Improving productivity requires first and foremost a modernisation of the business environment. Policies in a number of areas could help here. The strengthening of competition in product markets can encourage innovation and the implementation of measures to reduce production costs. Competition can be encouraged by removing barriers to business start-ups and reducing the complexity of the regulatory environment surrounding firms.
Productivity levels in business also depend on the efficiency of public administration. It is commonly agreed that inefficient staff allocation and the operational framework of public administration do not meet the requirements of the Greek society and economy in an efficient manner, while reform proceeds at a relatively slow pace.