A shiny exterior, a fragile core | Business | EUROtoday

Earlier this month one thing occurred that was beforehand unthinkable to these following Greece’s long-running financial disaster: Finance Minister Kyriakos Pierrakakis was unanimously elected president of the Eurogroup. About a decade in the past, on the peak of Greece’s combat to stay within the euro zone after defaulting on billions in debt and enduring two painful austerity applications, the nation’s finance minister was shunned by his Eurogroup colleagues. The election of Pierrakakis appears to represent Greece’s change after all since these darkish days. The symbolism is plain, however the actuality is extra advanced.

On the identical day that Pierrakakis and Prime Minister Kyriakos Mitsotakis have been praised overseas for Greece’s restoration, occasions at dwelling informed a distinct story. In Athens, an agricultural unionist linked to the ruling New Democracy celebration refused to reply questions from MPs throughout a parliamentary inquiry into alleged large-scale fraud linked to EU agricultural subsidies. The European Public Prosecutor’s Office is investigating and has requested the lifting of the immunity of two ministers.

Meanwhile, farmers throughout the nation, outraged by corruption and fearful about rising prices and the impression of the local weather disaster as a result of forest fires and floods, blocked highways, ports and even an airport in Crete. They argue that they’ve been uncared for in favor of those that have connections with the Government or with booming sectors akin to tourism. This distinction displays the lights and shadows of post-crisis Greece: a sophisticated exterior masking pernicious flaws. Since 2017, aside from the 12 months of the pandemic, the economic system has grown steadily, recovering from the 25% GDP collapse brought on by the disaster. But progress has been uneven.

The actual property sector, boosted by the Golden Visa program, has led funding, whereas knowledge- and technology-intensive sectors have lagged behind. Labor productiveness stays under the EU common. Export efficiency has improved, however imports have additionally elevated, leaving Greece with a big present account deficit harking back to the pre-crisis years.

Unemployment has fallen from 24% to lower than 9%, however Greece nonetheless has one of many lowest employment charges within the euro space, reflecting mismatches in expertise, mobility and wages. Low wages and rising prices, particularly in a housing market inflated by overseas consumers, imply many Greeks outdoors booming sectors akin to tourism, actual property and data expertise really feel neglected of the restoration. The day by day stress of the disaster could have eased, however monetary insecurity persists. Eurostat knowledge confirms this: Greece is one in all solely two EU nations wherein actual family disposable earnings per capita has not grown in 20 years. Between 2004 and 2024, Greek family earnings fell by 5%. Furthermore, good progress knowledge has not translated into good governance. Indeed, maybe essentially the most alarming improvement in post-crisis Greece has been the way in which wherein the standard of democracy has been compromised. Civil society and worldwide organizations have repeatedly raised issues in regards to the rule of legislation in justice, media freedom and accountability. The authorities has been accused of blocking thorough investigations into key circumstances, together with Greece’s deadliest rail catastrophe, the software program Predator spy and agricultural subsidy fraud. In this context, belief in establishments such because the Judiciary, political events and Parliament has collapsed.

Is Greece higher off than through the despair and turmoil of the disaster? In some ways, sure. Have you overcome the power issues that led to chapter with out creating new weaknesses? Absolutely not. That, in brief, is right now’s Greece.