It’s time to move beyond the narrative of ‘imported inflation’ and face the reality of Greece’s ongoing inflationary pressures. While external factors like energy price shocks from the Ukraine war initially drove inflation in 2022-2023, the situation has changed. As energy prices dropped, inflation followed—except in Greece. Recently, Greek inflation rose to 3.6% in June 2025, while the eurozone average remained at just 2%. This divergence raises serious questions about domestic economic structures.
The government often points to services inflation—covering transport, healthcare, and retail—as a primary cause. However, this issue predates the energy crisis and is linked to longstanding structural inefficiencies, including closed professions and weak SME competitiveness. Despite repeated promises of reforms, tangible progress remains limited.
Meanwhile, European partners are pushing for tighter control over agricultural subsidies, particularly through the OPEKEPE framework. German Chancellor Merz and Austrian Chancellor Schallenberg emphasized the need for a leaner EU budget post-2028, signaling reduced funding availability. This poses challenges for Greece, which relies heavily on these funds.
On the fiscal front, the list of major public debtors remains largely unchanged year after year, with many debts deemed uncollectible. The government must provide a clearer picture of recoverable amounts rather than recycling outdated data.
Greece also looks set to benefit from new EU energy funds totaling €8 billion, though lessons must be learned from the Recovery Fund’s implementation delays. A streamlined Building Code is also expected soon, aiming to simplify construction regulations and improve transparency in urban planning.
In short, Greece needs more than excuses—it requires concrete action to address inflation, modernize its economy, and ensure responsible use of EU funds.