Undoubtedly, the New Year of 2002 was a particularly significant one for Greece, which together with Finland, due to their geographical position, where the first European countries to welcome in the Euro, the new, common European currency. For the Greek economy, membership of economic and monetary union (EMU) was the capping stone of a significant and labourious effort over the course of many years. It is characteristic that for six consecutive years, Greece's rate of growth in GDP was higher than the corresponding European average. At the end of 2001 Greece had the highest rate of real convergence with the average European level of income since 1981, the year that Greece joined the European Community. Despite this, completion of true convergence in the context of EMU remains one of the central issues for the Greek economy.
The careful economic policy that has been followed over recent years was primarily intended to bring about a general improvement in the performance of the Greek economy, to increase employment, combat social exclusion and maintain the cultural heritage of the country. In addition to these objectives, the Greek government is also focusing its efforts on reducing the level of unemployment, which in 2001 was around 10.9%
Despite the important achievements over recent years, changes in the landscape of the Greek economy are continuing at rapid rates, mainly at the level of reforms in the public sector and public administration in general. In parallel, the programme of privatizations is continuing with specific targets for 2002 being to transfer holdings in the Piraeus Port Organization, Olympic Airways, the Athens Piraeus Water Supply Company (EYDAP), the Public Power Corporation, the Public Gas Corporation of Greece S.A. (DEPA), Hellenic Petroleum, the Hellenic Post Office, the Post Office Savings Bank, the General Bank of Greece, the Athens Stock Exchange and HELEXPO to the private sector. In addition funds from the 3rd Community Support Framework, public works for the 2004 Olympic Games and public and private investment in general are expected to significantly bolster the productive capacity of the Greek economy.
Continuing growth of the Greek economy has already created significant firm bases capable of withstanding strong fluctuations in the economy, such as the general unfavourable economic climate which emerged at an international level following the events of 11th September. Economic climate indicators have already begun to improve again and are even at higher levels than the corresponding indicators for the European Union and the Euro Area (Source: Results of Economic Convergence Surveys, December 2001 - The Foundation for Economic and Industrial Research). For Greece entry into EMU offered economic actors an environment with reduced interest rates and reduced exchange risk. Consequently, the conditions for an increase in confidence in the market and the undertaking of more intense investment initiatives have been created.
It is worth noting the significant efforts made by the Greek economy to integrate new technologies in operational terms into development plans via the information society programme, the Standing E-Business Forum and the “Go-online” programme. The effective operation of the online taxation transaction system “Taxis-Net” should also be noted, a system which has been recognized as one of the most functional and successful at European Union level in the context of e-government programmes.
The Programme of Stability and Development for Greece for the period 2001-2004 was approved by the European Commission during the recent visit of the Greek Prime Minister, Mr. Simitis, to Brussels.
