The EU Trade

Policy

Greece
Greece and European Trade
policy
Maria Gourbatsi, Socrates Kitsakis,
Polychronis Christos Karatsais
Table of Content
 Introduction
GREECE, Hellas, officially known as the "Hellenic Republic" is the most
southeastern country in Europe, occupying the most southern part of the
Balkan Peninsula.

Ø Borders: Albania, F.Y.R.O.M., Bulgaria and Turkey

Ø Capital: Athens
Ø
Ø Population: 11.2 million
Ø
Ø Currency: euro (€)
Ø
Ø Official language: Greek
Ø
Ø Total area: 131 957 km²
Government Type: parliamentary republic
President of the Republic :
Karolos Papoulias

Prime Minister :

Georgios Papandreou

Member of:
EU since 1981
WTO since 1995
Greece joined NATO
in 1952
BSEC since 1998
OECD since 1960
 History
Greece (and the Greek Islands) is a country
with a particularly rich history and famous
personalities!!!
Ancient Greece
vPaleolithic era (11,000-3,000 BC).
vcivilization of the Minoans (2600-1500 BC)
vthe Mycenaeans (1500-1150 BC) and
vthe Cycladic civilization.

The Classical Period of the Greek history (6th-4th centuries BC)

is the most famous worldwide…The peak of the classical period is the
5th century BC, when the foundations of western civilization were put in
Athens.
•Period of Alexander The Great (In 334 BC)
•The conquest of Greece by the Romans( In 168 BC)
Modern Greece
•The conquest of Greece by the Ottoman Turks( In 1452 AD)
•Greek War of Independence (In 1821 AD)
•Second World War(In 1940 AD) and military junta(from 1967 till
1974)
Since 1975, the regime of Greece is Parliamentary Republic.
 NATURE
Greece is endowed with a rich and diversified natural environment as a
result of a rare geomorphology, with many striking natural contrasts
and areas of great ecological value. …

üForests and national parks in the mountains

ürivers and lakes

ü
üISLANDS (over 6,000)

ümarine parks near the islands of Alonissos

and Zakynthos

ürare bird species

ü
ü
ü
 Tradition
Greece Food and Wine are famous for
their good quality and amazing taste.
qFeta Cheese
q
qMoussaka

q
qWines of Greece

qOuzo

qTsipouro
 Greek Economy
The economy of Greece is the twenty-seventh largest
economy
in the world by nominal gross domestic product (GDP) and
the
thirty-third largest by purchasing power parity(I.M.F.
2008).
The Greek economy is a developed economy with the 22nd
highest standard of living in the world.
The public sector accounts for about 40% of GDP. The
service sector contributes 75.8% of the total GDP,
industry 20.8% and agriculture 3.4%.
Greece is the twenty-fourth most globalized country in
the world Public
and is classified as a high income economy.
finances
Public debt $405.7 billion (113%
of GDP)
Revenues $108.7 billion (2009
Expenses est.) billion (2009
$145.2
Foreign reserves est.) billion (31
$3.473
December 2008 est.)
 The Trade of
Greece
Main industries:
ØTourism
ØShipping
ØIndustrial Products
ØChemicals
ØMetal Products
ØMining
ØPetroleum
ØFood and Tobacco processing
Ø
Ø
Ø
 s
Exports $18.64 billion (2009
Greece mainly exports the est.) Major export
following commodities: partners
are:
i. Food and beverages
ii. Italy
iii. Manufactured goods
iv. Germany
v.Petroleum products
vi. Bulgaria
vii. Chemicals
viii. Cyprus
ix. Textiles 
x.
US

UK

Romania
 Imports
The excessive amount of imports has always been a cause of worry for Greece
economy. Even though imports decreased during recession, the volume remained a
lot higher than exports. Thus, the economy had to rely on tourism, loans as
well as remittances from expatriates for filling the gap.
Imports $61.47 billion (2009 est.)

Main imported Import

commodities: partners
v of
vMachinery Greece:
South Eastern European
v countries
vTransport equipment
Germany 12.1%
v
vFuels Italy
11.7%

vChemicals Russia 7.4%

China 5.6%

France 5.1%
 The Financial Crisis of
2008 and the Impact in
Greece
Years of unrestrained spending, cheap lending and failure to implement
financial reforms left Greece badly exposed when the global economic downturn
struck. The debt levels and deficits that exceeded limits set by the Euro-zone
were revealed & exposed.

In the first quarter of 2010, the national debt of Greece was put at €300
billion ($413.6 billion), which is bigger than the country's economy. The
country's deficit (its expenditure in comparison to its revenue) is 12.7%.

•Since joining the euro, Greece has had higher inflation than other Euro zone
members.
•Greece has also increased debt faster than others to finance generous public
sector pay, welfare, and retirement benefits, while collecting a lower share
in taxes due to widespread tax evasion.
•As a result, Greek goods have become increasingly expensive and
uncompetitive, causing loss of market share and further reducing revenues.
Relative price indicators based on export
prices
 The Greek Debt Crisis
•Greek debt/GDP ratio reached 113% and deficit/GDP
ratio reached 12.7% in 2009.
•Foreign bondholders became doubtful that Greece could
continue to roll over its increasing debt, forced
interest rates higher.
•EU faced choice between Greek default and bailout
with tough conditions.
•IMF and EU agreed to lend Greece up to $146 billion
over three years.
•Greece to increase sales taxes, reduce public sector
salaries, pensions, eliminate bonuses.
Greece ’ s Debt
Dynamics
 Impact on private individuals :
•The most obvious way would be through tax bills, as Europe
agrees to ride to the rescue and help Greece deal with its
mounting public and foreign debts.
•Any assistance to Greece will come at a cost that will
ultimately have to be borne by taxpayers in the nations
that contribute.
• Contagion Effect
Greek crisis has made investors nervous about lending money
to governments through buying government bonds.

Everybody's interest rates are heading higher as

governments are having to pay a greater risk premium to
borrow money.
Reduced wealth :
Take-home pay is likely to fall as it is eroded by rising
taxes and everyone will have to work longer before they
retire - by which time they are likely to find that their
pensions have shrunk.
Slower recovery
 Resolution &
Conclusion
Greece has outlined plans to cut its budget deficit, or the
amount its public spending exceeds taxation, to 8.7% of its
GDP in 2010, and to less than 3% by 2012.
Just before the massive bail-out package was announced the
Greek government pledged to make further spending cuts and
tax increases totaling 30bn Euros over three years - on top
of austerity measures already taken.
Greece facing difficult adjustment problems, European banks
avoiding losses on Greek bonds.
In the period 2007-2013, Greece will increase its
pace and will get even closer to its targets. Greece
expands its growth potential, and enhances the
competitiveness
and extroversion of its economy. It capitalizes
on its comparative advantages, in order to
emerge as a strong economic force in the region of
South-eastern Europe.
•Greece’s Debt Crisis has put the EU under the
scope, & it has shifted the attention to the
efficiency & the success of the Euro-zone. It’s
considered as probably the biggest test the EU (&
the EMU-in particular) has gone through. How the EU
& Greece are handling the crisis with the whole
bail-out plan will reflect to what extent the EU
is able to function on its own as a powerful
economic entity.
•It’s too early yet to measure the effectiveness of
the bail out plan.
Thank You For Your
Attention