The successive crises of recent years—from soaring energy costs to inflationary pressures on raw materials—have starkly highlighted the structural weaknesses of the Greek economy. In an international environment marked by intense geopolitical volatility, the discussion regarding the restructuring of our productive model ceases to be a theoretical exercise and becomes an urgent national necessity.
The strategy for the country’s future boils down to one critical concept: productive balance. Greece, like no other country in the world, cannot afford to rely on a single-sector economy. Tourism and the services surrounding it are undoubtedly a strong and essential pillar. At the same time, sectors such as logistics, financial, and professional services are demonstrating in practice that they possess significant growth potential.
However, the domestic manufacturing sector remains the weakest over time. According to World Bank data, manufacturing in Greece contributes just 9% of GDP, while the European average stands at 14%.
This disparity reflects not only the significant room for improvement that exists, but also the need to shield the country. An economic model that relies excessively on imports is inherently exposed and vulnerable during periods of global turmoil, when sufficiency and self-sufficiency are matters of strategic security.
The food industry as a driver of growth and promotion of an international brand
Against this backdrop, the Food and Beverage Industry stands out as one of the few sectors that ideally combines domestic production with a strong outward focus. The findings of a recent IOBE study confirm the sector’s strategic importance:
- Leader in Manufacturing: It is the largest sector in Greek manufacturing with a turnover of 21.7 billion euros, a figure representing 23.2% of total manufacturing revenue.
- Key Pillar of Employment: It is the sector’s largest employer, providing more than 140,000 direct jobs and accounting for 37.5% of the manufacturing workforce.
- Export Powerhouse: It contributes over 14% of the country’s total exports, with a value of 7 billion euros.
But beyond the numbers, the Greek food industry plays another crucial role: it is the best ambassador for the Greek “brand name” internationally. By exporting products of high nutritional value, identified with the Greek land, it creates a unique, irreplicable advantage that complements and reinforces our tourism product itself.
The need for this dynamic sector to acquire an even stronger, institutional voice at the heart of economic decision-making is evident. The Hellenic Federation of Enterprises (SEV) has consistently and vigorously advocated for the interests of the business community; however, the representation of the manufacturing sector of the food industry in decision-making centers can and must be further strengthened so that it accurately reflects the sector’s specific weight in the Greek economy.
The “national challenge” of productivity and investment
An honest assessment of Greek industry’s competitiveness requires a focus on the real “Achilles’ heel” of our economy: low productivity.
Today, productivity per worker in Greece stands at just 54% of the European average, while if we examine the same indicator per hour worked, the figure drops to 43%.
Contrary to the distorted stereotypes that prevailed during the crisis, this low performance is not related to the workforce’s work ethic. According to EUROSTAT data, working hours per employee in Greece are 3.8 hours higher per week than the European average. The problem is deeply structural, technological, and investment-related.
Reversing the productivity trend must become a national priority, a central goal of economic policy, on par with reducing unemployment. High productivity is the only sure path to sustainable growth, which translates into the creation of added value, better-paid jobs, and the distribution of wealth throughout society.
To achieve this, an immediate boost to fixed capital investment is required; in Greece, this has stagnated in recent years at 15% of GDP, compared to 21% in Europe. The state must act as a catalyst by providing the appropriate incentives.
In this context, the Hellenic Federation of Enterprises (SEV) has submitted specific and well-developed proposals, with the adoption of the accelerated depreciation measure being the primary one. This is a tool with proven immediate results, which does not draw on state budget resources but, on the contrary, mobilizes private capital, allowing businesses to benefit from the added value of their investments.
At the same time, industrial policy must address the issue of energy costs, which continue to weigh on the competitiveness of Greek products, particularly in international markets. Although steps have been taken, deep reforms are needed to remove the bottlenecks in the Greek energy market model.
The stakes are even higher when we consider the broader trend of deindustrialization in the European Union, where manufacturing’s share of GDP has fallen from 20% in the early 1990s to 14% today, making Europe vulnerable and dependent.
Digital Transformation: Artificial Intelligence as a Catalyst for SMEs
In today’s business environment, the Greek manufacturing sector is called upon to simultaneously manage a threefold challenge: the green transition, digital transformation, and boosting productivity. Along this path, the risk of creating a gap that leaves smaller and medium-sized industries behind is real, but not inevitable.
While large companies clearly have more resources, emerging technologies—and particularly Artificial Intelligence (AI)—serve as a major balancing factor. AI can become an extremely valuable ally for smaller businesses, as:
- It helps them gain access to advanced tools that multiply their productivity at minimal cost.
- It benefits them due to their flexibility, allowing them to adapt to changes much faster than a large, bureaucratic organization.
It is useful to clarify a common misconception: SEV is not an organization that exclusively represents large enterprises. On the contrary, through close institutional cooperation with regional associations, it directly and indirectly represents over 4,000 businesses and industries across the country.
Through targeted educational and informational initiatives, the Association ensures that modern tools and expertise reach every Greek business, with the ultimate goal of unleashing the potential of the entire business ecosystem, regardless of size.
Belief in responsible industry and collective commitment
For the Greek economy to turn a definitive new page, a profound shift in mindset is required, both at the political and social levels, toward responsible manufacturing and industry.
Once the understanding takes hold that manufacturing is not an activity of the past, but the primary vehicle for the country’s sustainable development, social cohesion, and economic security, then we will be in a position to take the right and decisive steps toward the future.
It is precisely this vision of a strong, productive Greece that I wish to actively serve. The need for meaningful representation of the manufacturing sector of the food industry, combined with the particularly honorable proposal from President Spyros Theodoropoulos, was the catalyst for my own decision to run as a candidate for the SEV Board of Directors.
This is a personal commitment to work toward giving a clear, dynamic, and effective voice to the industry that has consistently supported the Greek regions and our society.
* Nikos Loulis is the President of Loulis Food Ingredients and a candidate in the elections for the SEV Board of Directors