Greece Unveils Seven-Point Plan to Shield Economy from Global Trade War Fallout
In response to escalating global trade tensions triggered by U.S. tariffs under former President Donald Trump, Greece has announced a strategic seven-point plan aimed at insulating its economy from international volatility. Deputy Prime Minister Kostis Hatzidakis, addressing the Hellenic-Italian Chamber of Commerce in Athens, outlined the conservative government's blueprint for reinforcing Greece’s economic resilience amid what he described as “a major global economic and trade war.”
Although Greek exports to the United States account for just 5% of total exports, Hatzidakis stressed that Greece cannot remain unaffected by broader repercussions within the European and global economy.
“It would be a mistake to consider that Greece is not affected,” he warned, highlighting the indirect consequences of shifting trade flows, inflationary pressures, and tightening capital markets worldwide.
Hatzidakis emphasized that the European Union as a whole, and Greece in particular, must take decisive steps to enhance competitiveness, strategic autonomy, and economic resilience. The government's response centers on seven key interventions:
1. Attracting Additional Investments
The government plans to accelerate efforts to bring in foreign and domestic investment, positioning Greece as a stable and business-friendly environment amid international uncertainty.
2. Supporting the Real Economy
The current legislation under parliamentary review is set to bolster the Greek Capital Market and improve access to financing for businesses, especially small and medium-sized enterprises (SMEs). The plan will mobilize resources from the National Strategic Reference Framework (NSRF), the EU’s Recovery and Resilience Facility, and the Hellenic Development Bank.
3. Boosting Export Activity
Recognizing the need for greater market diversification, the government aims to expand Greek export reach—especially to India and China. Simplified and digitized customs processes, along with targeted incentives, will support this pivot toward emerging markets.
4. Infrastructure Upgrades
Critical infrastructure projects are moving ahead, including:
Expansion of the Thessaloniki Metro
Construction of the new international airport in Kasteli, Crete
Development of regional ports
Extension of the national fiber optic network
These projects follow significant energy sector reforms that have turned Greece into a net energy exporter as of 2024.
5. Expanding the Productive Base
The government intends to widen the productive capabilities of the Greek economy, with emphasis on manufacturing, technology, and sustainable agriculture.
6. Human Capital Development
A stronger focus on employment and education policies has already contributed to a reduction in unemployment to 8.6%. Further investments in skills training and workforce development are planned to maintain this trajectory.
7. Responsible Fiscal Policy
Continued fiscal discipline, paired with targeted tax reforms, is expected to sustain economic growth while preserving public sector stability.
While the plan reflects ongoing priorities from Prime Minister Kyriakos Mitsotakis’ administration since 2019, its repackaging as a response to the global trade climate signals a renewed urgency. Critics, however, have questioned the lack of concrete cost estimates and measurable timelines, while others note the ambitious nature of penetrating complex markets like India and China.
Still, the government's proactive posture signals Greece’s intent to navigate economic turbulence not through isolationism, but by enhancing integration, modernization, and global outreach.
