About eight out of ten members of the Greek Economists Group believe that the institutional framework for protecting property rights in Greece is deficient, with serious long-term implications for the country’s development prospects.

Efficient ownership security is considered one of the most important conditions for development, as it is associated with strong incentives for taking business risks, legal certainty and lower transaction costs. On the other hand, in countries where property is not adequately protected, its use and possession is not secure. It has been shown that, especially in developing countries, reforms aimed at strengthening property protection bring very positive results in terms of economic and social development and the fight against extreme poverty.

A total of 28 Greek economists responded to the Group’s August question. Of these, an impressive 78% consider the protection of property in our country insufficient, while it is no less characteristic that not a single opposite answer was recorded among the participants. 21% were placed between the two options. Percentages are up to 99% due to rounding.

In their comments, which are fully available on the KEFIM website, members of the Hellenic Group of Economists emphasize that, despite the formal harmonization with the European core, much remains to be done to effectively protect property in our country. In this direction, they point to the main aspects of the problematic situation: among other things, the incompleteness of the National Cadastre, often decades of confiscation by the state of real estate for public use without compensation or release, the associated problem of huge delays in the consideration of cases, but also inefficient application of the relevant laws by the courts, protection of intellectual rights and encroachment on public lands, as in the case of Keratea.

According to members of the Greek group of economists KEFIM, the implications for the development outlook are serious.

Among these remarks, professor emeritus of the Athens University of Economics and member of the Hellenic Group of Economists, George Bytros, who also proposed the content of the question, emphasizes the need to revise articles 17 and 106 of the Constitution in the direction of more effective protection of property. As he emphasizes, the cost of constitutional property provisions in place since 1975 makes some equivalent return of capital in our country often unprofitable for long-term investments, which thus attract neighboring countries, despite the problems they face.

* Mr. Giorgos Archondas is a member of the Scientific Council of KEFIM and the head of the Hellenic Group of Economists.

The Greek Economists Group is a KEFIM initiative that aims to record and report on the voices of leading Greek women and Greek economists on critical economic policy issues. The panel is attended by 75 economists from 59 universities and institutions in 11 countries. A detailed list of participants, their answers to monthly questions and their explanatory comments, as well as answers to frequently asked questions about the Panel can be viewed on the KEFIM website, kefim.org.