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Industry should be among the Government’s
policy priorities
The worsening of Greece's position in the international ranking of the
IMD’s annual World Competitiveness Yearbook for 2009 confirms what all
the manufacturing organisations in Greece have been saying about the
competitiveness problems of the Greek economy.
In times of economic crisis, such as the current one, it is vital for
measures to be taken immediately to support the country’s producers
along the lines of other European countries, and above all for the
entire political system and society to wake up to the progress and
future of the country’s economy.
The State’s sensitivity to the tourism, building and car retail sectors,
which are important for Greece, must also be extended to the
manufacturing sector. The myth that Greece has no industry needs to be
demolished, since official data shows that a significant proportion of
regional GDP comes from industrial activities, whereas a large part of
Greece’s workforce is involved in industry. In Northern Greece in
particular, manufacturing companies are the most important sector of the
local economy and are key players in social cohesion.
Given the current negative climate, a survey conducted by the Federation
of Industries of Northern Greece among its members showed that the drop
in production in many manufacturing sectors in Northern Greece is as
high as 80%, while liquidity is the number one problem for businesses in
the Northern Greece region. Moreover, forecasts for the next six months
are far from favourable since more than 50% of businesses which took
part in the survey claim that the number of unpaid cheques will increase
in the second half of 2009.
It is therefore clear that during the current economic crisis, industry
is the sector of the economy which has been hit more than any other in
Greece. That is why industry must return to the very centre of
government policy in practical terms.
Against that background, the Ministries of Economy & Finance and
Development need to take appropriate measures in order to place Greece’s
production base at the centre of the development process. The General
Secretariat for Industry must change focus. Instead of managing
financing programmes, it must reinstate its role of producing and
implementing industrial policy. We propose an (indirect) sectoral policy
of aid for dynamic manufacturing sectors (and if viable for vulnerable
sectors too such as agricultural produce), while at the same time
highlighting the comparative advantages of various areas and regions of
Greece in a manner comparable to the policies followed by other European
countries.
They include measures such as: providing Greek State guarantees for new
loans for manufacturing companies outside the scope of the Credit
Guarantee Fund for Small and Very Small Enterprises (TEMPME), extending
the period of grace for loan guarantees for border areas, supporting
employment via special training courses which bolster the income of
employees affected by reduced working hours, abolishing the 0.6% levy on
loans and reducing the property tax for industrial plants and warehouse.
All these measures could forestall the emergence of unfavourable
developments, especially if one takes into account that many businesses,
especially in the regions, are just about ticking over.
Direct measures to support the real economy at this time must be taken
by this government.
However, the structural problems of the Greek economy also require a new
outlook on things from the entire political system.
A vital condition for bolstering the competitiveness of the Greek
economy is universal re-evaluation of how the State functions, with the
aim of creating modern structures which reflect the needs and
requirements of modern society and the modern economy. Something like
that is not feasible without a clear cross-party agreement.
Previous President's Messages
A New Year showcasing GREEK VALUE
A new year, with changes in the state and society
Change of Prime Minister accompanied by new expectations about a way out of the financial crisis
Zero profits for processing industries in Northern Greece in 2010, with one in three businesses reporting losses
Only daring decisions will take the country out of this impasse
The Federation’s Proposals for development
The need to take measures to immediately bolster the economy and improve business competitiveness
A new year – new expectations for growth and development
Developmental measures to offset unemployment benefits with job subsidies
Enhancing "Greek Value" by resolving problems that drag on
Greece’s rise in the IMD World Competitiveness Yearbook ranking is encouraging news amidst the crisis
The Federation of Industries of Northern Greece making a decisive contribution to manufacturing strategy up to 2020
The government's immediate priorities in 2010 to develop the infrastructure in Thessaloniki and boost the competitiveness of manufacturing enterprises
Expectations from the new government: the manufacturing sector should be the new government’s focus
Industry should be among the Government’s policy priorities
Industry centre stage again
Proposals for avoiding the financial crisis
Bold decision-making for avoiding the financial crisis
Prospects for growth in Northern Greece in an environment of international crisis
Investment Law and Northern Greece
The market of izmir: the next goal for outward-looking enterprises of
northern greece
The
new government’s aspirations for thessaloniki and northern greece:
fing’s proposals for development
Thessaloniki and Northern Greece in International Markets
Regional
development policy as an engine for local industrial development
Global
orientation, productivity and realistic management of the National
Strategic Development Plan (NSDP). The challenges for 2007
Investment Law and Northern Greece
The new
legislative framework for research and technology in Greece: a
government nod of approval for the proposals made by the Federation of
Industries of Northern Greece (FING)
Thessaloniki has the potential to become the second pole of development
for Greece and the headquarters for development organizations nationwide
Changing
attitudes to combat unemployment – Proposals for creating closer links
between education and production
Support
for the Regions: From now on, policy actions and not just policy
announcements
The
business community – a force for social cohesion in Northern Greece
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