Title: SOEs in Greece: structural reforms, economic crisis and financial constraints
Authors: Christos Triantopoulos; Christos Staikouras
Centre of Planning and Economic Research (KEPE), 11 Amerikis Street, GR-10672, Athens, Greece
Department of Accounting and Finance, School of Business, Athens University of Economics and Business, 76 Patission Street, GR-10434, Athens, Greece
Abstract: The global financial crisis starting in 2007/2008 revealed the structural and diachronic deficiencies of the Greek economy that were depicted in the twin-deficits' problem. The inefficiency of the operation of state-owned enterprises (SOEs), due to policy reluctance for structural reforms, fuelled the deterioration of public finances. SOEs, since the state could not adequately finance their operation, entered into a phase of gradual economic rationalisation and harmonisation with the European environment, based, mainly, on the implementation of a privatisation program, which was accompanied by some changes in the institutional framework. The strict fiscal environment, during the recent adjustment period, affected the policy orientation and led to structural changes, focusing on financial constraints, semi-automatic correct procedures and control. Nevertheless, the current situation underlines the need for further and more radical institutional changes in order to improve the SOEs' functioning, as well as their contribution to sustainable public finances.
Keywords: Greek economy; crisis; state-owned enterprises; SOEs; privatisations; financial constraints; Greece.
Int. J. of Public Policy, 2017 Vol.13, No.6, pp.358 - 382
Date of acceptance: 01 May 2017
Available online: 30 Oct 2017