Greece’s Remarkable Recovery

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Greece has transitioned from being "Europe’s economic Achilles’ heel" to "an unlikely success story" with growth rates outpacing the European Union average.
Public debt has decreased almost 55 percentage points of GDP, described as "one of the steepest declines Europe has ever seen."
Unemployment has declined "to levels unseen in over a decade."
Investment has rebounded significantly and exports are described as historically high.
Fiscal policy is characterized as consistent, delivering increasing primary surpluses.

Primary surplus reached 4.8 percent of GDP in 2024.
Overall budget surplus was 1.3 percent in 2024.
Tackling tax evasion is estimated to have increased revenues by "almost 3 percent" in the previous year.
Government projects maintaining primary surpluses "close to 2.5 percent of GDP" over the next few years.
Debt-to-GDP ratio is projected to decline by an additional "20 percentage points by 2028."
Strategy includes potential strategic use of substantial cash buffers for early debt repayments.

Nonperforming loans were curbed and balance sheets cleaned up, enabling banks to "fully regain their essential role in financing the real economy."
Deposits have increased steadily and strong profitability has strengthened capital adequacy ratios.
The Hellenic Financial Stability Fund sold its holdings in local banks, attracting long-term foreign investors.
Policy commitments include strengthening competition in the banking system and expanding financing options beyond traditional bank lending (venture capital, private equity, capital market development).

Taxes and social security contributions were reduced.
Licensing procedures were simplified; labor legislation was modernized.
Research and innovation incentives include amortizations of up to "315 percent for R&D expenses."
Privatizations have proceeded "at record pace," generating public revenue and investment opportunities.
A new insolvency framework is classified by the OECD as meeting "best international practice," contributing to a decline in private debt in absolute terms and relative to GDP.
Reforms enacted across digitalization, justice, education, upskilling and reskilling, the pension system, and transparency standards.
Restructuring of the GrowthFund aims at more efficient public asset management.
Plans to remove remaining market entry barriers, particularly in the services sector, to foster competition and business dynamism.

Debt-to-GDP ratio "remains high," though described as having a favorable structure and interest rate provisions.
Inflation is "declining" but "remains sticky, particularly in the services sector."
Investment is improving but "still lags the EU average," requiring further capital mobilization.
Productivity is rising but "remains below the EU average."
Labor market participation "particularly among women" remains low relative to peers.
Need to strengthen resilience to external challenges including the green and digital transitions and global economic fragmentation.

Maintain fiscal prudence and primary surpluses close to "2.5 percent of GDP."
Strengthen tax compliance; use higher public revenues to implement growth-friendly tax reductions for labor and businesses to boost disposable incomes and competitiveness.
Continue transformational reforms: simplify business regulation, improve state administrative capacity, and remove market entry barriers in services.
Enhance legal certainty for investors by speeding up the delivery of justice through comprehensive legal reforms and expanded use of advanced technologies.
Fully implement the National Cadastre and complete local and regional urban plans to delineate land uses transparently.
Expand financing alternatives beyond banks: strengthen capital markets, foster venture capital and private equity activity.
Optimize use of EU funds to unlock investment.
Invest in renewable energy and electricity grids to reduce energy costs.
Prioritize upskilling initiatives to equip the workforce for evolving economic demands.

The author expects growth to "continue outperforming the European average for the foreseeable future."
Greece benefits from access to the European single market, "low economic and institutional uncertainty," strong political stability, and clear geopolitical orientation.
The combination of these attributes and an ambitious reform agenda is presented as making Greece increasingly attractive for investment and supportive of higher living standards and welfare.

Konstantinos Hatzidakis, June 2025 — "Greece’s Remarkable Recovery."

Remarkable Recovery
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