GREECE: An Introduction
Background
Greece has continued improving its economic outlook, with its economy marking one of the fastest growth rates in the Eurozone. The economic forecasts remain positive, reflecting a steady expansion in economic activity, decline of unemployment (now below 10%), decrease of government deficit and solid GDP growth. A broadly similar growth is expected for 2025 and 2026, supported by the implementation of the Recovery and Resilience Plan. However, significant macro-financial challenges are still looming, with unexpected effects on Greece’s growth trends: the ongoing conflicts in Ukraine and the Middle East, rising real estate prices and climate change, (to mention only a few). It also remains unclear whether Greece will be affected by a potential shift in US economic and foreign policy following the recent presidential elections.
Complex red tape, a slow public administration as well as delays (at times extreme) in the administration of justice are still some of the main issues forming the Achilles heel of Greece’s potential to attract investor interest. Significant reforms are underway to address these issues, and time will confirm whether they will pay off.
Key Trends and Challenges
The hospitality sector is continuing to grow, with Greece achieving top rankings in several categories of the latest Condé Nast Traveler annual survey. Despite the positive outlook for the sector, significant challenges remain, including:
- finding qualified staff;
- a time-consuming and complex licensing system for new investments; and
- the straining of basic infrastructure at several tourist destinations.
Energy transition remains a central theme of investor interest. The revised National Energy and Climate Plan sets ambitious goals, targeting 82% of electricity from renewable sources by 2030, along with substantial increases in solar (13.5 GW) and wind (8.9 GW) capacity and a 58.6% reduction in CO2 emissions.
The rising cost of energy resulting from the geopolitical crisis caused by the Ukraine war severely increased inflationary pressures and led to the imposition of pricing restrictions to curb unfair profiteering on the categories of goods essential for consumers’ food and subsistence. At the same time, inspections by the competent authorities (including the Hellenic Competition Commission) aimed at detecting unlawful pricing practices have been intensified, resulting in the imposition of fines much higher than before.
Demand for legal services has grown because of the aforementioned landscape, and the Greek legal market is enjoying a sure and steady expansion. Big law firms dominate the market, offering turnkey solutions and helping investors with a comprehensive and holistic approach in all legal aspects.
Key Legal Developments in 2024
Greece continues to make significant strides in the energy sector through a series of legal initiatives. Law 5106/2024 introduces measures to mitigate electricity curtailment by renewable energy sources (RES) due to grid capacity limitations, while fostering the deployment of battery storage, self-generation systems and cutting-edge technologies such as offshore wind and floating photovoltaic stations. In parallel, Law 5095/2024 ensures priority grid connections for RES projects that support industrial and agricultural sectors through power purchase agreements (PPAs). Additionally, a new net billing framework allows individuals and businesses to consume renewable energy while being compensated for any excess power returned to the grid. Finally, Law 5151/2024 introduces reforms to modernise Greece’s waste management practices, aligning them with the country’s broader sustainability objectives.
Following the enactment of Law 5016/2023 on International Commercial Arbitration, the Greek arbitration landscape in 2024 was influenced by substantial developments on an international level. Firstly, the International Bar Association recently updated its Guidelines on Conflicts of Interest in International Arbitration to align with modern practices and case law concerning the standards of impartiality and independence with respect to arbitrators. Secondly, regarding investment arbitration, the EU has formally notified the depositary of the Energy Charter Treaty (ECT) of its intention to withdraw from the treaty, with the withdrawal set to take effect on 28 June 2025.
Of great practical interest for M&A and financial transactions is the enactment of Law 5123/2024 providing for the modernisation of pledge law, and aimed at aligning with evolving financial and technological needs, according to European and international best practices. In this regard, the establishment of the Unified Electronic Register of Pledges on movables, claims and other rights constitutes a pivotal milestone in safeguarding public trust and transaction security, by ensuring public disclosure and transparency.
Several legislative developments of note also occurred in the field of tax law. Law 5104/2024 introduced enactment of the Tax Procedure Code and addressed ambiguities and lack of coherence in the previous legislation. It also digitalised the tax process and streamlined simplified procedures, effectively reducing bureaucracy. Law 5135/2024 introduced the imposition of a Digital Transaction Fee on specific categories of transactions.
Law 5140/2024 introduced the reform of public investment law by providing for strategic planning of projects with a long-term perspective, along with enhanced oversight of public works. The act aims to facilitate the effective financing of development policy through the Development Programme of Public Investments, and to ensure the functioning of agencies and entities responsible for their implementation.
On a similar note, Law 5131/2024 provides for the restructuring of the Hellenic Corporation of Assets and Participations (Growthfund), which will absorb the Hellenic Financial Stability Fund and the Hellenic Republic Asset Development Fund. This is a major overhaul with a view towards facilitating the management and development of the assets controlled by the Hellenic Republic, as well as modernising the governance structures of the relevant public entities.
In September 2024, a New Code of Conduct was adopted providing guidelines on how to properly communicate any price reduction announcement, in particular during sales, offers, promotions or other related practices. New measures on online sales were also introduced, whereby platforms will be obliged to clearly indicate whether a product is available through a promotion or discount.
Directive 2022/2555 (NIS2) was transposed into national law on 26 November 2024 by virtue of Law 5160/2024, towards achieving a high level of cybersecurity. The law aims to create a secure and competitive digital environment, which upgrades the country’s overall resilience against cyberthreats. The implementation of NIS2 is expected to increase the demand for cybersecurity services, products and specialists.
Effective from 1 January 2024, the platform Real Property Digital File (Ilektronikos Fakelos Akinitou), provided under Law 5076/2023, became operational, with the purpose of digitalising the collection process for supporting documentation and the preparation for the execution of relevant notarial deeds of transfer.
Furthermore, several pivotal labour law changes took place concerning improvement of work-life balance, enhancement of transparency and alignment with broader EU standards. Law 5053/2023 marked the end of a three-year wage freeze for private-sector employees, which was in effect since austerity measures in 2012. Starting in January 2024, such wage freeze was lifted, while the new law introduced a phased salary increase system with a view towards gradually creating an environment of economic stability in Greece.
In the context of general economic recovery in Greece, the statutory minimum salary and daily wage were further increased as of April 2024; the new gross monthly minimum wage is currently EUR830 for employees, and the minimum daily wage for blue-collar workers now amounts to EUR37.07.
Ministerial Decision No 44485/2024 further expanded the application of the digital work card to enterprises in the accommodation and food and beverage sectors (tourism), providing a grace period for implementation until 1 March 2025.
EU Directive 2022/2041 – introducing major reforms aimed at improving working conditions, fair wages across the EU and promotion of collective bargaining – is expected to be transposed into Greek law by the end of 2024.