60 years of AMCHAMS in EUROPE
PRESIDENTS ROUNDTABLE DISCUSSION
Hyatt Athens Hotel
28/9/2023 16.30-16.40
Our vision for Greece growth in the globalized economy
Honorable U.S. Ambassador to the Hellenic Republic, Mr. George Tsunis,
Esteemed Presidents of AmChams in Europe,
Distinguished members of the business community and guests,
Ladies and Gentlemen,
I would like to wholeheartedly welcome you all to Athens! Welcome, my friends, - it is a pleasure and an honor for our country to host the annual Best Practice Sharing Conference.
Moreover, warm congratulations to the Greek AmCham for co-organizing and hosting this event. It is truly commendable to see the successful bringing together of influential minds, distinguished experts, and business pioneers.
Over the past 60 years, strong transatlantic partnerships have been formed based on common values, shared principles, and mutual interests. Tonight, at the Acropolis Museum, we will celebrate 6 decades of economic growth and great accomplishments of the AmChams network in Europe. As growth and prosperity go hand in hand with stability, I want to express our commitment to preserving this stability while promoting peace in Europe, especially in the light of Russia’s war of choice against Ukraine.
Before I proceed to talk about our vision for Greece’s growth in the globalized economy, do allow me to make a very brief historical comment regarding the city of Athens.
You are all familiar with Athens as the birthplace of democracy, as well as a center of education, philosophy and theater. However, in addition to being an intellectual center, Athens was also a strong economic powerhouse. It was situated in a favorable geographical location, with access to major trade routes, and had a thriving agricultural sector, skilled craftsmanship, and production of coins, that was so essential at this moment in time. As a result, Athens was a prosperous city with a thriving economy.
Thucydides, the historian of the Peloponnesian civil war, quotes Pericles, the leader of the city, who highlights the city’s prosperity by stating: “Our dominion is so extensive that we can acquire goods from all over the world, and thus we enjoy foreign goods as much as our own”. So, Athens maintained a dominant position in international trade and successfully became a commercial hub, facilitating the movement of goods and ideas.
Ladies and Gentlemen,
In a peculiar way, Modern Greece follows its ancient footsteps in becoming a key digital, energy and trade hub in South Eastern Europe. Let me explain:
In recent years, Greece has gone through a profound economic transformation, reorienting itself to global markets, welcoming record foreign investment and achieving continuous export growth. To give you an example, bilateral economic and trade relations between Greece and the United States have been steadily evolving. In 2022, our bilateral trade volume increased by 86.68% reaching almost 5.7 billion Euros.
Currently, Greece is embracing innovation, with a national strategy for sustainable development through the green and digital transformation of the economy, which involves investments in the billions of Euros. Notable progress has been made in research, technology, digital applications, cloud services, and in the protection of intellectual property rights. Furthermore, the Greek start-up ecosystem has grown by leaps and bounds. Greece’s emergence as a regional hub for Innovation and Technology has garnered increasing attention from both European and American venture capitals.
The US remains a significant investor in Greece, ranking 8th in Foreign Direct Investment (FDI) flows in 2022. Tech giants, such as Google, Microsoft, and Amazon Web Services have submitted investment plans to establish regional cloud computing hubs in the country. This means that Greece will soon be one of the few countries outside North America to host all three leading cloud computing companies. This achievement will benefit not only Greece but also the entire SEE region.
Additionally, CISCO has established an International Center for Digital Transformation Acceleration in Thessaloniki, dedicated to developing practical solutions for startups, academic institutions, and research organizations. Pfizer has also chosen Thessaloniki as the location of its Global Business Services Hub and Center for Digital Innovation, one of only six worldwide. International consulting firms like Deloitte and Accenture have set up competence centers to serve as hubs for the development of next-generation innovation. Furthermore, Greek startups have been acquired by US giants, such as JP Morgan’s acquisition of fintech Viva Wallet and Meta Platforms’ acquisition of Accusonus.
It is evident that Greece is on the path of digital transformation. To strengthen our capacity and foster the innovation ecosystem, we encourage additional investments on infrastructure, like data centers, networks, and R&D centers.
In the hot field of energy, it is no secret that Greece is steadily becoming the South Eastern Europe hub, serving as an entry for gas imports. Major North-South and East-West energy corridors are being designed and built, both on land and at sea, to support the EU's efforts to reduce reliance on Russian energy sources and ensure diversification of sources, routes, and supplies.
I would like to emphasize the crucial role played by the Revithoussa LNG Terminal, which serves as key energy infrastructure in Greece. It provides operational flexibility in the transmission system and increased capacity to meet the gas demand. Furthermore, with the completion of the Greece – Bulgaria Interconnector (IGB), and the upcoming operation of the first Greek Floating Storage Regasification Unit (FSRU) in Alexandroupolis in January 2024, energy stability will be restored in the region. Western Balkans, Ukraine, and Moldova will feel secure regarding energy supply, as natural gas will flow from North to South and from South to North.
In addition to being a major energy corridor, Greece aims to become a prosumer and exporter of green electricity generated from Renewable Energy Sources (RES). In May 2023, our country achieved a historically high percentage of 54% electricity generation from RES and is on track to meet the national target of 80% electricity from RES by 2027. To this end, the inauguration of the largest photovoltaic park in South East Europe, located in Kozani in Northern Greece, is of great significance as it produces energy for 75.000 households.
