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Regional Policy for Greece Post-2020

image of Regional Policy for Greece Post-2020

The Territorial Review of Greece offers analysis and policy guidance to strengthen regional development and well-being. It examines Greece’s regional development framework, the EU Cohesion policy and multilevel governance in Greece. Since the global financial crisis, Greece has undertaken an impressive number of structural reforms. Recovery initiated in 2017 but the current COVID-19 pandemic is slowing down Greece’s efforts. The country is now facing a number of strategic development priorities including fostering digitalisation, improving entrepreneurial and business ecosystems, and addressing environmental challenges. These new priorities must also tackle existing social challenges and mitigate rising inequalities. The Review examines a range of policies that have the potential to propel inclusive growth in Greece’s regions and improve the quality of life for their residents. It stresses that policies for economic growth, social capital and environmental sustainability are more effective when they recognise the different economic and social realities where people live and work. OECD work illustrates the importance to align place based regional development strategies with sectoral policies (support for private investment, infrastructure and human capital policies) in each place to generate multiplier effects. To fulfil this task, Greece will need to continue advancing the reform of its institutional and fiscal multi-level governance system.

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Socio-economic trends, growth potential and opportunities

This chapter discusses the socio-economic structure and performance of regions in Greece, with a focus on how the 2008 financial crisis affected economic structures and future regional growth potential. The diagnosis made in this chapter serves as a basis for framing regional policies to set regions on a solid and fast recovery path that can help alleviate the worsening socio-economic conditions brought about by the crisis. The uneven and deep effects of the crisis mean that regional development strategies require not only a substantial increase in economic activity and employment, but also the reallocation of resources to more productive uses. OECD analysis estimates that, between 2009 and 2018, each euro of EU Structural Funds in Greece generated an additional 64 cents of GDP. In this context, the EU funds have been key to supporting public investment and GDP growth in Greece.

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