2. 2
Business Environment: Greece
Index
Abstract .......................................................................................................................................................5
Introduction..................................................................................................................................................6
Country Profile..........................................................................................................................................6
Business Environment..............................................................................................................................6
Starting a Business...............................................................................................................................6
Dealing with Construction Permits........................................................................................................6
Getting Electricity..................................................................................................................................7
Registering Property .............................................................................................................................7
Getting Credit........................................................................................................................................7
Protecting Investors ..............................................................................................................................8
Paying Taxes ........................................................................................................................................8
Trading Across Border..........................................................................................................................9
Enforcing Contracts...............................................................................................................................9
Resolving Insolvency ............................................................................................................................9
Work Culture in Greece..........................................................................................................................10
Working Practices...............................................................................................................................10
Structure and Hierarchy of Companies...............................................................................................10
Working Relationships ........................................................................................................................10
Business Practices..............................................................................................................................10
Business Etiquettes: Dos and Don’ts..................................................................................................11
Brief History of Greece and its Implications ...........................................................................................11
The History of the Classical Period.....................................................................................................11
The History of the Macedonian Period ...............................................................................................12
Political......................................................................................................................................................13
Current Political Environment.................................................................................................................13
Economic...................................................................................................................................................14
Technological ............................................................................................................................................15
3. 3
Business Environment: Greece
Intellectual Property Rights.....................................................................................................................15
Research Bodies Supervised by GSRT .................................................................................................15
Technological Bodies Supervised by GSRT ..........................................................................................16
Legal..........................................................................................................................................................17
The Constitutional Tradition....................................................................................................................17
European Community Law and the Greek legal order...........................................................................17
The Protection of Environment...............................................................................................................17
Social Justice..........................................................................................................................................17
Court structure........................................................................................................................................18
Environmental............................................................................................................................................19
Acid Rain.................................................................................................................................................19
Deforestation ..........................................................................................................................................19
Air Pollution.............................................................................................................................................19
Air Pollution.............................................................................................................................................19
Current Policies ......................................................................................................................................20
Recommendations ....................................................................................................................................21
Annexure...................................................................................................................................................22
Expenditures for social protection as a percentage of GDP ..................................................................22
Industrial production (manufacturing) in Greece (2009).........................................................................22
Largest Companies in Greek Economy..................................................................................................23
References................................................................................................................................................24
5. 5
Business Environment: Greece
Abstract
Having Europe’s oldest Neolithic settlements,
dated 7th
millennium BC, Greece is considered to
have nurtured the first advanced civilization in
Europe. Home to the great civilizations the
Minos, the Mycens and the Cyclads Greece gave
birth to the Western civilization in Athens during
the Classical period (6th
– 4th
centuries BC),
which is the most famous period in Greece’s
history worldwide. It was during this period in 5th
BC when all the facets of a rich and advanced
culture were developed in this city-state.
Democracy, rhetoric, music, drama and
philosophy all developed in Greece during this
period.
The Palace of Knossos was built in 7th
Millennium
BC and was inhabited for several thousand years
till it was destructed in 1375 BC. This was the
end of Minoan civilization. The ruins of this
colossal structure still remain.
The Parthenon was built in 447 BC and took 15
years to build. It was the largest monument built
completely from marble.
Games at Olympia, which were held in Olympia
during 8th
century BC to 4th
century AD, led to the
beginning of Olympics.
Mount Olympus is the highest mountain in
Greece. It has 52 peaks. Mythology has it Mount
Olympus was home to 12 Greek Gods and
created itself after the Gods defeated the Titans
in the Titan war.
World’s greatest thinkers and philosophers
Socrates, Plato and Aristotle belong to Greece.
Socrates was the father of modern Western
philosophies.
Plato, Socrates’ disciple, disliked democracy
and believed in equality of men and women.
Aristotle, Plato’s disciple, tutored Alexander
the Great and also gave theory of
moderation.
Alexander the Great invaded and won the
Persian Empire in 334 BC. He did not stop there
but continued his tryst with dominance and power
and became the ruler of all the regions and
territories till India. It was only after the death of
Alexander the Great in Babylon that this empire
torn apart.
Greece is home to the mythological characters
and their stories popular worldwide. The Greek
Gods and Goddesses such as Zeus, Hades,
Aphrodite, Apollo, Ares, Athena, Dionysus, Hera,
Hermes, and Poseidon are known everywhere
and are multi-million dollar assets for the movie
makers in Hollywood.
Sparta, the talk of the town, is the most recent
highlight from Greece with success of the
Hollywood movie 300. The movie also
showcases the historical connection between
Greece and Persia with the mythological
characters fighting for Sparta.
Greece has 1200 to 6000 islands varying
depending on the minimum size to take into
account. Around 170 of these are inhabited.
