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Greece: EU Problem Child in 2015, Growth Model in 2025?

Greece’s recovery, supported by tourism, reforms and EU investment, offers lessons on rebuilding economic strength and trust in the state after crisis.
© Photo by dole777/Unsplash/ (Flag of Greece.)

Tourism remains a major growth driver. Greece’s economy grew by 2.1% in 2025, while unemployment has fallen from over 25% during the crisis to below 8%

The recovery spans successive governments. Alexis Tsipras accepted a third bailout in 2015, committing Greece to further fiscal and administrative reforms. His new party, ELAS, polls currently in second place

Under Prime Minister Kyriakos Mitsotakis, first elected in 2019 and re-elected in 2023, digital services and stronger tax enforcement have improved administration and public finances. Finance Minister Kyriakos Pierrakakis argues that visible improvements rebuild trust and counter populism

For Europe, Greece illustrates how reforms and EU investment can support recovery. Yet high debt, tourism’s vulnerability to external shocks and austerity’s social costs complicate its role as a model

Sources: ZEIT⁠, European Commission⁠, European Stability Mechanism⁠

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