Sponsored Report GREECE THE ODYSSEY TO REINVENTION Photo: Shutterstock / Nick Pavlakis GREECE The odyssey to reinvention After a successful conclusion to the Eurogroup’s second review of Greece’s current bailout program, coupled with a major economic transition and substantial regulatory reforms, the country is rapidly reinventing itself. Everything points towards 2017 being the year of the ‘Hellenic Turnaround’ Photo: Shutterstock / Olimpiu Pop All signs suggest that the Greek kets,” according to Minister of Fi- politically.” preneurship, foreign investment economy is on its way back to nance Euclid Tsakalotos. When President Barack Obama and a productive model that adds growth, after seven years of reces- visited Greece in 2016, he said “the value and is export orientated. In sion, during which the country lost Wide-ranging reforms world, I don’t think, fully appreci- 2016, exports grew by 10%, while more than a quarter of its GDP. As part of the original 2015 bailout ates the extraordinary pain these investments increased 12% and, 2017 has already seen its economy program, the Greek government reforms have involved, or the tre- according to Odisseas Athanas- grow by 0.4% in the first quarter recognized that it had to restore mendous sacrifices that you, the siou, CEO of property developer and the country’s government is and safeguard fiscal sustainability, Greek people, have made,” a senti- Lamda Development, “there has forecasting increases of close to 2% implement structural policies for ment echoed by Greek Prime Min- been a substantial shift in mental- for both this year and the next – a competitiveness and growth, and ister Alexis Tsipras, who has called ity in the country with regards to the Eurogroup bailout review “an foreign capital.” “We have completed the most difficult reforms, not only agreement that recognizes the sac- The Deputy Minister to the in technical terms, but also politically.” rifices of the Greek people.” Prime Minister, Dimitrios Liakos, Nikos Pappas, Minister of Digital Policy, Telecommunications and Media The country still has major chal- confirms that foreign investment lenges ahead, though. The biggest and international investor confi- target the European Commission modernize the state and its admin- of which is unemployment that, dence are seen as key to creating sees as realistic and which became istration. Greece has moved quick- while seeing recent improvement, the ‘Hellenic Turnaround.’ As part even more so with the Eurogroup’s ly, with a massive reform process is still significant at 22.5%. of the large-scale reforms, the gov- recent completion of Greece’s bail- already implemented. Public and private sector debt ernment has put “special empha- out program review. For example, new pension, are also high, with the latter ham- sis on creating a friendly invest- Not only does the latest agree- income tax and indirect tax leg- pering the banks’ ability to sup- ment environment that guarantees ment mean an immediate dis- islation is in place, coupled with port recovery through the granting fair terms for all economic agents, bursement of €8.5 billion, it also measures for increased public of new credit. And there are still a stable tax environment, modern brings the country a step closer sector transparency, the tackling of difficult reforms in the pipeline, liquidity instruments, and invest- to medium-term debt relief mea- non-performing Greek bank loans, such as the achievement of privat- ment incentives,” he says. sures and entry into the European privatizations and increasing tax ization targets, set at €2.15 billion In his view, Greece, which al- Central Bank’s quantitative easing revenues by broadening the tax for 2017. ready offered many competitive program. base. advantages, not least its high- It provides a signal to the world These, as Nikos Pappas, Minis- Light at the end of the tunnel ly-skilled workforce and geostrate- that Greece is returning to eco- ter of Digital Policy, Telecommuni- But Greece appears to be coming gic location at the southern tip of nomic normality and guarantees cations and Media explains, were out of its crisis as a much stronger both Europe and NATO, is rapidly “much greater clarity for both “the most difficult reforms, not and more competitive country, turning “from being attractive, to Greek people and financial mar- only in technical terms, but also that has a greater focus on entre- being ideal for investments.” 