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1. Connecting Opportunities: Greece’s Strategic Role in the India-Middle East-Europe Economic Corridor (IMEC)

Author:
Dimitris Gavalas and George Dikaios
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy brief discusses the role of Greece in the India-Middle East-Europe Economic Corridor (IMEC), focusing mainly on those aspects related to infrastructure and ports and the global supply chain. It suggests a series of different actions and highlights different angles that Greece should take into account if it wants to be a major player in the establishment of the Corridor and its gateway to Europe/European Union. – IMEC will be a game changer in international trade relationships, regional tensions, and political challenges. – The main obstacles to IMEC’s establishment are the conflicts in the Middle East and other major national interests of key actors (such as the Chinese monopoly in the region). – Focus is given to port infrastructure, as ports are pivotal to the global supply chain. India pays significant attention to its ports, while the Port of Piraeus is the largest port in Eastern Europe. – The critical role and position of Greece are highlighted, underlying its role as a hub that connects India and the Middle East to Europe. – Greece needs to invest in infrastructure development, build a skilled workforce, and attract foreign investments. – Suggestions for establishing a successful commercial corridor between India and Greece are given, focusing on mutual interests and growth opportunities.
Topic:
Security, Foreign Policy, Trade, and Supply Chains
Political Geography:
Europe, Middle East, India, and Greece

2. 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

3. 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

4. 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

5. 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

6. A Strategy for Greece’s Defence Technological Industrial Base

Author:
Antonis Kamaras
Publication Date:
05-2025
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Greece is entering a new phase in European unification. In addition to monetary union, we now have a defence union. The Greek Defence Technological Industrial Base (GDTIB) is in a position to rise to this challenge. With the help of realistic public policies, it could be included in the top three DTIBs among the eleven frontline EU states, alongside those of Finland and Poland. The successful integration of the GDTIB into the pan-European DTIB will strengthen the Greek Armed Forces, make the defence sector one of Greece’s economy most capital- and knowledge-intensive ones , and enhance Greece’s strategic alliances. Specifically, the more that the GDIB exports to the pan-European DTIB as it grows by leaps and bounds, the more it will advance the productive and innovation capacities which Greece’s military deterrence needs in an era which has witnessed the return of ‘Big War’.
Topic:
Foreign Policy, Defense Policy, Science and Technology, Armed Forces, European Union, Deterrence, and Industry
Political Geography:
Europe and Greece

7. The NSRF and the Recovery Fund in Greece, 2021-2027: the institutional dimension

Author:
George Andreou
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
During the current decade, Greece’s development policies are guided and supported by both the Cohesion Policy through the 2021-2027 Partnership Pact for Regional Development (NSRF) and the Recovery and Resilience Facility (RRF) through the National Recovery and Resilience Plan “Greece 2.0”. The parallel action of these two programming and funding instruments represents an unprecedented development opportunity for Greece and its Regions, but raises important issues of strategy, coordination and management. This paper focuses on the institutional architecture and the governance and implementation mechanisms of the NSRF and the RRF and attempts to explore the implications of these institutional arrangements for public policy in Greece.
Topic:
Development, Governance, and Public Policy
Political Geography:
Europe and Greece

8. Accessing Foreign Policy Information in the Digital Age: Evidence from Greece

Author:
Péter Kacziba
Publication Date:
07-2025
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
The digitalization of governance and media has increased the visibility and accessibility of foreign policy, reshaping how citizens engage with international affairs. However, limited research exists on how digital platforms influence the way foreign policy information is accessed and evaluated in specific national contexts. This study addresses this gap by examining the case of Greece. Drawing on a nationwide online survey conducted in February 2024 (N = 800), this analysis investigates citizens’ source preferences, perceptions of credibility, and engagement patterns across socio-demographic groups. The findings reveal that digital platforms have emerged as the dominant sources of foreign policy information. Nevertheless, traditional dynamics of political polarization, selective trust, and fragmented media consumption remain prevalent. These results underscore the constraints of digitalization in expanding democratic participation and highlight the need for foreign policy research and practice to pay greater attention to public opinion and societal dynamics.
Topic:
Foreign Policy, Public Opinion, Democracy, Media, Polarization, and Digitalization
Political Geography:
Europe and Greece

