the maximum growth rates of 

net expenditure recommended by the Council is assessed in 
COM(2026)200. 

(49)  Figures underpinning fiscal surveillance (net expenditure 

growth) are provided in the Fiscal Statistical 
Tables (SWD(2026)200) providing background data relevant 
for the assessment of the budgetary policies of the Member 
States. 

for 

transfer 

measures,  including  tax  reductions,  higher  public-
sector  wages,  a  means-tested  rent  refund  and  a 
permanent  annual 
vulnerable 
cost-of-living 
individuals,  aimed  at  easing 
pressures.  Additional  spending  pressures  stem 
from  higher  defence  expenditure  and  temporary 
energy  support  measures  adopted  in  response  to 
the recent increase in fuel price. At the same time, 
stronger 
revenue  performance,  supported  by 
continued  progress  in  improving  tax  compliance 
and collection, is expected to partly counterbalance 
these spending increases. Greece’s public debt-to-
GDP  ratio,  which  stood  at  146.1%  in  2025,  is 
projected  to  decline  further  to  around  134.4%  by 
2027,  supported  by  nominal  GDP  growth  and 
continued primary surpluses. 

Graph A2.1: Contributions to the change in the 
general government balance (% of GDP) 

Source: European Commission Spring Forecast  

Public  investment  has  expanded  steadily 
since 2019, supported by the effective use of 
EU funds and growing national cofinancing. It 
is projected to increase from around 2.5% of GDP 
in  2019 to  about  4.8% in  2026  (see  graph  A2.2), 
reflecting  both  sustained  Recovery  and  Resilience 
Facility  (RRF) 
inflows  and  a  higher  national 
cofinancing.  As  RRF  support  gradually  declines 
after  2026,  this  does  not  mark  a  slowdown  in 
investment  activity.  Instead,  it  coincides  with  the 
final  phase  of  the  2021–2027  NSRF  cycle,  when 
spending  typically  accelerates  as  projects  reach 
maturity  and  disbursements  peak.  At  the  same 
time, nationally financed expenditure continues to 
strengthen,  alongside  a  steady  contribution  from 
defence  spending.  Additional  EU  instruments  such 
as  the  Modernisation  Fund  and  Social  Climate 
Fund  are  expected 
this 
sustained high level of public investment. 

to  further  support 

36 

-3-2-10123452021202220232024202520262027RevenueExpenditureChange in budget balance% of GDP 
 
 
 
           
 
 
Graph A2.2: Public investment evolution and 
composition (% of GDP) 

Graph A2.3: Primary spending evolution and 
composition 

Source: Eurostat 

While  expenditure  with  a  higher  impact  on 
GDP had remained broadly stable over three 
decades, it has slightly increased since 2019. 
This  may  be  related  with  the  impact  of  the  RRF, 
facilitating  a  more  quality-based  fiscal  strategy. 
Zooming in on the composition of spending, social 
protection  accounts  for  the  largest  share  of  total 
expenditure  (almost  40%),  followed  by  general 
public  services,  health  and  economic  affair  above 
10%  of 
total  spending.  Since  2019,  other 
economic  and  transport  spending  has  increased 
strongly (See Graph A2.3). Spending on education, 
housing, culture, defence and R&D has risen more 
modestly,  with  the  rise  in  defence  spending 
reflecting  recent  security  developments.  However, 
despite  these  increases,  Greece’s  spending  on 
education remains among the lowest in the EU.  At 
the same time, low levels of basic and digital skills 
continue  to  pose  a  major  challenge  for  the 
for 
education 
employment  and 
the 
Education  Annex  for  further  details).  By  contrast, 
spending  on  communication  and  health  has 
declined.    This  trend  deserves  attention,  as  these 
categories  are  generally  considered  growth-
friendly spending categories.  

implications 
(see 

competitiveness 

system,  with 

(1) Based on the Classification of the Functions of 
Government (COFOG data).Note:  
Based on economic literature, the categories considered to 
have higher growth impact include education, R&D, health, 
transport and communication (See Barbiero and Cournede 
(2013), Gemmel et al. (2016), Lupu et al (2018), Cepparulo 
and Mourre (2020) and OECD (2025)). 
Source: Eurostat. 

The tax revenues as a share of GDP in Greece 
are in line with the EU average with the tax 
system being strongly reliant on consumption 
taxes.  In  2025  Greece’s  total  tax  revenues  as  a 
percentage  of  GDP  (including  compulsory  social 
security  contributions)  amounted  to  40%,  in  line 
with the EU average of 39.9%. Total tax revenues 
are  projected  to  decrease  to  39.9%  of  GDP  in 
2026 and 39.3% of GDP in 2027 according to the 

37 

0123456201920202021202220232024202520262027% of GDPDefenceRRF grants and other EU fundsOther nationally-financed051015204045505560200720082009201020112012201320142015201620172018201920202021202220232024a) Primary spending evolution (% of GDP)Primary expenditureSpending with higher impact on GDP (rhs)-5-4-3-2-10123SocialprotectionEnvironmentPublicorderHealthGeneralservicesCommunicationCultureR&DDefenceEducationHousingInterestspendingTransportOther economicb) Compositional change (% total spending) since 2019 
          
 
   
Table A2.1:  Supplementary pension schemes - Scope for expansion 

Source: European Commission. 

Spring  2026  Forecast (50).  The  tax  mix  in  Greece 
relies  more  heavily  on consumption  taxes  (37.8% 
of  tax  revenues  vs.  EU  average  of  26.8%),  and  is 
less  dependent  on  labour  taxes  (40.7%  vs.  EU 
average of 51.5%) (see Annex 3). 

Cost of ageing 

Total  age-related  spending 
in  Greece  is 
projected  to  rise  by  about  1 pp.  of  GDP  by 
2040,  but  to  decline  by  2070,  compared  to 
2025  (see  Table  A2.2).  The  overall  decline 
results  from  a  projected  fall  in  spending  on 
pensions  and,  to  a  lesser  extent,  education,  with 
healthcare spending expected to rise.  

Public pension spending as a share of GDP is 
projected  to  rise  somewhat  in  the  coming 
decades  but  to  decline  in  the  longer  term. 
Overall, by 2070, public pension outlays would fall 
by a little over 1 pp. of GDP, to 12% of GDP, which 
would be similar to the projected EU. 

Supplementary pension schemes can enhance 
the  resilience  of  the  pension  system  by 
diversifying  retirement  income  sources.  In 
Greece,  however,  their  uptake  remains  limited:  by 
end-2024,  private  pension  assets  amounted  to 
around  1%  of  GDP  while  participation  covered 
around 3% of the working-age population (51). This 
coincides  with  rising  medium-term  public  pension 

spending  pressures  and  a  projected  decrease  in 
the  replacement  rate  by  6.3 pps.  between  2025 
and  2040  (Table  A2.2  and  A2.3) (52).  In  this 
context,  in  2022 Greece introduced  a  new  funded 
individual 
auxiliary  scheme  (TEKA),  based  on 
defined-contribution.  TEKA  is  a  public  law  entity 
operating  outside  the  general  government  sector, 
while  forming  part  of  the  national  social  security 
system. Participation is mandatory for new labour 
market  entrants  since  2022  and  voluntary  for 
certain individuals below the age of 35. While still 
at an early stage, with limited accumulated assets, 
TEKA  represents  a  step  towards  the  gradual 
development  of  funded  pension  savings  and  a 
broader  diversification  of 
income 
sources over the medium to long term. 

retirement 

spending 

Public healthcare expenditure is projected at 
5.2% of GDP in 2025 (below the EU average 
of  6.6%)  and  is  expected  to  increase  by 
0.6 pps. by 2040 and by a further 0.2 pps. by 
2070.  Although  overall 
remains 
relatively  contained,  the  current  structure  of 
healthcare  provision  raises  medium-to-long-term 
fiscal  sustainability  considerations.  Healthcare 
spending  continues to  be concentrated  in hospital 
care  and  pharmaceuticals,  while  primary  and 
preventive  services  play  a  comparatively  limited 
role (see Annex 15). At the same time, high out-of-
pocket  payments  and  uneven  access  to  services 
the  allocation  of 
point 
resources,  which  may 
cost-
the 
effectiveness  of  public  spending.  With  support 
from  the  RRF,  the  authorities  have  implemented 

inefficiencies 

reduce 

to 

in 

Table A2.2:  Projected change in age-related expenditure in 2025-2040 and 2025-2070 

(50)  Data retrieved from the AMECO database (https://economy-

finance.ec.europa.eu/economic-research-and-
databases/economic-databases/ameco-database_en) 

(51)  Source: OECD Pension Market in Focus 2025. The highest 

(52)  The (gross) replacement rate refers, depending on data 

participation rate in at least one supplementary pension plan 
is reported.  

availability, to both public and private pensions. It is based 
on projections from the 2024 Ageing Report.  

Source: 2024 Ageing Report (EC/EPC).  

38 

EL21.70.50.60.0-0.30.822.5ELEU24.30.50.30.4-0.30.925.2EUEL21.7-1.20.70.0-0.3##21.0ELEU24.30.20.60.8-0.31.325.6EUageing-related expenditure change in 2025-2070 (pps GDP) due to:ageing-related expenditure pensionshealthcarelong-term careeducationtotalageing-related expenditure change in 2025-2040 (pps GDP) due to:ageing-related expenditure pensionshealthcarelong-term careeducationtotalAssets in 2024 (% GDP)Participation in 2024 (% working-age population)EL1.1-6.33.0ELEU32.4-2.855.9EUGross replacement rate at retirement: (pps change 2025-2040)  
 
 
 
 
           
 
 
       
 
reforms  and  investment  aimed  at  strengthening 
primary  care,  prevention  and  digital  health.  These 
are  contributing  to  rebalancing  the  system  away 
from  hospital-centred  care  and 
reducing 
reliance on private spending, but impact has so far 
been  limited.  Ensuring  that  these  investments 
translate  into  structural  improvements  in  service 
organisation  and  spending  efficiency  will  be 
important to contain future expenditure pressures. 

in 

Graph A2.4: Investment breakdown 

Source: Eurostat. 

Public  expenditure  on  long-term  care  is 
projected  to  be  0.1%  of  GDP  in  2025  (far 
below  the  EU  average  of  1.7%)  and  is 
expected  to  remain  broadly  similar  by  2040 
and  2070.  The  currently  low  level  of  public 
spending  reflects  the  limited  development  of 
formal long-term care services, with care provision 
relying  heavily  on  informal  arrangements  and  a 
fragmented mix of public and private providers. As 
demographic ageing is set to increase the demand 
for  long-term  care  services,  this  may  create 
additional  fiscal  pressures.  The  adopted  national 
strategy  for  long-term  care  is  a  step  towards 
improving accessibility, affordability and quality of 
services  in  Greece.  However,  the  Action  Plan 
accompanying  the  national  strategy  is  still  under 
preparation.  

NPLs and tax administration 

Non-performing  loans  (NPLs)  held  by  banks 
reached  a  historic  low,  while  the  resolution 
of  remaining  NPLs  —  now  largely  managed 

by servicers — has proceeded at a slow pace. 
Until  mid-2025,  banks  primarily  used  portfolio 
sales and securitisations under the Hercules Asset 
Protection  Scheme  (HAPS)  to  decrease  their  stock 
of  NPLs.  This  resulted  in  a  historic  low  of  2.8% 
NPL  ratio  in  the  banking  system,  while  it  still 
remains  above  the  EU  average  (see  Annex  6).  At 
the same time, the stock on NPLs owned by credit 
servicers  increased  due  to  the  final  round  of 
securitisations  under  HAPS  (i.e.  inorganic  workout 
of  NPLs  by  banks  via  transfers  of  loans  to  credit 
servicers). The workout of the transferred NPLs to 
credit  servicers  is  low,  particularly  due  to  the 
inability  of  prospective  purchasers  to  assess  the 
state  of  properties  being  auctioned  and  to 
excessive  delays  in  court  procedures  relevant  to 
the  pre-  and  post-  auction  disputes,  which 
discourage participation in the auction process.  

(CCP) 

Targeted  amendments  to  the  Code  of  Civil 
in  2024  have  been 
Procedure 
implemented  under  the  RRF,  to  expand  the 
information  available  on  the  auctioned 
assets  in  the  e-auctions  platform,  while 
further amendments were introduced in 2025 
to  enhance  and  accelerate  the  resolution  of 
enforcement-related  disputes,  as  well  as  to 
include  provisions  for  the  creation  of  an  e-
platform for the rescheduling distant hearing 
dates.  Additionally,  the  organic  workout  of  NPLs 
(i.e.  restructuring,  etc.)  is  further  enhanced  by 
recent  upgrades  to  the  Out-of-Court-Workout 
Mechanism  (OCW)  platform,  also  funded  by  the 
RRF. 

in 

through 

including 

Tax  administration  reforms  have  delivered 
measurable 
revenue 
improvements 
collection,  but  maintaining  momentum  will 
depend  on  continued  action.  In  2025,  Greece 
received  a CSR to continue efforts to improve tax 
compliance, 
further 
centralisation  and  digitalisation  of  customs  and 
tax  inspections  and  improve  the  tax  system’s 
predictability.  Greece  has  made  solid  progress  in 
improving  tax  administration  and  compliance  in 
recent  years,  supported  by  the  rollout  of  digital 
tools  such  as  myDATA,  electronic  invoicing  and 
risk-based 
efforts 
contributed  to  halving  the  VAT  compliance  gap, 
in  2023 (53). 
from  29% 
in  2017  to  11.4% 
Sustaining these gains beyond the RRF period will 

systems. 

These 

audit 

(53)  European Commission, EU VAT Gap Report. 

39 

4.25243.711.89.4024681012141618202410-y averages% of GDPgovernmentnon-government 
       
 
in 

continued 

integrates 

investment 

require 
system 
maintenance  (e.g.  IT  storage)  and  institutional 
capacity.  Related to this,  in  particular  as  concerns 
tax  inspections,  a  new  General  Directorate  has 
been established at the Independent Authority for 
the 
(IAPR),  which 
Public  Revenue 
Economic Crimes Enforcement Agency (SDOE). The 
addition of resources needed to carry out physical 
checks  are  expected  to  further  strengthen  the 
effectiveness  of  the  inspections.  Finally,  IAPR  is 
currently 
integrating  new 
responsibility areas, including payment and control 
of farm subsidies, and the challenge will be to do 
it in a way that will not have an adverse impact of 
IAPR’s  organisational  transformation  and  at  the 
same time allow for improved management of the 
farm support provided by the EU to Greece. 

in  the  process  of 

Customs operations are in a transition phase, 
with  the  ongoing  centralisation  of  customs 
inspections  already  yielding  results,  but 
there  remains  scope  to  expand  and  enhance 
effectiveness.  Customs  administration  reforms 
are progressing with the centralisation of controls 
and  inspections,  which  already  seem  to  have  a 
positive  impact  on  overall  revenue  collection. 
However,  the  consolidation  of  customs  services  is 
ongoing and is expected to be completed in 2026, 
including  for  Thessaloniki.  The  completion  of 
organisational 
reforms  aimed  at  centralising 
customs checks are particularly relevant given the 
volume of trade (54) through key entry points such 
as the port of Piraeus (55). In this context, ensuring 
adequate  inspection  capacity  and  infrastructure 
will  be  important  to  facilitate  effective  customs 
operations  and  align  operational  capabilities  with 
expanding  responsibilities,  including  under  the 
Carbon  Border  Adjustment  Mechanism (56)  and 
broader Schengen border coverage (57). In terms of 
key  IT  tools,  the  rollout  of  key  surveillance 

(54)  Maritime vessels statistics - Statistics Explained - Eurostat, 
“Greece recorded the largest number of vessel port calls in 
2024”. 

(55)  Eurostat, Top 5 ports for containers - gross weight of goods 

in containers handled in each port, [mar_qg_qm_pwhc] Top 5 
ports for containers - gross weight of goods in containers 
handled in each port. 

(56)  An EU policy established by Regulation (EU) 2023/956 that 
applies a carbon price to certain imported goods to prevent 
carbon leakage. More information: https://taxation-
customs.ec.europa.eu/carbon-border-adjustment-
mechanism_en. 

(57)  Greece to start using EU Digital Entry/Exit System on 12 

systems,  including  inflow-outflow  monitoring  for 
fuel  and  tracking  mechanisms  for  commercial 
vehicles and containers (supported by the RRF) are 
ongoing.  Once  fully  operational,  these  systems 
would 
and 
traceability. 

enforcement 

strengthen 

help 

to 

is  key 

improving 

Enhancing  the  predictability  of  Greece’s  tax 
revenue 
system 
efficiency.  Despite  improvements  in  compliance, 
the  VAT  policy  gap  remains  high  at  57.1%  in 
2023 (58), the second highest in the EU and above 
the  EU  average  of  50.5%.  This  gap  is  driven  by 
reduced  rates  and  exemptions,  which  constrain 
revenues  and  increase  complexity  to  the  tax 
system. Embedding evaluation of tax expenditures 
and  assessment  of  their  effectiveness,  together 
with  simplification  of  exemptions (59),  could  help 
close  this  gap  by  reducing  number  of  tax 
expenditures, 
a  more 
transparent tax framework.  

supporting 

thereby 

National fiscal frameworks 

to 

recently  adopted  changes 
the  number  of 

The  Hellenic  Fiscal  Council  (HFISC)  is  a 
medium-sized  IFI  with  a  narrow  mandate.  It 
consists  of  endorsing  macroeconomic  forecasts 
and  monitoring  compliance  with  fiscal  rules  but 
has  so  far  not  performed  fiscal  sustainability 
analysis  or  policy  impact  quantification.  However, 
with 
relevant 
legislation, 
tasks  has  been 
expanded  and  some  independence  safeguards 
strengthened.  It  experiences  some  difficulties  in 
recruiting  staff  with  the  appropriate  skills,  as 
remuneration  is  tied  to  public  sector  pay  scales. 
The  policy  dialogue  with  the  government  and 
interactions  with  the  parliament  are  not  fully 
developed. HFISC is trying to enhance its outreach 
activities 
half-time 
employing 
communications  expert  and  establishing  a 
dedicated unit supporting the Chair. 

one 

by 

Systematic  spending  reviews  capabilities 
could improve the quality of public finances. 
However,  during  the  first  years  of  the  financial 
crisis,  spending  reduction  has  been  driven  by 
financial  conditionality  rather  than  by  systematic 

(58)  European Commission, EU VAT Gap Report. 

October 2025 - Embassy News Entry/Exit System (EES) - EES. 

(59)  OECD 2024 Economic Survey for Greece. 

40 

 
 
 
spending reviews. In addition, as the fiscal position 
is benign, the appetite to run more systematically 
spending 
reduced,  while  sectoral 
reviews 
efficiency gains are possible. 

is 

which  includes  a  total  of  344  entities across  all 
subsectors  of  General  Government  (i.e. Central 
Administration  local  government,  social  security 
funds, public hospitals and other public entities). 

Table A2.3:  Fiscal governance database indicators 

(1) The Country Fiscal Rule Strength Index (C-FRSI) shows the 
strength of national fiscal rules aggregated at country level, 
based on i) the legal basis, 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.  
The score for public accounting reflects the degree of 
maturity in relation to the International Public Sector 
Accounting Standards (IPSAS). Countries with an accounting 
maturity of 70% or more in relation to IPSAS are deemed to 
apply accrual accounting. For more information, see the report 
on public accounting in the EU (COM(2025)746 and 
accompanying Staff Working Document SWD(2025)396). 
Source: Fiscal Governance Database, European Commission 

Law 

(PIP) 

continue 

framework 

Programme 

strengthen 

introduced  an 

Efforts 
the 
to 
management  of  public  investment  in  Greece. 
In  September  2024,  Greece  adopted  a  simplified 
legislative  framework  (i.e.  the  Public  Investment 
(Law 
Development 
integrated 
5140/2024)),  which 
planning 
and 
nationally-financed  investment;  a  rolling  10-year 
investment plan; mechanisms for project  tracking, 
performance  evaluation  and 
in 
resource  allocation,  as  well  as  digital  tools  (such 
as e-pde) to improve real-time tracking of project 
execution.  While  an  ex-post  review  of  the  PIP 
implementation and goals will be carried out every 
five  years,  asset  registers  are  not  maintained  at 
the central level.  

transparency 

EU-financed 

for 

to 

all 

central 

covering 

revenue  and 

established  a 

structured 
Greece  has 
framework  for  integrating  green  budgeting 
into  its  performance  budgeting  system.  The 
Ministry of Economy and Finance has implemented 
a  tagging  methodology  aligned  with  the  six 
environmental  objectives  of  the  EU  Taxonomy, 
now 
administration's 
programmes.  Efforts  are  under  way  to  extend 
tagging 
tax  expenditures, 
strengthen links with other green reforms such as 
green  bonds,  and  report  end  of  year  results. 
the 
Remaining 
methodology  for  revenue-side  tagging  (listing), 
strengthening the use of environmental indicators, 
and  extending  the  green  criteria  across  the  full 
budget  cycle,  including  ex-post  evaluation.  The 
newly  developed  IT  system  ‘GOVERP’  is  being 
developed  in  this  direction,  in  the  context  of  the 
RRF,  and  aims 
to  support  data  collection, 
evaluation, and reporting for green budgeting and 
beyond. 

finalising 

priorities 

include 

Accrual  accounting  improves  transparency 
over  a  public  body’s  financial  position  and 
performance  and  can  support  sustainability 
and 
(14) 
intergenerational  equity.  Most 
implemented  accrual 
Member  States  have 
accounting  across  the  general  government  sector 
and a further five, including Greece, are set to do 
so  by  2030 (60).  However,  currently  Greece  still 
lags  behind  the  EU  average  (see  Table  A2.3) (61). 
Greece is implementing a major accounting reform 
and  transition  to  accrual  accounting,  aligned  with 
IPSAS,  launched  in  January  2026  for  the  General 
Central 
Government 
Administration, and from January 2027 for Central 
Administration.  January  2027  marks,  also,  the 
execution of the budget entirely via the govERP IT 
system. Furthermore, as a milestone in the context 
of the RRF, Greece prepared (December 2025) the 
first  consolidated  financial  statements  of  the 
General Government for the 2023 reporting period 

Entities, 

except 

for 

(60)  Report on public accounting in the EU (COM(2025)746 and 
accompanying Staff Working Document SWD(2025)396). 
Countries with an accounting maturity of 70% or more in 
relation to International Public Accounting Standards are 
deemed to apply accrual accounting. 

(61)  Annexes 3.1 and 3.4 of SWD(2025)396. 

41 

2024GreeceEU AverageCountry Fiscal Rule Strength Index (C-FRSI)11.2314.81Medium-Term Budgetary Framework Index (MTBFI)0.870.722025 Public accounting maturity of general government21%65% 
 
 
   
 
 
ANNEX 3: TAXATION 

This  annex  provides  an 
indicator-based 
overview  of  Greece’s  tax  system.  It  includes 
information  on  the  tax  mix,  on  competitiveness 
and fairness aspects of the tax system, and on tax 
collection and compliance. On tax,  the 2025 CSRs 
to  continue 
for  Greece  stressed 
improving  tax  compliance,  including  by  further 
centralising  and  digitising  customs  and 
tax 
inspections  and  making  the  tax  system  more 
predictable. The recommendations also highlighted 
challenges 
to 
incentivise electrification and taking concrete steps 
to  phase  out  fossil-fuel  subsidies  in  particular  in 
the industrial sector. 

recalibrating  energy 

the  need 

taxes 

in 

Greece’s  tax  revenues  as  a  percentage  of 
GDP were slightly above the EU aggregate in 
2024.  The  tax-revenue-to-GDP  ratio  in  Greece 
increased from 38.9% to 40.0% in 2024, which is 
just  above  the  EU  average  (39.4%).  This  ratio 
increased  from  32%  of  GDP  in  2010  until  2016, 
reaching  a  stable  level  around  the  European 
average.  Compared  with  2023,  in  2024,  revenues 
from  labour  and  capital  taxes  slightly  gained 
weight at the expense of those from consumption, 
which  were  down  1.3 percentage  points  (pps). 
Revenues from property taxes (2.6% of GDP) also 
exceeded the  EU  average in  2024  (1.8%  of GDP). 
This  was  particularly  the  case  for  recurrent  taxes 
from immovable property (1.9% of GDP, compared 
with 0.9% for the EU average). 

Graph A3.1: Tax revenue by economic function in 
2024, EL (outer ring) and EU-27 (inner ring) 

Source: Taxation Trends Data, DG TAXUD 

Although  Greece’s  environmental  taxation  is 
high,  some  reforms  need  to  be  completed. 
Despite  the  decline  recorded  in  previous  years, 
revenues  from  environmental  taxes  in  Greece 
reached  3.8%  of  GDP  in  2024,  still  among  the 
highest  shares  in  the  EU.  The  effective  rate  of 
carbon  taxation  (EUR 86.73/tonne  of  CO2)  was 

42 

2 pps  above  the  EU  average  in  2023.  Revenues 
from  both  energy  and  transport  tax  as  a 
percentage  of  GDP  in  Greece  are  significantly 
above  the  EU  average.  See  Annex 9  for  further 
information  on  Greece’s  efforts  to  recalibrate 
energy  taxes  to  incentivise  electrification  and 
phase  out  fossil-fuel  subsidies  in  the  industrial 
sector in particular. 

In Greece, the standard corporate income tax 
(CIT)  rate  is  relatively low and  very  close to 
the  effective  CIT  rate.  In  2025,  the  corporate 
income tax rate was 22% for all entities with the 
exception  of  credit  institutions  opting  for  the 
deferred tax assets regime, which were subject to 
a  rate  of  29%.  The  standard  CIT  rate  was  the 
same in 2024, when the forward-looking effective 
average  tax  rate  was  21.6%.  For  2022-2030 
Greece  set  up  a  strategic  investment  framework 
for  green  and  digital  projects  (e.g.  renewables, 
circular  economy,  and  cleantech  manufacturing) 
which  provides  for  accelerated  depreciation  and 
corporate tax exemptions. Other ‘green’ incentives 
include  accelerated  depreciation  for  charging 
facilities for low-emission transport and recycling, 
energy  efficiency,  water  saving  upgrades,  and 
efficiency, 
200% 
on 
environmental 
digitalisation 
expenses of SMEs. 

energy 
and 

protection 

deduction 

is 

through 

fostering  R&D 

tax 
Greece 
incentives.  All 
deductions  and  patenting 
expenses  for  scientific  and  technological  research 
can  be  deducted  from  the  gross  income  of 
companies  at  the  time  of  their  realisation.  From 
2025,  tax  deduction  was  increased  to  150%  for 
expenses related to collaborations with companies 
in 
recognised 
research  centres  and  universities,  and  for  the 
and 
research 
depreciation 
instruments.  This  benefit  was  increased  to  215% 
for  SMEs.  Under  some  conditions,  profits  derived 
from 
internationally 
recognised  patent  are  also  exempt  from  income 
tax for up to three consecutive years. 

the  exploitation  of  an 

the  national  startup 

equipment 

registry, 

of 

is 

committing 

For  2026,  Greece 
to 
facilitating  access  to  finance  for  start-ups 
and  scale-ups  through  projects  implemented 
under  the  EU’s  ERDF,  Cohesion  Fund  and  ESF+ 
programmes. ‘These projects will also support the 
transfer  office 
technology 
development  of 
networks across universities and research centres. 
Deductions  from  taxable  income  of  up  to  50% 
were  introduced  in  2025  for  individuals  investing 

51.526.821.640.737.821.5Taxes on labourTaxes on consumptionTaxes on capital 
 
      
 
 
Table A3.1:  Taxation Indicators 

(1) Forward-looking effective tax rate (KPMG).  
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average. 
(**) Forecast value for 2024. EU-27 refers to the median value. For more data on tax revenues as well as the methodology 
applied, see the Data on Taxation Trends webpage. 
Source: European Commission, OECD, ISORA. 

in start-up companies or in closed-end funds. Their 
recent  introduction  means  the  impact  of  these 
measures  cannot  yet  be  fully  assessed;  it  will 
depend  on  their  effective  implementation  and 
take-up (see Annex 4).  

Greece’s  labour  tax  burden  is  below  the  EU 
average  for  all  income  levels.  The  labour  tax 
wedge in 2025 was lower than the EU average for 
single workers at different earnings levels as well 
as for second earners earning 67% of the average 
earnings (62).  The  redistributive  impact  of  the  tax-
and-benefit  system  is  comparatively  limited.  In 
2024,  Greece’s  tax  and  benefit  system  reduced 
inequality,  as  measured  by  the  Gini 
income 
coefficient, by an average of 3.5 points, compared 

with  an  EU  average  reduction  of  7.8 points 
(Table A19.1) (63).  

In  2025, 

Disincentives  in  the  tax  and  benefit  system 
for  unemployed  to  take  up  work  remain, 
especially  at  the  lowest  wage  levels.  The 
JRC’s  recent  EUROMOD  simulations  show  that 
Greece  has  sizeable  participation 
rates 
(PTR) (64). 
the  PTR  for  employees 
averaged  across  the  whole  income  distribution 
was  62.6% (65),  mainly  due  to  a  combination  of 
significant  benefit  withdrawal  (41%)  and  social 
insurance  contribution  (14%).  In  addition,  the  PTR 
was  above  70%  for  the  first  quintile  and 
reflecting  strong 
decreasing 
unemployment  protection  for  low  incomes.  In 

the  others, 

tax 

in 

(62)  The  tax  wedge  is  an  indicator  of  the  tax  burden  on  labour 
that  can  be  assessed  at  various  levels  of  earnings.  It  is 
defined as the sum of personal income taxes, employee and 
employer  social-security  contributions  and  other  mandatory 
contributions,  expressed  as  a  percentage  of  total  labour 
costs  (composed  of  the  net  wage,  personal  income  tax, 
social 
contributions,  and  other  mandatory 
contributions).  Tax  wedge  data  in  the  2026  country  reports 
are calculated by the Joint Research Centre of the European 
Commission and based on the EUROMOD model, while in the 
past  country  reports  they  were  based  on  the  OECD  tax  and 
benefit  model.  While  the  underlying  methodology  is  very 
similar, differences in the assumptions can lead to different 
results between both models.  

security 

(63)  The Gini  coefficient measures  the  extent  to  which  the 
distribution  of  income  within  a  country  deviates  from  a 
perfectly  equal  distribution.  A  coefficient  of  0  expresses 
perfect equality where everyone has the same income, while 
a coefficient of 100 expresses full inequality where only one 
person has all the income. 

(64)  PTR  shows  the  share  of  earnings  effectively  “taxed  away” 
when  moving  from  unemployment  to  employment,  due  to 
the combined effect of foregone benefits and higher taxes or 
contributions. 

(65)  Unweighted average across EU27 countries was 54.1%. See 
Annual  Report  on  Taxation  2026  by  European  Commission 
for  a  broader  discussion  on  work  incentives  in  EU27 
(forthcoming). 

43 

2019202220232024202520192022202320242025Tax structureTotal taxes (including compulsory actual social contributions) (% of GDP)39.140.938.840.039.939.739.039.4Taxes on labour (% of GDP)16.916.315.516.320.620.119.920.3of which, social security contributions (SSC, % of GDP)12.012.211.211.713.012.712.713.0Taxes on consumption (% of GDP)15.117.015.215.111.210.910.510.6of which, value added taxes (VAT, % of GDP)8.39.08.89.07.17.47.17.1Taxes on capital (% of GDP)7.27.68.28.68.18.78.58.5Personal income taxes (PIT, % of GDP)5.95.55.96.69.69.49.39.6Corporate income taxes (CIT, % of GDP)1.92.22.73.02.63.23.23.1Total property taxes (% of GDP)3.33.02.72.62.22.11.91.8Recurrent taxes on immovable property (% of GDP)2.42.12.01.91.21.00.90.9Environmental taxes (% of GDP)4.25.64.13.82.62.12.12.1Effective carbon rate in EUR per tonne of CO2 equivalentsnana86.7nanana84.8naTax wedge at 50% of average wage (single person) (*)32.529.629.629.628.932.431.631.531.531.6Tax wedge at 100% of average wage (single person) (*)37.434.535.035.635.440.139.739.939.940.0Corporate income tax - effective average tax rates (1) (*)23.521.621.621.620.019.219.019.3Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)4.24.04.53.57.88.07.97.8Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)191.5190.6159.0na31.832.630.7naVAT gap (% of VAT total tax liability, VTTL) (**)24.012.411.49.010.57.38.2naEU-27GreeceProgressivity & fairnessTax administration & complianceBy tax baseSome tax types 
 
 
 
      
 
practice,  potential  withdrawal  of  means-tested 
benefits  after  a  certain  income  threshold  drives 
lower work incentives for the first quintile. 

Graph A3.2: Tax wedge for single and second 
earners as a % of total labour costs, 2025 

structural measures could mitigate the fiscal drag, 
which has been increasing in recent years. 

The Greek government adopted tax measures 
in  the  area  of  housing.  Under  Law 5246/2025, 
Greece  adopted  additional  measures  to  improve 
housing affordability, for example  by  rationalising 
the property income tax scale. It also extended the 
3-year  tax  exemption  for natural  persons’ income 
from 
immovable  property  previously 
declared  as  vacant  or  provided  for  short-term 
rental (see also Annex 16 on housing).  

letting 

Note: The second earner tax wedge shows a household’s tax 
wedge resulting from the wage that a second earner taking 
up a job at 67% of the average wage receives. It does not 
show the total tax wedge of the household. The household is 
assumed to have a first earner at 100% of the average wage 
and no children. For the methodology of the tax wedge for 
second earners, see OECD (2024), Taxing Wages 2024. 
Source: European Commission 

In  2026,  Greece 
introduced  significant 
changes  in  personal  income  taxation  (PIT), 
which are expected to further reduce the tax 
burden  on  labour  across  several  income 
brackets.  From  1 January 2026,  tax  rates  are 
reduced  by  2 percentage  points  across  most 
brackets  for  individuals  earning  over  EUR 10 000 
per  year,  lowering  the  tax  on  middle-income 
earners.  This  reform  also 
introduces  a  new 
intermediate  rate  of  39%  for  incomes  between 
EUR 40 000 and EUR 60 000, with the top rate of 
44% reserved for incomes above EUR 60 000. The 
Greek government has also implemented targeted 
tax  relief  for  families  with  dependent  children, 
with progressively lower rates in the lower income 
brackets  and  zero  tax  up  to  EUR 20 000  for 
households  with 
children. 
Furthermore, the reform includes tax incentives for 
younger  workers.  Individuals  up  to  25 years  old 
pay  no  income  tax  on  income  up  to  EUR 20 000, 
and reduced rates apply for those aged 26–30.  

or  more 

four 

for 

tax 

(TEs). 

recorded, 

implications 

expenditures 

expenditures  were 

Greece  foregoes  considerable  revenues  due 
to 
Greece’s 
comprehensive  reporting  published  yearly  as  an 
annex  to  the  national  budget  estimates  this  at 
33%  of  total  government  tax  revenues  and  the 
Global Tax Expenditures Database put it at 7.78% 
of  GDP  in  2024  (6.87%  in  2023).  The  size  of  tax 
revenue 
expenditures  has 
efficiency and affect the overall complexity of the 
tax  system.  For  2024,  a  total  of  1 236  cases  of 
tax 
totalling 
EUR 22.88 billion  of  foregone  revenue.  Of  these, 
1 033 related to specific taxes and 203 to general 
exemptions,  some  of  which  are  also  included  in 
the specific tax expenditures. The most prominent 
expenditures  relate  to  capital  taxation  (property 
and  inheritance  taxation)  (EUR 9.10 billion),  PIT 
(EUR 4.95 billion),  CIT 
(EUR 5.80 billion),  excise 
duty  (EUR 1.0 billion)  and  VAT  (EUR 1.0 billion). 
European  Commission  VAT-related  estimates (66) 
show  an  actionable  VAT  policy  gap  in  Greece  of 
36.1%,  above  the  EU  average  of  27.2%.  The  VAT 
rate  gap  in  2023  amounted  to  EUR 9.4 billion  or 
18.3% of the notional  ideal  revenue (EU estimate 
12.3%) (see graph A.3.3). 

Greece  has  a  well-established  workstream 
for  monitoring  and  reporting  TEs  and  a 
formal  tax  gap  team  estimates  compliance 
gaps (67). An annual report on tax expenditures by 
category,  beneficiary  group  and  foregone  revenue 
accompanies the State budget (68), but there is no 
formal  mechanism 
their 
effectiveness,  despite  the  fact  that  numerous  tax 

evaluating 

for 

The  fiscal  cost  of  the  personal  income  tax 
reform  is  estimated  at  EUR 1.2 billion  in 
2026  and  EUR 1.6 billion 
in  2027,  with 
approximately  4 million  taxpayers  expected 
to  benefit.  Other  measures 
at 
strengthening pensioners' income are projected to 
cost  around EUR 629 million  in  2026.  Additional 

aimed 

(66)  European Commission: Directorate-General for Taxation and 
Customs Union, Syntesia, CASE, Intellera, Poniatowski, G. et 
al., VAT gap in Europe – Report 2025, Publications Office of 
the European Union, 2025.  

(67)  These estimates are not publicly disclosed and are used for 

internal purposes of the tax administration. 
(68)  In accordance with Article 75(5) of Law 4270/14. 

44 

28.930.535.440.730.52025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - ELSingle earner - EU averageSecond earner -  ELSecond earner -  EU average 
     
 
expenditures  can  complicate  the  tax  system  and 
should  be  well  targeted.  A  formal  tax  gap  team 
was  established 
to  produce 
estimates  for  VAT,  CIT,  PIT  and  revenue  from 
tobacco products. 

in  March 2025 

European  Commission  estimates  suggest  a  CIT 
compliance  gap  in  Greece  at  approximately  7.7% 
of  collected  CIT  revenues  in  2015  below  the  EU 
average  of  10.9% (72).  No  precise  percentage  is 
published for the overall PIT gap.  

Graph A3.3: VAT gap indicators, 2023 

The rate gap and the national policy-driven exemption gap are 
two dimensions of the actionable VAT policy gap and are 
measured as percentages of notional ideal revenues. The 
compliance gap is measured as a percentage of VAT total tax 
liability. EU refers to median values. 
Source: European Commission, Directorate-General for 
Taxation and Customs Union, VAT gap in the EU - 2025 report 

also 

undertaking 

digitalisation (69) 

Greece  is  working  to  bring  its  VAT  and  PIT 
compliance gaps  closer to the EU average. It 
is 
and 
centralisation reforms funded by the recovery and 
resilience  plan (70)  and 
legislative 
measures (71).  The  VAT  compliance gap  decreased 
steadily and significantly between 2019 and 2023 
(by approximately 13 pps). In 2023, Greece had an 
estimated  VAT  compliance  gap  equivalent  to 
EUR 2.5 billion or 11% of the VAT total tax liability, 
compared to the EU  average of 9.5%. Meanwhile, 

relevant 

However,  indirect  indicators  such  as  audit 
outcomes and underreporting trends suggest 
that  personal  income  tax  non-compliance 
remained high from 2018-2022. This applies in 
particular  for  the  self-employed  and  sectors 
characterised  by  cash-based  transactions  and 
reporting (73).  There  are 
weaker 
indications 
recently 
improved as the declared gross income from self-
employed (74) doubled in 2023 and 2024.  

third-party 
that 

the  situation  has 

Greece  has  made  significant  digitalisation 
efforts.  Greece  has  developed  a  strategy  for 
digital  transformation  and  digital  culture  which  is 
overseen  by  a  senior  management  governance 
body,  including  the  identification  of  future  skills 
requirements  for  the  tax  administration (75).  Yet 
challenges could arise following the integration of 
the  staff  from  the  Agricultural  Support  and 
Payments  Agency  (OPEKEPE)  and  the  General 
Directorate  of  Financial  and  Economic  Crime  Unit 
(S.D.O.E.).  

The  high  e-filing  rate  in  Greece  indicates 
good progress with digitalisation and likely a 
lower compliance burden for Greek taxpayers 
than  the  EU  average.  Greece  has  high  e-filing 
rates (76) for CIT (99.9% vs EU average of 97.1%), 
PIT  (98.5%  vs  EU  average  of  87.1%)  and  VAT 
returns  (100%  vs  EU  average  of  99.2%.  Projects 
supported  under  the  RRF  have  reinforced  this 
trajectory.  Additional  measures  announced,  such 
as 
delivery 
documentation and a new digital platform for the 
property  ownership  and  management  register  are 
set  to 
improve  tax  compliance  and  reduce 
opportunities for underreporting. 

introduction 

digital 

the 

of 

(69)  These include the roll-out of mandatory e-invoicing and 

digital bookkeeping (myDATA, used for both VAT and income 
tax purposes), the development of integrated audit and risk 
assessment tools, the upgrade of data infrastructure and the 
introduction of enhanced third-party obligations.  
(70)  For example, the merger of the three Piraeus customs 

offices, the operation of the large taxpayers audit centre 
consolidating the large enterprises audit centre and the high 
wealth individuals audit centre and the establishment of the 
monitoring of audits through the operations control room. 
(71)  Such as the amendment of the deadline for the submission 

of VAT returns monthly for newly established businesses and 
the establishment of a rebuttable system of deemed income 
for self-employed. 

(72)  Corporate Income Tax Gap. Towards a common European 
approach to measuring losses in corporate tax revenues. 
Final Report. The estimation is based on 2015 revenues and 
the EU (unweighted) average is based on available 
estimates for 23 Member States. 

(73)  DG TAXUD, ‘Mind the Gap Report’, Country report for Greece. 
(74)  According to the national authorities, from 2018 to 2022, 
declared gross income fluctuated between EUR 3.3 billion 
and EUR 5.1 billion. For 2023, EUR 10.4 billion was declared 
and EUR 10.8 billion for 2024. 

(75)  OECD, Forum on Tax Administration, Tax Tech. 
(76)  International Survey on Revenue Administration data.  

45 

0%2%4%6%8%10%12%14%16%18%20%Rate gapNational policy-driven exemptiongapCompliance gapELEU 
      
 
 
However,  some  challenges  remain.  On  tax 
collection, on-time payments are at 89.9% for CIT, 
75.6% for PIT and 89.4% for VAT. Outstanding tax 
arrears  remained  among  the  highest  in  the  EU  at 
159%  (vs  EU  average  of  30.7%).  The  percentage 
of  collectible  arrears  compared  to  total  arrears 
remained  high  over  the  years  2018  to  2023 
although there was a small decrease (from 81.6% 
to  75.2%).  Although  the  relevance  of  additional 
revenues raised from audits is more prominent for 
Greece (77),  the  tax  administration  has  relatively 
few  staff (78),  particularly  in  audit  posts  (22%  of 
full-time equivalents vs EU average of 32%). 

(77)  3.87% of total net revenue in 2018 vs EU average of 2.77% 

and 2.59% of total revenue in 2023 vs EU average of 
1.69%. 

(78)  European  Commission,  DG  TAXUD,  ‘Mind  the  Gap  Report’, 
Country  report  for  Greece  on  the  basis  of  data  from  the 
ISORA Database. 

46 

 
 
PRODUCTIVITY 
ANNEX 4: INNOVATION TO BUSINESS  

its 

challenges 

in  boosting 

Although  Greece’s  science  base  shows  a 
positive  trend,  the  country  still  faces 
challenges 
innovative 
ecosystem.  According  to  the  2025  European 
Innovation  Scoreboard (79),  Greece  is  ranked  as  a 
‘moderate innovator’,  performing  at  75.8%  of  the 
EU average. Its performance since 2018 has been 
increasing  at  a  rate  higher  than  that  of  the  EU. 
Research and development (R&D) intensity (80) has 
been steadily increasing over the last decade and 
reached  1.54%  in  2024  but  remains  significantly 
below  the  EU  average  (2.24%).  For  Greece,  the 
(CSR) 
2025  country-specific  recommendations 
highlighted 
the 
improving 
governance of the national research, development 
and  innovation  system  as  well  as  access  to 
finance  for  start-ups  and  scale-ups.  Alongside 
improving  the  effectiveness  and  efficiency  of 
research  and  innovation  (R&I)  funding  through 
better R&I governance, Greece would benefit from 
a  long-term  commitment  to  ensuring  sustainable 
and  continuous  public  R&D  investment  to  boost 
scientific  performance.  There  is  still  a  lack  of 
private  investment  in  R&D,  hindering  productivity 
growth in the private sector. Digital transformation 
remains  a  challenge  in  Greece,  with  small  and 
medium  enterprises’  (SMEs)  digital  maturity  well 
below  the  EU  average  despite  progress,  and  low 
adoption  of  advanced  technologies  compared  to 
the EU as a whole. 

in 

Excellent science 

Greece’s  science  performance  remains  solid, 
although  more  efforts  are  needed  to  fully 
realise  the  country’s  research  potential. 
Greece’s  robust  public  science  base  is  supported 
by  public  sector  expenditure  on  R&D  which  has 
grown  strongly  over  the  longer  term  (see  table 
A4.1.)  However,  this  growth  has  stalled  in  recent 
years (2020-2023) and fell below the EU average 
in  2024  (0.69%  in  Greece  vs  0.72%  EU  average). 
investment  efforts,  particularly 
Reform  and 

(79)  EC (2025): 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. 

