At a critical time for Greek industry, SEV President Spyros Theodorpoulos stated at the General Assembly of the Central Greece Industrial Association that “two large Greek factories are considering closure due to high energy costs.” These are heavy industries whose shutdown would seriously impact the Greek economy.
Deputy Prime Minister Kostis Chatzidakis, who participated in the inter-ministerial meeting on energy costs, emphasized that the government is fully aware of the problem and is studying measures to address it. As he noted: “The intervention we are preparing will be fair, focusing on those most affected, and will not create fiscal problems for the country.”
Proposals and Interventions to Reduce Energy Costs
Chatzidakis highlighted that reducing energy costs relies on:
- Strengthening energy interconnections with neighboring countries and the European grid.
- Further market liberalization, including Power Purchase Agreements (PPAs), supported by the state within fiscal limits.
- Utilizing European funds, such as the Modernization Fund, for targeted financial support.
He stressed: “For us, it is not only about industry – it is about overall entrepreneurship. The intervention must be fair, holistic, and emphasize those suffering most from energy costs.”
The State of Greek Industry
Contrary to claims of deindustrialization, Chatzidakis presented data showing steady growth:
- The industry’s share of gross value added reached 15.4% in 2024, up from 13.8% in 2019.
- Industrial investments increased to 17.2% of total investments, up from 10% before the crisis.
- Exports of industrial products reached 33.8% in 2023, representing 71.4% of total goods exports.
- Employment in the sector reached 428,000 workers, the highest in 14 years and a 10% increase compared to 2019.
Government Support Strategy
Key policy directions include:
- Tax and social security contribution reductions.
- Simplified licensing, targeting a 25% reduction in bureaucracy.
- Digitalization and acceleration of justice processes.
- New export-oriented strategy, aiming to increase exports that already account for 42% of GDP.
- Spatial plans for tourism, renewable energy, and industry by 2025.
- Creation of the Oinofyta Business Park, a €100 million+ investment.
- Utilization of European funding instruments, such as the Modernization Fund.
- New incentives for innovation and research.
- Training programs and skills upgrades in cooperation with SEV and the Central Greece Industrial Association.
Immediate Action Needed
Theodorpoulos also criticized the slow pace of the EU’s green transition, noting that European countries, responsible for only 6% of global emissions in 2019, decided to act alone. He emphasized that energy costs now account for 20–60% of total business expenses, making immediate interventions essential. He added: “Greece has become a normal country; now it must become a productive country. The Draghi report has all the right proposals – they just need to be implemented.”
The government’s intervention on energy costs aims to ensure the viability of heavy industries, protect the competitiveness of all Greek businesses, and support those most affected, while avoiding fiscal strain
Source: pagenews.gr