THE ATHENS CHAMBER OF COMMERCE AND INDUSTRY Trade with Greece ANNUAL BUSINESS, ECONOMIC AND POLITICAL REVIEW No 48 2017 "A growth plan for "Real reforms the recovery of the Made in Greece" real economy" Kyriakos Mitsotakis, Alexis Tsipras, President of Nea Demokratia Prime Minister of Greece and Opposition Leader editorial Greece and the institutions must agree on a new policy mix, in order Constantine Michalos, President of the ACCI, to restore growth Vice-President of Eurochambres Greece was the first country of the euro zone to enter the tripartite support mechanism and is the only one that still depends on the assistance of its partners. The blame for this can be put on Greece’s lenders, as well as on the Greek governments responsible for handling the negotiations and implementing the adjustment programmes. ad Europe’s governments recognised from early on the need to alleviate the Greek debt and –above all– Hhad they taken the proper decisions, the effects of the crisis would have been drastically reduced. Unfortunately, it was obvious from the very beginning that they handled the Greek crisis in a myopic way, putting their domestic political agendas before the need to find a comprehensive solution. Today, everyone, not least the International Monetary Fund, recognise that, despite the harsh measures that have been, and are still being, imposed on the county, Greece’s debt is not sustainable. Nonetheless, the leaderships of the euro zone insist on ignoring reality. That said, we cannot put the blame for everything on the lenders. The Greek side also has its own share of errors and omissions. All these years, Greek governments have focused on the fiscal side of the programme, insisting on a policy mix that is based on over-taxation and “easy” across-the-board expenditure cuts, totally disregarding the structural reform side. Trade with Greece Trade 1 Thus, Greece saw a major internal devaluation, while we are still a long way from Greece’s entry which affected the workers’ standards of living, to the European Central Bank’s quantitative eas- albeit without improving the competitiveness of ing programme – on which many of the estimates the Greek economy. This failure is corroborated for positive growth in 2017 were based. by the growth of exports, which usually is a sign Given the current discord among its lenders, of competitiveness; despite the squeeze on Greece is called to propose a compromise solu- wages, export performance did not improve tion, which would include a mutually acceptable enough to offset the recessionary effect of fiscal proposal regarding primary budget surpluses adjustment. For comparison purposes, it should after 2018. be noted that in the five-years after the outbreak of This proposal may be accompanied by certain the crisis in Portugal, exports grew substantially, measures, aimed at persuading Greece’s lenders offering a push of almost 9% to the economy. This that the country will make structural changes in its push never existed in the case of Greece. The fiscal policies, which will stabilise economic indi- only thing that existed was the struggle of Greek cators on the long term and will avert the creation exporters to overcome the distortions that under- of new “black holes”. mine the competitiveness of Greek products and Such a proposal could be the commitment to a services, such as red tape, energy costs, high primary surplus amounting to 2.5% of GDP in non-wage labour costs, and the over-regulation of 2018, and the adoption of measures aimed at markets. reducing the tax burden for enterprises by 1% of Thus, in order for Greece to make the next step GDP, which would enhance Greek production, forward and enter the global capital markets, all thus jump-starting economic growth. sides must gallantly recognise their mistakes and First of all, of course, it has to be made clear take the necessary corrective action. whether Greece’s European partners can coexist The delays in the completion of the second with the IMF and its exaggerated demands or if review of the third adjustment programme are the the Greek programme will be continued, either greatest obstacle to the recovery of the Greek without the IMF, which, anyway, has not been economy. And as long as this matter remains financing Greece in the past few years, or with the pending, the Greek economy is saddled with IMF in the role of advisor or observer. In any case, more and more problems. We can already see all sides must make an effort to reach a compro- pressures mounting on Greek bonds, the prices mise, in order to break the current deadlock. of which have returned to October 2016 levels. Given that countries such as Germany and The market is still plagued by uncertainty, which France are in a pre-election phase, any further hinders investment decisions and postpones the delay will merely make it more difficult to find a restoration of confidence in the Greek economy, mutually acceptable solution. Trade with Greece Trade 2 pages No 48 2017 6. A