Greece acquires the Midas touch
Its faltering economy almost sank Europe a decade ago. Now, by combating corruption and fake statistics through Herculean reforms, it is paying off debts and enjoying a world-class stock market.
A welder works at a shipyard near Piraeus, Greece, July 25.
REUTERS
Just a decade after teetering on the edge of a national bankruptcy that shook Europe鈥檚 economy, Greece is restoring its financial and political bona fides. Its own citizens, fellow members of the European Union, and global observers are taking note of the country鈥檚 economic and governance makeover.
The Greek stock market is 2025鈥檚 best performer worldwide, well above other European bourses and the S&P 500. The country is in a position to pay off massive bailout loans a full 10 years before their due date. Last year, the Greek economy grew twice as fast as that of Germany, a major creditor. And in 2023, Greece regained investment grade status, a year after adopting a National Anti-Corruption Action Plan.
To curb a culture of tax evasion and bribery, for example, many government services are now digitized. Prime Minister Kyriakos Mitsotakis hopes such steps will restore trust in institutions and improve investment.
鈥淐rucially,鈥� analyst Seema Shah wrote in London鈥檚 Sunday Times, Greece has demonstrated it can 鈥渓ive within its means in terms of public spending鈥� 鈥� while cracking down on its 鈥渟hadow economy.鈥�
In a land where democratic ideals bloomed centuries ago, the principles of financial discipline and transparent government are deepening their roots. The alignment between more growth and honest governance is not coincidental. Even if uneven, Greeks are discovering that both trends can reinforce each other.
Last year, Greece scored near or above average on several anti-corruption measures set by the Organisation for Economic Co-operation and Development. However, the country鈥檚 progress is not always smooth. In June, the European Union cited Greece on a fraud scheme in farm subsidies that began in 2017. Senior officials have resigned. Mr. Mitsotakis has acknowledged 鈥渢he state鈥檚 inadequacy,鈥� declaring that political graft 鈥渃annot govern the way we conduct business.鈥�
Political meddling, in fact, led to Greece鈥檚 2010 economic tailspin, as the then-government manipulated key financial statistics to hide negative trends. Coming clean about the numbers helped Greece make its case for financial support from the EU and the International Monetary Fund 鈥� and forced the former Socialist government to rein in profligate spending.
Accurate data is essential not only for government and international lenders. Businesses and individuals, too, rely on reliable statistics to make investments or plan for retirement.
鈥淭rust in official statistics is essential for many aspects of economic and social life, including the functioning of democracy itself,鈥� wrote Andreas Georgiou, who ran the national statistical office from 2010 to 2015, in The New York Times. 鈥淪tatistics enable democratic accountability.鈥