Business environment - Greece

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Business environment -  Greece Business environment - Greece Document Transcript

  • Business Environment: Greece 1BusinessEnvironment: Greece Prepared by: 12810085, 12810086, 12810087, 12810088 Varun, Vikash, Vishwjeet, Yaksheash
  • Business Environment: Greece 2IndexAbstract ....................................................................................................................................................... 5Introduction .................................................................................................................................................. 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 ............................................................................................... 12Political ...................................................................................................................................................... 13 Current Political Environment ................................................................................................................. 13Economic ................................................................................................................................................... 14Technological ............................................................................................................................................ 15
  • Business Environment: Greece 3 Intellectual Property Rights ..................................................................................................................... 15 Research Bodies Supervised by GSRT ................................................................................................. 15 Technological Bodies Supervised by GSRT .......................................................................................... 16Legal .......................................................................................................................................................... 17 The Constitutional Tradition .................................................................................................................... 17 European Community Law and the Greek legal order ........................................................................... 17 The Protection of Environment ............................................................................................................... 17 Social Justice .......................................................................................................................................... 17 Court structure ........................................................................................................................................ 18Environmental............................................................................................................................................ 19 Acid Rain................................................................................................................................................. 19 Deforestation .......................................................................................................................................... 19 Air Pollution ............................................................................................................................................. 19 Air Pollution ............................................................................................................................................. 19 Current Policies ...................................................................................................................................... 20Recommendations .................................................................................................................................... 21Annexure ................................................................................................................................................... 22 Expenditures for social protection as a percentage of GDP .................................................................. 22 Industrial production (manufacturing) in Greece (2009) ......................................................................... 22 Largest Companies in Greek Economy .................................................................................................. 23References ................................................................................................................................................ 24
  • Business Environment: Greece 4
  • Business Environment: Greece 5Abstract and believed in equality of men and women. Aristotle, Plato’s disciple, tutored AlexanderHaving Europe’s oldest Neolithic settlements, the Great and also gave theory ofdated 7th millennium BC, Greece is considered to moderation.have nurtured the first advanced civilization inEurope. Home to the great civilizations the Alexander the Great invaded and won theMinos, the Mycens and the Cyclads Greece gave Persian Empire in 334 BC. He did not stop therebirth to the Western civilization in Athens during but continued his tryst with dominance and powerthe Classical period (6th – 4th centuries BC), and became the ruler of all the regions andwhich is the most famous period in Greece’s territories till India. It was only after the death ofhistory worldwide. It was during this period in 5th Alexander the Great in Babylon that this empireBC when all the facets of a rich and advanced torn apart.culture were developed in this city-state.Democracy, rhetoric, music, drama and Greece is home to the mythological charactersphilosophy all developed in Greece during this and their stories popular worldwide. The Greekperiod. Gods and Goddesses such as Zeus, Hades, Aphrodite, Apollo, Ares, Athena, Dionysus, Hera,The Palace of Knossos was built in 7th Millennium Hermes, and Poseidon are known everywhereBC and was inhabited for several thousand years and are multi-million dollar assets for the movietill it was destructed in 1375 BC. This was the makers in Hollywood.end of Minoan civilization. The ruins of thiscolossal structure still remain. Sparta, the talk of the town, is the most recent highlight from Greece with success of theThe Parthenon was built in 447 BC and took 15 Hollywood movie 300. The movie alsoyears to build. It was the largest monument built showcases the historical connection betweencompletely from marble. Greece and Persia with the mythological characters fighting for Sparta.Games at Olympia, which were held in Olympiaduring 8th century BC to 4th century AD, led to the Greece has 1200 to 6000 islands varyingbeginning of Olympics. depending on the minimum size to take into account. Around 170 of these are inhabited.Mount Olympus is the highest mountain inGreece. It has 52 peaks. Mythology has it Mount Greece also sports gigantic open air theatres asOlympus was home to 12 Greek Gods and a legacy from the past. The dramas performed bycreated itself after the Gods defeated the Titans masked artists are a traditional way ofin the Titan war. entertainment.World’s greatest thinkers and philosophers Greece is the founding member of United NationsSocrates, Plato and Aristotle belong to Greece. (UN). It is a member of the European Union (EU) and it also became a part of Euro in 2001. A Socrates was the father of modern Western developed nation by all standards, Greece is a philosophies. high income economy ranking 21st highest in Plato, Socrates’ disciple, disliked democracy quality of life.
