Prime Minister Kyriakos Mitsotakis, in an interview with businessman Nik Nanos at the Economic Club of Canada in Toronto, highlighted Greece’s investment opportunities.
He estimated that the economy will continue to grow faster than the eurozone and spoke of Greece’s prospect of a leading role in the renewable energy resources sector and in the generation center.
Under pressure, the fundamental economic policy pursued has sometimes succeeded. “We prefer to reduce taxes without threatening the fiscal balance of our macroeconomic situation. We have especially enhanced the regulatory environment, providing a robust and predictable business environment for corporations looking to invest. “
“I think the history of Eldorado, in many ways, is indicative of the progress we’ve made. I don’t forget our first conversations with George (Burns). Quite rightly, the company was very frustrated with this interaction with the past. They could not perceive what exactly the government was trying to do with the “Eldorado” investment. We had very fair and frank discussions and figured out a way to get ahead with a very vital task for Greece. We set the rules. ” Eldorado” delivered on its promises and delivered on them, and now we have a major Canadian mining company active in Greece, creating hundreds, if not thousands, of jobs in a relatively substandard part of the country, engaged in culpable ESG activity. “This is only part of the story, as we have managed to make Greece an attractive destination for investments in many sectors,” said the Greek Prime Minister.
Watch the full interview below:
Nik Nanos: Two beautiful sunny days. I don’t know how many seasons we will offer you while you are here, but also, above all, a very warm welcome from the Canadian people and the Greek diaspora. First of all, it is a wonderful honor for us to be here together to celebrate Greek Independence Day with you. They honour Canada and honour the Greek diaspora at the same time. But let’s dig into it, if we can, for a second. We’ve heard it before and everyone is talking about The Economist and the positive opinion that The Economist had of Greece. But you know what? In the past, many other people worried about Greece and its economic and budgetary situation. We have this clever news from “The Economist”. It’s impressive what you’ve accomplished, so congratulations. But can you give us a little insider perspective? With your victory in 2019, what did you inherit, how did you spend in the first hundred days?Once you’ve won, maybe start with the first day and the first hundred days as Prime Minister.
Kyriakos Mitsotakis: First of all, thank you for your kind words. Let me wish you all a happy Independence Day. Indeed, it is an honor and a pleasure for me to be with you today. he was impressed in Montreal by the dynamism and power of the Greek-Canadian community, and I am sure it will be the same today in Toronto. As George pointed out, it’s been 41 years since a Greek prime minister officially visited Canada. It’s been a long time.
I am very pleased to be here with you today. I am pleased to be with you here in Toronto to tell you a little more about Greece’s economic progress over the past five years. If I were to go back in time to 2019, I would force myself to do so because it is vital to take stock of the progress we have made; when we came to force in 2019, many still regarded Greece as the “black sheep” of the European family, an economy that at the time was underperforming, still in a state of essential supervision through the European Union, and which was not an attractive destination for investments. We knew at the time that our first priority was to put Greece on a higher expansion trajectory. .
Of course, then we had to deal with the COVID-19 pandemic, but the basic economic policy we pursued was sometimes successful. We have reduced taxes without jeopardizing the fiscal balance of our macroeconomic situation. We have especially improved the regulatory environment, offering a robust and predictable business environment for corporations looking to invest.
I think the story of “Eldorado,” in many ways, is indicative of the progress we’ve made. I don’t forget our first conversations with George (Burns). Understandably, the company was very frustrated with this interaction with the past. They could not perceive what exactly the government was trying to do with the “Eldorado” investment. We had very fair and frank discussions and figured out a way forward on a very vital task for Greece. We set the rules “Eldorado” kept its promises and delivered on them, and now we have a major Canadian mining company active in Greece, creating hundreds, if not thousands, of jobs in a relatively poor region of the country, engaging in guilty ESG activities, and contributing Componently to the Greek economy and economy. Greek finances. This is only part of the story, as we have managed to make Greece an attractive destination for investment in many sectors.
Recently, a few days ago, “The Economist” published its annual study on the business environment, and Greece recorded the greatest improvement among all the other countries analyzed through The Economist. I think there’s a general coherence to the story that’s been being told over the last few years. last five years. This is everything that is identified through the markets, through the investors, through the rating agencies.
