Earlier this month something happened that was previously unthinkable to those following Greece’s long-running economic crisis: Finance Minister Kyriakos Pierrakakis was unanimously elected president of the Eurogroup. About a decade ago, at the height of Greece’s fight to remain in the euro zone after defaulting on billions in debt and enduring two painful austerity programs, the country’s finance minister was shunned by his Eurogroup colleagues. The election of Pierrakakis seems to symbolize Greece’s change of course since those dark days. The symbolism is undeniable, but the reality is more complex. On the same day that Pierrakakis and Prime Minister Kyriakos Mitsotakis were praised abroad for Greece’s recovery, events at home told a different story. In Athens, an agricultural unionist linked to the ruling New Democracy party refused to answer questions from MPs during a parliamentary inquiry into alleged large-scale fraud linked to EU agricultural subsidies. The European Public Prosecutor’s Office is investigating and has requested the lifting of the immunity of two ministers. Meanwhile, farmers across the country, outraged by corruption and worried about rising costs and the impact of the climate crisis due to forest fires and floods, blocked motorways, ports and even an airport in Crete. They argue that they have been neglected in favor of those who have connections with the Government or with booming sectors such as tourism. This contrast reflects the lights and shadows of post-crisis Greece: a polished exterior masking pernicious flaws. Since 2017, apart from the year of the pandemic, the economy has grown steadily, recovering from the 25% GDP collapse caused by the crisis. But growth has been uneven. The real estate sector, boosted by the Golden Visa program, has led investment, while knowledge- and technology-intensive sectors have lagged behind. Labor productivity remains below the EU average. Export performance has improved, but imports have also increased, leaving Greece with a significant current account deficit reminiscent of the pre-crisis years. Unemployment has fallen from 24% to less than 9%, but Greece still has one of the lowest employment rates in the euro area, reflecting mismatches in skills, mobility and wages. Low wages and rising costs, especially in a housing market inflated by foreign buyers, mean many Greeks outside booming sectors such as tourism, real estate and information technology feel left out of the recovery. The daily stress of the crisis may have eased, but financial insecurity persists. Eurostat data confirms this: Greece is one of only two EU countries in which real household disposable income per capita has not grown in 20 years. Between 2004 and 2024, Greek household income fell by 5%. Furthermore, good growth data has not translated into good governance. Indeed, perhaps the most alarming development in post-crisis Greece has been the way in which the quality of democracy has been compromised. Civil society and international organizations have repeatedly raised concerns about the rule of law in justice, media freedom and accountability. The Government has been accused of blocking thorough investigations into key cases including Greece’s deadliest rail disaster, the Predator spyware scandal and agricultural subsidy fraud. In this context, trust in institutions such as the Judiciary, political parties and Parliament has collapsed. Is Greece better off than during the depression and turmoil of the crisis? In many ways, yes. Have you overcome the chronic problems that led to bankruptcy without creating new weaknesses? Absolutely not. That, in short, is Greece today. Nick Malkoutzis is editor of Macropolis.
