To support SMEs and the restart of the real economy in Greece, European Commission Vice President Antonio Tajani travels accompanied by representatives of more than 138 European companies.

 

The EU companies will meet and talk with 413 Greek SME owners and managers about collaborations and trade partnerships, investment, and joint undertakings.

Central to their visit will be a business to business networking event, to reinforce partnerships and help the EU’s industry and SMEs fully exploit the potential for commercial relations with Greece. The aim is to promote business opportunities (B2B) for partnerships and investment in Greece in the areas of agri-Food/Food Processing, construction and Materials and Key Enabling Technologies, energy, information Communications Technology, pharmaceuticals/Health Sciences, tourism. Vice President Tajani is keen to help Greek SMEs overcome current difficulties, realise their potential and contribute to the recovery of the Greek economy, especially given the unused potential of SMEs at this time. He said: “Together with the Hellenic Ministry of Development and Ministry of Tourism we will focus mainly on areas identified as the backbone of the Greek economy. This B2B conference is a great opportunity to strengthen the links between companies from Greece and other European countries and to exploit the underused business potential that currently exists in the European economy.”

First positive effects of help measures

SMEs in Greece have experienced quite some difficulties in the past few years. However, recent supportive actions and reforms implemented by the Greek government are starting to have positive effects on SMEs and improve economic conditions, as shown by the following developments:

Reform the Greek labour market

Significant action has already been taken to reform the Greek labour market, and further efforts are being made. The perceptible downward pressure on wages reflects a long-overdue reaction to high unemployment – which in turn resulted from rigid wages which were often substantially out of line with worker productivity – and to the severity of the recession. This correction was eventually possible thanks to the extensive labour market reforms taken earlier in 2012, which created more opportunities for firm-level agreements, a limitation of the ‘after-effects’ on pay after the expiration of collective agreements, and reductions in minimum wages.

Greek exports to continue growing in 2013‏

Greek exports are expected to continue growing for the fourth consecutive year in 2013, rising by up to 10%. In 2012 Greek exports already grew by 10% to €24.5bn, exceeding initial forecasts and breaking 2011’s record of €20bn. The export/import rate fell to 1.8 in 2012, a sharp fall compared with previous years. If this trend is combined with a stronger shift towards Greek products, then the benefit for the country’s trade balance would be huge. He said that the Foreign Trade Board planned more than 60 initiatives for this year, of which 52 were participations in international trade fairs and 13 business delegations, despite the fact that funding has been drastically cut.

Tourism industry says early 2013 bookings up to 20% higher to date

The tourism industry remained a strong supporter of the Greek economy after achieving its targets of attracting 16 million international arrivals and €10bn in tourism receipts last year. The messages received so far for tourism trends this year are optimistic, with a 20% increase in bookings from the UK, a 15% rise in bookings from Germany, France and Scandinavia and a more than 20% increase in bookings for developing countries, such as Russia, Ukraine, Israel and Turkey, among others.

The business environment is improving

According to the recent World Bank report on doing business in Greece, the country has improved its ranking from 89 to 78 and now belongs to the top ten reformers worldwide. Further reforms are under preparation, supported by technical assistance from the European Commission Task Force, the OECD, the Word Bank and others. These include covering export facilitation, simplification and acceleration of licencing procedures, reduction of administrative burden and improved public procurement.