Overseas Business Risk - Greece

Information on key security and political risks which UK businesses may face when operating in Greece

Political and Economic

Greece has been a member of the EU since 1981 and entered the EMU on 1 January 2001. Greece’s main economic sectors are tourism, construction, agriculture and shipping. More than 50% of Greek industry is located in the Greater Athens area. Total labour force amounts to approximately 4 million people, of which 15% are employed in agriculture, 23% in industry and 62% in the services sector. Unemployment is currently close to 22% with unemployment rate amongst young people under 25 years old reaching 50%.

Greece is a Parliamentary Republic. President Carolos Papoulias was re-elected Head of State in February 2010. General elections in 2009 resulted in victory for centre left PASOK party, led by George Papandreou who endeavoured to implement a series of unpopular measures, addressing fiscal problems and proceeding with necessary reforms and privatisations in agreement with the EU, IMF and ECB. Following his resignation, a unity government, led by Prime Minister Lucas Papademos, a former vice president of the European Central Bank, was sworn in on 11 November 2011. General elections took place on 6 May 2012, but none of the parties secured a clear majority and they were unable to form a Government. Following a second set of elections on 17 June 2012, Antonis Samaras became Prime Minister, forming a coalition ‘Government of National Responsibility’ with PASOK and the Democratic Left (DIMAR).

Businessman reading newspaper

The current economic crisis has brought to the surface some of the structural inefficiencies, which Greece must urgently address. Within the context of Greece’s Memorandum of Understanding with ECB, Commission and IMF, the Greek Finance Ministry is driving forward a radical reform of public finances, including privatisations, restructuring the public sector, overhauling the tax system, and increased budgetary accountability. Consumers are tightening their belts so there will be no early respite for retailers. Measures to boost competitiveness and cut excessive red tape have been introduced but have, so far, failed to generate growth.

The EU supports the banking, which has been affected by the haircut of Greek bonds (PSI). The IMF monitors Greece’s reform programme so that it is broadly on track. Legislation for opening closed professions has been voted in Parliament. Transport/infrastructure privatisations have been announced and will further assist public finances. Greek Government is expected to raise 50 bn Euros by 2015 through privatisations in order to reduce Public Debt.

The EU is the country’s largest trading partner, but Greece has also developed links with Eastern European and Black Sea countries.

Further information on how UK Trade & Investment can facilitate business between the UK and Greece can be found on http://ukingreece.fco.gov.uk/en/business/ and www.ukti.gov.uk

More information on political risk, including political demonstrations is available in FCO Travel Advice.

Human Rights

The constitution and national legislation provide workers with the right to join and form unions with little or no government interference. Freedom to form trade unions is established under Articles 12 and 23 of the constitution and in accordance with International Labour Organization (ILO) Convention No. 87, which Greece has ratified. Members of the military are not allowed to form a union. There are some legal restrictions on strikes, such as requirements for four days' notice before strikes affecting public utilities and 24 hours' notice before private-sector strikes. In addition, workers must maintain minimum staff levels during strikes in the public sector.

Bribery and Corruption

Bribery is illegal. It is an offence for UK nationals and bodies incorporated under UK law, to bribe anywhere in the world.

In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

In 2011, Greece war ranked 80th out of 182 countries in the World Transparency International’s corruption perception index (CPI), compared to 78th in 2010.

Visit the Business Anti-Corruption portal page providing advice and guidance about corruption in Greece and some basic effective procedures you can establish to protect your company from them.

Read the information provided on our Bribery and corruption page.

Terrorism Threat

Read the information provided on our Terrorism threat page

Protective Security Advice

Read the information provided on our Protective security advice page.

Intellectual Property

Greece adheres to all EU laws regarding copyright and intellectual property and the local branches of international watchdogs monitor breaches that may occur, including downloading of illegal software which mostly concerns the music/film industry. Piracy Software (PC) rate in Greece has dropped over the last few years, with severe fines for the use of illegal software. According to the Special Controls Agency of the Ministry of Finance, the target for Greece is for this rate to drop to under 25% by the end of 2012.

Read the information provided on our Intellectual Property page.

Organised Crime

Read the information provided on our Organised crime page.