A new framework for boosting Greek industry and manufacturing, built around investment, lower energy costs, simplified procedures and access to EU funding, was at the centre of a meeting of the Government Industry Committee, chaired by Prime Minister Kyriakos Mitsotakis.

The Prime Minister placed industrial growth at the heart of the government’s planning through to the 2027 elections, speaking of a “genuine developmental leap,” while Development Minister Takis Theodorikakos set out seven priorities for the next stage of Greece’s productive economy.

What Mitsotakis told the Government Industry Committee

Opening the meeting, the Prime Minister said: “Ladies and gentlemen, Mr Chairman, colleagues, I am delighted that today, in the middle of summer, when we would normally be discussing tourism, we have chosen instead, and I think this is symbolic, to discuss manufacturing and industry. For us, strengthening industry and manufacturing is a strategic priority for building a more productive, competitive and resilient Greek economy.

“Together with the fiscal stability we have now secured and the country’s credibility, this is a key factor in sustaining strong economic growth, spreading its benefits everywhere and ultimately reaching the whole of Greek society.

“You know, of course, that industry is once again, fortunately I would say, at the heart of European policy. In an environment of uncertain geopolitical upheaval, energy uncertainty and fierce international competition, a country’s productive base ultimately determines its economic security, resilience and, in the end, its power. Greece and our government have treated this major shift taking place at European level with the seriousness it demands. We are taking an active part in all the European consultations and decisions on critical issues: competitiveness, energy, investment and critical value chains.

“In October 2024, we had the opportunity, together with the Minister, to present our plan for this transition to a new productive model for the country. I think a great deal of important work has been done by the Ministry, by all the ministries involved, and by industry bodies, whom I want to thank again. Significant reforms and simplifications of procedures have already been carried out. Greece’s development law, our main investment incentives legislation, has been credibly redirected to prioritise industrial investment, with strong emphasis on regional development, especially in areas such as Western Macedonia and Megalopoli, which are a particular focus for us given the shift under way in the country’s energy mix.

“We have supported, and continue to support, businesses in dealing with sharply higher energy costs, within the limits of what we are able to do. And, very importantly, we are about to finalise, in the period immediately ahead, given the tight deadlines imposed by the EU Recovery Fund’s rules, the Special Spatial Planning Framework for Industry, in which we have taken on board almost all of the observations made by industry representatives.

“I believe the results of this effort, which the Minister will set out in more detail shortly, are already visible: more industrial investment, a stronger export presence and better paid jobs across the whole country. During our time in government we have created 60,000 new jobs in industry, with average wages that are, as a rule, well above the average wage across the Greek economy. So a productive Greece is at the core of our economic policy, and industry is what links different activities together, organises value chains and spreads knowledge throughout society and across the whole country.

“We have an industrial tradition in this country. We have an industrial culture. We have people with knowledge, inventiveness, consistency and adaptability, and that is what productivity rests on: the quality of Greek labour, but also the ability of our businesses to adopt innovative technologies, especially the great revolution of artificial intelligence, and turn them into high value added products. I am genuinely pleased to see so many different sectors of the Greek economy growing and steadily gaining ground in exports, sectors such as pharmaceuticals, defence, metals, food and advanced technologies.

“Today we will not simply set out a record of what has been done. What I want to discuss is a new framework of institutional reforms, focused mainly on simplifying and speeding up procedures, and the financing framework for manufacturing for the coming period. This is, moreover, extremely critical, since we expect that within the next 18 months at the latest, negotiations on the European Union’s new budget will also be completed. So your contribution to this discussion, and to shaping our national positions, is crucial.

“I want to close with something I think carries its own particular importance. The European Union’s budget contains hundreds of billions of euros, 450 billion at present, earmarked for what we call the Competitiveness Fund. In all likelihood, the Competitiveness Fund will not have fixed national allocation keys or set national shares. That means we, as a country, and you, as businesses, will need to work together to make a credible case for bringing as many of those resources as possible into Greece.

“Consider that if we manage to bring in 10 to 15 billion euros, which is not an unrealistic target from a 450 billion euro fund, we are effectively talking about half a Recovery Fund. So preparation and cooperation between the government and industry and manufacturing itself is, I believe, absolutely crucial on this particular priority.

“So, once again, thank you for being here, and let me close by saying that, for us, and here I am setting aside my Prime Minister’s hat and putting on another one, that of leader of the New Democracy party, boosting investment, above all in manufacturing and industry, will be a central pillar and central policy priority of our government programme, which we will develop and present with an eye on the spring 2027 elections.

“Of course we are pleased, as a country, when our growth rates are well above the European average. But we can do better. And the target we need to set for the next four years, if the Greek people put their trust in us, is a genuine developmental leap: higher growth rates than we have now, faster convergence in investment as a share of GDP, and even greater outward orientation and adoption of new technologies, with particular emphasis, I want to stress, on regional development, because the wealth being created must be able to spread across the whole country.”

The seven priorities for the next stage of the productive economy

For his part, Development Minister Takis Theodorikakos said: “Thank you very much, Mr Chairman. Mr Deputy Prime Minister, ladies and gentlemen, Mr Chairman of the Hellenic Federation of Enterprises (SEV), representatives of industry bodies, the Prime Minister’s remarks were extremely important.

“I think you all know that we are consistently carrying out a clear, prioritised plan of action to support industry and innovation, because we are convinced this is the way to boost the productivity and competitiveness of the Greek economy. These are the preconditions for improving the standard of living of all Greeks in a sustainable way.

“We have carried out major measures to support industry with strong financing tools, as the Prime Minister mentioned, through simplified licensing, the new OpenBusiness system, the new framework for manufacturing in Attica and for business parks, and through the revision of the Special Spatial Planning Framework, which the Ministry of Environment is set to finalise in the period immediately ahead. And the impact is very clear: more investment, more productive investment in the country, steadily rising industrial output and exports, the 60,000 new jobs, and better wages for industrial workers, which can now represent a genuine life plan for younger generations. And today, Mr Chairman, we are moving into the next phase with seven clear priorities.

“First, we are accelerating 11 critical reforms, including a new strategy for business parks, our strategy for industrial ports, access to road and wider transport networks, the new digital business activity record, a key reform we have already decided on, along with a series of further simplifications, Mr Deputy Prime Minister, to procedures for industrial and wider economic activity.

“Second, we are providing concrete support for 3.7 billion euros of productive investment in new plants, technology, exports and jobs, through the development law and strategic investments.

“Third, we are mobilising 700 million euros to cut energy costs and upgrade energy efficiency in manufacturing by 2030.

“Fourth, together with the Ministry of Labour and the Ministry of Education, we are launching the national agenda for technical professions, linking skills to the needs of production.

“Fifth, we are putting together a national strategy for semiconductors.

“Sixth, as the Prime Minister said, we are shaping a clear and strong Greek position on the European agenda, ahead of critical decisions on industry at European level, on competitiveness, and on the budgets and EU funding of the next period.

“And finally, though in our view extremely important, we are proposing to upgrade the operation of the Government Industry Committee on a permanent, standing basis, with working groups drawn from the relevant ministries together with industry bodies, covering all the issues that need to be addressed, so that it can play a decisive role, with responsibility and accountability, in delivering the necessary actions and reforms.”