9. 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

10. Temporary Guests or City Residents? Governing Migrant Inclusion in Athens amid Political Dependence and Structural Barriers

Author:
Sofia Ntaliou
Publication Date:
11-2025
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy brief examines Athens’ approach to migrant inclusion within Greece’s highly centralised governance system. It finds that the municipality lacks clear mandates and stable funding for migrant integration. The local authority tends to treat migrants as temporary guests rather than long-term residents. Migrant policies remain fragmented, reactive, and short-term, largely shaped by shifting political leadership. Civil society and migrant communities play an important yet mostly symbolic role, with limited participation in decision-making. Sustainable inclusion requires institutionalised responsibilities, multi-annual funding, and stronger participatory mechanisms to ensure policy continuity and protect progress from political change.
Topic:
Civil Society, Migration, Integration, and Inclusion
Political Geography:
Europe and Greece

11. 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

12. 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

13. From Arming to Fighting? The Steps to War, Mutual Military Buildups and Dispute Onset in the Greece-Ottoman Empire/Turkey Rivalries

Author:
Ioannis Nioutsikos, Konstantinos Travlos, and Magdalini Daskalopoulou
Publication Date:
12-2024
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
Recent developments in the operationalization of mutual military buildups raise some questions about the findings of the quantitative literature on the association of mutual military buildups (MMB) and militarized dispute (MID) onset in the Greece-Ottoman Empire and Greece-Turkey dyads. We use the novel data to evaluate that relationship, working within the Steps to War explanatory framework. The Greece-Ottoman Empire and Greece-Turkey cases are puzzles for the framework, since on the one they have had a frequent presence of the Steps to War but have far fewer wars than we would expect. Our analysis indicates that despite that puzzling incongruity the Greece - Ottoman Empire and Greece-Turkey cases are good fits for the Steps to War, except when it comes to the role of mutual military buildups. We find indicators that while the other factors of Steps to War have a positive combined association with MID onset, the inclusion of mutual military buildups renders such an association statistically insignificant. On the other hand, we do find indicators that mutual military buildups may contribute to the transition from Lesser to Severe Rivalry, as per the Steps to Rivalry. Finally, the dyads reach infection periods that make war more likely as per the Steps to War. But many expected wars do not take place. We posit two possible explanations for future research: deterrence, or major power managerial coordination.
Topic:
International Relations, History, Political Science, Ottoman Empire, and Rivalry
Political Geography:
Turkey and Greece

14. Looking for seasonal workers: Greece’s search for migrant labor

Author:
Angeliki Dimitriadi
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The present report deals only with the recruitment/invitation of third-country nationals through bilateral agreements as a framework for addressing labor shortages. In other words, we focus only on the invitation of foreign workers, with an emphasis on skilled and low-skilled labor, rather than Blue Card holders. The report forms part of a larger project looking into legal labor migration. The first publication presented a snapshot of practices across select member states, while this paper zooms in on Greece to explore the practical issues that have arisen in the context of the attempt to recruit foreign workers. The emphasis on partnerships also reflects the Greek government’s current policy priority in addressing labor shortages, with more agreements expected in the next few months. Thus, it is a good time to pause and take in where things stand as regards implementation and future planning, and what issues require further attention. Through a discussion and analysis of current practices and issues, the report seeks to highlight two things: a pattern of responding to labor shortages by the Greek state, which tends to replicate previous practices without ‘daring’ to be more creative. the bureaucratic obstacles (which relate in particular to the process of inviting foreign workers works—metaklisi) that continue to hamper the implementation of these partnerships. Finally, the report incorporates a series of recommendations based also on consultation with different stakeholders[1] as well as with individuals who have been involved in the metaklisi process.
Topic:
Migration, Labor Issues, Partnerships, and Migrant Workers
Political Geography:
Europe and Greece

