BUSINESS | 27.07.2011
Greek bureaucracy seen as hurdle to German investment
Economics Minister Philipp Rösler and 20 of the Germany's main trade associations on Wednesday agreed in principle to help kick-start economic growth in Greece.
Getting the Greek economy back on its feet is "simply not a matter of money," the minister said. "It is a matter of modernizing structures."
Rösler told reporters that the problem posed by Greek bureaucracy was the main issue in the talks.
"Germany and Greece have hugely different business cultures, and as long as the Greek economy doesn't introduce at least some of the German standards, the willingness to invest will remain low," he said.
No concrete commitments were made at the meeting, but Rösler announced a trip to Greece on August 15 along with a small business delegation.
Last year, German exports to Greece represented only 0.6 percent of the total while imports from Greece amounted to just 0.2 percent.
Lend Greece a hand
German businesses are particularly interested in investing in solar and wind energy parks, telecommunications projects and road construction, Rösler said, before adding that Germany also plans on helping modernize the Athens city administration.
Martin Knapp, managing director of the German-Greek Chambers of Industry and Trade in Athens, welcomed the high-level gathering, and said it was high time German industry and the government got together.
"We practically lost 18 months by focussing on the Greek budget deficit instead of dealing with the real economy in the country," Knapp told German public radio on Wednesday. "But in the long run, it is up to the real economy to get Greece back on its feet and in effect to save the euro."
Knapp identified tourism, the transport sector and renewable energies as the most profitable areas of investment.
New approach
Greece has been trying to boost growth by streamlining regulation, cutting bureaucracy and reforming its labor market, but it may take years before such steps have much impact on the creation of jobs and businesses.
The emphasis on growth and investments is a shift in Europe's approach to the crisis after the first Greek bailout had focused on cutting the Greek budget deficit.
Germany is the biggest single contributor to the Greek rescue package.
Author: Dagmar Breitenbach (dpa, AFP, Reuters)
Editor: Ben Knight
Editor: Ben Knight
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