The Greek economy has covered significant ground in recent years. Growth remained above the Eurozone average, investments increased, the fiscal picture improved, and the country regained investment grade.
The real discussion now concerns the next day: how this improvement will gain greater depth, strengthen the productive base, and translate into higher incomes, better jobs, and stronger businesses.
Having worked for more than 25 years in the real economy, in investments, and in business administration, I have seen the difference between a plan attractive in theory and a plan that is implemented. The distance is judged by the speed of decisions, the clarity of the rules, and the quality of administration.
The investment gap remains
The ratio of investments to GDP increased from 11.3% in 2018 to 16.9% in 2025 (European Commission). The progress is substantial, but the investment gap remains, while productivity continues to be noticeably lower than the European average.
However, the country needs not only more capital, but also its better utilization, something that leads us to the issue of the quality of investments.
Quality, not only quantity
The quality of investments, moreover, is of decisive importance. An investment creates greater value when it increases productive capacity, transfers know-how, strengthens exports, and creates stable, well-paid jobs, while the simple increase in real estate values or the transfer of existing assets may improve indicators, without however changing the real capabilities of the economy.
In this direction, the country needs a more balanced strategy in sectors such as energy, infrastructure, manufacturing, agrifood, logistics, technology, tourism, health, and education, which can be linked with one another so that the development of one sector creates demand, know-how, and income in the others as well.
The role of the state: speed and clarity
The business undertakes the risk, while the state shapes the environment within which investment decisions are made. Thus, stable rules, legal certainty, effective Justice, and administration with specific timetables are needed.
The investor must know from the outset where they can invest, what conditions they must fulfill, how long the licensing will take, and which service has the final responsibility, since the multi-year circulation of a file between ministries and municipalities increases cost and uncertainty, to the detriment of both the investment and the State.
A real one-stop shop could change this picture, through a digital file, one responsible authority, binding timetables, and monitoring of each case. Acceleration, however, does not presuppose a relaxation of environmental or urban planning rules, but better organization and faster implementation of them.
The state also needs to systematically evaluate the incentives it provides, since the total amount of a program is not enough. We must know how many investments were completed, how much private capital was mobilized, how many jobs were created, and how much financing ultimately reached the regions and small and medium-sized enterprises.
After the Recovery Fund
The Recovery Fund offered Greece a unique opportunity to finance projects and reforms, and as we approach the end of this cycle, the question is what will remain after the disbursements. Success, ultimately, will be judged by the permanent productive capacities that were created, and not only by the absorption rate of the available resources.
SMEs need something more than subsidies
Of particular importance, at the same time, is the access of small and medium-sized enterprises to financing, as very small enterprises represent almost 47% of business employment in Greece (OECD).
Many of them remain excluded from modern financing tools, have limited administrative support, and struggle to invest in technology and extroversion.
The answer, however, cannot be limited to horizontal subsidies. Guarantee instruments are needed, development loans with clear criteria, incentives for partnerships and mergers, support for digital and energy upgrading, as well as a substantial connection of businesses with universities and applied research, with the aim of greater productivity, scale, and competitiveness.
Skills and wages
In the same equation is the human capital, as businesses seek workers with skills they often cannot find, while many workers feel that their pay and prospects for advancement remain limited. This gap is reduced with better vocational education, certification of skills, and closer cooperation between educational institutions and productive sectors.
The steady increase in wages is ultimately linked to more technology, better organization, larger businesses, and higher-value products and services. It is now clear that income convergence with Europe passes through productive convergence, and this is what we must work on in the coming years.
The regional dimension
Finally, there is also the regional dimension, as economic activity and the better jobs are concentrated to a large extent in Attica and in a few other areas. The regions need modern transport, energy networks, digital infrastructure, and organized business activity spaces, with access to education and financing, through planning based on the real advantages of each place.
What is at stake
Greece has, overall, capital, people with high potential, geographic position, strong sectors, and access to the European market. What will determine the course of the next decade is our ability to connect these advantages within a stable and implementable plan.
Investments, the state, and the real economy thus constitute parts of the same development equation. With clear rules, effective administration, evaluation of policies, and priority on productivity, growth can gain greater duration and reach more businesses, workers, and regions of the country.
* Entrepreneur/Head of Tourism Sector EL.A.S.