Showcasing a mastery of change
WHAT A DIFFERENCE A DECADE MAKES - INNOVATION IS THE WATCHWORD AS ECONOMIC GROWTH OVERTAKES EVERY OTHER COUNTRY IN EUROPE

THE CLASSICAL ruins that dominate the landscape highlight the rich history of this south-east European state. In the past decade, however, the Greeks have shown that they are the new masters of change, transforming their classical country into a showcase of modernity and innovation. Arrivals at the new state-of-the-art Athens International Airport will see just how far the country has come.
What a difference a decade makes. The verve and energy of the reformists in government and the civil service has been inspiring and reflects the confidence in the economy.
“In 2004, Greece will be a totally different country,” predicts George Zanias, Secretary-General at the Ministry of Finance. “Most of the infrastructure projects will be completed by then, and Athens will be a different city,” says Mr. Zanias.

The country is expected to post growth two-and-a-half times faster than the EU average, a measure of the hard work put in over the last few years.
High growth rates can be attributed also to the decline in interest rates, that resulted in a significant increase in business loans. Inflation is falling, as is unemployment, expected to drop below 10 percent during 2003.
Key bottlenecks have been reduced in the economy, including bureaucracy, inadequate infrastructure and an opposition towards entrepreneurs. There is greater transparency at all levels, in the public and private sectors, and the capital market is thriving. The country is also experiencing its biggest investment program ever in collaboration with the EU.

Mr. Zanias says that this means potential for U.S. investors in areas such as telecommunications, energy and tourism. “Wherever there are changes, there are opportunities,” he says.
In the tourism industry huge efforts have been made to improve facilities in time for the Olympics in 2004 and liberalization has opened the door for large-scale investments from abroad. “So many tourist properties were owned by the state,” he says. “All that is finished. Now, all these properties are given to the private sector to be renovated and ready for the Olympics. Even the marinas are being sold.”
There are plans to develop Greece as a major European convention hub, as well as a center for spa and health holidays.

AKIS TSOCHADZOPOULOS Minister for Development

Many of these investment opportunities fall under the remit of the Ministry for Development, which broadly looks after areas such as energy, tourism and technology. It is coordinating all of these elements, and others, to enhance the prospects for long-term, sustainable development.
Akis Tsochadzopoulos, the Minister for Development, says that the liberalization of the Greek energy market will throw up a whole range of opportunities for foreign investors, especially in the field of electricity production. This area is being gradually opened up in line with European directives.
“We have about 10 proposals at the moment from prospective private producers,” he says. “We have created the right framework. I hope in the second half of this year investors will begin to build the energy plants that we need.”
Mr. Tsochadzopoulos says the country’s transformation is taking shape on many fronts – economic, social, cultural and environmental. In all these areas, there have been marked signs of improvement in recent years. He says the combination of all these elements will be needed to make Greece competitive in the new Europe.

YANNIS CALOGHIROU General Secretary for Industry

Traditional industries like shipping, manufacturing and tourism remain just as important, but there is a new focus on knowledge-driven business and information technology. As well as restructuring old industries, there is also a commitment to encourage smaller businesses and new entrepreneurs. These are the Greek tycoons of the future.
Yannis Caloghirou, General Secretary for Industry at the Ministry for Development, says that the emphasis on change and development in recent years has altered the mind-set of policy-makers in Greece and indeed ordinary Greek people.
“There is a new era regarding the way that Greece is facing the outside world,” he says. “It is more self-confident, it has better economic fundamentals.”
Forget the past. Greece is ready to play its role in the future of the EU and take its place on the world stage once again.