Members of the Greek Panel of Economists express reservations about the ability of the Greek economy to maintain satisfactory growth rates after the gradual cessation of financing through the Recovery Fund, according to the results of the Panel Question for October.
A total of 18 Greek economists responded to the Panel question for October: 23% believe that the conditions exist for maintaining satisfactory growth rates after the completion of the Recovery Fund resources, 44% disagree, while 33% are in a neutral position.
In their explanatory comments, the Panel members point out that despite the Fund’s significant footprint, the country’s production model remains fundamentally dependent on tourism. At the same time, high energy and telecommunications costs, bureaucracy, delays in the administration of justice and the level of contributions constitute significant obstacles to investment.
Given these circumstances, the implementation of deeper structural reforms is deemed necessary to maintain a stable and sustainable growth path after the Fund’s resources expire.
According to estimates by the Bank of Greece and the European Commission, the activation of the Fund’s resources has added approximately 1 to 1.5 percentage points to GDP annually in the period 2022–2024. However, as the utilization of the resources is gradually completed by 2026, the question arises as to whether the Greek economy can maintain its growth momentum without this extraordinary support.
The Recovery and Resilience Fund is one of the most important development injections for the Greek economy in recent decades. Within the framework of the National Plan “Greece 2.0”, approximately 36 billion euros are planned to be channeled until 2026, of which almost half as grants and the rest as loans on favorable terms. These resources contribute to areas such as the energy upgrade of buildings and infrastructure, the promotion of RES, the digital transformation of the public and business sectors, but also to investments accompanied by critical reforms in the state and justice.
The Greek Panel of Economists is an initiative of the Center for Liberal Studies (KEFIM) that aims to record and highlight the views of leading Greek economists on critical economic policy issues. The Panel is comprised of 75 economists from 59 universities and institutions based in 11 countries. You can see the full list of participants, their answers to the monthly questions and their explanatory comments, as well as answers to frequently asked questions about the Panel on the KEFIM website, kefim.org
