The European Commission’s 7 Risks for the Greek Economy

The picture the European Commission paints of the Greek economy remains fragile and laden with deep-rooted weaknesses, despite improvements in some indicators, as outlined in its report within the framework of the European Semester. The country’s productive model continues to rely on low-value-added activities, while structural imbalances in the external balance, productivity, and investment keep acting as weights that limit Greece’s convergence with the rest of Europe. At the same time, weaknesses in the justice system and public administration continue to weigh on competitiveness.

Trade Balance and the Productive Model

3The current account deficit remains one of the most significant structural weaknesses. Although the deficit narrowed to 5.7% of GDP in 2025, the Commission considers it still elevated, reflecting the economy’s low non-price competitiveness and its persistent dependence on imports.

The Commission notes that the Greek economy continues to rely on low-value-added sectors such as tourism and agriculture, as well as small and medium-sized enterprises with limited international reach and an inability to achieve economies of scale.