Navigating Economic Policy in the EU: The Impact of European Integration on Greece's Economic Strategy

Abstract

The Greek system of political economy balances social welfare with sustainable economic growth, contrasting with the American model, which prioritizes consumer benefits and wealth creation. Greece emphasizes social equity and state intervention, shaped by historical contexts and European Union membership. This paper explores the foundational principles, market structure, government role, regulatory environment, and EU influence on Greece’s economy. The Greek market combines competitive and oligopolistic features, with significant state involvement in key sectors such as banking, energy, and telecommunications. Government intervention, traditionally extensive, was transformed by austerity measures during the financial crisis of the 2010s, imposed by international creditors. These measures highlighted the tension between fiscal discipline and social welfare. Social welfare and labor policies in Greece show a strong commitment to protecting workers' rights and ensuring social equity, despite high unemployment and social challenges during the economic crisis. Regulatory efforts focus on reducing bureaucracy, combating corruption, and improving tax collection, though these face substantial obstacles. The European Union's influence is crucial, requiring Greece to align with broader EU objectives while navigating constraints on national sovereignty. This interplay shapes Greece’s economic strategies, emphasizing harmonization with EU standards and the need for comprehensive reforms. Comparisons with the American model reveal key differences in market orientation, state involvement, and social welfare commitments. The Greek economy faces challenges such as structural inefficiencies, corruption, and the need for diversification. Future directions include structural reforms, strengthening social policies, economic diversification, EU integration, and sustainable growth. In conclusion, the Greek political economy represents a blend of market principles and strong state involvement, emphasizing social welfare. This complex interplay reflects Greece’s efforts to balance economic growth with citizen well-being, guiding its path towards resilience and prosperity.