High taxes and social security contributions, Greek bureaucracy, high energy costs and unclear and dysfunctional zoning laws are the factors that have led to the contraction of the local manufacturing sector, according to a study by the Foundation for Economic and Industrial Research (IOBE).
The study, which was presented on Tuesday in Athens with the support of a new entity called Hellenic Production – Council of Industries for Growth, stressed that manufacturing could have been the main factor in an economic rebound.
“It is obvious that manufacturing has for many years been a second or third priority. There is a part of the political system in this country that will not even mention the word industry,” said Michalis Stasinopoulos, a Viohalco board member who was among the people behind the creation of the Hellenic Production initiative.
The study showed that Greek manufacturing has a long way to go before reaching the European target of a 20 percent contribution to the country’s gross domestic product by 2020, while the existing profile of the domestic manufacturing industry does little to assist in terms of meeting the target for growth and strengthening competitiveness.