  • Business Environment: Greece 6Introduction Resolving insolvencyKnown as the Hellenic Republic officially, Greece These parameters don’t remain static and changeis a country in South Eastern Europe. in wake of changing scenario in world economics, reforms and policies.Country Profile Starting a BusinessCapital AthensArea 132,000 sq km Starting a business here involves 10 proceduresPopulation 11 mn and it takes 10 days in all to complete theseGini coefficient 33 procedures.Total nominal GDP USD 281 bn Paid-in minimum capital per capita, amount thePer capita nominal USD 22,700 entrepreneur has to deposit in a bank or with aGDP notary before registering the business and isOld currency Drachma calculated as a percentage of the nation’s perCurrent currency Euro capita income, is 22.8%.Ethnicity GreekGovernment Unitary parliamentary Greece stands 135th in the global scenario in ease constitutional republic of staring business. The regional average ofCurrent constitution 11th Jun 1975 developed OECD countries is 57. Greece hasLanguages Greek(99%, official); shown improvement over 147th rank it held in 2011. TurkishReligion Eastern Orthodox Greece has maximum number of procedures as Christianity compared to the regional average of OECD countries. It also has the maximum paid up capitalBusiness Environment requirement, and days required to start the business.Business environment tells how easy or difficult isit to start and run a new business. Following Greece brought about following reforms to make itparameters tell us about the business easier to start a business:environment in general: 2009 - The minimum capital requirement to Starting a business start a business was cut by 80%, reduced capital tax and made publication of company Dealing with construction permits statutes quicker. Getting electricity 2012 - Implemented an electronic platform that Registering property interconnects several government agencies. Getting credit Protecting investors Dealing with Construction Permits Paying taxes Greece has 14 procedures dealing with Trading across borders construction permits. It takes 169 days to get all the Enforcing contracts
  • Business Environment: Greece 7permits and about 3.5% per capita income. Registering PropertyGreece fairs better than the average of regional Ensuring formal property rights in Greece requireshigh income OECD countries in dealing with 11 procedures to be completed. Completing allconstruction permits. It stands 41st where as the these procedures requires 18 days and expenditureregional average is 53. equal to 12% of the property value.Greece has almost equal number of procedures Greece ranks 150th on ease of registering propertydealing with construction as compared to the index where as the regional average is 58.average number of procedures in regional high Greece’s rank has improved from 151 in 2011 toincome OECD countries. Though, it takes slightly 150 in 2012. The number of days required tomore time in getting these permits in Greece than complete the procedures has decreased from 22 toin other regional countries the cost of getting 18 in last four years. Expenditure required has alsothese permits in Greece is far lesser. decreased from 14% to 12% over the last 7 years.Greece has smart regulations to ensure that Though, Greece has most numbers of proceduresstandards are met while making compliance easy to register property as compared to other regionaland accessible to all. It also has coherent and high income OECD countries it requires lessertransparent rules, efficient processes and number of days than the average.adequate allocation of resources especiallyimportant in construction sector where safety is at Expenditure required to register property forstake. There have been no reforms in Greece businesses was lesser than the average in 2009related to construction permits in last four years. but now it has tripled as compared to the average.Getting Electricity This increase in expenditure to register property is because of the increase in transfer tax in 2011 fromGetting electricity for a warehouse by the local 1% of the property value to 10% in 2012.distribution utility in Greece requires completing 6procedures. It takes 77 days and costs 60% of Getting Creditincome per capita. Getting credit depends on:Globally, Greece stands at 77 in the ease ofgetting electricity for businesses. Average Credit information systemsranking of regional high income OECD countries Legal rights of borrowers and lenders inis 53. collateral and bankruptcy lawsThough, the number of procedures is on the The rankings here depict how well do the credithigher side in comparison to regional high information systems and collateral and bankruptcyincome OECD countries, the expenditure laws in Greece facilitate to access credit.required to complete these procedures is lesser Getting credit in Greece is difficult than in otherthan the average. regional high income OECD countries. Greece ranks 78th in ease of access to credit where as the