But at the end of the day, companies and investors vote with their feet. If they are active and contribute in Greece, it means that they see significant prospects for their investments. I think George (Burns) is right. The story came to light. Today, Greece is no longer an eccentric and contrarian story. In 2020, it took a lot of effort to convince other people to accept our story. It’s much less difficult to do so now, but recognize that there’s still a lot of work to be done to build on the existing momentum.
Nik Nanos: What I find impressive is that this happened in 4 years. What’s appealing to this crowd here, and in this crowd, is that we have the biggest business leaders and the biggest investors in Canada, and they’re interested in hearing Greek history. But I’d like to upload one thing when you talked about the biggest improvement in terms of the environment: governments create the environment. Entrepreneurs create prosperity. I think the truth is that what you’ve managed to do in a short period of time has been pretty impressive. But it didn’t have to be that simple. Your way of speaking now, Prime Minister, is very simple. “I’ve become Prime Minister. It’s so wonderful. But there. . . No, seriously, is there a turning point for you and your colleagues?I know you had a vision and you’re leading the government, but there was a tipping point where you said, “Hey, things are going to start to turn out maybe faster than you expected. “
Kyriakos Mitsotakis: You are right to point out that it was clearly not a walk in the park and there were many obstacles along the way. But what I can tell you is that I am lucky to have been able to build a very intelligent team around me. I think the fact that we have an absolute majority in Parliament, whether in 2019 or 2023, has made our lives much easier. Why do I say that? It is enough to take a look at the European environment to realize that, as you have pointed out, the political landscape largely determines the economic environment. And there are many strong governments with a strong mandate to truly implement reforms. For example, let’s look at a country like Portugal, which has done well. There has been a change of government now, but the truth is that. . . We would possibly have a minority government in power. Of course, this makes forcing your program even more difficult. But if I had to highlight a moment when I literally thought that things can also really be replaced and our story resonated, I would remember a meeting I had in Davos in January 2020, just before the pandemic.
That’s when I met Microsoft. At that point, we managed to convince them to invest heavily in knowledge centers in Greece. They were the first to do so. At the time I thought, “Well, if we can convince Microsoft to do this, maybe others will follow,” and others did. So I think that’s when I felt that, at least when it came time to make our case to the primary authorities, foreign investors, at least other people were willing to pay attention to what we had to say. Of course, then we had to deal with a pandemic where we spent a lot of money, as maximum governments, as all governments have done, but I think we did it wisely to make sure we preserved jobs and laid the foundations for post-pandemic recovery.
I think the moment when I thought we were doing something vital when in July 2020 we managed to convince our European partners to create what we call the NextGenerationEU fund, which is essentially a mechanism at the level of the European Union. A Union created to channel the budget to the Member States to help them in their post-pandemic recovery.
For Greece, this means another €36 billion in grants and low-interest loans. This was an important additional stimulus in terms of bringing in European cash to complement the personal investments that are already taking place in Greece. It was two moments where I thought, “Oh, maybe we’re going in the right direction. “
And, of course, probably the most important moment was our second election victory, because it’s often easy to win the first election. Winning the second election as sitting president in this environment is not easy. So, although in reality, the other Greeks gave us for a moment an overwhelming majority in what was necessarily a double election, then I was sure that I had convinced the maximum of vital voters, who are ultimately our other friends, that we were keeping our promises and that they accept them as true. continue for another 4 years.
Nik Nanos: That’s interesting. I feel like CEOs and citizens are equal. They need stability to be able to make decisions, so that their families are strong and their businesses are strong. But now let’s talk about the Greek logo as a whole. There was a lot of enthusiasm. We have communicated about this. Everyone knows that Greece is a lovely place to visit. We know that Greeks welcome other people, but now a part of the new logo or emerging logo has to do with Greece as an emerging economic force in Southeast Europe. Let’s think about all the other people who are here, the business leaders and investors who are there, and the question of where to put their money and where to focus on long-term opportunities: what is the price proposition for making an investment in Greece?
Kyriakos Mitsotakis: First of all, the economy is developing and I think it will continue to grow at a much faster rate than the eurozone average. It is investing in a high-growth economy with a strong macroeconomic outlook. our debt-to-GDP ratio is falling at the fastest rate of any OECD country. There is no longer a national threat related to what went wrong 10 years ago. We have definitely left behind the years of currency crisis. For any investor, this also means opportunities, as asset costs have been particularly reduced.
