Search

Begin New Search Political Geography Greece Content Type Working Paper

1. Long-term Effects of the Refugee Crisis on Greek Public Opinion Regarding Immigration

Author:
Nicholas Sambanis and Carlos di Bonifacio
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Analyzing data from the European Social Survey (ESS), we explore macro-level effects of the 2015 refugee crisis on public attitudes toward immigration in Greece. Contrary to the belief that the crisis hardened Greeks’ attitudes toward immigration, we find no evidence of a significant negative effect that persists over time. Indeed, we observe a slight improvement in immigration attitudes since a low point that occurred during Greece’s foreign debt crisis. More broadly, the commonly held belief that European publics are becoming more hostile toward immigrants over time is a misperception of reality. We instead observe a slight improvement in attitudes since the refugee crisis of 2015.
Topic:
Migration, Immigration, Public Opinion, Refugee Crisis, and Debt Crisis
Political Geography:
Europe and Greece

2. Reducing the Motherhood Penalty in Greece: Lessons from Norway

Author:
Manos Matsaganis, Tone Fløtten, Chrysa Papalexatou, Daphne Nicolitsas, and Bjorn Dapi
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This Working paper draws on the emerging literature that has established that the employment rates and the earnings of men and women start to diverge once they have children, with women’s labour market performance deteriorating, while that of men’s left unaffected or even improving. This phenomenon has been dubbed the motherhood penalty (or the child penalty). The size of the penalty is affected by the choices parents make as regards employment and childcare, which in turn are affected by gender norms, instilled in women and men early in life, but also by public policies aiming to establish a better work-life balance and help working mothers and fathers combine bringing up a child with pursuing a career. The paper reviews cultural norms and institutional arrangements as potential determinants of mothers’ employment in two polar cases: Greece (where female employment is low, and child penalties large) compared to Norway (where female employment is high, and child penalties are virtually non-existent). The paper concludes with a list of policy recommendations, inspired by our understanding of the gradual emergence of family-friendly work-life policies in Norway, and informed by our awareness of constraints facing policy makers in Greece.
Topic:
Employment, Economy, Public Policy, Parenting, and Motherhood
Political Geography:
Europe and Greece

3. Shifting Paths? The Evolution of Southern European Growth Trajectories Between the Global Financial Crisis and the Covid Pandemic

Author:
Fabio Bulfone, Mischa Stratenwerth, and Arianna Tassinari
Publication Date:
06-2025
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper traces the growth trajectories of the Southern European economies (Greece, Italy, Portugal, and Spain) from the financial to the covid crisis. From a review of the comparative political economy literature focusing on Southern Europe, we derive three propositions regarding the growth profile, the development of high value-added services and manufacturing exports, and employment outcomes. To assess the accuracy of these propositions, we conduct growth decompositions based on import-adjusted demand components as well as on sectoral output and employment indicators. The data show that Southern European economies are similar in that export-led growth has not been sufficient to boost aggregate growth, stimulate high value-added services or manufacturing, reverse pro-cyclical employment declines, or create high-wage employment opportunities. But the Southern European economies also differ, both in terms of their sectoral growth profiles and their aggregate performance. In the second half of the decade, Portugal and Spain managed to combine domestic demand and exports to achieve stronger growth than Italy and Greece. Sectoral developments in Portugal and Spain (and to a lesser extent in Italy) tentatively suggest a potential “Iberian growth path” that is compatible with euro area constraints but ultimately peripheral. The paper concludes by considering the empirical and theoretical implications of these findings for the study of the Southern European model of capitalism.
Topic:
Political Economy, Economic Growth, Exports, and Austerity
Political Geography:
Europe, Greece, Spain, Italy, Portugal, and Southern Europe

