The Institute for Regulatory Policy Research (INERP) participated for the first time this year as a partner in the Wealth of Nations Index (WNI), preparing the analytical insight for Greece. Developed by the Warsaw Enterprise Institute in cooperation with 20 think tanks worldwide, the Index offers an alternative perspective to GDP by measuring both the size of the private economy and the quality of government services across seven key policy areas: defence, internal security, infrastructure, environment, healthcare, primary and secondary education, and higher education.
"The modern state is larger and more expensive than ever before. It collects an enormous share of the income generated by citizens, regulates ever more areas of social and economic life, and increasingly argues that without further expansion of the public apparatus it will be unable to provide security, stability, and development. The problem is that we rarely ask the fundamental question: does the state actually use citizens’ resources efficiently, and do rising public expenditures really translate into greater prosperity?"
The answer can be found in the Wealth of Nations Index (WNI), published this year for the sixth consecutive edition. It was developed by the Warsaw Enterprise Institute as a response to the limitations of GDP as a measure of prosperity. While GDP treats every unit of expenditure as equally beneficial, the WNI adopts a more demanding approach by combining the size of the private economy with a separate assessment of what citizens actually receive from the state in seven essential sectors: defence, internal security, infrastructure, environment, healthcare, primary and secondary education, and higher education.
This year's edition was produced in collaboration with 20 think tanks from around the world, with the Institute for Regulatory Policy Research contributing the analysis of Greek data. The Index covers 40 economies, including all European Union and OECD member states, as well as Ukraine.
Key Results for Greece
Greece has climbed three positions since 2015 and ranks 31st out of 40 countries in the Wealth of Nations Index 2026. This represents one of the most significant improvements recorded this year and is driven primarily by the recovery of private economic activity. However, the country's public sector continues to underperform, particularly when compared with economies of a similar size and structure.
Greece allocates 52.9% of GDP to public expenditure, the fourth-highest share in the European Union. Yet the quality score of this spending (0.668) remains below that of countries with comparable private-sector performance, indicating that government outcomes remain weaker than those achieved by peer economies. Even Poland, which is broadly comparable in several respects, performs slightly better.
Healthcare is among Greece's weakest-performing sectors, while education outcomes have deteriorated. By contrast, the country's strongest area is defence capability. The main structural weakness remains the chronic investment deficit, reflected in excessive reliance on consumption and insufficient capital formation.
Key points:
- Greece has risen three places and now ranks 31st among 40 countries.
- The quality of public expenditure remains below that of comparable economies.
- Weakest sectors: healthcare and education.
- Strongest sector: defence.
- Economic recovery is driven primarily by consumption, while investment intensity remains structurally low.
The Broader International Picture
The wider picture is less encouraging. In most of the countries examined (27 out of 40), citizens received less value for public money in 2026 than they did a decade earlier. Government budgets have expanded substantially, yet outcomes have not improved at the same pace.
This deterioration began after the COVID-19 pandemic. Until 2021, the quality of public spending generally showed signs of improvement. Since then, however, it has declined across much of the sample, while private-sector growth has almost halved and has become negative in more than a dozen economies.
At the top of the ranking, the United States, Norway and Switzerland continue to lead by combining strong private economies with effective public institutions. The strongest momentum, however, is found among the emerging economies of Central and Eastern Europe, particularly Romania, followed closely by Croatia, Bulgaria and Greece.
INERP's Participation
INERP participated in WNI 2026 as the exclusive national partner for Greece and prepared the country's analytical report. This contribution reflects the Institute's commitment to evidence-based research in public governance and regulatory policy and represents an important step toward strengthening its international presence within the European think tank community.
Media Contact
For expert commentary or interview requests regarding the Wealth of Nations Index 2026, interested parties may contact the Warsaw Enterprise Institute.
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This note was prepared by our member Foteini Vittou.