EU Auditors: Greece Falling Short on Labour Reforms Under Recovery Plan

10:56 27/3/2025 - Πηγή: Dikaiologitika

Greece is failing to make meaningful use of the European Union’s Recovery and Resilience Facility (RRF) to implement substantial labour market reforms, according to a report released by the European Court of Auditors (ECA).

The report, which reviews how member states are deploying this unprecedented €650 billion funding instrument, criticizes Greece

for falling short of the transformative ambitions the plan was designed to support.

The Recovery and Resilience Facility, launched in the wake of the COVID-19 pandemic, marked the first time the EU linked funding so explicitly to structural reform commitments. Each member state was required to submit a comprehensive national recovery plan, aligned with country-specific recommendations issued as part of the European Semester process. These recommendations often emphasized reforms in employment, education, and labour policy. However, the ECA’s findings suggest that many of these reforms—including those in Greece—have amounted to little more than box-ticking exercises.

While legislation has been passed under the RRF framework, the auditors found that in Greece, as in several other countries, there is little evidence that these legal changes have had a measurable impact on the labour market. Crucial areas such as support for unemployed workers, lifelong learning, and the effectiveness of social benefits remain underdeveloped. Notably, Greece has struggled to demonstrate how its reforms have improved labour market outcomes or addressed longstanding structural issues.

Despite its ambitious rhetoric and access to considerable EU funding, Greece has not followed through with reforms deep or effective enough to generate lasting change. The report notes that while the country included a wide range of labour-related initiatives in its national plan, many of the most persistent challenges—such as informal work, ineffective active labour market policies, and weaknesses in the employment framework—have been only partially addressed or overlooked entirely.

The auditors also point to a broader problem across the EU: the absence of clear, measurable indicators to evaluate the real-world impact of reforms. In Greece’s case, this lack of accountability makes it difficult to assess whether the interventions are having any substantive effect. The report warns that unless this changes, the country risks missing a rare opportunity for structural transformation, despite operating in one of the most favourable financial and institutional environments in its recent history.

Adding to the concern, Greece has not made significant progress in aligning its labour market reforms with the EU’s push for green transition-related skills development—a common recommendation made to all member states in 2023. While other countries such as Spain and Belgium were highlighted by the European Commission as examples of successful implementation, Greece was notably absent from that list.

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