The Greek economy is a relatively well-diversified economy, with some sectors in which we can say that we are world leaders. For example, tourism and hospitality attract significant investments as we bring our tourism products to market. Renewable energy, we produce 50% of our electrical energy comes solely from wind and solar energy. We are one of the world’s leading countries when it comes to renewable energy. Greece as a logistics hub, a natural gateway for industry from East to West or West to East. Greece is the largest economy in the Balkan region and Eastern Europe.
Greece as a generational center. You might be surprised, but we have a very colorful tech industry in Greece, with a lot of startups, some unicorns created in Greece, that are tapping into what is essentially, in my opinion, our writing asset, which is a talent. . of our people, a public university formula that produces highly qualified young Greeks with a desire to work.
When, for example, Pfizer came to Greece to establish a large artificial intelligence and knowledge center, they went to Thessaloniki, our second-largest city. They started with another two hundred people and will reach a thousand people until the end. Why did this happen? Because they’ve discovered a wonderful talent.
Of course, the other wonderful thing about Greece is our fantastic diaspora and the connections we can make with Greeks abroad. Five hundred thousand Greeks left Greece, young Greeks left Greece the currency crisis. they would be eager to return to Greece, as long as they can find smart job opportunities. Added to this is the fact that, as I told you, there are significant European funds to supplement the personal capital that will be deployed in Greece.
Of course, as we discussed earlier, a strong government. We have three years ahead of us, a full second term to put reforms into effect, and a commitment on our part to build on our successes, because it’s easy to be complacent when you win a second term. I’ll make sure that doesn’t happen. My team knows we want to hit the gas pedal instead of the brake. I don’t take anything we’ve done for granted. I have believed that at least two mandates are needed to ensure that the country reaches a definitive milestone.
Nik Nanos: I think we can communicate a lot about the pricing proposition. It communicates about opportunities, stability, and diversity of the economy. Let’s replace the topic for a moment and talk about Canada and Greece, two nations, the partnership between those two. Countries. I know I had conversations and met with Prime Minister Trudeau. What would you like to see happen in terms of strengthening the friendship and long-term economic partnership between Greece and Canada?
Kyriakos Mitsotakis: I had very productive meetings with Prime Minister Trudeau. Greece and Canada are liberal democracies. We have the same percentage values. We are on the same side of the fence when it comes to the wonderfully demanding geopolitical situations of our time, from Ukraine to Gaza. Or we face demanding situations similar to climate change, either in terms of mitigation or adaptation.
We had the opportunity to sign, in the presence of Prime Minister Trudeau, a new vital contract. We are purchasing seven aircraft to assist us in our firefighting efforts, partly funded through the European Union. Of course, we also report on dealing with demanding environmental situations such as forest fires.
But of course, when we look at economic cooperation, when we look at our point of exchange, it’s still low. We can do so much better. When I look at foreign direct investment through Canadian corporations in Greece, some significant investments have already materialized, some of which have already been made. “Eldorado Gold” is one of them. Fairfax and my smart friend Prem Watsa have been actively investing in Greece and are one of the wonderful proponents of Greek success, not only in money services, banking and insurance, but now also in real estate and technology, with PSP making an investment. at Athens airport, which we introduced a few weeks ago. It was an incredibly successful transaction.
There is already a Canadian investment base directed to Greece. The challenge now is to move beyond the proponents of Greek-Canadian economic ties and reach a new generation of investors who can take advantage of the abundant opportunities Greece has to offer. But things are going in either direction, because now we also have Greek companies. For example, the MYTILINEOS group, which plans to invest more than one billion euros in the largest photovoltaic installation in Alberta. This means that we are also leveraging our know-how to invest in Canada and the green transition of all of Canada by making sure that you also add renewables, which you will want in your energy mix in the future.
Nik Nanos: You talked about investment opportunities, partnerships between states and those kinds of opportunities. You talked about the Greek diaspora. If you had a call to action for the Greek diaspora in Canada, what would it be?There you have it, you get the message. What are you thinking?