4. Spreading Innovation: A case study on acceleration within the startup ecosystem of Greece, a Diaspora Nation

Author:
Ioanno Sapfo Pepelasis
Publication Date:
11-2025
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Startups do not operate in a void and institutions in their direct environment impact them. This working paper is a first in depth field research of a single accelerator in Greece, a country that is relatively lacking in international rankings for innovation and competitiveness. We chose to focus on MIT Enterprise Forum Greece (MITEF Greece, 2015-2022), the only accelerator in the country to be linked to an international university. We used a mixed qualitative and descriptive statistics methodology. Our main findings are that its accelerated startups and their founders stood out in the startup ecosystem in the following ways: founders were a mosaic of local and Diaspora Greeks as well as non-Greeks, startups had a global reach, with a presence in 20 countries and an impressive share in deep tech processes and sectors, thus enhancing substantially the geoeconomic reach of the Greek startup community. Indicatively among the top sectors medicine- life sciences, environment-energy, and technical solutions-robotics stood out from the beginning although this sectoral composition was not usual among startups in the Greek ecosystem especially before 2019. In a nutshell, MITEF Greece accelerated startuppers stood at the cutting edge of the nexus of innovation and internationalization in the Greek startup ecosystem. How was this made possible? We put forward the hypothesis that this outcome was attained as a result of the following multiple factors: the dedication; high expertise; open mindset; heritage of a culture of trust, reciprocity and strong sense of community (“μαζί”) of the Greek MIT graduates (local, brain drain and Diaspora), who were running MITEF Greece; the careful selection process of startups accepted in acceleration programs; the ample business and technological know-how resources available to MITEF Greece by the vast global MIT entrepreneurship community and its enthusiastic pool of Diaspora Greeks in the USA who were involved in the accelerator and its offspring The Hellenic Innovation Network. Although the case of MITEF Greece cannot be exactly replicated, we believe that it offers useful insights for minimizing the disintegration and lack of communication between support organizations and policies for the startup ecosystem. It is an extraordinary example of actively enhancing internationalization of innovation through commercialization of research results, an important GIFT for Greece at a time of rising deglobalization and global economic fragmentation. This is the ultimate lesson derived from this case study.
Topic:
Diaspora, Innovation, Startup, and Geoeconomics
Political Geography:
Europe and Greece

5. How the Twelve-Days War with Iran Tested the Strategic Alliance between Israel, Greece, and Cyprus

Author:
Spyros Katsoulas
Publication Date:
08-2025
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In our latest issue of Turkeyscope, Spyros Katsoulas explains how the triangular Israeli-Greek-Cyprus relationship survived the test of the 12 day war with Iran this past June, while noting that challenges remain on the horizon stemming from both Turkish and Israeli policy trajectories.
Topic:
International Relations, Diplomacy, Strategic Planning, and Regional Security
Political Geography:
Iran, Middle East, Israel, Greece, Palestine, and Cyprus

6. The Greek Tragedy: Narratives and Imagined Futures in the Greek Sovereign Debt Crisis

Author:
Jens Beckert and Hans Lukas Richard Arndt
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Between 2009 and 2015 Greece underwent a profound sovereign debt crisis that led to a serious political crisis in Europe and the restructuring of Greek debt. We argue that the prevalence of negative narratives about the future contributed to the changes in spreads of Greek bonds during the crisis. We support our argument by presenting results from text mining a corpus of 9,435 articles from the Financial Times and the Wall Street Journal. Based on sentiments and a machine learning model predicting future reference, we identify newspaper articles which generate negative and uncertain outlooks for the future in the expert discourse. We provide evidence from time series regression analysis showing that these negative imagined futures have explanatory power in models estimating spread development of Greek vs. German sovereign bonds. We suggest that these findings provide good evidence for the relevance of “imagined futures” for investors’ behavior, and give directions for an innovative contribution of sociology to understanding the microfoundations of financial crises.
Topic:
Debt, Financial Crisis, Financial Markets, Future, Sovereign Debt, Economic Sociology, Sentiment Analysis, and Valuation
Political Geography:
Europe and Greece

7. Exploring the Potential of Minilateralism for the Europe-Mediterranean Partnership

Author:
Roee Kibrik
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The Mediterranean and Europe, as interconnected regions sharing geographical spaces and proximity, severe challenges, common interests and intertwined goals, present a compelling opportunity to explore minilateralism as a framework for fostering cooperation and developing resilience. This research examines the potential of minilateralism to contribute to the Europe-Mediterranean partnership, highlighting the rationale, objectives, potential areas of focus, and expected outcomes of promoting minilateral frameworks in this context. Two minilateral frameworks will be examined: Israel-Greece-Cyprus and Israel-Morocco-European Union (EU). Based on this examination, the research will discuss particular insights regarding these specific configurations, and general insights regarding characters, opportunities and challenges of minilateralism in the region as a way to foster the Europe-Mediterranean partnership.
Topic:
Regional Cooperation, European Union, Partnerships, Resilience, and Minilateralism
Political Geography:
Europe, Israel, Greece, Morocco, Cyprus, and Mediterranean