(80)  Eurostat. R&D intensity is defined as gross domestic 

expenditure on R&D as a percentage of GDP. 

through the recovery and resilience plan (RRP) and 
ERDF-funded programmes, are expanding research 
infrastructure and boosting both basic and applied 
research. These investments are strengthening the 
foundations  of  Greece’s  R&I  ecosystem.  However, 
the quality of research outputs - measured by the 
proportion  of  scientific  publications  within  the  top 
10%  most-cited  publications  worldwide  -  remains 
just  below  the  EU  average  (9.3 vs  an  EU  average 
of 9.44) and while it has increased year to year, it 
has  broadly  stagnated  over  the  past  decade. 
to  progressively 
Further  efforts  are  needed 
improve 
long-term 
and 
performance 
sustainability  of  national  research  institutions, 
improve  the  recruitment  and  retention  of  highly 
skilled and early-career researchers and speed up 
the  evaluation  and  project  selection  process (81). 
Moreover, the absence of a long-term strategy for 
sustainable  and  continuous  R&I  financing  beyond 
risk (82), 
the  RRP  period  poses  a  structural 
underlining  the  need  to  ensure  continuity  in 
funding and policy support. 

the 

R&I 

and 

governance 

Improved  research  performance  requires 
better 
less 
administrative  burden.  A  key  challenge  is  to 
ensure  that  the  substantial  inflows  of  EU  and 
national  funding  translate 
into  effective  and 
sustainable  results.  Research  policy  management 
and  funding  sources  remain  fragmented  across 
several  ministries,  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. 
Complex laws and regulations further contribute to 
slow 
high  bureaucratic  burdens, 
excessive 
evaluation 
administrative 
impede 
research  activities  (83).  In  line  with  the  2025  CSR 
on  improving  the  governance  of  the  national 
research,  development  and  innovation  system  by 

requirements,  which 

procedures 

including 

and 

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

country recommendations – final report. 

(82)  The share of RRF R&I allocation over government budget 
allocation on R&D (GBARD) between 2021 and 2023 was 
27%. Study on the R&I measures in the Recovery and 
Resilience Facility - Publications Office of the EU. 

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

47 

 
 
 
 
 
 
 
and 

funding 

sources, 

reducing  the  fragmentation  of  research  policy 
the 
management 
government  has  announced  plans  to  set  up  a 
dedicated  Ministry  of  Research  and  Development, 
and a project is underway to validate the national 
strategy  for  research,  technological  development 
and  innovation (84).  However,  the  implementation 
timeline and the funding arrangements are not yet 
clear, and further reform efforts will be needed to 
reduce  administrative  burden  and  simplify  the 
regulatory framework. 

Business innovation  

innovation  performance  shows 
Business 
moderate  growth  and  requires  increased 
private  investment  and  improved  innovation 
diffusion to SMEs. Business expenditure on R&D 
reached  0.85%  in  2024,  up  steadily  since  2010, 
but  remains  significantly  below  the  EU  average 
(1.49%).  The  business  sector  is  dominated  by 
micro  and  small  firms  and  many  of  them  are 
failing  to  increase  their  productivity  and  to  adopt 
new technologies. Sectors with typically low value 
added per worker, such as agriculture and tourism, 
make  up  a  large  part  of  Greece’s  economy (85). 
Moreover, the size of and value added in medium- 
to  high  technology  manufacturing  remain  below 
EU averages (86) (see also Annexes 5 and 19). This 
is  also  reflected  in  low  innovation  outputs,  with 
only  0.63%  of  patent  applications  per  billion  of 
GDP  compared  to  the  EU  average  of  2.81%  in 
2022  (see  table  A4.1) (87).  Only  31%  of  full-time 
equivalent  researchers  work  in  companies  (56.6% 
in  the  EU,  2023,  graph  A4.1),  indicating  a  weak 
integration  of  research  activity  within  the  private 
sector.  Private-sector  R&D  would  benefit  from 
sustained  investment,  targeted  support  for  SME 
innovation 
public-private 
collaboration. 

stronger 

and 

(84)  Greece Draft Budgetary Plan 2026, Greece | DBP_2026. 

(85)  OECD (2024), OECD Economic Surveys: Greece 2024. 

(86)  The value added in medium- to high-tech manufacturing in 
Greece as percentage of total value added stands at 2% 
compared to the EU average of 5.21% in 2024. 

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

48 

Graph A4.1: Share of R&D personnel and 
researchers in total employment (%), as full time 
equivalent, 2024 

Source: Eurostat  

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  2015  and  2023. 
Business  enterprise  expenditure  on  R&D  financed 
by  the  public  sector  (national  and  abroad)  as  a 
percentage  of  GDP  reached  0.15%  (EU  average 
0.10%). R&D tax incentives (foregone revenues as 
a percentage of GDP) stood at 0.02% in 2023, up 
from  0.01%  in  2015,  although  they  still  lag 
significantly  behind  the  EU  average  (0.1%).  In 
2025,  Greece  introduced  further  enhancements 
under Law 5162/2024 to strengthen tax incentives 
for  R&I.  These  include  higher  deductions  for  R&D 
expenses  –  for  example,  up  to  250%  for 
collaborative  projects  and  up  to  315%  for 
knowledge‑intensive  SMEs.    The  impact  of  these 
reforms  on  the  low  uptake  of  R&D  tax  incentives 
remains  to  be  seen.  Further  improvements  could 
ensure  easier  access  and  increased  awareness, 
particularly  for  small  businesses.  The  public 
support  system  for  business  innovation  requires 
close  monitoring  to  assess  its  effectiveness  and 
efficiency,  and  an  external  assessment  of  the 
system 
to 
strengthen  the  policy  mix  for  the  innovation 
ecosystem. 

recommendations 

could  provide 

efforts 

Science-business linkages have improved, but 
boost 
continuous 
technology  transfer  and  commercialisation 
of research. Despite Greece’s solid research base, 
better  science-business  linkages  have  historically 

could 

help 

0.0.51.1.52.2.5RomaniaCyprusMaltaLatviaBulgariaCroatiaSlovakiaLithuaniaPolandSpainHungaryEstoniaItalyGreeceEUPortugalIrelandCzechiaFranceLuxembourgSloveniaGermanyNetherlandsAustriaSwedenFinlandDenmarkBelgiumBusiness enterprise sectorGovernmnent sectorHigher education sectorPrivate non-profit sector 
 
  
modest 

been  a  challenge.  However, 
recent  support 
programmes  have  begun  to  address  these  gaps, 
contributing to increased collaboration as reflected 
by  the  number  of  public-private  scientific  co-
publications  as  a  percentage  of  total  publications 
(9.01%  vs  the  EU  average  of  7.62%  in  2024). 
Greek  universities  and  public  research  centres 
have been steadily increasing their entrepreneurial 
activity  in  recent  years,  reflecting  a  growing  but 
technology 
level 
still 
commercialisation (88).  The  EU-supported  action 
‘Research 
Innovate  2021–2027’  boosts 
technology  transfer  by  funding  the  establishment 
and  strengthening  of  technology  transfer  offices, 
including  staffing,  patenting  activities  and  other 
services 
organisations 
commercialise  their  results.  This  support  is  much 
needed  as  technology  transfer  offices  reportedly 
continue  to  face  challenges,  including  inadequate 
or  irregular  funding,  limited  staff  and  specialised 
skills, and weak engagement with industry (89). 

research 

help 

that 

of 

– 

Digital transformation of businesses remains 
a  challenge  for  Greece.  The  digitalisation  of 
SMEs  in  Greece  is  progressing  from  43.26%  of 
SMEs  in  2023  having  at  least  a  basic  level  of 
digital intensity level, to 55.95% in 2025. However, 
it remains significantly lower than the EU average 
of  71.39%.  Businesses  overall  are  also  lagging 
behind in the adoption of key digital technologies, 
such as artificial intelligence (AI), cloud computing 
and data analytics. In 2025, 8.93% of enterprises 
in  Greece  were  using  AI  technology,  while  the  EU 
average  was  at  19.95%. 
the 
measures in the RRP will help address the need for 
technology  adaptation  of  businesses,  such  as  the 
digital tools for SMEs programmes. For AI, Greece 
is hosting one of the EU’s 19 new AI factories. The 
Pharos  project  aims  to  create  an  AI  ecosystem  in 
the  country  bringing  together  academia,  research, 
the public sector and private enterprises, including 
start-ups  and  SMEs,  to  accelerate  AI  innovation, 
development and application. 

Implementing 

(88)  Found.Ation (2025): Startups in Greece 2024-2025 Report. 

(89)  Sachini, E., Sioumalas-Christodoulou, K., Chrysomallidis, C. et 
al. Mapping the Technology Transfer Offices in Greece: Initial 
Outcomes Concerning Medical and Health Technologies and 
Next Steps. J Knowl Econ 15, 16060–16095 (2024). 
https://doi.org/10.1007/s13132-023-01715-w.  

49 

Entrepreneurial dynamism 

Greek  start-ups  benefit  from  a  growing 
ecosystem,  but  hurdles  persist.  Greece’s 
startup  and  scale-up 
landscape  has  been 
expanding,  supported  by  a  more  dynamic  tech 
ecosystem,  growing  entrepreneurial  activity  and 
increasing interest from investors in areas such as 
digital  services,  green  technologies  and  health 
innovation.  In  2024,  more  than  90  companies 
were  funded  with  over  EUR  555  million  (15% 
increase  compared  to  2023)  (90).  While  young 
firms  benefit  from  stronger  networks,  talent 
returning  from  abroad  and  programmes  such  as 
Elevate  Greece,  a  database  registry  intended  to 
identify  promising  start-ups  and  help  them  grow, 
challenges  persist.  These 
to 
financing.  

include  access 

Access  to  finance  remains  a  key  constraint, 
also  for  scale-ups.  In  2024,  venture  capital 
investment  stood  at  around  0.016%  of  GDP,  well 
below  the  EU  average  of  about  0.063%.  While 
access  to  finance  at  the  seed  stage  is  broadly  in 
line  with  EU  peers,  funding  constraints  persist  in 
the  startup  and  scale-up  stages,  limiting  firms’ 
growth  potential  (see  table  A4.1).  While  local 
private  equity  and  the  growth  venture  capital 
market  are  not  developed,  state-sponsored 
initiatives  have  had  some  success  in  mobilising 
investment (91) (see also Annex 5 and Annex 6). In 
line  with  the  2025  CSR  on  facilitating  access  to 
finance  for  start-ups  and  scale-ups,  since  2025 
the  government  has  extended  other  support 
measures.  These  are:  (i)  a  new  ’startup  financing 
Golden  Visa‘  scheme  (92),  (ii)  startup-registered 
companies  can  benefit  from  expanded  R&D  tax 
deductions (up to 250-315% in favourable cases), 
(iii)  incentives  for  patent  exploitation  (93),  and  (iv) 
easier  access  to  funding  via  angel  investment 
incentives  (94).  Given  their  recent  introduction,  the 

(90)  Found.Ation (2025): Startups in Greece 2024-2025 Report. 

(91)  EC (2025): Country Report- Greece. 

(92)  Starting January 1, 2025, a residence permit in the form of a 
Golden Visa is granted for investments of EUR 250 000 in 
startup companies that are members of the National Startup 
Registry (Elevate Greece). 

(93)  The patent box system allows for full tax exemption on 

profits from patents for three years, then reduced rates for 
seven years. 

(94)  Found.Ation (2025): Startups in Greece 2024-2025 Report. 

 
 
 
impact  of  these  measures  cannot  yet  be  fully 
effective 
assessed 
implementation  and  take-up  Moreover,  access  to 
finance for scale-ups remains challenging. 

and  will 

depend 

on 

and 

financial 

regulatory 

environment, 

Hellenic 
for 

the 
sandbox 

Greece  has  begun  building  an  innovation-
friendly 
but 
practical  uptake  remains  limited.  Greece  has 
introduced  several  tools  to  support  innovation-
friendly regulation, including the Bank of Greece’s 
technology 
regulatory  sandbox 
for 
firms (95) 
Competition 
sustainable 
Commission’s 
development  and  competition (96).  Updated  public 
procurement 
innovative 
rules  have  anchored 
procurement  in  sectoral  policies  and  there  are 
some EU-funded financial incentives to encourage 
public  procurers  to  undertake  more  innovation 
procurements.  However,  the  policy  framework  is 
still  in  the  early  stages,  with  no  dedicated  action 
plan,  spending  target,  monitoring  system  or 
personal  incentives  to  motivate  public  buyers. 
Having  implemented  just  one  third  of  the  policy 
measures  to  draw  up  a  comprehensive  policy 
framework  for  innovation  procurement,  the  policy 
framework  in  Greece  still  requires  significant 
reinforcement to realise its full potential (97).  

Expanding  the  skilled  workforce  is  vital  for 
Greece’s innovation ecosystem. The proportion 
of 
the  population  aged  25-34  who  have 
successfully completed tertiary education in 2024 
reached  44.5%  (EU  average  44.2%)  and  the 
number of graduates in the field of computing per 
thousand  population  aged  25-34  has  steadily 
increased  to  3.14  (the  EU  average  was  3.84  in 
2024).  At  the  same  time,  the  percentage  of  ICT 
specialists  out  of  total  employment  is  the  lowest 
in  the  EU,  at  2.5%  (98)  (see  Annex  13).  Moreover, 
the  relatively  low  level  of  at  least  basic  digital 
skills among the population (50.96% for Greece vs 
EU  average  60.39%  in  2025)  may  hinder  the 
adoption of digital technologies (see Annex 11). 

Entrepreneurship  education  in  Greece  is  a  key 
top-level 
component  of  a  broader  national, 

(95)  Bank of Greece Regulatory Sandbox. 

(96)  Hellenic Competition Commission Sustainable Development 

Sandbox. 

(97)  EC (2024): Greece. Country profile - Benchmarking of 

national policy frameworks for innovation procurement. 

(98)  State of the Digital Decade 2025 report | Shaping Europe’s 

digital future Greece. 

and 

address 

in  collaboration  with  the 

strategy  aiming  at  strengthening  21st-  century 
skills  across  the  school  system.  This  is  the  skills 
labs  strategy (99)  adopted  in  2021,  which  aims  to 
nurture  responsible  and  informed  individuals  who 
can 
economic 
societal 
complexities (100). It constitutes a flagship initiative 
of the Ministry of Education, Religious Affairs and 
Sports 
Institute  of 
Educational Policy and is inspired by the European 
Skills  Agenda  (101).  The  strategy  is  intended  to 
foster  digital  and  21st-century  competencies  and 
skills,  with  entrepreneurship  as  one  of  several 
pillars of skills development, called the ’life skills’. 
This  includes  financial  literacy,  initiative-taking, 
organisational 
is 
implemented  across  pre-primary,  primary  and 
  Greek  higher 
lower  secondary  education. 
expanding 
education 
entrepreneurship 
innovation 
education 
practices,  but  further  policy  support  is  needed  to 
strengthen institutional capacities and improve the 
measurable 
long-term 
effectiveness  of  entrepreneurship  education 
initiatives (102). 
limited 
is 
impact 
systematic  monitoring  and  detailed 
assessment 
education 
outcomes at national level. This makes it harder to 
refine  evidence-based  policy  and  effectively 
measure  progress  in  developing  entrepreneurial 
skills. 

entrepreneurship 

institutions 

outcomes 

Currently 

planning. 

there 

skills 

and 

and 

and 

are 

of 

It 

(99)  Skills Labs strategy. 

(100) Eurydice report (2025). Entrepreneurship education at school 

in Europe – 2025: 
https://eurydice.eacea.ec.europa.eu/publications/entrepreneur
ship-education-school-europe-2025. 

(101) Communication from the Commission to the European 

Parliament, the Council, the European Economic and Social 
Committee and the Committee of the Regions, ‘European 
Skills Agenda for sustainable competitiveness, social fairness 
and resilience’, COM(2020) 274 final of 1 July 2020. 

(102) OECD (2021), 'Supporting Entrepreneurship and Innovation in 
Higher Education in Greece', OECD SME and Entrepreneurship 
Papers, No. 51, OECD Publishing, Paris, 
https://doi.org/10.1787/37cd1c7d-en.  

50 

 
 
 
Table A4.1:  Key innovation indicators 

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

51 

R&D intensity (gross domestic expenditure on R&D as % of GDP)0.6*0.971.491.481.501.54:2.243.44Public expenditure on R&D as % of GDP0.36*0.640.790.750.760.69:0.720.64Scientific publications of the country within the top 10% most-cited publications worldwide as % of total publications of the country 8.799.368.898.849.30:9.4412.31Researchers (FTEs) employed by public sector (Gov+HEI) per thousand active population6.27.17.88.17.3:4.3:International co-publications as % of total number of publications37.8349.0752.3850.9351.7353.30:57.24:Business enterprise expenditure on R&D (BERD) as % of GDP0.24*0.320.690.730.740.85:1.492.69Business enterprise expenditure on R&D (BERD) performed by SMEs as % of GDP:0.110.260.320.29::0.470.30Researchers employed by business per thousand active population:1.12.73.33.73.7:5.9:Patent applications filed under the Patent Cooperation Treaty per billion GDP (in PPS €)0.420.620.740.63:::2.812.20Employment share of high-growth enterprises measured in employment (%):::1.721.87::0.87:SMEs with at least a basic level of digital intensity% SMEs (EU Digital Decade target by 2030: 90%)::::43.26:55.9571.39:Data analytics adoption% enterprises (EU Digital Decade target by 2030: 75%)::::25.00:31.4539.85:Cloud adoption% enterprises (EU Digital Decade target by 2030: 75%)::::18.07:21.2546.69:Artificial intelligence adoption % enterprises (EU Digital Decade target by 2030: 75%)::::3.989.818.9319.95:Public-private scientific co-publications as % of total number of publications5.527.268.618.929.359.01:7.62:Public expenditure on R&D financed by business enterprises (national) as % of GDP:0.040.040.040.040.04:0.060.02Total public sector support for BERD as % of GDP:0.060.130.170.17::0.21:R&D tax incentives: foregone revenues as % of GDP:0.010.030.020.02::0.100.16BERD financed by the public sector (national and abroad) as % of GDP :0.050.100.150.15::0.11:Venture capital (market statistics) as % of GDP (calculated as a 3-year moving average)0.0080.0110.0140.0270.0250.016:0.063:Seed stage funding share (% of GDP)0.0010.0020.0040.0030.0020.002:0.005:Start-up stage funding share (% of GDP)0.0030.0030.0060.0150.0130.006:0.030:Later stage funding share (as % of GDP)0.0040.0060.0050.0090.0090.009:0.027:New graduates in science & engineering per thousand population aged 25-34:13.4114.2217.53*19.4218.45:16.82:Graduates in the field of computing per thousand population aged 25-34:1.462.092.82*2.993.14:3.84:Innovative talentR&D investment & researchers employed in businessesInnovation outputsDigitalisation of businessesAcademia-business collaboration Public support for business innovationFinancing innovationScience and innovative ecosystemsGREECE2010201520202022202320242025EU average (1)USHeadline indicator 
 
  
 
ANNEX 5: SINGLE MARKET AND INDUSTRY 

EU 

affecting 

counterparts, 

Greece’s  investment  climate  improved  in 
recent years, but further reforms are needed 
to unlock its growth potential. Despite a return 
to  investment  grade  and  recent  improvements, 
business  investment  remains  low.  Greek  firms 
report  more  barriers  to  investment  compared  to 
their 
business 
dynamism  and  productivity,  especially  in  micro-
firms. While there is a higher share of high growth 
enterprises  due  to  public  funding,  Greek  firms 
struggle  to  find  private  capital.  In  addition,  they 
face  late  payments  from  public  authorities.  High 
barriers to entry to competition in professions and 
retail, and to trade facilitation persist, hindering an 
efficient allocation of resources which could boost 
productivity.  Greece's  digital 
is 
gradually  improving  but  remains  behind  the  EU 
average 
connectivity.  The  public 
procurement  system  faces  structural  challenges, 
including  a  high  number  of  single  bids  and 
inefficient  e-procurement  processes.  The  2025 
Country  Specific  Recommendations  (CSRs)  for 
Greece 
“Simplify 
for  measures 
regulation,  improve  regulatory  tools  and  reduce 
by 
administrative 
streamlining 
administrative 
processes”, […]. “Review and remove the high entry 
barriers  to  the  exercise  of  professional  services 
to  product  markets.”; 
and 
“facilitating  access  to  finance  for  start-ups  and 
scale-ups, including developing local private equity 
and  venture  capital markets  with state-sponsored 
initiatives to mobilise investment”; “taking concrete 
steps  to  phase  out  fossil  fuel  subsidies 
in 
particular in the industrial sector”. 

to  new  entrants 

infrastructure 

digitalising 

companies 

burden 

called 

fibre 

and 

for 

to: 

in 

Business dynamics 

Overall,  economic  sentiment  in  Greece  is 
more  positive  compared  to  the  rest  of  the 
EU. More Greek firms than the EU average have a 
positive business outlook, and are more inclined to 
investment  on  expansion  and  on  new 
focus 
products,  particularly 
in  manufacturing  and 
construction (103). 

ratio 
The 
business 
remains  extremely 
recent 
improvements.  Although  slightly  rising,  business 

investment-to-GDP 
low,  despite 

investment  is  still  significantly  below  average  at 
8.5%  of  GDP,  compared  to  the  EU  average  of 
fixed  capital 
12.6%.  However, 
formation,  by  main  asset 
risen 
steadily (104). 

total  gross 

type  has 

Government 
investment  has  decreased 
slightly  but  remains  close  to  EU  average. 
Government  investment  decreased  to  3.7%  of 
2024 GDP compared to 3.9% in 2023 but is on par 
with EU average. The Recovery and Resilience Plan 
(RRP)  has  contributed  to  investment,  worth  more 
than 15% of Greek GDP in 2021-2026.  

Despite  the  positive  outlook,  Greek  firms 
report  more  barriers  to  investment  than 
their  EU  peers.  While  overall  Greek  firms  see 
progress  in  digital  infrastructure,  availability  of 
finance  and  labour  market  regulations  compared 
to  last  year,  the  percentage  of  firms  which  see 
obstacles  remains  higher  than  EU  average (105). 
The  most  quoted 
investment  barriers  are 
uncertainty  about  the  future  and  energy  costs. 
SMEs  are  more  negatively  constrained  by  the 
political,  regulatory  and  economic  climate  than 
large firms. 

Greek  SMEs,  composed  mainly  of  micro-
firms,  show  weak  productivity  performance. 
SMEs  account  for  99.9%  of  enterprises  and 
employ  84.7%  of  the  workforce 
in  Greece, 
contributing 62.8% to the economy's added value, 
both  well  above  the  EU  average  (65.1%  of  the 
workforce  in  the  SMEs  and  53.6%  of  added 
value) (106).  In  2024,  the  Greek  SMEs  had  the 
lowest  average  level  of  value-added  per  person 
employed  of  the  EU  (20 000 EUR  vs  54 000  EU 
average) (107). 

Greece  has  a  higher  share  of  high-growth 
firms  than  the  EU  average,  mainly  due  to 
targeted  public  funding  schemes.  Young  high-
growth enterprises (gazelles) are more prevalent in 
Greece  than  the  EU  average (108),  particularly  in 
information  and  communication,  as  well  as  the 

(104) Gross fixed capital formation by main asset type 

[nama_10_an6]. 

(105) EIBIS 2025. 

(106) See 2025 SME Factsheet. 

(107) European Commission, Annual Report on European SMEs 

2024-2025, p. 14. 

(103) See EIB Investment Survey 2025. 

(108) 2025 SME Performance Review SME key figures Greece. 

52 

 
 
 
 
 
 
electricity,  gas,  steam  and  air  conditioning  supply 
sectors.  The  Greek  start-up  scene  received  a 
significant  boost  with 
the  establishment  of 
EquiFund (109), a fund-of-funds programme formed 
in  2023  by  a  public-private  partnership  between 
the  European 
the  Greek  government  and 
Investment  Fund  (EIF).  EquiFund  spurred  the 
initiation of Greek venture-capital firms. In 2024, a 
new  EquiFund 
initiative  was  allocated  an 
additional  EUR  200  million,  co-financed  by  the 
Cohesion  Policy  Funds  and  national  resources 
managed by the EIF. 

II 

research 

technology 

Greece  has  taken  measures  to  facilitate 
access  to  finance  for  start-ups  and  scale-
ups,  including  the  development  of  local 
private  equity  and  venture  capital  markets. 
The 2026 draft budgetary plan contains measures 
to  enhance  access  to  finance  for  start-ups  and 
scale-ups through projects implemented under the 
Initiatives 
ERDF,  CF,  and  ESF+  programmes. 
include  the  development  of  networks  across 
universities  and  research  centres  to  promote  the 
commercial  exploitation  of 
results 
produced by public research organisations. A call is 
also  underway  for  the  creation  and  strengthening 
of Competence Centres, which will be equipped to 
promote 
to  businesses, 
to 
particularly  SMEs, 
finance  and  mobilising  private  investment  for 
innovative  businesses.  The  Hellenic  Development 
Bank (HDB) has launched a series of initiatives to 
improve  access 
support 
entrepreneurship. One such initiative is the Patent 
Fund,  planned  for  2026.  Designed  within  the 
framework  of  the  "Competitiveness  2021-2027" 
Operational  Programme  of  the  National  Strategic 
Reference  Framework  (NSRF),  the  Fund  aims  to 
provide  quasi-equity  financing  to  support  the 
acquisition  and  exploitation  of  patents,  mainly 
submitted  by  Greek 
start-ups  and  newly 
established companies, as well as by companies in 
their  growth  phase.  One 
the 
EUR 17.7 billion  loan  facility  under  the  Greek  RRP 
is being used to help small businesses to scale up. 

improving  access 

finance  and 

stand  of 

transfer 

thus 

to 

Business  dynamism  remains 
low.  Despite 
minimal administrative requirements for starting a 
business,  the  birth  rate  of  firms  is  among  the 
lowest  in  the  EU.  This  can  be  partly  attributed  to 
obstacles  to  financing  as  well  as  the  subsequent 
need  for  permits  following  business  creation.  The 

of 

and 

institutional 

exit rate for firms is also among the lowest in the 
EU,  as  Greece  scores  below  the  EU  median  on 
“Quality 
operational 
infrastructure for judicial insolvency proceedings in 
the  World  Bank  Business  Ready  Indicator (110).  A 
OJ 
(law 
new 
A56/11.4.2025)  was adopted in April 2025, which 
is  expected  to  ease  the  insolvency  framework 
including  by  increasing  out-of-court  settlements 
and rehabilitation cases (111). 

5193/2025 

legislation 

Sectoral  dynamics  show  some  structural 
changes  favouring  aggregate  productivity 
but noticeable exceptions persist. In the 2004-
2024  period, 
relative  faster 
industries  with 
productivity growth tended to expand (measured in 
relation  to  total  economy  GVA),  while  those  with 
stagnating  and/or  decreasing  productivity  have 
contracted (112).  Among the former is (K) Financial 
Services  and  (J)  Information  and  Communication; 
among the latter is (F) Construction and especially 
(G)  Wholesale  &  Retail  Trade.  However,  certain 
sectors  seem  to  be  holding  back  an  efficient 
reallocation  of  resources,  particularly  the  sectors 
of Accommodation & Food Services (I), Mining (B), 
Energy (D) and Professional Services (M) (113). (See 
Annex 19). 

Business environment 

to 

Greek  firms  identify  new  regulations  as 
primary  obstacles 
their  activities. 
According to the 2025 EIB Investment survey, 55% 
view  compliance  with  new  regulations,  standards 
or  certifications  as 
to 
international  trade (114).  Between  1980  and  2010, 
Greece  introduced  over  5 000  new  regulations  a 
year. 

the  main  barriers 

Some administrative processes have been or 
are  in  the  process  of  being  digitalised.  The 

(110) B-READY: Business Insolvency: Overall Score - Low income | 

Data. 

(111) See Restructuring & Insolvency Laws and Regulations Report 

2025-2026 Greece. 

(112) European Commission. 

(113) Ritong Qu. Improve Resource Allocation to Boost Growth in 

Greece. IMF Selected Issues Paper (SIP 2025/58). 
Washington DC. International Monetary Fund. 

(109) See about-equifund and Country Report Greece 2025. 

(114) See EIBIS 2025. 

53 

 
 
 
Independent  Authority  for  Public  Revenue  (IAPR) 
the  new  mobile  application 
has  developed 
"myAADEapp,"  providing  citizens  and  businesses 
with digital access to tax services via their mobile 
devices. A new mobile application for smartphones 
and  tablets  has  been  launched  for  business  to 
register in the Digital Customer Registry. The IAPR 
has  also  introduced  a  new  system  that  enables 
businesses 
the 
electronically 
termination of their operations (115). 

declare 

to 

Efforts  to  simplify  regulation  and  reduce 
administrative  burdens  are  underway.  This  is 
highlighted  by  a  project  that  seeks  to  cut 
bureaucracy  by  25%,  via  twelve  legislative  and 
non-legislative  measures  to  simplify  business 
closures,  upgrading  electronic  systems  and 
and 
improving 
technology. 
includes 
interoperability  with  the  General  Commercial 
Registry  to  automatically  update  the  tax  registry 
and  the  functioning  and  updating  of  a  new 
Integrated Taxpayer Service Centre (116). 

for 
initiative 

research 
also 

frameworks 

The 

Access  to  finance  has  improved  but  remains 
insufficient.  Greek  firms  are  three  times  more 
constrained  than  the  EU  average  in  accessing 
finance,  with  SMEs  being  impacted  30%  more 
than large firms. Greece consistently scores below 
the EU average on the Access to Finance index for 
loans from the European Investment Fund (EIF) (cf. 
Annex  6_A_AccFin).  This  is  partly  because  the 
banks  themselves  are  in  a  constrained  position 
with  a  low  liquidity  funding  risk.  However,  their 
situation  is  improving  and  access  to  finance  has 
improved steadily these last years (See Table A5.1 
and Annex 6). 

Greek companies are more challenged by late 
payments.  The  proportion  of  SMEs  experiencing 
late payments from private bodies exceeds the EU 
average  (54%  versus  48%),  and  it  is  higher  for 
SMEs  facing  late  payments  from  public  bodies 
(33%  compared  to  20%).  The  payment  gap  for 
B2B transactions is closer to the EU average, albeit 
slightly higher, while the gap for B2G transactions 
is the largest in the EU (See Table A5.1). Suppliers 
are also indicating that public authorities in Greece 
had the second longest payment periods of all the 
EU  – 73  days  in  2024.  According  to  the  latest 
information by the Greek Ministry of Economy and 

Finance (117),  the  stock  of  arrears  (i.e.  unpaid 
invoices  after  90  days)  at  the  end  of  2025  was 
2.5 billion EUR  of  which  almost  1.4  billion 
concerned  hospitals.  The  information  also  reports 
significant  payment  delays  for  some  ministries 
local  authorities.  The  persistence  and 
and 
pervasiveness  of  the  G2B  payment  delays  may 
hamper the competitiveness of businesses and put 
their viability, especially SMEs, in jeopardy. 

is 

but 

coverage 

Greece continues to roll out fibre for gigabit 
connectivity, 
still 
significantly  lower  than  the  EU  average. 
Greece  is  making  progress  in  deploying  gigabit 
connectivity  infrastructure  with  a  46.1%  VHCN 
coverage  in  2024,  although  challenges  remain:  a 
level  of  VHCN  coverage  that  is  still  below  the  EU 
average  (82.49%),  and  slow  fibre  roll-out  in 
sparsely  populated  areas  (3.26%  in  2024,  while 
the EU average was 61.89%).  

5G  network  coverage  is  close  to  the  2030 
target.  Overall  5G  coverage  stood  at  99.8%  in 
2024,  higher  than  the  EU’s  94.35%.  For  sparsely 
populated  areas,  Greece’s  5G  coverage  was 
99.29% in 2024, significantly higher than the EU’s 
79.57%.  In  the  3.4–3.8 GHz band,  Greece’s  5G 
coverage 
speedy 
deployment of this band, which enables advanced 
applications requiring a wide spectrum bandwidth, 
with  72.94%  coverage  higher  than  the  EU’s 
67.72%. For sparsely populated areas, in this band 
the percentage of coverage with 41.01% in 2024 
is much higher than the EU average at 26.19%. 

in  2024 

confirmed 

the 

of 
The  management  and  monitoring 
telecommunication  network 
infrastructure 
works  have  been  simplified  and  digitalised 
with  the  operationalisation  and  mandatory 
use of e-Dieleysis, the electronic information 
system  designed  to  that  effect.  Its  purpose  is 
to  simplify  and  accelerate  the  licensing  and 
monitoring  processes  for  works  related  to  the 
of 
installation 
telecommunications 
reducing 
bureaucracy and delays. 

infrastructure, 

maintenance 

and 

(115) Greece draft btudgetary plan 2026. 

(116) Greece draft budgetary plan 2026. 

(117) See https://minfin.gov.gr/wp-

content/uploads/2026/02/General-Government-Monthly-
Bulletin-December-2025.pdf. 

54 

 
 
 
Single Market 

Regulatory and administrative barriers to the 
single  market  persist  in  Greece,  affecting 
services  trade  as  well  as  the  freedom  of 
establishment  of businesses.   For  services, the 
level  of  restrictiveness  is  still  high  overall  for 
several  professional  services,  retail  sector  and 
trade  facilitation.  Entry  barriers  are  high  in  the 
professional  services  (118).  In  services,  posting  of 
workers  requires  compliance  with  restrictions 
including  conditions  or  procedures  for 
intra 
corporate  transferees  and  contractual  service 
suppliers.  Entry  and  establishment  costs  are 
increased by changes to tax rules and regulations, 
high  compliance  costs  and  a  generally  restrictive 
business  environment  especially  for  foreign  and 
cross border investors. In addition, businesses face 
complex  administrative  procedures,  with  often 
(permits, 
slow 
approvals) (119). 
investment 
Business 
establishment  is  also  hindered  by  sector-specific 
establishment rules that are more restrictive than 
at EU level in transport and some network sectors. 

administrative 

processes 

Greece ranks low on the 2025 Single Market 
Scoreboard  for  overall  intra-EU  integration 
in trade in goods and services. In 2025, intra-
EU  imports  and  exports  accounted  for  20.9%  of 
Greece’s  GDP.  This  is  one  of  the  lowest  shares  in 
the  EU  and  lower  than  the  2025 EU  average 
of 40.7% (Table A5.1). However, the integration of 
travel  services  is  above  the  EU  average.  81%  of 
Greek  firms  engage  in  international  trade,  well 
above  the  EU  average  of  66% (120).  Greece 
scores  around  the  EU  average  in  Single 
Market transposition and conformity deficits, 
but  its  SOLVIT  resolution  rate  is  still  the 
lowest  in  the  EU  even  if  it  has  improved 
compared  with 
last  year.  Greece  has  a 
transposition  deficit  of  1%  (121)  (close  to  the  EU 

(118) OCDC PMR Greece country note, database of 2023/2024 and 

2018/2019. 

(119) See https://www.eib.org/files/publications/20250218-

091225-econ-eibis-2025-greece-en.pdf.  

(120) See EIB Investment survey 2025. 

(121) Part of the barriers highlighted in the 2025 Single Market 
Strategy (“Terrible 10”), Single market strategy. The 
transposition deficit measures the percentage of all 
directives not transposed into national law. See also the 
Annual Single Market and Competitiveness Report 2026. 

average of 1.1%) and a 0.5% conformity deficit of 
Single  Market  directives  (EU  average  of  1.1%). 
However, Greece faced the fifth-highest number of 
Single  Market  infringement  proceedings  in  2025, 
totalling  35,  significantly  higher  than  the  EU 
average  of  25.  Greece  resolved  53.1%  of  the 
SOLVIT  cases  it  managed  as  the  lead  centre  in 
2025,  whereas  the  EU  average  was  84.6%.  It  is 
the  lowest  score  of  the  EU  Member  States; 
increase 
it  represents  a  significant 
although 
compared to last year. 

The  Greek  SOLVIT  centre  still  had  to  deal 
with  more  than  200  cases  related  to  delays 
with  decisions  on  awarding  pensions  to  EU 
citizens  who  worked 
in  Greece.  Despite 
digitalisation  efforts,  long  waiting  times  to  obtain 
pensions from Greece or to provide information on 
periods  of  contributions 
the 
institutions  of  other  Member  States  remain.  This 
continues  to  represent  a  serious  issue  hindering 
the Single Market. 

in  Greece 

to 

lack  of  digitalisation 

The 
in  the  Greek 
standardisation  system,  hampers  fast  and 
efficient delivery of standards, and limit the 
participation of certain stakeholders, notably 
into  the  standardisation  process. 
SMEs, 
Moreover,  the 
limited  participation  of  Greek 
experts in the European Standardisation System is 
likely  to  deepen  as  the  rise  of  new  technologies 
such  as  AI  and  quantum  call  for  additional 
resources  to  attract  and  retain  expertise  in  such 
critical fields. To address these challenges, Greece 
must  provide  stronger  support  to  its  national 
standardisation body. This will enable faster, more 
inclusive,  and  market-responsive  standardisation, 
ensuring  that  businesses  can  fully  benefit  from 
the  opportunities  of  the  Single  Market.  Rigidity  in 
the standardisation system has been identified as 
one  of  the 
infamous  “Terrible  Ten”  barriers 
clogging the Single Market from its full potential.  

Compliance  of  products  circulating  in  the 
Single Market (122) is key to ensuring a level-
playing  field  for  law-abiding  companies  and 
the safety of consumers. In Greece, the number 
of  market 
has 
increased  compared  with  2019.  In  2025,  national 
authorities  reported  in  the  EU  system  for  market 

investigations 

surveillance 

(122) Part of the barriers highlighted in the Single market 

strategy (‘Terrible Ten’) and the 2026 Annual Single Market 
and Competitiveness Report. 

55 

 
 
 
surveillance (ICSMS) a total of 54.3 investigations 
per one million inhabitants, which is lower than the 
EU  median  of  136.2.  The  number  of  notifications 
remains limited in absolute terms, which may also 
be 
IT  national 
the 
ICSMS  system.  The 
interoperability 
upcoming  revision  of  the  Market  Surveillance 
Regulation  will  upgrade 
fully 
interoperable EU digital platform. 

insufficient 

result  of 

ICSMS 

to  a 

the 

to 

Barriers  remain  high  in  several  product 
markets.  Despite  improvements  since  the  last 
2018 assessment, Greece continues to be  part of 
the top ten most regulating EU countries according 
to  the  2023-2024  OECD’s  indicator  on  product 
market  regulation (123),  with  restrictiveness  above 
average for professional services, the retail sector, 
trade  facilitation  and  the  impact  on  competition 
regulatory  framework.  A  CSR  was  issued  in  2025 
to address these issues (CSR 2025.3 “Review and 
remove  the  high  entry  barriers  to  the  exercise  of 
professional  services  and  to  new  entrants  to 
product  markets”).  Some  measures  in  the  draft 
budgetary  plan  for  2026  aim  to  tackle  these 
challenges  (See  section  on  business  environment 
above.) 

High  entry  barriers 
in  the  professional 
services and retail sector persist. According to 
OECD  PMR,  Greece  has  a  particularly  restrictive 
level  of  regulation  for  lawyers,  architects,  civil 
engineers,  as  well  as  in  retail  distribution.  But  so 
far  no  reform  of  the  above  professions  is  under 
discussion. The over-regulation also affects a new 
electronic  registry  for  EU  tourist  guides.  The 
administrative framework for this profession is to 
be  modernised  and  simplified.  However,  the  plan 
also envisages the regulation of a new profession, 
“tour  leader”.  Restricting  access  to  this  economic 
activity could further curb competition in this field. 
So far, progress in addressing barriers in the field 
of business services remained limited. In response 
to  a  survey  carried  out  by  the  Commission 
between  December  2025  and  February  2026, 
Greece  said  it  had  fully  implemented  2  of  the  8 
Commission  recommendations  from  2021 (124). 
The  Commission  is  currently  assessing  Greece’s 
in 
answer 
implementing  these  recommendations.  Business 

to  measure 

progress 

actual 

organisations  acknowledge  the  efforts  made  by 
governments  over  many  years  to  ease  licensing 
but  argue that Greece’s parallel  efforts  to  reform 
and implement the ex-post controls framework are 
not  equally  successful, 
inherent 
vulnerabilities  and  undermining  the  level-playing 
field.  A  review  and  amendment  of  regulations  on 
the marketing/trade of products and the provision 
of  services  (DIEPPY)  for  the  retail  distribution  of 
goods is currently being undertaken. 

leading 

to 

The  OECD  PMR  points  to  some  shortcomings 
in  the  formulation  of  laws  and  regulations. 
When developing primary laws, regulators are not 
required  to  identify  and  assess  the  “do  nothing 
option”  or  non-regulatory  options.  The  2025  IMF 
study (125)  advocates  that  such  options  should  be 
looked  at  with  a  view 
the 
productivity growth potential of reforms. 

to  optimising 

that 

Despite significant legislative reforms, public 
procurement  in  Greece  still  faces  structural 
challenges 
limit  competition  and 
undermine  transparency.  This  is  embodied  in 
the high number of single bids, the widespread use 
of  lowest  price  as  award  criterion,  and  the  high 
number  of  unsuccessful  or  cancelled  tenders. 
Weaknesses 
the 
complexity of the Greek legal framework for public 
procurement,  lengthy  decision-making  procedures 
in  the  current  e-procurement 
and 
this 
system  are  all  factors  contributing 
phenomenon. 

in  procurement  practices, 

limitations 

to 

A  key  concern  is  the  persistently  high  share 
of  single  bids,  which  points  to  weak 
competitive  dynamics  in  several  sectors. 
Greece recorded the highest  single-bid rate in the 
EU,  reaching  58.2%  in  2025,  which  is  well  above 
the EU median of 27%. Single bids are particularly 
common in high-value contracts. They occur more 
frequently  in  contracts  falling  under  Directive 
2014/25/EU 
than  under  Directive 
2014/24/EU  (classical  public  procurement).  Open 
procedures  show  the  highest  proportion  of  single 
bids,  while  supply  and  service  contracts  are  more 
affected than works contracts. 

(utilities) 

Procurement  practices  continue  to  show 
businesses’ 
weaknesses 

limit 

that 

(123) Product market regulation | OECD. 

(124) European Commission, 2021, Communication on updating 
the reform recommendations for regulation in professional 
services, COM(2021)385. 9/7/2021, Eur-lex.europa.eu.  

(125) Ritong Qu. Improve Resource Allocation to Boost Growth in 

Greece. IMF Selected Issues Paper (SIP 2025/58). 
Washington DC. International Monetary Fund. 

56 

 
 
 
willingness and ability to participate in public 
procurement.  The  use  of  the  lowest-price  award 
criterion  remains  predominant,  being  applied  in 
75%  of  procedures  in  2025  (despite  a  declining 
trend over the last years), compared  with 53% at 
EU  level.  A  strong  focus  on  price  may  discourage 
participation  by  companies  competing  on  quality 
and innovation, reduce the number of bidders, and 
increase the risk of abnormally low tenders. Public 
procurement procedures are also characterised by 
a relatively high rate of unsuccessful or cancelled 
tenders.  In  2025,  contracts  were  not  awarded  in 
23.3% of public procurement procedures. 

building 

capacity 

These  challenges  point  to  the  need  to 
improve 
and 
professionalisation  of  practitioners.  However, 
there  are  systemic  constraints  on  this.  Past 
austerity  measures  limited  recruitment  of  new 
staff,  while  unattractive  salaries  in  the  public 
sector  (compared  to  the  private  sector)  make  it 
difficult to attract and retain staff. Procurement is 
not  a  standalone  profession,  and  skill  levels 
among  civil  servants  vary  widely.  Moreover,  the 
complexity of the Greek legal framework, covering 
all  stages  of  the  procurement  cycle  for  contracts 
above  a  very  low  value,  adds  to  administrative 
difficulties. 

A  slow  judicial  system,  lengthy  decision-
making  procedures  further  undermine  the 
efficiency  and  attractiveness  of  public 
procurement.  On  average,  the  time  between  the 
deadline  for  receipt  of  offers  (or  requests  to 
participate)  and  the  award  of  the  contract 
amounts to 171 days, being one of the highest in 
the  EU.  A  slow  judicial  system  as  well  as  late 
payment  contribute  to  deterring  firms  from 
participating in public procurement. 

Businesses’  views  on  corruption  risks  in 
public  procurement  are  above  the  EU 
average.  In  Greece,  92%  of  companies  (EU 
average: 58%)  consider tailor-made specifications 
for  particular  companies  in  public  procurement 
procedures  to  be  'very'  or  'fairly  widespread' 
practice,  and  88%  (EU  average:  51%)  think  the 
same  about  collusive  bidding.  Among  companies 
that have experience in and participated in a public 
procurement procedure, 48% think that corruption 
has prevented them from winning a public tender 
or  a  public  procurement  contract  in  practice  (EU 

average:  25%  (126).  The  level  of  independence  of 
(Single 
the  public  procurement  review  body 
Independent  Public  Procurement  Authority) 
is 
perceived as ‘very’ or ‘fairly good’ by only 39% of 
businesses  when  reviewing  public  procurement 
cases (127). 

introduce 

procedures, 

procurement 

fragmented 

decentralised 

interoperability  and 

Greece’s 
eProcurement 
landscape  and  data  quality  issues  highlight 
the need for interoperable systems, common 
standards,  and  stronger  data  governance. 
Given  Greece’s 
eProcurement 
service,  with  between  two  to  five  different 
separate  Procurement  services  in  operation (128), 
businesses must use several systems to access all 
public 
creating 
complexity  and  barriers  to  participation  (See 
annex 7). This fragmentation underscores the need 
to 
common 
standards. Greece is also working on developing a 
public  procurement  qualification  service,  which 
shows  whether  a  company  complies  with  the 
necessary exclusion grounds and selection criteria. 
It is important that the country continues this path 
as buyers across the EU still lack digital access to 
evidence,  such  as  tax  registration  or  criminal 
records. Greece does not have a dedicated body in 
charge of monitoring and accessing the uptake of 
public procurement at national level. Therefore, the 
Greek  system  would  benefit  from  a  dedicated 
public  procurement  data  collection  and  analysis 
service  within  the  government,  to  support  data-
driven  oversight  of  the  procurement  lifecycle (129). 
Greece  is  currently  the  only  Member  State,  which 
has  no  direct  connection  to  the  central  portal  for 
European  public  procurement  (TED)  for  publishing 
notices. This means that all buyers must enter the 
notices twice, in their national system and on TED. 
This  reduces  data  quality  and  makes  publication 
on  TED  less  likely.  Greece  aims  to  become  an 
eSender  (sending  notices  to  TED  directly)  in 
September 2026. 