Greece also sports gigantic open air theatres as
a legacy from the past. The dramas performed by
masked artists are a traditional way of
entertainment.
Greece is the founding member of United Nations
(UN). It is a member of the European Union (EU)
and it also became a part of Euro in 2001. A
developed nation by all standards, Greece is a
high income economy ranking 21st
highest in
quality of life.
6. 6
Business Environment: Greece
Introduction
Known as the Hellenic Republic officially, Greece
is a country in South Eastern Europe.
Country Profile
Capital Athens
Area 132,000 sq km
Population 11 mn
Gini coefficient 33
Total nominal GDP USD 281 bn
Per capita nominal
GDP
USD 22,700
Old currency Drachma
Current currency Euro
Ethnicity Greek
Government Unitary parliamentary
constitutional republic
Current constitution 11th
Jun 1975
Languages Greek(99%, official);
Turkish
Religion Eastern Orthodox
Christianity
Business Environment
Business environment tells how easy or difficult is
it to start and run a new business. Following
parameters tell us about the business
environment in general:
Starting a business
Dealing with construction permits
Getting electricity
Registering property
Getting credit
Protecting investors
Paying taxes
Trading across borders
Enforcing contracts
Resolving insolvency
These parameters don’t remain static and change
in wake of changing scenario in world economics,
reforms and policies.
Starting a Business
Starting a business here involves 10 procedures
and it takes 10 days in all to complete these
procedures.
Paid-in minimum capital per capita, amount the
entrepreneur has to deposit in a bank or with a
notary before registering the business and is
calculated as a percentage of the nation’s per
capita income, is 22.8%.
Greece stands 135th
in the global scenario in ease
of staring business. The regional average of
developed OECD countries is 57. Greece has
shown improvement over 147th
rank it held in 2011.
Greece has maximum number of procedures as
compared to the regional average of OECD
countries. It also has the maximum paid up capital
requirement, and days required to start the
business.
Greece brought about following reforms to make it
easier to start a business:
2009 - The minimum capital requirement to
start a business was cut by 80%, reduced
capital tax and made publication of company
statutes quicker.
2012 - Implemented an electronic platform that
interconnects several government agencies.
Dealing with Construction Permits
Greece has 14 procedures dealing with
construction permits. It takes 169 days to get all the
7. 7
Business Environment: Greece
permits and about 3.5% per capita income.
Greece fairs better than the average of regional
high income OECD countries in dealing with
construction permits. It stands 41st
where as the
regional average is 53.
Greece has almost equal number of procedures
dealing with construction as compared to the
average number of procedures in regional high
income OECD countries. Though, it takes slightly
more time in getting these permits in Greece than
in other regional countries the cost of getting
these permits in Greece is far lesser.
Greece has smart regulations to ensure that
standards are met while making compliance easy
and accessible to all. It also has coherent and
transparent rules, efficient processes and
adequate allocation of resources especially
important in construction sector where safety is at
stake. There have been no reforms in Greece
related to construction permits in last four years.
Getting Electricity
Getting electricity for a warehouse by the local
distribution utility in Greece requires completing 6
procedures. It takes 77 days and costs 60% of
income per capita.
Globally, Greece stands at 77 in the ease of
getting electricity for businesses. Average
ranking of regional high income OECD countries
is 53.
Though, the number of procedures is on the
higher side in comparison to regional high
income OECD countries, the expenditure
required to complete these procedures is lesser
than the average.
Registering Property
Ensuring formal property rights in Greece requires
11 procedures to be completed. Completing all
these procedures requires 18 days and expenditure
equal to 12% of the property value.
Greece ranks 150th
on ease of registering property
index where as the regional average is 58.
Greece’s rank has improved from 151 in 2011 to
150 in 2012. The number of days required to
complete the procedures has decreased from 22 to
18 in last four years. Expenditure required has also
decreased from 14% to 12% over the last 7 years.
Though, Greece has most numbers of procedures
to register property as compared to other regional
high income OECD countries it requires lesser
number of days than the average.
Expenditure required to register property for
businesses was lesser than the average in 2009
but now it has tripled as compared to the average.
This increase in expenditure to register property is
because of the increase in transfer tax in 2011 from
1% of the property value to 10% in 2012.
Getting Credit
Getting credit depends on:
Credit information systems
Legal rights of borrowers and lenders in
collateral and bankruptcy laws
The rankings here depict how well do the credit
information systems and collateral and bankruptcy
laws in Greece facilitate to access credit.
Getting credit in Greece is difficult than in other
regional high income OECD countries. Greece
ranks 78th
in ease of access to credit where as the
8. 8
Business Environment: Greece
regional average rank is 41.
Though the legal rights of borrowers and lenders
have remained unchanged for last several years
the depth of credit systems has recorded slight
improvement since 2010.
