Investments in Greece at a Stand Still



eData from the pan-European survey by the European Commission has shown that investments in Greece are in a deadlock. After six years of recession and many structural reforms it appears that the Greek businessmen still prefer to invest in cafes, restaurants, hairdressers clothing and shoe stores rather than in the fields of innovation, technology and exports.

At the same time other bailout countries such as Spain, Portugal and Ireland are promoting more productive sectors. However, the Greek economy is dominated by small businesses,  the so-called non-productive sectors. Another recent survey showing that about 90% of new Greek enterprises are in non-productive sectors.

The European Commission survey also revealed that the few productive corporations  (less than 20%) employ over 60% of the country’s private employees. However, it appears that those who follow the usual pattern of the Greek economy that offers easy money have been rewarded, while others who invest in exports and more productive fields are struggling to survive.

According to Endeavor Greece the most promising sectors are: tourism, agriculture, green technologies, information and communication technology, financial services, health, commerce, biotechnology and nanotechnology.

Although Greek businessmen have many ideas, it is very difficult to realize them because of insufficient state funding, corruption in public administration, bureaucracy and the difficulty in securing loans.


4 COMMENTS

  1. Nothing has significantly changed over the past five years to encourage investment. Labour laws are still unfavourable, there are more EU/domestic regulations, ever rising/ever uncollected taxes and banks unwilling to loosen credit. Tomorrow we will likely read glowing reports of some casino or foreign company nosing around for a fire sale discount to please the coalition media overseers.

  2. Read my words “Investors won’t invest in Greece” The country is not stable politically, unfair taxation, no justice and unions destabilizing the economy with strikes and demonstrations something is not desired by investors while nothing has been implemented from the required changes by the EU. How can investors invest in a country when it’s people are not secured while corruption still on going???

  3. “it is very difficult to realize them because of insufficient state funding, corruption in public administration, bureaucracy and the difficulty in securing loans.”
    Pretty much sums up the article well I think. Greek bureaucracy and corruption in public administration is what Greece’s problem is..Unfortunately no one is willing to do anything about changing this culture and we still have permanent employment in the public sector.

  4. At the moment …….Investing in Greece is the some like investing in” russian roulette”…hopping to hit the jack pot….:-)