Kyriakos Mitsotakis: First of all, for the first time in those elections they will be able to vote by mail. So, please, it’s been. . . Why do I say that?It wasn’t easy. We have two ministers here, Minister Theodorikakos, who was Minister of the Interior, and Minister Kerameos, who is Minister of the Interior, who are working very hard to make sure that we increase the voting rights of our diaspora. In past elections we started by setting up polling stations in our embassies and consulates, but now we have gone further. From now on, you will be able to actually vote, if you have the right to vote in Greece, simply by registering on the Ministry of the Interior’s online page. For the first time, we will be using postal voting to allow you to take part in the European elections.
This is very important for us because it is necessarily a test of what will happen in the national elections. I understand that the European elections may not be the most important election to participate in, but we want a maximum turnout to convince the sceptics in the Greek Parliament that we want to extend the same period, and not just the same thing. That’s true, but they offer the same flexibility when it comes to national elections.
So please participate in the elections. EsArrayThere will also be candidates representing the Greek-Canadian community. The European elections are because what happens in Europe is Greece’s business. It is also for Canada, because Europe and Canada are partners. We are not just talking about our flexible industrial agreements. We are partners when it comes to addressing all of today’s major challenges. There are several of them that we want to address.
Nik Nanos: yes, exactly. When we talk about the geopolitical situation, we think about the war in Ukraine with Russia, we think about what’s going on in the Middle East, we think about people, and you know what?Canadians and Greeks are concerned about the burden of power and the value of food. . It’s not an easy time for anyone.
Let’s take a closer look at the impact, from an industry and supply chain perspective, of how the shock in Ukraine is fundamentally restructuring our global economy. I’d like you to communicate a little bit to us because one of the most attractive and exciting aspects I’ve heard about is the India-Middle East-Europe corridor. Tell me about your vision, or share with the organization what your vision is and what it means for Greece, because I think that’s the core of where Greece is. maximum probably to go.
Kyriakos Mitsotakis: First of all, the war in Ukraine has notoriously replaced a lot of things on the European continent. Europe, and some European economies in particular, have long been incredibly dependent on reasonable Russian gas. That has replaced, and I think it has definitely replaced, that we now want to be more dependent, in the short and medium term, on imported LNG.
Greece has a vital role to play because we are the natural access point for LNG, not only for Greece, but also for the Balkans. Lately we’re sending fuel to Ukraine as we speak. We use the old Russian pipelines in front of them and bring the fuel from the south to the north. This means that Greece has a vital geopolitical role to play as a provider of energy security for the entire region.
But if you look at how industrial flows will evolve over the next few years or decades, what you describe, the India-Middle East-Europe corridor, is, to me, an incredibly visionary strategic project. Because to contemplate India’s position as a developing power, probably the third largest economy until 2030, a select supplier of goods and, for China, how are Indian products going to find their way into the European market?
Well, you only have to take a look at the map to realize that this select corridor, which also passes through Suez and the Red Sea, ends in Greece. This is mainland Greece. Our ports, our rail networks and our logistics centres will have a very important role to play. Right now, we’re seeing huge interest in making an investment in logistics in Greece, and that makes a lot of sense because we have the infrastructure. We have the ports and we are investing in our trains. The domain around the port of Piraeus, in particular, is becoming a leading logistics hub globally. Of course, this is a long-term project. But if one believes in India’s potential, as I do, when I look at the expansion of the Indian economy and its dynamism and the fact that, I believe, India will have a strong partnership with Europe, one can perceive why Greece’s role in this emerging mega-city trade partnership will be so vital.
Nik Nanos: If I may, Prime Minister, it would seem like drawing a new map where Greece is right in the middle of the world when it comes to the intersection of Canada, India and Asia.
Kyriakos Mitsotakis: Although the Oracle of Delphi pointed this out 2,100 years ago.
Nik Nanos: That’s it. You spoke recently about the acquisition of aircraft to fight forest fires. What’s attractive is that one thing that Canada and Greece have as a regular thing is fighting wildfires in Greece and the wildfires that we have in Canada has had to deal with northern Quebec. We know that the same thing is happening in Greece. We know that other people are concerned about climate change. But can you take a moment to talk about the green economy in Greece and climate change?Is this an opportunity? Is it a cost? Is it both?How do you get there?
