Business environment - Greece

1 Business Environment: Greece

Business

Environment: Greece

Prepared by: 12810085, 12810086, 12810087, 12810088

Varun, Vikash, Vishwjeet, Yaksheash


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


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


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 – 4

th 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 4

th 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.


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

http://en.wikipedia.org/wiki/Unitary_state

http://en.wikipedia.org/wiki/Constitutional_republic

http://en.wikipedia.org/wiki/Republic


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


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


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


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.


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


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.


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


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.


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 –


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.


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.


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.


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


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.


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.


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


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 1.13


References

http://francais.doingbusiness.org/~/media/fpdkm/doing%20business/documents/profiles/country/grc.pdf

http://en.wikipedia.org/wiki/Greece

http://www.nationsencyclopedia.com/WorldStats/ADI-starting-minimum-capital.html

http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Greece.pdf

http://www.nytimes.com/2013/02/15/opinion/global/a-very-greek-depression.html?_r=1&

http://www.cbc.ca/thecurrent/episode/2013/02/08/air-pollution-in-athens-skyrocket-due-to-governments-austerity-

measures/

http://www.wsws.org/en/articles/2013/02/25/gree-f25.html

http://www.dailymail.co.uk/news/article-2258612/Financial-crisis-Pollution-falls-40-cent-Greece-2008.html

http://www.envirotech-online.com/news/environmental-

analysis/7/breaking_news/environmental_analysis_sustainable_solar_energy_for_greece/9912/

http://www.startupoverseas.co.uk/expanding-a-business-in-greece

http://www.nytimes.com/2013/02/15/opinion/global/a-very-greek-depression.html?_r=1&

http://www.cbc.ca/thecurrent/episode/2013/02/08/air-pollution-in-athens-skyrocket-due-to-governments-austerity-measures/

http://www.cbc.ca/thecurrent/episode/2013/02/08/air-pollution-in-athens-skyrocket-due-to-governments-austerity-measures/

http://www.wsws.org/en/articles/2013/02/25/gree-f25.html

http://www.dailymail.co.uk/news/article-2258612/Financial-crisis-Pollution-falls-40-cent-Greece-2008.html

Business environment - Greece

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