  • Business Environment: Greece 8regional average rank is 41. Greece fairs on the lower side as compared to regional high income OECD countries on followingThough the legal rights of borrowers and lenders parameters:have remained unchanged for last several yearsthe depth of credit systems has recorded slight Liability of Director towards investorsimprovement since 2010. Ease of shareholder suitsSeen globally, Greece is on the lower side in As a reform, in 2009, Directors were made morelegal rights but on the higher side in the accountable to the investors and the procedures toaccessibility of credit information. sue the Directors for damage caused by related party transactions were made easier.The only reform brought in this regard was in2010 in which the private credit bureau, Tiresias, Paying Taxesexpanded the amount of information it distributesin its credit reports, enhancing access to credit In Greece, firms have to pay taxes 10 times in ainformation. year, have to spend approximately 224 hrs a year filing taxes and have to pay almost 47% of profitsProtecting Investors as taxes.Investor protections matter for the ability of Greek ranks 83 in 2012 on the ease of paying taxescompanies to raise the capital they need to grow, whereas the regional average is 62. Greece rankedinnovate, diversify and compete. If the laws do 80 in 2011. Greece ranks lower than the averagenot provide such protections, investors may be and its rank has slipped lower even though there isreluctant to invest unless they become the improvement in:controlling shareholders. Strong regulationsclearly define: Number of payments in a year Time spent on preparing, filing and paying Related-party transactions Total tax rate Promote clear and efficient disclosure requirements Compared to regional countries, Greece has: Require shareholder participation in major decisions of the company Lesser number of payments required per year Set clear standards of accountability for More number of hours required in filing per year company insiders Higher tax rateOwing to the current and continuing economic Greece has brought about following reforms inand financial turmoil, Greece ranks 155 on the taxation policies:strength of investor protection index. The regionalaverage rank is 62. Greece’s rank has worsened 2012: Reduced corporate income tax ratefrom 153 in 2011 to 155 in 2012 despite 2009: Electronic payment of social security taximproving on strength of investor protection was introducedindex.
  • Business Environment: Greece 9Trading Across Border Has maximum number of procedures Takes maximum number of daysResearches show that exporters in developing Costs lowercountries gain more from a 10% drop in theirtrading costs than from a similar reduction in the There have been no reforms in this regard in recenttariffs applied to their products in global markets. past in Greece.The realm of Cross Border Trade seems to be ingray in Greece. It takes 5 documents, 20 days Resolving Insolvencyand USD 1153 to export a goods container whereas it takes 6 documents, 25 days and USD 1265 A robust bankruptcy system functions as a filter,to import in Greece. ensuring the survival of economically efficient companies and reallocating the resources ofTo understand the scenario better, Greece ranks inefficient ones. Fast and cheap insolvency83 in ease of cross border trade where as the proceedings result in the speedy return ofregional average rank is 33. Also, number of businesses to normal operation and increasedocuments required, number of days required returns to creditors. By improving the expectationsand the cost incurred is maximum and much of creditors and debtors about the outcome ofhigher than the average in Greece for both import insolvency proceedings, well-functioning insolvencyand export. systems can facilitate:There have been no reforms in Greece in the Access to financerecent past to improve cross border trade. Save more viable businessesEnforcing Contracts Improve growth and sustainability in the economy overallWell-functioning courts help businesses expandtheir network and markets. The ease of resolving In Greece, it takes on an average 2 years resolvinga conflict determines the growth of businesses in insolvency and costs 9% of the debtor’s estate. Thea country. average recovery rate is 41.8%.In Greece, it takes 39 procedures, 819 days and Globally, Greece stands 57 in ease of resolving14.4% of the value of the claim to resolve a insolvency. The regional average rank is 27.conflict. The time taken and cost incurred in resolvingGreece ranks 90 in ease of resolving a conflict insolvency have remained constant over the yearswhere as the average rank of regional countries but the recovery rate has decreased continuously.is 37. Though, there has been no improvement in This has led to slipping of the rank of Greece fromthe above stated parameters the rank of Greece 50 in 2011 to 57 in 2012.has improved from 91 in 2011 to 90 in 2012. As compared to other regional countries inAs compared to other regional high income resolving solvency, Greece:OECD countries, Greece: Requires equal costs Requires more time