growth plan for the recovery of Annual Business, Economic and Political Review the real economy, by the Athens Chamber of Commerce and Industry By Alexis Tsipras, Prime Minister of Greece PUBLISHER: Constantine Michalos, ACCI President 10. Real reforms Made in Greece, EDITORIAL SUPERVISION: ACCI Press Office, John Fotinias By Kyriakos Mitsotakis, President 7-9 Akadimias str. Athens - tel 210 3646043 of Nea Demokratia and Opposition MANAGING EDITOR: Leader Theodore Vamvakaris 12. The Greek economy is entering positive growth CONSULTING EDITOR: territory, John Triiris By Dimitri B. Papadimitriou, Minister of Economy and Development PHOTO: Costas Lakafosis 14. The cornerstone of investment attraction is Iakovos Hatzistavrou Cover photo: Korinthos-Tripoli-Kalamata motorway, stability, Thouria junction By Panos Kammenos, President of the Independent Hellenes party, Minister of National Defence TRANSLATION: Nick Roussos 16. The Greek economy exhibited surprisingly LAYOUT - DTP: strong performance during 2016, ALFA - OMEGA PUBLICATIONS LTD By George Stathakis, Minister of Environment 80 Filikis Etairias Halandri, tel 210 6841889 Creative Art Director: and Energy Manoli Evangelia 18. Greek maritime industry, PRINTING: By Panagiotis Kouroumblis, Minister of Maritime Khartan Holding Limited Affairs and Insular Policy Å ôÞ óéá å ðé ÷åé ñç ìá ôé êÞ, ïé êï íï ìé êÞ êáé ðï ëé ôé êÞ Ýê äï óç ôïõ 20. Tourism 365 days a year, Å ìðï ñé êïý êáé Âéï ìç ÷á íé êïý Å ðé ìå ëç ôç ñß ïõ Á èç íþí By Elena Kountoura, Minister of Tourism ÅÊ ÄÏ ÔÇÓ: Êùí óôá íôß íïò Ìß ÷á ëïò, ðñü å äñïò Å ÂÅ Á 22. Our aim is to replace the old Å ÐÉ ÌÅ ËÅÉÁ ÅÊ ÄÏ ÓÇÓ Ãñá öåß ï Ôý ðïõ ÅÂÅ Á, (counter)productive model with a new Á êá äç ìß áò 7-9 Á èÞ íá ôçë 210 3646043 economic growth model, Áñìüäéïò: ÃéÜííçò ÖùôåéíéÜò By Stergios Pitsiorlas, Deputy Minister of Economy and Development ÁÑ ×É ÓÕ ÍÔÁ ÊÔÇÓ - ÓÕ ÍÔÏ ÍÉ ÓÔÇÓ ÅÊ ÄÏ ÓÇÓ: Èï äù ñÞò Âáì âá êÜ ñçò 24. A new beginning, with a new authority, ÓÕÌÂÏÕËÏÓ ÅÊÄÏÓÇÓ: By George Pitsilis, Governor of ÃéÜííçò ÔñéÞñçò the Independent Authority for Public Revenue ÖÙÔÏÃÑÁÖÉÅÓ: Êþóôáò Ëáêáöþóçò Ιάκωβος Χατζησταύρου 26. The growth challenge, Φωτογραφία εξωφύλλου: Αυτοκινητόδρομος Κόρινθος - By Dora Bakoyannis MP, Τρίπολη - Καλαμάτα, ανισόπεδος κόμβος Θουρίας Coordinator for Economy and Development, Nea Demokratia ÌÅ ÔÁ ÖÑÁ ÓÇ: Party Íß êïò Ñïýó óïò 28. What should be done to stabilize the situation, ÄÇÌÉÏÕÑÃÉÊÏ - ÇËÅÊÔÑÏÍÉÊÇ ÓÅËÉÄÏÐÏÉÇÓÇ: so that the country gets on a path of sustainable ÁËÖÁ - ÙÌÅÃÁ ÅÊÄÏÓÅÉÓ ÅÐÅ growth, ÖéëéêÞò Åôáéñåßáò 80 ×áëÜíäñé, ôçë 210 6841889 Creative Art Director: By Christos Staikouras, Head of Economic Μανώλη Ευαγγελία Policy Sector, MP, Nea Demokratia party – Former Alternate Minister of Finance ÅÊÔÕÐÙÓÇ: Khartan Holding Limited 30. Start-up support is at the heart of a synergy between the Region of Attica and the ACCI, By Rena Dourou, Regional Governor of Attica Tradecontents with Greece ACCI ACTIVITIES 86. What has changed in the Greek 35. ACCI President to Greek-American pension system businesspeople:come invest in Greece By Kostas Katikos * ACCI President in the European ENERGY Parliament: A strong business alliance to 96. Developments in the Greek end austerity energy market * ACCI President invites outgoing US President By Christos Colonas Barack Obama * ACCI President meets the German Minister of PUBLIC WORKS Economy and Energy 104. Major public work projects: one final step to go *Strategic Partnership between Harvard By Panayotis Efthimiades University and ACCI *Investing in Youth Entrepreneurship TOURISM 112. Live your myth in Greece Why you should visit the cradle of ECONOMY civilisation at least once in your life 46. Despite uncertainty, the economy is bouncing back By Alexandra Gitsi By Nikos Filippidis CULTURE 54. Greek market set for growth 120. Athens Festival 2017- Stavros By Dimitris Christoulias Niarchos Foundation Cultural Center- Onassis Cultural Centre 60. Privatisations: Moving forward By Nicoleta Makri By Nectarios V. Notis STATISTICS 66. Non-performing loans: A major bet for the Greek 130. By Anna Diana economy By George Mandelas 72. Export growth will be sustained in 2017 By Evi Papadosifakis 80. Dimitris Avramopoulos: “Europe will only be able to address the migratory challenges successfully if we all work together” By Dimitris Giannakopoulos ATHENS INTERNATIONAL AIRPORT “ELEFTHERIOS VENIZELOS” The Athens International Airport “Eleftherios Venizelos”, one of the most modern and functional airports in the world, opened on March 28th, 2001, marking the onset of a new era for air transport in Greece. “Athens International Airport S.A.” (AIA) was established in 1996 as a PublicPrivate Partnership with a 30year B.O.O.T. (BuildOwn OperateTransfer) concession to build and operate the airport. AIA is a privately managed company, with the Greek State holding 55% of its shares, while private shareholders collectively hold 45%, and has undertaken successfully a series of very important roles, i.e.