Greek salaries stuck in 2010s: Europe moves ahead

Center for Planning and Economic Research (CEPE) in his report “Economic Development, Issue 58” recorded an alarming trend: wage inequality in Greece is growing, and the country is falling further and further behind the average European Union.

According to data for 2022the situation of the regions has worsened: the gap with the European average has increased, and Atticaalthough it remains the most affluent, does not come close to the metropolises of Western Europe. At the same time, Eastern Europe is strengthening its position, and in some cases even ahead of Greece in terms of wages.

KEPE explains this shift long-term consequences of the economic crisisstrict fiscal consolidation policies and weak investment activity, which does not allow the economy to move into high added value sectors. Regions of Eastern Europe, on the contrary, were able to use investments EU and better adapt to global market demands.

Greek regions at the bottom of the EU27 table

From 237 regions European Union Greeks occupy the last positions in terms of wages. Region North Aegean Sea fell from 202nd place in 2009 to 237th in 2022, and Epirus is on 236th. On average for the period 2009–2022. Greek regions lost about 40 positions in the European income ranking.

These data support other studies showing low purchasing power Greek salaries. Private sector workers’ incomes remain squeezed between high tax burdens and lack of productivity growth. Result – persistent socio-economic stagnation and lagging behind the pan-European dynamics.

KEPΕ conclusion: Greece is gradually moving into the category of Eastern European economies, where low wages are a factor in competitiveness rather than prosperity. Without increased investment and labor market reforms, the gap with developed Europe will only widen.

Position of Greek regions in the EU-27 ranking by average salary (PPP)

Source: Eurostat, data processing.

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