ECONOMY

Energy costs hamper manufacturing’s growth

energy-costs-hamper-manufacturing-s-growth

Energy costs, overtaxation, non-salary costs, problematic financing and licensing are the five main obstacles preventing Greek manufacturing from gaining sustainable momentum, according to a Foundation for Economic and Industrial Research (IOBE) survey.

At the presentation of the think tank’s report, the president of the “Hellenic Production – Industry Round Table for Growth” initiative, Michalis Stasinopoulos, noted the perennial absence of industrial policy in Greece, and set the transition to a balanced growth model with a robust and competitive production base as an “absolute national priority.”

Energy costs are the biggest obstacle to increasing the competitiveness of Greek manufacturing. Based on wholesale electrical energy market data in European Union countries, power in Greece cost almost 30 percent more than the bloc’s average in April-June.

The study estimates there can be no solution without reforms, appropriate incentives and the required investments in the energy market. It also calls for the immediate transition to a competitive energy market along EU lines, for the operation of an energy exchange market, the expansion of industry support measures and industrial power rate cuts, among others.