(126) See Flash Eurobarometer 557, p.133. 

(127) See Justice Scoreboard (2025), p. 53; Flash Eurobarometer 

555, p. 39. 

(128) As reported on the eProcurement matrix. 

(129) European Court of Auditors, Special Report 28/2023: Public 
Procurement in the EU. Less competition for contracts 
awarded for works, goods and services in the 10 years up to 
2021, 2023, Special report 28/2023: Public procurement in 
the EU. 

57 

 
 
for 

Strategy 

the  National 

Greece has undertaken numerous reforms to 
strengthen  its  public  procurement  system. 
Under 
Public 
Procurement  2021-2025,  emphasis  has  been 
given  to  professionalisation  of  the  procurement 
workforce in the civil service (also supported under 
RRF). Law 5218/2025 introduced targeted training 
and  a  certification  system  and  financial  and  not-
financial incentives. Greece has introduced several 
codes  of  conduct  for  civil  servants  working  in 
public procurement to ensure a level playing field 
for  businesses (130).  A  code  of  conduct  for  civil 
servants  has  been  adopted.  The  Hellenic 
issued  a  Guide  for 
Competition  Commission 
Contracting 
and 
detection 
on 
Authorities 
prevention  of  collusive  practices 
in  public 
procurement  and  introduced  a  dedicated  digital 
whistleblowing  system  specifically  designed  for 
contracting  authorities  to  report  bid  rigging  in 
public  procurement  procedures (131).  Also,  a  new, 
more  integrated  and  user-friendly  e-procurement 
system  is  currently  under  development  (including 
through  the  RRP)  to  address  the  challenges  and 
accelerate the digitalisation of public procurement. 
Greece  took  measures  to  accelerate  the  judicial 
and  pre-judicial  resolution  of  public  procurement 
disputes  and  to  expedite  the  contract  award 
process: additional staff have been assigned to the 
Single  Independent  Public  Procurement  Authority 
(HSPPA), 
legal  challenges  against 
decisions of the HSPPA have been raised, and the 
suspensive  effect  of  appeals  on  concluding  the 
contract  award  has  been  restricted.  Additionally, 
appeals  related  to  procurement  of  goods  or 
services  are  assigned  to 
instance 
administrative  court  and  appeals  related  to 
procurement  of  public  works  to  administrative 
court of appeal. 

the  first 

fees 

for 

cooperation”  on  unitary 

Greece  remains  outside  the  Unitary  Patent 
(UP) system. Although Greece participated in the 
“enhanced 
patent 
protection  and  has  already  signed  the  Unified 
Patent  Court  Agreement  (UPCA),  it  has  not  yet 
ratified  it (132).  The  unitary  patent  therefore  does 
not  cover  Greece.  This  has  the  two  following 
consequences.  Firstly,  Greek  and  non-Greek 
companies  remain  burdened  by  the  significant 

(130) Rule of Law Report- Country Chapter Greece (2025), p. 11. 

(131) Rule of Law Report- Country Chapter Greece (2025), pp. 11-

12. 

administrative  costs  of  national  validation  and 
maintenance  fees  to  obtain  patent  protection  in 
Greece,  and  that  enforcing  European  patents  in 
Greece.  Secondly,  the  enforcement  of  European 
patents  in  Greece  can  only  take  place  before 
national  courts,  without  benefiting  from  the 
advantages offered by the Unified Patent Court in 
terms  of  centralised  litigation.  With  this,  Greece 
may appear less attractive, in terms of innovation 
support  than  the  Member  States  already  in  that 
system.  Finally,  the  fact  that  several  Member 
States  do  not  participate  in  the  unitary  patent 
system weakens the Single Market, making the EU 
less attractive for inventors and innovative firms. 

Industry and economic security 

Greece  is  taking  measures  to  phase  out 
fossil-fuel  subsidies.  The  2025  CSR  (Sub-part 
CSR 2025.4) calls for concrete steps to phase out 
fossil-fuel  subsidies,  particularly  in  the  industrial 
sector.  The  draft  budget  plan  proposes  certain 
measures  in  this  regard,  such  as  promoting  the 
purchase  of  electric  vehicles,  while  others  involve 
the removal of energy subsidies introduced during 
the COVID era.  

Greece  produces  photovoltaic  panels  and 
participates in some IPCEIS. Between 2019 and 
2024, Greece accounted for 2.6% of the EU's solar 
plate production (133)  The clean technology sector 
is  a  significant  component  of  the  Greek  labour 
market,  employing  around  24 802  workers  in 
2023,  which  represents  0.59%  of  the  total 
workforce.  Additionally,  Greece  is  involved  in  the 
Important  Projects  of  Common  European  Interest 
(IPCEIs) launched for batteries (Eubatin), hydrogen 
(Hy2Tech  and  Hy2Use),  and  microelectronics  and 
communication technologies. 

room  for 

improvement 

in 
Greece  has 
implementing  the  Net-Zero 
Industry  Act 
(NZIA). The country has yet to designate a Single 
Point  of  Contact.  Currently,  Greece  has  not 
confirmed  any  Net-Zero  Strategic  Projects  or 
established  a  communication  and  coordination 
among  national 
to  manage 
applications that could facilitate the advancement 

contact  point 

(133) A solar plate is a photovoltaic panel that converts sunlight 

(132) Agreement on a Unified Patent Court (UPC) - Consilium. 

into electricity using silicon-based solar cells. 

58 

 
 
 
Greece  continues  to  rely  heavily  on  imports 
to  meet  a  large  portion  of  its  demand  for 
raw  materials.  The  country  has  an  import  ratio 
of direct material inputs at 49%, compared to the 
EU average of 22.4%, placing it among the top ten 
EU countries most dependent on material imports. 
In  its  2025  National  Energy  and  Climate  Plan 
(NECP) (134), Greece outlines a roadmap for critical 
raw materials aimed at increasing the exploitation 
of  Greek  mining  sites,  with  the  objective  of 
expanding its mining industry by over 400% in the 
next  6-7  years.  Among  the  47  strategic  projects 
approved  by  the  European  Commission  under  the 
Critical Raw Materials Act (CRMA), one is Greek (135)  

of  these  projects.  Lastly,  Greece  has  not  shown 
interest in the acceleration valleys described in the 
NZIA  regulation.  Greece  is  currently  implementing 
the  TSI  project  ‘ESTER:  National  Plan  for  the 
Implementation of the NZIA – TSI 2025’ in order to 
identify opportunities for the development of Net-
Zero 
Industry  Act  (NZIA)  technologies  in  the 
country, explore financing mechanisms, and review 
the existing legislative framework in relation to the 
requirements of the regulation. 

industries 

Energy-intensive  industries  have  expanded. 
is 
The  share  of  energy-intensive 
substantial,  31%  of  manufacturing  GVA  in  2024, 
which shows volumes consistently increasing since 
2015  (see  graph  A5.1).  There  have  been  shifts  in 
the  share  of  added  value  across  industries,  with 
wood  and  wood-product  manufacturing  having 
decreased  by  two-thirds  in  terms  of  GDP  added 
value between 2000 and 2024, and the production 
of non-metallic mineral products by 83% over the 
same  period.  Manufacturing  of  basic  metals  has 
seen a 20% increase compared to 2000 (rising to 
1% in 2024), chemicals have seen a 29% increase, 
and  rubber  and  plastics  manufacturing  40%.  The 
low  energy  prices, 
combination  of  relatively 
significant 
investment  and  economic 
recovery  may  have  contributed  to  Greece's  ability 
to sustain or increase production in these sectors, 
unlike other EU countries (see Annex 9). 

industry 

Graph A5.1: Manufacturing industry production: 
total and selected sector, index (2021=100), 
2015-2024 

Source: Eurostat 

(134) Greece - Final updated NECP 2021-2030 (submitted in 

2025) - European Commission. 

(135) See Greek country report 2025. 

59 

7080901001101201302015201620172018201920202021202220232024ManufacturingManufacture of wood and of products of wood and cork, except furniture;manufacture of articles of straw and plaiting materialsManufacture of paper and paper productsManufacture of chemicals and chemical productsManufacture of rubber and plastic productsManufacture of other non-metallic mineral productsManufacture of basic metals 
        
 
Table A5.1:  Single Market and Industry 

Source: (1) Eurostat, (2) EIB Investment Survey, (3) EIF SME Access to Finance Index, (4) Intrum Payment Report, (5) SAFE survey, 
(6) OECD, (7) data up to 2024: Single Market and Competitiveness Scoreboard, 2025: Commission calculation based on TED data, 
accessible at the Public Procurement Data Space (PPDS) (*) the value represented here under EU average is the median, (8) Single 
Market and Competitiveness Scoreboard, (9) European Commission calculations.  

60 

POLICY AREA20212022202320242025EU-27 average53.854.154.854.454.6100.07.78.88.48.5-12.63.63.73.93.7-3.9Business environment and simplification58.451.942.953.952.034.00.130.220.310.36-0.430.090.110.220.25-0.1912.813.014.815.117.817.411.913.012.818.915.913.6from private entities in the previous or current quarter---53.847.047.1from public entities in the previous or current quarter---32.725.615.919.923.622.021.120.940.70.0500.0500.0490.0490.0490.0504046495558271111161.80.40.30.5111.51.30.90.50.61.115.3544.15926.353.184.64645444135250.18360.34090.18810.18150.20130.146240.839.939.9--32.722.022.725.325.4-25.240.640.139.842.0-22.45.36.35.25.2-12.2GreeceINDICATOR NAMEBusiness environment and investmentProductivity and investmentLabour productivity (GDP per hour worked in PPP terms), % of EU271Business investment (share of GDP)1Public investment (share of GDP)1Impact of regulation on long-term investment, % of firms reporting business regulation as a major obstacle2SME liquidityEIF Access to Finance for SMEs index - loans3EIF Access to Finance for SMEs index - equity3Late paymentsPayment gap - corporates B2B, difference in days between offered and actual payment4Payment gap - public sector, difference in days between offered and actual payment4Share of SMEs experiencing late payments, %5Industry and economic securitySingle Market IntegrationEU trade integration, average(intra-EU imports + intra EU exports)/GDP, %1EEA Services Trade Restrictiveness index6Public procurementSingle bids, % of total contractors7*Direct awards, % of negotiated procedures7*ComplianceTransposition deficit, % of all directives not transposed8Conformity deficit, % of all directives transposed incorrectly8SOLVIT, resolution rate per country, %8Number of pending infringement proceedings8Energy-intensive industriesElectricity prices for non-household consumers1Electrification (electricity as a share of total energy consumption in industry)1Share of energy from renewable sources (renewable energy generation as a share of overall energy consumption)1Critical raw materialsMaterial import dependency, %1Circular material use rate1Operational cleantech manufacturing capacity in 20259 - Solar PV (c: cell, w: wafer, M:module), GW- - Electrolyzer, GW- - Heat pump assembly - - Battery, GW4.0 
 
       
 
ANNEX 6: SAVINGS, INVESTMENT AND ACCESS TO FINANCE 

Table A6.1:  Savings and Investments Union summary diagnostic 

Source: OECD (pensions), Eurostat (households' financial wealth), FISMA CMU dashboard (VC and PE), national sources (capital 
taxation). 

Greece  ranks  relatively  low  across  the  key 
indicators  monitoring  progress  with  the 
policy  goals  of  the  Savings  and  Investment 
Union (see Table A6.1). Companies in Greece rely 
mainly  on  internal  financing  for  investments,  and 
bank  funding  represents  the  largest  source  of 
external  financing.  The  Greek  financial  sector  is 
mainly bank-driven. There is room for a bigger role 
by  capital  markets  and  institutional  investors  in 
providing  finance  to  the  Greek  economy.  There  is 
scope  to  increase  retail  investors’  participation  in 
financial  markets.  In  2025,  Greek  banks  have 
continued  to  improve  their  fundamentals.  The 
2025 CSRs for Greece called on the country to: (i) 
pursue the ongoing reduction of the stock of non-
performing 
loans  held  by  banks  and  credit 
servicers;  and  (ii)  facilitate  access  to  finance  for 
start-ups and scale-ups. Some reforms addressing 
these  2025  CSRs  have  been 
elements  of 
implemented, but further progress is needed. 

Business landscape and company 
funding 

Greek  companies  finance  a  large  share  of 
their  investments  internally.  According  to  the 
2025  EIB  Investment  Survey (136),  73%  of  Greek 
companies’  investment  needs  are  met  through 
internal funding, compared with an EU average of 
66%.  The  business  landscape  is  dominated  by 
SMEs  and  microenterprises  in  particular  (See 

(136) EIB Investment Survey 2025: Greece overview. 

Annex  5  for  more  details).  This  structure  has 
significant  implications  for  corporate  financing 
patterns,  as  external  funding  tends  to  be  more 
costly  and  less  accessible  for  smaller  firms, 
increasing their reliance on internal finance. 

Greek  companies  rely  more  heavily  on  bank 
funding  and  less  on  capital  markets  than 
their EU peers. At the end of 2024, bank finance 
through  loans  accounted  for  37.0%  of  total 
funding  for  Greek  non-financial  corporations 
(NFCs), while listed shares and bonds represented 
only  15.7%  (Graph  A6.1).  By  comparison,  the 
corresponding  EU  averages  stood  at  26.9%  and 
18.8%,  respectively.  Overall  levels  of  funding  for 
NFCs  in  Greece  (equivalent  to  142.6%  of  GDP) 
remain  significantly  lower  than  the  EU  average 
(226.2%  of  GDP).  Moreover,  a  sizeable  proportion 
of  Greek  NFCs  have  non-performing  loans  (NPLs) 
and are effectively excluded from capital markets. 
credit  servicers  held 
In  September  2025, 
EUR 28.2 billion  of  NPLs 
in  NFCs.  A  2024 
study (137)  found  a  strong  positive  correlation 
between  NPLs  and  the  prevalence  of  ‘zombie’ 
companies in the Greek economy,  and highlighted 
that 
in  such 
companies both indirectly prevents the reallocation 
of  capital  to  more  productive  uses  and  hinders 
investment by healthy companies. 

the  concentration  of  capital 

(137) The prolonged presence of ‘zombie’ companies has spillover 
effects on healthy companies in the sector, damaging 
healthy competition. 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). 

61 

GreeceMain featuresRelative EU positioningAssets at 1.1% of GDP (32.3% in the EU)10-year real return of 2.1 (1.4% in the EU)Very low pension assets yielding real return above average.EUR 33 003 per capita (EUR 85 090 in the EU)o/w 7.2% in listed shares and bonds (7.6% in the EU)o/w 6.3% in investment funds (11.0% in the EU)o/w 3.5% in life insurance (13.4% in the EU)o/w 1.5% in  pension claims (13.6% in the EU)Low household wealth. Half of wealth held in currency and deposits and significant allocation to unlisted shares. Almost no allocation to pension funds. Greece has no dedicated savings & investment account.VC at 0.017% of GDP (0.064% in the EU)PE at 0.121% of GDP (0.487% in the EU)Low venture capital and low equity investments.No capital gains on UCITS or shares (if >0.5% ownership, then 15%), tax on dividends of 5%.Financial transacation tax 0.1% when selling shares on Greek stock exchange.Very low level of taxation for retail investors.1-34-1011-1718-2425-27Colours indicate the country's relative ranking based on five groups, ranging from the three best to the three worst performers. The relative ranking as regards an SIU diagnostic topic derives from a consistent cross-country comparison, the starting point of which is the average of the underlying main features.TopicAsset-backed pension schemesHouseholds' financial assetsVenture capital (VC)Private equity (PE)Capital taxation 
 
 
 
 
 
 
 
  
 
below  the  EU  average  of  70%.  The  market  was 
demoted  in  2012  from  MSCI  developed  market 
status to emerging market status and is still in this 
category.  However,  Greece  is  likely  to  return  to 
developed  market  status  in  2026  for  the  MSCI, 
Stoxx  and  FTSE  Russell  indices.  On  the  positive 
side,  average  daily  turnover  on  the  Athens  Stock 
Exchange  increased  in  2025  by  56.6%.  However, 
trading  is  highly  concentrated,  with  the  banking 
sector stocks accounting for 57% of that turnover. 
In  November  2025,  Euronext  acquired  a  majority 
stake in the Athens Stock Exchange (including the 
subsidiaries  offering  clearing  and  depository 
services),  and  this  is  expected  to  result  in  the 
integration  of  the  Greek  stock  market 
into 
Euronext’s  pan-European  infrastructure.  However, 
the  associated  benefits  in  terms  of  efficiency 
gains  and  cost  savings  will  still  be  limited  by  the 
fact  that  Euronext  operates  through  separate 
entities in each of the eight countries where it has 
a major stock exchange (138). 

The  Greek  bond  market  remains  largely 
underutilised  by  domestic  firms,  as  debt-
market  financing  remains  a  minor  source  of 
funding.  Apart  from  government  issuances,  bond 
market activity is primarily driven by banks, largely 
to  meet  their  MREL  (minimum  requirement  for 
own  funds  and  eligible  liabilities)  requirements. 
Issuances  of  debt  securities  by  non-financial 
corporations  are  rare.  In  the  past,  this  was 
explained by the lack of market demand for Greek 
corporate  debt,  which  has  recently  started  to 
change. 

Graph A6.1: Composition of non-financial 
corporations funding 

Source: Eurostat. End-2024. 

Size and structure of the financial 
sector 

financial 

intermediation 

Greece’s  relatively  small  financial  system 
remains  overwhelmingly  bank-centric,  with 
non-bank 
still 
underdeveloped.  In  2024,  Greek  banking  sector 
assets  were  equivalent  to  135.7%  of  GDP  (EU 
average: 245.3%), far exceeding any other part of 
the domestic financial system. The sector is highly 
concentrated, with four large banks holding around 
95%  of  total  assets.  Domestic  banks  have  a 
sizeable  presence  abroad  in  Cyprus  and  Bulgaria. 
Foreign banks in Greece control only about 2% of 
the  sector’s  assets.  Insurance  corporations  held 
assets equivalent to 9.0% of GDP (well below the 
EU average of 53.3%), while investment funds had 
assets equivalent to 8.6% of GDP, pointing to the 
relatively limited role of institutional investors and 
further 
indicating 
development.  The  Greek  pension  fund  sector  is 
particularly  small,  with  assets  amounting  to  only 
1.1% of GDP, well below the EU average of 32.3% 
(Graph A6.2). 

significant 

scope 

for 

The  Greek  capital market  is underdeveloped, 
and  has  been  recovering  since  the  Greek 
sovereign-debt  crisis.  Sources  of  alternative 
non-bank  financing  remain  limited.  The  market-
funding  ratio  has 
improved  since  2018  but 
remains  at  low  levels,  reaching  28.8%  in  2024, 
significantly  lower  than  the  EU  average  (49.7%, 
Table  A6.2).  Similarly,  stock  market  capitalisation 
has increased, rising from 17.5% of GDP in 2018 
to 40.9% of GDP in Q3-2025, but it remains well 

62 

(138) The Euronext group operates: (i) trading venues in France, 
Italy, Belgium, Ireland, Portugal and Norway; (ii) central 
securities depositaries in Italy, Denmark and Norway; and (iii) 
a central clearing counterparty in Italy. 

050100150200250GREU% of GDPLoansTrade credit and advancesBondsListed sharesUnlisted sharesOther equity 
   
 
Graph A6.2: Capital markets and financial 
intermediaries 

Source: ECB, EIOPA, AMECO. End-2024. 

Households’ participation in capital 
markets 

and 

these 

invest 

Greek households own fewer financial assets 
– 
assets  more 
conservatively – than households in other EU 
Member States, both in absolute and relative 
terms.  As  of  end-2024,  an  average  Greek 
household  held  less  than  half  of  the  financial 
assets  of  an  average  household  in  the  EU  in 
absolute terms (Graph A6.3). Total financial assets 
held  by  households  represented  the  equivalent  of 
145%  of  GDP,  versus  an  EU  average  of  212%. 
Greek  households  hold  50.4%  of  their  financial 
assets  in  cash  and  deposits  (well  above  the  EU 
average  of  31.6%),  with  very  limited  investments 
in  intermediated  and  diversified  instruments.  This 
outcome  reflects  a  conservative  approach  to 
managing  wealth,  with  a  strong  preference  for 
safer  and  more  liquid  assets.  Insurance  products 
and  pension  funds  accounted  for  only  5.8%  of 
their assets (well below the EU average of 27.8%) 
investment  funds  for  6.3%  (vs  11.1%), 
and 
pointing 
capital-market 
significant 
intermediation gap.  

to 

a 

There is some scope to increase the level of 
retail participation in Greek capital markets. 
There is a sufficient variety of investment products 
available  in  the  Greek  market  for  retail  investors. 
However,  only  a  small  share  of  the  population 
shows an interest in investing in financial products. 
This  is  mainly  due  to  the  strong  impact  of  the 
sovereign-debt  crisis,  which  saw  many  retail 

63 

levels  of  disposable 

investors suffer large losses. Other factors limiting 
greater retail participation in financial markets are 
low 
income,  a  general 
aversion  to  risk,  and  a  strong  preference  for  real 
estate  ownership.  The  Greek  tax  environment  is 
generally  supportive  of  long-term  investments, 
and  the  treatment  of  some  financial  products  is 
very  favourable.  For  example,  there  is  no  capital 
gains  tax  on  EU-domiciled  UCITS,  and  only  5% 
withholding tax on dividends. This may explain why 
Greece currently does not have a targeted savings 
and  investment  account  similar  to  the  instrument 
recommended by the European Commission (139). 

Financial literacy in Greece is close to the EU 
average,  and  the  Greek  government  has 
developed  plans  to  improve  it  further.  Over 
the  past  decade,  Greece  has  made  substantial 
progress  in  financial  inclusion.  Greece’s  overall 
financial-literacy indicator of 45 is close to the EU 
average score of 45.5 (140). According to OECD, the 
financial  literacy  score  is  in  line  with  the  average 
of the 19 EU member countries. However, on some 
key  indicators,  such  as  the  percentage  of  Greeks 
with  a  bank  account  and  the  share  of  adults 
holding  pensions  or  investment  products,  Greece 
ranks  below  its  European  Union  peers (141).  The 
Greek  authorities  have  adopted  a  national 
financial-literacy  strategy (142)  and  started  to 
implement targeted initiatives in this area. 

(139) Tax-advantaged  savings  and 

investment  account  as 
proposed  in  the  Commission’s  SWD  on  increasing  the 
availability  of  savings  and 
investment  accounts  with 
simplified and advantageous tax treatment. 

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

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

(141) OECD (2024), Evidence on financial literacy of adults and 

young people in Greece. 

(142) National Financial Literacy Strategy for Greece | OECD. 

Non-financial corporationsFinancial corporationsNon-financial corporationsMFIsInsurance  and pension fundsOther financialsGovernmentMFIs​Insurance corporationsInvestment funds020406080100120140160   Listed equity               Bonds                        Assets by sector% of GDP 
     
 
Graph A6.3: Composition of households' financial 
assets 

Source: Eurostat. End-2024. 

The banking sector: resilience and 
financing of the economy 

Greek banks have continued to improve their 
fundamentals  and  remain  well  positioned  to 
provide  funding  to  the  economy,  despite 
some  remaining  legacy  challenges.  Driven  by 
solid  profit  generation,  the  capital  adequacy  of 
Greek banks improved further in 2025. The return 
on  equity  ratio  stood  at  12.3%  in  Q3-2025,  well 
above  the  EU  average  of  9.6%  (see  Table  A6.2). 
The  common  equity  tier  1  (CET1)  ratio  reached 
15.9% in Q3-2025 (EU average: 16.8%), of which 
[44.6]%  consisted  of  deferred  tax  credits.  Banks’ 
strong, 
also 
liquidity 
underpinned  by  bond 
issuances  and  deposit 
accumulation.  Asset  quality  continued  to  improve, 
with  the  NPL  ratio  of  Greek  banks  declining  to 
2.8% in Q3-2025, still well above the EU average 
of  1.9% (143).  The  results  of  the  2025  EU-wide 
stress  test (144)  confirmed  the  resilience  of  Greek 
banks.  In  October  2025,  the  Bank  of  Greece 
increased the countercyclical capital buffer rate to 
0.5%,  with  the  measure  taking  effect  in  October 
2026. 

remained 

positions 

(143) Over the past seven years, major Greek banks have 

substantially reduced their stock of NPLs, largely due to a 
state-sponsored securitisation programme known as the 
Hellenic Asset Protection Scheme (HAPS). Under HAPS, banks 
securitised NPLs and transferred them to credit servicers. 

Credit  growth  to  Greek  NFCs  was  robust  in 
2025,  while  lending  to  households  turned 
positive. Credit  to  the  corporate  sector  remained 
strong in 2025, expanding by 16.6% year-on-year 
in the third quarter of 2025, supported by both co-
financing  under  the  Loan  Facility  (the  largest 
measure in the Greek recovery and resilience plan), 
guarantee 
co-financing 
as  well 
development 
provided 
programmes 
organisations.  Lending  to  households,  which  had 
been  contracting  for  16  consecutive  years, 
recorded  a  modest  expansion  in  2025,  driven  by 
growth  in  consumer  credit  and  a  subsidised 
housing loan programme. 

and 

by 

as 

Role of non-bank financial 
intermediaries 

relatively 

The 
small  asset  base  of 
institutional  investors  in  Greece  constrains 
their  capacity  to  finance  the  economy.  In 
Q3 2025,  total  assets  of  the  insurance  sector 
amounted to just 8.8% of GDP, well below the EU 
average  of  53.9%.  The  Greek insurance  market  is 
largely  driven  by  compulsory  insurance  products, 
either required by law or imposed by lenders as a 
condition  for  asset  financing. 
life 
insurance products (including group pension funds) 
accounted for only about 47% of total premiums, 
underscoring  the  limited  penetration  of  long-term 
savings instruments.  

In  2024, 

insurance  sector  nonetheless  has 
The 
substantial  growth  potential.  According  to 
EIOPA’s  2024  dashboard,  Greece,  alongside  Italy, 
has  one  of  the  largest  insurance-protection  gaps 
for  natural  catastrophes (145).  Addressing 
the 
protection  gap  would  not  only  be  warranted  for 
social  and  fiscal  reasons.  By  increasing  the  asset 
base of the insurance sector, it would increase the 
sector’s scope to fund the economy. Owing to their 
small  asset  base  and  the  low  share  of  long-term 
insurance  products,  insurance  corporations’  direct 
contribution  to  financing  the  Greek  private  sector 
currently  remains  very  limited.  Based  on  EIOPA 
2024  data,  Greek 
insurers’  portfolios  were 
concentrated  in  government  bonds  (37%)  and 
investment  funds  (34%)  with  smaller  allocations 

(145)EIOPA, 2024. Dashboard on Insurance Protection for Natural 

(144) EBA 2025 EU-wide stress test.  

Catastrophes in a Nutshell. 

64 

050100150200250020406080100GREUGREUper capita (000 EUR) (lhs)% of GDP (rhs)Currency and depositsInsurance and pension fundsInvestment fundsBondsListed sharesUnlisted sharesOther equityHH Debt (liability) 
     
 
 
to  corporate  bonds  (15%),  equity  (5%)  and  other 
assets (8%).  

Venture capital ecosystem 

The  Greek  venture  and  growth  capital 
ecosystem  continues  to  lag  European  peers. 
Venture  capital  investments  in  Greece  averaged 
0.017%  of  GDP  over  2022-2024,  well  below  the 
EU  average  of  0.064% (146).  Similarly,  private 
equity  (PE)  investments averaged 0.121% of GDP 
during  the  same  period,  compared  with  the  EU 
average  of  0.487%  (147)(148).  Nevertheless,  Greek 
firms are able to access finance at initial stages of 
their  development.  State-sponsored  initiatives  are 
playing  a  significant  role  in  mobilising  investment 
for  start-ups  via  EquiFund (149)  and  its  successor 
programmes.  Equifund  operates  as  a  fund-of-
funds  programme 
through  a  public-private 
partnership  between  the  Greek  government  and 
the  European  Investment  Fund.  In  addition,  the 
recovery  and  resilience  plan  Loan  Facility  is 
supporting  financing  schemes  to  scale  up  Greek 
businesses (see Annex 4). 

by 

had 

schemes  managed 

The private pension sector in Greece remains 
underdeveloped.  The  Greek  pension  system  is 
dominated  by  the  first  pillar  (EFKA).  Second  pillar 
supplementary  pensions  are  accumulated  either 
through  occupational  pension  funds  (institutions 
for  occupational  retirement  provision)  or  group 
pension 
insurance 
undertakings  (private  savings  plans  offered  on  a 
voluntary  basis  based  on  defined  contributions). 
Coverage  of  the  working  population  under  these 
schemes  remains  limited.  In  2024,  27  sector-
institutions  for  occupational  retirement 
based 
provision 
holding 
56 503  members 
EUR 485 m  in  assets,  while  approximately  1 200 
group  pension  schemes  held  an  additional 
EUR 2 billion  worth  of  assets.  Assets  were 
(45%)  and 
concentrated  on  debt  securities 
legislative 
investment 
changes  have  equalised  the  tax  treatment  of  the 
of 
two 
for 
schemes 
types 
retirement  provision  and  group 
occupational 
reasonably 
pension  schemes),  maintaining  a 
for  participants. 
favourable 
Nevertheless,  asset  accumulation  within 
the 
system 
remains  constrained,  and  stands  at 
8 600 EUR  per  capita  on  average.  Furthermore, 
participation 
funds 
depends  entirely  on  whether  the  sector  someone 
works  in  has  such  a  scheme.  If  an  employee 
changes  to  another  employer  in  different  sector, 
contributions 
cannot  be 
stop,  and  assets 
transferred. 

in  occupational  pension 

(36%).  Recent 

(institutions 

framework 

funds 

tax 

Investment  funds 
in  Greece  have  been 
growing rapidly, albeit from a very low base. 
Mutual fund assets reached EUR 29 billion at end-
in  2022.  This 
2025,  up  from  EUR 11 billion 
accelerated growth was driven mainly by a partial 
reallocation  of  household  savings  from  bank 
deposits  and  term  accounts  toward  investment 
products  searching  for  higher  yields.  The  sector 
remains  highly  concentrated,  with  four  mutual 
fund  management  companies  affiliated  with  the 
four  largest  banks  accounting  for  83.8%  of  total 
mutual  fund  assets  at  end-2025.  Despite  this 
expansion,  the  overall  size  of  the  sector  remains 
modest.  In  Q3  2025,  the  total  assets  of  all 
investment funds amounted  to 9.9% of GDP, well 
below the euro area average of 132.6%. 

(146) European Commission, 2025, Overview of CMU Indicators, 

16. 

(147) European Commission, 2025, Overview of CMU Indicators, 

11. 

(148) Differences  in  VC/PE  indicators  across  annexes  reflect  the 
use  of  distinct  data  sources.  Annex  6  uses  CMU  Dashboard 
data  for  consistency  across  CMU  indicators,  while  Annex  4 
uses 
InvestEurope  data,  which  are  disaggregated  by 
investment stage. Variations in reported figures are therefore 
due to underlying source definitions. 

(149) Website equifund.gr. 

65 

 
 
Table A6.2:  Financial sector indicators 

(1) Annualised data. EU data for credit growth and pension funds refer to the EA average. 
Source: ECB, Eurostat, European Insurance and Occupational Pensions Authority, DG FISMA CMU dashboard, AMECO. 

66 

20182019202020212022202320242025-Q3EUTotal assets of MFIs, % of GDP162.0167.2200.6177.9158.2141.1135.7133.5246.1Common equity Tier 1 ratio15.316.215.013.614.415.515.915.916.8Total capital adequacy ratio16.017.316.716.217.418.819.720.120.2Overall NPL ratio, % of all loans41.635.526.58.66.25.03.02.81.9NPL ratio, loans to NFCs46.138.231.015.29.37.03.02.73.5NPL ratio, loans to HHs46.543.537.412.011.18.36.96.72.1Return on equity ratio1-0.40.7-7.9-20.112.712.011.712.39.6Loans to NFCs, % of GDP42.236.339.631.230.529.630.931.429.3Loans to HHs, % of GDP48.343.140.825.620.818.516.515.343.6NFC credit growth rate, %0.31.810.23.212.06.013.816.62.5HH credit growth rate, %-2.2-2.7-2.0-2.1-2.3-1.9-0.41.22.6Stock market capitalisation, % of GDP17.524.523.426.925.131.433.540.969.9Initial public offerings, % of GDP0.000.000.000.000.180.000.00-0.06Market funding ratio23.225.625.932.130.229.528.76-49.7Private equity, % of GDP0.0400.0510.0700.1920.2030.2300.121-0.487Venture capital, % of GDP0.0090.0120.0140.0200.0260.0260.017-0.064Financial literacy, composite index-----45.0--45.5Bonds, % of HHs' financial assets1.31.31.21.41.62.83.1-2.8Listed shares, % of HHs' financial assets2.52.92.93.43.24.14.1-4.8Investment funds, % of HHs' financial assets2.72.92.93.73.24.56.3-11.0Insurance/pension funds, % of HHs' financial assets6.36.46.86.55.85.85.8-27.8Total assets of insurers, % of GDP9.410.211.911.29.09.19.08.853.9Pension assets, bn EUR---1.81.82.22.7-5813.8Pension assets, % of GDP---1.00.91.01.1-32.310y real return average of pension assets, %-----2.42.1-1.4Pension funds assets, ECB (% of GDP)-0.91.01.00.91.01.11.123.01-34-1011-1718-2425-27Colours indicate performance ranking among the 27 EU Member States.Banking sectorNon-banking sector 
 
     
 
ANNEX 7: EFFECTIVE INSTITUTIONAL FRAMEWORK 

institutional  framework 

An  effective 
is 
essential  for  competitiveness.  This  requires 
public  trust  built  on  integrity,  quality  legislation, 
regulatory  simplification  and  efficient  services  for 
people  and  businesses.  For  Greece,  the  2025 
(CSRs) 
country 
the 
highlighted 
effectiveness 
public 
administration, focusing on the implementation of 
a multi-level governance framework and the need 
to 
the 
administrative burden.  

recommendations 

concerning 

challenges 

regulation 

efficiency 

simplify 

specific 

reduce 

and 

and 

of 

Public trust 

Graph A7.1: Trust in the justice system, regional / 
local authorities and in government 

(1) EU-27 since 2019; EU-28 before 
Source: European Commission, Standard Eurobarometer 
surveys 

Trust  in  public  institutions  is  below  the  EU 
average. Trust in central government and regional 
and  local  authorities  is  at  the  lowest  levels 
amongst  the  Member  States,  and  trust  in  the 
judiciary has declined markedly since 2017 (Graph 
A7.1).  The  latter  may  be  explained  by  the  slow 
disposition  time  in  administrative  and  civil  courts 
(see  ‘justice’  below).  However,  businesses  (45%) 
and  citizens  (35%)  firmly  believe  that  the  public 
administration  protect  their  data,  a  level  of  trust 
above  the  EU  average  (34%  for  businesses  and 
24% for citizens). 

Quality of lawmaking and 
implementation 

for  primary 

Greece uses only limited tools to monitor the 
quality  of  legislation  (Table  A7.1).  Regulatory 
impact  assessments  (RIAs)  have  been  carried  out 
legislation  since 
systematically 
2019 (150),  but  the  quantitative  analysis  focuses 
only  on  fiscal  aspects.  The  impact  on  people, 
business  and  innovation  are  not  assessed  on  the 
basis  of  quantitative  data.  A  requirement  for  the 
ex  post  evaluation  of 
legislation  has  been 
adopted (151)  but  has  yet  to  be  implemented (152). 
Following  up  on  recommendations  to  enhance 
evidence-informed  policymaking,  developed  under 
the  Technical  Support  Instrument,  a  new  unit  on 
documentation  and  statistics  will  support  the 
general  secretariat for coordination in the  ex post 
assessment of public policies (153). 

lawmaking 

Greece's 
rules  demonstrate 
limited alignment with best practice in terms 
of  reducing  regulatory burdens and  ensuring 
effective  implementation 
(Table  A7.1).  For 
instance,  the  government 
is  not  required  to 
consider  alternative  non-legislative  options  when 
developing  new  primary  laws,  thereby  missing  an 
opportunity to help simplify legislation and reduce 
unnecessary  legislation,  while  maintaining  policy 
objectives. 

A number of factors undermine the ability to 
monitor  the  implementation  of  legislation. 
The  government  is  not  obliged  to  i) draw  up  a 
procedure 
towards 
for  measuring  progress 
achieving  a  primary  law's  objectives,  ii) identify 
potential  enforcement  mechanisms,  or  iii) assess 
the  level  of  compliance  when  developing  new 
primary 
legislation.  The  oversight  of  better 
regulation  tools  is  hindered  by  i) the  lack  of 
publicly 
the 
effectiveness  of  RIAs  in  amending  regulatory 
proposals, 
ineffectiveness  of  ex  post 
evaluations  in  improving  the  regulatory  stock  and 

assessments 

available 

ii) the 

of 

(150) Law 4622/2019, OJ A 133/07.08.2019. 

(151) Law 4622/2019, OJ A 133/07.08.2019. 

(152) OECD, 2025, Regulatory Policy Outlook 2025, OECD 

Publishing, Paris, https://doi.org/10.1787/56b60e39-en. 

(153) Presidential Decree 1/2026, OJ A 2/9.1.2026 

67 

00.10.20.30.40.50.60.70.80.9AutumnSpringAutumnSpringAutumnSpringWinterSummerWinterSpringWinterSummerAutumnSpringAutumnSpringAutumnSpring202520242023202220212020201920182017Justice,  legal system EU-27Justice,  legal system ELRegional or local public authorities EU-27Regional or local public authorities ELGovernment  EU-27Government  EL 
 
       
 
 
 
Table A7.1:  Greece. Selected indicators on better regulation practices for primary legislation 

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

iii) the  absence  of  an  external  body  to  review  the 
quality of ex post evaluations of legislation. 

Furthermore,  the  quality  of  legislation  is 
stymied  by  a  number  of  obstacles.  These 
include i) the short  time for adoption (154), ii) fast-
changing  legislation (155),  iii) the  incorporation  of 
last-minute  amendments  and  iv) the  addition  of 
topics  unrelated  to  the  subject  matter  of  draft 
legislation.  Such  factors  undermine  business 
certainty  and  confidence  in  effective  investment 
protection (156). 

and 

process 

Progress  has  been  made  in  digitalising  the 
lawmaking 
consolidating 
legislation.  The  general  secretariat  for  legal  and 
parliamentary  affairs,  a  government  body 
responsible for better regulation, has standardised 
processes  and  workflows  for  lawmaking  in  the 
presidency  of  the  government  and  the  ministries. 
This  will  be  achieved  by  means  of  manuals  on 
drafting  legislation,  impact  assessments  and  a 
manual  on  legal  codification (157).  New  tools  to 
increase  efficiency  and  transparency  include  the 
digitalisation of the drafting of legislation, a digital 
platform  for  drafting  RIAs  and  the  launch  of  a 
public  consultation  platform  for  direct  interaction 

(154) Own calculations, based on national parliaments websites. 

(155) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services. 

(156) European Commission, 2025, Rule of Law Report, pag. 16,17. 

(157) Hellenic Parliament, 2026, Principles and Tools for Good 

Regulation. 

68 

with  ministries.  Attempts  are  ongoing  to  enhance 
legal  certainty  through  codification,  including  on 
taxation  matters  under 
the  Recovery  and 
Resilience  Facility,  in  response  to  the  CSR  on 
reducing the administrative burden. 

Greece  adοpted  a  legislative  framework  on 
multi-level governance in 2023, but this has 
not  yet  fully  come  into  force.  The  distribution 
of responsibilities across levels of government will 
be further clarified in the code of local authorities, 
to be voted on in spring 2026. In addition, Greece 
is  planning  to  integrate  AI  functions  into  its 
dedicated  information  system,  which  will  enable 
the  automatic 
identification,  definition  and 
registration of the new responsibilities assigned to 
public sector entities. Once multi-level governance 
is fully operational. some sectors with overlapping 
responsibilities,  such  as  civil  protection  and  water 
management,  are  expected  to  be  streamlined, 
thereby strengthening accountability. 

Public service delivery and 
digitalisation 

shown 

progress 

towards 
Greece  has 
digitalisation of its public services  but faces 
challenges  in  the  area  of  user  friendliness. 
Only  40%  of  people  and  32%  of  companies  are 
satisfied  with  public-administration  services  (EU 
45%  and  42% 
respectively).  Citizens  are 
concerned  with  the  time  it  takes  to  receive  a 
response (47%), identifying the correct service and 

Tools for smart legislation: Share of possible impacts assessed for all primary laws when developing legislation 1Regulators are required to identify and quantify the benefits of a new primary law0Regulators are required to identify and assess the impacts of alternative non-regulatory options0Tools for effective implementation: when developing laws, regulators are required to:Assess the level of compliance0Identify and assess potential enforcement mechanisms0Specify the methodology of measuring progress in achieving the law's goals0Oversight of better regulation: There is an external  body responsible for reviewing the quality of RIAs and of ex post evacuations 1There are publicly available assessments of the effectiveness of RIA in modifying regulatory proposals 0There are reports on the level of compliance by government department with the requirements of RIA1There are indicators on the percentage of ex post evaluations that comply with guidelines0The effectiveness of ex post evaluations in improving the regulatory stock has been assessed in the last five years0 
 
 
        
 
(37%) 

gathering  documents 
(Graph  A7.2). 
Businesses report difficulties when interacting with 
public administration in the areas of licensing and 
permits  (39%),  regulation  of  employment  (38%) 
and tax compliance (37%). Such challenges create 
additional operational costs for companies (Greece 
55%, EU 30%) and are perceived as an obstacle to 
expanding to new markets (Greece 25%, EU 14%). 

Graph A7.2: Most time-consuming aspects of 
service delivery 

Source: European Commission. Flash Eurobarometer 567 / 
568 on satisfaction with administrative services (2026) 

remains  slightly  behind  Digital 
Greece 
Decade  targets  as  regards  offering  digital 
public  services  to  people  and  to  companies 
(Table A7.2).  The  availability  of  electronic  health 
records  has  also  stagnated.  The  rate  of  digital-
service  use  in  Greece  is  slightly  above  the  EU 
average. 
In  2025,  80%  of  people  used  e-
government  services  (EU  average  76%) (158).  Both 
people and business find that digital services save 
time and effort. People would find digital services 
more  attractive  if  they  were  designed  in  a  more 
user-friendly  way  (78%)  and  had  step-by-step 
guidance (76%). Key reasons for businesses not to 
use digital services are that what they need is not 
available  (53%)  or  too difficult  to  use (46%).  The 
complexity  of  administrative  procedures  is  also 
reported as an obstacle by 77% of businesses (EU 
average 66%) (159). 

Greece  is  working  to  improve  the  quality  of 
digital  public  services  through  integrated 
delivery.  A  portal  launched  in  2020,  www.gov.gr, 
is the single national gateway that brings services 
for people and for businesses under one interface. 
It  also  provides  English-language  navigation  for 

(158) European Commission, 2025, Digital Decade: eGovernment 

Benchmark. 

(159) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services. 

certain  popular  services  and  life-event  categories. 
Businesses  and  people  can  access  over  2 200  e-
services 
from  ministries,  municipalities  and 
independent authorities, many of which have been 
life  events (160).  A  digital 
redesigned  around 
assistant chatbot called mAIgov also helps people 
interact with public services. 

Starting  a  business  in  Greece  remains  a 
challenge. In early 2025, Greece launched a new 
digital  platform  to  simplify  the  licensing  process 
for  businesses.  The  purpose  of  the  new  system, 
OpenBusiness, is to simplify the process, lower the 
burden  and  reduce  the  costs  and  time  needed  to 
set up and run a business. 

low  among  EU 
However,  Greece  ranks 
countries 
issuing  building 
in  terms  of 
permits. Businesses can be set up quickly through 
the  General  Commercial  Registry  (GEMI),  but  if  a 
new  facility  needs  to  be  built  for  the  productive 
investment, the process can take years (161). The e-
Adeies  platform  has  made  the  filing  of  building 
permits  fully  digital  since  2018.  However,  delays 
persist  in  processing  building  permits.  To  address 
these shortcomings, the government announced in 
2025  that  the  issuing  of  building  permits  will  be 
transferred  from  municipal  building  services  to  a 
unified  digital  hub  (called  Hellenic  Cadastre)  for 
the lifecycle of property management. 

largest 

investment 

from  Greece’s 
The 
recovery  and  resilience  plan  (RRP)  (EUR 
2.17 billion)  was  in  digitalising  the  public 
sector and  public  services.  This  was  reinforced 
funds 
support 
by 
(EUR 370 million). 
includes 
investment  for  developing  digital  skills  in  the 
public  and  private  sectors,  and  for  ICT  specialists 
with 
(approximately 
EUR 61 million from the cohesion policy (162).  

cohesion 
also 

755  million) 

from 

EUR 

RRP 

The 

the 

Greece  is  also  working  to  make  its  digital 
services  accessible  from  other  EU  countries. 
The  country is  currently issuing  IDs  with  a  unique 
personal  number,  planned  to  be  the  basis  of  the 

(160) European Commission, upcoming, Simplification of key life 

events. 

(161) World Bank, 2025, Subnational Business Ready in the 

European Union 2025: Greece. Summary available at: Still 
hard to start a business in Greece | eKathimerini.com. 

