Greece and the EU: Present and Future

The Greek economy achieved another year of modest growth in 2019. But the onset of the COVID-19 pandemic depressed incomes and changed global economic relations, in ways that could not have anticipated at the time. It also resulted in changes in the Eurozone rules that strengthened its capacity to assist countries in distress. This chapter reviews developments in Greece and its relations with the Eurozone starting with the ascent of the Mitsotakis government in June 2019 to the present. It then looks ahead and outlines the main challenges facing the Greek economy and, how its membership in the Eurozone, can help address them. It concludes that improvements have been made both in Greek economic policy and in the operation of the Eurozone. Political stability in Greece combined with adherence to a strict fiscal policy resulted in overcoming both the debt crisis and the pandemic. These actions helped restore access to the European capital markets, and modest growth in incomes, which however, have not returned to pre-crisis levels. The European Monetary Union has been strengthened and become more flexible thus making it more resilient and capable of supporting unforeseen disasters. Greece, a small country in a geographically critical area with a European past, must cement its links and commitment to a future within the European Union—especially as the Union itself is being strengthened in order to help its members meet the challenges of a sustainable and equitable future. This will require continued Greek dependence on the Union in ways and forms that need to evolve, as the Union itself is evolving.