The MSCI index provider announced today the launch of a consultation regarding a proposal for the potential upgrade of Greece from "Emerging Market" to "Developed Market," aiming for the implementation of the decision during the August 2026 Index Review. Within the framework of the MSCI 2025 Market Classification Review, MSCI recognized that the Greek market has made significant progress in complying with accessibility standards typically observed in Developed Markets in Europe and that Greece also meets the Economic Development criteria for Developed Market status. However, until now, Greece did not meet the "Size and Liquidity Stability" rule, which requires at least five companies to meet the Developed Market Index criteria in each of the last eight Index Reviews to consider an upgrade.
European markets as a unified space
MSCI treats European countries classified as Developed Markets as a single entity for index construction and maintenance purposes. This approach reflects the high degree of integration observed in European stock markets, including harmonized market infrastructure, regulatory compliance, and expanded cross-border accessibility. Under this framework, MSCI requested feedback from market participants on whether the "Size and Liquidity Stability" rule should be applied to Greece during the consultation for its potential upgrade to Developed Market status. Recent feedback from international institutional investors supports the decision to bypass the "Size and Liquidity Stability" rule in the case of Greece and proceed with the consultation for a potential upgrade to Developed Market. Market participants noted that the size of the Greek market aligns with other smaller Developed Markets without creating issues in index replication.
Results on March 31
"Investors perceive the European Union as a highly integrated economic and financial bloc, which makes the different treatment of Greece in market classification inconsistent," said Raman Aylur Subramanian, Head of Market Classification and Taxonomy. "The increase in trading liquidity and the accessibility reforms implemented in recent years have brought Greece closer to the standards of Developed European Markets, justifying a consultation for its potential upgrade." MSCI invites market participants to submit feedback on the upgrade proposal by March 16, 2026, and will announce its decision by March 31, 2026.
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