By Evgenia Tzortzi
Tax reductions for individuals and corporations, a further drop in social security contributions, the promotion of labor market flexibility, support of enterprise incubators and accelerating and improving the application of justice are among the measures included in Greece’s national growth model whose draft was presented at Thursday’s Euro Working Group meeting.
The draft describes policies that should be followed in sectors where the country has a comparative advantage and can support the economic recovery, including tourism with the attraction of more investments and the development of niche categories such as medical tourism.
In the primary sector emphasis will be placed on increasing manufactured agricultural products and their promotion in international markets, while in the energy industry the priority is improving the energy mix, along with the management of mineral wealth, the sustainable utilization of renewable energy sources, better waste management and energy saving.
The country also has an advantage in transit trade, combined transport and the shipping sector, while the industrial domains with exporting prospects are those of metals and construction materials, along with the pharmaceutical industry. In addition, Greece could become a regional center for supplying specialized technical and consultancy services for Central and Eastern European countries.
Besides the economic sectors, the model lays out horizontal initiatives the government should take aimed at “the radical change of the country’s production structure within a decade, through the redistribution of resources in favor of investments, the increase in employment and the export of a large part of the output produced.”
The model is based on studies conducted by the Center for Planning and Economic Research (KEPE), the Foundation for Economic and Industrial Research (IOBE) and McKinsey, and will be presented in full at the next Eurogroup meeting on May 5.