Searching for growth in Greece

“Where can Greece find growth?” is perhaps the most frequently asked question here (and beyond) just now. One answer might be: on the internet.

As part of Britain’s drive to establish a more comprehensive European Single Market, British Embassy Athens has been working closely with Greece’s burgeoning digital sector, the Government and the EU Commission to raise awareness of the concrete growth benefits a digital single market could deliver for Greece, Britain and the whole EU. Earlier this month we hosted ‘Digital is GREAT’ to mark 20 years of the European Single Market. The event gave businesses, government and consumers a platform to articulate the benefits they could reap from greater cross-border digital trade.

One clear conclusion was that Greece has a disproportionate amount to gain. Why? Current internet usage and GDP generated by digital business is well below the EU average. Living in Greece, it is apparent that there are many areas online services could expand into with relative ease if allowed to – so there is lots space to grow. Conversely, Greece has a considerable amount of talent, innovation and creativity ready to fill domestic markets – and more. This is a great potential recipe for Greek-driven growth and jobs.

I’ve certainly met sceptics.  They  say surely a digital single market would just allow multinationals to eradicate local business and cause more unemployment?  What’s in for Greece? they ask.  1000 € each, I say. It is estimated that the effective completion of the digital single market could add at least 4% to EU GDP by 2020.  That is about an extra £420 billion or around €1000 per EU citizen. Amazing but true.  That shows how important it is to turn what can seem abstract concepts – like a “digital single market” – into hard figures for real people. On jobs also: for far too many Greeks and Europeans, job losses are the human impact of negative growth. This is another area where the Single Market can help:  speaking at our event, a representative of Google.gr estimated that for every 1 conventional job lost through transfer of services online, 2.6 jobs are generated.

Within the Embassy I focus on the Greek economy. One can find plenty to be miserable about, we all know this. But in any crisis there is opportunity. It has been massively inspiring to hear the experiences, ideas and ventures of the dynamic and inventive players within Greece’s digital business community. The powerful buzz being generated by the creation of start-up businesses offering innovative online services and products is an encouraging antidote to the pessimism caused by the crisis. Necessity is driving innovation, and fast. Facing alarming rates of youth unemployment, young graduates I’ve met have been clear: unemployment is forcing entrepreneurship. And for the Government too, shrinking budgets are speeding up plans to transfer services online – which it hopes will reduce red tape and deliver major cost savings.

The cross section of companies that presented at the event were exciting examples of Greek businesses that – despite the tough business climate – are producing world class products that attract international investment and acclaim.  But don’t take my word for it; follow the links below to see presentations by a sample of the most prominent and aspiring Greek start-up entrepreneurs as well as more established businesses. You’ll be impressed. Click here to view the programme and here to watch the streamed video.

Ancient Greeks generated prosperity through looking outwards and trading furiously. The dynamic contemporary Greek digital scene and most forward-looking traditional businesses show all the potential to do likewise. What help do they need? The consistent message we hear across the whole range from start-ups to major internet players is that European governments can help them most by bringing down the barriers, supporting the essential infrastructure, then getting out of the way. Working collectively to advance single markets – in services and energy, as well as digital industries – is overwhelmingly in the interests of Greece, Britain and Europe; let’s get on and do it.  We’ve run out of time to waste, so the more voices advancing these arguments the better.