The Minister of Development, Takis Theodorikakos, highlighted the pivotal role of the pharmaceutical industry in Greece’s new production model during his speech at the 4th “It’s All About Health 2024” Conference. He emphasized that through research and innovation, the pharmaceutical sector is becoming more competitive, export-oriented, and dynamic, contributing to the Greek economy and creating thousands of new jobs.
The minister also mentioned that the Ministry of Development, in collaboration with the European Investment Bank, is establishing a new financing tool with a €300 million guarantee and leveraging up to €1.5 billion at much lower interest rates, aiming to facilitate investment funding. Additionally, efforts are underway to streamline economic and industrial activities further through a second wave of de-bureaucratization.
Focus on the Labor Market and Educational Transformation
Addressing the need for a new production model, Theodorikakos pointed out a significant issue faced by many businesses: the lack of available workforce. Despite Greece’s unemployment rate decreasing from 18% to 9.3%, companies still struggle to find suitable employees. This challenge necessitates substantial transformations in the education and training systems. The ministry is collaborating closely with the Ministry of Labor and industry associations to implement programs that address market needs and enhance workforce readiness.
Investment Incentives and Clawback Mechanism
Theodorikakos highlighted the government’s commitment to supporting pharmaceutical industry investments. He reaffirmed the continuation of the €200 million investment clawback for the coming years, a decision made in coordination with the Ministry of Finance. Strategic investments amounting to €400 million are already integrated into the Ministry of Development’s support initiatives.
Flagship Investments and New Development Frameworks
The minister announced the retention of the flagship investment scheme, previously financed solely through the Recovery and Resilience Facility (RRF), even beyond its original timeline. The framework will continue to support significant, innovative, and environmentally-friendly investments, particularly in the pharmaceutical sector. Furthermore, two new development schemes are set to launch in 2025, offering tax exemptions of €150 million annually, alongside a separate scheme focusing on border regions with direct financial support.
Theodorikakos also unveiled a new incentive package for research-related businesses, allowing up to 250% tax deduction for expenditures when collaborating with startups and research centers. This measure aims to enhance scientific and technological innovation within the pharmaceutical industry.
Enhancing Financing Opportunities
In partnership with the European Investment Bank, the ministry is creating a new lending tool with a €300 million guarantee, leveraging up to €1.5 billion. The initiative aims to provide better financing conditions than those offered by commercial banks, ensuring easier access to investment funding.
The minister also emphasized ongoing efforts to further reduce bureaucracy in economic activities, as regulatory red tape often hampers investment. He pointed out the need for judicial reforms to ensure a more business-friendly environment, aligning with broader economic transformation goals.
The European Context and Greece’s Economic Vision
Discussing the broader European economic landscape, Theodorikakos noted the challenges faced by major EU countries like Germany and France. He highlighted the importance of political stability and decisive action in addressing economic issues across the continent. He stressed that Greece aims to strengthen its industrial sector’s contribution to GDP and employment while reducing the trade deficit. The ultimate goal is to achieve sustainable economic growth, benefiting the entire society.
The minister concluded by emphasizing the significance of improving Greece’s trade balance. He explained that reducing the trade deficit would lead to higher incomes and lower taxes, ultimately improving the standard of living for all citizens across the country.