8. “Equality on paper”: refugee and migrant integration in Greece

Author:
Maria Eleni Pantazi Psatha
Publication Date:
12-2024
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Greece’s integration efforts have been classified as “equality on paper”, highlighting significant gaps in the process of integration of refugees and migrants. Although the actions of the last five years have been crucial regarding labour market inclusion and access to education, persistent gaps, and fragmented implementation hinder the effectiveness of these initiatives. Focusing on the aforementioned vital pillars of integration- i.e., education and access to labour market- this paper will examine the state of the art, highlighting existing gaps and deficiencies, as well as good practices. Concretely, the objective of this paper is twofold: on the one hand, it assesses the current developments and practices, as well as the remaining obstacles; while on the other hand, it draws policy recommendations that will enable Greece to transform its integration policies from “equality on paper” to a more cohesive and effective approach.
Topic:
Migration, Refugees, Integration, and Equality
Political Geography:
Europe and Greece

9. The Evolution of Public Opinion in Greece and Turkey (2021-2023): Dynamics and Shifts in Comparative Perspective

Author:
Evren Balta and Ioannis N. Grigoriadis
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
ELIAMEP joined forces with IPC with the support of DiaNEOsis to organize the first joint Greek-Turkish public opinion survey series. Five rounds of surveys were conducted concurrently in both countries, exploring cooperation, conflict, nationalism, perceptions, multilateral institutions, and societal linkages. A strong preference was recorded for peaceful means of conflict resolution, with variations in emphasis on bilateral talks and multilateralism. The presence of Turkey in the Greek public sphere is much stronger than the presence of Greece in the Turkish public sphere. Greek views of Turkey are more coherent compared to Turkish views of Greece. Religiosity is a significant indicator of attitudes towards the other side. Both public opinions are sceptic regarding the role of international actors, as there is concern about their bias in favour of the other side. This study is based on the results of the first joint Greek-Turkish public opinion survey series organized by ELIAMEP and IPC and supported by DiaNEOsis. Through its five waves, this survey has identified similarities, differences and dynamics in the views Greeks and Turks have of each other and of Greek-Turkish bilateral disputes; their views about their own country’s position in the world, its relations with the European Union, the United States and Russia; as well as their perceptions of domestic institutions and the future both of their country and of themselves. The study highlights the fact that, despite the escalation in Greek-Turkish relations since 2018, most Greek and Turkish respondents displayed a preference for non-violent means of conflict resolution, even though they disagreed about both the root causes of the bilateral disputes and the appropriate solutions.
Topic:
Bilateral Relations, Public Opinion, Multilateralism, Institutions, and Survey
Political Geography:
Turkey and Greece

10. The Greek Defence Sector: Turning the Page?

Author:
Antonis Kamaras
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
From the 1980s to the 2000s, Greece’s defence industry was mismanaged and failed to utilize Greece’s high defence expenditures to become innovative. The impact of Greece’s fiscal crisis and the subsequent expansion of the Turkish threat mean that both economics and geopolitics now favour an invigorated Greek defence sector. The first major weapons procurement programme since the end of Greece’s fiscal crisis has not meaningfully involved the Greek defence sector. Yet the sector’s future prospects have improved, assured by the need for the sector to be financially viable and internationally competitive and by the broader awareness of the defence sector as a building block in national defence. The EU’s growing role in Europe’s collective defence, driven by continent-wide geopolitical developments and industrial imperatives, will also boost the prospects of the Greek defence sector. Mutually reinforcing obstacles still hamper the Greek defence sector’s progress: (a) a polity which privileges distribution over capital investments in its fiscal choices, and (b) an officer corps which lacks the degree of autonomy to co-create novel defence solutions together with the Greek defence sector. Despite these obstacles, the ongoing Turkish threat engenders national insecurity within Greece to such an extent that it can drive the sustainable growth of the Greek defence sector.
Topic:
Defense Policy, Geopolitics, Innovation, and Defense Industry
Political Geography:
Europe, Turkey, and Greece

