Greece: Business environment at a glance

Greece: Business environment at a glance. Check it out:

(EIU Viewswire Via Thomson Dialog NewsEdge) COUNTRY VIEW

FROM THE ECONOMIST INTELLIGENCE UNIT

Policy towards private enterprise and competition

2006-07: Further reorganisation of state enterprises along private-sector lines, although this has already happened in many state firms. Privatisation and liberalisation are not likely to accelerate until after the next election.

2008-10: More effective implementation of EU legislation, but aspects of competition policy still subject to lobbying.

Policy towards foreign investment

2006-07: The Hellenic Centre for Investment will try to reduce obstacles to direct investment. New investment law will try to promote high-tech investment and high-end tourism.

2008-10: Greece will intensify efforts to promote itself as a good location for foreign companies to launch business operations in the Balkans, but foreign direct investment will be limited.

Foreign trade and exchange controls

2006-07: Trade regime will remain liberal, except in agriculture, where tariffs and quotas will stay in force.

2008-10: Low chance of success in reaching a new agreement on global trade liberalisation. Trade liberalisation continues, albeit slowly, through unilateral, bilateral and regional arrangements.

Taxes

2006-07: The complex and opaque tax system will be modernised and streamlined. Corporation tax and personal income tax to be cut further. Continuation of efforts to curb tax evasion and avoidance.

2008-10: Fiscal practice will come closer into line with the rest of the EU. Tax evasion will be further reduced.

Financing

2006-07. Some further consolidation of the banking sector may take place. Increased foreign presence.

2008-10: The broadening and deepening of the Athens Stock Exchange will continue.

The labour market

2006-07: Higher wage increases than elsewhere in the euro area. Opposition to more flexible working practices.

2008-10: Labour costs remain among the lowest in the EU, but still higher than in new EU members from central and eastern Europe. The power of trade unions will decline slightly. Moderate wage increases.

Infrastructure

2006-07: Completion of another line of the Athens metro extension. Public-private partnerships (PPPs) will result in new hospitals and schools, as well as new tourist facilities.

2008-10: Improved transport links with Balkan neighbours with the help of EU funds. Gas conversion of power stations.

Copyright 2006 Economist Intelligence Unit

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September 29, 2006 12:45 AM

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