Policy Article

Hard to rescue: Greece in crisis mode (original publication in German)

Kiel Policy Briefs, 103

For eight years, Greece has remained in crisis mode but the rescue from economic decline is still not within sight. In this paper the Greek prospects to overcome the crisis by the end of the third economic assistance program are highlighted. It is outlined how in other EU crisis countries the programs have more or less achieved their goals while in Greece the missing ownership by the Greek decision makers and the Greek society has become a serious obstacle to the reform process. As a consequence, growth expectations have not been met and the sluggish recovery and the backward oriented structural change do not promise a return to the high income level of the past. It is concluded that the third assistance program is still a great opportunity for Greece to overcome the crisis but the program will not work without the development of ownership.