  • Business Environment: Greece 10 Has lesser expected return employees are taken seriously and dealt with in a paternalistic way.Work Culture in Greece Greek women are treated relatively equal to men and receive little discrimination comparedTo start working in Greece would require a grass to other European countries. Therefore, it is notroot level scenario of work culture and work uncommon to see both women and men inpractices. every level.Working Practices Working Relationships Uniform business hours for retailers across Greek culture is group-oriented. Building deep Greece were set by law in 2005. Business and lasting relationships is therefore very hours are from 9am to 9pm Monday to Friday important for Greeks. and 9am to 6pm on Saturdays. Banks are Personal contacts and networks are normally open to the public Monday to prerequisites for successful business deals. Thursday from 8am to 2pm and Friday from 8am to 1:30pm. The establishment of trust, loyalty and strong bonds facilitates business operations in Greeks have a flexible attitude towards time. Greece. Therefore, don’t be surprised if business meetings or social events begin late. Being Individual actions are rare and seen with patient and including some extra time in ones suspicion. schedule can help business relationships Greeks are usually friendly and warm. with ones Greek counterparts. However, saving face and respecting each Greeks tend to keep a small distance to their other’s honour is essential since Greeks are counterparts during conversations. Physical very proud and easily offended. contact is commonly used to show empathy Business Practices and to emphasize the subject matter. The official language is Greek. Many businessStructure and Hierarchy of Companies people have a very good knowledge of English Business structures in Greece are strictly but Greek language skills are an advantage. If hierarchical which is reflected in the directive one does not have a proficient knowledge of and authoritative leadership style. Greek it is wise to bring an interpreter to meetings. The Greek economy is characterized by large conglomerates run by dynastic families. There is a general distrust of written Greek society is therefore extremely communication. Contracts tend to be rather relationship-oriented and having the right’ simple since amendments are regularly made contacts is essential in order to successfully depending on the needs of either side. conduct business in Greece. Personal contact is essential when doing Management styles in Greece tend to follow business with Greeks. One should avoid the principle of managing people not conversations via the phone or email since personnel. The personal problems of Greeks prefer to conduct business face-to-face.
  • Business Environment: Greece 11 The Greek attitude towards work tends to Corinth started to flourish. They began to trade with reflect the philosophy of ‘working to live’ the Near East and a local production. These two rather than ‘living to work’. The family clearly ports specialized in manufacturing luxury goods. takes precedence over the job. During trade with Phoenicians they learned and Business in Greece is conducted quite slowly evolved their alphabet. due to the importance laid upon the development of personal relationships. Being As time passed, Corinth sent out people to Corfu patient and including extra time in ones and Sicily to capture additional land for agriculture schedule can help business relationships. and in the process established more than 150 colonies.Business Etiquettes: Dos and Don’ts During this period two important city-states i.e. polis DO have printed material in both English and flourished, Sparta and Athens. Sparta evolved to Greek. develop organized structure of government that DO try to learn some Greek. Even though represented every member of the society. many business people speak Basic English, On the other side Athens was on rise. It also had an it is considered a compliment if one attempts organized structure of government but was based to use the Greek language. more on capitalist structure. It also included each DO use every opportunity to socialize with and every member of the society. Greek counterparts. Personal relationships with colleagues are highly valued in Greece. With the evolution of these city-states, Geeks DO avoid controversial conversation topics started celebrating culture and involved themselves such as the name conflict with Macedonia. more into society in economic, religious and DON’T be offended or surprised if Greek political events. They became closer and closer and colleagues enter ones personal space. started feeling more like a unit. They started to DON’T criticize Greek counterparts in front of identify themselves as Hellenes. They referred to all other business colleagues, as this may cause the foreigners as Barbarians. a loss of face and harm their sense of Greece was under attack from Persian ruler honour. Xerxes. Athens and Sparta led from the front and DON’T show an open palm directed at defeated Persians at the battles of Marathon, someone’s face. This may be seen as an Salamis and Platea. insult. An important turn in history took place because ofBrief History of Greece and its Implications these Persian wars. Partners in trade and cultural relations for long Greece and Near East empiresThe culture of Ancient Greece has had a large such as Lydia, Phoenicia and Egypt separated.impact on today’s world, Democracy and the artof debating being the most commonly known. Sparta left the Hellenic League. Athens gained totalAncient Greeks were pagan. control over the league.In the 8th century B.C. two ports, Argos and The History of the Classical Period
