€180 billion in EU aid failed to reform Greece’s agricultural sector
Forty-four years after Greece joined what was then the European Economic Community, it appears that the €180 billion poured into farm subsidies has vanished into a sinkhole—failing to modernize the primary sector or deliver lasting benefits to farmers, consumers or industry.
During the first 15 years after 1981, agriculture’s gross added value steadily declined. After decades of fluctuation, it settled in 2023 at roughly the same level as in 1996. Meanwhile, the number of people working in farming has dropped by one million over the past 45 years, and the land used for farming and livestock production has shrunk by 19%.
One encouraging development stands out: Greece’s trade balance in agricultural products—including meat—has turned positive since 2020, following 35 consecutive years of deficits.
Data also reveal that although the sector’s added value fell sharply at an average annual rate of 2.44% between 1981 and 1995, average income per farmer actually increased by 1.27% annually. This was the era of generous subsidies paired with relatively loose oversight. Direct income support and price supports accounted for 68% of the value of cereal production and an extraordinary 171% of cotton production. Subsequent reforms—cuts in price supports and lower tariffs on agricultural imports—exposed an unprepared sector.
A familiar cliché from that era claims farmers squandered EU money on nightlife and strip clubs. Like many clichés, it contains a grain of truth, but not the whole picture. Some of the subsidies did indeed go toward new tractors and farm equipment.
The deeper problem, however, lay elsewhere: the massive cash inflows were not accompanied by the planning, strategy, or reforms needed to restructure the sector. Private investment in agriculture kept falling. The government failed to create incentives to stem the rural exodus to the cities, nor did it take meaningful steps to consolidate farmland into larger and more efficient units. Today, three-quarters of Greek farms remain under 20 hectares, while the average farm size across the EU is nearly 70 hectares.
