European Union pp 183-206 | Cite as

The Third Hellenic Economic Adjustment Program

Success Story of Macroeconomic Stabilization or Failed Story of Economic Growth Restoration?
  • Konstantinos J. HazakisEmail author


Long-term economic adjustment without growth delivers economic stagnation. Analyzing the Hellenic adjustment effort, it becomes evident that fiscal consolidation attains primary surpluses while it leaves public debt at non-sustainable levels. The terms of the economic consolidation program in Greece do not favor structural and real convergence to euro area average but mainly target nominal convergence with Eurozone economies. Excessive direct and indirect taxation, internal devaluation of incomes, institutional inertia on critical growth issues, and public expenditure contraction undermine real economic adjustment.


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Democritus University of ThraceKomotiniGreece

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