Pathways for Shared Growth Cooperation
Greece-Arab World
Distinguished Guests,
Ladies and Gentlemen,
It is with great pleasure that I stand here with you today, in the 4th EU-Arab World Summit. The history shared between the Mediterranean people is a history of common challenges and opportunities. Our "Strategic Partnership” seeks to explore these opportunities and provide common solutions to common challenges.
The Arab World is Europe’s third largest trading partner after the US and China. The traditional friendly relations between Greece and the Arab countries is an excellent basis to explore mutual development opportunities. I will start with the present outlook of the Greek economy, before elaborating further with the opportunities arising from the prospects of cooperation between Greece and the Arab world. During the past decade, the terms investment, economic growth and employment carried a negative charge in discussions concerning Greek economic activity. World news was flooded with unfavourable forecasts for the Greek economy and discouraging prospects for both households and businesses.
A little more, than 100 days since the last elections, Greece has already turned a new page. A line of positive news, from 10-year low interest rates, to the latest credit rating upgrades, provide testament to the determination of this government to pursue investment and growth friendly policies. As a result, Greece is reclaiming its position in the world business map as a country of extroversion and investment. Now is the time to take advantage of the strong political, economic and social momentum to close the investment gap with peers and competitors, and catch up fast.
Recognizing our needs, setting our goals and deciding on the means by which to achieve them, is the 3 step process for us to succeed.
Step 1.
We want to define the needs of our country in the long term. The crisis took a heavy toll on both business and society. Brain drain and massive disinvestment were the obvious consequences of this ten-year economic stagnation. Tax relief, job creation, and a renewed faith to the prospect of a life that goes beyond the everyday struggle for survival, is what the Greeks expect from their government. Most of all they expect, better yet, they demand results. They demand to be prosperous in their daily lives.
This is what our government is called on to deliver: Sustainable Results.
Step 2.
How do we aim to achieve these results?
Our goal is to create new wealth by attracting Foreign Direct Investment. In the past, the economic environment was not known as being investment friendly. Bureaucratic and political impediments seemed to be the norm, rather than the exemption. Over taxation, weak public sector efficiency and litigious delays, served as common features, impeding investment. How we can succeed in attracting investment then?
The answer takes us to
Step 3 and the means by which to achieve the aforementioned goals.
Building trust: they call it credibility, is the best way forward for us. Our reform agenda aims to attract investment, create jobs, accelerate growth and further restore trust in our economy. And we are fully committed to it.
In the Ministry of Foreign Affairs, we are utilizing economic diplomacy as the main policy instrument to facilitate economic growth. In order to support the internationalization of Greek businesses and facilitate investment, we have directed our efforts in 3 fronts:
1. We have integrated all competent bodies for economic diplomacy, including export promotion and investment facilitation, under one roof at the Ministry of Foreign Affairs.
2. We have reformed the institutional set up of Enterprise Greece, our primary trade and investment facilitation agency, to enhance flexibility and efficiency.
3. We are promoting a positive image for Greece, not just as a tourism destination, but also as a venue for business activity, repositioning the national “brand name” in the world business map.
In addition to that, the current administration has stepped up the pace of structural reforms and privatizations. An ambitious privatizations’ program is already underway freeing up investment opportunities. The implementation of flagship investment projects, like Hellinikon in Athens, are indicative of our investment driven strategy.
Legislative initiatives, namely the new law for development and the revised National Energy and Climate National Plan aim to improve on investment provisions. A series of tax reductions are already applied. Indicative examples include: Corporate tax reduced to 20%, Construction VAT and Transaction Tax suspended, and a 40% Tax deduction offered for the upgrade of buildings. How can the Arab find constructive ways to collaborate with Greece? Given the accelerating pace of economic reforms, this is the ideal time for Arab countries to invest in Greece. Greek projects are still priced competitively and offer excellent returns on investment.
From our side, we can guarantee that the present business friendly environment will remain so and further improve in the near future. Naturally, Greece and the Arab world share strong historical and cultural bonds on which to develop our economic relationship.
At the same time, Greece, as a member of the EU, can become the European gateway for Arab countries. Indeed, the steady increase in mutual trade confirms the economic potential of our cooperation extending to multiple fields and ventures.
At present, we see important Arab investments in the tourism, fish farming, banking and real estate sectors. Furthermore, Greece has promising projects in the pipeline in the fields of energy, transport and waste management. In the field of energy we have projects in storage, interconnections and production amounting to a total of €23 billion by the year of 2025.
In Alexandroupolis we are implementing, as we speak, a floating storage and regasification unit with the ability to transport, store and convert LNG into natural gas, with a capacity of 170,000m³, that is being developed offshore.
In Kavala we are planing to convert the almost depleted underwater natural gas field as an underground natural gas storage unit, with a total capacity 1bcm.
Two electricity interconnectors are being envisioned: one linking mainland Greece to Israel via Cyprus and, a second one, linking Bulgaria with northern Greece.
Several promising projects in the field of wind generated energy are also being developed by the private sector. Among them, in Crete wind farms able to generate 1000 MW and a budget of €2 billion and an offshore park in Alexandroupoli, with a capacity of 216 MW and a budget of €400 million.
In transport and logistics several long-term concessions will be made available including 10 port authorities, 7 marinas and 23 airports.
In waste management, a 24% stake in the Water Supply & Sewage Company (EYATH) of Salonica will also be made available.
To these, one must add, the significant emerging opportunities in the export trade. The geographical proximity makes us natural partners in this regard. In particular, the Greek agro-food, pharmaceuticals and construction material sectors can supply quality products to the Arab markets in a mutually beneficial relationship.
Ladies and Gentlemen,
It is my firm belief that Greece and the Arab world can work together to further strengthen our economic ties.
Now is the time to take advantage of the positive economic and political momentum to enhance our cooperation into new fields of activity.
Thank you
October 29, 2019