Industry: Concerns of Further Shutdowns – How Can the Situation Be Turned Around?

The decision of the Portuguese company BA Glass, to put an end to the only functioning glassworks in Greece, announcing that the historic ‘Gioula’ factory in Aigaleo, western Athens, will close at the end of April, brings to the forefront the difficulties faced by domestic industries.

The closure of the glass factory is just one of many recent shutdowns, compounding Greece’s struggle with deindustrialization; ten factories have ceased operations since 2019.

The president of the Federation of Attica and Piraeus Industries Dimitris Mathios highlights the industry’s struggle to undergo necessary industrialization despite the country’s developmental path.

In Europe, industry contributes 15-20% to GDP, while in Greece, it’s only 9%.

Former Association of Industries of Thessaly and Central Greece President Evripidis Dontas warns of more closures to come. Some factories, including in textiles, still operate despite supposed commitments for support, but their closure seems imminent.

Dontas attributes Greece’s lack of competitiveness as the main problem, hindering an upgrade by Moody’s and perpetuating a trade deficit.

Loukia Saranti, President of the Federation of Greek Industries, emphasized industry’s long-standing challenges, citing deficiencies in public infrastructure, especially in railways and ports.

High energy costs have plagued Greece since the memorandum era, exacerbated by the surge post-Russia’s invasion of Ukraine.

Mathios stresses the need for a bold industrial development policy to achieve a 12% industry contribution to GDP. He calls for investments of 250 billion euros over 5 years and emphasizes creating more industrial parks and zones.

Source: tovima.com