Greek Prime Minister declared manufacturing a strategic priority for creating a more productive, competitive, and resilient national economy during a Governmental Committee on Industry meeting on Friday. He described manufacturing as roughly the backbone of the country's economy.
Following the prime minister's statement, the Minister of Development announced that the next phase of industrial policy will focus on accelerating 11 key industrial reforms. The minister stated that these measures include a new strategy for Business Parks, the development of industrial ports, and improved access to road and transport networks.
Writing in a column published on Friday, commentator Giorgos Kraloglou noted that the official assurances follow a 30-year abandonment of industrial production policy. Kraloglou outlined several long-standing structural obstacles that the government must address to achieve re-industrialization.
Industrial Licensing Delays
According to Kraloglou, licensing problems have persisted for decades. Forty-five years ago, Greek authorities recognized that potential industrial investors faced four to five years of bureaucracy to obtain feasibility, building, installation, and operation permits. At the time, obtaining permits within two years was considered fortunate. Although efforts to streamline licensing began 45 years ago, permit reform remains an ongoing priority for the Ministry of Development.
Spatial Planning and Political Obstacles
Spatial planning conflicts have also remained unresolved for 30 years. Uncertainties surrounding residential zoning and suitable industrial locations were submitted to three to four government ministries. However, proposals stalled due to political resistance from local government officials and local party members of parliament.
Business Parks and Industrial Relocation
To address spatial conflicts, authorities designated Business Parks and directed industrial facilities to locate within them under promised special privileges. Kraloglou stated that these sites were later abandoned, creating a discrepancy between official documentation and the actual conditions businesses face on the ground.
Frustrated by these operational hurdles, many industrial enterprises began selling their facilities and land 15 years ago for alternative commercial uses. Other manufacturing companies, particularly in Northern Greece, chose to migrate their operations abroad. By 10 years ago, these relocated Greek firms held top investment positions across Balkan countries. Kraloglou concluded that while further challenges lie ahead, the government must now deliver on its commitments to revive domestic industry.
