PERSPECTIVE Greece: On a new“mission impossible”? GEORGE PAGOULATOS September 2018 n Greece has completed its third bailout program but will remain bound by a tight framework of fiscal targets and reform obligations for many years. n Productivity-enhancing reforms need to continue, but the tight fiscal framework will hinder the economy’s capacity to grow, given the existing vulnerabilities, high unemployment, and the large investment gap. n Political risk has been substantially reduced. Despite the social hardship endured since 2010, the Greek political system is now aligned behind the pro-EU mainstream, especially if compared with several other EU member states. n Shifting to a more export-oriented, higher value-added model able to sustain stronger GDP growth, raising productivity and rendering the economy attractive for foreign investment and business remain the country’s major challenges on the medium and longer run.