Greek private sector potential remains untapped
DIW Weekly Report 29 / 2018, S. 641-651
The analysis of newly available data shows that the value-added of Greek private enterprises has fallen by 38 per cent in nominal terms over the last ten years. Micro-enterprises have been particularly hard hit. Despite all efforts to stabilise the macroeconomic environment, only a slight and still weak recovery has recently set in.
No dynamic economic growth is expected in the near future, either. In the eight-year reform process, the framework conditions for investment and entrepreneurial activity have only improved in isolated areas. Only the labour markets have been heavily deregulated.
Suppose fundamental reforms of the administration, a judicial reform to speed up court proceedings, an improved tax system and the intensification of knowledge transfer in the national innovation system are still not tackled. In that case, Greece will not achieve stronger economic growth in the coming years either.
However, when the third assistance programme for Greece ends in August, external reform pressures will also diminish. It remains to be seen to what extent the current or future government will take responsibility for the outstanding reform process.PDF Download of this publication