Page 20 - COMPASS - COMPETITIVENESS REPORT 2022 - COUNCIL OF COMPETITIVENESS IN GREECE

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Recovery and Resilience Fund is the fundamental economic investment proposals and that banks train their teams ac-
and social transformation of the country, with the creation cordingly so that they can truly take on an advisory role. At
of more than 180,000 jobs by 2026 and the goal to increase the same time, there has also been a significant increase in
GDP by 7% and private investments by at least 20%. foreign investments in Greece through mergers and acqui-
sitions (around €4.3 billion in 2021 compared to €3.8 billion
With regard to the €12 billion in loans, it is estimated that in 2018), as well as in investments in smaller startups and
these, together with bank participation and business partic- scaleups through venture capital and private equity funds
ipation, could finance investments amounting to up to €30 based in Greece or abroad; this creates a more dynamic eco-
billion. These loans are to be used to promote investments system that can support the creation of larger, more resilient
underpinned by sound financial foundations, including and, above all, more internationalised enterprises.
green and digital transition and innovation.
Another key factor over this period has been EquiFund, the
More specifically, a number of measures are to be intro- Greek government’s EIF-backed fund-of-funds, which serves
duced, aiming to enhance the business environment, reduce as an investment platform with a multiplier effect on boost-
bureaucracy and administrative costs, increase the size ing entrepreneurship in the country, providing investment
of Greek companies, and reinforce the orientation of the capital to innovative business ideas. In total, around 130
economy in the direction of exports and productivity. There businesses received seed capital or startup or development
is clear provision for improving competitiveness, as use of funds, corresponding to their capital needs in relation to
these loans can significantly contribute towards accelerat- the stage they were at, with the total amount that has been
ing economic recovery and growth, with loans channelled made available to such companies reaching €248 million.
to long-term sustainable investments in the private sector, Additionally, certain companies were also able to secure
focusing on (a) green transition, (b) digital transformation, additional funding through important foreign investors. In-
(c) research and innovation, (d) creating economies of scale, dicatively, according to the “Startups in Greece 2021–2022”
and (e) increasing exports. Furthermore, there is a definite report by Found.ation and EIT Digital, Greek startups at-
orientation towards modernisation and enhancement of the tracted half a billion euro in investments in 2021, more than
resilience of fundamental sectors of the country’s economy, three times more than in 2020 and ten times more than in
with an emphasis on attracting strategic investments. Finally, 2017, when Greek startups drew a mere €50 million.
there is also provision for incentives to increase economies
of scale as well as productivity and extroversion through tax The first acquisitions in the Greek startup ecosystem are also
benefits and other incentives to achieve economies of scale worth noting—companies that were supported and which
through mergers, transformations, acquisitions, as well as went on to attract the investment interest of global heavy-
cooperation schemes and platforms. weights renowned in their respective industries. Notable
acquisitions that demonstrate the attractiveness of innova-
Along with the financing tools described above, Greek banks tive Greek startups to major foreign corporations include the
have achieved a drastic reduction in non-performing loans, acquisitions of Viva Wallet by JP Morgan Chase, Accusonus
are steadily improving their capital adequacy and have seen by Meta (the parent company of Facebook), Pollfish by
significant increases in deposits (from €135 billion in Decem- Prodege (US), Instashop by Delivery Hero (DE), and Softo-
ber 2018 to €180 billion in December 2021). In other words, motive by Mobileum (US). These examples constitute a vote
they have improved their capacity to increase financing for of confidence in the Greek economy as an innovator able
companies seeking to invest in innovation and development. to convert ideas and technologies into top solutions with
However, it is important that these new financing plans do global appeal.
better at evaluating the risk assessment and risk taking of