Greek education secretary Petros Efthymiou and prime minister Kostas Simitis have agreed proposals for a national assessment system to monitor the quality of education provided by Greek universities.
If approved, the proposals will form the basis of legislation that will be presented to parliament.
Among European Union states, only Greece and the French community of Belgium lack an assessment system.
Representatives of the education ministry, the universities and the wider academic community will draw up a formula for the system, which it is hoped will be in place by 2003.
Universities and the recently upgraded technological institutes will be required to make plans for their own development. Assessment will be based on quality, adherence to time limits and efficiency.
Mr Efthymiou also put forward a number of proposals for reform of the legal framework of higher education - which is more than 20 years old - postgraduate studies and university research.
He said the system would set minimum grades for secondary school leavers, which would mean that candidates could no longer enter technological institutes with very low grades.
He announced an 8 per cent increase in the budget for education to E4.8 billion (£3 billion).