The European Commission’s spring forecasts definitively debunk the government’s claims of a “strong Greece, ” as the slowdown in growth to 1.8% in 2026 and a disheartening 1.6% in 2027 casts doubt on claims of a resilient economy, PASOK notes in a statement.
This sharp slowdown is not merely a temporary dip, but the direct result of the government’s failure to create structural safeguards for the market and society. The country remains completely exposed to the new energy shock and inflationary pressures projected to reach 3.7% in 2026, proving that the previous cyclical growth described by the government is based exclusively on cyclical factors.
This slowdown in growth brings to the surface the severe structural pathologies of a deeply distorted and anachronistic production model, which New Democracy chose to maintain and expand.
Greece continues to underproduce, with the result that every euro of investment or consumption translates into a surge in imports that overwhelms the trade balance. Instead of a modern model based on manufacturing, agricultural development, innovation, and high-value-added exports, the government has trapped the country in a low-growth model focused on real estate and tourism.
The culmination of this failure is reflected in the investment illusion of the Recovery Fund, whose billions failed to trickle down into the real economy and small and medium-sized enterprises. As the Recovery Fund nears completion, the country’s investment deficit is fully exposed, since the resources of previous years failed to create any lasting and self-sustaining foundation for the future.
For PASOK – Movement for Change, overcoming this impasse is a matter of national survival and requires an immediate alternative, progressive governance plan that will shield the economy, strengthen the domestic productive base, and ensure that the fruits of growth are distributed fairly throughout society, with better wages for Greek workers, the statement concludes.