Greece has undergone a pronounced and protracted economic recession since 2008. Fiscal consolidation, a growing public debt burden, negative inflation and uncertainty additionally weighed on investment and economic performance. Labour productivity is low in terms of OECD standards. Poverty and inequality have risen during the recession and persistent youth unemployment has repeatedly exceeded 50% in the last years, while private consumption declined by almost 30% between 2008 and 2014. In response, the Greek government has embarked on deep fiscal adjustments and wide-ranging structural reforms. A Memorandum of Understanding on financial assistance was signed with the European Stability Mechanism (ESM) in 2015. The ESM granted disbursements of up to USD 113 billion PPP (EUR 86 billion) until 2018 to boost confidence and rebound investment. Growth is expected to turn positive in the second half of 2016. A national strategy for the period 2014-20 addresses the weaknesses in the innovation system and aim at regaining competitiveness and sustainable growth: The National Research and Innovation Strategy for Smart Specialisation 2014-20.