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Greece: Reform of Social Welfare Programmes

image of Greece: Reform of Social Welfare Programmes

This review provides an analytical perspective of the current situation, including the construction of a database, in order to help the Greek government define reforms to improve the effectiveness, efficiency and fairness of selected social programmes. The review identifies gaps and overlaps in social protection, and highlights areas where there is room for significant efficiency gains, in order to support informed and concrete decisions by the Greek government on where budgetary savings can most appropriately be made, taking into account the balance between societal groups and the need to maintain social cohesion.

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Towards more effective benefit system design in Greece

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.

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