Her reflexes European industry they allowed her to be optimistic about the future, picking up speed after the health crisis. However, persistent inflationelectricity costs due to Ukraine, lack of qualified personnel and bureaucratic red tape create a difficult environment in the EU.

At the same time, countries like the US are introducing aggressive incentives to attract attachments, which causes double concern throughout the EU. Subsidies can be critical to attracting investment, but the first consideration enterprises in the EU, this comes primarily from a bureaucratic regulatory environment that heavily evaluates every investment decision. This concern is confirmed by BusinessEurope’s Reform Barometer 2023 study, which shows that 90% of businesses in the EU believe that the business environment (compared to non-EU countries) is less favorable than it was three years ago. Regulatory load is now the most important issue for businesses after high energy prices, which threatens the position of the EU. as an attractive place for investment.

A recent BSE Business Pulse study shows similar results at the national level. In recent years, Greece has made significant efforts to reduce bureaucracy, especially in the areas of EU funds, tax administration and, of course, e-government. However, environmental licensing, spatial planning, the labor market and the administration of justice are issues that require our attention in the next period, as they are important criteria when choosing a direction for investment.

The second problem is related to the flight of investments outside the EU. Of course, Greece is showing steady growth, led by large foreign investors. But if you look at the bigger picture at the EU level, many companies, big and small, have already started moving their production outside the EU. Overall foreign investment inflows to the EU are down 68% in 2021 compared to 2019, compared to a 60% increase in the US over the same period. The risk of a slow deindustrialization of the EU is currently present and its negative effects are gradually becoming visible in all its countries.

Of course, the need to address the competitiveness gap is increasingly recognized at national and European levels. Recent EU initiatives, such as the carbon zero industrial production plan, are a good start, although not ambitious enough. We also see efforts (at the national and European level) to lower energy prices, speed up licensing, faster access to finance and critical raw materials. But there is still no concrete plan to improve the competitiveness of the EU industry that goes beyond the goals of the transition to the “green” sphere and addresses the problems of the industry on the way to 2030.

Our members believe that in today’s business environment, European and national legislation eschews permanent micro-regulations that simply add to the administrative burden.

“Hard times make strong people, and strong people make good people.”

On the contrary, reducing bureaucracy and limiting polynomialism are the central goals of any public policy so that enterprises create innovation, jobs and growth through clear and simple rules of operation.

The EU’s commitment to reduce by 25% the red tape its legislation creates for businesses is a good first step. Greece can set a similar goal. A new national plan to simplify the business environment, which uses successful e-government tools but simplifies procedures before they are digitized, could generate even more investment in the country.

At the same time, the availability of energy at competitive prices, access to raw materials, as well as the sufficiency of human resources with appropriate qualifications are no less important conditions for the prosperity of any economy. Finally, EU companies need more international trade. The faster expansion of international trade agreements with third countries is carried out centrally by the EU. this could create new export opportunities for Greek companies, as well as provide important raw materials for major EU industries.

As writer Michael Hopf says, “Hard times make people strong, and strong people make good times.” Despite the challenges, our members remain optimistic about maintaining prosperity, creating new jobs and improving the quality of life for all.

Mr. Markus J. Behrer is the Managing Director of BusinessEurope. Dr. Giorgos Hirogiannis is the CEO of SEV.