DIAMONDS OF THE GREEK ECONOMY 2016
MP and Vice-President of the New Democracy party
Kostis Hatzidakis
Towards a business-friendly Greek economy
“Our main focus must be placed on improving the business climate and Apostolos Vakakis attracting private Turnover 454.276.468 investment” PROFIT BEFORE TAXES 96.956.097
14 Diamonds
It should go without saying that, if we are serious about helping Greece return to a path of growth and job creation, our main focus must be placed on improving the business climate and attracting private investment. In order to achieve this, one fundamental condition needs to be met: Our country must regain its credibility after a year and a half of unprecedented uncertainty which caused the economy to slide back into recession after having returned to positive growth rates in 2014. While the aforementioned prerequisite is arguably the most fundamental, it is not the only one. First of all, it is imperative that the economy’s liquidity levels are restored. This has to do primarily with the return of financial market confidence which will allow the banking sector to function smoothly after having gone through a challenging period. Additional tools for funding businesses are also needed, such as the Institution for Growth in Greece which was established in 2014. A stable tax system is another important requirement, so that investors are not faced with the uncertainty of having the rules of
the game suddenly changed. Furthermore, promoting a more businessfriendly environment is critical. This requires simplifying bureaucratic processes related to starting and running a business. The previous government had taken important steps towards this direction, as demonstrated by the country’s steep rise in the ‘Doing Business’ rankings. The goal should be to build upon this progress without further delays. Finally, initiatives that attract and leverage private investment must be pursued, such as public–private partnerships. This allows for the implementation of large-scale projects that upgrade the country’s infrastructure and consequently enhance its competitiveness by making effective use of private sector funds and know-how. It is a commonly acknowledged fact that Greece has a broad range of competitive advantages that hold the potential to contribute towards increased productivity and economic expansion. Policy-makers need to prioritize the necessary interventions that will help unlock this potential and propel the Greek economy into an era of strong, sustainable growth.