  • Business Environment: Greece 12From the 6th to the 4th century BC, Athenian malarial fever.Empire comprised of 172 states. Prior to 6thcentury, the position of citizens in the hierarchy Death of Alexander the Great marked the end ofwas determined by the wealth he possessed. this huge empire and several parts as they existSolon, the law giver and the poet, began sowing today emerged:seeds of democracy and treated all people asequal in the system. The Antigonids in Macedonia The Seleucids in AsiaThe Golden age of Greece, in which Pericles Syria, Persia and the Ptolemies in Egyptruled Athens in 461 BC, democracy wasimplemented to its fullest. He built great After this, the concept of city-states disappearedmonuments including the Parthenon to showcase and larger states came into existence. Greekthe power of Athens and employ the workers. continued to be the official language for administration, literature and trade.Because of growing power of Athens, manystates including Sparta felt afraid and both thestates entered into Peloponnesian Wars, thelongest war of Antiquity. The Athenians weredefeated in this war. This marked the end of theClassical Period.The History of the Macedonian PeriodDuring the Peloponnesian Wars, Macedonia as apower was on rise. Macedonians were Greek butthey spoke a different dialect and had differentsocial and cultural values. The Macedonianpolitical system also differed from the city-statesystem of Greeks; they had a Headman holdingall the power, authority and control.Macedonia rose as a greater power and underKing Philip II conquered Athens and Thebes in338 BC. After assassination of King Philip II thetask of expanding the empire was given to hisson Alexander the Great while he was only 22.Alexander the great was a student of Aristotle.Alexander conquered all the city-states ofGreece. Alexander the Great conquered thePersian Empire, Egypt, Afghanistan and someparts of India. He died at the age of 33 by
  • Business Environment: Greece 13Political above it by the Turkish Turkish Republic of Northern Cyprus that hasGreece is a parliamentary republic that balances been setup on the island of Cyprus is underpower between the administrative, executive and soupjudicial systems. The Republic of Greece holds The Balkan country having the same name asconstitution as the highest law. Greece’s popular country Macedonia is a burning controversyPresident is the head and holds the responsibilityfor all the actions. President is chosen by the Greece is a member of big and powerfulmembers of the parliament for five years and he international organizations, including:should get two thirds majority to come to power.President chooses the Prime Minister and then The Council of Europeboth of them select rest of the ministers. The European UnionPresident has rights to Veto the laws passed by The Union for the Mediterraneanthe parliament. The United Nations, of which it is a foundingAfter Democracy was restored, Greece’s political membersystem became a two party system. The majorpolitical parties in Greece being: New Democracy – Liberal Conservative Panhellenic Socialist Movement – Social Democratic Communist Party of Greece Coalition of the Radical LeftCurrent Political EnvironmentMinistry of Foreign Affairs conducts the foreignpolicies of Greece. It is administered by theMinister of Foreign Affairs. To help restore thehistorical ties, Finance Ministry has started aregional policy to promote peace and stability inthe Middle East, the Balkans and theMediterranean.Three main issues have been identified byMinistry of Foreign Affairs which are ofimportance of Greece: Claims over the Greek region, as per the MInistry, of Aegean Sea and the airspace
