Reindustrialization: Vital for growth and a key challenge for the Greek economy under new global conditions

Reindustrialization: Vital for growth and a key challenge for the Greek economy under new global conditions

In recent years, every continent and economic bloc has increasingly prioritised the reinvigoration of the economy through production. The expansion and modernization of the industrial base with a special focus on new green and digital technologies is at the epicenter of global competition – against a background of growing geopolitical and geoeconomic tensions and realignments.    

In our case, the chronic decline in productive and extroverted economy over the previous decades created “twin deficits” and contributed to the collapse and the crisis. 

Conversely, the significant progress made by Greek manufacturing in recent years has been instrumental in stabilizing the economy and reducing unemployment.  

Old stereotypes about the country’s unsuitability for industrial production have proved utterly wrong. Exported products currently bring significantly greater foreign revenue into the country than other sectors of the economy. 

Greece needs strong and sustainable growth but unfortunately, despite the progress made in recent years, the country’s productive base and exports rate are still far behind the European average, as can plainly been seen just by looking at the figures. Industry, both large and small, must – and clearly can – offer much more in terms of growth, qualitative employment, and higher incomes at a national and local level. 

The recent general elections and the forthcoming return to investment grade status have created a favourable environment that not only allows us to tackle chronic deficiencies in order to ensure the real convergence of Greece’s economy with Europe’s but behoves us to do so. Real convergence means an economy that is more productive, outward-looking and internationally competitive, creating national wealth and social cohesion. Industry has all these characteristics and Europe’s official strategy is now to strengthen it in the framework of a more balanced and productive growth paradigm. 

A key priority is to deal with long-term problems that have proved to be obstacles to competitiveness for Greek industry and which have unfortunately been maintained either through indifference or through a lack of knowledge and strategy. Matters such as energy costs, tax treatment of investments, non-wage costs, access to competitive financing, the challenges of green transformation, flexibility in a labour market that is in transition, and the well-known issues concerning the business environment (justice, licensing process).

The speed of technological changes amidst intensified global competition and challenges obliges us to responsibly redefine our priorities. This applies to all of us: the state and its institutions, society, and of course the business community and its own institutions. 

In the period ahead, the production sector in Greece is looking forward to seeing concrete elements of an industrial policy that would give boost to production, exports and investments, allowing industry to effectively respond to current and future challenges and significantly contribute to a more resilient and globally competitive economy.  

The company at a glance

Viohalco is a holding company involved in the production of aluminium, copper, cables, steel and steel pipe products, with production in eight countries and exports to more than a hundred. The key pillars of the group’s strategy are the development of know-how and pioneering technology, as well as sustainable growth, corporate social responsibility and the continuous training and development of human resources. 

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