Seen globally, Greece is on the lower side in
legal rights but on the higher side in the
accessibility of credit information.
The only reform brought in this regard was in
2010 in which the private credit bureau, Tiresias,
expanded the amount of information it distributes
in its credit reports, enhancing access to credit
information.
Protecting Investors
Investor protections matter for the ability of
companies to raise the capital they need to grow,
innovate, diversify and compete. If the laws do
not provide such protections, investors may be
reluctant to invest unless they become the
controlling shareholders. Strong regulations
clearly define:
Related-party transactions
Promote clear and efficient disclosure
requirements
Require shareholder participation in major
decisions of the company
Set clear standards of accountability for
company insiders
Owing to the current and continuing economic
and financial turmoil, Greece ranks 155 on the
strength of investor protection index. The regional
average rank is 62. Greece’s rank has worsened
from 153 in 2011 to 155 in 2012 despite
improving on strength of investor protection
index.
Greece fairs on the lower side as compared to
regional high income OECD countries on following
parameters:
Liability of Director towards investors
Ease of shareholder suits
As a reform, in 2009, Directors were made more
accountable to the investors and the procedures to
sue the Directors for damage caused by related
party transactions were made easier.
Paying Taxes
In Greece, firms have to pay taxes 10 times in a
year, have to spend approximately 224 hrs a year
filing taxes and have to pay almost 47% of profits
as taxes.
Greek ranks 83 in 2012 on the ease of paying taxes
whereas the regional average is 62. Greece ranked
80 in 2011. Greece ranks lower than the average
and its rank has slipped lower even though there is
improvement in:
Number of payments in a year
Time spent on preparing, filing and paying
Total tax rate
Compared to regional countries, Greece has:
Lesser number of payments required per year
More number of hours required in filing per year
Higher tax rate
Greece has brought about following reforms in
taxation policies:
2012: Reduced corporate income tax rate
2009: Electronic payment of social security tax
was introduced
9. 9
Business Environment: Greece
Trading Across Border
Researches show that exporters in developing
countries gain more from a 10% drop in their
trading costs than from a similar reduction in the
tariffs applied to their products in global markets.
The realm of Cross Border Trade seems to be in
gray in Greece. It takes 5 documents, 20 days
and USD 1153 to export a goods container where
as it takes 6 documents, 25 days and USD 1265
to import in Greece.
To understand the scenario better, Greece ranks
83 in ease of cross border trade where as the
regional average rank is 33. Also, number of
documents required, number of days required
and the cost incurred is maximum and much
higher than the average in Greece for both import
and export.
There have been no reforms in Greece in the
recent past to improve cross border trade.
Enforcing Contracts
Well-functioning courts help businesses expand
their network and markets. The ease of resolving
a conflict determines the growth of businesses in
a country.
In Greece, it takes 39 procedures, 819 days and
14.4% of the value of the claim to resolve a
conflict.
Greece ranks 90 in ease of resolving a conflict
where as the average rank of regional countries
is 37. Though, there has been no improvement in
the above stated parameters the rank of Greece
has improved from 91 in 2011 to 90 in 2012.
As compared to other regional high income
OECD countries, Greece:
Has maximum number of procedures
Takes maximum number of days
Costs lower
There have been no reforms in this regard in recent
past in Greece.
Resolving Insolvency
A robust bankruptcy system functions as a filter,
ensuring the survival of economically efficient
companies and reallocating the resources of
inefficient ones. Fast and cheap insolvency
proceedings result in the speedy return of
businesses to normal operation and increase
returns to creditors. By improving the expectations
of creditors and debtors about the outcome of
insolvency proceedings, well-functioning insolvency
systems can facilitate:
Access to finance
Save more viable businesses
Improve growth and sustainability in the
economy overall
In Greece, it takes on an average 2 years resolving
insolvency and costs 9% of the debtor’s estate. The
average recovery rate is 41.8%.
Globally, Greece stands 57 in ease of resolving
insolvency. The regional average rank is 27.
The time taken and cost incurred in resolving
insolvency have remained constant over the years
but the recovery rate has decreased continuously.
This has led to slipping of the rank of Greece from
50 in 2011 to 57 in 2012.
As compared to other regional countries in
resolving solvency, Greece:
Requires equal costs
Requires more time
10. 10
Business Environment: Greece
Has lesser expected return
Work Culture in Greece
To start working in Greece would require a grass
root level scenario of work culture and work
practices.
Working Practices
Uniform business hours for retailers across
Greece were set by law in 2005. Business
hours are from 9am to 9pm Monday to Friday
and 9am to 6pm on Saturdays. Banks are
normally open to the public Monday to
Thursday from 8am to 2pm and Friday from
8am to 1:30pm.
Greeks have a flexible attitude towards time.
Therefore, don’t be surprised if business
meetings or social events begin late. Being
patient and including some extra time in ones
schedule can help business relationships
with ones Greek counterparts.
Greeks tend to keep a small distance to their
counterparts during conversations. Physical
contact is commonly used to show empathy
and to emphasize the subject matter.
Structure and Hierarchy of Companies
Business structures in Greece are strictly
hierarchical which is reflected in the directive
and authoritative leadership style.
The Greek economy is characterized by large
conglomerates run by dynastic families.
Greek society is therefore extremely
relationship-oriented and having the 'right’
contacts is essential in order to successfully
conduct business in Greece.
Management styles in Greece tend to follow
the principle of managing people not
personnel. The personal problems of
employees are taken seriously and dealt with in
a paternalistic way.
Greek women are treated relatively equal to
men and receive little discrimination compared
to other European countries. Therefore, it is not
uncommon to see both women and men in
every level.
Working Relationships
Greek culture is group-oriented. Building deep
and lasting relationships is therefore very
important for Greeks.
Personal contacts and networks are
prerequisites for successful business deals.
The establishment of trust, loyalty and strong
bonds facilitates business operations in
Greece.
Individual actions are rare and seen with
suspicion.
Greeks are usually friendly and warm.
However, saving face and respecting each
other’s honour is essential since Greeks are
very proud and easily offended.
Business Practices
The official language is Greek. Many business
people have a very good knowledge of English
but Greek language skills are an advantage. If
one does not have a proficient knowledge of
Greek it is wise to bring an interpreter to
meetings.
There is a general distrust of written
communication. Contracts tend to be rather
simple since amendments are regularly made
depending on the needs of either side.
Personal contact is essential when doing
business with Greeks. One should avoid
conversations via the phone or email since
Greeks prefer to conduct business face-to-face.
11. 11
Business Environment: Greece
The Greek attitude towards work tends to
reflect the philosophy of ‘working to live’
rather than ‘living to work’. The family clearly
takes precedence over the job.
Business in Greece is conducted quite slowly
due to the importance laid upon the
development of personal relationships. Being
patient and including extra time in ones
schedule can help business relationships.
Business Etiquettes: Dos and Don’ts
DO have printed material in both English and
Greek.
DO try to learn some Greek. Even though
many business people speak Basic English,
it is considered a compliment if one attempts
to use the Greek language.
DO use every opportunity to socialize with
Greek counterparts. Personal relationships
with colleagues are highly valued in Greece.
DO avoid controversial conversation topics
such as the name conflict with Macedonia.
DON’T be offended or surprised if Greek
colleagues enter ones personal space.
DON’T criticize Greek counterparts in front of
other business colleagues, as this may cause
a loss of face and harm their sense of
honour.
DON’T show an open palm directed at
someone’s face. This may be seen as an
insult.
Brief History of Greece and its Implications
The culture of Ancient Greece has had a large
impact on today’s world, Democracy and the art
of debating being the most commonly known.
Ancient Greeks were pagan.
In the 8th century B.C. two ports, Argos and
Corinth started to flourish. They began to trade with
the Near East and a local production. These two
ports specialized in manufacturing luxury goods.
During trade with Phoenicians they learned and
evolved their alphabet.
As time passed, Corinth sent out people to Corfu
and Sicily to capture additional land for agriculture
and in the process established more than 150
colonies.
During this period two important city-states i.e. polis
flourished, Sparta and Athens. Sparta evolved to
develop organized structure of government that
represented every member of the society.
On the other side Athens was on rise. It also had an
organized structure of government but was based
more on capitalist structure. It also included each
and every member of the society.
With the evolution of these city-states, Geeks
started celebrating culture and involved themselves
more into society in economic, religious and
political events. They became closer and closer and
started feeling more like a unit. They started to
identify themselves as Hellenes. They referred to all
the foreigners as Barbarians.
Greece was under attack from Persian ruler
Xerxes. Athens and Sparta led from the front and
defeated Persians at the battles of Marathon,
Salamis and Platea.
An important turn in history took place because of
these Persian wars. Partners in trade and cultural
relations for long Greece and Near East empires
such as Lydia, Phoenicia and Egypt separated.
Sparta left the Hellenic League. Athens gained total
control over the league.
The History of the Classical Period
12. 12
Business Environment: Greece
From the 6th to the 4th century BC, Athenian
Empire comprised of 172 states. Prior to 6th
century, the position of citizens in the hierarchy
was determined by the wealth he possessed.
Solon, the law giver and the poet, began sowing
seeds of democracy and treated all people as
equal in the system.
The Golden age of Greece, in which Pericles
ruled Athens in 461 BC, democracy was
implemented to its fullest. He built great
monuments including the Parthenon to showcase
the power of Athens and employ the workers.
Because of growing power of Athens, many
states including Sparta felt afraid and both the
states entered into Peloponnesian Wars, the
longest war of Antiquity. The Athenians were
defeated in this war. This marked the end of the
Classical Period.
The History of the Macedonian Period
During the Peloponnesian Wars, Macedonia as a
power was on rise. Macedonians were Greek but
they spoke a different dialect and had different
social and cultural values. The Macedonian
political system also differed from the city-state
system of Greeks; they had a Headman holding
all the power, authority and control.
Macedonia rose as a greater power and under
King Philip II conquered Athens and Thebes in
338 BC. After assassination of King Philip II the
task of expanding the empire was given to his
son Alexander the Great while he was only 22.
Alexander the great was a student of Aristotle.
Alexander conquered all the city-states of
Greece. Alexander the Great conquered the
Persian Empire, Egypt, Afghanistan and some
parts of India. He died at the age of 33 by
malarial fever.
Death of Alexander the Great marked the end of
this huge empire and several parts as they exist
today emerged:
The Antigonids in Macedonia
The Seleucids in Asia
Syria, Persia and the Ptolemies in Egypt
After this, the concept of city-states disappeared
and larger states came into existence. Greek
continued to be the official language for
administration, literature and trade.
13. 13
Business Environment: Greece
Political
Greece is a parliamentary republic that balances
power between the administrative, executive and
judicial systems. The Republic of Greece holds
constitution as the highest law.
President is the head and holds the responsibility
for all the actions. President is chosen by the
members of the parliament for five years and he
should get two thirds majority to come to power.
President chooses the Prime Minister and then
both of them select rest of the ministers.
President has rights to Veto the laws passed by
the parliament.
After Democracy was restored, Greece’s political
system became a two party system. The major
political parties in Greece being:
New Democracy – Liberal Conservative
Panhellenic Socialist Movement – Social
Democratic
Communist Party of Greece
Coalition of the Radical Left
Current Political Environment
Ministry of Foreign Affairs conducts the foreign
policies of Greece. It is administered by the
Minister of Foreign Affairs. To help restore the
historical ties, Finance Ministry has started a
regional policy to promote peace and stability in
the Middle East, the Balkans and the
Mediterranean.
Three main issues have been identified by
Ministry of Foreign Affairs which are of
importance of Greece:
Claims over the Greek region, as per the
MInistry, of Aegean Sea and the airspace
above it by the Turkish
Turkish Republic of Northern Cyprus that has
been setup on the island of Cyprus is under
soup
The Balkan country having the same name as
Greece’s popular country Macedonia is a
burning controversy
Greece is a member of big and powerful
international organizations, including:
The Council of Europe
The European Union
The Union for the Mediterranean
The United Nations, of which it is a founding
member
14. 14
Business Environment: Greece
Economic
Greece has the 34th
largest economy by Nominal
GDP and the 42nd
largest by PPP. In the
European Union Greece fits as the 15th
largest
economy in the 27 nations.
Being a developed nation it has a high per capita
income of $27,875. This was the scenario till
2011 but now the economy has fallen into a rot.
The economy was heavily dependent on Service
sector, contributing a huge 85% of its GDP, the
Industry with 12% and agriculture with 3% make
up the rest. Tourism is a major source of income
for the country as it’s the 7th
most visited in the
European Union and the 16th
most visited in the
world. Greece is the largest economy in the
Balkans; its economy is bigger than all the other
Balkan states combined.
Greece which was the founding member of
Organisation for Economic Co-operation and
Development (OECD) and the Organization of
the Black Sea Economic Cooperation (BSEC), is
an important player in European Union.
In 1979 the accession of the country in the
European Communities and the single market
was signed, and the process was completed in
1982. In January 2001 Greece adopted the Euro
as its currency, replacing the Greek drachma at
an exchange rate of 340.75 drachma to the Euro.
Greece is also a member of the International
Monetary Fund and the World Trade
Organization, and is ranked 31st on the KOF
Globalization Index for 2010 and 34th on the
Ernst & Young’s Globalization Index 2011.
Greece had suffered huge losses in the Second
World War and the economy was in shambles
after the war. But it recovered miraculously
during the 1950-70 period. The economy grew at a
steady rate in this period, outperforming the
European countries. The growth peaked at 5.9% in
2003 and at 5.5% in 2006.
Due to the late-2000s financial crisis and the
European sovereign debt crisis, the Greek
economy when into recession and the growth rates
went down to -7.1% in 2011, 4.9% in 2010 and -2.8
in 2008. The public debt in 2011 was {355.658
billion (170.6% of nominal GDP). It has been
lowered to 280 billion (136.9% of GDP) in the first
quarter of 2012.
15. 15
Business Environment: Greece
Technological
In Greece, General Secretariat for Research and
Technology (GSRT) is the main body which takes
care of all the design, implementation and
supervision of the national research and
technological policies. GSRT comes under the
ministry of Development. In case of
Telecommunication sector of the country, it has
ensured that the modern, completely digital,
information and communication network is
available in all areas.
There is a wide range network of fiber optics to
make availability of broadband internet
widespread. In the early 2011, there was 20%
penetration recorded in terms of number of
broadband connections. According to the data of
one survey, 54% of the household in Greece
uses the internet regularly and among them
around 95% have broadband connections.
The country has so strong network that you can
find 3G cell phone connections and Wi-Fi
connection almost everywhere in the country.
Multiplayer gaming, office application and net
access provider internet café can be easily sight
in the country. Mobile internet usage has seen a
volcanic increase of 340% in 2012. Greece is
ranked among top 30 countries with a highly
developed information and telecommunication
infrastructure by United Nations International
Telecommunication Union.
The country has increased its spending on the
research and development related activities over
the last decade from .38% of GDP in 1989 to
.65% of GDP in 2001 but it is lower than the
average spending of the European Union. Even
having the spending lower than the EU’s average
spending on R&D, country has seen third highest
increase in the terms of percentage in Europe.
Many MNCs like Siemens, Coca-cola, Motorola and
Ericsson have their global R&D headquarters in this
country due to its political and economic stability
along with the highly qualified workforce and better
strategic location. Main technology parks of Greece
are:
The Science and Technology Park of Crete
The Lavrio Technology Park
Thessaloniki Technology Park
Patras Technology Park
Greece is the sixteenth member of European
Space Agency (ESA) and received the membership
in 2005 after the cooperation that started in 1990s
between ESA and Hellenic National Space
Committee.
Intellectual Property Rights
The only legal and qualified institution which
protects inventions and industrial designs is
Hellenic Industrial Property Organization (IBO). It
was established in 1987. It provides technological
information using worldwide patented databases.
Thessaloniki, Patra and Heraklion-Crete, the three
electronic patent libraries are also operated by IBO
which promote the technological information. IBO
also contributes to the industrial and technological
development of Greece and provides important
services in the industrial property field as well.
Research Bodies Supervised by GSRT
National Observatory of Athens
Hellenic PASTEUR Institute
National Centre for Scientific Research
The national Hellenic Research Foundation
Biomedical Sciences research Centres
Centre for Research and Technology
Foundation for research and technology –
16. 16
Business Environment: Greece
Hellas
Centre for Renewable Energy Sources
National Documentation Centre
Technological Bodies Supervised by GSRT
Greek Atomic Energy Commission
Industrial Property Organization
Aquaculture Center of Acheloos
Metallurgical Industrial Research and
Technology Development Center
Ceremics and Refractories Technological
Development Company
Food Industrial Research and Technological
Development Company
Clothing Textile and Fibre Technology
Development Company
Greek Research and Technology
There are lots of renowned scientific and
technological institutes in the Greece that help
the country grow in the field of scientific research
and technological development. Different funds
and scholarships are available which help the
students in getting the education of their choice
and innovation relay centre helps the innovation
minds to come up with new technological
innovation to impart the technological
development in the country.
17. 17
Business Environment: Greece
Legal
Greek laws still follow civil law tradition. Creation
of Greek state in 1980 was the result of national
revolution of 1821 which was against Turks. Civil
(private) and public law are the two most
important divisions of Greek legal order. Public
law consists of all constitutional, criminal and
administrative to international law. The general
principles of civil law are the law of succession,
law of obligations to property and family law and
the various branches of commercial laws. The
importance of civil law has diminished over time
as the heart of the legal system. Governmental
interventions are the aspects which covers the
expansion of state for administrative regulation.
Commercial code, Civil Code, code of civil,
military penal code and criminal procedures in
code of private maritime law and penal code are
the some modifications in Greek law. Principles
of autonomy, freedom of contact civil and private
property are some of the principles for Byzantine
law.
The Constitutional Tradition
Greece is known for a long constitutional
tradition, with a written constitution. After fall of
the dictatorship of 1967, the present constitution
was enacted since June 1975 and re-establishing
a democratic government in country. On the
principle of popular sovereignty it shows a
representative democracy where the President is
elected by the Parliament and the Prime Minister
and his cabinet s responsible to Parliament
elected democratically. A freedom is given to
establish party in a multiparty system. A secret
and universal ballot is used to elect the
Parliament. After the amendments of 1986 the
Prime Minister has been a center locus of power
whereas the President is left as a role of
ceremonial.
European Community Law and the Greek legal
order
Greece has actively participated in process of
European unification which was signed and ratified
by the Greek Parliament in 1979 with a majority of
193 votes out of 300. The legal basis for
incorporation of Community Law into Greek Legal
order is provided by Article 28 of the Constitution of
1975. A pervasive affect has been seen on Greek
legal order by European Community Law and
whenever required the Domestic Law is firmly
adapted to the provisions of Community Law.
The Protection of Environment
There are some important provisions in the
Constitution to protect environment. It is the duty of
the state to provide protection to the environment
by adopting special preventive or repressive
measures. In the Article 24 of constitution
measures are provided for urban planning as well
as protection of forests. Such provision for
environment by the Constitution is broadly
interpreted by the Council of State, and has greatly
contributed to the development of environmental
Law by its jurisprudence in Greece.
Social Justice
Protection of family, motherhood, childhood, youth
and poor members of society is provided by
constitution and also guarantees social rights. The
basic mission of state is providing education and all
the citizens of Greece are entitled to free education
on all levels of educational institutions and at
university level education is provided exclusively by
fully self-governed legal persons of public law.
Right to work is proclaimed by the Constitution ot
everyone and hence they are entitled to pay for
work of equal value irrespective of their sex or any
other distinction.
18. 18
Business Environment: Greece
Court structure
In the Article 20 part 1 of the constitution, which
envisages on the right of access to the courts,
where every person is entitled to get legal
protection by the courts and may plead before
them his views concerning his rights and
interests. There are three levels of courts in
Greece. First, Civil and criminal courts which
have jurisdiction over civil and criminal matters,
where the same judges sit and judge either
category of cases; and administrative courts have
jurisdiction over administrative controversies.
Other special courts are: three types of ordinary
civil courts: District, twelve courts of appeal and
the Areios Pagos.
So the Greek Constitution structure is
nevertheless affected by German Fundamental
Law (Grundgesetz). It can be seen clearly that
the Greek Constitution is striking an aims to
maintain an extremely difficult balance between
imperatives of a free market economy and the
need for public intervention to the economic life.
It can’t be cancelled out totally the contractual
freedom and institute for instance a system of
public attribution of real estates.
19. 19
Business Environment: Greece
Environmental
Greece is currently suffering from economic
depression, and this has adversely affected the
environment of Greece. Currently three major
environmental problems have troubled Greece.
Acid Rain
Deforestation
Air Pollution
Acid Rain
Acid rain is rain which is acidic in nature. Acid
rain is caused by pollution in atmosphere which
makes the rain water acidic. Because of acidic in
nature, acid rain affects and harms agriculture,
lakes, man-made buildings and human health.
Acid rain has now become a widespread problem
in Athens. Its famous ancient monuments like
Parthenon, has deteriorated and holes can be
seen in its stone.
Deforestation
After 2009, there is a serious rise in deforestation
in Greece, which even surpasses the Nazi period
deforestation. Prior to that, summer fire of 2007
destroyed significant proportion of forest in
Greece.
The austerity measures undertaken by
government of Greece has resulted into very high
price of fuel oil, with government raising taxes on
heating oil to as high as 450%. Because of this,
the heating cost of an average small apartment in
Greece shot up from $1300 to $1900. Firewood
is available at half the price of heating oil.
This has resulted to people using firewood
instead of heating oil to heat their apartments.
Burning firewood is cheap but it has its own toll.
Firewood is an inefficient source of energy and on
burning; it produces a lot of smoke. Firewood now
being burned by a vast number of people has
resulted into low lying smog covering Athens and
other urban cities of Greece. Many have also
resorted to burn furniture wood and even salvaged
wood that contains noxious varnishes. Illegal
chopping of trees has increased too.
Air Pollution
Because of rapid deforestation and people burning
firewood, the level of air pollution has risen to
serious levels in the country. A study by the
University of Thessaloniki concluded that
concentration of dangerous fine particles in the air
surrounding the country’s second largest city was
twice the safety standards. In Athens, particulate
level have been recorded thrice the normal levels.
Athens medical association has warned the
government that this high level of pollution will
increase the sickness level of population which is
already on the verge of poverty. Their argument is
that cost of treating the people is much higher that
allowing full subsidy on natural gas and heating oil.
Though in a recent report in Dailymail.co.uk, it has
been reported that air pollutants like nitrogen
dioxide and sulphur dioxide has decreased by
drastic 40 percent since 2008. The reason behind
this is economic crisis which has led to shutdown of
industries and people finding it unaffordable to drive
a car. Around 30% of small scale industries have
shut down after economic crisis. Because of
increase in fuel prices in the country, fewer are
choosing to use their cars.
Even though levels of air pollutants like nitrogen
dioxide and sulphur dioxide has decreased, heave
smog covering cities and high particulate matter in
air will increase the health hazards and expense on
Firewood is an inefficient source of energy and on
burning; it produces a lot of smoke. Firewood now
being burned by a vast number of people has
resulted into low lying smog covering Athens and
other urban cities of Greece. Many have also
resorted to burn furniture wood and even salvaged
wood that contains noxious varnishes. Illegal
chopping of trees has increased too.
Air Pollution
Because of rapid deforestation and people burning
firewood, the level of air pollution has risen to
serious levels in the country. A study by the
University of Thessaloniki concluded that
concentration of dangerous fine particles in the air
surrounding the country’s second largest city was
twice the safety standards. In Athens, particulate
level have been recorded thrice the normal levels.
Athens medical association has warned the
government that this high level of pollution will
increase the sickness level of population which is
already on the verge of poverty. Their argument is
that cost of treating the people is much higher that
allowing full subsidy on natural gas and heating oil.
Though in a recent report in Dailymail.co.uk, it has
been reported that air pollutants like nitrogen
dioxide and sulphur dioxide has decreased by
drastic 40 percent since 2008. The reason behind
this is economic crisis which has led to shutdown of
industries and people finding it unaffordable to drive
a car. Around 30% of small scale industries have
shut down after economic crisis. Because of
increase in fuel prices in the country, fewer are
choosing to use their cars.
Even though levels of air pollutants like nitrogen
dioxide and sulphur dioxide has decreased, heave
smog covering cities and high particulate matter in
air will increase the health hazards and expense on
20. 20
Business Environment: Greece
healthcare.
Current Policies
Greece is a member of Kyoto Protocol. Being a
member of Kyoto Protocol, it has to cut down
carbon emission; but Greece has failed to do so.
With economy in ruins, it is difficult for the country
to cut down emissions and boost industries
simultaneously. Many are critical over the policies
implemented by the Greece government and
have claimed that the government has not
implemented policies in owning interest of large
organizations.
The Government has also been criticized for its
waste management plans, even by Mayor of
Athens. Because of high taxes on oil, people
have started to use firewood to keep their
apartments warm in this winter. Government is
trying to discourage use of firewood, as it is
resulting into thick smog over major cities.
21. 21
Business Environment: Greece
Recommendations
Greece has various strengths in business areas
that can be leveraged for growth.
Ports – Ports are said to be the backbone of
the economy of Greece. There is a lot of
scope in building new ports.
Food and Drink – Being a highly developed
country and having a rich lifestyle there is
always a scope in food industry in Greece.
Ethnic foods and meat products are in
demand and this opportunity can be used to
start a business and diverge into related
products.
Healthcare – Public and Private sector
interaction in this sector in Greece opens
new opportunities of growth in manpower,
potential, management etc.
Tourism and Leisure – Tourism is the largest
sector in Greece and unique and innovative
ideas lay pathway for potential growth
forever.
Construction – With growth prospects in all
the sectors construction is the basic
component that will see growth in all the
aspects.
Environment – Greece has never been a fore
runner in environment preservation. Now is a
chance to move a step forward. This can be
a big initiative for strategic movers. Those
having experience in this business can hold a
strong foot here in Greece in coming future.
Energy – The energy sector in Greece is
dependent upon imports from other
countries. Pipelines are being laid to full fill
the energy needs of the country. There will
be a lot of business and job opportunities as
and when the lying of pipelines completes.
There will be a scope of growth who foresee
demand and supply of specific commodities.
22. 22
Business Environment: Greece
Annexure
Expenditures for social protection as a percentage of GDP
Industrial production (manufacturing) in Greece (2009)
Rank
Production
Rank
Production
Industry Value Industry Value
1 Portland cement {897,378,450 6 Cigarettes {480,399,323
2 Pharmaceuticals {621,788,464 7 Beer {432,559,943
3 Ready-mix concrete {523,821,763 8 Dairy {418,527,007
4 Beverages (non-alcoholic) {519,888,468 9 Aluminium slabs {391,393,930
5 Rebars {499,789,102 10 Coca-Cola products {388,752,443
–
Total production value: {20,310,940,279
23. 23
Business Environment: Greece
Largest Companies in Greek Economy
Forbes Global 2000
Rank Company
Revenues
(US$ billion)
Profit
(US$ billion)
Assets
(US$ billion)
Market value
(US$ billion)
1 National Bank of Greece 12.42 2.15 140.48 11.78
2 Eurobank EFG 11.97 0.86 113.92 4.48
3 Hellenic Petroleum 9.68 0.25 8.23 3.40
4 Coca Cola Hellenic 9.37 0.57 9.75 9.02
5 Hellenic Telecom 8.34 0.56 15.94 5.85
6 Public Power Corporation 8.11 −0.43 19.40 3.62
7 OPAP 7.69 1.01 1.92 6.51
8 Alpha Bank 6.94 0.71 90.26 5.09
9 Piraeus Bank 6.21 0.44 75.95 2.90
10 Bank of Greece 2.66 0.31 98.58
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