Dimitris Mardas Department of Economics Aristotle University of Thessaloniki Member of Greek Parliament

The need of a dynamic investment process in tradeable goods and services

Troika’s concept Y = C + I + G + (X-M)

The weakness link: Lack (Q/E) or inefficient (ELA) liquidity in the short run. Regarding the medium and long run effects: Lack of Savings Privatization process NPL’s Specific Investment Funds (Regional Funds, Marshal plan targeting very small SME’s)

Solution: National currency Solution: National currency? Liquidity (budget deficit, foreign currency needs) and competitiveness

Euro vs flexible exchange rates 1980 1$ = 42,6 DRH, Exports 5 bin $ 2000, 1$=380,79 DRH, Exports 10 bin $

Greece needs an investment shock Greece needs an investment shock! More than 100 bn euros investment is needed In the next 7 years 2016-2022

De-industrialization process Common variables Globalization process (1961) Single Market exercise (1992) Euro (2000) Non common variables (short/medium run) Taxes rates / regulations Access to financing Policy instability Specific variables (Long run effects)

Specific variables Business culture Bureaucracy / corruption Industrial relations The need of correction measures for the regeneration of the industry.

Basic reasons to invest in Greece despite all these weaknesses Positioned strategically at the crossroads of three continents. Major transportation and energy crossroad between East and West Big Logistic Center Exceptional human capital with specific know-how and international experience available

Oracle has significantly enhanced its regional operation in Greece, by adding a full-scale global development hub for its cloud technologies. The hub operates since April 2015 and it’s the second largest in number of engineers of Oracle’s 5 global hubs (USA, UK, India, Netherlands, Greece). The 13 Greek software engineers working in Athens are part of a 57-member global team responsible for delivering Oracle’s next generation Cloud services to its customers in a consistent and scalable way.

Innovation and Design Thinking in Mobile Applications and Services Samsung Electronics in cooperation with Athens technopolis and the Economics University of Athens

Nokia presence in Greece is focused mainly in two fields: Customer operations (sales and service office) and Networks with a R&D center Nokia Networks Hellas is operating as an operations hub for the wider Balkan geographical area, being responsible for business in neighboring Albania, Cyprus, as well as responsible for customer specific sales activities in Romania and others.

Investment policies Necessary conditions Sufficient conditions Small and Medium Enterprise Policies FDI’s policies Investment incentives, favoring extroversion, compatible to EU competition Sufficient conditions Digital strategy / Start up companies / Biotechnology The Hellenic Fund Aerospace /Electrical and mechanical Engineering Big projects on tradeable goods and services Starting point: The strong competitive sectors

Job for Job Tourist villages for retired persons etc, and exchange of them against arms

Thank you