Reichenbach expects 65,000 lockdowns

The EU task force calls for less state support in the private sector. In the development sector, Reichenbach’s plan provides for a systematic attempt to create the conditions for future investment and development in the export sector. According to this, there is an urgent need for the removal of regulatory and administrative constraints that restrict the markets and suppress opportunities. Greek State authorities and organisations must be organized and staffed to implement development-friendly business policies

As noted in the quarterly progress report for the Greek economy, “the difficult economic conditions and uncertainty have a negative effect on Greek companies. The number of new companies is in a vertical drop. It is estimated that since the beginning of the crisis, 60,000 businesses have shut down. This number is expected to double by the end of the year”.

It is noted that “a lot can be done to create the conditions for a competitive and dynamic business environment that can be a “locomotive” of future development and prosperity”.

During the past decade the trade deficit of Greece exceeded 10% of the GDP. Despite the upturn in exports of goods and services after 2010, further crucial reforms are required to create a model of growth that will be based more on exports.

It is noted that the three following challenges will have to be addressed:

- gradual reduction of administrative barriers: customs inspections are demanding and the procedures time consuming. 20 days are required in Greece on average, compared to 10 days in Europe. Before proceeding to exports, traders are required to fill out complicated forms and sometimes have to turn to 10 different ministries and 30 agencies. Exporters are not able to complete and forward their documents electronically. 

- Greek authorities must simplify all procedures before clearance by the end of 2012. The aim is to create the possibility of electronic processing of simplified procedures. Regarding customs, the number of audits must be drastically decreased by the end of 2012. There will be an electronic customs system and the task force will coordinate the technical help to the Greek authorities in 2012 and 2013, developing a comprehensive export strategy: various ministries, associations of exporters, banks and professional organizations offer support in various forms (e.g. information about promotion and help before the sale, trade tools, trade fairs). 

Officials’ efforts aim at the improvement of coordination of these support services, which could result in a request for technical assistance on a number of issues addressing the economic difficulties: Greek companies face serious problems in finding additional liquidity, which block their efforts for cross-border transactions. VAT State refunds are very slow, taking up to two years. The credit insurance of exports filed by Greek exporters are not always accepted by their counterparties in other member states. Officials propose the improvement of O.A.E.P. and the implementation of the best possible practices by the EU regarding financial solutions (tax statuses, monetary instruments for mass media, etc.).