A force to be reckoned with: stepping up investments and exports has made Greece even more of a major player in the region.

Since March of 2004, Greece’s Prime Minister Costas Karamanlis has held the reins of power as the nation transformed itself before the world’s eyes. The successful 2004 Olympic Games in Athens launched Mr Karamanlis´ first term, and presented an image of the nation as a modern and dynamic country in the international arena. Continuing with the previous Socialist government’s efforts to strengthen regional ties, the Prime Minister and his administration presided over the signing of the first ever multilateral treaty in South East Europe in October of 2005. Now, the government is focused on implementing a successful post-Olympic strategy to continue the momentum of their first two years in office.

“Our first goal is to build on our new image in the post-Olympic era. After the successful Games, we now have to capitalise on the efforts of the Greek people and the government,” says Deputy Minister of Foreign Affairs Evripidis Stylianidis (INTERVIEW). “We want to communicate that there is a new mentality and a new generation of politicians and businessmen.”

Prime Minister Karamanlis has based his political strategy on increasing dialogue between the public and private sectors, and on expanding Greece’s involvement in four key markets: South East Europe, the Black Sea, Turkey and the Mediterranean, with an emphasis on the Arab world. While working to increase privatisation at home, Prime Minister Karamanlis, well aware that regional development and prosperity can only brighten Greece’s future, has been supporting regional bids for European Union membership and boosting trade, as well as backing shared infrastructure in transport and energy with regional partners.

The policy is working. Greece is now the strongest player in the Balkan market, where more than 3,500 Greek companies have invested over €8 billion and created 200,000 jobs. Greek exports to the overall area jumped by 10 per cent between 2004 and 2005, and by 23 per cent to Turkey. Today, Greece is the biggest investor in Serbia and Montenegro, Albania, the Former Yugoslav Republic of Macedonia and part of Transylvania. It is the second largest investor in Bulgaria, and the third largest in Romania.

George Alogoskoufis Minister of Economy and Finance	Evripidis Stylianidis Deputy Minister of Foreign Affairs - INTERVIEW

Positioning itself as a strategic partner for international companies interested in a slice of this market, which represents 181 million people within a 1000 kilometre radius, is key to the government’s strategy of attracting foreign direct investment. Greece’s infrastructure, skilled workforce and regional knowledge are attractive qualities for those seeking a regional business centre. The Greek network extends from the Balkans to the Arab countries of the Mediterranean, and markets reluctant to accept business from others have embraced Greek businessmen with open arms, says Mr Stylianidis. “People in this area do not consider us a major power and are open to our message. In understanding the region, we fill a valuable role diplomatically,” he notes.

Minister of Economy and Finance Dr George Alogoskoufis adds, “Greek foreign direct investment contributes to the development and the stabilization of Balkan economies. By investing and trading in or through Greece, one gains access to a network of companies that do business in the Balkans and in the eastern Mediterranean.”