Άρθρο του Υφυπουργού Εξωτερικών Δ. Κούρκουλα
στην ετήσια έκδοση του περιοδικού GREEK EXPORTERS
Three and a half years ago, in October 2009, the music
suddenly stopped for Greece. Following a decade of impressive
and almost uninterrupted growth, Greece announced that its
annual deficit would exceed 12%. In turn this caused a sharp
downgrade of Greek bonds effectively locking the country
outside of the global markets. Today, Greece is back on track.
Although the crisis is not over yet and Greece is not back to the
markets, substantial progress has been made and recovery is
progressing. Crucially, a significant part of the said recovery
involves an export driven growth strategy.
How did Greece got into this mess originally? The 2009 market
lockout was ultimately the result of both external and internal
factors coupled with policy failures at various levels. The subprime bubble that popped in October 2008 created a trend
toward global deleveraging, casting doubt into the credit
practices of Greece and other countries. A fully fledged
economic union might have been able to overcome the
impasse; however, the Eurozone was, and still is, merely a
monetary union.
Even more problematic was the situation that had evolved
since the adoption of the Euro a decade earlier. Greece had,
what amounted to, an unsustainable development model
based on internal demand fueled through cheap credit. This
situation was strengthened through the complacency of the
private sector. Why bother with exports when you could reap
greater profits by selling domestically? Consequently, Greek
producers failed to catch up with the international competition.
The domestic market oriented model was just limited to meet
the needs of the national economy, even with the everdecreasing percentage contribution to the total national
expenditure. The problem with this approach, of course, was
that when domestic demand suddenly collapsed in 2009, so did
the only existing market for Greek products.
The exit strategy formulated involved important structural
reforms. Today, three years after the beginning of the
painstaking effort to restore the country and its economy,
economic indicators show signs of recovery. The budget deficit
has decreased from 15.6% of the GDP in 2009 to 6% in 2012.
Exports have increased from 17.5 billion € in 2009 to 27.6
billion € in 2012 which amounts to an all time historical record.
Equally important is the fact that the ratio of exports to GDP
almost doubled within the last four years. That is, from 7.6% in
2009 to 14.3% in 2012.
These achievements were not driven solely by necessity. They
also reflect the fact that since 2009 Greece has recovered 80%
of the loss of competitiveness endured since entering the
Eurozone. Moreover, they are a strong indicator that Greek
entrepreneurs and products are fully able to compete in global
markets. In effect they are tantamount to a vote of confidence
in the quality and competitiveness of Greek products.
To facilitate this process the Ministry of Foreign Affairs has
refocused its attention. The promotion of economic diplomacy,
including export oriented actions is now priority target number
one. The underlying assumption is that the aim of modern
diplomacy is to ensure the welfare of the country both in social
and economic terms.
At the level of EU institutions Greece is active in shaping the
common commercial policy, which is an exclusive competence
of the EU. The upcoming Greek EU Presidency in the first half
of 2014 will provide further opportunities to promote the
Greek commercial interests on various occasions, such as
negotiations for signing free trade agreements with Canada,
China and, later on, the US and Japan. It should be noted that
the promotion of EU exports will be one of the main themes
treated by the Greek presidency.
Furthermore, as part of the negotiations for the Multiannual
Financial Framework, Greece was able to secure significant
funds which will have an important impact in export promotion
efforts in the years to come. For the Multiannual Financial
Framework covering the period 2014-2020, Greece is expected
to have access to resources amounting to a total of 16.5 billion
€. To this amount must be added 3.7 billion € from the Rural
Development Fund and 200-250 million € from the Maritime
and Fisheries Fund. Overall, the Greek economy will be
financed from Community funds with 20.5 billion € for the next
seven years. It must be noted that this has been achieved
despite the fact that initial projections were not at all favorable
for our country.
For individual exporting firms the Ministry offers a full range of
services to support their activities. At each Greek Embassy and
Consulate Greek firms have access to the Economic and
Commercial Affairs Offices. The aim of the Economic and
Commercial Affairs Offices is to provide cutting edge market
intelligence and in situ support to Greek enterprises operating
in foreign markets. The services provided are absolutely free.
This is a significant advantage especially for small and medium
enterprises which might not have access to the financial
resources required in order to hire advisors to provide such
services. In addition to that, the Ministry of Foreign Affairs
organizes “Business Contact Days” in Athens where potential
Greek exporters can become familiar with the economies of
specific countries and the export opportunities. It should be
noted that the above mentioned services are certified by ISO.
The crisis, our country is going through today can turn out to
be, the undesired effects notwithstanding, a new starting point
of the Greek economy and society¨ because, what is required
beyond reforms in the institutions, are changes to our
mentality. Our crisis now sets our new patriotic duty, which is
to build a stronger, more competitive and more self-reliant
Greece. Exports have shown in recent years that, together with
tourism, they can play a central role in this new Great Idea of
our country. The Ministry of Foreign Affairs will be close to the
Greek exporters in order to win the battle of extroversion.