By Vaso Begiri
[email protected]

The President of the Greek Exporters Association (SEVE), Dr George Konstantopoulos, has highlighted the need to take concrete measures to support exporting businesses and immediately implement the government’s announcements for boosting production and extroversion.

Export statistics from the first semester indicate a rise in exports, but a very small one – smaller than expected, as noted by the SEVE President – and, on the other hand, a sharp rise in imports, higher than expected. This demonstrates that the Greek citizens have returned to their pre-crisis obsession for anything foreign, even for products with Greek equivalents available that are not just on par with imported ones, but even better in terms of quality. “We are obviously returning to out bad habits as a country,” noted Mr. Konstantopoulos. Meanwhile, a small drop in Greek exports to the USA has already been recorded as a natural consequence of the bad climate created by the two lists released by the US administration that contain European products it aims to impose additional tariffs on.

Within this tough international climate, “a rise in exports”, as stressed by the SEVE President, “cannot be achieved either with a magic wand or with wishful thinking. Substantial support measures are needed for exporting businesses. In the years of crisis the exporting businesses have been shouldering the burden to help increase the country’s exports at the expense of their profits. So, in an effort to keep their prices steady on foreign shelves, they decreased their profits, while the production costs for all products were on a continuous rise. However, they cannot cope with this any longer”.

“It is promising that the tax rate is immediately dropping from 28% to 24% and dividend tax from 10% to 5%, while the social solidarity tax is also being reduced. All these make up a significant rate, which will give a significant breather. If banks follow at the same pace, meaning they start offering loans at more competitive interest rates, I think we will have taken a significant step forward”.

“Another significant step for exporters is that, for the first time, the office of Deputy Minister for Economic Diplomacy and Extroversion has been established, with Kostas Fragogiannis as the competent Deputy Minister. Both Mr Fragogiannis and Mr Grigoris Dimitriadis, the new Secretary General of International Economic Relations and Extroversion of the Ministry of Foreign Affairs, have extensive experience in exports. Enterprise Greece, the Export Credit Insurance Organization and other bodies have been incorporated into the Ministry of Foreign Affairs. So all agencies are gathered together; there is now a one-stop shop for exports, a fact which helps. I think that the first samples from the new government are surely positive and are pointing towards a positive rise in exports”.

“Unfortunately, we have hit a rough patch, especially with the Trump administration measures in the USA, which I’m
afraid will also have an adverse impact and chain reactions in Greece and in all the European countries, of course.”

Macedonian Brand Name

SEVE has been especially focusing on creating a brand name for Macedonian products, which, as noted by its Administration, must be protected from the international competition and the potential consequences of the Prespa Agreement.

As noted by the SEVE President, this Agreement must be enforced in the neighbouring country also for legal persons governed by private law, especially by its Chambers, which continue to bear the “Macedonian” qualifier in their name, with the excuse that they are not state-funded. However, there is a clear relationship between them and the state, as noted by SEVE, since they were established pursuant to a law issued by the neighbouring country and, consequently, they must change their name.

In this context, SEVE, in partnership with the Region of Central Macedonia, have gone into a dynamic “counterattack” by organising large missions to large international expos abroad with the brand name “Macedonia” and with Macedonian businesses and products participating. This was for instance the case with Fancy Food in the USA, which resulted in the disappearance of the North Macedonia participation. To this end, SEVE has submitted a specific proposal to the government for the creation of a body – preferably a legal person governed by private law, e.g. ‘ENTERPRISE MACEDONIA’ – comprising by the Greek Exporters Association, the Federation of Industries of Greece, the Thessaloniki Chamber of Commerce
and Industry and the three Macedonian Regions (Central Macedonia, West Macedonia and East Macedonia-Thrace). “I think this could essentially be a checkmate move because we are fighting in international arenas. There may be objections on the part of Enterprise Greece, but the national issue takes precedence and we saw what we can achieve after the Fancy Food experience. Just imagine what can happen if we were to arrive at SEAL, ANUGA or the other major expos, as ‘ENTERPRISE MACEDONIA’ and with our recognised and internationally acclaimed Macedonian companies and products.”

The government seems to be eyeing the proposal positively, while, on their part, both SEVE and the Region of Central Macedonia are fully prepared to immediately rent out exhibition areas and organise the participation of Macedonian companies. “We are fighting in the international arena and we are winning,” said Mr Konstantopoulos. 

Zones

According to SEVE, another two significant steps towards boosting the extroversion of businesses and the country in general are:

• Conceding land to the American Farm School with a surface area of around 76 hectares, so that the International Technology and Innovation Park in Thessaloniki can become a reality (note: according to the plans of the Alexander Innovation Zone (AIZ), the aim is to construct an International Technology and Innovation Park in this area, as well as all the necessary building, technical and technological infrastructure and installations that would ensure the efficient operation of the Park as the supportive / administrative structure of the AIZ).
• Establishing an International Trade Zone in Thessaloniki which will provide a renewed boost to exporting businesses in Northern Greece and bordering countries. According to a relevant proposal by Federation of Industries of Greece and Greek Exporters Association, this zone can be established at the Gonos military camp in Menemeni. A relevant proposal has been submitted to the Ministry of Development and Investments. The Ministry replied that the legal basis will be examined according to EU legislation, so developments are expected soon. However, according to the Northern Greek productive bodies, the same practice is already up and running both in Spain and in Italy.

India

According to the SEVE President, the choice of India as the honoured country at the 84th Thessaloniki International Fair is a great opportunity for laying the foundations for cooperation with this major market, where Greek businesses have a very weak exporting presence, with undetectable statistics. As Mr Konstantopoulos noted, “It is a country that consumes lots of dairy products. On the other hand, our dairy products, Greek yoghurt especially, are unrivalled.” According to SEVE, additional sectors that are suitable for boosting exports include construction materials and minerals.