Greece has a rare window of opportunity to lay the foundations of long-term prosperity, the European Stability Mechanism notes in its annual report for 2025, underlining that bridging the significant productivity gap with the eurozone remains a key priority.
The strong rise in investment through the Recovery Fund is expected to direct resources to productive sectors of the economy, creating new and better-paid jobs, the ESM reports. At the same time, it emphasizes that fiscal prudence is still a key pillar of the government’s economic policy.
As for the war in the Middle East, the ESM warns that it is clouding the otherwise favorable macroeconomic outlook for the Greek economy.
Greece’s dependence on energy imports, as well as tourism, makes the country vulnerable to geopolitical developments.
However, it estimates that the country will fully meet its obligations to the ESM and the European Financial Stability Fund (EFSF) in 2026, with the cash reserve remaining at comfortable levels.
