Invest in Greece Study
A newly-published study on Greece’s previous Investment Law highlights trends, successes and challenges that have existed in the investment framework from 2000-2008.
The study, prepared by the Policy and Planning Unit at Invest in Greece, examines the effectiveness of the Investment Incentives Law related to the implementation, or not, of approved investment schemes submitted to Invest in Greece from 2000 to 2008.
During that period 403 investment schemes, of which 226 were approved, were submitted within the framework of the Law. Of these, 115, or 51%, have been implemented, 99, or 44%, are in progress and 12, or 5%, were not finally implemented.
Of the implemented investment schemes in the secondary sector, most are in manufacturing, followed by energy. In manufacturing, most schemes are in the food and beverage and tobacco sector, followed by chemicals, photovoltaic systems, products from non-metallic minerals and metallic products. In the tertiary sector, most schemes are in tourism, followed by transport, communications and health services.
Of the unimplemented schemes, in the secondary sector all are in manufacturing whereas in the tertiary sector most are concentrated mainly in transport and communications, followed by tourism and other activities.
Of the schemes in progress, 9% were to be completed within 2010, 43% are to be implemented in 2011, 22% are to be implemented in 2012, and 5% in 2013; the exact time of implementation of 21% could not be determined.
Greek investment schemes constitute 64% of approved investment projects and foreign investment schemes 36%.Greek investors focus their activities mainly in tourism, followed by alternative energy and food and beverage. Foreign investors focus mainly in the sector of alternative energy, followed by chemicals and the food and beverage sector.
The comments of companies that have implemented their investment schemes, those whose schemes are in progress, and those whose schemes have not been implemented, focus mainly on the economic crisis that impedes business, bank loans, which have either become limited or carry high servicing cost, delays in the payment of grants, the licensing process and appeals to the State Council, which significantly delay the implementation of investment schemes.