Ongoing reforms in Greece are working to improve the business environment, but challenges remain, especially in the responsiveness of the justice system, the Organisation for Economic Cooperation and Development said. 

The Paris-based think-tank said that Greece has “improve the legal system’s effectiveness by simplifying administrative processes and communicating benefits of alternative dispute resolution mechanisms.” 

In its Economic Policy Reform, the think-tank also recommends lower entry barriers, prioritising professional services, and simplify land zoning rules. 

OECD also recommends increased participation in quality active labour market policies and training, including across all sectors and regions affected by the green economy transition.

Greece’s economy is dominated by small firms with low productivity and limited growth potential, dragging overall productivity. 

Price competition remains low in many markets, while regulatory burdens to operate in some key sectors and to re-develop land impede new entrants. Non-performing loans, weigh on the banking sector’s capacity to fund investment, OECD said. 

Also, the think-tank stresses that the green and digital transitions will require many workers and firms to adapt their activities, despite the fact that workers change jobs less often than in most OECD countries.