1. Improving the business environment in Southeast Europe: achievements and challenges
Peter WEISS European Commission - Economic and Financial Affairs
‘Achieving sustainable growth in Southeast Europe: Macroeconomic policies, structural reforms, socio-political support, and a sound financial system’
The Bank of Greece and the University of Oxford (SEESOX)
Athens, 11 February 2011

2. Outline BE in Greece: what is the diagnosis?
BE in Greece: what has been done?
BE in Greece: further action needed
How does this compare with other SEE countries?

3. BE in Greece: What is the diagnosis? (1)
The need for structural reforms:
Greece compared with other OECD countries
Source: IMF, 2010

4. BE in Greece: What is the diagnosis? (2)
Greece in the World Bank ‘Doing Business’ Ranking
(out of 183 countries)

5. BE in Greece: What is the diagnosis? (3)
Assessment of underperforming policy areas using the
Lisbon Assessment Framework methodology
Source: IMF, 2010
Scores = Normalised Standard Deviation * 10; EU15 = ‘Old Member States’; EU5= 5 best performing EU countries)

6. BE in Greece: What has been done
Actions in the framework of the adjustment programme
Electronic completion of procedures / one-stop shops
Speeding up of licensing
Strengthening of Competition Authority
Implementation of Services Directive (incl. SPC)
Liberalisation of restricted profession
Setting up of commercial register
Action plan for business friendly Greece
Specific policies targeted at key sectors (tourism, retail)
Reform of public procurement policies
Opening up transport and energy sector
Privatisation

7. BE in Greece: further actions needed
Further actions to be considered
(e.g. action plan business friendly Greece)
Establishment of business (environmental permits; permits for using coastline, beaches and watercourses; building permits; etc.)
Speeding up of procedures for granting export licenses
Elimination of double taxation
Action plan for R&D and innovation policy
Accelerating the winding up of companies
Simplification of publication requirement of business data
Shortening of judicial procedures

8. How does this compare with other SEE countries? (1)
Some performance indicators

9. How does this compare with other SEE countries? (2)
World Bank ‘Doing Business’ Ranking
(SEE countries)

10. How does this compare with other SEE countries? (3)
Albania
Strengths:
Good progress in price liberalisation, privatisation, business start-ups
Weaknesses:
Economic structure little diversified, new bankruptcy law poorly implemented, Property rights and laws enforcement, inefficient public administration, poor infrastructure

11. How does this compare with other SEE countries? (4)
Bosnia and Herzegovina
Strengths:
Medium-term fiscal framework in place; some progress in reducing red tape for enterprises; improved market exit
Weaknesses:
high influence of government in economy, slow structural change, large informal sector; business start-ups difficult; weak property rights and laws enforcement; inefficient public administration, poor infrastructure

12. How does this compare with other SEE countries? (5)
Croatia
Strengths:
Comprehensive reform programme, some progress in law enforcement
Weaknesses:
Government influence in economy high (subsidies, slow privatisation), business start-ups difficult; weak property rights; inefficient public administration, poor infrastructure

13. How does this compare with other SEE countries? (6)
FYROM
Strengths:
good progress in privatisation, business start-ups, property rights; some progress in
Weaknesses:
relatively poor law enforcement and infrastructure

14. How does this compare with other SEE countries? (7)
Montenegro
Strengths:
comprehensive programme; medium-term fiscal framework; good progress in price liberalisation and privatisation; some progress in business start-ups (licensing still difficult)
Weaknesses:
relatively poor law enforcement and infrastructure

15. How does this compare with other SEE countries? (8)
Serbia
Strengths:
Some progress in facilitating market entry and in price liberalisation
Weaknesses
Government influence in economy high (slow privatisation, high subsidisation); despite new bankruptcy law high number of pending cases; poor law enforcement

16. Thank you for your attention