ATHENS – The new economic and social challenges created by the coronavirus pandemic demand the creation of conditions for the transformation of the economy into a new productive model of sustainable growth, the Labour Institute of GSEE (Greece's largest trade union umbrella) said in its latest bulletin on economic develoipments.

The bulletin said that in the next quarters, the Greek economy will enter into a new phase of recession, when it will face chronic growth, macroeconomic and fiscal limitations. It noted that the expansionary efficiency of a fiscal policy mix which will be implemented in the coming period, along with the transition of the country into a negative fiscal balance, will be judged by the degree to which there is focused support of consumption and investments of both households and enterprises. "The distribution of fiscal resources and mostly, developments in employment, wages and protection of workers, will be a decisive factor for the duration and intensity of the recession and the return of the Greek economy to stability and growth," the report said.