STABILITY PACKED / BUSINESS ADVISORY COUNCIL
(10th Anniversary) THESSALONIKI
Dear Ministers, Dear Friends,
It is ten years since the Business Advisory Council for S. Eastern Europe was established
Ten years ago the countries in our region were striving to find the right path to prosperity and were to a large extent introvert - looking inside rather than outside.
Today, most countries have moved ahead. They have traveled a very long way:
- with massive privatizations
- lowering of tax rates
- creating a pro-business environment
- opening up their markets
- believing and supporting the private sector and private property
As a result, growth rates have increased from rather stagnant rates to 6%, 7%, 8% p.a. - steadily converging with European Union income levels. The standard of living is steadily rising.
Countries in our neighborhood are progressing day-by-day, steadily, and share some common beliefs, some common denominators:
- Freedom
- Democracy
- Open and more competitive markets
- Believing in Europe and what Europe stands for.
- Democracy
- Rule of law
- Pluralism
- Tolerance of differences
- Competition and Meritocracy
Three weeks ago, I was at the European Union’s Conference of Ministers for International Development. The issues that were of concern to our colleagues were the following:
- High Petroleum prices: Almost half of the available petroleum has already been extracted while global demand continues to rise. Petroleum prices will remain at very high levels and eventually rise further.
- The dollar / euro exchange rate: the weak dollar is hindering European exports and European competitiveness
- China’s undervalued currency, export boom and trade surpluses
- Climate change: deterioration rates are alarming! Much more needs to be done. “Green business will be good business”!
- The Sub-Prime credit problems which are estimated to require write-offs of over $400 billion. (details followed)
I will not talk much about the Greek economy and its performance and challenges.
a) our GDP growth rate at 4,4% is the highest in the euro-area
b) our budget deficits have been reduced from 7,8% of GDP in 2004 to under 3% in 2006
c) unemployment has been reduced from over 12% to under 8% currently
d) corporate tax rates have been lowered to 25%
e) rates of investments exceed 10% p.a.
f) the stock-market index has doubled since 2002
g) we have become a regional energy center with the Caspian–Turkey - Greece-Italy-natural gas pipeline and the Burgas-Alexandroupoli oil pipeline
Greece in the Region
We feel that it is both our moral and historical obligation and also in our best interest to help our region prosper.
a) Greek companies have invested more than 14 bill. euro in the region and have contributed its supporting over 200.000 jobs
b) Our Balkan Reconstruction Plan has a budget of 520 mill. euro of which already about 220 mill. have been “encumbered”.
c) We are supporting our S.E. European neighbors through our
“Hellenic Aid” humanitarian aid program and by financially supporting the activities of NGOs in the region.
d) But most importantly, Greece being the only country in the area that is a full member of the eurozone, we are proactively supporting our neighbors’ efforts to become full members of the European Union.
Opportunities and Challenges
There are a lot of challenges and opportunities ahead of us: for example, road, railroad and airline connections are still very backward and it is difficult for residents and businessmen to travel to and from. Airline connections are minimal. But there are also plenty of opportunities:
· in Energy and Alternative Energy developments
· in Electricity production cooperation
· in Banking
· in Shipping – and Shipbuilding
· in Tourism
· in developing our Stock and Capital markets
· in Food, Agribusiness and fish farming
· in Construction and public works
· in Cement
· in Metals and Mining
· in information technologies
We strongly support all regional co-operation efforts. The Thessaloniki Agenda for the Western Balkans at the close of the Greek Presidency of the E.U. was a major step in that direction.
· Bulgaria and Romania have already joined the E.U.
· Croatia is moving rapidly in its accession report and other countries have either signed Stabilization and Association Agreements, or are moving rapidly in that direction.
· Turkey is preparing to follow and Greece supports its efforts.
We are also establishing the Regional Development Center in Thessaloniki to provide the best communication and advisory network between businesses and businessmen, the RCC and all the task forces and organizations that can help the region! The center will help provide intelligence on regional financing and support programs by the EIB, EBRD, IFC, the World Bank, the EU, the EU Neighborhood Program, the Black Sea Development Bank, SECI-PRO, etc. The Greek Government will finance the first two years of the Centre.
Dear Friends,
We are proud of our neighborhood and of what is going on in S.E. Europe.
We want to help the region grow. We feel it is our moral and historical obligation. We believe it is in the best interest of our people.
Congratulation to all of you for what you have achieved so far, and best wishes for the following 40 years of close cooperation and progress.