15. Egyptian-Turkish Relations on a Roller Coaster: Implications for the Eastern Mediterranean

Author:
Ioannis N. Grigoriadis and Electra Nisidou
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy paper delves into the volatile relationship between Egypt and Turkey, examining its profound implications for the Eastern Mediterranean. Since 2020, Egyptian-Turkish relations have moved cautiously towards rapprochement following a period of intense tension. Central to this relationship is the Libyan conflict, in which both states hold substantial stakes. This study explores the current political forces driving this tentative reconciliation, as well as the ramifications of these developments for the Eastern Mediterranean. The Libyan civil war emerged as a proxy conflict between Egypt and Turkey; however, both states have since aligned their positions on the Gaza crisis, reflecting a major shift in their diplomatic approach. The significance of Libya’s oil reserves for both states cannot be overstated, as they have prompted a renewed sense of cooperation after a decade of rivalry. Despite their significant ideological differences, Egypt and Turkey have ultimately recognized the necessity of strengthening their ties across nearly all areas, including trade and military cooperation. After a decade of intense conflict shaped by competing interests and military interventions in Libya, Egypt and Turkey are now contemplating a rapprochement with a view to addressing common security and economic interests. If it signals Turkey’s wish to engage with all the countries in the region based on international norms, a rapprochement between Egypt and Turkey could prove to be a critical factor for the achievement of stability in the Eastern Mediterranean. An opportunity is emerging for Greece to promote regional cooperation in the Eastern Mediterranean
Topic:
Oil, Regional Cooperation, Bilateral Relations, Military Intervention, and Proxy War
Political Geography:
Turkey, Middle East, Greece, Egypt, and Eastern Mediterranean

16. “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

17. Leveraging EU industrial policy to reshape Greece’s productive model

Author:
Aggelos Tsakanikas and Petros Dimas
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy brief explores the evolution and goals of industrial policy in the EU, aiming to identify the ways in which these recent developments can provide significant opportunities for Greece. In this context, we outline some of the key features of the fragmented landscape of Greek industrial strategies and suggest future directions through which the country can leverage the current momentum of industrial policy in the EU to pursue the restructuring of its productive base along the lines of sustainability, the twin (green and digital) transition, and European strategic autonomy. Since the Great Recession of 2008, the EU has openly supported coordinated and complementary policies in an effort to tackle structural deficiencies that render its productive systems vulnerable. The pandemic crisis, the Ukrainian war, and the general call for action against climate change have highlighted the need for the further reconfiguration of industrial development across the world along the lines of inclusion, sustainability, and resilience. The EU New Industrial Strategy and its update in the aftermath of the pandemic provide blends of horizontal and vertical actions that target resilience in the Single Market, EU strategic autonomy, and the acceleration of the green and digital (twin) transitions. In response to the energy crisis, the EU Green Deal Industrial Plan for the Net-Zero Age has been promoted to ensure that sustainable competitiveness goals are on track with the recent geopolitical developments. Greece has already aligned its strategic planning to the EU’s industrial policy objectives through a dedicated National Industrial Strategy and other strategic documents that target innovation, the green transition and sustainable development, and digitalization across key industrial ecosystems and value chains. Key initiatives, such as industrial alliances and Important Projects of Common European Interest (IPCEIs), major reforms through dedicated Acts, and an unprecedented wealth of financing and regulatory instruments outline significant opportunities of transformative potential Greece’s productive model. The country must meet the challenges of implementing its ambitious action plans, while simultaneously monitoring, evaluating, and updating its strategic orientation against the backdrop of a volatile global market environment. Different strategies should be integrated into a unified system of policies that creates a clear connection between, and path dependence for, different objectives, diverse market reforms and policy interventions.
Topic:
Industrial Policy, European Union, Sustainability, Strategic Autonomy, Green Transition, and Digital Transition
Political Geography:
Europe and Greece

18. The Greek Economy a Decade Later – Constantinos Michalopoulos

Author:
Constantine Michalopoulos
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The Greek economy has made a remarkable comeback from a decade ago, to the point that the Economist rated it to have performed the best in the OECD in 2023. This paper reviews Greek economic performance over the last ten years and identifies a number of major challenges that remain, despite the progress made. The last part presents an action plan for the next decade in four priority areas: the labor market, social services, migration and savings-investment. In these areas, reforms are urgently needed, if Greece is to achieve sustainable and equitable growth. The analysis concludes that, because of the continued debt burden, successful reforms will require the Greek government to maintain a delicate and difficult balance between fiscal sustainability and taking the necessary measures to support green and inclusive growth.
Topic:
Reform, Economy, Fiscal Policy, Labor Market, and Economic Crisis
Political Geography:
Europe and Greece

19. The CAP between a rock and a hard place: its new challenges and uncertain prospects

Author:
Tassos Haniotis
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The Common Agricultural Policy (CAP) is currently at a crossroads of a changing world environment which impacts demand (food inflation), supply (energy and input costs) and agri-food trade (geostrategic tensions). EU policies have to address the conundrum of having to simultaneously contribute to mitigating climate change and contributing to food security by accepting that both are global problems and require global solutions. CAP ongoing policy orientation aims at increasing its environmental performance while retaining its economic and social achievements, but excessive targets set by the Farm to Fork Strategy and the impact of changing market conditions brought tensions in the debate between on food security and climate action with respect to priorities on primary agriculture. Higher food costs increasing income inequalities put households in the developed world at a risk of changes in consumer behaviour that are driven by forces exogenous to their tastes and preferences. Addressing misperceptions about the role of productivity, science and trade will impact on how the EU assesses, in a more balanced way and addresses its strengths and weaknesses in the field of agriculture. Despite clear progress of Greek agriculture in recent years three persistent weaknesses of Greek agriculture relate to an uneven and untargeted distribution of direct payments the underestimation of the role of extensive livestock or the absence of a functioning Farm Advisory System.
Topic:
Agriculture, European Union, Food Security, Economy, and Trade
Political Geography:
Europe and Greece

20. The Letta and Draghi Reports: The Only Way to Go, Despite the Hurdles

Author:
Alekos Kritikos
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The Letta and Draghi reports begin with the same realisation, though they formulate it differently: that the international geopolitical environment has changed dramatically and that the EU must take immediate action as a result. The Letta report’s take-home message is that the Single Market must be transformed into something “much more than just a market”. Thus, research, innovation and education need to be integrated into its core, as a “fifth freedom”, and the Single Market extended to include the telecommunications, energy, financial services and defence sectors. There is fear at the heart of the Draghi report, fear of the “existential challenge” confronting the EU, which will require an extra €800 billion a year in investment. The report’s proposals are articulated around five major horizontal policies: closing the innovation gap, decarbonising the economy and making it more competitive, strengthening security and the defence sector and reducing dependencies in this area, financing investment, and strengthening EU governance. The Letta and Draghi reports agree on both the fields where intervention is required and the form such intervention should take. And while they differ in terms of the competition—and, still more, cohesion—policy they prescribe, they do so constructively while their proposals complement one another. In relation to Greece, the proposals made in both reports with respect to the defence industry, to reducing energy costs, and to the provision of generous funding for additional investment through —inter alia—joint borrowing, are of the utmost importance. No serious disagreement has been voiced with respect to the proposals made in the Letta and Draghi reports, apart from the predictable German reaction to additional funding and new joint borrowing, coupled with unfounded criticism of the proposals as ‘unfeasible’. The “New European Agreement on Competitiveness” adopted in Budapest on 8 November is a critical development, given that it adopts the bulk of the key approaches contained in the Letta and Draghi reports, and sets specific milestones for some, as well. The two reports stress that, even if certain recent developments around the world cannot be considered favourable for the EU (political crisis in Germany, economic problems in France, Trump’s election in the US), Europe still has the “weapons” it needs to reverse the situation. And while the Budapest summit decision may not have gone as far as the situation demands, it still adopted the bulk of the proposals made in the two reports, making it crystal clear that the European Union has taken the need to regain the initiative fully on board.
Topic:
Markets, European Union, Economy, Regional Integration, and Regional Economy
Political Geography:
Europe and Greece