(162) European Commission, 2025, Digital Decade 2025: Country 

reports. 

69 

0%10%20%30%40%50%Time forresponsesDocumentspreparationDocumentspreparationTime forresponsesLegislationandobligationsServiceidentificationPeopleBusinessesEU 
     
 
 
Table A7.2:  Digital Decade key performance indicators: availability of digital public services 

(1) Digital Decade target by 2030: 100. (2) Publishing year, data was collected in the previous year 
Source: European Commission, State of the Digital Decade report 2025. 

European  electronic  identification  scheme.  By  end 
of  2024,  1.5  million  IDs  had  been  issued (163).  A 
system has been set up by  the Ministry of Digital 
Governance  to  automate  the  process  and  reduce 
the time it takes. 

the 

through 

Greece  has  enabled 
cross-border 
exchange  of  data  and  documents  between 
authorities 
the  EU  once-only 
technical  system  (OOTS).  When  services (164) 
become  accessible,  people  and  businesses  will  no 
longer have to search for their data, download and 
upload documents manually  across  e-government 
portals  in  different  Member  States.  It  would  be 
beneficial for the Greek authorities to identify the 
types  of  documents  and  data  they  need  to 
exchange through the system and explore ways to 
shift  from  the  submission  of  unstructured  to 
structured data formats. Greece would continue to 
benefit  from  connecting  authorities  to  the  OOTS, 
fostering cross-border exchanges and encouraging 
synergies with related EU-wide projects. 

Civil service 

Greece is in the process of reforming its civil 
service to increase performance and enhance 
meritocracy.  The  reforms  aiming  at  addressing 
the CSRs in this area include implementing annual 
linked  to  government 
performance  appraisals 
objectives  and  a  fair  bonus  system  rewarding 
performance.  Other  reforms  cover  speeding  up 
recruitment 
competitions 
independent  authority  for 
organised  by 

through 
the 

electronic 

(163) European Commission, 2025, Digital Decade 2025: Country 

reports. 

(164) Procedure types under Annex II of the 

SDGR (2018/1724/EU) and directives 2005/36/EC, 
2006/123/EC, 2014/24/EU and 2014/25/EU. 

personnel selection (ASEP) and annual recruitment 
planning  based  on  workforce  planning.  The 
adopted  reform  in  the  disciplinary  framework  for 
civil  servants (165)  is  expected  to  improve  ethics 
and  legal  certainty  by  ensuring  that  disciplinary 
offences  are  resolved  in  a  timely  manner.  Greece 
will  receive  technical  support  for  updating  the 
existing competency framework for civil servants. 

A  number  of  challenges  persist,  including  an 
ageing workforce and adult learning. Only 6% 
of  Greek  public  administration 
employees 
participate in adult learning, which is far below the 
EU  average  of  19%.  Moreover,  the  Greek  civil 
service  is  aging  with  percentages  below  the  EU 
average. To tackle this problem, extensive certified 
training  courses  on  a  wide  spectrum  of  topics  for 
public administration have been run from 2023 to 
2026.  The  trainings  were  delivered  with  the  help 
of  the  RRP,  the  National  Centre  for  Public 
Administration and Local Government (EKDDA) and 
the  private  sector.  Work  is  also  underway  –  with 
EU  technical  support  to  transform  EKDDA  and  to 
attract  talented  professionals,  using  behavioural 
science,  faster  recruitment  processes  and  more 
attractive 
employment  opportunities.  Lastly, 
Greece  has  announced  plans  to  introduce  a  new, 
launched,  selection  system  for 
automatically 
(approximately  29 000 
management  positions 
posts), which will be based on written exams. 

Integrity  

and 

Corruption is still perceived as widespread in 
Greece 
of 
corruption remain high.  97% of companies say 
corruption is widespread, far above the EU average 
of  63%.  This  correlates  with  95%  of  companies 

experiences 

reported 

(165) Law 5225/2025. 

70 

EU-272023202420252025657677827486798661747483Access to electronic health records (0 to 100)Digital public services for citizens (0 to 100)Digital public services for businesses (0 to 100)Greece 
 
 
 
   
 
stating  that  overly  close  links  between  business 
and  politics  lead  to  corruption  (EU:  76%).  With 
75%  of  businesses  flagging  corruption  as  a 
problem – more than twice the EU average of 35% 
–  corruption  appears  to  be  perceived  as  a  major 
in 
practical  obstacle  to  running  a  business 
Greece (166). Public procurement is a sector that is 
viewed  as  particularly  vulnerable  to  corruption, 
collusion and conflicts of interest in Greece. Delays 
in the approval of licences and permits may deter 
businesses 
tendering 
procedures (167)  (see  Annex  5).  The  proportion  of 
companies that report being asked or expected to 
offer  a  gift,  a  favour  or  extra  money  to  obtain 
permits,  services  or  procurement  opportunities  is 
almost  twice  the  EU  average 
(Greece: 18%; 
EU: 10%).  The  proportion  of  companies  that 
believe  that  those  caught  bribing  a  senior  official 
are  punished  appropriately 
is  below  the  EU 
average (Greece 24%; EU 33%) (168). This suggests 
that  there  is  considerable  room  for  improvement 
in enforcement and deterrence. 

taking  part 

from 

in 

to 

uncover 

authorities 

Greece  has  taken  a  number  of  steps  to 
improve  the  prevention  and  detection  of 
corruption.  The  Greek  National  Anti-Corruption 
Authority  has  developed 
the  National  Anti-
Corruption  Strategic  Plan  2026-2030,  which  is 
under adoption. The law on asset declarations has 
been  amended (169)  to  improve  compliance,  to 
simplify and streamline procedures, and to enable 
discrepancies, 
the 
unexplained  wealth  and  hidden  assets  more 
quickly 
despite 
and 
improvements 
implementation  and 
enforcement  of  the  lobbying  rules,  registrations 
have  increased  only  slightly  since  August  2025. 
The  framework  would  therefore  benefit  from 
further  measures  to  increase  awareness  and 
improve  enforcement.  The  Hellenic  competition 
commission 
introduced  a  dedicated  digital 
whistleblowing  system  specifically  designed  for 
contracting  authorities  to  report  bid  rigging  in 
public procurement procedures (see Annex 5). 

efficiently.  However, 
in 

the 

(166) European Commission, 2025, Flash Eurobarometer survey 
557 on Businesses' attitudes towards corruption in the EU. 

(167) European Commission, 2025, Rule of Law Report. 

(168) European Commission, 2025, Flash Eurobarometer survey 
557 on Businesses' attitudes towards corruption in the EU. 

(169) Law 5130/2024. 

71 

cases  more 

Greece  has  taken  measures  to  improve  the 
investigation  and  prosecution  of  corruption. 
The  Government  is  developing  a  shared  register 
for  handling  corruption  cases  to  consolidate  and 
improve  the  reliability  of  data  and  to  help  tackle 
efficiently.  While 
corruption 
investigations  on  corruption  offences  increased 
slightly,  there 
in 
is  room  for 
increasing  the  number  of  concluded  prosecutions 
and  convictions  for  corruption  offences,  including 
at high level. As part of a police reorganisation, a 
new  department  for  combating  organised  crime 
has  been  set  up  to  enable  a  more  strategic 
approach  to  combating  organised  crime,  including 
corruption. 

improvement 

Justice 

the 

regarding 

The  justice  system  continues to  face  serious 
challenges  as  regards  its  overall  efficiency, 
in  particular 
length  of 
proceedings  and  the  insufficient  level  of 
digitalisation. The time taken to reach a decision 
in  civil  and  commercial  cases  in  first-instance 
courts decreased from 771 days in 2023 to 737 in 
2023.  This  is  still  among  the  longest  in  the  EU. 
However,  initial  statistics  from  the  three  largest 
courts  show  significant  improvements  in  case 
disposition times and clearance rates following the 
implementation  of  the  new  judicial  map  for  civil 
and criminal justice. The estimated time to resolve 
administrative cases in first-instance courts is also 
long (445 days in 2024, compared to 439 days in 
2023).  Efforts  are  ongoing  to improve  the  quality 
of  the  justice  system:  a  number  of  projects  are 
under  way  to  improve  the  level  of  digitalisation. 
Progress is still limited to certain courts and does 
not  cover  all  workflows.  Electronic  and  paper-
based systems are still used in parallel. Procedural 
rules  could  be  updated  to  enable  the  adoption  of 
digital  tools  to  reduce  delays  and  boost  the 
efficiency of the administration of justice. 

There  are  also  ongoing  projects  to  digitise 
access to case law for ordinary courts, which 
would increase transparency and trust in the 
judiciary.  Greece  lags  behind  in  digital  solutions 
to 
in 
civil/commercial  and  administrative  cases,  and  in 
online  access  for  the  general  public  to  published 
judgments.  The  country  also  significantly  lags 

proceedings 

initiate 

follow 

and 

 
 
behind  regarding  arrangements  for  producing 
machine-readable judicial decisions (170). 

(170) For  a  more  detailed  analysis  of  the  performance  of  the 
justice system in Greece, see the upcoming 2026 EU Justice 
Scoreboard and the 2025 Rule of Law Report. 

72 

 
 
SUSTAINABILITY 
ANNEX 8: INDUSTRY DECARBONISATION, CIRCULARITY AND CLIMATE MITIGATION 

faces  significant  challenges 

Greece 
in 
industrial decarbonisation and transition to a 
zero-pollution economy. Although the country is 
projected  to  substantially  overachieve  its  2030 
effort  sharing  target,  decarbonising  the  road 
transport  sector  remains  a  major  challenge. 
Greece’s  2025  country-specific  recommendations 
highlighted  concerns 
its  continued 
reliance  on  fossil  fuel  subsidies  and  the  need  to 
accelerate the process of decarbonising transport. 
Despite  some  progress  in  these  areas,  significant 
challenges  persist.  Greece’s  transition  to  the 
circular  economy  is  slow,  as  its  national  plan  for 
the circular economy for 2012-2025 has yet to be 
fully implemented. Recycling rates are low and the 
country is lagging behind on waste management. 

regarding 

Industry decarbonisation 

Greenhouse gas emissions from industry 

Greece's  manufacturing  sector  faces  major 
challenges 
in  decarbonising  and  emits 
relatively high volumes of greenhouse gases 
per  unit  produced (171).  In  2024,  the  share  of 
manufacturing 
the 
manufacture  of  coke  and  refined  petroleum 
products)  in  Greece’s  greenhouse  gas  emissions 
has  been  13 % (172).  With  almost  one  forth,  the 
share  of  energy-intensive 
(NACE 
divisions  C17,  C20,  C23,  C24)  in  manufacturing 

(excluding  division  C19, 

industries 

(171) This  Annex  discusses 

the 

transition 

industry,  specifically 

of  Greece's 
manufacturing 
its  energy-intensive 
industries, to low-carbon and net-zero modes of production, 
which  is  key  to  preserving  competitiveness  on  the  path 
towards  climate  neutrality  as  mandated  by  the  European 
Climate  Law.  A  broader  perspective  on 
the  current 
competitiveness  challenges  facing  Greece's  manufacturing 
industry  is  provided  in  Annex  5.  For  a  more  detailed 
description  of  greenhouse  gas  emissions  from  industry,  see 
European Commission (2025), 2025 Country Report - Greece, 
Commission staff working document, SWD (2025) 205 final, 
Brussels,  4.6.2025,  Annex  A7.  Clean  industry  and  climate 
mitigation. 

GVA  (excluding  C19)  is  among  the  highest  in  the 
EU. With 46% in 2024, the share of electricity and 
renewable energy in the final energy consumption 
of  manufacturing  has  been  slightly  above  the  EU 
average of 44% Between 2019 and 2024, Greece 
has 
the  greenhouse  gas  emissions 
intensity  of  manufacturing  production  by  44%, 
from about 980 to about 430 g/€. 

reduced 

Policies to promote industry decarbonisation  

out 

rather 

setting 

Greece has taken some steps to decarbonise 
its industry,  however  the  targeted measures 
adopted  for  energy-intense  sectors  remain 
focus  mainly  on 
relatively  modest.  They 
managing  energy  costs  and  providing  indirect 
than 
on 
support 
a 
comprehensive 
decarbonisation 
industrial 
framework.  Given  the  high  energy  costs,  Greece 
would  benefit  greatly  from  action  to  decarbonise 
these  sectors.  Decarbonising  the  highest  emitting 
sectors  would  require  decisive  action  to  promote 
the  shift  to  electricity.  This  in  turn  would  require 
upgrading  the  electricity  grid  to  handle  energy 
sources,  more 
from  distributed 
renewable 
renewable  energy  capacity, 
improving  energy 
efficiency  across  sectors  and  investing  in  green 
hydrogen and battery storage solutions. 

industry. 

including 

Greece’s  updated  national  energy  and 
climate plan (NECP) 2021–2030 (173) provides 
the overarching strategic framework guiding 
the  process  of  decarbonisation  across 
The  NECP 
sectors, 
incorporates  renewable  hydrogen  as  a  strategic 
energy  source  with  a  view  to  2050,  but  future 
investments  to  decarbonise  the  energy  sector 
remain  very  modest.  The  NECP  also  anticipates 
upcoming  efficiency  gains  in  energy  consumption 
in  industry  as  well  as  decarbonisation  gains  by 
switching to electricity. The aim is for electricity to 
provide 72% of energy consumed in the industrial 
sector, up from 40% in 2022 (174), with petroleum 
and  bioenergy  providing  the  remainder.  The  take-
up of renewable energy in industry is expected to 

(172) Data on the manufacturing sector exclude the NACE division 
C19 – manufacture of coke and refined petroleum products, 
for better match of the sectoral data from Eurostat (gross 
value added) with those from the UNFCCC under the 
Common Reporting Format. Also see further indicators on 
industry decarbonisation, as well as the annotation for 
further information, in table A8.1 at the end of this Annex. 

(173) Greece - Final updated NECP 2021-2030 (submitted in 

2025, European Commission. 

(174) NECP page 52. 

73 

 
 
 
 
 
 
 
gas emissions from Greece’s effort sharing sectors 
are  expected  to  have  been  32.9%  below  2005 
levels. By 2030, with current and planned policies 
and  measures,  these  emissions  are  expected  to 
decrease by  43.3%,  resulting in  a  surplus  of  20.6 
percentage  points  relative  to  the  2030  target,  a 
22.7% reduction. Greece is projected not to exceed 
its  effort  sharing  emissions  limits  in  any  year  in 
the 2021-2030 period.  

Between  2023  and  2024,  greenhouse  gas 
emissions  in  Greece’s  effort  sharing  sectors 
were 6 percentage points below 2005 levels. 
Greece's  share  of  effort  sharing  emissions 
generated  by  waste  is  the  highest  in  the  EU, 
accounting  for  15%  (EU  average:  5%) (178).  In 
2024,  greenhouse  gas  emissions  from  road 
transport  in  Greece  had  decreased  by  21%  since 
2005, and by a further one percentage point since 
2023 (179). Still, in 2024, road transport generated 
40% of Greece's effort sharing emissions. 

Graph A8.1: Greenhouse gas emissions in the 
effort sharing sectors, 2005, 2023, and 2024 

rise  to  34%  by  2030,  before  almost  doubling  to 
reach 65.8% by 2050 (175). 

manufacturing 

Greece  has  not  yet  developed  a  policy 
incentives  to 
framework  nor 
investment 
net-zero 
in 
support 
technologies.  REPowerEU  investments  under  the 
recovery and resilience plan entail a wide range of 
and 
investments, 
promoting  renewable  energy,  pilot  projects  for 
biomethane  and 
renewable  hydrogen,  and 
promoting  carbon  capture  and  storage  (CCS) 
technologies  to  foster  industry  decarbonisation. 
Greece  has  recently  adopted  its  first  law  to 
promote and regulate CCS and has advanced work 
on the first storage site in the country. 

efficiency 

energy 

from 

in  the  EU 
Greece  participates  actively 
Innovation  Fund,  where 
it  focuses  on 
decarbonising  energy-intensive  sectors  such 
as  cement  and  refining  as  the  primary 
beneficiaries  of  project-based  support  under 
this  Fund.  For  example,  Greek  cement  producers 
are involved in Innovation Fund-supported CCS and 
fuel substitution projects aimed at achieving deep 
emission  reductions  in  clinker  production.  These 
projects contribute to a first-of-a-kind deployment 
and to reducing technological and investment risks 
in  hard-to-abate  sectors (176).  A  major  method  of 
financing  industrial  decarbonisation  is  to  use 
emissions trading system (ETS) revenues. In 2024, 
Greece used less than 2% of its ETS revenues for 
this purpose. 

Reduction of effort sharing emissions 

Source: European Environment Agency. 

Sustainable transport 

Compliance  with  effort  sharing  limits  with 
domestic measures 

Greece  remains  heavily  reliant  on  road 
transport,  which  accounts  for  an  outsized 

Greece  is  projected  to  overachieve  its  2030 
effort sharing target (177). In 2024, greenhouse 

(175) NECP page 396. 

(176) INNOVFUND_Greece.pdf. 

(177) The  national  GHG  emission  reduction  target  is  set  out  in 
Regulation (EU) 2018/842 (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).  The  emissions  from  effort 
sharing  sectors  for  2024  are  based  on  approximated 
inventory  data.  The  final  data  will  be  calculated  in  2027 
after  a  comprehensive  review.  Projections  about  the 

impact of current policies (‘with existing measures’, WEM) 
and  additional  policies  (‘with  additional  measures’,  WAM) 
as  per  Greece’s  2025  reporting  under  Article  17  of 
Regulation  (EU)  2018/1999  (the  Governance  Regulation). 
Also  see  European  Commission  (2025),  Climate  Action 
Progress Report 2025 – Technical Information, Commission 
staff  working  document,  Brussels,  Chapter  9  (pp.  111ff.), 
and in particular Tables 25 and 26. 

(178) See Graph A8.1, and Table A8.1 at the end of this Annex. 

(179) https://www.eea.europa.eu/en/analysis/maps-and-

charts/greenhouse-gases-viewer-data-viewers. 1.A.3.b Road 
Transportation sector taken into account. 

74 

010203040506070200520232024MtCO2eDomestic transport (excl. aviation)Buildings (under ESR)AgricultureSmall industryWaste 
 
 
   
 
share of all transport modes (180). In 2023, the 
split of passenger transport was 83.8% by car and 
14.5%  by  bus  and  coach,  putting  Greece  in  fifth 
place on the use of buses and coaches (181). Other 
forms  of  transport  than  cars  and  buses  account 
for only 1.7% of passenger transport on land (182). 
In  2023,  almost  all  freight  (98.7%  of  all  tonne-
kilometres) was transported by road.  

Greece  lags  behind  the  EU  average  on  the 
shift to electric road transport (183). The 2025 
CSRs  for  Greece  highlighted  challenges  in  the 
process  to  decarbonise  the  transport  sector, 
notably  in  terms  of  the  shift  to  electric transport, 
urban  and  inter-regional  public  transport,  and 
railway  infrastructure  and  operations,  also  in 
terms  of  interoperability,  efficiency  and  safety. 
Greece  is  renovating  its  car  fleet,  with  an  11.5% 
increase  in  car  registrations  between  2019  and 
2024,  but  its  vehicle  fleet  is  among  the  EU’s 
oldest (184). Decarbonising road transport still faces 
systemic  challenges,  with  zero-emission  vehicles 
not  exonerated  from  concession  tolls (185).  A 
positive  sign  is  that  the  Greek  authorities  are 
committed  to  enforcing  the  provision  in  the 
national  Climate  Law  setting  out  that,  as  of 
1 January 2026,  all  newly  registered  taxis  in  the 
Athens/Attica  region  and  Thessaloniki  must  be 
(electric  or  hydrogen). 
zero-emission  vehicles 
Battery  electric  passenger  cars  comprised  only 
6.15% of new registrations in 2025 (186), less than 
half  of  the  EU  average  of  17.5%.  Only  0.3%  of 
cars  in  Greece  are  battery  electric.  This  is  a 
significant challenge to meeting the objectives on 

(180) See EU Statistical pocketbook 2025. 

(181) Idem. 

(182) Idem. 

(183) See EU Alternative Fuels Infrastructure Observatory. 

(184) Greek  cars  and  lorries  are  17  and  23  years  old  on  average 
compared to EU averages of 12 and 14.2 years, see Greece’s 
updated NECP. 

(185) See Presidential Decree No. 104 Άρθρο 4, παράγραφος 6 

and Άρθρο 8, παράγραφος 6, εδάφιο β. Presidential Decree 
No. 104, Government Gazette Issue A’ No. 221/05.12.2025 
on the Harmonization of the Greek legislation with Directive 
(EU) 2022/362 of the European Parliament and of the 
Council of 24 February 2022 amending Directives 
1999/62/EC, 1999/37/EC and (EU) 2019/520, as regards the 
charging of vehicles for the use of certain infrastructures 
(hereinafter ‘Presidential Decree No 104’). https://www.e-
nomothesia.gr/kat-aytokinita/pd-104-2025.html. 

transport  decarbonisation (187),  on 
improving 
energy  efficiency,  reducing  strategic  dependency 
on imported hydrocarbons and tackling pollution. 

highest 

The shift to electric transport has progressed 
faster in public transport, with zero-emission 
buses  and  coaches  accounting  for  nearly 
15%  of  new  registrations 
in  2025,  a 
significant  achievement  given  that  the  first 
registrations  of  electric  buses  were 
in 
2023 (188). Under the EU’s Recovery and Resilience 
Facility (RRF), Greece is expected to add more than 
400  new  electric  buses  in  Attica  and  Thessaloniki 
by  2026.  However,  the  shift  to  electric  buses  is 
insufficient  to  deliver  sustained  CO₂  emission 
reductions  without  a  faster  take-up  of  electric 
passenger  cars  and  a  modal  shift.  In  terms  of 
charging infrastructure, Greece is making strides in 
installing  public  charging  points,  reaching  nearly 
10 000 (189).  This  means  that  Greece  has  one  of 
charging 
the 
infrastructure  relative  to  the  number  of  electric 
vehicles,  due  more  to  the  limited  take-up  of 
truly  extensive 
electric  vehicles 
infrastructure network, which is far from the level 
needed 
electric 
transport (190).  Since  2014,  the  Connecting  Europe 
railway 
(CEF-T)  has  supported  18 
Facility 
investment  projects  covering  over  409  km  of  rail 
lines,  with  a  total  investment  of  EUR  1.4  billion. 
The share of alternative fuelled light-duty vehicles 
(M1 + N1) in 2024 was 3.7% of the total fleet and 
registrations  of  electric  vehicles 
indicate  an 
increasing  trend.  There is a  much  higher  share  of 
electric vehicles (BEVs) than  hydrogen vehicles.  In 
infrastructure  in 
parallel,  the  alternative  fuel 
Greece is  on  a  similar  upwards  trend,  with  7  195 
AC  and  1  562  DC  charging  points  installed, 
respectively. 

support  widespread 

shares 

public 

to  a 

than 

of 

to 

(187) In its NECP, Greece aims to reach a 30% share of new 

vehicles operated in 2030 that are electric (BEV, PHEV). 

(188) Vehicles and fleet | European Alternative Fuels Observatory. 

(189) Δημοσίως Προσβάσιμα Σημεία Φόρτισης. 

(186) See EU Alternative Fuels Infrastructure Observatory. 

(190) Also see Annex 18. 

75 

 
 
 
Sustainable industry 

Circular economy industry 

As of 2025, Greece’s circular economy action 
plan  has  not  been  fully  implemented,  and 
recycling  rates  remain  low.  In  2022,  Greece 
adopted  its  national  action  plan  for  the  circular 
economy  for  2021–2025.  Many  of 
its  key 
initiatives  focus  on  waste management,  but  most 
actions  have  not  yet  been  implemented.  Greece 
ranks very low on the recycling of municipal waste, 
with  only  17.4%  of  municipal  waste  recycled 
(compared with the EU average of 48%) and on a 
downward  trend  since  2018 (191).  It  also  performs 
below  the  EU  average  on  the  recycling  of  plastic 
packaging  (approximately  33%  in  2023  against 
the EU average of 42%) (192). However, it leads the 
EU  on  recovering  construction  and  demolition 
waste,  with  100%  recovered  (against  the  EU 
average  of  89%  in  2020)(193).  Greece  has  filed 
very  few  patents 
recycling  and 
related 
secondary raw materials over the last decade, with 
zero patents filed (194).  

to 

for 

in  Greece 
The  circular  economy  sector 
total 
of 
only  1.5% 
accounted 
employment  in  2023 (195).  This 
is  a  12% 
decrease  from  1.7%  in  2014  and  it  trails  the  EU 
average  of  2%.  Per  capita  material  consumption 
decreased only marginally (by 0.9%) over the past 
five years, and resource productivity has increased 
by  41%  over  the  same  period  (from  2019) (196). 
Moreover,  Greece’s  circular  use  of  materials 
increased until 2022, when it peaked at 6.3%, but 
then  declined,  reaching  5.2%  in  2024,  well  below 
the  EU  average  of  12.2%,  underscoring  the 
persistent  reliance  on  primary  resources (197). 
Waste  generation  in  2023  was  slightly  above  the 

(191) Eurostat, Recycling rate of municipal waste.  

(192) Eurostat, Packaging waste by waste management 

operations.  

(193) Joint Research Center, Techno-economic and environmental 

assessment of CDW management, 2024. 

(194) Eurostat, Patents related to recycling and secondary raw 

materials.  

(195) Eurostat, Persons employed in circular economy sectors. Link. 

(196) Eurostat, Resource productivity. Link. 

(197) Eurostat, Circular material use rate. Link. 

EU  average,  at  523  kg/capita  for  Greece, 
compared with 511 kg/capita in the EU (198). 

Greece  makes  uneven  use  of  environmental 
taxation,  with  energy-related  instruments 
comparatively  well  developed,  but  non-
energy  taxes  on  pollution  and  resource  use 
limited  or  set  at  levels  that  provide  weak 
price signals. There is potential to develop these 
tools  to  encourage  sustainable  practices,  raise 
revenue  and  reduce  waste.  Total  environmental 
taxes  amounted  to  EUR 11.6  billion  in  Greece  in 
2022,  representing  5.6%  of  its  GDP  (well  above 
the  EU  average  of  2.0%) (199).  However, these  are 
largely  energy  taxes,  while  taxes  on pollution  and 
resources, at 0.04%, were well below average (EU 
average:  0.08%).  Greece  applies  taxes  to  the 
landfilling  of  untreated  municipal  waste  and 
residues  from  municipal  waste  treatment.  It  also 
applies  product  charges  (levies  on  plastics)  and 
user  charges  (charges  for  visits  to  national  parks, 
hunting and fishing taxes). 

the 

still 

lags 

behind 

on  waste 
Greece 
management.  It  was  the  worst  performer  in  the 
EU  on 
landfilling  of  municipal  waste 
(landfilling 81% against the EU average of 22% in 
2023) (200). This was a slight decrease from 2010 
(1.3%).  Greece  is  still  paying  fines  for  its  illegal 
landfills, as well as the treatment of its hazardous 
waste. The incineration rate is 2%, but only 17.4% 
of municipal waste is recycled (against 48% in the 
EU), well below the relevant EU recycling targets. It 
remains to be seen what effect (if any) the landfill 
tax on municipal waste adopted in 2022 will have 
on these rates. 

responsibility 

There  are  provisions  to  further  develop 
extended  producer 
(EPR) 
in  Greece.  EPR  schemes  cover 
schemes 
packaging  waste  from  both  household  and  non-
household  sources  for  all  packaging  materials. 
Greece  also  plans  to  put  in  place  EPR  schemes 
(textiles, 
product 
covering 
agricultural  plastics, medicines  for  household  use, 
mattresses,  furniture,  toys,  athletic  equipment, 
light  personal  electric  vehicles  and  electric 

several 

groups 

(198) Eurostat, Municipal waste by waste management operations. 

Link. 

(199) European Commission, Environmental Implementation 

Review (2025), Greece country report, Link.  

(200) Eurostat, Municipal waste by waste management operations.  

76 

 
 
 
bicycles) (201).  To  reach 
its  circular  economy 
additional 
objectives,  Greece  would 
investment  of  just  over  EUR 1 billion  to  close  the 
investment gap (202). 

need 

Regional 
(RIS3) (207). 

Smart 

Specialisation 

Strategies 

Zero-pollution industry 

Bioeconomy industry 

of 

Greece's 

historically 

Greece's  bioeconomy  is  gradually  converging 
on productivity and sectoral diversification is 
emerging.  While  overall  employment 
in  the 
bioeconomy  has  shown  limited  growth,  food  and 
beverages,  wood  products  and  furniture,  and  bio-
based chemicals and plastics all recorded positive 
employment growth, with the latter registering the 
strongest  performance  at  5.5%  on  average 
between 2018 and 2023 (203). A notable exception 
is  textiles,  where  employment  contracted  sharply 
by 6.3%, reflecting ongoing structural pressure on 
one 
significant 
manufacturing 
industries.  Labor  productivity, 
measured  as  value  added  per  person  employed, 
was  52.0%  of  the  national  average,  still  well 
below the economy-wide benchmark, but up  from 
47.8% in 2018, suggesting a gradual shift toward 
and 
higher-value 
development  (R&D)  business  expenditure  from 
bioeconomy sub-sectors has also outpaced overall 
R&D growth in Greece (9.9% compared to 7.9% on 
average  between  2018  and  2023),  signalling 
increasing 
in 
bioeconomy  innovation (205) (206).  Structurally,  the 
sector  is  anchored  by  a  dominant  food  and 
beverage industry that creates value from olive oil 
and  winery  residues,  complemented  by  a  rapidly 
emerging  bio-based  chemicals  and  plastics 
segment  leveraging  Greece's  rich  aromatic  plant 
resources.  Wood  products  and  textiles  round  out 
the picture, with both sectors increasingly gearing 
toward sustainable and circular production models. 
These  developments  are  framed  within  Greece's 

activities (204). 

private-sector 

confidence 

Research 

Air  quality  in  Greece  remains  a  cause  for 
concern 
in  some  parts  of  the  country. 
However,  emissions  of  several  air  pollutants  have 
decreased significantly (208). 

The 

The  cost  of  air  pollution  for  Greece  is 
significant.  The  cost  of  annual  damages  are 
estimated at EUR 15-27 million for PM10, EUR 31 
million  for  NO2  and  EUR 34  million  for  ozone 
pollution (209). 
Environment 
Agency (EEA) estimates that  898 years  of life  are 
lost  per  100 000  inhabitants  attributable  to  air 
pollution due to PM2.5 concentrations that exceed 
the  World  Health  Organization’s  air  quality 
guidelines (210).  This  also  exceeds  the  EU  average, 
although the trend since 2016 is mostly downward 
(see Annex 15).  

European 

Greece  has  not  brought  in any  new taxes  on 
major  air  pollutants  such  as  NOx,  SO₂  or 
particulate  matter  over  this  period.  Introducing  a 
pollution tax system could reduce these pollutants 
by  7-30%,  depending  on  the  tax  rate,  while 
generating  up  to  EUR  15  million  in  revenues  by 
2030 (211).   

in 

Water pollution  from  industry is a  cause  for 
concern 
some  aspects.  A  worrying 
development  on  this  front  in  Greece  is  the  275% 
increase 
releases 
(cadmium,  mercury,  nickel  and  lead).  On  the 
positive side, there has been a 53% decline in total 
organic carbon emissions to water since 2010, as 
reported  under  the  Industrial  Emissions  Directive 

industrial  heavy  metal 

in 

(207) See Synopsis_National-Smart-Specialisation-Strategy-2021-

2027.pdf. 

(208) European Commission, Environmental Implementation 

(201) European Commission, Environmental Implementation 

Review (2025), Greece country report. 

Review (2025), Greece country report. 

(202) Ibid. 

(203) Joint Research Centre, Jobs and Wealth in the European 

Union Bioeconomy. 

(204) Ibid. 

(209) European Commission: Directorate-General for Environment, 
EMRC, Logika Group and RPA Europe; Update of the costs of 
not implementing EU environmental law (2025), Link. The 
damage cost is calculated as VOLY. 

(210) EEA, 2025, Harm to human health from air pollution in 

Europe: burden of disease status, 2025. 

(205) Bioeconomy  subsectors:  food  and  beverages;  bio-based 
textiles;  wood  products  and  furniture;  bio-based  chemicals 
and plastics. 

(206) Joint Research Centre, Business expenditure in Research and 

Development (R&D) in the EU bioeconomy. 

(211) European Commission: Directorate-General for 
Environment, Camboni, M., Markandya, A., Tyrer, 
D., Goonesekera, S. et al., Greening the European Semester – 
Resource and pollution taxes. Annex 6, Country factsheets, 
Publications Office of the European Union, 2026, Link.  

77 

 
 
 
(IED) (212). 97.8% of Greece’s surface water bodies 
has  achieved  good  chemical  status,  the  second-
best  performance  in  the  EU.  Water  pollution  by 
industry 
indirect  costs 
estimated at EUR 2 million annually (213).  

imposes  direct  and 

and 

healthcare 

The  total  economic  cost  of 
industrial 
pollution in Greece is EUR 8.6 billion per year 
lost 
encompassing 
productivity 
degrada-
tion (214) (215). Investment still falls short of needs. 
Meeting  the  national  and  EU  targets  for  pollution 
prevention  and  control  would  require  Greece 
spending an additional EUR 349 million every year 
(about 0.17% of GDP) (216). 

environmental 

expenses, 

(212) EEA, Water pollutant releases changes from 2010 to 2022 

for the EU Member States, 2024, Link. 

(213) European Commission, Directorate-General for Environment, 
IEEP, Green taxation and other economic instruments – 
Internalising environmental costs to make the polluter pay, 
2021. 

(214) European Commission: Directorate-General for 
Environment, Camboni, M., Markandya, A., Tyrer, 
D., Goonesekera, S. et al., Greening the European Semester – 
Resource and pollution taxes. Annex 6, Country factsheets, 
Publications Office of the European Union, 2026, Link.  

(215) EEA, The costs to health and the environment from industrial 
air pollution in Europe – 2024 update, 2024, Link. The costs 
reported are calculated in terms of value of a statistical life 
(VSL). 

(216) European Commission, Environmental Implementation 

Review (2025), Greece country report. 

78 

 
 
Table A8.1:  Key clean industry and climate mitigation indicators: Greece 

Sources and notes: Industry decarbonisation: (1) Sectors covered: all divisions of section C - Manufacturing - of the NACE Rev. 2 statistical 
classification of economic activities, except C19 (manufacture of coke and refined petroleum products). (2) GHG emissions as per UNFCCC 
Common Reporting Framework (CRF) categories 1.A.2 - fuel combustion in manufacturing in industries and construction (that broadly correspond 
to the broadly correspond to the NACE sections C - Manufacturing and E - Construction, excluding C-19),  and CRF2 - industrial processes and 
product use. The figures shows the emissions in the 1.A.2 category as a share of the sum of CRF1.A.2. and CRF2 emissions. (3) Sectors covered: 
CRF 1.A.2 as described above. Gross value added (GVA) data in the denominator aligned in sectoral coverage, in 2020 prices. (4) Sectors covered: 
NACE section C excluding C19. (5) Nominator: NACE divisions C17, 20, 23, 24; denominator: NACE section C excluding C19 (see above). (6) GVA 
(denominator) in 2020 prices. Reduction of effort sharing emissions: Data source: European Environment Agency, greenhouse gas data 
viewer; European Commission, Climate Action Progress Report, 2025. For details, see the footnote in the "Reduction of effort sharing emissions" 
section. Sustainable road transport: (7) Source: Eurostat; (8) Source: European Alternative Fuels Observatory; (9) Source: Eurostat. For all 
climate mitigation indicators, the trend arrows compare the latest available data (year t) with the data four years earlier (t-4). Sustainable 
industry: Bioeconomy value added, employment and productivity: JRC, Developments of Economic Growth and Employment in Bioeconomy 
Sectors across the EU. Bioeconomy R&D business expenditure: JRC, Business expenditure in Research and Development (R&D) in the EU 
bioeconomy. Damage cost for industrial pollution: EEA, The costs to health and the environment from industrial air pollution in Europe, 
2024. Water industrial pollutants releases: EEA, Industrial releases of pollutants to water and economic activity in the EU-27, 2024. Water 
chemical status: WISE, Surface water bodies: Chemical status, 2024 and WISE Groundwater bodies: chemical status, 2024. Other indicators: 
Eurostat. For circular economy indicators, the trend arrows compare the latest available data (year t) with the data two years earlier (t-2).   

79 

Climate mitigationTrendIndustry decarbonisation201820192020202120222023202420182023GHG emissions intensity of manufacturing production, g/€ (1)1075978876786638622543330-Share of energy-related emissions in industrial GHG emissions (2)29.928.930.432.632.932.3-55.557.9Energy-related GHG emissions intensity of manufacturing and construction, g/€ (3)371.5328.3317.8302.3258.2241.3-203.9163.0Share of electricity and renewables in final energy consumption in manufacturing, % (4)48.249.948.447.045.245.746.142.843.9Energy intensity of manufacturing, GWh/€ (4)1.951.841.871.701.591.471.381.271.05Share of energy-intensive industries in manufacturing production, % in GVA (5)24.5923.9424.3323.3926.1726.0826.65--GHG emissions intensity of production in sector [...], g/€ (6)- paper and paper products (NACE C17) 217          226          223                 170            129                   176           157             722             619             - chemicals and chemical products (NACE C20) 1,748        1,615       1,574               1,264         500                   782           650             --- other non-metallic mineral products (NACE C23) 9,404        8,093       7,481               7,324         7,169                6,434         5,037          2,495           2,352          - basic metals (NACE C24) 1,181        1,220       1,003               1,046         638                   591           585             2,842           3,099          Reduction of effort sharing emissions201820192020202120222023202420182023GHG emission reductions relative to base year, % -29.4-27.4-26.9-32.9- domestic road transport-20.4-18.6-29.5-23.3-18.0-19.9-21.2-1.4-5.6- buildings-63.7-60.2-55.0-60.3-55.2-64.5-63.8-20.3-33.520052021202220232024TargetWEMWAMEffort sharing: GHG emissions, Mt; target, gap, %63.044.445.846.142.3-22.7%-43.3%-43.3%Sustainable road transport2018201920202021202220232024202520182021New zero-emission vehicles, electricity motor, % (7)0.070.160.852.172.694.746.361.038.96Number of publicly accessible AC/DC charging points (8)--291610985316670498757446956n/aShare of electrified railways, % of total (9)29.6132.0631.1731.2537.0940.5040.5955.4756.49Sustainable industryTrendEU-27Circular economy transition20182019202020212022202320242018latest dataMaterial footprint, tonnes per person12.512.411.211.111.311.111.614.813.7Circular material use rate, %3.0            3.4            4.2                   5.3             6.3                    5.2             5.211.612.2Resource productivity, €/kg1.4            1.5            1.5                   1.7             1.8                    2.0             2.12.13.0Employees in circular economy1.8            1.81.8                   2.0             1.6                    1.5             -2.12.0Patents in circular economy00.3            0.6                   -            12.312.0Recycling rate           20.1           21.0                  18.1             17.5                    17.3             17.4 :46.4048.1Plastic recyling 40%38%-38%32%33%-41%42%Construction and demolition waste (CDW) recovery 97-1008889Bioeconomy industry 2018201920202021202220232024CAGR 2018-202320182023Value added, million EUR11,04311,59611,33211,66013,58914,305-4.4%642,438863,436Employment, total number of people employed685,370673,011651,738682,610691,289706,582-0.5%17,649,04017,085,642ProductivityValued added per worker, thousand EUR16.117.217.417.119.720.2-3.9%36.450.5Valued added per worker, % of national average47.850.954.751.653.452.0--62.270.7R&D business expenditureTotal bioeconomy (biomass producing and converting sectors)981031111281861729.9%15,67223,335Total R&D business expenditure1,0501,0781,1501,2451,5051,658-7.9%196,587259,525Zero pollution industry201820192020202120222023202420182021Damage cost for industrial pollution11.09.88.08.6---414.9352.7Water industrial pollutants releases 2021change (2010)2021change (2010)2021change (2010)2021change (2010)3,120        160%4,519,200        23%5,615,700         -58%1,110,700    2% Water chemical statusGood1,550               Good (%)0.9                    Poor124.0Poor (%)7%EUTOCPhosporusGreeceGreeceCd, Hg, Ni, Pbnitrogen 
 
 
   
 
 
ANNEX 9: AFFORDABLE ENERGY TRANSITION 

This  annex  outlines  the  progress  made  and 
the  ongoing  challenges  faced  in  increasing 
energy  affordability,  while  advancing  the 
transition 
the 
implementation  of  past  energy-related  country-
specific recommendations. 

to  net  zero. 

reflects 

It 

2025 

network 

country-specific 
Greece’s 
challenges 
highlighted 
recommendations 
electricity  prices  and 
regarding  high 
electricity 
The 
capacity. 
recommendations  called  on  Greece  to  develop 
non-fossil  flexibility  solutions,  including  demand-
response  and  storage,  to  phase  out  fossil  fuel 
subsidies,  in  particular  in  the  industrial  sector,  to 
streamline 
for  new 
transmission  networks  and  finally  to  improve  the 
quality  of  the  distribution  network  to  reduce 
technical and non-technical losses. 

licensing  process 

the 

Energy prices and costs 

With  the  Greek  government  continuing  to 
offer  support  to  reduce  final  electricity 
prices  (217),  household  retail  energy  prices 
in 
have  stayed  below  the  EU  average, 
contrast  to  electricity  prices  for  industrial 
consumers  which  have  increased and  exceed 
the  EU  average.  In  the  first  half  of  2025, 
household  electricity  and  gas  prices  in  Greece 
remained  stable  and  below  the  EU  average  at 
EUR 0.2263/kWh 
EUR 0.0863/kWh 
and 
respectively. By contrast, retail electricity prices for 
industrial  consumers  (EUR 182/MWh)  increased 
substantially  from  the  previous  year,  staying 
(EUR 164/MWh)  and 
above 
in  gas  prices  for  non-
mirroring  the  trend 
household 
nevertheless 
consumers,  which 
remained  below  the  EU  average.  While  wholesale 
costs  accounted  for  69%  of 
industrial 
electricity  price,  network  costs,  carbon  costs  and 
taxes represented 9%, 10% and 12%, respectively, 
of  electricity  bills.  Nevertheless,  despite  the  2025 
country-specific  recommendation  to  recalibrate 
energy  taxes  to  incentivise  electrification,  final 
energy  prices  in  Greece  in  the  first  half  of  2025 
continued 
imbalance 
to  show  a  significant 
between  electricity  and  gas.  For  large  businesses, 

the  EU  average 

the 

electricity was 4.1 times more expensive than gas 
in  the  first  half  of  2025,  with  taxes  and  levies 
(excluding  VAT)  accounting  for  12%  of  electricity 
bills (218)  compared  with  only  5%  of  gas  bills. 
Excluding  taxes  and  levies,  the  electricity-to-gas 
price  ratio  would  have  decreased  to  3.8,  meaning 
Greek fiscal measures had no balancing effect. For 
household  consumers,  the  effect  of  taxes  and 
levies  on  the  electricity-to-gas  price  ratio  was 
slightly  different  and  would  have  decreased  from 
2.6  to  2.5  if  taxes  and  levies  were  excluded, 
meaning there is a certain balancing effect (219). 

Graph A9.1: Electricity and gas prices for 
household and non-household consumers, first 
half of 2025 

(i) For household consumers, the consumption band is DC for 
electricity and D2 for gas. 
(ii) For non-household consumers, the consumption band is ID 
for electricity and I4 for gas. VAT and recoverable charges are 
not displayed for non-household consumers as these are 
typically recovered by businesses. This also applies to the ‘% 
of taxes and levies’, which is shown excluding VAT and 
recoverable charges for non-household consumers. 
(iii) ‘Without taxes and levies’ indicates the retail price 
excluding all taxes and levies. It always includes the 
energy/supply and network cost components, which are not 
disaggregated in Eurostat’s sixth-monthly price dataset. 
Source: Eurostat 

Due to continued reliance on natural gas for 
electricity  generation, 
limited  non-fossil 
flexibility  and  low  interconnection  capacity 
(which 
is  partly  outside  of  Greece’s 
influence),  average  wholesale  electricity 
prices in  Greece  were  EUR 104/MWh  in 2025 
(vs EU average EUR 85/MWh) (220), the eighth 

(218) While at the same time Greece still maintains the reduced 

VAT rates for all electricity consumers (6%). 

(219) Analysis based on S1 2025 Eurostat data. 

(217) Eurostat. 

(220) Ember. 

80 

 
 
 
 
 
 
 
fossil 

fossil 

in  a 

energy 

production, 

fuels  maintained 

highest in the EU. Despite significant progress in 
fuels 
renewable 
accounted  for  over  54%  of  Greece’s  electricity 
generation in 2025, the sixth highest share in the 
EU,  meaning 
their 
structural  role  as  the  dominant  marginal  price-
setting technology, keeping costs elevated (67% of 
price setting hours for 54% electricity generation). 
Average  day-ahead  electricity  prices  increased  by 
3%  in  2025  amid  rising  natural  gas  procurement 
costs  and  heightened  electricity  demand,  as 
Greece  remained  a  net  electricity  exporter  for  the 
row.  Short-run  marginal 
second  year 
costs (221) of natural gas in the EU increased from 
EUR 96/MWh  in  2024  to  nearly  EUR 103/MWh  in 
2025.  Although  daytime  prices  have  fallen  in 
recent  years  owing  to  the  growing  penetration  of 
solar  power,  Greece  remains  vulnerable  to  severe 
price  spikes  during  peak-demand  hours.  This  is 
because  falling  solar  output  in  the  evening  and 
early  morning  combined  with  limited  non-fossil 
flexibility require gas-fuelled plants to significantly 
ramp  up  generation  to  cover  the  supply–demand 
gap.  As  a  result,  price  spreads (222)  in  Greece 
averaged  EUR 153/MWh  in  2025,  down  6%  from 
2024  while  remaining  significantly  above  the  EU 
average of EUR 121/MWh. 

