The recent Greek elections and a possible softening of the conditionality imposed on the country in exchange for the rescue package may give the recession-stricken country some breathing space. But the task is still immense: further cuts, liberalisation and far-reaching public sector reforms are pending, and the Greek economy, in recession for the fifth consecutive year, needs growth stimuli. Persistent discussion about Greece leaving the Euro area has slowed the inflow of necessary capital. Meanwhile, the top-down approach to reform is bumping against limitations. To enable administrative bodies to function, to break up fossilised structures and combat corruption and political cronyism, far-reaching reform is necessary. This can only be implemented by domestic forces, but will nevertheless profit from external support. A new strategy is required to avoid the feeling from prevailing across society that future prospects are lacking. This should be developed within the country with external support and, above all, focus on one thing: strengthening innovation at local and regional levels.