Transforming the Greek economy into an emerging opportunity for domestic and foreign investors with a medium-term investment horizon is feasible, according to the President of the Greek Banking Union (EET) and Eurobank Nikos Karamouzis.
A study published in the Eurobank edition: “Economy & Markets”, titled “From a Vicious to a Virtuous Circle? Turning Greece into an attractive investment destination: Opportunities and Challenges” identifies and analyzes fifteen (15) key factors that can make Greece an attractive investment destination, particularly for foreign direct investments and other inflows of foreign capital, thus allowing Greece to definitively turn its page and move from a vicious to a virtuous circle of growth, employment and prosperity.
However, this objective requires a higher degree of commitment to the reforms implemented ("ownership" as the study called it) , greater commitment to the disengagement of the economy from past ills and the implementation of a more sustainable and extroverted growth model, with ab aim towards investment and export growth, according to Mr Karamouzis.
In his study "From a Vicious to a Virtuous Circle? Turning Greece into an attractive investment destination: opportunities and challenges, he "stresses that the effort that will be made will have to convince international markets of the sincerity of our intention to liberate the domestic market from the shackles and fetters of the past and [convince them] of the developmental prospects of our country."
This is because, according to the Eurobank chairman, despite the considerable macroeconomic adjustment and the large number of structural reforms that have been carried out to date, the lack of credibility and confidence in the country's economic policy and development prospects remains significant.
It is characteristic that wage costs have returned to the levels of 2001, and despite the improved competitiveness there is no corresponding response from the investment community.
However, direct foreign investment has not yet reached pre-crisis levels. Mr Karamouzis argues that the country needs around EUR 80 billion of net investment (after depreciation and inter-sectoral movements) at constant 2010 prices, in order just to return to 2010 levels. Given the inadequacy of domestic savings, the investment deficit can be largely met with large-scale inflows of investment and capital from abroad.