Greece's market liberalisation may not work wonders

Significance

Freer access to markets and the professions has been recommended to stimulate competition, generate growth and benefit consumers. However, the benefits of such an approach for the Greek economy are unlikely to materialise, as the increased competition will be free, but not fair. Greek and European economic players have vastly different operating conditions, including access to finance, state support and regulation. Political uncertainty, lack of natural resources, low productivity and relatively high wages continue to deter future investment into the country's productive capacity.

Impacts

• The reforms will address the inability to compete on equal terms with European counterparts of Greek economic actors -- predominantly, SMEs.
• Yet their perceived injustice will antagonise the population, intensifying nationalistic attitudes already present in society.
• Greece's barely surviving SMEs will take an additional hit from liberalisation of the energy market.