Ladies and gentlemen,
The rapid advancement in the adoption of renewable energy presents numerous investment prospects, some of which have provided an opportunity to leapfrog into a fresh model that may become a lighthouse for the world! Allow me to provide an exemplary case of innovation and investment in new technologies: The Astypalea “Smart and Sustainable Island” project. This project aims to transition the island to complete energy autonomy through the use of hybrid energy technologies, electromobility, 24-hour shared services of e-vehicles, public transportation on demand, and infrastructure for testing of autonomous driving. Fully supported by the Volkswagen Group and the Greek Government, Astypalea is the first green and smart island in the entire Mediterranean!
Thereinafter, we have implemented an integrated strategy for Clean Energy Islands called “GR-ECO Islands”. Greece is at the forefront of implementing a policy for the decarbonization of its islands, taking into account relevant EU initiatives, such as Clean Energy for EU Islands. Furthermore, we are collaborating with the US at the International Maritime Organization to accelerate the decarbonization of the shipping sector by 2050 at the latest.
On the topic of the shipping sector, I would like to acknowledge the investment agreement for the revitalization of Elefsina Shipyards by ONNEX and Fincantieri Group with the financial participation of US International Development Finance Corporation (DFC). This strategic alliance between Greece and the US, opens the door for further discussions of DFC’s involvement in privatization schemes for key ports and infrastructure projects.
Transport infrastructure projects play a crucial role in bringing countries, peoples, and economies closer together. Therefore, we are currently engaged in the construction of a railway network that will connect Thessaloniki, Kavala, Alexandroupolis, Burgas, Varna, and Russe, and turn those ports into important trade hubs for the entire region. It is important to note that it is not only the ports themselves, but also the dry ports that provide comprehensive solutions to transportation, logistics and supply chain. With EU priorities in mind, we strongly support investments and collaborations in the field of transport and logistics along the commercial axis from north to south, from west to east. The recent G20 announcement of the trade corridor linking Europe with the Middle East and India, through shipping ports and rail routes, which President Bidden referred to as a “game-changing investment”, presents excellent partnership opportunities.
In addition to goods, ports also welcome people. We are excited to witness the return of tourism flows after the pandemic. We have had the pleasure of welcoming a significant number of tourists who have chosen to visit Greece for its islands, historical sites, gastronomical and cultural experiences. In 2022, arrivals from the US reached 4.5 million visitors recording a rebound of 312% against 2021. We eagerly anticipate welcoming more American visitors throughout the year. To this end, the strategic agreement between the Ministry of Tourism and US air carriers for operating more than 63 direct flights from New York, San Francisco and Boston as early as March will contribute to achieving even better results. Additionally, we highly encourage entrepreneurs to consider investing in property acquisition and hotel development in Greece.
Ladies and gentlemen,
I believe it is evident that Greece requires synergies and investments to establish itself as a leading digital, energy, and trade hub in South Eastern Europe.
To facilitate this process, we have implemented various effective tools, including:
• The National Recovery and Resilience Fund “Greece 2.0”, which promotes private investments on innovation, green economy, and digital transition.
• The new National Strategic Reference Framework 2021-2027, which includes a significant EU contribution to enhance the economy’s productive potential, infrastructure, human skills, and social protection.
• The Strategic Investments Schemes, which have flexible legislation to create a reliable environment for Foreign Direct Investment (FDI) projects.
• The current Development Law, which grants incentives to smaller scale investments.
• The digital transformation of public administration through the government’s platform (gov.gr), which offers more than 1,500 e-government services to businesses and individuals alike. This simplifies and speeds up bureaucratic procedures that were previously time-consuming and complex.
These measures are intended to simplify and promote the development of Greece as a significant hub in the region. Another important aspect of the Greek strategy is regional cooperation. As part of Greece’s National Extroversion Strategy, we are engaging in bilateral and multilateral initiatives with neighboring countries in the Western Balkans, partner countries in the Middle East and North Africa, and influential countries outside of South Eastern Europe, such as the U.S., Germany, China, and India.
Dear friends,
Despite the challenging circumstances of profound and unprecedented changes, such as the climate crisis and Russia’s invasion of Ukraine, I am pleased to announce that in early September, DBRS upgraded Greece’s credit rating to investment grade status. This recognition acknowledges that, despite the difficult economic conditions in 2022, the Greek economy has demonstrated an impressive track record. Earlier this year, Japan’s R&I and Germany’s Scope Ratings also restored Greece to investment grade. Furthermore, two weeks ago, Moody’s ratings agency provided a substantial vote of confidence in our economy, by upgrading the Greek credit rating by two notches.
In closing, I am highly optimistic about the business landscape in Greece, Europe, and the US. I have full confidence that the lively discussions, innovative workshops, and thought provoking meetings will shed light on the ever-evolving role of the American Chambers of Commerce in the contemporary global economy on both sides of the Atlantic.
Thank you and enjoy your stay in Athens!
28 Σεπτεμβρίου, 2023