Kyriakos Mitsotakis: It’s either a risk or an opportunity. We want to be mindful of the fact that managing weather-related errors can be incredibly costly. For example, we had a major flood in Thessaly, in central Greece, which is our main agricultural region, in September, an abnormal storm. One of those storms that scientists say happens once every thousand years, but we never know if that’s statistically applicable in this new climate crisis environment. So those excessive occasions cost us a lot of money, which means prevention is excessively important. And that’s why I place as much importance on adaptation as I do on mitigation.
Europe is a leader in mitigation in the sense that it has set very transparent targets to become carbon neutral by 2050. We have a very transparent path to carbon fairness. We know it’s going to be tough. We know it’s going to cost a lot of money, but I’m concerned that if we don’t think more proactively about adaptation, which means addressing the climate crisis now or tomorrow, we risk wasting the effort of our people to ensure their participation when it comes to the medium- and long-term transition we want to make.
When it comes to proccasionion, we put much more emphasis on proccasionion, even when it comes to wildfires and active forest management. These are political spaces where we can get a lot of information from Canada. This has never literally been a precedent in Greece. More paint and more investment in flood protection. These investments really make a lot of economic sense, because when you have to deal with the damage that you have to deal with in the event of an extreme weather event, they are very expensive. Issues such as climate disaster insurance are also a vital issue for the global monetary sector. For example, we are now in the process of rethinking the way our farmers insure themselves against agricultural damage.
But, of course, it can also create opportunities. Let’s move, for example, to tourism. One of our most demanding situations in Greece is finishing the season. We don’t necessarily want other people to come to Greece in July and August, where there will be a lot of people and maybe a lot of heat. We visit the market of Greece every year. -Round destination. As other people’s behavior and the way they travel change, we see that this is really happening. Our season starts in March, in many places. This may end in October or November. We want to make sure that flights from Canada to Greece or from Greece to Canada are available all year round, because right now, unfortunately, that’s not the case. But climate change will also affect our tourism product, and we want to be aware that this is a fact that we want to manage.
Nik Nanos: Great, last question. You talked about the Oracle of Delphi, didn’t you?So fast forward 20, 30, 40 years. As Prime Minister, you have served your country effectively and are retired. I don’t know if your wife can do it, but you’re retired. Now, reflecting on your vision of Greece, what is the Greece you would like your grandchildren to have?and great-grandchildren to inherit?
Kyriakos Mitsotakis: This is the first time someone has asked me this question, but it’s an attractive question, especially among people in their 30s and 40s. Then I’ll be very old. I hope to continue to be in relatively good physical shape so that I can enjoy my grandchildren. But I’ve been very transparent about what I need to accomplish with the country. I need Greece to be a country that is consistent with Europe, not a laggard country, but a leading country. If you look at countries like Ireland, for example, which joined the European Union in the 1970s and were very poor, and which are now well above the European average in terms of GDP consistent per capita, I need Greece to be one of those countries. countries that have taken this big step forward. But I need to make sure that the expansion that we expand has very explicit characteristics, that it’s sustainable. We attach great importance to the protection of the environment, which in our case is undoubtedly essential for our main industry, tourism. It is unlikely to think of any other way to expand tourism than to concentrate on sustainable tourism.
I want to make sure that we address what I see as the basic challenge of today’s liberal democracies, which is the source of income inequality. At the root of the discontent within liberal democracies is the wonderful disparity of wealth between those who own a lot of capital, a lot of wealth and those who are left behind. In my opinion, the expansion we want to create will have to be more equitable. I’m a company r in the dynamics of the market. I’m not a socialist, don’t get me wrong, but basically I believe that the challenges of income inequality need to be solved and that everyone wants to thrive in a developing economy.
For example, next week we will legislate a fourth increase in the minimum wage. I can’t tell you what the increase will be because it’s still a secret. But we need to make sure that staff take advantage of a developing economy. My goal would be to have a truly effective democracy, where other people would have intelligent access to public intelligence, intelligent education, intelligent physical care, and a country that would focus more on the happiness and well-being of its citizens.
Nik Nanos: Well, thank you, Prime Minister. These, Prime Minister Kyriakos Mitsotakis, are sensible words, a compelling vision. I am sure that everyone here will be interested in more important, bigger and more interesting news about Greece as a position to invest, as a position to visit, as a position to live and as a position to live and turn the fortress they built during their first term into an even greater fortress. Having said that, all of us, let us give the Prime Minister a warm round of applause.