Price competitiveness is particularly important for Greek firms as their exports are largely concentrated in low-tech products. At the end of the last decade, high-tech or intermediatetech products represented only 28% of total exports, compared to nearly 50% for the EU average. Yet since euro entry price competitiveness in Greece has actually been on a worsening trend.
According to the Commission, the real effective exchange rate (on an HICP basis) in Greece was still rising until 2011. To facilitate an export-led recovery, this trend has to be corrected and there is no way this can be achieved in the short run other than by adjusting prices and costs.