11. Domestic implementation of European Court of Human Rights’ judgments related to immigration in Greece

Author:
Dia Anagnostou
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
In recent decades, the European Court of Human Rights has evolved into a leading judicial body which examines and identifies violations committed by states in the management of migration and asylum. Greece is one of the countries that has been condemned in a large number of judgements relating to administrative detention, reception and accommodation conditions, the treatment of migrants by the police and border authorities, the asylum system, the treatment of unaccompanied minors, and human trafficking. This paper examines the Greek authorities’ compliance with the ECtHR judgements in this area. It focuses on general measures which relate to broader changes in the legislation and case law, as well as on administrative practice in Greece. It analyses the obstacles and difficulties present in this area, and it makes policy recommendations. It argues that a new approach is needed to Greece’s compliance with regard to the human rights of migrants and refugees. This approach should be focused on structural reforms and it should have the express commitment of the country’s political leadership. It would require systematic efforts to instil a new mindset within the public administration that is supportive of human rights protection as a priority and democratic responsibility, rather than as an externally imposed, necessary evil.
Topic:
Migration, Refugees, Judiciary, Asylum, and European Court of Human Rights (ECtHR)
Political Geography:
Europe and Greece

12. The Syrian Civil War Twelve Years On: Can There Be a Constructive Role for Greece?

Author:
Ioannis N. Grigoriadis and Loukas I. Papavasileiou
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Continual and ever-growing foreign involvement led to the internationalization of the armed conflict and turned Syria into a battleground for the strategic competition of several powers. The Kremlin has long viewed Hafez and Bashar al-Assad as indispensable partners in the Middle East and has repeatedly offered its diplomatic and military support in an attempt to achieve its own strategic objectives. Given the destabilizing effects the unending Syrian crisis has had on Middle Eastern and Eastern Mediterranean security, Greece maintains a profound interest in the resolution of the conflict. Greece appointed a Special Envoy for Syria in May 2020 with a view to reinvigorating its policy vis-à-vis the Syrian crisis. Greece’s successful re-engagement with key Arab countries and improved relations with other regional actors could pave the way for a more prominent Greek role in Syria. This could entail reinforcing its diplomatic cooperation with the EU Delegation to Syria, leading the EU humanitarian relief effort following the devastating earthquakes that hit Syria on 6 February 2023, and formulating a realistic and forward-looking strategy for the future of the Syrian people, including provisions for the voluntary repatriation of refugees and the protection of minority rights.
Topic:
Foreign Policy, Diplomacy, Refugees, Political stability, Syrian War, and Armed Conflict
Political Geography:
Middle East, Greece, and Syria

13. Drafting Greece’s “Internal Security Strategy” – Challenges and Prospects

Author:
Panayotis Tsakonas and Triandafyllos Karatrantos
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The radical change in the structure of the international system caused a scientific and political revolution in the definition and concept of security. Issues such as the climate crisis, forced displacements and extreme nationalism have led the interest and especially the debate on achieving security from external to internal threats. The focus is now on the main “object of reference” of security which is not the state or some sub-state groups, but “the individual”/”the citizen”. In the modern globalized environment, all the risks that threaten the daily life of citizens require dealing with the concept of security in a “holistic” and, at the same time, more “human-centered” way. Greece lacks an institutional document for the internal security strategy. There are structural reasons that make a comprehensive reform of the internal security sector necessary. In addition to the established weaknesses and inadequacies of specific agencies and/or services of the internal security system, the overall organic interconnection between crisis management services is still required. The first lesson from the effects of the pandemic is the need for the evolution of Greece into a “Modern National Security State”. Greece, due to its geographical position on the external borders of the EU, as well as the crises it has experienced in recent years, faces a series of internal security threats and challenges. Security and respect for fundamental rights are not mutually conflicting but coherent and complementary objectives. The Strategy will help build an internal security governance system and a central coordination process.
Topic:
Security, Governance, and European Union
Political Geography:
Europe and Greece