  • Business Environment: Greece 14Economic during the 1950-70 period. The economy grew at a steady rate in this period, outperforming theGreece has the 34th largest economy by Nominal European countries. The growth peaked at 5.9% inGDP and the 42nd largest by PPP. In the 2003 and at 5.5% in 2006.European Union Greece fits as the 15th largesteconomy in the 27 nations. Due to the late-2000s financial crisis and the European sovereign debt crisis, the GreekBeing a developed nation it has a high per capita economy when into recession and the growth ratesincome of $27,875. This was the scenario till went down to -7.1% in 2011, 4.9% in 2010 and -2.82011 but now the economy has fallen into a rot. in 2008. The public debt in 2011 was {355.658 billion (170.6% of nominal GDP). It has beenThe economy was heavily dependent on Service lowered to 280 billion (136.9% of GDP) in the firstsector, contributing a huge 85% of its GDP, the quarter of 2012.Industry with 12% and agriculture with 3% makeup the rest. Tourism is a major source of incomefor the country as it’s the 7th most visited in theEuropean Union and the 16th most visited in theworld. Greece is the largest economy in theBalkans; its economy is bigger than all the otherBalkan states combined.Greece which was the founding member ofOrganisation for Economic Co-operation andDevelopment (OECD) and the Organization ofthe Black Sea Economic Cooperation (BSEC), isan important player in European Union.In 1979 the accession of the country in theEuropean Communities and the single marketwas signed, and the process was completed in1982. In January 2001 Greece adopted the Euroas its currency, replacing the Greek drachma atan exchange rate of 340.75 drachma to the Euro.Greece is also a member of the InternationalMonetary Fund and the World TradeOrganization, and is ranked 31st on the KOFGlobalization Index for 2010 and 34th on theErnst & Young’s Globalization Index 2011.Greece had suffered huge losses in the SecondWorld War and the economy was in shamblesafter the war. But it recovered miraculously
  • Business Environment: Greece 15Technological Many MNCs like Siemens, Coca-cola, Motorola and Ericsson have their global R&D headquarters in thisIn Greece, General Secretariat for Research and country due to its political and economic stabilityTechnology (GSRT) is the main body which takes along with the highly qualified workforce and bettercare of all the design, implementation and strategic location. Main technology parks of Greecesupervision of the national research and are:technological policies. GSRT comes under theministry of Development. In case of The Science and Technology Park of CreteTelecommunication sector of the country, it has The Lavrio Technology Parkensured that the modern, completely digital, Thessaloniki Technology Parkinformation and communication network is Patras Technology Parkavailable in all areas. Greece is the sixteenth member of EuropeanThere is a wide range network of fiber optics to Space Agency (ESA) and received the membershipmake availability of broadband internet in 2005 after the cooperation that started in 1990swidespread. In the early 2011, there was 20% between ESA and Hellenic National Spacepenetration recorded in terms of number of Committee.broadband connections. According to the data ofone survey, 54% of the household in Greece Intellectual Property Rightsuses the internet regularly and among themaround 95% have broadband connections. The only legal and qualified institution which protects inventions and industrial designs isThe country has so strong network that you can Hellenic Industrial Property Organization (IBO). Itfind 3G cell phone connections and Wi-Fi was established in 1987. It provides technologicalconnection almost everywhere in the country. information using worldwide patented databases.Multiplayer gaming, office application and net Thessaloniki, Patra and Heraklion-Crete, the threeaccess provider internet café can be easily sight electronic patent libraries are also operated by IBOin the country. Mobile internet usage has seen a which promote the technological information. IBOvolcanic increase of 340% in 2012. Greece is also contributes to the industrial and technologicalranked among top 30 countries with a highly development of Greece and provides importantdeveloped information and telecommunication services in the industrial property field as well.infrastructure by United Nations InternationalTelecommunication Union. Research Bodies Supervised by GSRTThe country has increased its spending on the National Observatory of Athensresearch and development related activities over Hellenic PASTEUR Institutethe last decade from .38% of GDP in 1989 to National Centre for Scientific Research.65% of GDP in 2001 but it is lower than the The national Hellenic Research Foundationaverage spending of the European Union. Even Biomedical Sciences research Centreshaving the spending lower than the EU’s average Centre for Research and Technologyspending on R&D, country has seen third highest Foundation for research and technology –increase in the terms of percentage in Europe.
  • Business Environment: Greece 16 Hellas Centre for Renewable Energy Sources National Documentation CentreTechnological 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 TechnologyThere are lots of renowned scientific andtechnological institutes in the Greece that helpthe country grow in the field of scientific researchand technological development. Different fundsand scholarships are available which help thestudents in getting the education of their choiceand innovation relay centre helps the innovationminds to come up with new technologicalinnovation to impart the technologicaldevelopment in the country.
