transparency and security for strategic invest-
ments, as it accelerates the implementation
process for large-scale investment plans.
At this particular juncture, the country’s economic
fortunes are changing. The government is laying
the foundations for a more inclusive and sustain-
able growth, mitigating the social impact of
reforms. It is gradually creating a fiscal space for
the private sector and implementing policies that
stimulate investments and exports. Exports of
goods and services rebounded by 20% in con-
stant prices during the period 2009-2015, but
remained 2% below their 2008 level. As a result,
the degree of the Greek economy’s international-
isation has increased substantially since 2009.
Despite recent improvements, the remaining
structural barriers and administrative burdens
continue to constrain exports, and Greece’s inte-
gration in global value chains remains low, as a
result of insufficient investment in human and
knowledge-based capital and low inward FDI
(though FDI doubled in 2016, reaching record lev-
els since 2009).
Unit labour costs declined since the beginning of
the crisis, but exports response has been slow,
owing to liquidity restrictions for exporters and a
lack of investment in export industries.
Investments are therefore needed to support
exports and growth, and the opportunities are
plentiful.
Trade with Greece
13
OECD Toolkit III, the close of the year 2016 saw
the implementation of 186 out of 369 recommen-
dations, meeting the target as agreed with our
international creditors.
In the meantime, banking recapitalisation has
been successful. NPLs are being legally settled
and further legislation is enacted for an out-of-
court mechanism addressing the NPLs of SMEs.
The goal is to reduce NPLs by 40 billion by the
end of 2019. Once an agreement is reached
between Greece and its international creditors,
the Greek banking system will be eligible for par-
ticipation in the ECB’s quantitative easing pro-
gramme, contributing significantly in private
investment financing.
Moreover, a new Tax Law has been introduced,
establishing a simple, fair and stable tax system
for strategic investments that will remain in place
for twelve years, in addition to offering employ-
ment subsidies for new hires.
Once progress of fiscal consolidation is achieved,
the government intends to reduce the tax burden
(VAT, property taxes and/or social security contri-
butions) for the private sector.
At the same time, more privatisation projects
(sale/lease of the 14 regional airports, the nation-
al railways, etc.) and private-public agreements
are being implemented by upgrading their regula-
tory framework.
The Fast-Track law provides an environment of
