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:
- Identifying the particular drivers for informality in the country, including assessing the regulatory framework with a view to supporting formalization.
- Based in the EU experience, equip the labour inspectorate and other related enforcement authorities with modern strategies, methods and tools for ensuring compliance.
- Assess the interoperability of the IT systems operated by various actors involved in applying labour and social security legislation.
- Formulate through social dialogue, a roadmap to tackle undeclared work in Greece.
- Implement a Pilot Program to experiment some of the measures of the roadmap.
- Launch an awareness raising campaign on the socioeconomic risks related to undeclared work.