14. Diplomatic scramble: Greek foreign policy towards Libya

Author:
Constantine Capsaskis
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Libya became a country of immediate interest to Greece following its 2019 Memorandum of Understanding with Turkey. Greece engaged in a flurry of diplomatic activity in the aftermath of the MoU, both within Libya and the wider region, to counter Turkey’s momentum with Tripoli. The complex political situation in Libya and its many facets (proxy conflicts between regional and international players, competition for energy resources, and other factors including religion) compound the difficulties confronting Greek efforts to shield Greece’s interests. European division over Libya has led Greece to seek other bilateral approaches, primarily through cooperation with France and Egypt. Turkey’s attempts to normalize relations with its regional interlocutors (primarily Egypt, Israel and Greece) following the devastating earthquake that struck the country in February 2023 may yet change conditions on the ground in Libya, though it is still too early to tell.
Topic:
Foreign Policy, Diplomacy, and Bilateral Relations
Political Geography:
Turkey, Greece, Libya, and North Africa

15. The Cyclical Behaviour of Government Spending for Social Protection: Is the OECD Methodology Robust?

Author:
Aleksandr Arsenev, Philipp Heimberger, and Torben Schütz
Publication Date:
12-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Spending elasticities measure the reaction of different government spending components to the business cycle. They are important inputs for fiscal forecasts, and they are particularly relevant in the context of European Union (EU) fiscal rules, as elasticity estimates enter the estimation of fiscal space. This paper analyses the sensitivity of the estimation method used by the Organisation for Economic Co-operation and Development (OECD) and the European Commission to obtain government spending elasticities by focusing on 11 EU countries in the 1995-2020 period. Our results suggest that spending elasticities are sensitive to small variations in data and model specification. For most EU countries, we reject the assumption that only unemployment spending responds to cyclical variations. While unemployment spending is indeed a major driver of counter-cyclical social spending, other categories of social spending also show signs of responding to the business cycle.
Topic:
Budget, European Union, Finance, Macroeconomics, Public Debt, Social Spending, Public Spending, and Fiscal Deficit
Political Geography:
Europe, Greece, France, Poland, Germany, Denmark, Romania, Spain, Italy, Sweden, Austria, and Czechia

16. A Road with Many Thorns: Current Challenges to the Turkish-Greek Relations

Author:
George Karatasios
Publication Date:
12-2023
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In our September-October issue of Turkeyscope, now appearing together with our November-December issue due to the outbreak of the Gaza War, George Karatasios analyzes the contours of Turkish-Greek relations, past and present. Given the number of ongoing disputes these two nations have, he suggests focusing on manageable problems as a path for building trust and conflict resolution.
Topic:
Conflict Resolution, Diplomacy, Bilateral Relations, and Trust-building
Political Geography:
Turkey, Middle East, Greece, and Eastern Mediterranean

17. How to make I.T. in Greek Manufacturing: Evidence and Policy Recommendations

Author:
Sofia Anyfantaki
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Greece has so far failed to shift its production structure towards more complex, high value-added activities, incorporating knowledge-intensive practices. Given the country’s low performance in innovation and knowledge diffusion relative to EU peers, we focus on two specific problem areas of Greek industry: skills and management practices. First, we provide an in-depth look at skills indicators to identify the scope for action, particularly in addressing mismatch. Second, we use firm-level data from the World Management Survey to give an overview of management practices in Greek industry and explore the quality of these practices and their association with productivity. We have two novel findings: first, we document that Greece has the highest overskilling for professional occupations in the OECD; second, we show that Greek firms do best in areas requiring unitary decision making, and worst in areas requiring teamwork and synergies. We complement our analysis with data from a new survey and examine structural characteristics of innovation and technology adoption. The collection of our empirical findings provides valuable input into concrete policy proposals to increase productivity in Greek manufacturing.
Topic:
Science and Technology, Manufacturing, Innovation, Industry, and Information Technology
Political Geography:
Europe and Greece

18. Cooperation against the odds: Getting small firms to work together in unfavourable circumstances

Author:
Kira Gartzou-Katsouyanni
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
How can we get small firms to work together in order to achieve mutually beneficial outcomes, despite adverse circumstances? This policy paper provides an answer to this question that could be useful both to policymakers and to local stakeholders seeking to undertake innovative, cooperative economic activities in their area. Based on evidence from eight case studies within the Greek agri-food and tourism sectors, I argue that a small group of local actors, whom I call ‘institutional entrepreneurs’, usually play a key role in catalysing the emergence of cooperation at the local level. Their strategies and experiences carry valuable insights. I also outline the characteristics that macro-level institutional frameworks need to have if they are to facilitate local cooperation. These characteristics can inform the design of institutions at both the domestic and the EU level. The paper’s findings could be relevant to people interested in local development, but also to those concerned with boosting the productivity and export orientation of the Greek economy as a whole. After all, cooperation can improve the performance of small firms, and it is thus an important ingredient for inclusive growth in countries with a lot of small firms, such as Greece.
Topic:
Development, Economy, Business, and Production
Political Geography:
Europe and Greece

19. Adapting to New Realities: Israel’s foreign policy in post-Netanyahu times

Author:
Gabriel Haritos
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Israel had to adapt to the revised objectives of the Biden administration in the Middle East and to update its coordination with Russia on the Syria front. The war in Ukraine has reconfigured Israel’s relations with the US and Russia. Israel’s reluctance to provide arms to Ukraine has allowed Russian-Israeli coordination to continue in Syria. The energy crisis triggered by the Russo-Ukrainian war led the US to revise its stance towards Saudi Arabia. The US-Iran talks ground to a halt in Vienna in the light of the growing ties between Iran and Russia. Israel took advantage of the new state of affairs, encouraging the rapprochement between Washington and Riyadh and countering the possibility of the US reopening its consulate in East Jerusalem. In coordination with the US, Israel has promoted the deepening of the Abraham Accords and drawn India into the new Middle East reality through the new I2U2 mechanism. Thanks to carefully managed communication, the Bennett-Lapid government was able to restore diplomatic relations with Turkey while maintaining close cooperation with Greece and Cyprus. It would seem advisable to put in place additional safeguards to maintain the quality of Athens-Nicosia -Jerusalem relations, similar to those which are expected to accompany the revamped relations between Israel and Turkey.
Topic:
International Relations, Foreign Policy, Diplomacy, and Russia-Ukraine War
Political Geography:
Russia, Turkey, Ukraine, Middle East, Israel, Greece, and United States of America

20. Using RRF resources to kick-start a job-rich recovery in Greece

Author:
Manos Matsaganis and Georgios Manalis
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The Recovery and Resilience Facility (RRF) is a golden opportunity for those member states that were most badly hit first by the debt crisis then by the pandemic. Greece, one of the largest beneficiaries in per capita terms, is due to receive very significant resources that can help arrest the decline of the 2010s. Can these resources be spent wisely and efficiently enough to kickstart the process of inclusive and sustainable growth? This paper briefly reviews the Greek National Recovery and Resilience Plan (Greece 2.0), assessing its potential contribution to upgrading the economy’s growth model, enhancing skills, and boosting employment. In 2007-19, total investment in Greece shrank by a stunning 70% in real terms. Over the same period, public investment fell by 62%, business investment by 44%, and household investment (on housing, mostly) by 89%. Under-investment constrains growth and undermines the future prospects of the Greek economy. The Recovery and Resilience Facility offers Greece a unique opportunity to bridge the investment gap, giving a boost to the sustainable recovery of the Greek economy. Technically, Greece 2.0, the country’s National Recovery and Resilience Plan is competently drafted, as its favourable reception by the European Commission indicates. Still, critical issues abound. In this sense, Greece 2.0 embodies the contradictions of the current juncture. On the one hand, there is a consensus that the Greek economy should rebalance, by pursuing a growth strategy that relies much more on exports than in the recent past, and much less on domestic consumer demand fuelled by debt. On the other hand, the legacy of the past weighs heavily on social and political actors, limiting their room for manoeuvre. The list is daunting. It remains to be seen how the above will play out over the next few years.
Topic:
Debt, Economy, Crisis Management, Resilience, and Economic Recovery
Political Geography:
Europe and Greece