SME Resilience Under Pressure
Geopolitical tensions in the Middle East have left their mark on Greece’s small and medium-sized enterprises (SMEs), though core indicators remain stable. According to the National Bank of Greece’s latest Business Climate Survey, the SME Confidence Index dipped to 4 points in the first half of 2026 — down from 17 in the previous period, a level comparable to that seen during the 2022 energy crisis. The main driver? Soaring energy costs. Disruptions in the Strait of Hormuz pushed oil and natural gas prices up by 55% and 46%, respectively, between April and May compared to February. Sixty-one percent of SMEs reported high exposure to rising energy and raw material costs. In response, 54% absorbed the cost increase without major operational adjustments, while roughly a quarter passed part of it on to consumers — a significantly higher share than the 15% observed during the 2025 tariff disruption. This suggests narrowing pricing flexibility. The National Bank estimates the index would have rebounded toward 20 points by end-June, as oil prices gradually eased back to the $70–$80 range — a scenario now being tested again amid renewed volatility.
Widow Pensions: End to Years of Uncertainty
A new regulation on widow pensions resolves a long-standing administrative limbo affecting thousands of beneficiaries. It abolishes the automatic cut from 70% to 35% of the deceased spouse’s pension after three years — maintaining the 70% rate indefinitely. Crucially, those who had not yet faced the reduction will not be asked to repay any amounts retroactively. Those already affected will see their pensions restored to the 70% level. The reform also preserves the right to receive two national pensions simultaneously where entitlements arise from separate legal grounds. While socially significant, the measure underscores a broader reality: injustices in Greece’s social security system tend to be corrected only after prolonged hardship for many.
Water Management: A New Push Amid 735 Fragmented Authorities
A fresh round of investments in water infrastructure — six projects totaling around €14 million across five municipalities in the Peloponnese — has reignited debate over how Greece manages one of its most vital resources. The Ministry of Environment and Energy (YPEM) is linking these funds to ongoing public consultation on the National Water Strategy and an upcoming bill aimed at consolidating the country’s fragmented water governance landscape: currently, 735 separate local authorities manage water supply, irrigation, wastewater, and drainage. The challenge is structural — aging networks, drought, and overlapping responsibilities cannot be addressed piecemeal, especially by municipalities often lacking technical capacity or financial resources. Though water remains a public good, the reform signals a shift from crisis-driven responses to systemic, long-term planning.
Will DEH Reinstate Net Billing?
The question looms as Greece’s renewable energy sector continues its rapid expansion — wind power capacity has just surpassed 6 gigawatts. Meanwhile, private equity firms are stepping up investments in Greek energy assets, raising questions about market concentration and consumer protections. A decision on whether the Public Power Corporation (DEH) will reinstate net billing — a mechanism allowing households and businesses with solar panels to offset electricity consumption against generation — remains pending. Its potential return could reshape incentives for distributed generation and accelerate the energy transition — if accompanied by robust regulatory safeguards.