For Greece, the first quarter of 2025 was characterized by increased political tensions, driven by mass protests over the 2023 Tempi train crash and broader concerns about corruption and governance. The demonstrations, which peaked on the crash’s second anniversary in February, highlighted growing public mistrust, with a significant portion of the population believing key details of the case are being covered up by the government and judicial authorities. In response, Greek opposition parties triggered a no-confidence vote, which the government survived but at the cost of record-low approval ratings. A subsequent cabinet reshuffle announced on 14 March aimed at resetting the political agenda was met with scepticism, extending political volatility.

Despite these challenges, Greece’s economic fundamentals remain stable. Moody’s recent upgrade of the country’s credit rating to investment grade highlights institutional improvements and fiscal discipline, though concerns persist over the slow pace of structural reforms. Economic growth continues, with GDP projected to rise by 2.5% in 2025, supported by strong tourism revenues and a resilient shipping sector. However, inflation, wage stagnation and housing affordability remain pressing concerns, limiting the broader economic benefits felt by households.

Going forward, the government is expected to pivot towards economic and social policy in an effort to regain public confidence. The effectiveness of this approach will depend on how it balances policy implementation with public sentiment, as well as the trajectory of on-going protests. While Greece remains a stable investment environment, political uncertainty and social unrest will be key factors shaping the country’s economic and institutional landscape in the months ahead.