Greece stands at a pivotal moment in its history, endowed with unique growth opportunities, according to Michalis Sallas, Chairman of Lyktos Group and Honorary Chairman of Piraeus Bank. The nation can leverage European resources like the Recovery and Resilience Fund, the National Strategic Reference Framework, and initiatives aimed at green and digital transitions, along with substantial capital market liquidity.
Our country has suffered from a lack of strategic planning, leading to significant delays in numerous projects that have deterred meaningful private investments, resulting in regional development disparities. Notable exceptions to this trend were seen during the first term of Konstantinos Karamanlis and under Costas Simitis.
Despite recent advancements, Greece still trails the European Union in per capita income and other key indicators. Current GDP growth rates of 2.5% compared to Europe’s 1.5% suggest it could take 37 years just to reach the European average, underscoring the urgent need for accelerated progress.
Geopolitical factors afford Greece no luxury of prolonged stagnation. Challenges like demographic decline, low productivity, inefficient public administration, and inertia regarding critical investments create a precarious situation that threatens both progress and sustainable growth. Thus, traditional approaches to government planning are insufficient. The involvement of proven leaders in resource management, organizational development, crisis management, innovation, and global competition is essential. This calls for a collaborative effort among scientists, managers, and entrepreneurs who can effectively plan for development. Without these changes, time will not be on our side.
Seven Pillars
To genuinely discuss development, we must establish a new National Plan founded on seven key pillars:
1. **Targeted Regional Development:** For balanced growth, Greece needs decentralized planning that recognizes the specific needs of each region—from Western Macedonia to the Aegean islands—with measurable goals and indicators. Each area should leverage its unique advantages—such as natural resources, geographical position, cultural identity, or human capital—collaborating with central services to become integral to the national productive model. Strengthening interregional economic ties through projects and investments will facilitate mutual dependencies and local interests.
2. **Upgrading Public Administration:** Improving the Greek public administration is vital for national progress. An effective administration should prioritize meritocracy, transparency, and continuous training. Reducing bureaucracy via digitization and interconnected registers will enhance citizen experience, lower administrative costs, attract investment, and build public trust. While significant strides have been made, there’s much work ahead.
3. **Functional Infrastructure Interconnection:** Isolated infrastructures are bound to fail. We require seamless connections between ports, railroads, energy projects, and healthcare facilities. Linking agriculture with tourism and supply chains in Greece and abroad is critical. Additionally, integrated ecosystems combining universities, production units, and logistics must be established to ensure sustainable development.
4. **Essential Support for the Tourism Sector:** While Greek tourism has succeeded, it faces a growing crisis concerning housing for its workforce. Seasonal employees, public servants, and other essential workers struggle with exorbitant housing costs or non-existent availability. A priority must be integrating accommodation construction for these individuals into the upcoming development law.
6. **Strategic Time Horizon:** Infrastructure planning requires a 10–20 year perspective, far exceeding the four-year electoral cycle. Cross-party and institutional agreements, possibly backed by social legitimacy through referendums, are essential for ensuring the longevity and continuity of development plans. Focusing on private economic criteria for projects at all levels will expedite implementation and mitigate transparency issues.
7. **Demographic Strategy and Regional Appeal:** Combatting rural decline and youth migration cannot rely on subsidies alone. A comprehensive strategy is necessary to enhance regional attractiveness through quality healthcare, education, infrastructure, cultural amenities, professional opportunities, and affordable housing.
At the core of any demographic policy should be support for families and job creation with prospects. Only through these initiatives can we reverse demographic decline and foster local development.
