Leading officials from the government, the banking sector, and the private sector highlighted the role of mergers and acquisitions as a catalyst for economic transformation in Greece and Southeastern Europe during the session titled “M&A; as a Catalyst for Economic Transformation in Greece and Southeastern Europe” at the Mergers & Acquisitions Summit III, organized by Money Review, a publication of Kathimerini.
Participants in the discussion included Nikos Papathanasis, Deputy Minister of National Economy and Finance; Yannis Papachristou, CEO of the National Development Fund; Nikolaos V. Karamouzis, Executive Chairman of SMERemediumCap and Chairman of Grant Thornton; Nikos Salakas, Chief of Corporate Center & General Counsel at Alpha Bank; and Paris Oikonomou, Head of Wholesale Banking at Optima Bank.
Mr. Nikos Papathanasis referred to the government’s commitment to fully absorb the Recovery Fund’s resources, while also highlighting the new opportunities created by the additional €4 billion in leverage for loans to small and medium-sized enterprises. He specifically noted that “Greece will not lose a single euro of the Recovery Fund’s available resources.”
The Deputy Minister made special mention of the value of entrepreneurship at every level and the support the state must provide, highlighting the pivotal role of the Recovery Fund and the 46 billion euros in leveraged investments that have already been achieved.
He added, in fact, that “the plan for the days ahead has already begun and includes a national component with resources more than double those of the 2021–2025 period for the 2026–2030 period,” with the primary goal being for these resources to translate into a better daily life for citizens.
For his part, Mr. Yannis Papachristou emphasized that the EAT has participated in development projects worth several billion euros and holds stakes in more than 20 companies operating in key sectors of the economy.
Explaining the organization’s philosophy, he stated that “Transforming subsidiaries, strengthening critical national infrastructure, and investing in the new economy are the three pillars that define the EAT’s strategy,” emphasizing the need for the country’s economy to shift toward sectors of the new economy.
The CEO of the National Development Fund focused on how the EAT can improve the process of attracting investment, transforming the current positive momentum into a strong wave of investment. In closing, he referred to the creation of new, high-quality jobs and the distinct role of the NDF as an institutional body in achieving the national goal of attracting investment, making extensive reference to the three pillars that characterize it: reliability, speed, and a continuous flow of investment projects.
Mr. Nikolaos V. Karamouzis discussed the current investment opportunities in the country, while cautioning, however, about the market’s structural weaknesses. As he stated, “Greece has the smallest businesses, on average, in Europe, which face a series of challenges and, at the same time, the need to become more outward-looking.”
He assessed that small and medium-sized enterprises will face a difficult future and emphasized that mergers can offer them the necessary avenues for technological upgrading and strengthening their outward orientation.
At the same time, he highlighted the significant funding gap, noting that “small and medium-sized enterprises need 15 billion to modernize and meet today’s challenges” and that “these funds cannot be raised exclusively from banks.”
Mr. Karamouzis sounded the alarm, saying that “we must not rest on our laurels, because the coming years will be very difficult,” and emphasizing the urgent need to formulate a national plan and a stable framework for reforms.
In his remarks, Mr. Nikos Salakas pointed out that “Greece is still in a growth phase and needs acquisitions, while banks play a decisive and leading role in this process.” He placed particular emphasis on the lack of companies capable of serving as national champions, explaining that mergers can make a substantial contribution toward this goal.
Referring extensively to the role of banks, he underscored their contribution to strengthening the national economy, both as agents of market consolidation and integration and as financiers of major projects.
At the same time, he stressed the need for a stable tax and legal framework. He acknowledged that the country has managed to attract a significant volume of investment, noting, however, that there is still considerable room for improvement. He focused particularly on reducing bureaucracy, improving the speed and quality of the administration of justice, and strengthening the involvement of market participants in the reforms planned by the government.
Finally, Mr. Paris Oikonomou agreed on the need for “national champions,” noting that the Greek economy should make the creation of such strong entities its primary objective. Outlining the market’s future, he stated:
“The intentions, to a large extent, are there, and I would expect to see stronger incentives for the creation of larger entities, as well as greater support, so that Greek business entities can play a leading role in the Balkans and Europe.”