IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Greece: Back on track?

Listed author(s):
  • Schrader, Klaus
  • Benček, David
  • Laaser, Claus-Friedrich
Registered author(s):

    At the turn of the year 2012/2013 the Eurogroup and the European Commission heralded the message that the worst crisis in Greece would be over. According to this message, the Greek government had delivered the promised steps of structural and fiscal reforms and had agreed with a tough timetable for further reforms. The slowdown of negative growth, the falling current account deficit, the reduction of the primary deficit and the various reform laws adopted by the Greek parliament were highlighted as evidence for a positive development in Greece (EU-Commission 2013a: 56). However, an in-depth analysis of Greece's economic development and potentials does not corroborate the image of a country that rises like a phoenix from the ashes (Figure 1). The economic downswing has continued in 2013 whereby it only slightly decelerated - real GDP will contract for the fifth consecutive year, probably by more than 4 %. Even the forecast of a slight growth by 0.6 % in 2014 rests on very optimistic assumptions on the reduction of unit labor costs, the successful liberalization of markets, the stabilization of the commercial banking system and the creation of a business environment convenient for attracting foreign direct investment. Looking at Greece's labor market the impression prevails that not even a faint light can be seen at the end of the tunnel: Mass unemployment will remain at a rate of 25 %, and youth unemployment at the 60 % threshold further exacerbates the labor market crisis. Rising unemployment results from lay-offs in the private sector while the public service and stateowned enterprises have mostly been spared from employment reductions so far. At least the cuts of public service salaries indicate empty treasuries and the austerity policy forced by the international financiers.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Kiel Institute for the World Economy (IfW) in its series Kiel Policy Brief with number 68.

    in new window

    Date of creation: 2013
    Handle: RePEc:zbw:ifwkpb:68
    Contact details of provider: Postal:
    Kiellinie 66, D-24105 Kiel

    Phone: +49 431 8814-1
    Fax: +49 431 8814528
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Laaser, Claus-Friedrich, 1997. "Ordnungspolitik und Strukturwandel im Integrationsprozeß: das Beispiel Griechenlands, Portugals und Spaniens," Open Access Publications from Kiel Institute for the World Economy 978, Kiel Institute for the World Economy (IfW).
    2. David Bencek & Henning Klodt, 2011. "Fünf Prozent sind (zu) viel," Wirtschaftsdienst, Springer;German National Library of Economics, vol. 91(9), pages 595-600, September.
    3. Schrader, Klaus & Bencek, David & Laaser, Claus-Friedrich, 2013. "IfW-Krisencheck: Alles wieder gut in Griechenland?," Kiel Discussion Papers 522/523, Kiel Institute for the World Economy (IfW).
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkpb:68. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.