OECD Product Market Regulation (PMR) Indicators: How does Greece compare? ___________________________________________________________________________________ Competitive product markets foster economic growth and can improve the living standards of citizens. OECD’s Product Market Regulation Indicators assess the alignment of a country’s regulatory framework with internationally accepted best practices. The Economywide Indicator measures the distortions to competition that can be induced through the involvement of the State in the economy, as well as the barriers to entry and expansion faced by domestic and foreign firms in different sectors of the economy. This indicator is complemented by a set of Sector Indicators that measures regulatory barriers to competition at the level of specific network and service sectors.
Overall PMR Indicator Index scale 0 to 6
Greece
1.56
OECD average
1.38
5 Most competitionfriendly countries 5 Least competitionfriendly countries
1.00 1.82 0.0
2.0
4.0
6.0
Economy-wide PMR Indicators: a breakdown by major components Index scale 0 to 6 from most to least competition-friendly regulation
6
Greece
OECD average
5 Most competition-friendly countries
5 Least competition-friendly countries
5 4 3 2 1 0 Public Ownership
Involvement in Business Operations
Simplification and Evaluation of Regulations
Admin. Burden on Start-ups
Barriers in Service Barriers to Trade & Network sectors and Investment
Note: All the averages include only OECD countries. Information refers to laws and regulation in force on 1 January 2018. Source: OECD 2018 PMR database.
ECONOMY-WIDE HIGHLIGHTS
Economy-wide product market regulation in Greece is somewhat above the OECD average. The presence of stateowned enterprises is limited and their corporate governance is in line with most key OECD best practices. In addition, the administrative burden on start-ups is among the leanest in the OECD, and barriers to competition in network services are low. In contrast, there is scope to improve the system for evaluating the impact of new regulations on competition and to introduce rules to regulate the interaction between interest groups and public officials. Further, the involvement of the state in business operations is high because of widespread use of command and control regulation.
Economy-wide PMR indicators: a breakdown by sub-components Index scale 0 to 6 from most to least competition-friendly regulation Distortions Induced by State Involvement Simplification and Evaluation of Regulations
Complexity of Regulatory Procedures
6 5 4 3 2 1 0
Interaction with Interest Groups
Involvement in Business Operations
5 Least competition-friendly countries
Assessment of Impact on Competition
6 5 4 3 2 1 0
Price controls
Governance of SOEs
Direct Control
Scope of SOEs
Gov’t Involv. in Network Sectors
Public Ownership
6 5 4 3 2 1 0
5 Most competition-friendly countries
Public procurement
OECD average
Command & control regulation
Greece
Barriers to Domestic and Foreign Entry
Barriers to Trade Facilitation
Barriers to Trade and Investment
Treatment of Foreign Suppliers
6 5 4 3 2 1 0
Tariff Barriers
Barriers in Service & Network sectors
5 Least competition-friendly countries
Barriers to FDI
6 5 4 3 2 1 0
5 Most competition-friendly countries
Barriers in Network sectors
Licenses and Permits
Admin. Burden on Start-ups
Admin. Requirements for Lim. Liab. Companies and Pers.Owned Enterp.
6 5 4 3 2 1 0
OECD average
Barriers in Services sectors
Greece
Note: All the averages include only OECD countries. Information refers to laws and regulation in force on 1 January 2018. If the blue bar does not appear on the chart for a specific indicator, it means that its value is 0. Source: OECD 2018 PMR database.
SECTOR-SPECIFIC HIGHLIGHTS Greece has a competition-friendly regulatory set-up in most network sectors, with the exception of transport by road and, to a lesser extent, electricity. In contrast, professional services are characterised by regulatory barriers to competition that are slightly higher than the OECD average, mostly due to high barriers to entry and conduct in the legal professions and to restrictive retail trade regulation.
Regulation in network and service sectors PMR Indicators for network sectors Index scale 0 to 6 from most to least competition-friendly regulation Greece 5 Most competition-friendly countries
6
OECD average 5 Least competition-friendly countries
5 4 3 2 1 0 Electricity
Gas
Rail
Air
Energy
Road
Water
Fixed
Transport
Mobile
E-Communications
PMR Indicators for professional services* and retail distribution Index scale 0 to 6 from most to least competition-friendly regulation Greece 5 Most competition-friendly countries
6
OECD average 5 Least competition-friendly countries
5 4
3 2 1
0 Lawyers
Notaries
Accountants
Architects
Professional services
Civil engineers
Real estate agents
Retail distribution
Retail sale of Medicines
Retail trade
* When comparing the indicators across countries, it should be kept in mind that the activities undertaken by specific professions may vary between countries. Note: All the averages include only OECD countries. Information refers to laws and regulation in force on 1 January 2018. Source: OECD 2018 PMR database.
OVERALL ASSESSMENT
With regulatory barriers to competition that are higher than the OECD average in several areas, there is scope for improving product market regulation in Greece.
Strengths
Challenges
The administrative requirements necessary to set up new firms, whether limited liability companies or personally owned enterprises, are among the lowest in the OECD.
The presence of state-owned enterprises, in particular in network industries, is limited. In addition, the corporate governance of these enterprises is in line with most key OECD best practices, thus levelling the playing field between publicly owned and privately owned firms.
There are no rules that ensure transparency in the interactions between interest groups and policymakers. Further, there is no law that requires a cooling off period for members of legislative bodies and appointed public officials when they leave their post.
Regulation of the retail distribution sector is not competition-friendly when compared to other OECD countries. This is mostly due to a burdensome registration and licensing regime. Rules about shop opening hours and regulations of end-of-business sales are also relatively restrictive. Further, the number, location, ownership and opening hours of pharmacies are strictly constrained.
Lawyers and notaries are more strictly regulated than in many other OECD countries, both in terms of barriers to entry in the profession and of limits imposed on their professional conduct. For example, lawyers face advertising restrictions, a complete ban on cooperating with other professions and law firms cannot benefit from limited liability.
Barriers to foreign investments and tariff barriers are among the lowest in the OECD.
Further information
“What are the 2018 OECD PMR indicators?” PowerPoint presentation on OECD PMR website
Vitale, C., et al. (2020), " The 2018 Edition of the OECD PMR Indicators and Database – Methodological Improvements and Policy Insights", OECD Economics Department Working Papers
Please visit our website : http://oe.cd/pmr Contact us at: PMR2018@oecd.org