  • Business Environment: Greece 17Legal European Community Law and the Greek legal orderGreek laws still follow civil law tradition. Creationof Greek state in 1980 was the result of national Greece has actively participated in process ofrevolution of 1821 which was against Turks. Civil European unification which was signed and ratified(private) and public law are the two most by the Greek Parliament in 1979 with a majority ofimportant divisions of Greek legal order. Public 193 votes out of 300. The legal basis forlaw consists of all constitutional, criminal and incorporation of Community Law into Greek Legaladministrative to international law. The general order is provided by Article 28 of the Constitution ofprinciples of civil law are the law of succession, 1975. A pervasive affect has been seen on Greeklaw of obligations to property and family law and legal order by European Community Law andthe various branches of commercial laws. The whenever required the Domestic Law is firmlyimportance of civil law has diminished over time adapted to the provisions of Community Law.as the heart of the legal system. Governmentalinterventions are the aspects which covers the The Protection of Environmentexpansion of state for administrative regulation. There are some important provisions in theCommercial code, Civil Code, code of civil, Constitution to protect environment. It is the duty ofmilitary penal code and criminal procedures in the state to provide protection to the environmentcode of private maritime law and penal code are by adopting special preventive or repressivethe some modifications in Greek law. Principles measures. In the Article 24 of constitutionof autonomy, freedom of contact civil and private measures are provided for urban planning as wellproperty are some of the principles for Byzantine as protection of forests. Such provision forlaw. environment by the Constitution is broadlyThe Constitutional Tradition interpreted by the Council of State, and has greatly contributed to the development of environmentalGreece is known for a long constitutional Law by its jurisprudence in Greece.tradition, with a written constitution. After fall ofthe dictatorship of 1967, the present constitution Social Justicewas enacted since June 1975 and re-establishing Protection of family, motherhood, childhood, youtha democratic government in country. On the and poor members of society is provided byprinciple of popular sovereignty it shows a constitution and also guarantees social rights. Therepresentative democracy where the President is basic mission of state is providing education and allelected by the Parliament and the Prime Minister the citizens of Greece are entitled to free educationand his cabinet s responsible to Parliament on all levels of educational institutions and atelected democratically. A freedom is given to university level education is provided exclusively byestablish party in a multiparty system. A secret fully self-governed legal persons of public law.and universal ballot is used to elect the Right to work is proclaimed by the Constitution otParliament. After the amendments of 1986 the everyone and hence they are entitled to pay forPrime Minister has been a center locus of power work of equal value irrespective of their sex or anywhereas the President is left as a role of other distinction.ceremonial.
  • Business Environment: Greece 18Court structureIn the Article 20 part 1 of the constitution, whichenvisages on the right of access to the courts,where every person is entitled to get legalprotection by the courts and may plead beforethem his views concerning his rights andinterests. There are three levels of courts inGreece. First, Civil and criminal courts whichhave jurisdiction over civil and criminal matters,where the same judges sit and judge eithercategory of cases; and administrative courts havejurisdiction over administrative controversies.Other special courts are: three types of ordinarycivil courts: District, twelve courts of appeal andthe Areios Pagos.So the Greek Constitution structure isnevertheless affected by German FundamentalLaw (Grundgesetz). It can be seen clearly thatthe Greek Constitution is striking an aims tomaintain an extremely difficult balance betweenimperatives of a free market economy and theneed for public intervention to the economic life.It can’t be cancelled out totally the contractualfreedom and institute for instance a system ofpublic attribution of real estates.