Graph A9.2: Low-carbon electricity generation vs. 
electricity wholesale prices, 2025 

Unavailable data for Cyprus and Malta. Wholesale price is 
given as average of day-ahead electricity prices over 2025. 
EU-27 average is calculated as consumption-weighted. EU 
low-carbon share is calculated out of total EU electricity 
generation. Low-carbon share by country is calculated out of 
total public electricity generation. Low-carbon includes 
renewables and nuclear. 
Source: Eurostat 

Flexibility and electricity grids 

is  available 

that  are  heavily 

Greece  is  managing  to  partially  meet  the 
target of ensuring at least 70% of technical 
cross-border  capacity 
for 
trading. To meet this target, Member States, such 
as  Greece, 
influenced  by 
exchanges  in  neighbouring  countries  must  take 
action  at  regional  level  (particularly  through  their 
regional  coordination  centre).  Greece  is  subject  to 
market-coupling  through  the  South-East  Europe 
and  Greece-Italy  capacity  calculation  regions 
(CCRs). In these CCRs, electricity flows are heavily 
influenced  by  exchanges  across  nearby  bidding 
zone  borders,  including  with  the  western  Balkan 
countries (223).  Greece  is  a  net  electricity  exporter 
(5%  of  own  consumption),  exporting  to  North 
Macedonia, Albania and Italy, while also importing 
from  Turkey.  At  the  Greece-Italy  border,  cross-
border  trade  was  consistently  high  in  2024.  More 
specifically,  according  to  the  EU  Agency  for  the 
Cooperation  of  Energy  Regulators  (ACER) (224), 
when all interconnectors were in service, the 70% 
requirement was fulfilled. However, as regards the 
Greece–Bulgaria  border,  ACER  did  not  have 

(221) Short Run Marginal Costs (SRMC) are the sum of the variable 
costs associated with producing electricity using hard coal. 

(222) Spread refers to the difference between the highest and 
lowest hourly day-ahead electricity prices in a single day. 

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

(224) ACER’s monitoring report of 5 September 2025. 

81 

 
 
 
 
sufficient  data  to  assess  the  extent  to  which  the 
70% requirement was fulfilled. 

to 

the  2025  country-specific 
In  view  of 
recommendation 
develop  non-fossil 
flexibility  solutions,  Greece  has  taken  steps 
to  improve  non-fossil  flexibility,  however 
important challenges remain. Greece has some 
700 MW of operational electricity storage capacity 
(only pumped hydro). It has already taken steps to 
support electricity storage, with  important storage 
projects  currently  under  development,  including 
two  on  the  second  Union  list  of  Projects  of 
Common  Interest  and  Projects  of  Mutual  Interest 
adopted in 2025: a battery energy storage system 
in  Ptolemaida  and  a  hydro-pumped  storage 
system  in  Amfilochia  (supported  by  the  Greek 
recovery  and  resilience  plan)  which  are  due  to  be 
completed 
respectively. 
in  2027  and  2029 
However, the commissioning of these projects has 
been delayed, mostly due to permitting and supply 
side  issues.  While  the  Greek  National  Regulatory 
Authority  (NRA)  has  adopted  decisions (225)  on  the 
participation  of  batteries  in  market  balancing,  on 
the  intraday  and  day-ahead  markets,  and  on 
operational  support,  Greece  would  benefit  from 
ensuring  a  robust  and  comprehensive  framework 
is in place to put battery participation into practice. 
is 
To  overcome  flexibility  challenges,  Greece 
developing  a  comprehensive 
for 
electricity storage – also supported by its recovery 
and  resilience  plan  –  which  is  expected  to  add 
700 MW  of  battery  storage  in  the  course  of 
2026 (226). 

framework 

to 

While the Greek electricity network has been 
extensively  developed  in  recent  years  in 
accordance  with  the  2025  country-specific 
recommendation 
increase  electricity 
network  capacity,  further  action  to  expand 
Greece’s 
interconnection 
capacity and strengthen its national grid will 
it  to  meet  rising  energy  demand, 
help 
integrate  renewable  energy  production  more 
effectively and improve grid flexibility.  There 
are  several  projects  in  the  pipeline  which  are  on 

cross-border 

(225) Regulatory Decisions E-14/2026, E-15/2026, E-16/2026, E-

17/2026. 

(226) 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). 

the  second  Union  list  of  Projects  of  Common 
Interest  and  Projects  of  Mutual  Interest,  including 
electricity  interconnectors  with  Cyprus,  Italy  and 
Egypt. The level of interconnection between Greece 
and  other  EU  Member  States  remains  limited 
(6.1%  in  2026),  with  the  Greek  energy  system 
experiencing  very  high 
levels  of  renewables 
curtailment  in  2025  (around  6.6% (227)  of  total 
renewables  production).  This  highlights  the  need 
for greater system flexibility and a higher level of 
interconnection.  In  this  regard,  the  decision  by 
Greece’s  transmission  system  operator  (IPTO)  in 
February 2026  to  increase  its  share  capital  by 
EUR 1 billion is expected to have a positive impact 
on  the  implementation  of  the  IPTO’s  10-year 
development  programme  and  thus  on  moving 
forward several interconnection projects. 

Over  the  course  of  2024  and  2025,  Greece 
carried  out  a  number  of  projects  to 
strengthen  the  national  grid,  including  as 
part of its recovery and resilience plan. These 
included projects to modernise the distribution grid 
in the most congested areas, as well as to connect 
its  non-
mainland  Greece  with  some  of 
interconnected islands. In 2025, the project to fully 
interconnect  Crete  with  mainland  Greece  was 
successfully  completed.  This  is  expected  to  lower 
costs,  maximise  Crete’s 
energy  production 
renewable energy potential and better stabilise the 
energy grid.  

The  2025  country-specific  recommendations 
called on Greece to reduce technical and non-
technical  losses  by  improving  the  quality  of 
the  distribution  network,  however  Greece 
continues  to  experience  fairly  high  levels  of 
losses in the distribution network, as well as 
long  grid  connection  times.  The  volume  of 
projects  currently  in  the  grid  connection  queue  is 
far  greater  than  the  forecast  hosting  capacity  of 
the  grid,  resulting  in  long  waiting  times.  Lengthy 
permitting  procedures  for  grid  infrastructure  are 
still a source of major bottlenecks, delaying 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. 
Greece also has a framework in place for flexible 
connection agreements, enabling faster connection 
for certain customers. Greece is involved in several 

(227) IPTO data. 

82 

 
 
 
infrastructure  projects, 

hydrogen 
including  a 
hydrogen  interconnection  with  Bulgaria  and  Italy, 
an  ammonia  reception  facility  and  the  Thalis 
electrolyser  facility  which  are  all  on  the  second 
Union  list  of  Projects  of  Common  Interest  and 
Projects  of  Mutual  Interest.  Some  progress  was 
made  on  non-technical  losses  in  2024  and  2025. 
However, 
the  Hellenic  Electricity  Distribution 
Network  Operator  (HEDNO)  still  estimates  the 
overall  cost  of  non-technical  losses  to  the  final 
consumer  to  be  approximately  EUR 450 million, 
which  adds  EUR 60  to  the  average  household 
electricity bill each year. 

to 

and 

stable 

solutions, 

predictable 

the  2025 

Further 
country-specific 
recommendation  for  Greece  to  develop 
consumer 
demand-response 
empowerment  is  advancing,  however  the 
retail  market  continues  to  show  limited 
active  price-responsive  behaviour,  with 
consumer  choices  suggesting  a  preference 
for 
price 
arrangements (228).  Household  participation  in 
the  flexibility  market  is  closely  linked  to  the  roll-
out of smart meters and the recent introduction of 
dynamic  pricing.  According  to  the  Agency  for  the 
Cooperation of Energy Regulators, Members States 
where the smart meter roll-out rate is low, such as 
Greece,  see  low  interest  in  contracts  with  time-
differentiated 
the 
Recovery and Resilience Facility and despite some 
outstanding  elements  in  the  framework  dynamic 
electricity  pricing  was  formally 
in 
December 2025  and  will  be  phased  in  from 
February 2026 for large non-household customers 
and  from  April 2026  for  households  and  small 
businesses, 
meter 
availability (230).  The  national  target  to  roll-out 
some  7.7 million  smart  meters  by  2030  is  a  key 
enabler  for  broader  consumer  participation  and 
could also help to reduce non-technical losses. The 
smart  meter  roll-out  rate  was  around  12%  in 
2024,  well  below  the  EU  average (231),  although 
continued  network  digitalisation  investments  are 
to  accelerate  deployment.  Retail 
expected 

tariffs (229).  Supported  by 

introduced 

subject 

smart 

to 

(228) RAAEY Retail market report December 2025. 

(229) ACER MMR 2025. 

(230) Ministry of Environment and Energy (Greece), Joint Ministerial 
Decision establishing a framework for dynamic (‘orange’) 
electricity pricing, Official Gazette (FEK Β’ 6565/2025), 9 
December 2025. 

indicators  show  moderate  consumer  mobility.  In 
2024,  the  share  of  households  that  switched 
contract  decreased  to  6.0%,  while  for  non-
household  consumers  this  share  rose  to  13.3%. 
Data for the first half of 2025 confirm continued 
contract  switching  (around  340 000  switches), 
although most consumers remain on a fixed-price 
contract (232).  Market  concentration  remains  high 
(Herfindahl-Hirschman 
for 
for  non-households), 
households  and  2 870 
indicating uneven competitive pressure). 

Index  of  5 160 

In  2024,  electricity  accounted  for  27.3%  of 
Greece's  final  energy  consumption  (FEC) 
(slightly  above  the  EU  average  of  23.4%),  a 
share which has remained largely unchanged 
over  the  last  decade (233),   partly  due  to  an 
unfavourable  electricity-to-gas  price  ratio 
that  disincentivises  electrification  and  cost-
effective decarbonisation. Electricity  accounted 
for  38.4%  of  household  FEC  and  39.9%  of 
industrial  FEC  (see  Annex 8).  In  the  transport 
sector,  the  share  of  FEC  accounted  for  by 
electricity  remained  negligible  at  0.3%.  In  the 
second  half  of  2024,  household  and  industrial 
electricity  prices  in  Greece  dropped  below  the  EU 
average due to government support.  

Renewables and long-term contracts 

2025, 

energy 

Installed 

renewable 

In 
sources 
accounted  for  46%  of  Greece’s  electricity 
mix (234),  decreasing  compared  to  2024 (-
4.3%). 
renewables 
capacity 
represented  20  456  MW  in  2025.  The  installed 
capacity  for  solar  grew  (+25.4%  compared  to 
2024),  reaching  11  GW (235),  while  installed  wind 
capacity  was  5.695 MW  at  the  end  of  2025, 
marking  a  6.4%  year-on-year  increase  compared 
to  2024 (236).  Greece  is  among  the  top  three 

for 

(232) RAAEY, Electricity Retail Market Report – First Half of 2025; 

RAAEY, National Report 2024. 

(233) The CAGR (compound annual growth rate) was -0.2% 

between 2015 and 2024. The minimum/maximum shares 
were 26.2% and 29.5% respectively (Source: Eurostat). 

(234) Energy-charts based on ENTSO-E Transparency Platform. 

(235) International Renewable Energy Agency (IRENA) - Renewable 

Capacity Statistics 2026. 

(236) https://eletaen.gr/wp-content/uploads/2026/01/2026-01-21-

(231) ACER, Electricity Country Sheets, 18 July 2025. 

dt-eletaen-statistics-2025.pdf. 

83 

 
 
 
Member  States  in  terms  of  electricity  generation 
from  photovoltaics.  Moreover,  it  is  starting  to 
position  itself  as  a  key  electricity  exporter  after 
2025  marked  the  second  year  in  a  row  in  which 
Greece  was  a  net  electricity  exporter.  Greece’s 
was 
electricity 
revenue 
EUR 972 million, while its balance of trade showed 
a surplus of EUR 261 million. 

exports 

from 

Greece has made progress in speeding up the 
permit-granting  process  for  renewables, 
however  it  could  go  further  to  address 
certain  outstanding  practical  issues  relating 
permitting  deadlines  and  delayed 
to 
connections  to  the  grid.  While 
the  first 
designated  renewables  acceleration  areas  have 
been  reserved  for  offshore  wind  farms  (up  to 
600 MW) 
further 
implementation  is  pending.  In  the  meantime, 
Greece  has  successfully  developed  dedicated 
regulatory sandboxes for innovative projects in the 
field 
related 
infrastructure and has set up mechanisms so that 
the  permitting  process  prioritises 
repowering 
projects over greenfield projects. 

renewable 

northern 

Greece, 

energy 

and 

of 

in 

In  its  updated  national  energy  and  climate 
plan, Greece has set more ambitious targets 
for  renewables,  namely  43%  by  2030  and 
95.8%  by  2050  as  a  share  of  gross  final 
energy consumption, and 75.7% by 2030 and 
100.8%  by  2050  as  a  share  of  gross  final 
electricity consumption. Greece plans to have a 
total installed capacity of 27.5 GW by 2030 across 
all  forms  of  renewables,  including  1.9 GW  of 
offshore  wind,  and  a  total  of  64.4 GW  by  2050. 
However,  these  targets  will  only  be  achievable  if 
accompanied by the deployment of energy storage 
facilities and upgrades to the grid. 

Graph A9.3: Greece’s installed renewable capacity 
vs electricity generation mix 

Electricity mix is given as net electricity generation (gross 
electricity production minus consumption of power stations’ 
auxiliary services). Electricity produced in pumped hydro 
plants is excluded from total net electricity production, as it 
was previously counted as electricity produced from another 
source. 
“Other” includes renewable municipal waste, solid biofuels, 
liquid biofuels, and biogas. 
Source: IRENA, Eurostat 

The  Hellenic  Energy  Exchange  (HEnEx)  has 
launched  a  platform  for  power  purchase 
(PPAs)  and  created  a  PPA 
agreements 
contract template in line with the platform’s 
rulebook.  Under  its  PPA  scheme  signed  in  2021, 
Greece  expected  to  auction  an  additional  4.2 GW 
of installed capacity by 2025 (237). However, while 
its industrial  PPA  framework  prioritises  renewable 
projects with a total capacity of up to 2 360 MW – 
allowing for a 20% deviation in installed capacity 
under the framework – renewables producers have 
been  faced  with  serious  problems  following  a 
prolonged freeze on granting connection terms for 
industrial  PPAs  in  2025,  carrying  the  risk  that 
project  deadlines  may  not  be  met.  No  Contracts 
for Difference support schemes providing liquidity 
for PPAs have been reported. 

of 

energy 
renewable 
number 
The 
communities  remains 
largely  unchanged, 
even  showing  signs  of  decreasing.  As  of 
there  were  1 703  energy 
September  2025, 
communities (all  legal  forms  combined)  operating 
in  Greece,  against  a  backdrop  of  persistent 
challenges  relating  to  grid  access  and  project 
maturity. Compared to the previous inventory from 
September 2024,  there  were  32  new  energy 
communities, although 52 were either cancelled or 

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

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

84 

 
 
 
converted. In this regard, Greece’s energy regulator 
(RAAEY) issued an important decision on ownership 
concentration  in  October 2025  which  will  impact 
the  establishment  and  operation  of  energy 
communities. 

Energy efficiency 

Greece  has  made  no  progress  towards 
improving  energy  efficiency,  with  FEC  in 
2024  increasing  by  3.8%  to  16.3 Mtoe,  as 
compared  to  2023,  continuing  the  upward 
trend  observed  since  2019.  Greece’s  FEC  in 
2024  deviated  slightly  from  the  trajectory  for 
meeting  its  expected  contribution  by  2030.  While 
in the transport sector FEC increased substantially 
(+7.5%  since  2019),  in  industry  and  services  it 
decreased  slightly  (-3.4%  and  -2.0%  respectively 
since  2019)  and  in  the  residential  sector  it 
decreased  substantially 
(-8.1%  since  2019). 
Greece has introduced a framework for a range of 
funding  mechanisms, 
new  energy-efficiency 
however  the  mechanisms  themselves  are  still 
under preparation. 

including  energy 

The aforementioned decrease in final energy 
consumption  in  Greece’s  residential  sector 
was driven both by milder temperatures and 
by  structural  improvements  to  the  building 
renovations (238). 
stock, 
Nevertheless,  Greece  will  need  to  step  up  its 
efforts  in  this  area  to  reach  the  objectives  set  in 
its 2020 long-term renovation strategy. Given that 
buildings are responsible for 33% of energy use in 
Greece,  they  play  an  important  role  in  improving 
energy  efficiency.  Greece  is  therefore  encouraged 
to  submit  its  draft  national  building  renovation 
plan pursuant to the recast Energy Performance of 
Buildings  Directive  in  order  to  ensure  a  clear  and 
predictable  pathway  towards  an  energy  efficient 
and  decarbonised  building  stock.  Heating  and 
cooling  account  for  74%  of  Greece’s  residential 
final  energy 
renewables 
supplying  36%  of  the  total  energy  used.  Greece 
labelling 
reported  13  eco-design  and  energy 
checks in 2025, less than the previous year. This is 
considered  insufficient  relative  to  the  size  of  the 
country  and  overall  levels  of  non-compliance  in 
the EU. 

consumption,  with 

Security of supply and diversification   

remained 

Despite  some  progress  in  increasing  the 
share of renewables/biofuels and decreasing 
the  share  of  coal,  Greece’s  energy  mix  in 
2024 
fossil 
fuels (239).  More  specifically,  oil  and  natural  gas 
together  accounted  for  76%  (53%  and  23% 
respectively) 
energy  mix,  while 
renewables/biofuels  increased  to  20.2%  and  coal 
fell to 3.5%. 

dependent 

the 

on 

of 

Greece  has  not  yet  phased  out  Russian  gas, 
but  has  made  significant  efforts 
to 
strengthen  its  supply  security  and  diversify 
its  natural  gas  sources  through  major 
infrastructure  investments  to  increase  its 
import  capacity  for  liquefied  natural  gas 
(LNG). Greece’s role as a transit country is crucial 
to  diversification  efforts  in  the  wider  region,  as 
demonstrated by the fact that natural gas exports 
tripled  in  2025  (+196%)  in  comparison  to  2024. 
Revithoussa  LNG  terminal  accounted  for  38%  of 
total  natural  gas  imports,  up  63.3%  compared  to 
2024,  while  the  United  States  remained  the 
largest  LNG  supplier,  providing  86%  of  Greece’s 
total  LNG  imports,  marking  a  sharp  increase  of 
+98%  compared  to  2024.  Importantly  Greece  did 
not import any Russian LNG in 2025, in contrast to 
2024, where it accounted for 15.3% of total  LNG 
imports (240).  Greece’s  important  role  was  further 
highlighted  by 
commercial  agreement 
concluded in 2025 for LNG from the United States 
to  be  exported  from  Greece  to  Ukraine  via  the 
Vertical Corridor. 

the 

In  response  to  the  regional  crisis  in  the 
imposed  profit 
Middle  East,  Greece  has 
margin  caps  of  €0.05/litre  for  wholesalers 
and  €0.12/litre  for  retailers  until  30  June 
2026.  Additional  measures  include  a  €0.16/litre 
diesel  subsidy  for  April  2026,  a  "Fuel  Pass" 
providing 
vulnerable 
households,  and  a  15%  fertiliser  subsidy  for 
farmers.  Greece  contributed  to  the  IEA  collective 

€25-€50/month 

for 

(239) Source: Eurostat. Electricity and heat are excluded from gross 
inland consumption to avoid double-counting. The focus is on 
primary energy sources.  

(238) https://www.indicators.odyssee-mure.eu/decomposition.html. 

(240) DESFA data on Natural Gas consumption in 2025. 

85 

 
 
 
action to release 400 million barrels of emergency 
oil reserves, contributing 2 million barrels. 

Fossil fuel subsidies 

in  the 

in  particular 

Greece has taken action to address the 2025 
country-specific  recommendation  on  taking 
concrete  steps  to  phase  out  fossil-fuel 
subsidies 
industrial 
sector.  In  2024,  environmentally  harmful (241) 
fossil  fuel  subsidies  without  a  planned  phase-out 
before 2030 decreased to 0.48% (242)  of Greece’s 
GDP (243)  (above  the  EU  weighted  average  of 
0.32%),  however,  this  decline  was  mainly  due  to 
lower  energy  prices  in  2024.  Greece  has  not 
announced a phase-out date or phase-out plan for 
its different ongoing fossil fuel support measures. 
tax  exemptions  on 
Greece  operates  excise 
petroleum  products  used 
inland  water 
navigation,  kerosene  used  in  domestic  air  traffic 
and  coal  and  coke  used  for  industrial  purposes 
(e.g. chemical  reduction,  electrolysis  metallurgical 
processes).  These  fossil  fuel  subsidies  have  no 
planned  phase-out  before  2030  and  do  not 
specifically  address  energy  poverty  or  genuine 
energy  security  concerns. Greece’s  2023  Effective 
Carbon  Rate (244)  averaged  EUR 86.7  per  tonne  of 
CO₂,  slightly  above  the  EU  weighted  mean  of 
EUR 84.80 (245). 

in 

(241) Explicit fossil fuel subsidies (e.g. direct transfers) and implicit 
fossil fuel subsidies (i.e. tax expenditures linked to forgone 
tax revenues that have an identifiable fiscal impact for the 
central budget) that support fossil fuel energy production, 
transmission and/or consumption. 

(242) European Commission calculation based on underlying data 
from the Study on energy subsidies and other government 
interventions in the EU – 2025 edition, Enerdata. 

(243) 2023 2024 Gross Domestic Product at market prices, 

Eurostat. 

(244) 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. 

(245) OECD (2024), Pricing Greenhouse Gas Emissions 2024. 

86 

 
 
ANNEX 10: CLIMATE ADAPTATION, PREPAREDNESS AND ENVIRONMENT 

Greece  has  a  comprehensive  and  legally 
binding framework for climate adaptation in 
place,  but  actual 
implementation  and 
monitoring  remain  an  issue.  As  highlighted  in 
last  year’s  Country  Specific  Recommendations 
(CSR),  Greece’s  high  exposure  to  climate  change 
impacts  calls  for  significant  investments  across 
sectors  (including  further  progress  on  systematic 
infrastructure)  and 
climate  proofing  of  key 
increase  of  insurance  coverage  to  limit  macro-
fiscal impacts in the future. 

and 

and 

habitat 

Greece  faces  challenges  that  are  mainly 
to  water  scarcity,  wastewater 
related 
treatment, 
nature 
degradation.  Greece  is  struggling  with  severe 
water scarcity (particularly in Attica and Crete) and 
water productivity in Greece is one of the lowest in 
the  EU  (EUR 23  per  m³  of  abstracted  water  in 
2022). Drinking water quality is not a concern, but 
Greece  faces  problems  with  drinking  water  leaks, 
mainly due to ageing infrastructure. Greece has a 
good  compliance  rate  with  the  Urban  Waste 
Treatment  Directive,  but  several  agglomerations 
have  not  yet  complied, 
three 
infringement procedures. Greece also faces issues 
of  habitat  degradation  that  are  mainly  driven  by 
transport 
agriculture, 
development  and  by  nature  degradation  due  to 
invasive  alien  species.  For  Greece, the  2025 CSRs 
highlighted  the  need  to  reform  the  institutional 
capacity  and 
framework 
accountability of local water service providers and 
the  Regulatory  Authority  for  Energy,  Waste  & 
Water  (RAAEY)  has  taken  some  steps  to  address 
this issue. 

infrastructure 

resulting 

improve 

and 

the 

to 

in 

Climate adaptation and preparedness 

significant 

investment 

Greece  is  very  exposed  to  the  impacts  of 
climate  change  and  addressing  this  will 
require 
across 
multiple  sectors.  Greece  belongs  to  two  of  the 
three  types  of  regions  identified  as  hotspots  of 
low-lying 
climate  risks:  southern  Europe  and 
coastal  regions (246).  In  recent  years,  Greece  has 
experienced  a  wide  range  of  extreme  weather 
events,  including  floods,  heatwaves,  wildfires  and 

(246) EEA, 2024, European Climate Risk Assessment p. 18. 

87 

droughts. Wildfires are a particularly acute risk: an 
average  of  0.38%  of  Greece’s  territory  burned 
each  year  between  2006  and  2024  (the  third-
highest  rate  in  the  EU) (247).  The  Alexandroupolis 
wildfire of 2023 was the largest  ever recorded in 
the  EU.  The  increasing  frequency  and  intensity  of 
wildfires  could  overwhelm  emergency  response 
capacities  and  deplete  rescue  resources.  Flooding 
also  remains  a  major  concern.  In  2023,  Storm 
Daniel  brought up to 80 cm of rainfall in a single 
day,  triggering  widespread  flooding  in  central 
Greece  and  increasing  the  risk  of  water-borne 
diseases  (including  leptospirosis) (248).  Similarly,  if 
current levels of coastal protection are not raised, 
direct economic damages and social impacts from 
coastal  flooding  in  Greece  are  projected  to  rise 
sharply  this  century (249).  Heat  stress  is  another 
growing  challenge: 
in  summer  2024,  Greece 
recorded  574  excess  summer  deaths  per  million 
inhabitants –  one  of  the  highest  heat-related 
mortality  rates  in  the  EU (250).  Without  further 
adaptation measures, heat-related mortality could 
increase up to fortyfold (251). 

investment  need 

for 
Greece’s  annual 
adaptation  to  climate  change  is  one  of  the 
highest in the EU. A recent study commissioned 
by the Commission estimates these needs at 0.7% 
of  the  GDP  (EU  average: 0.5%) (252).  The  fact  that 
46%  of  its  total  needs  are  directly  connected  to 
urgent risks underlines the immediate relevance of 
targeted action (253). 

(247) EFFIS – Statistics Portal. 

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

(249) https://joint-research-

centre.ec.europa.eu/document/download/8f22629d-b9bf-
40ed-99b6-
6385a95028ab_en?filename=pesetaiv_task_6_coastal_fina
l_report.pdf. p 6. 

(250) Heat-related mortality in Europe during 2024 and health 
emergency forecasting to reduce preventable deaths | 
Nature Medicine. 

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

(252) European Commission, 2026, Assessment of EU and 

Member States adaptation investment needs, Table 25. The 
study provides detailed estimates of adaptation investment 
needs at the level of the EU and individual Member States 
per type of measure. It relies on a common methodology 
that makes estimates comparable across the EU. Four 
accompanying methodological reports provide a detailed 
description of how the results were estimated to ensure full 
transparency. 

(253) Assessment of EU and Member States adaptation 

investment needs - Publications Office of the EU, p. 57. 

 
 
 
 
 
 
is 

is 

(including 

composed 

in  Greece 

change,  which 

A  comprehensive  and  legally  binding  policy 
to 
in  place 
framework 
considerations 
adaptation 
mainstream 
across 
but 
regions, 
and 
sectors 
issue  at  all 
implementation  remains  an 
levels (254). The national council for adaptation to 
climate 
of 
representatives from ministries, non-governmental 
trade  unions,  academia  and 
organisations, 
industry,  promotes  the  monitoring  of  policies  for 
climate  adaptation.  Greece  is  currently  preparing 
the  revision  of  the  10-year  national  climate 
change adaptation strategy (255). This will take into 
account the updated national multisectoral climate 
change impacts and vulnerabilities assessment as 
well  as  major  EU-level  developments  related  to 
the  European 
climate  adaptation 
Climate  Resilience  and  Risk  Framework  currently 
under  preparation).  However,  the  need  to  address 
climate resilience comprehensively and the limited 
administrative  resources  available  have  together 
limited  sectoral  mainstreaming.  Looking  at  the 
sub-national  level,  Greece  has  a  well-structured 
system  to  support  adaptation,  with  regional 
authorities  playing  a  crucial  role.  As  required  by 
their  national  climate  law,  Greece’s  13 regions 
have a climate adaptation plan in place. However, 
the limited resources in place have hampered the 
proper 
its 
mainstreaming  across  sectors.  Greek  regions  and 
local authorities are among the most active in the 
EU  in  developing  local  climate  action  plans.  50% 
of the Greek population lives in municipalities that 
are  signatories  to  the  EU  Covenant  of  Mayors 
commitments.  Moreover,  63%  of  the  signatories 
have a 2030/2050 action plan and 37% of those 
action  plans  have  at  least  one  monitoring  report. 
13  of  the  Covenant  signatories  are  taking  part  in 
the  EU  mission  on  adaptation 
to  climate 
change (256). 

implementation  of  the  plans  and 

Climate  risks  have  a  direct  and  significant 
impact  on  Greece’s  economy,  but  the 
insurance  coverage  remains  low.  Between 
1980  and  2024,  Greece  recorded  EUR 18.3 billion 
in  economic  losses (257)  caused  by  weather  and 

(254) See the Greek National Climate Law: ΕΦΗΜΕΡΙΔΑ ΤΗΣ 

ΚΥΒΕΡΝΗΣΕΩΣ. 

(255) This revision is taking place within the framework of the 

AdaptInGR project funded by LIFE. 

(256) Greece | EU Covenant of Mayors. 

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

related extremes in Europe. 

88 

climate-related  extreme  events (258).  The  latest 
studies  show  that  extreme  weather  events  are 
likely to have a prolonged and intensifying impact 
on economic activity in Greece (259). However, only 
5% of all economic losses caused by weather and 
climate related extreme events between 1980 and 
2024  were  covered  by  insurance (260).  The  largest 
risk  in  terms  of  insurance  gap  comes  from 
wildfires (261).  In  recent  years,  Greece  has  taken 
measures  to  increase  insurance  coverage (262), 
including  through  property  tax  incentives  and 
mandatory  private  natural  disaster  insurance  for 
certain  companies (263).  The  level  of  insurance 
coverage  nevertheless  remains 
low,  and  the 
impact  of  recently  adopted  tax  incentives  still 
needs  to  be  properly  assessed.  The  recently 
established  Natural  Disasters  Private  Insurance 
Observatory  is  currently  preparing  a  national 
strategy  that  would  set  concrete  policies  and 
guidelines  as  well  as  establish  a  monitoring 
system  that  would  be  key  to  addressing  this 
challenge. 

integrated 

Greece  has  made  only  limited  progress  on 
climate-proofing infrastructure and it is still 
not applied systematically across all sectors 
–  despite  the  high  risks  of  climate  change. 
Since  late  2024,  climate  resilience  has  been 
the  environmental 
into 
formally 
permitting process for all projects and activities in 
Greece  (including  water  infrastructure  projects). 
Moreover,  in  order  to  assess  the  impacts  of 
climate  change,  Greece  is  currently  finalising  the 
updated  national  multisectoral  climate  change 
impacts  and  vulnerabilities  assessment.  However, 
critical  infrastructure  still  remains  vulnerable  to 
the impacts of climate change. This is the case for 
the transport sector. The vulnerability index of the 

(258) ECB and EIOPA, 2024, Towards a European system for 

natural catastrophe risk management, Chart 2. 

(259) Usman, Parker and Vallat, 2025, Dry-roasted NUTS: early 

estimates of the regional impact of 2025 extreme weather, 
pp. 9-14. 

(260) Economic losses from weather- and climate-related 

extremes in Europe | Indicators | European Environment 
Agency (EEA). 

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

related extremes in Europe.  

(262) Dashboard on insurance protection gap for natural 

catastrophes – European Insurance and Occupational 
Pensions Authority. 

(263) Greek Laws 5116/2024 (GG A 100) and 5162/2024 

(GG A 198). 

 
 
 
TEN-T  network  to  climate  change  has  therefore 
been  assessed  as  one  of  the  highest  in  the  EU. 
This is mainly driven by the lack of mainstreaming 
of the transport sector into the national adaptation 
strategy,  limited  logistic  capacity  and  limited 
availability  of  adequate  funds  to  effectively 
respond  to  climate-related  disruptions (264).  An 
estimated  total  of  EUR 5.7 billion  will  need  to  be 
invested  until  mid-century  in  TEN-T,  mostly  in 
railways 
maritime  ports 
(EUR 1.6 billion) (265).  Greece  does  not  have  an 
overall  comprehensive  strategy  that  coordinates 
all  sectoral  efforts  and  authorities  in  order  to 
properly address such a major challenge. 

(EUR 2.2 billion)  and 

Water resilience 

faces 

severe  water 

scarcity, 
Greece 
particularly  in  Attica  and  Crete.  Agriculture 
and  water  utilities  are  among  the  most  water-
dependent sectors. The national water exploitation 
index (266)  (WEI+)  (a  measure  of  how  much  water 
is  being  used  compared  with  the  total  renewable 
freshwater resources available for a given territory 
and period) indicates high pressure on water, even 
though  it  is  below  the  water  scarcity  overall 
threshold  of 20%.  The  Joint  Research  Centre’s 
European Drought Risk Atlas indicates that Greece 
is  one  of  the  Member  States  facing  the  highest 
risk  of  hydropower  reduction  and  had  one  of  the 
largest  average  annual  relative  reductions  in 
barley and rice yield due to drought (267). 

Greece’s  water  productivity (268)  was  EUR 23 
per m³ of abstracted water in 2022. This was 
one  of  the  lowest  in  the  EU  (far  below  the  EU 

(264) European Commission, 2024, Support study on the climate 

adaptation and cross-border investment needs to realise the 
TEN-T network, Table 4.6, Publications Office of the 
European Union. 

(265) European Commission, 2024, Support study on the climate 

adaptation and cross-border investment needs to realise the 
TEN-T network, Table 4.28, Publications Office of the 
European Union. 

(266) Eurostat, Water Exploitation Index, plus. 

(267) Rossi et al. (JRC), 2023, Publications Office of the European 

Union, European Drought Risk Atlas. 

(268) Water productivity is a metric that is calculated by dividing 
GDP (in chain-linked volume) by total water abstraction. It 
indicates the average economic value (GDP) a Member State 
creates for each unit of water it takes from nature. 

89 

trend). 

average  of  EUR 153  per m³),  reflecting  critical 
reliance  on  water  for  agriculture  and  indicating 
significant pressure on water resources (despite a 
slight  upward 
In  2023,  agriculture 
accounted  for  81.1%  of  total  water  abstraction, 
with public water supply at 15.2%, manufacturing 
at 2.2% and energy production at 1.2% (269). Since 
2014,  abstraction  has  fallen  by  12%,  while 
reliance  on  surface  water  (44%  of  abstraction  in 
2023)  rather  than  groundwater  has  remained 
steady. 

The  number  of  surface  water  bodies 
achieving a good  ecological  status in  Greece 
remains  high.  Its  first,  second  and  third  river 
basin  management  plans  (RBMPs)  indicate  a 
fluctuating  but  overall  increasing  trend,  from 
to  65.4% (270).  The  most 
41.9% 
important  pressures  are  mainly  pollution  from 
agriculture  and  municipal  and  industrial  waste. 
environmental 
Insufficient 
legislation  and  water  management  practices  also 
contributes to the problem. 

enforcement 

to  63.8%, 

of 

Greece’s  good  chemical  status  is  one  of  the 
highest  in  the  EU.  Greece’s  third  RBMP 
reports  that  92.2%  of  water  bodies  have 
achieved  a  good  status (271).  This  was  an 
increase  on  the  previous  RBMP  cycle,  when  the 
percentage stood at 88.6%. 

Greece’s drinking water quality does not give 
rise 
faces 
to  concern.  However,  Greece 
significant  challenges  with  ageing  infrastructure 
and is losing significant amounts of drinking water 
due to leaks. 

Greece  has  initiated  reforms  and  funded 
several  actions  through  its  recovery  and 
resilience  plan  (RRP)  and  cohesion  policy 
funding. Greece has established a new water and 
wastewater regulatory authority, which is expected 
to  strengthen  the  institutional  framework  and 
supervise  the  sector  (including  by  rationalising 
water  tariff  policy  in  line  with  the  ‘polluter  pays’ 
principle  and  ensuring  the  sustainability  of  water 
services  in  Greece).  Greece  also  has  projects  on 
water  supply,  urban  wastewater  and  sludge 

(269) EEA, 2025, Water abstraction by economic sector, 2000-

2023. 

(270) WISE, Surface water Bodies: ecological status or potential. 

(271) WISE, Surface water bodies: Chemical status. 

 
 
 
management,  flood  mitigation  and  drinking  water 
supply.  A  significant  increase  in  cohesion  policy 
funding (in the context of the mid-term review) is 
expected  to  support  the  necessary  actions  on  the 
ground. 

Greece  has  a  good  compliance  rate  with  the 
Urban  Waste  Treatment  Directive  (Directive 
91/271/EEC).  It  reached  95.7%  in  2022  (down 
from  98%  in  2020).  However,  several  larger 
agglomerations did not comply with the Directive’s 
requirements.  Three 
infringement  proceedings 
(each at a very advanced stage) are open against 
Greece  for  non-compliance.  The  CJEU  has  issued 
delivered judgments for two of these infringement 
procedures  (against  agglomerations  in  eastern 
Attica and Thriasio Pedio) and Greece will continue 
to pay fines until it complies with those judgments. 
continuing  non-compliance  with  CJEU 
This 
judgments 
in 
indicates  systemic  weaknesses 
Greece’s administrative system (272). 

Correcting  non-compliance  situations  for 
wastewater  collection  and  treatment 
in 
investment  of 
Greece  requires  a  total 
EUR 1 503 million 
The 
in 
investment needs for collection systems alone are 
EUR 1 079 million,  while  expected  EU  funding  is 
EUR 917 million.  For  treatment  plants,  planned 
investment is EUR 424 million, with EU funding of 
EUR 346 million (273). 

2024-2030. 

Nature restoration 

Greece’s  economy  is  structurally  exposed  to 
nature  loss  because  it  is  among  the  EU 
Member  States  with  the  highest  dependency 
on  ecosystem  services (274).  More  than  half  of 
gross value added relies directly on the ecosystem 
(58%)  –  well  above  the  EU  average  of  44%.  This 
in  the 
vulnerability 
tourism  sector,  which  is  vital  for  Greece  and 
depends  directly  on  healthy  coastal,  marine  and 
Greece’s  marine 
terrestrial 

is  particularly  significant 

ecosystems. 

ecosystems  are  increasingly  exposed  to  climate 
change,  including  rising  sea  temperatures,  marine 
heatwaves  and  ocean  acidification.  In  the  Eastern 
Mediterranean,  these  pressures  interact  with  the 
rapid  expansion  of  invasive  alien  species (275)  and 
existing  environmental  degradation,  affecting 
ecosystem  stability  and  fish  stocks  resilience (276). 
Strengthening  monitoring,  data  collection  and 
fisheries  control  is  key  to  support  ecosystem-
based  management  and  safeguard  biodiversity 
under growing climate pressures. 

Greece’s  has  exceptionally  rich  biodiversity 
(protected  areas  make  up  34.6% (277)  of  its 
territory),  but  there  is  significant  habitat 
degradation. The main pressures and threats for 
habitats  in  Greece  are  related  to  agriculture, 
infrastructure  development,  the  development  and 
operation  of 
transport  systems,  alien  and 
problematic species and natural processes (278). 

Nature  degradation 
is  exacerbated  by 
invasive  alien  species.  25  cases  were  recorded 
in Greece in 2024, inflicting estimated damage of 
EUR 80 million  up  to  2020,  primarily  affecting 
agriculture  and  public  health (279).  At  the  same 
time,  eutrophication  (a  threat  to  biodiversity  and 
ecosystem  integrity)  continues  to  cause  concern. 
The  areas  at  risk  have  remained  at  100%  since 

(275) GFCM/FAO Recalling the importance of non-indigenous 

species (NIS) in the subregion, the Commission encouraged 
partners participating in the NIS pilot study in the eastern 
Mediterranean to continue towards its full implementation 
and finalization in support of NIS management. It further 
agreed to advance on the operationalization of the NIS 
observatory in Türkiye according to the guidelines endorsed 
by the forty-seventh session of the GFCM. Furthermore, the 
Commission acknowledged the potential of NIS to modify 
catch composition, also prompting shifts in fisher behaviour. 
It emphasized the importance of assessing these changes 
within an ecosystem-based framework, with the dual 
objective of mitigating potential ecological risks and 
maximizing the possible opportunities of emerging fisheries 
through informed adaptation and resource targeting. 

(276) The Mediterranean Sea is recognised by the EEA as a 

climate-change hotspot, with rising sea temperatures, more 
frequent marine heatwaves and ongoing acidification. JRC 
and HCMR studies document the rapid expansion of invasive 
alien species in the Eastern Mediterranean, affecting local 
ecosystems and fish stock resilience. 

(272) European Commission, Environmental Implementation 

(277) Eurostat, Protected Areas Indicator. 

Review (2025), Greece country report. 

(273) Ibid. 

(278) European Commission, 2025, Environmental Implementation 

Review, Greece country report. 

(274) Hirschbuehl et al. (JRC), 2025, The EU economy’s 

(279) Neobiota, 2021, Economic Cost of invasive alien species 

dependency on nature, Vasilakopoulos, P. editor(s), European 
Commission 

across Europe. European Commission, 2025, Environmental 
Implementation Review, Greece Country Report. 

90 

 
 
 
2005 (280).  Nitrogen  deposition  from  agriculture 
and industrial combustion remains a critical driver 
of this degradation. 

Greece  has  a  persistent  biodiversity  finance 
gap.  It  faces  an  estimated  EUR 1 391 million 
shortfall 
in  funding  for  projects  to  address 
conservation  priorities,  despite  cohesion  policy 
investment  of  over  EUR 320 million.  This  shortfall 
underscores  the  need  for  increased  investment  in 
habitat restoration. 

Sustainable agriculture and land use 

Greece  is  on  track  to  meet  its  2030  target 
for  land  use,  land-use  change  and  forestry 
(LULUCF).  To  meet  its  2030  LULUCF  target, 
additional  carbon  removals  of  1.2 million  tonnes 
of  CO2 equivalent  (CO2-eq)  are  needed (281).  The 
latest available projections indicate that this target 
will be achieved, with a surplus over the target of 
around 1 MtCO2-eq. 

Greece  faces  environmental  and  public 
health  risks  due  to  over-extraction  for 
agriculture  and  contamination  by  pesticides, 
fertilisers  and  nitrates.  Greece’s  functional 
urban  area  has  not  expanded  considerably  in  the 
last  few  years.  Indeed,  the  rate  of  net  land 
increase between 2018 and 2021 was one of the 
lowest in the EU (282). 

Water  quality  pressures  are  a  cause  for 
concern.  Under  the  EU  Nitrates  Directive,  24.2% 
of  Greece’s  groundwater  monitoring  stations 
recorded average nitrate concentrations exceeding 
25 mg/l  (and  11.9%  above  50 mg/l,  the  EU 
threshold  for  safe  drinking  water)  between  2016 
and  2019 (283).  This  trend  underscores  systemic 
agricultural  pressures,  despite  Greece‘s  livestock 
density  (0.7  livestock  units  per  hectare  in  2020) 
being slightly below the EU average of 0.75 (284). A 

(280) EEA, Eutrophication caused by atmospheric nitrogen 

deposition in Europe 2024. 

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

Regulation (EU) 2023/839. 

(282) EEA, 2022, Land take and land degradation in functional 

urban areas. 

(283) EEA, 2025, Nitrate in groundwater in Europe. 

(284) Eurostat, Livestock density index. 

slight  1%  reduction  in  the  already  relatively  low 
levels of agricultural ammonia emissions between 
2018  and  2023 (285)  underscores 
improved 
emissions  control.  Greece  has  been  assessed  as 
being  on  track  to  meet 
its  2030  reduction 
commitments (286).  However,  persistent  nitrate 
pollution  indicates  gaps  in  nutrient  management 
strategies. 

in  Greece 

contamination 

is 
Pesticide 
relatively  low.  10%  and  0%  of  river  and  lake 
water  bodies,  respectively,  exceed  regulatory 
thresholds  for  pesticide  residues (287).  The  EU’s 
total contaminated area represents 27% and 18% 
of river and lake water bodies. Pesticides not only 
threaten  aquatic  ecosystems  but  also  pose  long-
term  risks  to  human  health  due  to  contaminated 
drinking  water  and  food  chains.  However,  soil 
contamination over 0.05 mg/kg has been found in 
42% of the soil samples examined in Greece (288). 

(285) EEA, Air pollutant emissions data viewer (Gothenburg 

Protocol, Air Convention) 1990-2023. 

(286) EEA, 2025, Magnitude of emission reductions (percentage) 
required by EU Member States to meet their emission 
reduction commitments for 2030 onwards, based on 2023 
data. 

(287) EEA, 2024, Pesticides in rivers, lakes, and groundwater in 

Europe. 

(288) Vieira et al. (JRC), 2023, Pesticides residues in European 

agricultural soils – Results from LUCAS 2018 soil module, 
Publications Office of the European Union. 

91 

 
 
 
Table A10.1:Key Adaptation Indicators 

(1) EFFIS (European Forest Fire Information System). 
(2) The climate protection gap refers to the share of non-insured economic losses caused by climate-related disasters, based on modelling of the 
risk from floods, wildfires and windstorms and on the insurance penetration rate. Scale: 0 (no protection gap) – 4 (very high gap). EIOPA, 2025, 
Dashboard on insurance protection gap for natural catastrophes.  
(3) This 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 severe water scarcity. 
(4) European Commission, 2024, Seventh 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).  
(5) Indicator refers to concentrations of nitrate (NO3) in groundwater, measured as milligrams per litre (mgNO3/L). Nitrate 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 is limited to 50 mgNO3/L to avoid threats to human health.  
(6) Net removals are expressed in negative figures and net emissions are expressed in positive figures. Reported data are from the 2025 
greenhouse gas inventory submission. The 2030 value of net greenhouse gas removals is taken from Regulation (EU) 2023/839 – Annex IIa. 
Sources: Eurostat, EEA and JRC. 

