Expanding opportunities for a business hub

The Athens Stock Exchange is committed to acting as the main lever of growth for the Greek economy by enhancing market transparency and safeguarding investors

The importance of Greece as a hub that connects Western Europe, Eastern Europe, the Middle East, and Africa will likely shape the foreseeable future of the country both politically and economically. The nation’s ongoing investments in infrastructure have already opened up previously unavailable markets, as well as consolidating its position as a transport hub in the region.

In addition to political and economic cooperation within the EU and its NATO membership, the focus of Greek foreign policy has been for some time on strengthening the economies of its Southeastern European neighbors and on improving its relations with Turkey. As a result, Greece has had a strong stabilizing influence in Southeastern Europe, converting the nation into a valuable ally for the United States. Greece also strongly supports the integration of the Balkan states in existing European structures.

During its recent EU presidency, Greece championed the cause of various Southeastern European nations in their bids for EU membership. Minister of Foreign Affairs, Mr. George Papandreou, states, “I feel that is it both our obligation and in our interest to help our neighboring countries overcome the problems of the past and become part of the EU.”

On the economic side, Greece wishes to further strengthen its already leading role in the economic development of the Balkan region and plans on boosting regional support. Private Greek investment in the region is also on the rise. Increasing numbers of Greek companies have moved into the region, attracted by the size of the market and by the potential for growth over the next decade and more. The low-inflation, high-growth pattern of today's Greek economy has provided these companies with a solid base from which to reach out to foreign partners and markets. Total Greek investment in the region is currently estimated at about $2.5 billion, making Greece one of the largest sources of foreign investment in the area. This figure reflects small investments by over 3,000 flourishing joint ventures established to promote cross-border trade in addition to more substantial amounts spent on acquiring and modernizing manufacturing plants. Greece's most important financial institutions all have operations throughout the Balkans. The biggest single investments have been made by OTE, Greece's public telecom operator, which aims to become the region's leading operator of both fixed-wire and mobile services.

At present, almost 20% of Greek trade is with the Balkan countries, and Western pressure for the removal of tariff barriers across the region should result in even larger trade flows, while the launch of the Balkan Stability Pact is expected to reduce the political risks of doing business in the area. Greek companies are eager to see the international community participate in rebuilding the region, and organizations such as the IMF are leading the way with broader financial support.

The strategic aim of the larger Greek companies is to become key regional players in specific sectors. Telecommunications is currently one of the leading industries in the regional investment trend. In the near future, however, Greek manufacturing companies are expected to lead the investment drive as they seek to lower costs and expand their markets. Greece is also expected to become the leading provider of financial services as Greek-owned banks expand their branch networks and offer new products to small and medium-sized businesses and retail clients.

It is very likely that Greece will also become a regional communications and IT hub. As testimony, Greece will be hosting the international ICT 2004 conference, which is the leading global event on IT. In addition, Demokritos, the Center for Scientific Research, is financing and investigating IT projects that will involve the participation of many countries in Southeastern Europe and is also working on creating agreements between Greek and leading U.S. universities for the exchange of technical know-how.

Finally, and perhaps most obviously, Greece’s geographical position and the investment the country is making in transport infrastructure give the country an invaluable advantage as a communications link between Eastern and Western Europe. The Egnatia Highway project in northern Greece, when finished, will connect the country to Albania, the FYROM, Bulgaria, and Turkey, as well as providing improved communication with the countries of the Black Sea and the Middle East, while the Rio-Antirio Bridge project on the western side of the country will serve as Greece’s main gateway to Western Europe.