Monday November 24, 2014 Search
Weather | Athens
14o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece considered more risky to invest than Syria

By Pan Pylas

The world's markets may believe that the worst of the financial crisis in Europe is over after three turbulent years, but those people who control the purse strings of the world's businesses are not breathing any easier.

An annual survey of finance directors from global business consultancy BDO finds that the crisis over too much government debt in Europe remains one of their key concernsso much so that Greece is considered a riskier place to invest and set up business in than war-torn Syria.

Only Iran and Iraq are considered more risky than Greece, which also struggles to convince its international creditors that it deserves bailout loans to avoid bankruptcy and a possible euro exit.

"CFOs are becoming increasingly wary of Southern Europe, parts of which they now see as risky as the politically unstable countries of the Middle East, said BDO chief executive Martin Van Roekel.

Greece isn't the only country in the 17-country group that uses the euro in the survey's top 10 riskiest countries to invest in. Spain, which even as the eurozone's No. 4 economy with a long-standing relationship with Latin America, stands at No. 7.

This reluctance by finance directors, particularly from fast-growing economies such as Brazil and China, to invest in Europe's indebted countries goes to the heart of the financial crisis. A major part of these countries' recovery is dependent on the private sector stepping in to fill the investment gap left by cuts in government spending.

While countries like Greece and Spain are struggling to convince international business that they are good places to invest, others are prospering. Despite recent signs of slowing down, China is considered the most attractive country for expansion, closely followed by the U.S. Others such as Brazil, India, Germany and the U.K. also feature in the top 10 of countries ripe for expansion.

Overall, the survey from BDO found that CFOs around the world are finding it more difficult to conduct business abroad. As well as an uncertain global economic situation, they cite increased regulation and greater competition.

Van Roekel also said he is surprised that more finance directors haven't voiced concerns about the heavy debts of countries outside of Europe, notably Japan and the U.S.

Though Japan's debt is worth around double the size of its economy, the country has managed to avoid stoking too many investor concerns because most of its self-financed by its own pension funds.

The U.S., which has the advantage of having the dollar, the world's reserve currency, has problems of its own and the winner of the presidential election, whoever it is, will soon have to grapple with the fiscal cliff"a package of huge tax hikes and spending cuts that will automatically be introduced if the different arms of government don't come to a budget agreement.

BDO surveyed 1,000 CFOs from medium-sized companies currently planning foreign investment.

[AP]

ekathimerini.com , Monday October 29, 2012 (09:23)  
Traders eye developments with creditors
ILO calls for urgent action in Greece to create jobs, tackle social problems
Draghi urgency for ECB action gets final reality check
Greece to scrap need for permits in some 900 professions
Thessaloniki man sentenced to 20 years for German school hostage crisis
A 55-year-old man in Thessaloniki was sentenced to 20 years in jail on Monday for taking hostages at a German school in the northern Greek city in 2009. Costas Arabatzis kidnapped the school...
Rifle used in Piraeus shooting not connected to previous attacks
A Kalashnikov assault rifle used in a shooting at a bar in Piraeus early on Saturday is not connected to any previous attacks, police experts said on Monday following ballistics tests on bul...
Inside News
BASKETBALL
Olympiakos ends PAOKs unbeaten run in Basket League
Olympiakos put an end to PAOKs unbeaten run in the Basket League with an emphatic win at the Peace and Friendship Stadium, leaving Panathinaikos as the only team with a perfect record so fa...
INTERVIEW
Tokyo hopes to change the world
The 2020 Summer Olympic and Paralympic Games in Tokyo will serve as a springboard for the rebuilding of Japans image and economy following the triple blow of the earthquake, tsunami and nuc...
Inside Sports
COMMENTARY
Extremism from a bygone era
There are times when we seem to be overcome by self-destructive madness. I hear various commentators and politicians speaking in extreme terms of a junta, of defections, gallows, collaborato...
EDITORIAL
No call for more games
Psychological warfare has been a part of the negotiations between the troika and Athens from the very start of the crisis. But the situation is much different now and troika decision-makers ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Thessaloniki man sentenced to 20 years for German school hostage crisis
2. Rifle used in Piraeus shooting not connected to previous attacks
3. Professor convicted over accepting bribes to pass students
4. SYRIZA denies reports of Tsipras dining with Angelopoulos-Daskalaki, Latsis
5. Teenager arrested over Facebook profile featuring indecent images of girls
6. Traders eye developments with creditors
more news
Today
This Week
1. Scientists expand excavation of ancient Amphipolis
2. Greek officials to meek troika chiefs in Paris to break review stalemate
3. Police seek to name man who opened fire with AK47 at Piraeus bar
4. EU said to plan 21 billion-euro risk-sharing fund for investment
5. Biden informs Anastasiades about content of talks with Erdogan
6. Countdown to missed opportunity for EU economy
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Anti-junta uprising anniversary to be marked amid tight security
4. Every age has its collaborators
5. Give Greece a chance
6. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.