A
fter many months of hard work, tough
decisions and even tougher criticism, not
only have these fears been abated, but
Greece has the fifth lowest deficit in the euro zone
and is ready to announce a primary surplus at the
end of this year. This did not come without a toll:
the grave social cost brought about by the sacri-
fices of the Greek people, who saw their income
drop by at least 25% and their standard of living
by even more. Our efforts are basically aimed at
restoring Greece’s lost competitiveness. A multi-
tude of long-needed structural reforms in the
labour market, social welfare and the market at
large are pursued, so as to put Greece back on
the radar of potential investors. The government I
serve has significantly cut down on red tape, by
introducing a simplified licensing system for busi-
nesses. Institutions as the Investor Ombudsman,
the fast-track for strategic investments and the
Central Licensing Authority for the accommoda-
tion of foreign investors, which is scheduled to be
operational soon, are tangible achievements
expected to make a difference in the middle run.
The Hellenic Investment Fund, to which the
Greek government will contribute 350 million
euros, is yet another initiative in the same direc-
tion. The very fact that Germany’s KfW fund has
agreed to participate with 100 million euros,
together with institutions such as the Onassis
Foundation, is sufficient proof of our partners’
trust –not to mention, of course, the badly need-
ed liquidity the Fund is expected to provide the
market with.
In the domestic front, and closer to consumers,
we collaborated with the OECD, whose
Toolkit
was employed to chart the market, identify its
weaknesses and propose remedies for the
numerous distortions that kept –and still keep–
consumer prices much higher than the recession
would justify, in four key sectors: the food indus-
try, construction, retail and tourism. We shall very
soon bring to Parliament a bill intended to elimi-
nate barriers to entry, liberalise protected profes-
sions and boost competition.
In this context the imminent Greek Presidency of
the Council of the European Union constitutes a
major opportunity for our country to show our
partners that Greece is not only synonymous to
Trade with Greece
22
The Tide is Turning
By Kostis Hatzidakis,
Minister of Development and Competitiveness
Just over a year ago, in the wake of the
agreement reached with our Eurogroup
partners and the IMF that precluded the
so-called “Grexit”, fears still ran high as to
whether Greece would make it.
