Supporting the transition from informal to formal economy and reducing undeclared work in Greece: Identifying drivers and ensuring effective compliance

Background and situation analysis

In Greece, undeclared work remains a significant feature of the economy, despite measures taken in recent years to address the issue. The size of the undeclared economy is commonly estimated to be equivalent to some 25% of GDP in Greece (Schneider, 2013). Addressing undeclared work is a complex and difficult challenge, especially when a country faces a difficult socioeconomic situation marked by high unemployment, a poor business environment and the lack of fiscal space. In this context, the ILO, in close collaboration with the Greek Government and the social partners, has formulated the present project funded by the European Commission.

Objectives of the current Program

Against this background, this Program proposes to focus on improving the rule of law in Greece through six main initiatives: