Greece as a key country in the production of renewable energy sources (RES), the prospect of direct German investments, but also the production of green hydrogen and batteries, new technologies and recycling system, were some of the issues on which the minister of Development and Investments, Adonis Georgiadis, focused on during his three-day visit to the German capital, where, among other things, he participated in the Economic Conference of the FAZ newspaper along with German Finance minister Christian Lindner and his other European counterparts.
The contacts of Adonis Georgiadis were, however, basically of a business nature and not so much political, he said while speaking to Greek correspondents. “I am very pleased with the successive contacts with the German Chamber of Commerce and also with many companies regarding the possibility of investments in Greece. We will continue to have a series of delegation visits from Germany to Greece in the coming weeks,” he said to German agency DW.
As he clarified, the time horizon of the long-awaited German investments in Greece is around 18 months, while the emphasis is mainly on medium-sized enterprises and not so much on heavy German industry. However, as the Minister of Development and Investments observed, the business trend, especially in the RES sector, is particularly favorable for Greece, because Germany, in an effort to become independent from Russian natural gas, seeks to build green energy production structures within the EU.
Greece has changed and German investors have understood it
On the other hand, for Adonis Georgiadis, Greece is now winning on another level. “Everyone in the German business world has realized that Greece has turned a page,” he said characteristically. As he added emphatically, German businessmen seem to regret “because they had not invested in Greece earlier”. However, the visit to Berlin was very instructive, according to the minister, because he saw first hand “that the wounds of the past in Greek-German relations have healed. The Greek economy has changed, which German investors also see. The image of foreign investments was different, especially during the fiscal crisis, and completely different today.
Now German investors, leaving behind the crisis and the painful for Greece memoranda, are turning mainly to the energy sector, where Greece has been progressing at a rapid pace in recent years. After all, its ambitious goal is that by 2030, 70% of the energy produced will come from RES. The future of Greece is to become an exporter of renewable energy sources in Europe”, Adonis Georgiadis estimates, “with competitive advantages for the economy and of course tourism”.
If Germany slips into recession…
In the current geopolitical situation, the image of Germany is that of a country under pressure, which is looking for energy everywhere. The Greek minister also got this impression from his contacts in Berlin. On the other hand, Greece, at least in terms of energy, is adequately supplied. As he says, after all, the country had very little dependence on Russian natural gas.
But what if Germany slips into an unprecedented recession due to the energy crisis in the new year, as German economists predict? Will Greece remain unscathed or will it be affected by potential domino effects? For Adonis Georgiadis, the scenario of a recession in Germany is obviously what everyone wants to avoid, because “it would have wider consequences throughout Europe and of course also for the Greek economy, reducing the rate of growth”.
For Adonis Georgiasias, in any case, the time horizon of a full recovery of the Greek economy is directly intertwined with the end of the war in Ukraine. “If it happens immediately, then the recovery will have to be calculated within two years. The big question is what will happen if this war lasts many more years.”
Latest News
ELSTAT: Greek Health Expenditures Reach €5.89 Billion in 2022
Finally, healthcare financing as a percentage of GDP decreased to 8.5% in 2022 from 9.18% in 2021, as per the Health Accounts System report.
Sonoco Paper Mill Plants Close After 30 Years in Greece
The shut down of the two paper mills in northern Greece comes a week after a glass plant closed in Athens
BoG: Private Deposits Down by 1.068bln Euros in Feb. 2024
Corporate deposits decreased by 912 million euros, compared to a decrease of 3.167 billion euros in the previous month
Greeks’ Buying Power Second Lowest in the EU
Greeks’ purchasing power is under pressure, ranking 26th among 27 EU member states.
Greek FinMin Says Digital Work Card Tackling Undeclared Work
Greece's recently launched digital work card aimed at tackling undeclared labor has already started to produce results, said Economy and Finance Minister Kostis Hatzidakis
MSC Cruises: More than 400 Visits to Nine Greek Destinations
MSC Cruises, a subsidiary of international shipping line Mediterranean Shipping Company S.A, will be sailing to Greek ports as of this month, expanding operations in the region year-round
Eurostat: Greece Among Cheaper Hourly Labor Cost Zones
In contrast, the countries that posted the highest hourly labor costs are Luxembourg (53.9 euros), Norway (51.9 euros), Iceland
GSEVEE: Economic Sentiment Indicator in Greece Down in Q2 2023
The drop follows a significant uptick in the ESI in the second half of 2022 (69.5 units) and a slight decline in the first half of 2023 (66.7 units)
Manpower Report: Sectors in Greece that Have Achieved Full Gender Equality in the Workplace
Greece surpasses this with 45%, showcasing progress but also room for improvement. Sectors like Consumer Goods and Services lead with 69% reporting full equality globally
Bank of America (BofA): Three Reasons Greek Economy Outperforms EC Average
BofA projects growth of 1.1% in 2024 and 1.7% in 2025, compared to forecasts for eurozone growth at 0.4%/1.1%, respectively