1 GREECE THE ODYSSEY TO REINVENTION Sponsored Report The man at the helm: Prime Minister Alexis Tsipras Alexis Tsipras gives his view on investment opportunities in Greece and his broad take on EU, as well as Mediterranean, relations AT During my time in office, we have never failed on our targets. On the con- trary, we are consistently overachieving, Photo: Office of the Greek Prime Minister and I think this will continue for 2017 and 2018 as well. Our first priority is to attract direct foreign investments. After the completion of the second review and the agreement on the measures that will make our debt sustainable, we are now on a clear path to put an end to a tremendous crisis and achieve growth and prosperity. The idea of “Grexit” is now put to rest once and for Prime Minister Alexis Tsipras all, which for me was and always will be a no-go scenario. stability pact, and have deficits, while are expanding relations with France, Ita- So, we are now in a position to support Germany is having a current-account ly, China, the UAE, our Balkan and Black our production, to attract investments, to surplus of about 6%. But I think we are Sea partners, as well as bilaterally and encourage new forms of cooperation, in a position to turn the page and find vi- trilaterally – together with Cyprus – with to revitalize our industries, to boost our able solutions for Europe. The election of Israel, Egypt, Jordan and other countries exports, and, all in all, create new jobs Emmanuel Macron – a strong supporter of the Middle East. and significantly reduce unemployment of the EU’s core values – is great news Of course, we are actively supporting FP Is this the year of the ‘Hellenic at the height of the EU average [...]. One for the progressive and pro-European talks for a just and viable solution, on Turnaround’? of our main goals and – I am deeply community [...]. the basis of UN Security Council Reso- AT Yes – we are completely focused convinced that we can achieve this – is lutions, regarding the issue of Cyprus. A on making this happen. Last year, our that Greece can become a global hub for FP Do you see Mediterranean solution to the benefit of all the Cypriot economy performed above all expecta- energy, transportation, new technologies countries collaborating more? people, that will unlock the huge poten- tions. We had a primary surplus of over and innovation and, of course, tourism. What is your strategic vision for tial for peace and development in the 4% – 8 times higher than the projected the regional and international role region. target of 0.5% – and the projections for FP What is the way forward for of Greece? One of the biggest challenges that we a 0.4% recession were proven wrong Europe? AT We took a lead – along with faced were the negotiations regarding the because we managed to end the year AT We have to learn a lesson from France, Spain, Italy, Portugal, Cyprus refugee crisis that led to the EU-Turkey with a positive growth rate. Furthermore, the founding principles of European and Malta – in establishing the summit agreement. Despite all the challenges in the first results of 2017 – with a 0.4% unification and, specifically, the need to growth rate for the first quarter of the year focus towards human needs, solidarity, “Greece can become a global hub for energy, – are showing that the Greek economy is growth, education, employment and so- transportation, new technologies and innovation, and of already on the path of growth. And now cial justice. course, tourism.” we are in the process of regaining trust I believe that the time is right to make Alexis Tsipras, Prime Minister – of our partners, creditors, markets and some crucial decisions. I am aware that investors. there are members of our European fam- of Southern EU countries – an initiative our relations, I went to Turkey three times Our results are, first and foremost, due ily that do not share this view and, to be that was long overdue [...]. As underlined [...], also because I knew that the only to the sacrifices and hard work of the precise, the prospect of European unity in the context of the Athens Summit, way to resolve a huge crisis – that affects Greek people. They need to see the ef- and further integration. Nevertheless, we there can be no new vision for Europe the whole European continent – was to fects of our recovering economy, in their have to act decisively and collectively. without a vision for peace, cooperation communicate and to cooperate with our lives, their jobs, their healthcare, their in- Meaning that if the majority believes in and development in the Mediterranean. neighbor, building a positive agenda on come, for example – not only in figures. the principles of solidarity, democracy, In this context, Greece is increasingly the basis of mutual respect and interna- That is why our main focus is now on the freedom and social cohesion, we have to strengthening its role as a pillar of stabil- tional law. growth agenda. My main objective is to keep going. ity in a region of instability [...]. Our roots This will continue to be my goal. But be the prime minister during whose term Most importantly, we have to make a are deep, historically, in the development the key factor in making sure that this Greece returns to normality and stability, decision to overcome endless austerity, of Western civilization and today as an migration crisis did not become an un- with substantially decreased unemploy- because it creates divisions in Europe, active EU and NATO member [...].