New fiscal measures unlikely to solve Greeks’ problems

Significance

A broad range of new measures aim to address Greeks’ growing dissatisfaction with the rising cost of living, deteriorating quality of public services, over-tourism and rising residential real estate prices.

Impacts

• Adverse demographic trends will constrain labour supply and limit future economic growth.
• Several unions will likely go on a nationwide strike in November.
• Tax incentives stimulating housing supply will moderate future growth in real estate prices.