This report was undertaken at the request of the Greek Ministry of Labour, Social Security and Welfare, in order to provide them with advice and recommendations on reforming Greek social programmes. The OECD was asked to provide a well-founded analytical perspective of the current situation, including the development of a database, in order to help the Greek government define reforms to improve the effectiveness, efficiency and fairness of selected social programmes. The aim was to identify gaps and overlaps in social protection, and highlight areas where there was room for significant efficiency gains. This was requested in order to support informed and concrete decisions by the Greek government on where budgetary savings could most appropriately be made, taking into account the balance between societal groups and the need to maintain social cohesion. The analysis builds extensively on the database constructed by the OECD on the basis of administrative data collected from the Greek authorities

Significant developments took place between early 2011, when the work on this report started, and the end of 2012. These developments reflect a determination on the part of the Greek Ministry of Labour, Social Security and Welfare to move forwards speedily with deep reforms.

This report needs to be read in the broader context of continued measures to address Greek fiscal challenges, and their social consequences, which are summarised in the box below.

This chapter presents the economic, social and systemic context for the reform of Greek social insurance and welfare programmes. It starts with a review of the fiscal and economic situation, including fiscal consolidation objectives and the share of social programmes in government expenditure. It then presents data on trends in social expenditure and international comparisons. It goes on to consider trends in the poverty rate. The chapter concludes with a strategic review of the current system and a strategy for social protection, and the weaknesses that need to be addressed.

Preamble: the analysis presented in this chapter does not take account of the most recent reforms. Please see Annex B for an overview of these reforms.

This chapter presents information on four main categories of social benefits: unemployment benefits, benefits for families, disability benefits, and housing benefits. It analyses these benefits in an international comparative context, in terms of the beneficiaries, the relative proportion of assistance and insurance-based expenditure, trends in expenditure, and in relation to key indicators such as the unemployment rate. It uses this analysis to draw conclusions on where and how benefits could be reformed in order to be more efficient and effective in reaching those in real need.

Preamble: this chapter has not been updated to take account of the most recent reforms. Please see Annex B for an overview of these reforms.

This chapter starts with an explanation of the cost-benefit analysis of reform scenarios, based on means testing, which has been carried out by the OECD. The simulations of different reform options consider their expected impact on fiscal consolidation and on the poverty rate. The chapter then proposes further, more detailed criteria, against which reform options should be assessed by Greece: practical feasibility, legal obligations and operational costs and savings. The chapter goes on to consider the issues around the introduction of means testing. Finally, the relationship between social welfare funding and taxation is highlighted.

Preamble: Recent institutional developments have been only briefly referenced in this chapter. See Annex B for an overview of recent developments.

This chapter considers the governance of social welfare in Greece. It starts with an examination of the current central governance structures and ministry responsibilities. It then considers the current structures and governance of social security funds, with reference to information and communication technology (ICT) systems, human resources, control of fraud and the collection of contributions. It also considers the reporting and accounting obligations of social security funds, and the provision of benefits on the ground.