(Last updated: 22 Mar 2012)

Current business situation

The Department for Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Greece. This is regularly updated, and should be checked before planning travel.

Country overview

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Following economic stagnation and fears from the effects of war on its northern borders, Greece has in recent years been experiencing much greater economic success. The country has shaken off its reputation as being one of the European Union (EU) laggards into one that can fuel the development of the Balkan region. Large inroads have been made to develop Greece’s economy and on improving the country’s international image.

Greece’s internal stability has been helped by the break up of one of Europe’s most notorious terrorist groups, November 17, which has been active for more than 27 years.

Greece is the major recipient of EU aid in Europe. As part of EU membership, the Greek government has reduced its budget deficits below two per cent of GDP, has tightened monetary policy, and continues to reform its economy and tackle the problem of high unemployment.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

The government plays a strong role in Greece’s mixed economy, and excessive bureaucracy remains an issue. Generally, businesses have to abide by a range of laws and regulations and the tax burden is sizeable. This is gradually improving as Greece has moved closer towards integration with the European Union, including monetary union, but the government retains a strong social as well as legal role in relation to society.

Greece is a parliamentary republic, with local or regional government divided into 51 administrative districts. In 1974, the monarchy was abolished by referendum. The country has a relatively secure political structure, with a unicameral parliament elected by popular vote and the prime minister drawn from the majority/minority party. The parliament selects the president who, as head of state, appoints a cabinet on the recommendation of the prime minister. The president, in consultation with a judicial council, appoints senior judges for life.

Trade relations and statistics

Greece has been a member of the European Union (EU) since 1981, and in 2001 was invited into EU Monetary Union as well. Greece’s political relations hinge on the EU, with which it has close ties and is a recipient of aid. Greece’s main disputes with other countries are with Turkey, over the Cyprus issue and over land, sea and air territories in the Aegean Sea. In recent months, relations with Turkey have improved and Greece has been active in trying to find a resolution to the Cyprus issue, especially in the lead up to Cyprus' entry into the EU in April 2003.

Greece's trade relations with the Balkan countries are significant with Greece being the biggest investor in the region. It has an advantageous location, as it is the only EU member in the region providing access and opportunity to the Balkan markets.

Thessalonika, the capital of northern Greece offers the financial and trading services needed in order to conduct business in the Balkans. An existing network of 2,500 Greek companies has initiated direct investment programs or marketing agreements in the Balkan markets. Greece has a foothold in the region and can potentially be used to enter these markets through joint ventures or other agreements.

Due to its location, Greece has always had strong economic ties with other countries. The service sector is especially important, with tourism and shipping in particular being major industries.

Greece retains a strong agricultural sector, but this largely serves domestic demand.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.