George Kremlis: The Contribution of Entrepreneurship to the Energy Transition
Greek entrepreneurship serves as the driving force behind the country’s economy. It also contributes significantly to another essential pillar of the title’s triptych: competitiveness, which is crucial for both the Greek and European economies. Unfortunately, in 2023, Greece dropped to 49th place in the Global Competitiveness Index, having ranked 46th in 2021. However, according to recent data from June 2024 from the World Competitiveness Yearbook (WCY), Greece improved its position, now ranking 47th among 67 countries evaluated in 2024.
The state of the Greek economy is further elucidated in the European Commission’s April 2024 report (link) and the report on optimistic macroeconomic forecasts (Economic forecast for Greece – European Commission).
Greek entrepreneurship evidently contributes to the economy, growth, and competitiveness. The state has proven incapable of operating with private-sector efficiency or acting as an entrepreneur, except in certain public-private partnership (PPP) projects, which are primarily construction-oriented. Furthermore, the motto “less but better government” is promoted as best practice at the European Union level.
What Is Needed to Boost Entrepreneurship?
- A Business-Friendly Investment Environment
- Low taxation and tax exemptions are vital.
- A Robust Institutional Framework
- This includes streamlined licensing procedures, ideally through a “one-stop-shop” system, utilizing digital governance tools and artificial intelligence.
- Incentives for High-Value Investments
- Attracting priority investments, particularly in robotics and innovation, where the younger generation excels, is key.
- Addressing the brain drain with initiatives like Rebrain Greece offers incentives for repatriating highly skilled scientists.
The heavy industry of Greece cannot rely solely on tourism. To remain competitive, tourism must transform into circular and green tourism. The country must also invest in new technologies and artificial intelligence that support renewable energy sources (RES), the energy transition, and climate neutrality. This includes:
- Recovering critical raw materials from recycling special waste streams.
- Producing aviation and maritime fuels.
- Developing drones with diverse functions, such as fire detection, border surveillance, and defense applications, which remain unsupported by the state despite private sector advancements.
Strategic Investments for the Future
Greece should also:
- Expand its defense industry by focusing on aerial and naval drones, modern air defense systems, and utilizing EU resources for these purposes.
- Enhance its role in Ukraine’s reconstruction, with costs estimated at €1 trillion, ensuring Greece secures a share of the upcoming projects.
These initiatives require bold incentives and a strategic new private investment law that leverages EU funds. Such a framework should:
- Cover strategic and small-to-medium enterprise (SME) investments, particularly in the circular economy.
- Introduce green public procurement, aligned with the EU’s Taxonomy Regulation for green investments.
Leveraging Unique Opportunities
A significant proposal involves utilizing islets for private investments or PPPs. This would:
- Strengthen territorial sovereignty.
- Create jobs, particularly in green industries.
- Alleviate overpopulation in urban centers like Athens.
Similarly, incentives should promote:
- Development of abandoned villages.
- Circular agriculture, encouraging urban residents to return to rural areas.
- New desalination technologies powered by RES, ensuring sustainable sediment management.
Integrating Environmental and Climate Resilience
Environmental and climate resilience must now underpin all national policies and investments. These efforts should integrate into circular entrepreneurship (C-ESG) to enhance competitiveness and sustainability.
