Greece’s shadow economy: 50 billion euros evaded taxes

According to experts, in Greece it circulates from €45 to €50 billion “black” money – it’s almost fifth of GDPwhich does not fall under the control of tax authorities.

Despite the large-scale digitalization and the long-term fight against tax evasion, the shadow economy remains one of the most resilient phenomena in the country.

According to data Center for Planning and Economic Research (KEPE)the share of the unrecorded sector in the Greek economy is 20.9% of GDP – this is on 3.3 percentage points above average EUequal to 17.6%. In the list of countries with the largest volumes of shadow trafficking, Greece is still adjacent to Italy And Poland. Even after a decline of 7.3 points since 2003, the level of “shadow” here is almost twice as high as Germany or Ireland.

What does the state lose?

As the publication notes New Moneyannual lost budget revenues are equal to:

• two annual payments fuel subsidy;
• social support package in the amount of €1.7 billion;
• significant increase salaries and pensions in the public sector.

According to the head Bank of Greece Janis Stournarasthe problem of tax evasion has international characterbut in the case of Greece the scale is impressive: citizens spend approximately €40 billion more than declared. Between 2015 and 2021, this gap ranged from €36 to €49 billion annually.

Actual scale may be larger

Study Center for Economic Policy Research (CEPR) showed that the real size of the shadow economy in Greece significantly higher official data. CEPR estimates that the shadow is 36% of GDP – This is more than double the average for developed countries (17%) and significantly higher than the EU average.

For the period from 1999 to 2020, despite efforts to development of digital payments And tightening tax controlinformal sector in Greece grew by 4%. They follow her Italy (31%), Spain and Portugal (24%)and also Lithuania, Latvia and Bulgaria with figures of about 20%.

Experts believe that the problem lies not only in the culture of cash payments, but also in low level of trust in government institutions. From paying the nanny in cash and tipping the waiter – to gray schemes and capital laundering — the spectrum of the “invisible economy” covers almost all sectors of society.

As a result, as analysts note, the shadow economy is undermining financial stability country, deprives the state of investment and makes budget chronically dependent from external injections and European funds.

Editorial opinion

Problem shadow economy V Greece – This is not a failure in the system, but the system itself. Half a century of crises, populism and political hypocrisy gave rise to a social contract: the state pretends to govern, citizens pretend to pay.

It is impossible to defeat the shadow without changing the very structure of trust. While the citizen perceives tax How penalty for honestyand the official – how opportunity to earndigitalization and reforms will remain beautiful PowerPoint presentations.

Yes, the Greek “shadow economy” is lively, inventive, almost romantic. She feeds millions, supports small business and holds economy afloat when the bureaucracy is doing everything to drown it. But behind this “people’s ingenuity” the price is hidden – stagnation and dependence.

Greece will not be able to become a modern country until it learns to build relationships between state And citizen not through deception, but through mutual respect and responsibility. Because a country where everyone plays hide and seek with the tax authorities ends up hiding its own future from itself.

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