Direction Business Network: Ioannis Tsamichas “Strongest of the Greek Economy”

The strong Greek-Italian economic relations are stable and sustainable By Cav. Avv. Ioannis Tsamicha*

With the cautious forecasts for 2% growth in 2024 confirmed by the OECD, the Greek economy continues on its growth trajectory, which is expected to accelerate in 2025 (2.5%). The Greek economy appears to be reaping the benefits of real wage increases, rising employment and, most importantly, strong inflows of tourists supporting income and spending.

With fiscal consolidation, productivity and attracting investment remaining key challenges, Greece needs to achieve sustained strong economic growth by reducing debt in view of high spending needs, further reducing the regulatory burden and, of course, by expanding and improving the quality of human capital training.

Italy is Greece’s most important economic partner over time

Throughout its modern economic history, Greece has had a stable economic partner – Italy, which has been a catalyst for the performance of the domestic economy. Italian businesses consistently vote for Greece, with the neighbouring country being the top destination for Greek exports in 2023, as 12% of Greek exports are directed there, while it is also high in the top four in the list of imports. The Hellenic-Italian Chamber of Athens, continues its successful and internationally recognized program “We export more Greece to 85 Bilateral Italian Chambers in 65 countries”, being the main partner of Italian companies operating in the Greek market and of Greek companies in Italy. With a presence in 65 countries around the world through the Association of Italian Chambers of Commerce and more than 1000 members, it has been working to expand economic and commercial cooperation between the two countries for the last 60 years, facilitating the implementation of investments.

In the last decade, the investment interest of Italian companies has been almost monopolized by the energy sector as a whole. The Italian groups, Edison, Enel Green Power and Italgas, among others, are aiming to expand their investments in green energy with onshore and especially offshore wind farms and photovoltaic parks.

Edison, in fact, reportedly wants to retain Elpedison, one of the largest independent power and gas generators and providers of electricity and natural gas in Greece, in its assets, following its rumoured divorce with HELLENiQ ENERGY. Along with DEPA, Edison is also working to promote the EastMed pipeline, while Italian group Renco SpA, following its successful participation in the construction of the Trans Adriatic Pipeline, has also expressed interest in participating in its construction. In addition, RENCO SpA and TERNA S.A. are proceeding with the construction of the first Microsoft Data Center in Greece following a competitive tender process.

Also of great importance for bilateral economic relations is the financial landing of Mytilineos Group in Italy, which includes giant investments of more than 3 billion and a portfolio of 180 projects with a total capacity of 3.59 GW, with investments in solar energy and storage.