Is Reform Possible for Greece?

In her article in To Vima last Sunday, Dimitra Kroustalli raised two key questions about recent reforms made in Greece: whether they have been implemented, and whether they have achieved their aim, explaining that citizens want to see “the money the state rightly collects from them” put to meaningful use.

The recent debate on violence in Greek universities helps us see that the measure of a reform’s success is neither the good intentions that justify it, nor the predictions that accompany it. What matters is the result. Meaning the measurable, empirically verified positive change it brings to our lives. In recent years, Greece has seen no fewer than five reforms of this type. Their success is confirmed by the way they have changed our daily lives. On the other hand, there have been another five reforms that proved problematic. In answer to the question of whether Greece can be reformed, it is useful to take a look back at all ten.

Five problematic reforms

Inadequate preparation, unnecessary disruption, electoral attrition, societal resistance and operational obstacles surround the reform effort with problems and bend it out of shape.

(a) Inadequate preparation: The provision permitting the establishment of private universities in Greece exemplifies has inadequate preparation can hamper reform efforts. It was announced right after the 2023 elections, in July, but the law was not passed until much later, in March 2024. This delay was due to the ministry not being ready to overcome a primary obstacle: the fact that the Constitution explicitly forbids the establishment of private universities. Its inability to find a solution led to delays. In the meantime, the mobilizations of those opposed to the plan changed the climate: public opinion, initially positive, became more skeptical.

(b) Unnecessary disruption: A good example is the tax office’s decision to impose virtually unchallengeable presumed incomes on almost every category of self-employed professional. Invoking a moral argument, the same presumed income was allotted to every self-employed individual, even though there is no way in which to calculate the size of the black economy in each individual sector. The move caused enormous social upheaval and damaged the ruling party. And this at a time when tax revenues were growing rapidly in any case, as tax evasion was drastically reduced by the digitalization of transactions and digital cross-checks in audits.

(c) Electoral attrition: The legalization of same-sex marriage had a greater impact on the European elections than the government had bargained for. Meaning that, from a purely utilitarian viewpoint, the controversial nature of the reform detracted from the administration’s overall enthusiasm for reform. It made them question whether it is really worthwhile pressing ahead with reforms which, though just, nevertheless reduced electoral support for their party.

(d) Impossible to put into practice: The case of the university police, which is back in the news, is relevant here. As a reform, it enjoyed public support and was duly enacted and implemented. But it proved impossible to put into practice, because the political will to push back against the resistance it provoked simply wasn’t there. In Greece, for historical and political reasons, state violence cannot be employed against violence within universities when there is a risk of the former proving lethal. Of course, this was true from the start, so when the moment of truth arrived, it was only natural that the whole construct would collapse.

(e) Reforms that remained incomplete: The best example here are the changes made in the realm of spatial planning. The Greek economy needs nothing more urgently than it needs a comprehensive, functional land-use plan to facilitate investment. But while enormous effort has been expended in this field, it has yet to bear fruit. Why? Different people have different explanations, but one thing is clear: reform in this area has failed. The Land Registry was a similar case, and yet it would seem that these reforms are heading for completion. What should that be? Does a similar change need to be made here?

And five successful reforms

Should we be disheartened by the systemic problems outlined above? No, because other reforms have succeeded, leveling the scales.

(a) The digitization of the state was attempted using tools like the gov.gr platform, into which 1,500 public services were integrated. From digital signatures, the issuing of certificates and paperless prescriptions, to the “112” emergency civil protection line, and from the automated payment of benefits during the pandemic to the ERGANI digital platform for workers’ protection and the MyAIGov chatbot, the state is now largely digitized.

(b) The “digital tax office,” a long-term project that has now been completed. POS are now in use everywhere, and most transactions of interest to the tax authorities are carried out electronically. Platforms such as myAADE and Taxisnet are tools taxpayers now use on a near daily basis, and the public is now familiar with them.

(c) The energy transition took the form of removing lignite from Greece’s energy mix, a process which is now almost complete. The target models which use algorithms to predict the load on the grid permit energy generated by renewable energy sources to be stored. The Hellenic Energy Exchange is also now up and running, using algorithms to determine energy prices. The use of big data and artificial intelligence has now been integrated into the national energy and climate plan.

(d) The digitization of pension awards was carried out with the help of the ATLAS software package, which also allows for the issuance of “trust pensions” which can then be monitored within a set repayment period. The myTEKA digital tool is already up and running for supplementary funded insurance.

(e) As for the Land Registry, finally, after many years of mirroring state inefficiency, the general ktimatologio.gr platform was launched, while 700 million pages of contracts have now been digitized and AI systems introduced to permit them to be checked faster.

The available data reveals the impacts of the changes: 96% of public transactions with the state are now conducted digitally from the home. Tax evasion has fallen from an estimated 30% a decade ago to well below 20% now. Pollutants have been halved and more than 50% of Greek energy is now generated using renewable energy sources. The number of pending pension applications has plummeted from 300,000 in 2021 to 30,000 today, with processing now taking just 90 days on average. Finally, visits to land registry offices have been reduced by 80,000, the time required to consult a contract has been cut to 10 minutes from two hours, and lawyers can now check title deeds from their offices.

What conclusions can we draw from the above?

Can our country really implement reform? We have to accept that there are also reforms that have been successful. The five we discuss above are representative. Of course, all of them had a digital background, which may well have made them easier to implement. Still, their scope wasn’t limited to simply replacing traditional processes with digital ones. As we have seen, they have had a tangible and measurable effect and have certainly impacted positively on citizens’ daily lives.

So a degree of optimism is justified: Greece really can implement reforms. As long as we learn from experience. So that any changes made are carefully planned in advance, executed with technical competence, and pursued with acumen until any obstacles encountered are overcome.

Mr. Ioannis Sarmas is a former caretaker Prime Minister and Honorary President of the Court of Auditors.