GREECE Trends and Developments Contributed by: Theodoros Skouzos and Natalia Skoulidou, Iason Skouzos TaxLaw
Defence and security industries Greece is consistently among NATO’s highest defence spenders, allocating around 3.1% of GDP in 2024, sig - nificantly above the 2% guideline and nearly double the EU average. In 2025, the government announced a 12-year defence modernisation plan of more than EUR25 billion up to 2036, including new submarines, drones, satellite systems, an “Achilles Shield” anti- aircraft and anti-drone system, and 20 F-35 fighter jets, combined with upgrades to existing F-16s and frigates. This sustained spending creates opportunities in: • defence manufacturing and shipbuilding, including patrol vessels and corvettes, some of which are to be built domestically; • maintenance, repair and overhaul services for air, naval and land platforms; and • cybersecurity, surveillance, communications and dual-use technologies that can also serve civilian infrastructure. However, the sector is highly sensitive politically and subject to strict export controls and compliance with EU, NATO and national rules. Investors should expect intense scrutiny, complex procurement processes and a strong role for strategic considerations in contract awards. Key structural challenge: slow justice system Perhaps the single most cited business environment challenge in Greece is the slow and often unpredict - able justice system. IMF analysis and the European Commission’s Rule of Law reports highlight lengthy case processing times, large backlogs and procedur - al complexity, which weaken contract enforcement and the effectiveness of insolvency and restructur - ing frameworks. Recent press coverage summarises the IMF’s message bluntly: slow justice continues to hamper growth and acts as a brake on investment, despite some reforms. For investors, this has practical consequences: • enforcing contracts, securing collateral or litigating disputes can take years rather than months;
• even when laws are modern and EU-aligned (for example, the bankruptcy code), their impact is diluted by judicial bottlenecks; and. • Arbitration and other forms of alternative dispute resolution (ADR) are important tools but are not used efficiently, and choice-of-law and jurisdiction clauses in contracts deserve careful attention. The direction of travel is positive, with digital case management, specialised commercial courts and expanded ADR being introduced, but investors should still plan on the basis that the justice system is slow and conservative compared to the EU average, and the impact of reforms is very slow. Key structural challenge: bureaucracy in practice Greece has made real progress in improving its busi - ness climate. The World Bank’s legacy Doing Busi - ness data and newer analyses show that the country has climbed the rankings, and reforms since 2019 have targeted the simplification of procedures, faster licensing and lower administrative burdens, espe - cially through digitalisation. The government recently announced 12 key reforms aimed specifically at cut - ting bureaucracy and boosting entrepreneurship. However, a gap remains between the “law on the books” and the “law in action”. Businesses frequently report: • overlapping competencies between different authorities and municipalities; • multiple permits and certificates being required for the same activity; and • inconsistent interpretations of rules across regions or even individual officials. The practical conclusion is not that Greece is impos - sibly bureaucratic (it is less so now than during the crisis years) but that investors should factor in extra time and budget for regulatory navigation, and should rely on experienced local advisers who understand both the formal rules and informal practices of key authorities.
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