  • Business Environment: Greece 19Environmental Firewood is an inefficient source of energy and on burning; it produces a lot of smoke. Firewood nowGreece is currently suffering from economic being burned by a vast number of people hasdepression, and this has adversely affected the resulted into low lying smog covering Athens andenvironment of Greece. Currently three major other urban cities of Greece. Many have alsoenvironmental problems have troubled Greece. resorted to burn furniture wood and even salvaged wood that contains noxious varnishes. Illegal Acid Rain chopping of trees has increased too. Deforestation Air Pollution Air Pollution Because of rapid deforestation and people burningAcid Rain firewood, the level of air pollution has risen toAcid rain is rain which is acidic in nature. Acid serious levels in the country. A study by therain is caused by pollution in atmosphere which University of Thessaloniki concluded thatmakes the rain water acidic. Because of acidic in concentration of dangerous fine particles in the airnature, acid rain affects and harms agriculture, surrounding the country’s second largest city waslakes, man-made buildings and human health. twice the safety standards. In Athens, particulateAcid rain has now become a widespread problem level have been recorded thrice the normal levels.in Athens. Its famous ancient monuments like Athens medical association has warned theParthenon, has deteriorated and holes can be government that this high level of pollution willseen in its stone. increase the sickness level of population which isDeforestation already on the verge of poverty. Their argument is that cost of treating the people is much higher thatAfter 2009, there is a serious rise in deforestation allowing full subsidy on natural gas and heating oil.in Greece, which even surpasses the Nazi perioddeforestation. Prior to that, summer fire of 2007 Though in a recent report in Dailymail.co.uk, it hasdestroyed significant proportion of forest in been reported that air pollutants like nitrogenGreece. dioxide and sulphur dioxide has decreased by drastic 40 percent since 2008. The reason behindThe austerity measures undertaken by this is economic crisis which has led to shutdown ofgovernment of Greece has resulted into very high industries and people finding it unaffordable to driveprice of fuel oil, with government raising taxes on a car. Around 30% of small scale industries haveheating oil to as high as 450%. Because of this, shut down after economic crisis. Because ofthe heating cost of an average small apartment in increase in fuel prices in the country, fewer areGreece shot up from $1300 to $1900. Firewood choosing to use their cars.is available at half the price of heating oil. Even though levels of air pollutants like nitrogenThis has resulted to people using firewood dioxide and sulphur dioxide has decreased, heaveinstead of heating oil to heat their apartments. smog covering cities and high particulate matter inBurning firewood is cheap but it has its own toll. air will increase the health hazards and expense on on
  • Business Environment: Greece 20healthcare.Current PoliciesGreece is a member of Kyoto Protocol. Being amember of Kyoto Protocol, it has to cut downcarbon emission; but Greece has failed to do so.With economy in ruins, it is difficult for the countryto cut down emissions and boost industriessimultaneously. Many are critical over the policiesimplemented by the Greece government andhave claimed that the government has notimplemented policies in owning interest of largeorganizations.The Government has also been criticized for itswaste management plans, even by Mayor ofAthens. Because of high taxes on oil, peoplehave started to use firewood to keep theirapartments warm in this winter. Government istrying to discourage use of firewood, as it isresulting into thick smog over major cities.
  • Business Environment: Greece 21RecommendationsGreece has various strengths in business areasthat 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.
  • Business Environment: Greece 22AnnexureExpenditures for social protection as a percentage of GDPIndustrial production (manufacturing) in Greece (2009) Production Production Rank Rank 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 –
  • Business Environment: Greece 23Largest Companies in Greek Economy Forbes Global 2000 Revenues Profit Assets Market valueRank Company (US$ billion) (US$ billion) (US$ billion) (US$ billion)1 National Bank of Greece 12.42 2.15 140.48 11.782 Eurobank EFG 11.97 0.86 113.92 4.483 Hellenic Petroleum 9.68 0.25 8.23 3.404 Coca Cola Hellenic 9.37 0.57 9.75 9.025 Hellenic Telecom 8.34 0.56 15.94 5.856 Public Power Corporation 8.11 −0.43 19.40 3.627 OPAP 7.69 1.01 1.92 6.518 Alpha Bank 6.94 0.71 90.26 5.099 Piraeus Bank 6.21 0.44 75.95 2.90 1.1310 Bank of Greece 2.66 0.31 98.58
  • Business Environment: Greece 24Referenceshttp://francais.doingbusiness.org/~/media/fpdkm/doing%20business/documents/profiles/country/grc.pdfhttp://en.wikipedia.org/wiki/Greecehttp://www.nationsencyclopedia.com/WorldStats/ADI-starting-minimum-capital.htmlhttp://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Greece.pdfhttp://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.htmlhttp://www.dailymail.co.uk/news/article-2258612/Financial-crisis-Pollution-falls-40-cent-Greece-2008.htmlhttp://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