92 

Climate adaptation and preparedness:EU-27201920202021202220232024latest dataDrought impact on ecosystems0.541.296.675.641.53-2.76[area impacted by drought as % of total]Forest fires burned area (1)10 689     14 915     130 694   22 480     174 773   41 837     354 510     [burned area in ha. per year]Economic losses from extreme events303          1 165       671          22            3 996       341          40 452       [EUR million at constant 2022 prices]Insurance protection gap (2)---2              2              2               -[composite score between 0 and 4]Sub-national climate adaptation action28            31            41            42            44            46            34               [% of population covered by the EU Covenant of Mayors for Climate & Energy]Water resilience:EU-27201920202021202220232024latest dataWater Exploitation Index Plus, WEI+ (3)12.04       13.65       9.22         13.99       13.16       -4.53            [total water consumption as % of renewable freshwater resources]Water productivity19            17            19            23            23            -151[EUR per m3]Water abstractionWater abstraction by source (% from surface water)38.43%38.52%38.30%43.94%43.86%-Water abstraction by sectorAgricultureElectricity coolingManufactu-ringPublic water supplyMining and QuarryingConstru- ction 81.15%1.30%2.25%15.30%0.00%0.00%Status of water bodies (4)[% of water bodies in a good status]Surface water bodies (ecological)-----65%38%Groundwater bodies (quantitative)-----86%93%Nature restoration:EU-27201920202021202220232024latest dataEcosystem dependency---58%--44%[% of direct dependency]Protected area34.634.634.734.734.626.4[% of terrestrial protected areas]Invasive alien species (IAS)-----2529.2[number of IAS of Union concern]Damage cost of IAS----0.081.69[EUR billion]Eutrophication 369369295[AAE of area at risk of euthrophication]Sustainable agriculture and land use:EU-272012-20182018-2021latest dataYearly net land taken by Member State319          298          670            [ppm of total urban surface per Member State]Land conversion in functonal urban area [% of total land taken from 2018-2021]Arable land46%Complex and mixed cultivation6%Forests1%Herbaceous vegetation associations27%Open spaces with little or no vegetation0%Pastures14%Permanent crops6%Water0%Wetlands0%201920202021202220232024latest dataNitrates in groundwater (5):::::[mgNO₃/l]Livestock density0.70.710.75(number of livestock units per hectare of utilised agricultural area)Ammonia emissions 92%92%92%91%91%-94%[% of total utilised agricultural area]Pesticide contamination on rivers and lakes water bodiesrivers10%27%[% of monitoring sites with pesticides exceeding thresholds, 2018-2023]lakes0%18%Pesticide contamination in soil 42%57%[% of samples with a concentration over 0.5 mg/Kg⁻¹]Net greenhouse gas removals from LULUCF (6)-5082.4-5147.3-5046.5-5180.5-4103.0--198 421 [ktCO₂-eq] 
 
       
 
FAIRNESS 
ANNEX 11: LABOUR MARKET 

to 

Greece’s  labour  market  keeps  improving, 
although structural challenges remain. On the 
back  of  a  growing  economy,  unemployment  kept 
declining  in  2025,  dropping  below  9%.  Employee 
nominal  wages  are  expected 
rise,  and 
employment  is  expected  to  continue  growing, 
albeit at a slower pace than in recent years. This is 
due  to  structural  issues,  such  as  skills  gaps  and 
low  participation  among  women  and  vulnerable 
groups.  Labour  shortages  and  skills  mismatches 
persist,  while  demographic  decline  and  regional 
economic  disparities  affect 
labour  market 
performance.  As  Greece  works  towards  achieving 
its  2030  employment  target,  the  expansion  of 
integrated  activation  measures, 
targeted  and 
addressing  skills  mismatches  and  improving  job 
quality will be key to achieving a more competitive 
and  inclusive  labour  market.  The  2025  country-
specific recommendations highlighted the need to 
increase the rate of women and vulnerable groups 
in  work  or  looking  for  work  and  help  more  young 
people find work, by promoting more flexible work 
arrangements,  expanding  formal  early  childhood 
care  and  education  and  long-term  care  and 
reinforcing active labour market policies. 

remains 

underused. 

Labour  market  outcomes  are  improving,  but 
a  significant  part  of  the  working-age 
population 
The 
employment  rate  has  continued  its  upward  trend, 
reaching  71.0%  in  2025,  the  highest  since  2015, 
and reducing the gap with the EU average (76.1%). 
The growth in employment has been accompanied 
by  a  steady  decline  in  the  unemployment  rate, 
which  fell  further  to  8.9%  in  2025  (EU: 6.0%). 
Long-term  unemployment  has  been  declining, 
reaching  5.0% in  2025.  These  positive  trends  can 
linked  to  favourable  economic  conditions. 
be 
However, long-term unemployment is nearly three 
times  the  EU  average  of  1.9%.  Labour  market 
slack,  measured  as  unmet  need  for  employment 
within  the  extended  labour  force,  was  13.4%  in 
Q4-2024  and  continued  to  decrease  to  12.4%  in 
Q4-2025  but  remains  above  the  EU  average 
(11.8%).  This  decrease  was  mainly  due  to  the 
reduction  in  the  share  of  unemployed  people  and 
underemployed  people  working  part-time.  Across 
regions, unemployment rates vary, with regions in 
Northern  Greece  such  as  Western  Macedonia 
(15.3%)  and Central  Macedonia (11.7%)  featuring 
higher  rates  due  to  disparities 
in  economic 
performance and access to education and training. 

Graph A11.1: Employment rate by sex, annual 

(1) Employment rates ages 20-64 (% of population) 
Source: Eurostat, LFS [lfsi_emp_a] 

Women’s  labour  market  participation  is  still 
particularly  low.  Although  the  employment  rate 
for  women  increased  to  62.3%  in  2025  from 
59.9%  in  2024,  it  remains  far  below  the  rate  for 
men  (79.7%)  and  the  EU  average  (71.3%).  This 
gender gap of 17.4 pps is one of the widest in the 
EU  and  has  seen  little  improvement  in  over  a 
decade. The situation is even more challenging for 
older women (55-64), as only 49.1% of them were 
in  employment  in  2025  compared  with  70.9%  of 
older  men.  Women  are  also  more 
likely  to 
experience  long-term  unemployment  than  men, 
with  a  reported  rate  of  6.5%  in  2025,  compared 
with  3.7%  for  men.  The  employment  rate  of 
women  with  less  than  secondary  education  is 
25.1 pps behind that of men. Furthermore, 8.4% of 
women worked part-time in 2025, compared with 
2.8%  of  men.  There  are  also  regional  disparities, 
with  mainland  regions  like  Continental  Greece 
(24.8 pps) 
and  Western  Greece 
(29 pps) 
experiencing  larger  gender  employment  gaps.  To 
act on the 2025 country-specific recommendation 
on increasing the rate of women in work or looking 
for work, several actions financed by the European 
Social  Fund  Plus 
(ESF+)  promote  women’s 
participation  in  the  workforce,  including  through 
all-day  schools,  daycare  centres  for  older  people 
and  the  roll-out  of  the  “neighbourhood  nannies” 
programme.  Although  legislative  changes  such  as 
extended  maternity  leave  (in  2024)  and  childcare 
financial  assistance  (in  2025)  are  positive  steps, 

93 

3040506070809020092010201120122013201420152016201720182019202020212022202320242025% population 20-64ELTotalMenWomen 
 
 
  
 
 
they  are  not  enough  to  tackle  the  gender  gap  on 
their  own.  To  help  women  get  into  and  remain  in 
the  labour  market,  targeted  employment  and 
training  programmes  could  be  beneficial,  along 
with  policies 
to  promote  shared  caregiving 
responsibilities,  flexible  working  practices  and 
expanded childcare and long-term care services. 

the  EU  average 

in  employment  nor 

The  employment  situation  of  young  people, 
although improving, remains challenging.  The 
youth (15-29) employment rate reached 36.2% in 
2025, an increase of 6.7 pps compared with 2020. 
However, it remains significantly lower than the EU 
average  (49.1%).  Similarly,  the  proportion  of 
young  people  neither 
in 
education  and  training  (NEETs)  fell  to  13.6%  in 
2025  from  14.2%  in  2024  but  remains  higher 
than 
the 
employment  rate  for  recent  graduates  decreased 
to  62.4%  in  2025,  much  lower  than  the  EU 
average of 83.0%. Regional disparities are evident 
as  well,  with  regions  such  as  North  Aegean 
(31.9%)  and  Western  Macedonia  (31.3%)  facing 
higher  youth  unemployment  rates.  The  indicators 
suggest  difficulties  in  integrating  young  people 
into the labour market after graduation and point 
to  the  need  for  more  effective  and  tailored 
support.  There  is  scope  for  further  action  to 
improve the transition from education to work and 
make more quality work experience available. 

(11.0%).  Also, 

In  2025, 

Weak  labour  market  attachment  is  an  issue 
the 
among  vulnerable  groups. 
disability  employment  gap  reached  35.9 pps, 
increasing  further  by  7.4 pps  compared  with  the 
previous  year.  In  2024,  young  persons  with  some 
or  severe  disabilities  represented  83.7%  of  the 
total  NEETs  in  Greece.  Challenges  also  persist  for 
non-EU  nationals,  with  an  employment  rate  of 
73.9%  in  2025,  9.3 pps  lower  than  the  national 
average.  Marginalised  groups,  such  as  Roma  and 
homeless people, require specific attention to help 
bring  them  into  and  keep  them  in  employment. 
Efforts are being made to boost employment rates 
of vulnerable people. Launched in 2024 under the 
ESF+, 
promotes 
comprehensive  labour  market  strategies  for  non-
refugees  across  Greece. 
EU  nationals  and 
Promoting  social  enterprises  is  also  a  valuable 
mechanism  for  integrating  disadvantaged  groups 
into the labour market. 

the  Helios+ 

programme 

organisational 
These 

significant 
improvements. 

The  Greek  public  employment  service  (DYPA)  has 
and 
undergone 
operational 
include 
structural reforms, improved digital services and a 
stronger focus on skills development and employer 
engagement.  Progress  has  been  made,  which  is 
reflected  in  lower  unemployment  rates  and  the 
deployment  of modernised  ICT  systems.  However, 
challenges  remain  in  making  job-matching  more 
effective, supporting vulnerable groups and further 
aligning  training  programmes  with  labour  market 
needs.  Since  2024,  the  Greek  authorities,  with 
support  from  the  Technical  Support  Instrument, 
have  been  building  digital  solutions  aimed  at  job 
matching 
for  vulnerable  groups,  particularly 
beneficiaries  of  the  guaranteed  minimum income. 
To help people find work, there is scope for better-
targeted 
support  measures, 
accompanied  by  training  programmes  and  other 
social  services  for  people  in  need,  and  more 
effective outreach. 

employment 

Graph A11.2: Labour shortages and job vacancy 
rate 

(1) Job vacancy rate, seasonally adjusted, Sector NACE rev2. 
B-S Industry, construction and services (except activities of 
households as employers and extra-territorial organisations 
and bodies) 
(2) ei_bsbu_m_r2: months averaged per quarter. 
Source: Eurostat [ei_lmjv_q_r2, ei_bsin_q_r2, ei_bsbu_m_r2, 
ei_bsse_q_r2] 

The  public  employment  services  have  been 
modernised, yet the delivery of active labour 
market  policies  could  be  further  improved. 

Greece  faces  labour  shortages  in  several 
sectors.  After  continued  growth  since 
the 
pandemic, Greece's job vacancy rate fell below the 

94 

00.511.522.5301020304050607080902019-Q12019-Q32020-Q12020-Q32021-Q12021-Q32022-Q12022-Q32023-Q12023-Q32024-Q12024-Q32025-Q12025-Q3Job vacancy rate (%)Labour shortages (%)ELIndustryConstructionServicesJob vacancy rate 
  
EU  average  (1.3%  vs  EU:  2.2%)  in  Q4-2025,  a 
decrease  of  0.9%  from  Q1-2025.  However,  this 
aggregate  figure  masks  significant  differences 
across  sectors.  In  Q4-2025,  labour  shortages 
impacted  both  high  and 
lower  value-added 
industries.  Labour  shortages  remain  persistently 
high in sectors such as professional, scientific and 
technical activities (3.6%), construction (3.3%), the 
arts,  entertainment  and  recreation  (2.9%),  and 
water  supply,  sewerage,  waste  management  and 
(2.7%).  Sector-specific 
remediation  activities 
shortages  are  also 
in  employers’ 
perceptions.  In  October  2025,  while  the  share  of 
employers expecting labour shortages to limit their 
production  was  lower  than  the  EU  average  in 
services (16.8% vs EU: 23.1%), it was significantly 
higher  in  construction  (63.3%  vs  EU: 27.5%)  and 
industry (22% vs EU: 17.5%). Greece’s response to 
labour  shortages  involves  demand-  and  supply-
side  policies,  as  well  as  investments  in  education 
in  the 
and  training.  The  projected  decrease 
working-age  population  (-7.2%  by  2030),  low 
fertility  rates  and  low  immigration  will  likely 
intensify these shortages and impact growth in the 
medium to long run. 

reflected 

Skills  mismatches 
remain  a  pressing 
challenge.  The  macroeconomic  skills  mismatch 
arises  when  the  skills  of  available  workers  and 
those  who  get  hired  differ.  It  increased  in  2025 
(21.4%  compared  with  20.9%  in  2024)  and 
continues  to  be  slightly  above  the  EU  average 
in  2025 
(19.2%).  The  over-qualification  rate 
remained  the  second  highest  in  the  EU,  still  far 
above  the  EU  average  (31.4%  compared  with 
21.4%)  and  has  been  increasing  gradually  since 
2008  (19.9%).  This  development  indicates  that 
one third of workers were employed in occupations 
that  required  lower  levels  of  qualifications.  In 
2025,  only  half  of  the  population  (aged  16-74) 
had at least basic digital skills (50.96%), indicating 
challenges  to  adapt  to  the  rapid  uptake  of  digital 
technologies in all sectors. 

Recent  real  wage 
increases  have  only 
partially  offset  losses  in  2022  and  2023. 
Nominal  wage  growth  reached  5.8%  in 2024  and 
slowed  to  3%.5  in  2025.  Growth  is  forecasted  at 
3.4%  in  2026.  Meanwhile,  real  wages,  after  a 
marked  drop  in  2022  by  6.3%  and  stagnation  in 
2023,  increased  by  2.6%  in  2024  and  0.9%  in 
2025.  Growth  is  forecasted  to  be  1.6%  in  2026. 
This recovery in real wages reflects the continued 
high  nominal  wage  growth;  however,  real  wages 
have  not  returned  to  the  2019  pre-pandemic 

levels,  partly  due  to  persistent  inflation.  At  the 
same time, the statutory minimum wage increased 
by  around  32.7%  between  January  2022  and 
December 2025, a 12.2% rise in real terms.  

Despite  productivity  gains,  the  balance 
remains  fragile  as 
labour  costs  keep 
increasing.  Real  labour  productivity  per  hour 
worked  increased  by  0.8%  in  2024,  indicating  a 
modest improvement in  output  per  worker.  At  the 
same time, nominal unit labour costs (ULC) based 
on  hours  worked  increased  less  than  in  most 
Member  States  (2.3%  vs  EU:  3.3%  in  2025).  ULC 
growth is forecast to slow to 2.1% in 2026 on the 
back  of  low  productivity  growth,  dropping  below 
the  EU  average.  The  lack  of  ICT  specialists  in 
employment  is  also  a  major  challenge  for  the 
digital  transition.  ICT  specialists  accounted  for 
2.5%  of  total  employment  in  2025  (vs  EU:  5%). 
The 
innovative  and  digital 
technologies  is  one  of  the  factors  that  limit  the 
scope for further wage growth over time. Targeted 
policies on digital transformation, improved digital 
skills,  and  specialisation  in  higher-technology  and 
enable 
knowledge-intensive 
sustainable  productivity  growth,  increase  wages 
and strengthen competitiveness. 

limited  use  of 

sectors 

could 

The  quality  of  jobs  remains  a  source  of 
concern.  Compensation  per  employee  is  set  to 
accelerate, with an average annual growth rate of 
3.6%  over  the  next  two  years.  This  growth  is 
driven in part by past hikes in the minimum wage, 
a  further  decrease  in  social  contributions  and  the 
2026  personal  income  tax  reform.  Nevertheless, 
Greek  workers  have  one  of  the  lowest  average 
salaries  and  the  highest  average  weekly  hours 
worked  (41 hours)  in  the  EU,  as  well  as  a  high 
incidence  of  atypical  working  hours.  More  than 
40%  of  Greek  employees work  on  weekends,  and 
more  than  35%  work  in  the  evenings.  Part-time 
employment is limited (6.2% vs EU: 17.8%), and it 
is  largely  involuntary  (42.8%).  Temporary  work, 
which accounts for around 9.3% of all employees, 
is  also  mainly  involuntary  (84%)  and  associated 
with  precarious  conditions:  28.7%  of  temporary 
workers  face  material  and  social  deprivation.  The 
high  prevalence  of  undeclared  and  atypical  work 
negatively  affects 
job  quality,  pushing  many 
people, especially young people and those who are 
highly qualified, to search for better job prospects 
abroad.  From  2008  to  2022,  over  1.3  million 
Greeks  emigrated,  half  of  them  aged  under  35, 
with  the  talent  outflow  intensifying  among  recent 
graduates.  Increasing  the  availability  of  high-

95 

 
quality jobs in the labour market is key to ensuring 
innovation  and 
talent  retention  and  boosting 
competitiveness.  Initiatives  targeting  the  creation 
in  start-up 
of  new 
towards 
businesses  could  be  a 
its 
diversifying 
potential to create and maintain quality jobs. 

the  economy  and 

jobs  through 

investment 

first  step 

improving 

Strengthened  collective  bargaining  could 
boost  the  quality  of  jobs.  Greece  has  very  low 
collective  bargaining  coverage  at  13.1%  (2017). 
Trade  union  density  was at  13.4%  in  2020,  while 
employer organisation density remained at 48.7% 
(2017).  All  this  affects  labour  market  conditions 
and  reduces  the  reach  of  negotiated  wages  and 
working  conditions  beyond  unionised  firms  and 
sectors.  In  November  2025,  the  government  and 
social  partners  reached  a  national  tripartite 
agreement  that  eases  the  criteria  for  extending 
collective  agreements  to  apply  across  an  entire 
sector. The representativeness threshold has been 
reduced from 50% to 40%, and this requirement is 
eliminated if national-level social partners are co-
signers. The after-effects clause ensures all terms 
of a collective labour agreement continue to apply 
after 
the  agreement  expires.  This  coverage 
includes both existing employees and new hires. In 
addition,  it  introduces  key  improvements  to  the 
procedure  to  resolve  disputes.  The  agreement  is 
part of the broader Action Plan for the Promotion 
of Collective Bargaining in Greece 2026-2030. The 
plan  also  includes  non-legislative  measures,  in 
particular  the  creation  of  a  digital  register  of 
agreements,  and  enforcement  actions  by  the 
labour  inspectorate.  The  involvement  of  social 
partners  in  designing  and  implementing  reforms 
and  policies  remains  crucial  for  their  success. 
Funds  are  available  under  the  Greek  sectoral  and 
regional  cohesion  policy  programmes  to  provide 
support  to  social  partners  to  build  sufficient 
capacity. 

96 

 
ANNEX 12: SOCIAL POLICIES 

Greece continues to face challenges in terms 
of  regarding  social  protection  and  inclusion. 
Poverty levels remain high, with persistent income 
inequality and unequal access to social protection. 
Social  benefits  have  a limited  impact  on  reducing 
poverty.  Households  are  struggling  to  cope  with 
rising food, housing and energy costs. At the same 
time, access to affordable, high-quality healthcare, 
long-term  care  and  social  housing  is  limited.  The 
2025 country-specific recommendations called on 
Greece  to  expand  long-term  care  and  tackle 
poverty  and  social  exclusion  by  further  increasing 
the  effectiveness  and  efficiency  of  the  social 
protection  system.  Addressing  these  challenges 
through  targeted  action  would  contribute  to 
inclusive growth and better living conditions. 

Poverty  and  social  exclusion  increased  for  a 
second consecutive year in 2025, reversing a 
downward  trend.  In  2025,  the  proportion  of 
people  at  risk  of  poverty  or  social  exclusion 
(AROPE)  increased  by  0.6  percentage  points  (pps) 
compared with 2024, reaching 27.5% - one of the 
highest  rates  in  the  EU.  Up  to  2023,  the  AROPE 
rate  had  followed  a  generally  positive  trend  over 
the previous decade. Greece has set an ambitious 
national target to reduce the number of people at 
risk  of  poverty  or  social  exclusion  by  860 000 
relative  to  2019  levels  by  2030.  By  2023,  the 
country  was  on  track  to  achieve  this  goal,  having 
reduced 
the  number  by  401 000.  However, 
following increases in 2024 and 2025, the overall 
reduction  is  now  only  262 000.  This  setback  was 
driven  by  an  increase  in  the  proportion  of  people 
at  risk  of poverty (from  18.9%  in  2023  to  19.6% 
in 2025, compared with the EU average of 16.3%) 
and  in  the  share  of  people  experiencing  severe 
material  or  social  deprivation  (from  13.5%  to 
14,9%  -  one  of  the  highest  levels  in  the  EU). 
Furthermore,  35.8%  of  persons  with  disabilities 
were at risk of poverty or social exclusion in 2025, 
which  is  significantly  higher  the  EU  average  of 
28.8%. 

in  terms  of  poverty 

There are also marked regional disparities in 
Greece 
levels  and 
deprivation  rates.  Epirus,  Crete  and  South 
Aegean have at-risk-of-poverty or social exclusion 
(AROPE)  rates  below  the  EU  average  of  20.8%, 
whereas  the  Peloponnese  and  Eastern  Macedonia 
exceed  the  EU  average  by  more  than  5 pps.  The 
proportion  of  people  experiencing  material  and 
social  deprivation  also  varies  across  regions,  with 
higher  rates  in  Central  Macedonia  and  Central 
Greece  than  in  Epirus  and  South  Aegean.  These 

97 

reflect  differences 

disparities 
in  economic 
opportunities and access to social, healthcare and 
other  essential  services 
(see  Annex 19).  A 
comprehensive approach, as set out in the EU anti-
poverty  strategy,  could  help  address  the  multiple 
dimensions  of  poverty  and  achieve  the  national 
anti-poverty target.  

Graph A12.1: At-risk-of-poverty or social exclusion 
rate by age group 

AROPE: At-risk-of-poverty or social exclusion rate (% of total 
population). 
Source: Eurostat, EU-SILC [ilc_peps01n] 

its  2019 

Child  poverty  also  increased  in  2025.  The 
AROPE  rate  for  children  increased  by  1.7 pps  to 
29.6%, ranking among the highest in the EU. This 
reverses  progress  made  towards  the  2030  target 
of  reducing  the  AROPE  rate  among  children  by 
6.6 pps  from 
level  of  31.2%.  The 
percentage  of 
children  experiencing  severe 
material and social deprivation increased by 2 pps 
to 15.9% in 2025, and is double the EU average of 
7.9%. In 2025, one in three children (33.6%) under 
the  age  of  16  faced  child-specific  material 
deprivation.  In  recent  years,  the  government  has 
expanded  financial  support  for  families  with 
children by increasing childbirth and family-related 
benefits  and  introducing  one-off  payments  for 
parents, as well as tax breaks for larger families to 
reduce  the  economic  strain  on  households  with 
children.  It  would  be  beneficial  if  implementation 
of the Child Guarantee were accelerated, including 
through  measures  promoting  school  meals  and 
adequate housing and measures supported by the 
such 
Fund 
European 
as 
education, 
inclusive 
strengthening 

(ESF+), 

Social 

051015202530354020152016201720182019202020212022202320242025% of populationELChildren (<18y)Working age (18-64)Older people (65+) 
 
  
deinstitutionalisation and local plans to tackle child 
poverty. 

inequality 

Social  benefits  continue  to  have  a  modest 
impact  on  alleviating  poverty  amid  high 
income  inequality.  In  2025,  social  transfers 
(excluding  pensions)  reduced  poverty  by  15.5%, 
significantly  below  the  EU  average  of  34.2%. 
remains  pronounced,  as 
Income 
evidenced  by  the  income  quintile  share  ratio 
(S80/S20)  of  5.2  (EU: 4.6).  At  regional  level,  the 
income of the top 20% was more than five times 
that  of  the  bottom  20%  in  4  out  of  Greece's  13 
regions.  Regions  with  large  urban  populations, 
such  as  Central  Macedonia,  the  Peloponnese  and 
Attica  face  higher  levels  of  income  inequality, 
whereas  regions  such  as  Epirus,  Thessaly  and 
Crete  have  ratios  below  the  EU  average  of  4.6. 
Several measures have been taken since 2023 to 
reduce  inequalities.  As  part  of  the  social  benefits 
optimisation  reform,  eligibility  criteria  based  on 
income and wealth have been reviewed to ensure 
benefits  reach  people  in  need  more  effectively, 
and  administrative  processes  for  providing  social 
welfare are being modernised. 

Graph A12.2: Impact of social transfers on poverty 
reduction (%) 

Impact of social transfers (other than pensions) on poverty 
reduction (% reduction of AROP) 
Source: Eurostat [tespm050], EU SILC. 

Access to social protection remains markedly 
unequal  across  population  groups.  There  are 
gaps  in  both  effective  access  and  coverage  for 
workers on temporary contracts, part-time workers 
and  self-employed  people,  who  together  account 
for  more  than  40%  of  total  employment.  These 

98 

are 

evident 

particularly 

formal  coverage 

solo 
total  employment 

gaps 
among 
licensed/regulated  professions,  small  business 
owners,  craftspeople,  freelancers  and  farmers. 
Self-employed  people  are  especially  affected  by 
for  pensions  and 
limited 
is  particularly 
unemployment  benefits.  This 
self-employment 
relevant  given 
that 
represents  19.7%  of 
(vs 
EU: 9.3%).  In  2024,  fewer  than  10%  of  employed 
people who were at risk of poverty received social 
cash benefits other than pensions. Only 13.1% of 
unemployed people received benefits, which is well 
below the EU average of 52.8%. In addition, 35.4% 
of non-employed people experienced material and 
social  deprivation  (vs  15.6%  for  the  EU)  –  a 
significantly  higher  rate  than  among  employed 
people (22.1% vs 8.2% for the EU). Self-employed 
people were more affected by material and social 
deprivation  than  employees  (25%  compared  with 
21%).  Among  temporary  contract  workers,  18.4% 
of those at risk of poverty  before social transfers 
did  not 
(vs 
EU: 38.3%),  and  28.7%  of  them  experienced 
material  and  social  deprivation  (vs  EU: 13.8%). 
Long  delays  in  pension  decisions  affect  workers 
approaching pensionable age, including EU mobile 
workers,  with  significant  implications  for  freedom 
of  movement  within  the  single  market  (see 
Annex 5). 

receive  any  benefits 

in  2024 

some 

improvements, 

Despite 
Greece 
continues to face challenges in terms of the 
adequacy  and  coverage  of  minimum  income 
benefits.  In  2024,  the  adequacy  of  minimum 
income benefits in Greece remained below the EU 
average,  standing  at  50.4%  as  a  share  of  the 
poverty  threshold  (compared  with  56.3%  for  the 
EU) and 27.4% as a share of the income of a low-
wage  earner  (compared  with  50.1%  for  the  EU). 
The benefit recipient rate, which focuses on people 
aged 18-64 who are at risk of poverty and live in 
a jobless or quasi-jobless household, was 66.6% in 
2024  (compared  with  83.2%  in  the  EU),  up  by 
8.2 pps  since  2022  but  still  among  the  lowest  in 
the  EU.  Overall,  Greece  has  so  far  taken  limited 
steps  to  respond  to  the  2025  country-specific 
recommendation 
the 
the  social 
effectiveness  and  efficiency  of 
protection  system.  The  guaranteed  minimum 
income increased by 8% in January 2024, and the 
eligibility  criteria  were  expanded  to  cover  more 
people  in  need.  However,  the  benefit  remains 
insufficient  compared  with  the  poverty  threshold 
and  reaches  only  a  small  proportion  of  those  in 
need. 

increase 

further 

to 

1015202530354020152016201720182019202020212022202320242025ELEU-27 
  
Access to healthcare and long-term care also 
continues  to  be  challenging.  The  share  of 
people  in  Greece  who  reported  unmet  medical 
needs  reached  11.5%  in  2025,  which  is  currently 
the highest in the EU (EU average: 2.4%) (see also 
Annex 15). Unmet long-term care (LTC) needs are 
also  relatively  high,  at  29.1%,  which  is  above  the 
EU  average  of  26.6%.  Meanwhile,  public 
expenditure on LTC is the lowest in the EU at 0.1% 
of  GDP  compared  with  EU  1.7%  for  the  EU)  (289). 
As  a  result,  service  provision  is  limited,  with  a 
workforce  of  only  0.3  workers  per  100  people 
aged  65  and  over  compared  with  the  EU  average 
of  3.3.  Only  20.1%  of  people  aged  65  and  over 
receive  home  care  services,  well  below  the  EU 
average of 28.6%. The limited availability of home 
care, combined with insufficient community-based 
and 
services,  which  are 
concentrated  in  wealthier  regions,  significantly 
constrains user choice. LTC services rely heavily on 
informal  care  and  a  variety  of  public  and  private 
care  structures.  As  the  population  ages,  demand 
for LTC is expected to increase. The national long-
term care strategy, with parallel support from the 
Technical  Support  Instrument,  is  accompanied  by 
an  action  plan  that  sets  out  a  wide  range  of 
measures  to  improve  capacity  and  affordability 
and  ensure  a  balanced  mix  of  private  and  public 
residential, 
formal 
community-based 
care). 
Developing the social economy in care provision in 
cooperation  with  public  authorities  could  improve 
access 
informal 
services 
arrangements. 

services 
and 

home-based 

residential 

(including 

reduce 

care 

LTC 

LTC 

to 

Greek  households  are  facing  rising  housing 
costs.  In  2025,  they  spent  on  average  34.6%  of 
their income on housing expenses, the highest rate 
in  the  EU  (EU: 18.9%).  Single  households,  low-
income households and vulnerable groups such as 
persons with disabilities and non-EU nationals are 
particularly affected (see Annex 16). With support 
from  the  Recovery  and  Resilience  Facility  (RRF), 
Greece  has  started  providing  means-tested,  low-
interest 
loans  for  the  purchase  of  primary 
residences  and  plans  to  adopt  a  comprehensive 
housing  strategy  that maps  the  available  housing 
stock and considers regional needs. A new housing 
portal  provides 
immediate, 
personalised  and  accessible  information  on  all 
housing  programmes  and  regulatory  initiatives.  It 
would  be  beneficial  if  Greece  took  further  action 

the  public  with 

(289) European Commission, Ageing Report, 2024. 

focusing on social housing and affordable housing 
to  address  housing  challenges,  particularly  for 
vulnerable groups. 

Energy poverty in Greece remains a pressing 
challenge. In 2025, the proportion of households 
unable  to  keep  their  homes  adequately  warm 
decreased by 0.9 pps, remaining high at 18.1% (vs 
EU: 8.8%). Among people at risk of poverty, energy 
poverty  did  fall  by  7.5 pps,  reaching  36.1% 
(EU: 19.6%).  Greece  also  has  one  of  the  highest 
proportions  of  the  population  with  utility  bills 
arrears  in  the  EU,  with  one  in  three  households 
(31.9%) experiencing difficulty paying bills in 2025 
(compared  with  7.0%  in  the  EU).  In  2025,  Greece 
updated  its  energy  poverty  action  plan,  placing  a 
stronger  focus  on  identifying  and  monitoring 
vulnerable  households  and  implementing  long-
term structural measures, particularly in the areas 
of energy efficiency and building renovation. These 
efforts  are  complemented  by  broader  energy 
policy  measures, 
including  continued  energy 
efficiency  programmes  for  residential  buildings, 
support  for  renewable  energy  deployment  and 
consumer 
self-consumption, 
protection  measures. 
If  these  measures  are 
targeted  effectively,  they  could  contribute  to 
reducing energy poverty. From 2026, the European 
Social Climate Fund will provide additional support 
to the most vulnerable households through energy 
efficiency investments. 

targeted 

and 

(measured 

land  passenger  transport 

Transport poverty is a significant problem in 
Greece.  In  2023,  rail  accounted  for  only  0.5%  of 
total 
in 
passenger-kilometres), the lowest proportion in the 
EU  (EU  average: 8.4%).  This  is  one  reason  why 
private  car  use  (83.8%)  is  above  the  EU  average 
(82%).  At  the  same  time,  a  higher  proportion  of 
people  in  Greece  cannot  afford  a  car  (8.4% 
compared  with  the  EU  average  of  5.6%  in  2024). 
The  problem  also  affects  rural  areas,  where  6% 
cannot afford a car (vs EU: 4%), and people at risk 
of  poverty  (20.5%  vs  EU:  15.9%).  Improving  the 
affordability, accessibility and availability of public 
transport (290)  would  be  a  viable  way  to  support 
vulnerable households. 

(290) There are no data on public transport accessibility in Greece 
on the Commission’s Transport Poverty Hub as data are not 
available on Greece’s national access point set up under 
Delegated Regulation (EU) 2017/1926. 

99 

 
 
 
ANNEX 13: EDUCATION AND SKILLS 

to 

care 

from 

early 

those 

remains 

improve 

including 

the  potential 

in 
(ECEC) 

Enhancing the resilience and competitiveness 
of  the  Greek  economy  needs  targeted  policy 
action  on  skills  and  education.  Despite  recent 
reforms  and  significant  investments  in  education 
and  skills,  educational  outcomes  remain  poor.  In 
childhood 
particular,  participation 
education  and 
low, 
particularly  among  children  at  risk  of  poverty  or 
social  exclusion.  A  large  share  of  Greek  students, 
particularly 
disadvantaged 
backgrounds,  do  not  reach  a  minimum  level  of 
proficiency in basic and digital skills. Challenges in 
limited  school 
school  governance, 
autonomy, and uneven implementation of teacher 
evaluation  and  professional  development,  further 
restrict 
learning 
outcomes.  Weak  outcomes  in  science,  technology, 
engineering and mathematics (STEM) subjects, low 
enrolment  in  information  and  communications 
technology  (ICT)  programmes,  low  participation  in 
adult  learning,  and  the  weak  attractiveness  of 
vocational  education  and  training  (VET)  hinder 
innovation  potential  and 
skills  development, 
competitiveness. 
reveal 
structural  challenges  of  the  education  system, 
including  gaps  in  equity,  quality  and  alignment 
with  labour-market  needs.  The  2025  country-
specific recommendations (CSRs) call on Greece to: 
long-term  care; 
(i) expand  formal  ECEC  and 
(ii) take  action  to  tackle  skills  mismatches;  and 
(iii) improve  educational  outcomes  by  enhancing 
continuous  professional  development  for teachers 
focused  on  competence-based  approaches  and 
aligning student assessment to these approaches, 
improving  school  autonomy,  and  expanding 
teacher evaluation. 

These  weaknesses 

0-3 

aged 

ECEC 

attended 

Participation in formal childcare for children 
under  three,  especially  those  at  risk  of 
poverty  or  social  exclusion,  continues  to  be 
particularly  low.  In  2024,  28.8%  of  Greek 
children 
(EU 
average: 39.3%)  versus  the  national  Barcelona 
target  of  42.8%  by  2030,  with  no  significant 
improvements  in  recent  years.  The  rate  is  even 
lower  for  children  at  risk  of  poverty  or  social 
exclusion  (19.8%  in  2023;  EU  average: 25.2%). 
Disparities  in  participation  exist  notably  between 
municipalities, 
or 
disadvantaged  areas  of  the  country.  The  most 
recent data for children aged between three years 
and  the  compulsory  starting  age  for  primary 
education show that 68.8% of them were enrolled 

particularly 

rural 

in 

in ECEC in 2019 (291), far short of the 2030 target 
of  96%.  In  recent  years,  Greece  has  invested  in 
early  years,  including  by  making  pre-primary 
education compulsory for children aged four to six 
back in 2020. Several measures to improve access 
to  quality  ECEC  have  been  taken,  including  by 
creating  and  expanding 
infrastructure,  with 
support from the European Regional Development 
Fund.  Policy  measures  were  introduced  in  the 
2024/2025  school  year  to  support  children, 
including  the  expansion  of  access  to  all-day 
childcare.  Support 
for  children  with  special 
educational  needs  within  classrooms,  from  ECEC 
to  secondary  education,  has  been  gradually 
expanded  based  on  a  comprehensive  intervention 
programme  to  promote  inclusion  developed  in 
2024.  Challenges  persist  due  to  the  increasing 
number  of  pupils  requiring  special  education 
support in Greece. Increasing resources for special 
needs education will help narrow the overall basic 
skills  gap  in  the  performance  of  pupils  and 
students.  The  Recovery  and  Resilience  Facility 
(RRF)  supports  a  pilot  programme  for  early 
intervention that aims to increase the participation 
rate  of  children  with  disabilities  and  ensure  their 
inclusion.  Additional  measures  to  promote  and 
support children in need and vulnerable children in 
early  childhood  education  could  be  developed 
under  the  Child  Guarantee.  Advancing  quality, 
equity  and  integration  in  ECEC  would  further 
in  particular  for 
increase  participation  rates, 
children  under  the  age  of  four. 
In  parallel, 
governance  is  fragmented  between  pre-primary 
education  and  childcare  services,  undermining 
monitoring and quality assurance (292). 

The  low  levels  of  basic  and  digital  skills 
remain  a  key  challenge  for  the  education 
system,  with  implications  for  employment 
the 
and 
underachievement rates among 15-year-olds were 
among  the  highest  in  the  EU  (47.2%  of  15-year-
olds  underperformed  in  mathematics,  37.6%  in 
reading  and  37.3%  in  sciences),  hindering  full 

competitiveness. 

2022, 

In 

(291) See Eurostat [educ_uoe_enra21], UNESCO OECD Eurostat 
joint data collection. Data are available for all Member 
States except Greece. This indicator measures participation 
in ECEC that is considered to be educational according to 
ISCED 2011. Childcare programmes that do not meet the 
minimum requirements are not included. 

(292) OECD (2026), Improving Learning Outcomes in Greece: 

Strengthening School Governance, Teacher Professionalism 
and Digital Education, Reviews of National Policies for 
Education, OECD Publishing, Paris, 
https://doi.org/10.1787/6323bd8e-en. 

100 

 
 
 
 
 
constrains 

standardised 

improvements 

participation  in  society  and  success  in  the  labour 
market.  Disadvantaged  students  are  the  most 
affected, with only 7.1% of them performing well 
(level 4 or above on the PISA scale) in at least one 
of  the  above  three  subjects,  which  is  significantly 
below  the  EU  average  (16.3%).  In  addition,  the 
share  of  top-performing  students  in  all  three 
subjects tested by PISA is among the lowest in the 
EU,  limiting  the  pool  of  innovative  talent  in  the 
future. The limited alignment of student practices, 
including 
national  assessment 
methods,  with  the  competence-based  approach, 
together  with  weak  monitoring  of  students’ 
performance, 
in 
educational  outcomes.  Greece  is  also  significantly 
lagging behind in terms of digital skills, with 60% 
of eighth graders not reaching the basic level (EU 
average: 43%;  2030  EU-level  target: 15%),  and 
the  overall  share  of  adults  with  basic  or  above-
basic digital skills standing at 50.96% in 2025, 10 
percentage  points  lower  than  the  EU  average. 
Significant  investments  are  ongoing  with  support 
from  the  RRF  and  the  cohesion  policy  funds, 
mainly in digital  infrastructure and digital  content 
for  primary  and  secondary  education.  However, 
purposeful integration of digital tools into teaching 
and  learning (293)  is  limited  and  uneven.  Through 
the  Technical  Support 
is 
receiving  support  to  create  a  framework  for 
measuring  and  evaluating 
impact  of 
investments  in  the  digital  transformation  of  pre-
primary, primary and secondary education, through 
monitoring  and  evaluating  educational  outcomes. 
To  increase  students’  performance,  the  type  of 
support  provided  to  pupils  and  children  with 
special educational needs or learning difficulties is 
also  important.  The  rate  of  early  leavers  from 
education  and  training  remains  low,  at  3%  (EU 
average: 9.3%).  However, 
persist 
between rural and urban areas as well as between 
regions  with  higher  rates  of  early  school  leaving 
such  as  continental  Greece,  Eastern  Macedonia 
and  Thrace,  and  Peloponnese.  Young  adults  (18-
24)  with  disabilities  are  more  likely  to  abandon 
education,  with  an  early  school  leaving  rate  of 
9.7% (EU average: 19.1%). 

Instrument,  Greece 

disparities 

the 

Improving teaching quality and strengthening 
school  governance  can  help  raise  learning 

its 

provide 

professional 

development 

outcomes.  Recent  reforms  of  teacher  evaluation 
a 
and 
framework  for  improvement,  but  their  impact  is 
still  limited  due  to  uneven  implementation  and 
insufficient  alignment  with  competence-based 
teaching  practices.  Professional  development  is 
not  yet  systematically  linked  to  teachers’  needs, 
reducing 
supporting 
effectiveness 
instructional change. Moreover, teacher evaluation 
and  professional  learning  are  not  systematically 
school-based. 
school 
autonomy  continues  to  limit  schools’  ability  to 
tailor pedagogical approaches and respond to local 
challenges (294).  An 
integrated  whole-school 
approach  is  yet  to  be  developed (295).  The  RRF 
contributes  to  enhancing  teachers’  skills  and 
empowering  them  to  improve  teaching  quality  by 
supporting teacher training. 

In  parallel, 

restricted 

in 

remain 

low.  The 

Despite  significant  reforms  of  the  VET 
system,  its  labour-market  relevance  and 
attractiveness 
reforms 
introduced  to  modernise  the  VET  system  focused 
on  digital  transformation.  In  particular,  Greece 
created  a  digital  educational  portal  and  tutoring 
service,  aiming  to  provide  interactive  learning 
materials  and  distance  education  tools.  Other  key 
reforms  included  the  development  of  a  digital 
career  orientation  platform  to  support  learners  in 
making 
improve 
informed  career  choices.  To 
access  to  education  in  remote  areas,  the  ‘e-
to 
PROFESSIONAL’  platform  was  developed 
recognition 
improve 
professional 
the 
qualifications. 
the  RRF  supports 
In  parallel, 
substantial  reforms  and  investments  in  VET,  such 
as the redesign of curricula, digitalisation, and the 
renovation  of  VET  equipment  and  infrastructure. 
Greece  also  focuses  on  supporting  work-based 
learning  to  boost  youth  employability  and  better 
match  skills  with  labour-market  demands.  Apart 
from 
the  first  public 
Academy  of  Vocational  Training  in  the  field  of 
pharmaceuticals,  key 
the 
for  people  who  have 
Apprenticeship  Year 
completed  vocational  upper-secondary  school 
(EPAL)  and  the  apprenticeship  schools  (EPAS)  of 
the  public  employment  service  (PES),  which  blend 
school-based  education  with  paid  on-the-job 
training,  along  with  expanded  practical  training 

the  establishment  of 

initiatives 

include 

of 

(293) OECD (2026), Improving Learning Outcomes in Greece: 

(294) Ibid. 

Strengthening School Governance, Teacher Professionalism 
and Digital Education, Reviews of National Policies for 
Education, OECD Publishing, Paris, 
https://doi.org/10.1787/6323bd8e-en. 

(295) Council Recommendation of 28 November 2022 on 

Pathways to School Success, 
https://education.ec.europa.eu/education-levels/school-
education/pathways-to-school-success. 

101 

 
 
 
in  employment 

opportunities  in  post-secondary  VET.  In  2024, 
69.5%  of  people  who  had  recently  completed 
medium-level  VET  were 
(EU 
average:  80.0%),  up  from  59.8% 
in  2022. 
However,  the  rate  remains  below  the  overall 
employment  rate  of  people  who  have  recently 
completed  VET  (73.2%;  EU  average: 82.3%).  In 
addition,  in  2025,  only  25.8%  of  people  who  had 
recently  completed  VET  had  experienced  work-
based  learning,  far  below  the  EU  average  of 
66.0%.  Moreover,  participation  in  STEM  fields  in 
medium-level  VET  remains  low:  in  2023,  it  stood 
at  30.9%,  below  the  EU  average  of  36.2%.  Only 
12.4%  of  VET  pupils  in  STEM  fields  were  female 
(EU average: 15.4%). 

