This latest report from UK think tank the Centre for European Reform looks at the opportunity to address economic difficulties with the European recovery fund.
The European recovery fund provides Greece with an important opportunity to address some of the country’s economic difficulties, offering grants of about 12 per cent of the country’s annual GDP to be spent over the coming years. The national recovery and resilience plan, which Greece has submitted to the EU, is encouraging. If Greece’s government implements the plan effectively, the country may be about to turn a corner. But it has a steep hill to climb, argue Yiannis Mouzakis and Christian Odendahl. Greece has largely been out of the European spotlight since its economic and financial assistance programme ended in 2018, marking the end of eight years of economic crisis. However, the country still faces three major economic challenges over the coming decade: the legacy of its long economic depression, the impact of the COVID-19 pandemic, and how to overcome the structural weaknesses of its economic model. The authors take a close look at the weaknesses of the Greek economy, such as its export performance (which is poor for a country with Greece’s level of income), low levels of foreign direct investment, and the lack of funding for firms and entrepreneurs. They also consider what Europe should do – over and above the recovery fund – to help Greece make a full recovery.Read Full Report