Skills  shortages  and  mismatches  hinder 
competitiveness and the innovative potential 
of  the  economy.  In  Cedefop’s  2024  European 
Skills  Index,  Greece  is  ranked  30th  out  of  31 
countries  for  skills  matching,  28th  for  skills 
development  and  27th  for  skills  activation.  While 
the  share  of  tertiary  students  enrolled  in  STEM 
programmes  is  greater  (33.7%  in  2023)  than  the 
EU  average  of  26.9%,  exceeding  the  EU-level 
2030  target  of  32%,  it  is  not  sufficient  to  meet 
the  growing  demand  for  ICT  specialists.  STEM 
tertiary  students  are  predominantly  enrolled  in 
construction 
engineering,  manufacturing  and 
(62%;  vs  EU  average: 54.6%)  and  in  natural 
sciences, mathematics and statistics (25.8%; vs EU 
average: 25.1%).  Enrolment  in  ICT  programmes 
remains 
low  (12.1%;  vs  EU  average: 20.3%), 
whereas  skills  shortages  persist  in  the  labour 
market and there is a high demand for workers in 
software  development,  data  analysis  and 
cybersecurity  and 
intelligence 
professionals.  The  national  2020-2025  digital 
transformation  strategy  stresses  the  need  for 
advanced digital skills and emphasises the role of 
ICT  specialists 
in  driving  this  transformation. 
Greece  is  developing  a  monitoring  and  evaluation 
framework  for  digital  education  to  help  assess 
students’ 
how 
educational outcomes. Through the RRF, resources 
are  being  invested  in  reforms  supporting  the 
development  and  digitalisation  of 
the  skills 
ecosystem. This includes: (i) the development of a 
new  strategy  for  lifelong  learning  consisting  of  a 
comprehensive  framework  for  identifying  labour-
market  skills  needs  and  supporting  the  upskilling 
and reskilling of the workforce, and a strategy for 
excellence  in  universities  and  innovation;  and 
(ii) measures  to  strengthen  the  apprenticeship 
system  and  upgrade  VET.  The  European  Social 

correlate  with 

for  artificial 

investments 

through  national  and 

Fund  Plus  (ESF+)  is  also  investing  in  human 
capital,  focusing  on  inclusive  education  and  skills 
development, 
regional 
programmes. Cooperation of principal stakeholders 
and  reinforced  coordination  of  current  measures 
and  services  remains  vital,  with  a  view  to 
addressing skills shortages and mismatches. 

Greece  has  made 
some  progress 
in 
intelligence,  but  skills 
developing  skills 
anticipation remains limited. Its Mechanism of 
Labour  Market  Diagnosis,  developed  with  support 
from  the  European  Social  Fund,  assesses  skills 
demands  at  sectoral  and  regional  levels  and 
provides  short-  and  medium-term  forecasts  of 
labour-market needs. These demands are mapped 
according  to  occupations  and  qualifications,  and 
are  available  to  key  actors  including  PES.  Skills 
intelligence  tools  are  now  being  implemented  in 
some  form  in  all  PES,  but  challenges  remain  in 
terms of skills anticipation. The development of a 
more  systematic  approach  remains  pressing,  in 
order to integrate data sources, link needs to skills 
rather  than  occupations  and  qualifications,  and 
in  VET  and  adult 
inform  skills  development 
learning. 

Greece  continues  to  face  skills  shortages 
linked to the green transition, particularly in 
specialised  environmental  and 
technical 
skills.  In  early  2024,  Greece  launched  a  national 
skills strategy focusing on modernising the labour 
market  to  meet  new  skill  demands.  This  strategy 
integrates  green  skills  development  into  broader 
workforce 
transformation.  Nevertheless,  gaps 
remain  in  matching  workforce  skills  to  emerging 
green  job  demands.  There  is  still  a  need  for 
targeted measures to upskill and reskill the current 
workforce to reduce mismatches. Public awareness 
initiatives  to  inform  about  the  range  of  available 
green  careers  and  the  opportunities  for  acquiring 
relevant skills could also be helpful. 

in 

to 

participation 

learning 
adult 
Low 
contributes 
skills  mismatches  and 
hampers competitiveness. In 2022, the share of 
adults  participating  in  education  and  training, 
excluding  guided  on-the-job  training,  was  only 
15.1% (adult education survey). This rate is among 
the lowest in the EU and far below the EU average 
of 39.5%. Participation is even lower for the 55-64 
age  group,  with  a  rate  of  7.1%  in  2022  (EU 
average: 29.9%),  versus  25.6%  among  25-34-
year-olds 
Similarly, 
participation is only 2.8% among people aged 18-

average: 49.5%). 

(EU 

102 

 
64  with  less  than  primary,  primary  and  lower 
secondary  education  (levels 0-2),  compared  to 
30.6%  of  people  with  tertiary  education.  Several 
measures  have  been  implemented  to  tackle  skills 
mismatches,  as  called  for  by  the  2025  CSR,  and 
improve  participation  in  adult  learning.  These 
include the reform of the national lifelong learning 
framework and the supply of training programmes 
to  half  a  million  people  as  part  of  the  RRF,  the 
creation of a monitoring mechanism to track adult 
participation  in  lifelong  learning  programmes,  the 
development of adult learning centres at municipal 
level,  the  issuance  of  digital  certificates,  and  the 
development  of  micro-credentials.  However, 
fostering  participation  and  promoting  equity  and 
remain 
excellence 
in 
full 
pressing  challenges.  For 
implementation  of  individual  learning  accounts, 
which  is  still  pending,  could  promote  tailored 
training approaches according to the needs of the 
workforce. 

the  education  system 

instance, 

the 

103 

 
ANNEX 14: SOCIAL SCOREBOARD 

Table A14.1:Social Scoreboard for Greece 

Update of 4 May 2026. 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 2026 for details on the methodology 
(https://employment-social-affairs.ec.europa.eu/joint-employment-report-2026_en). 
Source: Eurostat 

104 

15.13.051.013.517.45.1771.08.95.084.127.529.615.535.926.423.711.5Critical situationTo watchWeak but improvingGood but to monitorOn averageDynamic labour markets and fair working conditionsSocial protection and inclusionShare of individuals who have basic or above basic overall digital skills(% of the population aged 16-74, 2025)Impact of social transfers (other than pensions) on poverty reduction(% reduction of AROP, 2025)Children aged less than 3 years in formal childcare (% of the under 3-years-old population, 2025)Self-reported unmet need for medical care (% of the population aged 16+, 2025)Disability employment gap (percentage points, population aged 20-64, 2025)Housing cost overburden (% of the total population, 2025)Adult participation in learning (during the last 12 months, excl. guided on the job training, % of the population aged 25-64, 2022)Equal opportunities and access to the labour marketBest performersBetter than averageEarly leavers from education and training(% of  the population aged 18-24, 2025)Young people not in employment, education or training(% of the population aged 15-29, 2025)Gender employment gap(percentage points, population aged 20-64, 2025)Income quintile ratio (S80/S20, 2025)At risk of poverty or social exclusion (AROPE) rate (% of the total population, 2025)Employment rate(% of the population aged 20-64, 2025)Unemployment rate(% of the active population aged 15-74, 2025)Long term unemployment(% of the active population aged 15-74, 2025)Gross disposable household income (GDHI) per capita growth(index, 2008=100, 2024)At risk of poverty or social exclusion (AROPE) rate for children(% of the population aged 0-17, 2025) 
 
 
 
  
 
 
ANNEX 15: HEALTH AND HEALTH SYSTEMS 

Greece’s  health  system  faces  significant 
access  challenges.  They  include (i)  limited  and 
uneven  access 
to  healthcare; (ii)  suboptimal 
funding  allocation  and  cost-effectiveness  of  the 
health  system,  with  insufficient  focus  on  disease 
prevention  and  outpatient  care;  and (iii)  shortages 
of  general  practitioners  (GPs)  and  nurses,  in 
particular  in  the  public  health  system.  Addressing 
these  challenges  could  place  the  country  in  a 
better  position  to  ensure  the  health  of 
its 
population  and  social  fairness,  while  boosting 
productivity and competitiveness of its economy. 

Graph A15.1: Treatable mortality 

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

Life expectancy at birth in Greece rebounded 
slightly  over  its  pre-COVID-19  level,  just 
above  the  EU  average.  In  2023,  women  could 
expect to live about 5 years longer than men, but 
they could only expect to live 1.3 years longer than 
men  in  good  health.  Treatable  mortality  was  also 
back  below  the  EU  average,  having  significantly 
decreased since 2014 (see Graph A15.1). The main 
causes of death remain diseases of the circulatory 
(‘cardiovascular  diseases’,  CVDs)  and 
system 
cancer  (respectively  31.8%  and  22.9%  of  all 
deaths in 2023), with standardised mortality rates 
just below EU averages. Under EU4Health, Greece 
benefits  from  several  grants  and  participates  in 
joint  actions  targeted  at  cancer  treatment  and 
prevention,  at  CVDs  and  other  non-communicable 
diseases,  including  EUnetCCC,  JANE-2,  the  JA 
PreventNCD, JACARDI, CARE4DIABETES (296). 

(296) EUnetCCC: European Network of Comprehensive Cancer 

Centres; JANE-2:  Shaping the EU Networks of Expertise on 
cancer!; JA PreventNCD - Reducing Europe's cancer and NCD 
burden through coordinated strategies on health. 
determinants; JACARDI - Joint action on cardiovascular 
diseases and diabetes; CARE4DIABETES. 

Preventable  mortality  in  Greece  has  only 
slightly  decreased  over  the  last  10  years. 
Preventable  mortality  in  2023  was  below  the  EU 
average but only 4% lower than in 2014, despite a 
sharp  drop  after  the  2021  peak.  It  is  attributable 
to the impact of the COVID-19 pandemic but also 
to  the  persistent  impact  of  cancer,  in  particular 
lung  cancer.  Preventable  mortality  in  Greece  is 
significantly linked to environmental  factors (such 
as  air  pollution,  see  Annex 8)  and  to  behavioural 
risk  factors, in particular  heavy  smoking  and  poor 
diet.  Despite  a  decline  over  the  last  two  decades, 
adults’ smoking rates remain among the highest in 
the  EU.  Moreover,  adolescents’  smoking  rate  has 
only  decreased  slightly,  while  the  use  of  e-
cigarettes  is  on  the  rise (297).  Enforcement  of  the 
stricter  anti-tobacco  legislation  since  2019  has 
proven  challenging.  New  legislation  since  2025 
aims  to  protect  minors,  including  by  mandating 
compulsory  age  verification  for  purchases  and 
international  mail  orders. 
with  a  ban  on 
Adolescents  also 
increasing 
face  high  and 
overweight and obesity rates (much higher than in 
most EU countries), affecting 28% of the 15-year-
olds in 2022. This can be linked to a reported lack 
of  physical  activity  and  poor  diet,  with  too  few 
consuming fruit and vegetables daily. 

in 

investment 

is  advancing 

its  prevention 
Greece 
programme  but 
in  disease 
prevention  remained  below  the  EU  average. 
In  2023,  investment  in  disease  prevention  was 
lower than the EU average (3.1% of all healthcare 
spending  vs  3.7%),  with  half  of  it  spent  on 
immunisation,  likely  a  result  of  one-off  spending 
due  to  COVID-19.  Since  2024,  the  national 
prevention programme - partly funded through the 
Greek  recovery  and  resilience  plan  (RRP)  -  has 
broadened access to and/or increased affordability 
of breast cancer, cervical cancer and colon cancer 
screening,  as  well  as  preventive  examinations  for 
CVDs. The RRP includes other prevention measures 
for  the 
‘Promotion  of  Physical  Exercise  and 
Healthy  Eating’,  such  as  legislation  on  healthy 
eating  in  school  canteens,  community  actions, 
awareness-raising 
to 
actions, 
promote  the  mental  health  of  adolescents  and 
young  people,  and  the  establishment  of  a 
European Centre for Obesity (opened in 2025). 

interventions 

(297) OECD/European Observatory on Health Systems and Policies 
(2025), Country Health Profile 2025: Greece. State of Health 
in the EU. 

105 

94.593.192.494.585.684.194.889.291.793.389.786.8201420192020202120222023per 100 000 populationGreeceEU 
 
        
 
 
 
 
Table A15.1: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 2023 data (or latest available). 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 
Portugal (licensed to practice) and Slovakia (professionally active). Latest data update on nurses for Belgium and Sweden: 2022; for France: 2021; 
for Luxembourg: 2017. 
** latest available 10-year trend: ratio 2023/2014 or 2024/2013; a factor of 2.00 means that it has doubled in 10 years. 
***‘Available hospital beds’ covers somatic care, not psychiatric care. 
Source: Eurostat 

– 

goods 

by  medical 

The  Greek  health  system  relies  primarily  on 
hospital  care.  In  2023,  health  expenditure  per 
capita  in  Greece  was  much  lower  than  the  EU 
average  (see  Table  A15.1),  despite  an  almost 
continuous upward trend over the previous decade 
(50%  of  the  2014  level).  The  largest  share  of 
health  expenditure,  over  40%,  went  on  hospitals, 
followed 
retail 
pharmaceuticals  and  therapeutic  appliances  – 
taking  up  almost  a  third  of  total  spending. 
Outpatient care received one of the lowest shares 
in  the  EU,  accounting  for  about  one  fifth  of  total 
health  spending.  This  suggests  that  the  role  of 
primary  healthcare 
in 
Greece. However, the number of available hospital 
beds  and  the  average  length  of  stay  were  also 
below the EU average. Moreover, Greece displays a 
10-year  trend  of  low  investment  in  the  health 
sector, despite a relative increase since 2021 (EUR 
8.5 million per 100 000 inhabitants vs 22.9 million 
for the EU average in 2023) (298), raising concerns 
about  the  continuity  and  quality  of  service 
delivery.  The  estimated  domestic  spending  per 
capita by Greece on prevention, preparedness and 
response  was  also  below  the  EU  average  in 
2023 (299).  Under  the  Greek  RRP,  a  significant 
share of the EUR 1.5 billion allocated to healthcare 
goes  on  the  renovation  of  health  infrastructure 
(including 80 public hospitals). 

(PHC)  remains 

limited 

In  2024  the  consumption  of  antibiotics  was 
one  of  the  highest  in  the  EU.  Consumption  is 

(298) Country Health Profiles - Dashboard. 
(299) OECD Health Statistics 2025. 

raises 

concerns 

below Greece’s pre-COVID-19 pandemic levels, but 
the  yearly  rates  are  fluctuating.  It  is  therefore 
unclear  whether  Greece  is  on  track  to  meet  its 
recommended national target of a 27% reduction 
by  2030 (300).  This  persistent  high  consumption 
level 
antimicrobial 
resistance  (AMR)  caused  by  over-  and  misuse  of 
antibiotics and related multi-resistant infections, in 
particular  among  hospital  patients  in  Greece  with 
bloodstream  infections  – a  group  with  one  of  the 
highest rates of antibiotic-resistant bacteria in the 
EU (301).  Greece  benefits  under  EU4Health  from  a 
direct  grant  to  implement  AMR  measures  and 
participates to two joint actions on the matter. 

about 

Greece’s  healthcare  spending  allocation  and 
reported  unmet  health  needs  shows  that 
there  is  room  to  improve  its  health  system, 
in particular for people living in more remote 
areas  or  on  lower  incomes.  Despite  a  fairly 
broad  public  package  in  2025  (except  for  dental 
care),  the  proportion  of  the  Greek  population 
reporting  unmet  medical  care  needs  was  the 
highest  in  the  EU,  with  a  slight  decrease  back  to 
the 2023 share (see Annexes 12, 17 and 18). Such 
unmet needs are mainly due to financial  reasons, 
followed  by  waiting  times.  A  higher  share  of 
people in Greece than in the other Member States 
also  forgo  care  because  of  the  distance  to 
healthcare  facilities.  As  an  illustration,  in  2023 

(300) 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. 

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

106 

2020202120222023202410-year change**EU average* (latest year) Cancer mortality per 100 000 population240.8238.9230.0232.5n.a.0.93233.1 (2023)Mortality due to circulatory diseases per 100 000 population 335.1 339.5 324.6 297.9n.a.0.78313.0 (2023)Current expenditure on health, purchasing power standards, per capita1 7261 8791 9942 191n.a.1.493834.9 (2023)Public share of health expenditure, % of current health expenditure 61.8 62.1 62.0 60.9n.a.1.0680.6 (2023)Spending on prevention, % of current health expenditure 1.84.04.53.1n.a.2.013.7 (2023)Available hospital beds per 100 000 population*** 352 356 359 359n.a.1.01440 (2023)Doctors per 1 000 population*6.26.46.66.6n.a.1.114.3 (2023)*Nurses per 1 000 population* 2.1 2.2 2.2 2.2n.a.1.187.6 (2023)*Mortality at working age (20-64 years), % of total mortality12.212.911.611.811.60.8914.3 (2023)Consumption of antibiotics in the community and hospital sectors,      defined daily doses per 1 000 inhabitants 28.1 23.5 32.9 28.5 29.90.9020.3 (2024) 
 
 
 
        
 
only  63%  of  the  population  lived  within  a  10-
minute  drive  of  a  hospital  in  Greece,  and  this 
percentage 
varied  greatly  across  Greece’s 
regions (302).  One  way  Greece  is  addressing  this 
challenge  is  by  enhancing  aeromedical  transports 
for  remote  communities.  In  2025,  1  in  5  people 
who declare having medical needs report that they 
had  to  forgo  the  care  needed,  with  lower  income 
groups  being  the  most  affected.  Forgone  care  is 
reported by 21% of women and 19% of men. The 
lack of public coverage for dental care is reflected 
in  even  higher  unmet  dental  needs:  it  concerns 
over  24%  of  people  declaring  dental  care  needs, 
representing  4  times  the  EU  average.  In  2025, 
almost  half  of  people  living  below  the  poverty 
threshold  reported  forgoing  dental  care  needs. 
Healthcare  coverage  is  also  a  powerful  tool 
against  poverty  and  inequality,  beyond  its  direct 
impact on health status (303). This underscores the 
importance of addressing inequalities in access to 
healthcare,  as  highlighted  by  the  2025  CSR  to 
address  poverty  and  social  exclusion  by  further 
increasing  the  effectiveness  and  efficiency  of  the 
social  protection  system,  whose  recitals  explicitly 
refer to the unmet medical needs in Greece. 

Graph A15.2: Out-of-pocket payments: share in 
healthcare spending and categories, 2023 

Household out-of-pocket payment: direct payment for 
healthcare goods and services from the household primary 
income or savings, where the payment is made by the user at 
the time of the purchase of goods or the use of the services 
(Eurostat). VHI: voluntary health insurance. 
(1) Others: eyeglasses, hearing aids, lab tests... 
Source: Eurostat and Country Health Profiles - Dashboard 

In  total,  people  spend  most  of  their  out-of-
pocket  payments  on  pharmaceuticals  and 
inpatient care. In 2023, Greece’s public spending 
as  a  proportion  of  total  health  expenditure  was 
still  among  the  lowest  in  the  EU  (61%  vs  81%), 
having barely increased over the previous decade. 
This translates into one of the highest proportions 
of out-of-pocket (OOP) payments for healthcare in 
the  EU  (34%  in  2023,  more  than  twice  the  EU 
average).  The  high  level  of  OOP  payments  also 
derives  from  the  long  waiting  lists  and  the  high 
reliance  on  private  providers,  notably  to  by-pass 
the waiting times. As regards hospitals, the Unified 
Surgical  List  and  the  afternoon  surgery  scheme 
implemented since 2024 have led to a significant 
reduction  in  the  backlog  of  patients  for  elective 
surgeries.  Retail  pharmaceuticals  accounted  for 
most OOP payments (37%) and inpatient care for 
34% of them (see Graph A15.2). In 2023, 9.5% of 
Greek 
catastrophic 
spending  on  healthcare,  and  the  main  driver  was 
OOP payments for medicines (304). 

experienced 

households 

Spending  on  retail  pharmaceuticals  is  well 
industry 
the  EU  average,  but 
above 
investments  in  R&D  are  lagging  behind.  In 
2023,  retail  pharmaceutical  spending  represented 
27%  of  total  health  spending  in  Greece  -  double 
the  EU  average  of  13%,  with  a  use  of  generics 
remaining  among  the  lowest  in  the  EU  despite  a 
significant  increase  in  2013-2023 (305).  Yet  in 
2024, the share of employment in pharmaceutical 
manufacturing  was  just  about  at  the  EU  average, 
and  the  number  of  clinical  trials  per  million 
population  was  just  above  the  EU  average  of 
18.3 (306). 
in  R&D  by  Greece’s 
pharmaceutical  industry,  in  euro  per  capita,  more 
than tripled between 2018 and 2023 but was still 
lagging  behind  other  EU  countries (307).  In  2024, 
for 
the 
pharmaceuticals per million population (0.6) was a 
third  of  the  EU  average  (1.8),  hinting  to  limited 
innovation (308).  As  for 
levels  of 
trade  and 
commercialisation,  despite  a  surge  at  6.3%  in 
2020,  the  industry  maintains  a  modest  share  of 
extra-EU  exports (3.7% in 2025 vs 13.9% for the 
EU  average),  compared  with  the  rapid  growth 
in  the  EU's  top-improving  Member 
observed 

Investment 

granted 

number 

patents 

of 

(302) Eurostat, see Annex 18. 
(303) European Commission: Directorate-General for Health and 
Food Safety, Cruces et al. (2025), The role of healthcare in 
reducing inequalities and poverty in the EU. 

(304) Country Health Profile 2025: Greece – see earlier footnote. 
(305) Country Health Profile 2025: Greece – see earlier footnote. 
(306) US National Library of Medicine, https://clinicaltrials.gov. 
(307) The Pharmaceutical Industry in Figures, EFPIA (European 

Federation of Pharmaceutical Industries and Associations). 
(308) European Patent Office: Statistics & Trends Centre | epo.org. 

107 

61%34%5%37%14%4%11%34%Gov. & CompulsoryOut-of-pocket (OOP)Voluntary (VHI)PharmaceuticalsOutpatient careOthersDental careInpatient careShare of spendingOOP BreakdownOOP share -EU-27 average:15% 
        
 
 
States.  Under  the  Greek  RRP,  several  structural 
measures have been implemented since 2024 but 
the  actual  impact  remains  to  be  seen.  RRP 
include  an  e-prescription  system 
measures 
extended  to 
inpatient  care  and  encouraging 
investment in the pharmaceutical sector, including 
by  allowing  companies  to  offset  amounts  due  to 
the  state  (clawback  payments),  against  their  R&D 
expenditure. 

Persistent shortages and uneven distribution 
of  health  professionals  across  regions  also 
hampers  access  to  healthcare.  On  top  of  the 
low share of public funding for outpatient care, the 
Greek  health  system  faces  shortages  in  nursing 
and  several  medical  specialties,  including  GPs. 
2023 data on nurses and doctors are very similar 
to  2022  data,  pointing  to  a  significant  challenge 
for  the  health  system  (see  2025 Country  Report). 
The public sector strives to attract and retain GPs 
and  nurses.  The  situation  is  worse  in  rural  and 
hard-to-reach  areas.  Moreover,  the  prevalence  of 
probable  major  depressive  disorders  is  10  times 
higher in the medical workforce (33%) than in the 
general population (3%) (309). This huge gap points 
to  the  need  to  improve  working  conditions  for 
medical staff. Greece has taken several measures 
whose  successful  implementation  would  help  to 
address  this  issue.  The  organisational  reforms 
under  the  Greek  RRP  include  a  National  Health 
Map, to record the demand and supply of services 
in  the  health  system.  The  use  of  this  evidence-
based  tool  for  workforce  planning  would  be  an 
important 
comprehensive 
towards 
workforce strategy. Greece also participates in the 
joint action HEROES (310) under EU4Health, through 
which  EU 
countries  share  knowledge  and 
experience on health workforce planning. 

step 

a 

Greece is implementing measures to improve 
primary  healthcare, including  by  investing  in 
e-health.  Limited  availability  of  outpatient  care 
still  hinders  access  to  healthcare,  in  particular  to 
PHC  and  prevention.  Several  measures  under  the 
Greek  RRP  or  planned  under  the  current  cohesion 
policy  aim  to  boost  primary  and  outpatient  care, 
including  the  personal  doctor  reform.  They  often 
increased  use  of  digital  health  and 
include 
telemedicine to improve access for all, in particular 
in  hard-to-reach  areas.  RRP  measures  include 

(309) WHO Regional Office for Europe (2025), Mental Health of 
Nurses and Doctors survey in the European Union, Iceland 
and Norway. 

(310) JA HEROES | Health workforce planning project. 

the 

roll-out 

platforms 

(ii) creating 

(i) setting  up  systems  for  home  healthcare  and 
“hospital  at  home”  for  patients  with  chronic 
disabilities; 
for 
registration with a personal doctor and referral to 
specialty  care;  and  (iii) renovating  over  150  PHC 
units  and  adding  chronic  diseases  management 
units to each of them. The cohesion policy has also 
funded  by  over  EUR 200 million  the  set  up  and 
functioning  of  127  ‘TOMYs’  across  the  country 
(community-based PHC units targeted at the more 
vulnerable people). Cohesion funds are also aimed 
at setting up Mobile Health Units (KOMYs), but the 
be 
nationwide 
implemented.  The Greek government launched its 
National  Strategy  for  Quality  of  Care  and  Patient 
Safety  (2025-2030)  in  January  2025,  and  has 
also  contracted  a  WHO  analysis  and  proposal  for 
unified care pathways (under development). Other 
significant  investments  focusing  on  the  digital 
transformation of healthcare in Greece are part of 
the  RRP.  For  instance,  the  development  of  the 
National  Electronic  Health  Record  which  was 
launched in May 2025. Greece also participates in 
the  joint  action  TEHDAS2 (311)  and  receives  direct 
to 
grants  under 
facilitate  the  implementation  of  the  European 
Health Data Space. 

the  EU4Health  programme 

remains 

to 

However,  e-health  opportunities  have  yet  to 
be  fully  taken  up,  and  their  use  is  uneven 
across  education  levels.  Despite  the  increased 
use  of  personal  health  records  online  and  of 
people  using  online  health  services,  uptake  varies 
widely  depending  on  a  patient’s  socio-economic 
(see  2025 Country  Report),  and 
background 
literacy  remains  a 
insufficient  digital  health 
challenge.  As  an  illustration,  the  2025  OECD 
Patient-Reported  Indicator  Surveys  (PaRIS),  which 
assess  outcomes  and  care  experiences  among 
individuals  aged  45  and  over  with  chronic 
conditions, report that only 37% of Greek patients 
felt confident managing their own health, and that 
people  with  lower  education  struggle  much  more 
to use the website of their PHC practice. Mid-2025, 
Greece  has  also  launched  the  1566  “hotline” 
funded by the RRP, which is intended to be a one-
stop  information  point  on  the  health  system.  It  is 
expected to integrate all services by mid-2026. 

(311) Second Joint Action Towards the European Health Data 

Space – TEHDAS2 - Tehdas. 

108 

 
 
 
ANNEX 16: HOUSING 

Housing affordability affects a large part of 
the  Greek  population.  Low-income  households 
spent more than 60% of their income on housing. 
Seasonal  workers  and  critical  workers  struggle  to 
secure  affordable  housing  in  the  place  of  their 
assignment. Young people are highly dependent on 
family  support,  with  a  large  proportion  continuing 
to live with their parents for many years. Housing 
and  marginalised 
for 
communities 
remains  poor,  segregated  and 
insecure. 

vulnerable 

groups 

sector’s 

competitiveness 

Market  dynamics  will  not  be  able  to  provide 
housing  solutions 
in  the  coming  years. 
Housing  prices  are  increasing  continuously  at  a 
higher  pace  than  household 
income.  Several 
factors  limit  the  supply  of  the  housing  stock.  The 
construction 
is 
constrained by the increasing price of construction 
materials  and  the  labour  shortage.  The  housing 
stock for residential buildings is mainly old, with a 
The 
significant 
development  of  short-term 
reduces 
housing  supply  in  metropolitan  areas  and  tourist 
hotspots.  Investment  in  housing  stock  is  limited 
compared  with  the  investment  gap.  A  significant 
part  of  such  investment,  including  foreign  direct 
investment, 
in  the  most  rentable  market 
component. 

unoccupied. 
rentals 

proportion 

is 

not 

subsidies 

currently 

sufficient 

Public  interventions  in  the  housing  market 
to 
are 
counterbalance  market  dynamics  and  will 
require  additional  efforts.  Provision  of  social 
housing  has  stopped  since  early  2010.  Direct 
for  acquisition  and 
government 
renovation  provided  support  to  young  people  and 
low-income  households,  but  they  had  a  limited 
impact  in  a  rather  illiquid  market  where  prices 
increase.  With  support  from  the 
tended  to 
Recovery  and  Resilience  Facility,  a  comprehensive 
housing strategy is being prepared by the Ministry 
of  Social  Cohesion  and  Family,  which  has  been 
for  housing  policy  since  2023. 
responsible 
Implementation  of  the  national  housing  strategy 
will,  for  the  first  time,  require  resources  and 
coordinated  efforts  at  national  and  local  level, 
while  improved  inter-ministerial  coordination  will 
be a key milestone in such a process. 

Housing market developments 

House  prices  have  been  increasing  at  a  fast 
rate  since  2021  in  an  illiquid  market.  The 
Greek  sovereign  debt  crisis  triggered  a  prolonged 
downturn of the housing market. Following a peak 
of  11%  of  GDP  in  2007,  residential  construction 
dropped  to  0.6%  of  GDP  by  2017,  while  property 
prices fell by nearly 40% between 2009 and 2017. 
House  prices  started  to  pick  up  in  2018  with  the 
economy's gradual recovery, and grew by 13.9% in 
2023. The growth rate has moderated since then, 
still  remaining  high,  averaging  at  7.8%  in  2025, 
and  showing  signs  of  overvaluation,  of  around 
18%  in  2025  (based  on  the  standard  European 
Commission  methodology).  In  the  meantime,  the 
housing market has remained illiquid; the number 
of  transactions  per  year  has  been  below  0.5%  of 
the  total  stock,  well  below  the  EU  average  of 
2.7% (312).  Regional  differences  are  substantial: 
urban  areas  and  regions  with  strong  tourism  and 
short-term  rental  activity  have  experienced  larger 
price  increases.  As  household  income  growth  has 
lagged behind price increases, the house-price-to-
income  ratio  has  increased  rapidly  since  2021 
(Graph 
deteriorating 
pointing 
affordability.  Rental  prices  (including  existing  and 
new  rental  contracts)  have  also  accelerated  in 
recent  years,  and  grew  by  10.0%  in  2025, 
increasing rental affordability pressures.  

A16.1), 

to 

Graph A16.1: House prices, rents and price-to-
income evolution in EL and EU27 since 2005 

Source: Eurostat 

(312) Estimated for EU Member States for which data are 

available. See Eurostat. 

109 

50751001251501752000507091113151719212325Index (2005 = 100)Nominal prices ELNominal prices EU27Rental prices ELRental prices EU27Price-to-income ratio ELPrice-to-income ratio EU27 
 
   
 
 
 
also  contributed  to  housing  market  overvaluation. 
increased 
The  short-term  rental  market  has 
steadily  in  Greece  across  all  regions,  although 
tourism 
mainly 
in  metropolitan  areas  and 
hotspots.  The  number  of  properties 
listed 
increased to  245 000 (3.7%  of  the  2021  housing 
stock)  in  the  summer  months  of  2025,  and  the 
bed  capacity  surpassed  hotels.  In  2025,  foreign 
demand  started  to  contract  due  to  changes  in 
regulations.  Gross  mortgage  flows  have  been 
picking  up,  but  remain  contained,  with  net  credit 
flows  turning  to  a  small  positive  in  2025.  Home 
(by  7.5 
ownership  has  declined  considerably 
percentage points from 2010 to 2024), resulting in 
an increased demand for long-term rentals. In the 
meantime,  the  rental  market  has  remained  small 
relative  to  other  EU  countries.  Limited  affordable 
rental  supply  and  competition  with  short-term 
rentals reduce long-term rental availability. 

Graph A16.2: House supply indicators in EL since 
2005 

Housing  construction  has 
increased,  but 
remains  limited.  After  a  protracted  period  of 
subdued  activity,  housing 
construction  has 
recorded  strong  growth  since  2020,  albeit  from  a 
very  low  base.  This  trend  was  temporarily  broken 
in the first half of 2025 due to uncertainty around 
the  New  Building  Regulation (313).  The  number  of 
residential building permits dropped sharply in the 
first quarter of 2025, but picked up in the second 
half  of  the  year.  Still,  the  number  of  permits 
issued declined by 2.4% in 2025 and reached only 
38% of the level recorded in 2007 (Graph A16.2). 
Dwelling  investment  increased  to  3.1%  of  GDP  in 
2025,  to  a  level  still  well  below  the  EU  average 
(5.0%  in  2025).  Housing  supply  is  further  limited 
by the large number of houses that are not in use, 
lack  of 
have  become  uninhabitable  due  to 
investment and do not enter the market. Based on 
the  2021  census (314),  12%  of  the  total  housing 
stock  was  vacant (315)  in  that  year.  A  large 
proportion of these properties is located in regions 
where  demand  is  high.  A  significant  number  of 
vacant  houses  are tied  up  in processes  related to 
disputes  of  heirs  or  probate  and  private  debt 
enforcement.  Residential  buildings  are  mainly  old: 
out of the 3 million residential buildings in Greece, 
1.7 million  were  built  before  1980  and  only 
36 000  were  built  in  2015  or  later.  Furthermore, 
renovation activity proceeds at a very low pace.   

While  domestic  demand  remains  buoyant, 
in 
foreign  demand  diminished  somewhat 
2025.  Since  2022,  the  Greek  real  estate  market 
has  witnessed  a  surge  in  demand,  driven  by  a 
rebound 
in  domestic  demand  and  a  robust 
increase  in  foreign  direct  investment.  The  sector 
has  attracted  foreign  buyers  from  the  EU,  and 
nationals 
partly 
non-EU 
incentivised  by  the  golden  visa  programme (316) 
in  tourism, 
and  the 
particularly  in  short-term  rentals.  This  may  have 

investment  opportunities 

countries, 

from 

(313) In 2024 December, the Council of State declared 

unconstitutional several provisions of the New Building 
Regulation. This created months of uncertainty in the permit 
process, until corrective legislation was published in May 
2025. 

(314) See ELSTAT. 

(315) Vacant houses are not in use (properties serving as 

secondary residence or vacation homes are not included).  

(316) Thanks to the tightening of the requirements, the number of 
golden visa applications declined substantially from 9 400 in 
2024 to 6 600 in 2025 (taking into account one application 
per family). 

(1) 4-quarters moving sum (average for prices) 
Source: Eurostat 

the 

The  construction  sector  is  struggling  with 
labour shortages. Productivity in the construction 
sector  has  increased  rapidly  since  2020 (317). 
However, 
sector’s  activity  has  been 
constrained  by  labour  shortages  since  2022 (318). 
Greece’s  construction  job  vacancy  rate  stood  at 
4.4% in 2025, well above the EU  average (2.8%). 
This  can  be  attributed 
to  persistent  skills 
mismatches  (see  Annex  13)  as  well  as  workforce 
departure  and  migration.  Poor  job  quality  (see 

(317) Productivity measured as real value added per hours worked 
in the construction sector has increased by 40% since 2020 
(See Eurostat Statistics | Eurostat). 

(318) See Eurostat Statistics | Eurostat. 

110 

024681012140204060801001200507091113151719212325% of GDPIndex (2005 = 100)Residential building permits in m2, indexResidential buildings producer prices, indexInvestment in dwellings (right-hand side axis) 
 
   
 
Annex  11)  and  limited  stable  career paths  reduce 
the  sector’s  attractiveness.  Between  2009  and 
2023, there was a sharp decline in the number of 
young workers entering construction (319), with only 
3.3%  of  the  Greek  construction  workforce  aged 
in  EU), 
in  2023  (compared  to  7.9% 
15-24 
threatening future supply and productivity growth. 
Construction  costs  have  increased  rapidly,  as 
reflected by  the  acceleration  of  production  prices, 
although the price level is still well below the 2024 
EU average (320). Both the cost of material and the 
cost  of  labour  for  new  residential  buildings  have 
increased.  Given  the  apparent  housing  shortage 
accumulated in the past, continued strong demand 
and  the  limited  increase  in  supply,  the  housing 
construction  gap 
is  estimated  at  110 000 
dwellings by 2035 (321).  

Structural policies 

Structural  policies  relating  to  housing  are 
mainly  designed  and  implemented  by  the 
national  government.  The  Ministry  of  Social 
Cohesion and Family is responsible for the housing 
strategy.  An  inter-ministerial  committee  was  set 
coordinate  governmental 
up 
interventions. The powers of regions and cities are 
limited  to  implementing  actions.  Other  powers 
related  to  housing,  such  as  spatial  and  urban 
planning,  have  also  been  centralised  in  recent 
years. 

in  2025 

to 

to  buy 

their  primary  residence 

Housing  policy 
is  primarily  supporting 
housing  demand  through  EU  funds.  The 
Recovery  and  Resilience  Fund  has  supported  low-
to medium- income young people (up to the age of 
39) 
(9 000 
applications  approved),  and  has  subsequently 
extended support to older people (up to the age of 
50  years,  11 400  applications  approved). 
In 
addition, target benefits are allocated to students 
for accommodation (42 000 application approved) 
and  to  low-  and  medium-income  people  for 
renting (almost 900 000 applications approved).  

(319) Trends, challenges and prospects of Construction in Greece, 

2025. 

(320) See Eurostat [prc_ppp_ind_1] dataset. 

(321) Balouktsi et al. (2026) Housing investment needs in the EU. 

JRC Technical Report 144419  

Fiscal  incentives  are  in  place  to  encourage 
housing  demand  and  supply.  Revenue  income 
tax  exemptions  are  provided  for  owners  of  new  
units  that    place  their  property  on  the  rental 
market.  VAT  exemption  is  also  applied  on  new 
construction.  The  government  recently  announced 
other  tax  measures  with  the  same  objective:  a 
50%  reduction  of  the  recurrent  property  tax 
(ENFIA) for primary residences in villages with less 
than  1 500  inhabitants  (full  exemption  as  of 
2027), and an income tax reduction for freelancers 
operating  in  villages  outside  Attica  to  incentivise 
living outside the main urban areas. 

Provision  of  social  housing  stopped  during 
the  financial  crisis,  and  has  not  yet  been 
reestablished.  Following  the  abolition  of  the 
public  institution  in  charge  of  social  housing  for 
public  workers  in  the  early  2010s,  there  is  no 
dedicated  structure  for  the  provision  of  social 
housing or any dedicated financial mechanism for 
developing  and  maintaining  social  housing  stock. 
Pilot  actions  in  the  municipalities  of  Athens  and 
Thessaloniki are currently being implemented on a 
very small scale. 

for 

homelessness, 

The  preparation  of  a  housing  strategy  has 
started  and  its  implementation  will  require 
continued  efforts  and  resources 
in  the 
coming  years.  The  Ministry  of  Social  Cohesion 
and  Family  was  set  up  in  June  2023,  with 
housing 
responsibility 
assistance and affordable housing. The Ministry is 
working on setting out a national housing strategy 
with  support  from  the  Recovery  and  Resilience 
Facility.  The  strategy  will  build  on  ongoing  policy 
actions  and  the  set-up  and  implementation  of 
framework  conditions,  such  as  setting  up 
implementing  bodies  for  social  housing  provision, 
housing data analysis and policy development, and 
cooperation  with  local  governments.  However,  a 
comprehensive  legislative  framework  for  social 
housing is also required to support investments in 
affordable  energy-efficient  housing  and  social 
housing 
This 
overarching  strategic  framework  needs  to  be 
followed up and delivered in a coordinated manner 
to  address  housing-related  challenges  across 
Greece. 

households. 

vulnerable 

for 

The  registration  of  new  short-term  rental 
accommodation  in  metropolitan  areas  has 
been  frozen.  The  government  decided  to  freeze 
the  registration  of  new  establishments  in  the 
central  districts  of  Athens  for  2025.  This  decision 

111 

 
 
was then extended to other districts of Athens and 
Thessaloniki and prolonged to 2026.  

Regeneration  and  renovation  of  the  housing 
stock  proceed  at  a  low  pace.  Support  to 
renovation was provided through the Recovery and 
Resilience  Facility,  by  subsidising 
lending  for 
renovation  and  subsequent  renting  of  private 
households  (3 900  applications  approved).  New 
policy  initiatives  were  announced  at  the  end  of 
2025  to  renovate  unoccupied  dwellings  and  bring 
them back to the market. 

to 

Reform  of  building  regulation  has  been 
announced 
reduce  uncertainty  and 
simplify and speed up procedures. According to 
the  Greek  Ministry  of  Environment,  for  23%  of 
urban  planning  authorities,  the  average  time 
required  to  issue  a  building  permit  exceeds  three 
months,  while  there  have  even  been  cases  where 
this time has exceeded five years. The complexity 
of  the  process  for  issuing  building  permits,  which 
varies  by  region,  led  to  the  announcement  in 
November 2025 of the reestablishment of building 
services  and  their  integration  into the Greek Land 
Registry  The  New  Building  Regulation  is  planned 
for adoption in Q1-2026. 

Vulnerable groups 

Structural  factors  such  as  limited  social 
housing,  market  imbalances  and  tourism 
pressures  compound  affordability  issues.  In 
2024,  Greeks  spent  on  average  35.5%  of  the 
available  household  income  on  housing  costs  (vs 
19.2%  in  EU)  and  a  substantial  28.9%  of  the 
population  lived  in  households  where  housing 
costs exceeded 40% of the household’s disposable 
income,  more  than  three  times  the  EU  average 
(8.2%)(322). Greece has the highest share in the EU 
of  people  living  in  households  that  fall  behind  on 
mortgage,  rent  or  utility  bills,  at  42.8%,  far 
exceeding the EU average of 9.2%, while a third of 
the  Greek  population  (32%)  are  unable  to  pay 
utility bills (heating, electricity, gas, water, etc.) on 
time (vs 6.9% in the EU). This results in high rates 
of  energy  poverty,  with  19%  of  the  population 

(322)The overburden rate  

should be read together with the 

tenure structure (homeowner, tenants), that may differ 
across country and regions.   

unable  to  keep  their  homes  adequately  warm  (vs 
9.2% in the EU). Housing burden disproportionately 
affects tenants and homeowners with mortgages, 
as  20.9%  of  owners  with  loans  and  37.4%  of 
market-rate tenants face housing cost overburden, 
far  above  the  EU  averages  of  5%  and  19.2%, 
respectively.  Single  households  and  single-parent 
households  have  higher  risks,  with  around  two 
thirds  of  them  (65.1%  and  65.8%,  respectively) 
experiencing  housing  cost  overburden,  while  the 
corresponding  share  among  households  with  two 
or  more  adult  members  is  considerably  lower 
low-income  households 
(below  25%).  Among 
(below  60%  of  median  equivalised  income),  the 
burden  is  even more  acute,  as  on  average  62.8% 
of  their  income  is  spent  on  housing  (vs  26.9%  in 
the  EU),  while  9  out  of  10  (88.9%)  people  at  risk 
of  poverty  face  housing  cost  overburden.  In 
addition,  overcrowding  remains  high  at  27%  (vs 
16.9% in the EU). 

Regional  disparities  in  housing  availability 
and  costs  persist,  with  Central  Macedonia, 
Peloponnese  and  Eastern  Macedonia-Thrace  most 
severely  affected  by  housing  cost  overburden 
rates.  Although  rural  areas  faced  lower  housing 
cost overburden rates in the past, in 2024 housing 
cost overburden affected cities (30.1%), towns and 
suburbs  (30.3%),  and  rural  areas  (29.0%)  to 
around  the  same  degree.  In  addition,  cities  in 
Greece  face  increased  severe  housing  deprivation 
rates  compared 
rural  areas. 
Regarding  energy  poverty,  the  share  of  people 
unable to keep their homes adequately warm was 
(Western  Greece, 
higher 
Ionian 
Peloponnese,  South  Aegean)  and  the 
islands.  Government  policy  has  recently  become 
more  active,  mixing  targeted  support  with  supply 
incentives,  tax  breaks  and  regulatory  shifts,  but 
significant  gaps  remain  in  long-term  affordability 
and  access,  particularly in  urban  and  island  areas 
and for vulnerable groups. 

in  southern  Greece 

towns  and 

to 

Seasonal  and  critical  workers  struggle  to 
secure  affordable  housing,  leading  to  staff 
shortages  and  weakening  essential  services 
at local level. Finding reasonably  priced housing 
in  the  place  of  their  assignment  is  difficult  for 
employees  working 
in  sectors  crucial  to  the 
functioning and maintenance of key services, such 
as  healthcare,  education  and  care,  civil  protection 
and  public  administration.  Housing  shortages  and 
high  rental  prices  affect  major  university  cities, 
putting  financial  strains  on  students  and  their 
families  and  forcing  many  students  to  delay  or 

112 

 
 
Graph A16.3: Housing affordability selected indicators 

Source: Eurostat and European Commission calculations.  The overburden rate should be read together with the tenure structure 
(homeowner, tenants), that may differ across country and regions. 

(1.11%  of  the  Greek  population) (323),  most  of 
them  living  in  settlements  with  limited  basic  and 
often insufficient infrastructure. A significant share 
of  non-EU  citizens  in  Greece  live  in  overcrowded 
conditions  (43.8%  vs  33%  in  the  EU)  and  report 
high  housing  cost  overburden  (38%  vs  16.3%  in 
the EU), experiencing higher levels of vulnerability 
than  the  general  population.  In  addition,  one  in 
three 
(33%)  households  with  persons  with 
disabilities in Greece spent more than 40% of their 
income  on  housing  costs  in  2024,  a  share  more 
than three times the EU average (10.4%). Several 
strategic  frameworks  are  in  place  (see  Annex  14) 
recognising  housing  as  a  priority  area  for  the 
integration  of  vulnerable  groups  and 
social 
promoting  measures 
to 
to 
adequate  housing,  but  implementation  remains 
slow and fragmented. 

improve  access 

abandon  their  university  plans.  Young  Greeks 
(aged 20-29) face disproportionate burdens in the 
housing market (31.1% in 2024 vs 11% in the EU), 
contributing  to  delayed  household  formation  and 
long-term  dependence  on  family  support.  High 
housing  costs  are  therefore  linked  to  broader 
to  essential  services, 
social  strains:  access 
intergenerational 
geographic 
imbalances. 

inequality 

and 

experiencing 

A five-year national action plan (2023-2027) 
has  been  adopted 
incorporating  several 
measures  for  the  prevention  and  treatment 
of homelessness. In 2023, Greece counted 1 387 
homelessness, 
individuals 
representing  about  0.01%  of  the  population  in 
official  emergency  accommodation  and  shelters. 
78% were men and 22% were women. To support 
risk  of 
homeless  persons  and  people  at 
homelessness,  the  government  is  implementing 
the ‘Housing and Work for the Homeless’ scheme, 
combining  subsidised  housing  with  social  and 
employment  support.  In  addition,  the  ‘Kalypsi’ 
programme  offers  three  years  of  free,  quality 
housing to vulnerable groups, such as beneficiaries 
of  the  guaranteed  minimum  wage,  large  families 
and  single-parent  households  without  a  primary 
residence. The European Social Fund Plus supports 
the operation of 31 day care centres and shelters 
for  the  homeless  with  a  total  capacity  of  1 070 
beds  across  Greece,  to  address  their  basic  needs 
and  provide  counselling,  housing  support  and 
labour market reintegration services. 

for 

Housing 
and 
vulnerable 
marginalised  communities  remains  poor, 
segregated  and  insecure.  The  population  of 
Roma  people  is  estimated  at  around  116 090 

groups 

(323) Final draft records for Roma, General Secretariat for Social 

Solidarity and Combating Poverty, 2025.  

113 

 
 
 
 
HORIZONTAL 
ANNEX 17: 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 
needs to catch up with the EU average on all 
of them. Greece’s performance on education and 
innovation  (SDGs 4  and  9)  is  mixed,  with  better-

Graph A17.1: Progress towards the SDGs in Greece 

than-EU-average  results  in  2025  in  early  school 
leaving (3% vs 9.1%), but worse than EU average 
in  tertiary  educational  attainment  (42.8%  vs 
44.8%). Further, significant challenges persist with 
regard to basic  skills of 15-year-olds (2022 data, 
see  Annex 13),  adult  learning  participation  (5.2% 
vs  13.7%),  R&D  spending  (1.54%  of  GDP  vs 
2.24%)  and  the  percentage  of  households  with  a 
high-speed internet connection (46.1% vs 82.5%). 
Moreover,  according  to  2025  data,  adults  face  a 
persisting  gap  on  basic  digital  skills  (51%  vs 
60.4%  EU  average).  Decent  work  and  economic 
growth indicators (SDG 8) continue to improve but 
remain  worse  than  in  other  Member  States  in 
2025. This is reflected in the low employment rate 
(71%,  vs  76.1%  EU  average),  the  falling,  but  still 
high percentage of long-term unemployed (5%, vs 
1.9%  EU  average),  and  the  high  percentage  of 
young  people  not  in  employment,  education  or 
training (13.5%, vs 11% EU average). With support 
from  the  EU  Recovery  and  Resilience  Facility, 
Greece  is  expected  to  upskill  a  large  part  of  its 
its  public  employment 
workforce,  modernise 
services  and  upgrade  its  university  education  and 

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. 

114 

 
 
 
 
 
 
 
 
research system. 

While  Greece  is  improving  on  most  SDGs 
related to sustainability (SDGs 2, 7, 9, 12, 13, 
14), it is moving away from others (SDGs 11, 
15),  and  needs  to  catch  up  with  the  EU 
average  on  almost  all  of  them.  Greece’s 
progress  towards  SDGs 12  and  13  (Responsible 
consumption  and  production  and  Climate  action) 
between  2019  and  2024  is  mixed.  Greece’s  net 
greenhouse gas emissions per capita fell by 14.3% 
though  slightly  above  the  EU  average,  while 
energy  productivity  increased  by  16.2%.  Plus,  in 
2024,  the  percentage  of  renewable  energy  in 
gross  final  energy  consumption  in  Greece  was 
slightly  higher  than  the  EU  average  (25.4%  vs 
25.2%).  Less  positive  is  waste  generation  and 
management,  where  only 5.2%  of  materials  were 
recycled  and  fed  back  into  the  economy  for 
domestic  use  in  2024,  against  an  EU  average  of 
12.2%. Despite substantial improvement, access to 
affordable  and  clean  energy  (SDG 7)  remains 
challenging  in  some  respects.  In  particular,  in 
2024,  19%  of  Greece’s  population  was  unable  to 
keep their homes adequately warm (vs EU average 
of  9.2%).  At  the  same  time,  energy  import 
dependency  was  significantly  higher  than  for  EU 
peers,  with  77.7%  of  imports  in  gross  available 
energy  (vs  57.3%  EU  average).  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 
(against  5.9%  in  2018  and  4%  EU  average  in 
2023).  On  SDG 14  (Life  below  water),  Greece 
performs  relatively  well,  with  20.1%  of 
its 
territorial  waters  designated  as  marine  protected 
areas in 2023 (vs 13.7% EU average) and 97% of 
coastal  bathing  waters  with  excellent  quality  in 
2024  (88.8%  at  EU  level).  The  EU  Recovery  and 
is  supporting  a  series  of 
Resilience  Facility 
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 
nearly all of them. On SDGs 1 and 3 (No poverty 
and  Good  health  and  well-being),  despite  some 
improvements, Greece underperformed against the 
EU  average  in  2024  across  several  domains: 
26.9% of the population was at risk of poverty and 
social exclusion (vs 21%); 14% was materially and 

socially  deprived  (vs  6.4%);  28.9%  of  Greece’s 
population  was  overburdened  with  housing  costs 
(vs  8.2%  for  EU  peers);  12.1%  of  the  population 
aged 16 or over reported unmet needs for medical 
care 
(vs  2.5%).  Further,  while  more  people 
reported  being  healthy  in  2024  than  their  EU 
counterparts  (78.3%  vs  68.5%),  Greece's  total 
antibiotic consumption in 2024 was 47.3% higher 
than  the  EU  average.  In  2023,  36%  of  Greece’s 
population aged 15 or over were smokers, against 
the  EU  average  of  24%  (see  Annex 15).  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 
(especially  on  gender  equality).  In  2025,  the 
employment  rate  of  women  was  17.4 percentage 
points  lower  than  that  of  men  (against  9.6 pp.  in 
the  EU),  while  women  held  only  29.8%  of  senior 
management  positions  and  23.9%  of  political 
positions  (against  33.6%  and  33.6%  respectively 
in  2025,  the  overall 
in  the  EU).  Moreover, 
attainment  of  women  in  tertiary  education  was 
15.5 percentage  points  lower  than  that  of  men, 
against  a  gap  of  11.3  in  percentage  points  at  EU 
level.  On  territorial  inequalities,  people  in  rural 
areas in Greece still face a disproportionally higher 
risk of poverty or social inclusion than those living 
in  cities  than  the  EU  average  (9.3 percentage 
points  difference  in  2024,  whereas  no  gap  was 
recorded  at  EU 
for 
purchasing  power,  GDP  per  capita  in  Greece  was 
just  68.5%  of  the  EU  average  in  2025.  Up  until 
2026, the EU Recovery and Resilience Facility will 
support  a  wide  range  of  measures  to  promote 
employment,  including  among  women,  the  long-
term unemployed and people with disabilities, and 
upgrade the national healthcare system. 

level).  When  adjusted 

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  2025  (SDG 8),  which 
corresponded to  56.9%  of  the  EU  average.  At the 
same  time,  10.7%  of  the  working  population  was 
at risk of poverty in 2024, against 8.2% in the EU. 
Further, despite improvements, the investment gap 
persists: 16% of GDP in 2024 vs 21.7% in the EU. 
On SDG 16 (Peace, justice and strong institutions), 
Greece 
is  moving  away  from  the  goal,  as 
evidenced  by  the  lower  score  in  the  Corruption 
Perceptions Index in 2025 (50 vs 62 EU average), 
the reduced share of the population perceiving the 
justice  system  as  independent  in  2025  (38%  vs 

115 

 
54%  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  is  supporting  broad-based  structural 
reforms,  including  in  the  areas  of  justice,  public 
administration  and  the  business  environment, 
which  are  expected  to  improve  the  functioning  of 
the economy at large. 

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

116 

 
ANNEX 18: COMPETITIVE REGIONS 

Regional development trends 

Despite  Greece’s  post-COVID-19  economic 
recovery 
in  terms  of  GDP  per  head, 
significant  divergence  with  the  EU  average 
persists  and  regional  disparities  remain. 
Notwithstanding strong real GDP per head growth 
compared  with  2014  (see  Table  A18.1),  the  gap 
between the Greek regions and the EU average in 
terms  of  GDP  per  head  in  Purchasing  Power 
Standards  (PPS)  remains  significant,  with  most 
regions (8 out of 13) still below the EU average of 
60%. The economic and financial crisis that began 
in  2008  led  to  a  significant  divergence  in  all  the 
Greek  regions  compared  with  the  rest  of  the  EU. 
Over  the  last  two  decades,  this  has  not  been  a 
smooth trajectory: a strong rebound until  2008, a 
sharp  downturn  during  the  economic  crisis  in  the 
2010s,  and  a  partial  recovery  post-2020.  From 
2014  onwards, 
trend  either 
stopped or stabilised in most of the Greek regions. 
Over  the  last  decade  however,  there  are  varying 
regional  dynamics,  with  some  regions  such  as 
Kentriki  Makedonia,  Sterea  Ellada  or  the  capital 
region  displaying  slight  convergence  with  the  EU 
while  other  regions  continued  to  further  diverge 
such  as  Dytiki  Makedonia  or  the  island  regions 
Voreio Aigaio and Notio Aigaio. Based on available 
data, all the Greek regions are categorised as less 
developed,  apart  from  Attiki,  which  fulfils  the 
criteria  to  qualify  as  a  transition  region  (see 
Map A18.1). 

this  divergence 

The  capital  region  Attiki  leads  Greece’s 
economy  concentrating  higher  Gross  Value 
Added  sectors,  while  other  regions  mostly 
lower-productivity  sectors.  Attiki 
rely  on 
accounted for around 50% of Greek GDP in 2024, 
with  GDP  per  head  (in  PPS)  at  96%  of  the  EU 
average  (still  far  below  the  124%  of  2004). 
However,  regions  such  as  Ipeiros  and  Anatoliki 
Makedonia-Thraki are considerably lagging behind 
the EU average in terms of GDP per head (in PPS) 
at  around  45%  by  2024.  Expressed  in  GDP  per 
hour  worked,  regional  labour  productivity  rates 
remain  at  55%  of  the  EU  average,  while  in  the 
long  run  real  productivity  (annual  growth  rates) 
remained unchanged. In 2024, Attiki demonstrated 
the  higher  productivity  (70%  of  the  EU  average) 
while Ipeiros and Voreio Aigaio ranked among the 
EU  regions  with  the  lowest  productivity  levels, 
(see  Table  A18.1).  Geographic 
below  40% 

constraints - especially the isolation of islands and 
mountainous  regions  -  raise  transportation  costs 
and  limit  market  access,  while  uneven  human-
capital  distribution  and  demographic  decline 
further  widen  gaps,  as  skilled  workers  cluster  in 
urban centres.  

Map A18.1:  GDP per head compared with the EU 
average 

2021-2023 average GDP per head in purchasing power 
standard compared to the EU average. 
Source: Commission calculations based on Eurostat 16 July 
2025 data. 

regions 

Lower  productivity  is  driven  by  the  sectoral 
specialisation (324)  of  the  Greek  regions. 
(Peloponnisos,  Dytiki 
Resource-based 
Ellada,  Dytiki  Makedonia,  Thessalia,  Ipeiros,  Kriti), 
where  in  2024  more than  15%  of  workforce  was 
employed 
in  agriculture,  combine  agricultural 
production  with  downstream  processing,  forming 
integrated  ecosystems.  Manufacturing 
locally 
activities (325)  are 
in  Kentriki 
concentrated 
Makedonia,  Attiki,  Sterea  Ellada,  and  Anatoliki 
Makedonia-Thraki.  However,  environmental  and 
circular  economy  activities  are  also  emerging  in 
several  non-manufacturing 
including 
Ipeiros,  Dytiki  Ellada,  Thessalia  and  Notio  Aigaio. 

regions, 

(324) Source: European Commission analysis, based on Eurostat 
data (NACE, number of businesses, turnover, number of 
employees). 

(325) Manufacturing regions specialise in basic metals, coke and 
other non-metallic minerals, chemicals, pharmaceuticals, 
rubber and plastics, machinery, electronics, and textiles. 

117 

 
 
 
 
 
 
 
Table A18.1:Key regional indicators (at NUTS2 level) for Greece 

Dark green - the indicator is 120% or more of the EU average. 
Light Green - the indicator is 100% or more, but less than 120% of the EU average. 
Yellow - the indicator is 90% or more, but less than 100% of the EU average. 
Light red – the indicator is 75% or more, but less than 90% of the EU average. 
Dark red – the indicator is below 75% of the EU average. 
This colour scale applies to ‘positive’ indicators, where higher values are favourable. 
For ‘negative’ indicators (where higher values are unfavourable), the colours are reversed. 
Source: Eurostat and JRC 

This reflects a broader shift towards sustainability 
and  waste  recovery  across  different  regional 
production  models.  Certain  niche  sectors  —  such 
as  ceramics,  porcelain,  jewellery  and  traditional 
crafts  —  remain  geographically  concentrated  and 
linked  to  local  cultural  heritage  and  specialised 
know-how.  Island  and  coastal  regions,  such  as 
Notio  Aigaio,  Ionia  Nisia  and  Voreio  Aigaio  show 
strong specialisation in blue-economy, tourism and 
hospitality.  At 
level,  blue  economy 
activities 
represent  a  significant  share  of 
employment  and  value  added,  but  it  reinforces 
seasonal labour patterns. 

regional 

Key challenges for regional 
competitiveness 

regions 

the  pace  of 

remain  emerging 

classified as Moderate Innovators (326), while most 
Greek 
innovators, 
reflecting  lower  R&D  intensity,  weaker  digital 
uptake  and  limited  knowledge  diffusion.  Although 
the  innovation  performance  has  improved  for  all 
regions  since  2018, 
internal 
convergence remains limited. In 2023, Notio Aigaio 
(0.24%), Ionia Nisia (0.37%) and Dytiki Makedonia 
(0.98%) recorded among the lowest levels of R&D 
expenditure  as  a  share  of  GDP  in  the  EU, 
in  regional 
highlighting  structural  weaknesses 
territorial 
uneven 
and 
research 
development (see Annex 4). At the same time, the 
presence of around 150 university spin-offs across 
several  regions  — with a notable concentration in 
Thessaloniki and Northern Greece  — points to the 
growing  regional  dimension  of  the  innovation 
ecosystem (327).  However,  regional  differences  in 

capacity 

High concentration of research investment in 
Attiki  and  Kriti  drives  the  uneven  regional 
innovation  capacity.  Attiki  and  Kriti  are 

(326) Regional Innovation Scoreboard 2025 - Regional profile 

Greece. 

(327) General Secretariat for Research and Technology (ΓΓΕΤ). 
Data on spin-offs derived from researchers and research 

118 

GDP per head (PPS, index)Population growthReal GDP per head growthProductivity: GDP (PPS) per hour worked (index)Change in working age population (20-64)Population aged 25-34 with high educational attainmentEmployment in knowledge-intensive servicesAt-risk-of-poverty or social exclusion rate (AROPE)Energy povertyR&D expenditureAccess to healthcare - Rural areasEU27=100Average annual change per 1000 residentsAverage annual % changeEU27=100Average annual % change% of population aged 25-34% of total employment% of population% of total population% of GDPPopulation within 10 minutes by car from nearest hospital  (%)20242015-20242014-202420242016-2025202520252025202520232023EU1001.81.4100.0-2.644.841.721.09.22.2429.9Greece69-4.21.954.9-7.042.838.727.518.11.5413.0Attiki96-2.82.069.5-6.551.150.123.617.41.7548.7Voreio Aigaio429.40.239.211.319.135.027.914.21.066.9Notio Aigaio70-0.41.047.3-3.826.625.527.521.10.246.7Kriti60-1.11.842.6-3.436.529.618.212.31.669.2Anatoliki Makedonia, Thraki      45-4.81.541.8-4.942.533.931.615.01.168.8Kentriki Makedonia55-5.52.448.7-7.244.334.733.022.11.5113.9Dytiki Makedonia48-11.9-2.649.3-15.447.037.029.515.80.988.5Ipeiros45-3.01.339.6-7.347.035.125.312.21.819.8Thessalia53-7.02.245.8-9.837.934.430.510.81.136.7Ionia Nisia63-5.41.645.4-10.232.021.535.725.80.3712.7Dytiki Elláda49-6.21.341.0-8.726.730.127.930.41.5612.0Sterea Elláda60-6.62.452.2-9.733.227.327.411.31.0713.1Peloponnisos57-8.22.046.0-12.141.727.438.121.21.1317.3  
 
 
 
   
 
intellectual property (IP) management frameworks 
limit  spin-off 
across  universities  continue  to 
creation and development at regional level. 

Innovation-related  gaps  translate  into  less 
competitive  regions  outside  capital  city. 
Regions  outside  Attiki  face  greater  difficulties  in 
scaling  up  firms,  integrating  into  EU  value  chains 
and  commercialising  innovation,  particularly  in 
services-dominated 
tourism-dependent 
and 
economies.  Administrative  complexity,  uneven 
access  to  skills  and  connectivity,  and  limited 
business  R&D  investment  continue  to  weigh  on 
regional 
Strengthening 
regional  productivity  and  SME  competitiveness 
could 
in 
underperforming sectors and supporting industrial 
diversification  based  on 
regional  ecosystem 
strengths  and  innovation  potential.  Investment  in 
R&D, 
innovation  ecosystems  and  ultra-fast 
broadband could facilitate innovation diffusion and 
support  the  green  and  digital  transition,  including 
energy-intensive industry transformation  and  net-
zero technologies. 

improving  productivity 

productivity 

focus  on 

growth. 

smart 

specialisation 

Regional  research  and  innovation  strategies 
for 
(RIS3)  guide 
investment  priorities  across  the  13  Greek 
regions,  but  regions  with  stronger  research–
industry  links  and  innovation  ecosystems 
tend  to  advance  more  rapidly 
in  their 
implementation. Priority domains reflect regional 
structures (328).  However, 
economic 
greater 
alignment between smart specialisation strategies, 
industrial  policy,  skills  systems  and  research 
further 
regional 
capacity 
continued 
innovation 
ecosystems, 
implementation  of  spatial  planning 
reforms, 
including Local and Special Urban Plans, may help 
improve  the  framework  conditions  for  business 
development and investment. 

strengthen 
while 

could 

Dytiki  Makedonia, 
Ipeiros,  Peloponnisos, 
Sterea  Ellada  and  Thessalia  face  significant 

organizations participating in projects under the PRAXE 
programme. 

(328) Priority domains cover: agri-food and bioeconomy in 

agricultural regions such as Peloponnisos, Thessalia and 
Dytiki Ellada; manufacturing and advanced materials in 
industrial regions such as Kentriki Makedonia and Sterea 
Ellada; and tourism innovation and the blue economy in 
island and coastal regions including Notio Aigaio, Ionia Nisia 
and Kriti. 

labour  and  skills  shortages 

demographic  decline.    This 
is  marked  by 
population ageing, relatively low fertility rates, and 
outmigration, particularly in rural areas, mid-sized 
mainland  municipalities  and  mountainous  areas 
(see  Map  A18.2).  Regional  competitiveness  is 
in 
hindered  by 
agriculture,  manufacturing,  and  services,  while 
declining  working-age  populations  combined  with 
elevated  levels  of  youth  unemployment  reduce 
productivity  and  hinder  investment.  These  trends 
undermine,  exacerbate  territorial  disparities,  and 
constrain 
for  sustainable  and 
inclusive growth.  

the  capacity 

Map A18.2:  Average annual population change at 
NUTS3 level (2015-2024) 

Source: Eurostat and JRC 

Uneven  distribution  of  human  capital  may 
hinder  growth  potential  outside  the  Attiki 
region. While Greece has one of the lowest rates 
of early leavers from education and training in the 
EU,  geographical  imbalances  are  prevalent  as  in 
certain regions, such as Peloponnisos and Anatoliki 
Makedonia,  Thraki,  early  school  leaving  is  up  to 
four  times  higher  than  in  the  most  populated 
region of Attiki. On tertiary educational attainment, 
while  Greece  stood  close  the  EU  average  in  the 
25-34  age  range  in  2025,  there  was  a  gap  of 
around  25  pp.  between  the  leading  Attiki  (51%) 
Dytiki  Makedonia  and  Ipeiros  regions  (both  47%) 
and  the  worst  performers  Voreio  Aigaio,  Notio 
Aigaio  and Dytiki  Ellada (19%,  26.6%  and  26.7%, 
respectively). 

119 

 
 
 
 
 
higher 

towards 

face  seasonal  employment  patterns,  pressure  on 
housing  and  infrastructure  during  peak  periods, 
and  exposure  to  environmental  and  climate  risks 
such  as  water  scarcity  and  wildfires.  Limited 
economic  diversification  and  strong  dependence 
on  external  demand  continue  to  weigh  on  the 
resilience  of  these  regional  economies,  while 
diversification 
value-added 
activities remains a challenge. In many coastal and 
island  regions,  the  economic  viability  of  small-
scale  fleets  remains  fragile,  reflecting  limited 
investment  capacity  for  fleet  modernisation, 
investments. 
innovation 
Furthermore,  generational  renewal  in  fisheries  is 
limited,  with  an  ageing  workforce  and  declining 
attractiveness  of  the  profession  for  younger 
to 
income  volatility  and 
generations, 
pressures 
(e.g. 
reduced 
overfishing of key stocks like anchovy and sardine 
in the Thermaikos Gulf).  

sustainability 

stocks 

linked 

from 

and 

fish 

of 

affected 

households 

Housing  affordability  is  a  pressing  issue, 
with  households  across  Greek  regions  and 
cities recording the EU’s highest housing cost 
overburden  (26.4%)  –  a  figure  that  triples 
for  lower-income  households  (Map  A18.4). 
Despite  ongoing  efforts  to  alleviate  housing 
overburden  in  Greek  households,  in  2025  the 
share 
remains 
considerably  above  national  average  in  Kentriki 
Makedonia  (32.3%),  Peloponnisos  (33.3%),  and 
Anatoliki  Makedonia-Thraki  (33.9%).  Repurposing 
of  vacant  or  underutilised  public  building  stock, 
upgrades 
in 
in  student  accommodation 
Anatoliki  Makedonia-Thraki,  Dytiki  Ellada),  social 
housing at regional and local level are planned and 
could  be  expanded  further.  At  the  same  time, the 
large  stock  of  vacant  housing  —  many  of  which 
secondary  homes,  located  in  less  dynamic  areas, 
and  comparatively  fewer  in  high-demand  regions 
such  as  Attiki  —  highlights  both  structural 
imbalances  and  untapped  potential  (see  Annex 
16).  Strengthening  housing  supply  through  urban 
regeneration,  renovation  and  incentives  for  long-
term  rentals,  alongside  measures  addressing 
energy poverty through residential renovation and 
renewable  energy  solutions,  could  further  support 
housing affordability. 

(e.g. 

showing 

increasing 

Employment  opportunities  and  access  to 
education and training tend to drive regional 
disparities  in  the  unemployment  rate  and 
gender  employment  gap.  Unemployment  rates 
vary  significantly  across  regions,  with  the  highest 
rates  observed  in  2025  in  northern  regions  (12% 
in  Kentriki  Makedonia,  15%  in  Dytiki  Makedonia 
and 11% in Anatoliki Makedonia-Thraki). Likewise, 
regional disparities in gender employment gap are 
prevalent,  in  regions  such  as  Sterea  Ellada  and 
Thessalia 
gender 
an 
employment  gap,  while  the  gap  is  gradually 
closing  in  Attiki  and  Ipeiros.  The  gap  remains 
prominent  in  rural  areas  and  keeps  growing  to 
25pp,  the  second  highest  in  the  EU.  Several 
structural  factors  underpin  these  challenges  (i) 
in  male-dominated 
sectoral 
activities;  (ii)  high  seasonality  in  tourism-driven 
coastal  regions;  (ii)  skills  mismatches  and  low 
female  participation  in  STEM;  (iv)  transport  and 
connectivity  constraints;  (v)  demographic  ageing 
and outmigration; (vi) the prevalence of micro and 
small 
flexible  work 
arrangements and limited childcare and long-term 
care infrastructure, particularly in rural  and island 
areas (see Annex 11). 

firms  offering 

concentration 

limited 

Map A18.3:  Nights spent at tourist accommodation 
establishments by NUTS 3 region (2023) 

Source: Commission calculations based on EUROSTAT and 
JRC (ARDECO) data 

Heavy  dependence  on  seasonal  tourism  in 
coastal and insular areas has contributed to 
strong  GDP  growth  but  also  led  to  high 
economic and sectoral concentration (see Map 
A18.3). Notio Aigaio, Ionia Nisia and Voreio Aigaio 

120 

 
 
 
 
Table A18.2:Main development trends, challenges and the concentration of resources 

Source: European Commission based on Eurostat data; categories of regions based on Map A18.1. 

121 

Less developed regions(population 6.6 million)Less developed regions in Greece demonstrate productivity gaps compared with the EU average, due to specialisation in low- to medium-productivity sectors such as traditional agriculture, seasonal tourism, small-scale retail, and construction. However, specialisation patterns in regions such as Kentriki Makedonia, Thessalia, Sterea Ellada and Anatoliki Makedonia-Thraki, provide a solid basis for industrial differentiation and catch-up with the EU average, both in terms of productivity and PPS per capita. Regions with high tourism density such as Notio Aigaio, Kriti and Ionia Nisia may benefit from investments in higher added value chains as part of dedicated regional transformation plans.Transition regions(population 3.8 million)As the sole transition region, Attiki is Greece’s primary growth engine, contributing a significant share of national GDP, employment, and innovation. As Greece’s main metropolitan hub, the capital region gathers key assets: advanced infrastructure, skilled human capital, research institutions, financial services, and international connectivity through its ports, airports, and logistics networks. Despite these strengths, Attiki lags behind other European capital regions such as Área Metropolitana de Lisboa (PT), Warszawski stołeczny (PL), Comunidad de Madrid (ES), and Wien (AT) in terms of its competitiveness. Leveraging its existing advantages while promoting diversification toward innovative and high-productivity sectors, supporting intermodal and sustainable urban transport (including metro expansion, e-buses, tram networks, and charging infrastructure), enhancing the circular economy and solid waste management, and addressing rising housing costs would provide a solid foundation for convergence with leading European capitals.Specific territoriesInsular, coastal, and remote regions, such as small and medium islands in Notio Aigaio, Voreio Aigaio and Ionia Nisia, experience dense tourism pressure driven by seasonal demand, limited carrying capacity, and high dependence on tourism-related economic activities. Although tourism is a vital source of income, employment, and regional development, excessive visitors puts significant strain on local infrastructure, housing, natural resources, and public services, particularly during peak periods. Speeding up initiatives to boost insular sustainability - such as the Greco-islands initiative - could boost insular economies and create a solid basis for future resilience. As a key just transition region, Dytiki Makedonia faces challenges linked to the decarbonisation of its regional economy, including demographic decline due to net out-migration and aging population and high unemployment rates.National cohesion aspectsInterregional connectivity in Greece is largely dependent on road transport and private cars. Private cars are particularly prevalent in Attiki, indicating scope and need for more sustainable mobility. For rail to constitute a sustainable alternative to road transport, interregional connectivity and cross-border connections would benefit from improvement.  In addition, Greek regions struggle to efficiently manage their water resources and wastewater outflows, which is reflected in high water leakage rates and non-compliance with the urban wastewater acquis. Water scarcity impacts every sector of the regional economy, making it absolutely essential to strengthen and build resilience in the water sector.  Low recycling and high landfill rates highlight the need for regional waste management plans and local separate collection schemes to be properly implemented, as well as investment to encourage behavioural shifts towards recycling.Main development trends 
 
   
 
Map A18.4:  Housing cost overburden rate at 
NUTS2 level (2025) 

regions  lag  behind,  partly  due  to  geographical 
constraints,  dispersed  populations  and  higher 
infrastructure deployment costs. Although national 
and  EU-funded  initiatives  have  contributed  to 
expand the infrastructure deployment and improve 
basic  internet  access,  gaps  persist  in  very  high-
capacity  network  connectivity, 
reliability,  and 
digital skills. Disparities persist between urban and 
rural areas in the share of people with above basic 
digital  skills  (21.6%  vs  13.5%  respectively  in 
2024) (see Annex 13).  

rising 

Water management is problematic across the 
Greek  regions.  This  is  most  notably  the  case  in 
the Greek islands and Thessalia. The Greek regions 
face increasing water scarcity driven by prolonged 
temperatures  and  growing 
droughts, 
demand  from  agriculture  and 
tourism,  with 
particularly acute pressures in the Aegean islands, 
Kriti, Thessalia and parts of mainland Greece, such 
as  Anatoliki  Makedonia-Thraki.  In  these  regions, 
water abstraction rates are high in relation to the 
available long-term freshwater resources (329). This 
puts pressure on productive activity and increases 
Greece’s  vulnerability  to  climate  shocks,  which  in 
turn  weighs  on  regional  competitiveness.  High 
distribution 
water 
infrastructure  and 
reuse 
further  exacerbate  pressures  on  water  resources, 
highlighting 
improved  water 
management, resilience and efficiency (see Annex 
10).  

ageing 
limited  wastewater 

the  need 

leakage 

rates, 

for 

efficiency  and 

Waste  management  performance  affects 
resource 
environmental 
sustainability, most notably Attiki and in the 
islands.  Recycling  rates  remain  low  at  around 
17.4%,  while  landfilling  accounts  for  81%  of 
municipal  waste,  reflecting  infrastructure  gaps, 
delays  in  regional  waste  management  plans  and 
uneven 
implementation  of  separate  collection 
systems.    Territorial  imbalances  are  also  evident. 
Attiki generates around half of national municipal 
waste and relies heavily on long-operating landfill 
sites,  while 
face  additional 
constraints related  to limited land availability and 
strong  seasonal  tourism  pressures.  These  factors 
limit  the 
weigh  on  resource  efficiency  and 
development of circular economy  activities across 
regions (see Annex 8). 

regions 

island 

(329) EEA, Seasonal water scarcity conditions for European sub 
units for the four quarters of 2022, as measured by water 
exploitation index plus (WEI+). 

Source: Commission calculations based on EUROSTAT and 
JRC (ARDECO) data. The overburden rate should be read 
together with the tenure structure (homeowner, tenants), that 
may differ across country and regions. 

Social disparities  between  the  Greek  regions 
remain  a  challenge.  Approximately  28%  of  the 
Greek  population  is  at  risk  of  poverty  or  social 
exclusion, exceeding the EU average of 21%, while 
marked  regional  variations  exist.  In  2025,  regions 
such  as  Peloponnisos,  Ionia  Nisia  and  Kentriki 
Makedonia,  report  the  highest  rates.  Energy 
poverty remains a significant social and economic 
challenge. Households in Ionia Nisia, Dytiki Ellada, 
Peloponnisos  and  Notio  Aigaio  are  struggling  to 
keep  their  homes  warm.  20%  of  people  self-
reporting  medical  needs  in  2025  forwent  needed 
care, due to financial reasons, long waiting lists or 
distance,  with  the  worst  outcomes  recorded  in 
Dytiki  Makedonia  (25.5%),  Voreio  Aigaio  (22.5%), 
Kriti  (21.4%)  and  Sterea  Ellada  (21.2%).  This 
highlights  the  need  for  further  investments  in 
health  workforce,  in  primary  care  and  outpatient 
facilities, including mobile assets, and upgrades in 
old 
(see 
Annex 15).   

regional  hospitals  where 

relevant 

Access  to  digital  services  is  limited  in  many 
rural  areas  and 
islands.  Digital  gigabit 
connectivity remains below the EU average and is 
highly  concentrated in metropolitan regions (Attiki 
and Kentriki Makedonia) benefiting from a greater 
very  high-capacity  network 
(VHCN)  coverage. 
However,  many  rural,  island,  and  mountainous 

122 

 
 
 
 
 
 
Growing regional asymmetries related to the 
impacts  of  climate  change,  with  each  region 
experiencing  distinct  vulnerabilities  that  -  if 
unaddressed  -  could 
lead  to  significant 
economic  loss  in  the  long  run  (see  Map 
A18.5) (330).  Central  and  northern  regions  such  as 
Thessalia  and  Kentriki  Makedonia,  face  increased 
flood  risk  due  to  more  intense  rainfall,  while 
southern mainland and coastal areas such as Kriti 
and  Notio  Aigaio  experience  prolonged  heatwaves 
and  heightened  wildfire  danger,  including  coastal 
erosion,  and  water  scarcity.    In  particular,  regions 
such  as  Ionia  Nisia,  Dytiki  Ellada,  and  Kentriki 
Makedonia  face  potential  GDP  losses  exceeding 
5%  of  regional  GDP  under  a  +2 °C  warming 
scenario by 2050. Addressing these differentiated 
climate risks requires a detailed assessment at the 
regional  and  local  level  to  guide  the  prioritisation 
of targeted mitigation and adaptation investments 
over the medium to long term, in turn significantly 
reducing  socio-economic  losses  and  enhancing 
regional  resilience  (see  Annex  10).  The  blue 
economy  in  coastal  areas,  and  aquaculture  in 
and 
particular, 
including  waste  and 
operational  challenges, 
effluent  management  pressures 
intensive 
in 
farming areas (e.g. in Kentriki Makedonia) and the 
spread  of  invasive  species  in  lagoon  systems, 
affecting both production and biodiversity.  

environmental 

faces 

also 

creating 

Dytiki  Makedonia,  the  Megalopolis  area,  and 
the Greek islands are undergoing a transition 
away  from  coal  and  fossil  fuels.  Through 
targeted  support  aimed  at  modernising 
local 
economies, 
jobs,  and 
promoting clean energy investments, these regions 
are  working 
the  socio-economic 
inequalities  caused  by  decarbonisation  while 
strengthening their resilience. This process aims to 
ensure that the green transition is socially fair and 
economically  inclusive  for  the  communities  most 
affected. 

sustainable 

reduce 

to 

Map A18.5:  Estimated GDP loss by 2050 due to 
climate change under the +2°C scenario, NUTS3 

Source: Regional economic climate risks in Europe – Early 
insights from a spatial growth model, 2025 

In  medium-sized  and  smaller  cities,  public 
transport systems are often characterised by 
non-existing  or  ageing  fleets,  low  service 
integration, 
frequency  and  weak  modal 
increasing reliance on private car (331). Mobility 
patterns remain dominated by road transport and 
private  car  use,  while  rail  and  interregional  links 
remain underdeveloped. (332) Regional disparities in 
charging  infrastructure  constrain  the  uptake  of 
electromobility,  with  Attiki  leading  among  the 
Greek regions, yet still having less than half of the 
EU  average  (333).  Persistent  gaps 
in  all-year 
connectivity  for  some  remote  islands  and  the 
limited  electrification  of  maritime 
transport, 
including  hybrid  vessels  and  cold  ironing  systems 
in  ports,  further  contribute  to  limited  access  to 
markets  and  services,  GHG  emissions  and 
environmental  pressure (334). 
Improving  urban 
public  transport  beyond  Athens  and  Thessaloniki, 
rail 
alongside 

investment 

continued 

in 

(330) https://ec.europa.eu/regional_policy/information-

sources/publications/studies/2025/regional-economic-
climate-risks-in-europe_en. 

(331) OECD (2024), OECD Economic Surveys: Greece 2024, OECD 
Publishing, Paris, https://doi.org/10.1787/a35a56b6-en.  

(332) OECD (2020), Regional Policy for Greece Post-2020, OECD 

Territorial Reviews, OECD Publishing, 
Paris, https://doi.org/10.1787/cedf09a5-en. 

(333) Electric vehicles charging points within 10 km in 2022, 

Eurostat. 

(334) IEA (2023), Greece 2023 Energy Policy Review. 

123 

 
 
 
 
 
 
electrification  and  regional  and  intermodal  rail 
links, would support interregional  connectivity and 
low-carbon  mobility,  while  investing  in  logistics 
would  boost interregional  economic  activities (see 
Annex 8).  

in 

investments  are  heavily 

The  effective 
implementation  of  public 
investments  is  often  hampered  by  the  low 
administrative  capacity  of  beneficiaries  at 
the  regional and local  level.  Beneficiaries may 
struggle  with  complex  regulatory  frameworks, 
timely  project  implementation  and  management 
of assets and services. This  capacity gap leads to 
significant  delays 
fund  absorption  and 
underutilisation  of  available  resources,  which 
might  exacerbate  regional  disparities.  In  addition, 
reliant  on 
regional 
transfers  from  the  central  government  budget, 
indicating 
and 
fiscal 
constrained  financial  autonomy  at  subnational 
level  (335).  As  a  result,  regional  development 
strategies  often 
long-term 
lack  a 
orientation, 
their  effectiveness  and 
raising concerns about the long-term sustainability 
and  strategic  impact  of  regional  investments.  In 
this  direction,  the  RRF-funded  Local  Government 
Performance  Monitoring  Hub  has  developed  a 
comprehensive  set  of  final  evaluation  indicators 
for  monitoring  socio-economic  performance  of 
municipalities (336). 

collectability 

reducing 

limited 

stable, 

and 

local 

regional 

To  address  regional  inequalities,  Greece  is 
planning  the  rollout  of  a  national  strategy 
for 
development, 
extending  to  2035,  aiming  at  bridging  the  gap 
with  the  EU  average  while  reducing  internal 
disparities  between  regions  through  bottom-up 
consultation  with  over  1,000  local  entities  and 
horizontal  national  policies  integrating  regional 
dimensions  and  territorial  particularities.  At  the 
project  level,  all  available  resources  (NSRF,  RRF, 
Public  Investment  Program)  are  coordinated  in  a 
single platform (337).  

(335) OECD (2025), OECD Dashboard on Subnational Government 

Structure and Finance, 
https://www.oecd.org/en/data/dashboards/oecd-dashboard-
on-subnational-government-structure-and-finance.html. 

(336) https://deiktesota.gov.gr/portal/. 

(337) erga.gov.gr.  

124 

 
 
ANNEX 19: TRANSPORT 

This  Transport  Annex  presents  the  state  of  play, 
and  the  challenges  Greece  is  facing  with  the 
implementation  of  the  trans-European  transport 
network  (TEN-T),  the  European  railway  traffic 
management system (ERTMS), and road safety. 

is 

included 

Greece has a strategically important railway 
network at the south-eastern edge of the EU, 
forming  a  gateway  between  Europe  and  the 
Eastern  Mediterranean  and  Black  Sea 
regions.  A  substantial  part  of  the  national  rail 
network 
trans-European 
in 
transport  network  (TEN-T),  underpinning  Greece’s 
role as a transit and maritime access country. Two 
TEN-T corridors cross the country: the Baltic Sea – 
Black  Sea  –  Aegean  Sea  (BBA)  and  the  Western 
Balkans  –  Eastern  Mediterranean 
(WBEM) 
European  transport  corridors,  anchoring  Greece 
firmly  in  north-south  and  west–east  transport 
flows. 

the 

The  TEN-T  in  Greece  comprises  3 047 km  of 
rail (1 767 of which are on the core network) 
and 4 799 km of road (1 760 of which on the 
core  network).  Greece  has  no 
inland 
waterways  on  the  TEN-T.  It  has  38  airports 
(including  three  core  airports),  41  ports  (including 
six core ports) and 17 urban nodes (338). 

rail 

and 

high 

The  north-south  axis  of  the  BBA  Corridor  is 
strategic 
of 
geopolitical 
significance,  providing 
connectivity 
between  Aegean  ports  and  Central  and 
Eastern  Europe,  as  well  as  onward 
connections  towards  Ukraine  and  Moldova. 
This  role  has  gained  increased  prominence  in  the 
context  of 
resilience 
considerations  and  has  been  further  reinforced 
through  enhanced  cooperation  between  Greece, 
Bulgaria and Romania.  

regional  security  and 

the  ERTMS  enhances  network  capacity  and 
operational 
the 
competitiveness of the rail sector. 

efficiency, 

increasing 

To  meet  its  national  plan’s  ERTMS  roll-out 
target  by  2035 (339),  Greece  aims  to  deploy 
ERTMS  on  a  length  of  1 011 km,  with  a  full 
operational  concept  behind,  anchored  in  mature 
safety management systems for the infrastructure 
manager,  the  railway  operators,  and  a  well-
established National Safety Authority. 

Railway  infrastructure  projects  are  often 
delayed  due  to 
lengthy  pre-contractual 
procedures,  including  prolonged  approval  of 
designs,  extended  public  procurement  and 
In  addition, 
land  expropriation  procedures. 
projects  often  face  technical 
implementation 
issues, for example when works are taking place in 
urban  environments  requiring  the  relocation  of 
public  utility  networks  such  as  gas  and  electricity 
lines,  leading  to  changes  in  contracts,  additional 
works and costs. A lack of funding and insufficient 
administrative  capacity  to  manage  large-scale 
infrastructure 
to 
implementation  delays.  Moreover,  for  Greece,  it 
would be of benefit to continue strengthening the 
National  Safety  Authority’s  operating  conditions, 
as  it  still  faces  resource  constraints,  including 
delays  in  planned  recruitment,  which  affect  its 
ability to respond effectively to challenges. 

contribute 

projects 

also 

The  implementing  body  for  railway  projects 
has  modified  its  procurement  strategy  to 
reduce the number of individual procurement 
procedures  on  the  same  railway  line  and 
replaced them by joint tendering procedures. 
This  change  is  aimed  at  speeding  up  project 
implementation and increasing cost efficiency, but 
it is still too early to conclude on its effectiveness. 

The  ERTMS  is  essential  to  digitalising  the 
railways and to modernising and harmonising 
railway  operations  across  Europe.  The  ERTMS 
ensures the safety of rail networks by providing a 
unified signalling system that significantly reduces 
the 
It  also  provides 
interoperability  between  national  rail  systems, 
improving  cross-border  train  movements.  Finally, 

risk  of  accidents. 

(338) TENtec Information System, according to Reg. 2024/1679. 

coordinator Matthias Ruete.  

(339) Based on ERTMS – Third work plan of the European 

125 

 
 
 
 
 
Table A19.1:ERTMS deployment in Greece 

Source: Based on ERTMS – Third work plan of the European Coordinator Matthias Ruete 

As  yet  there  is  no  joint  model  between 
Greece,  Bulgaria  and  Romania  to  operate 
cross-border  trains  in  line  with  the  rules  of 
the single European railway area. Reducing the 
rules  hampering  efficient 
list  of  national 
operations  and  harmonising 
technical  and 
operational rules with the minimisation of national 
rules  in  line  with  the  EU  directives  on  rail 
interoperability  and  safety  remains  critical  to 
ensure seamless cross-border rail transport. A full 
review  and  assessment  of  all  such 
rules 
detrimental  to  the  approval  and  authorisation 
processes  of  rail  infrastructure,  vehicles  and  the 
is  also 
certification  process  of  undertakings 

lacking. 

Road  crashes  impose  an  enormous  social, 
economic  and  health  burden  on  the  EU 
economy.  The  external  socio-economic  costs  of 
fatal,  serious  and  minor  injuries  have  remained 
persistently  high  despite  the  progress  made  in 
reducing  crash  frequency  and  severity.  These 
resources 
innovation, 
education,  healthcare  and  other  crucial  public 
investments (340). 

could  otherwise 

fuel 

Map A19.1:  TEN-T Cross-Border & National Priority Sections in Greece 

(340) Report on the implementation of the EU Road Safety Policy 

framework at the Mid-Point, COM(2026) 77 final.  

126 

 
 
 
 
 
 
 
 
 
 
The  map  below  presents  the  roads  where  the 
safety of the infrastructure is poor and thus where 
urgent action is required. 

Map A19.2:  Greece's road safety map 

In 2024, Greece had the third highest fatality 
rate  in  the  EU,  with  64  road  fatalities  per 
million  inhabitants,  while  the  EU  average 
was  45.  Compared  with  the  EU  average,  Greece 
shows  a  high  proportion  of  powered  two-wheeler 
fatalities  and  fatalities  on  urban  roads.  Also, 
speeding  is  among  the  main  safety  issues  in 
Greece,  which  has  resulted  in  fatalities  in  single-
vehicle crashes at a rate of 41%. Greece has also 
much 
lower  helmet  and  seatbelt  use  rates 
compared to the EU average. Based on 2019 and 
2024  data,  a  decrease  of  3%  in  road  fatalities 
was recorded. 

it 

(KOK)  and  strengthened 

However, 
in  2025  a 
is  noted  that 
significant  decrease  (21%)  in  the  number of 
road fatalities was observed during the first 
10 months, with Greece recording the second 
largest reduction in road fatalities among EU 
Member  States  in  2025.  This  improvement 
could  be  attributable  to  Law  5209/2025  (OJ  A’ 
100)  which  introduced  a  new,  modernised  Road 
Traffic  Code 
the 
enforcement of helmet use and drink driving rules, 
as well as to the contribution of new technologies, 
such  as 
the  use  of  digital  cameras,  and 
improvements  to  the  road  network  (e.g.  Patras–
Pyrgos  motorway,  putting  Greece  on  track  to 
achieve  the  EU  and  national  target  of  a  50% 
fatality 
reduction  by  2030.  Key  gaps  and 
challenges  concern  the  securing  and  exploitation 
the 
of  appropriate 
efficiency  of  the  authorities  in  implementing  the 
various 
road  safety  actions  and 
measures (341).  

road  safety  funds  and 

identified 

Source: TENtec Information System and TEN-T map library – 
European Commission 

Graph A19.1: Greece's Road fatalities per million, 
2024 

Source: Report at the Mid-Point - Greece, SWD(2026) 44 
final. 

(341) More details in Report on the implementation of the EU Road 

Safety Policy framework at the Mid-Point – Greece, 
SWD(2026) 44 final. 

127 

 
 
 
 
 
 
   
128