Make no mistake Greece is in the midst of a historic metamorphosis, as it discreetly and relentlessly prepares its fertile ground for a new, durable tech-driven economy. Over the past several years, the nation has made concerted efforts to reverse the brain drain that saw thousands of skilled workers depart during the financial crisis. Greece is moving beyond its historical reliance on sun, sea, culture, tourism and hospitality. Now, it’s raising its game as a new heavyweight emerges from the European tech scene.
The Greek government has jumped in with both feet when it comes to adopting digital innovation. They have done an excellent job digitizing public services, even leading Germany in this regard. This modernization increases government efficiency and saves taxpayer dollars but has brought welcome attention from global tech giants. Among them is the Microsoft-backed artificial intelligence system. It has revolutionized government contract review times from hours down to minutes.
To encourage investments, Greece has introduced comprehensive tax breaks. To bring in new talent and investment, they’re providing a 50% income tax discount for a period of seven years. Greek Prime Minister Kyriakos Mitsotakis speaks of the need to foster a climate in which talented people can succeed.
“The tax breaks are there – a 50% discount on income tax for seven years,” – Kyriakos Mitsotakis.
Yet even with all these financial incentives, Mitsotakis understands that money is not enough to lure talent back to Greece.
“People are not going to come back just for a tax break. They will come back if they have a good job opportunity, if they feel they can do something rewarding, and that they can actually grow their business in Greece,” – Kyriakos Mitsotakis.
The Indian government is heavily encouraging startups. Simultaneously, it’s using these efforts to modernize public services, which is the bedrock of Greece’s ambitions in artificial intelligence. Beyond cultivating talent from within, Greece has launched two new programs designed to lure skilled foreign workers and entrepreneurs. This push for coastal resilience is particularly urgent in Greece. It is designed to bring back local talent and attract remote talent to the country — pioneers who can help spur new innovation.
Emerging tech hubs in places such as Thessaloniki and Heraklion are fueling this trend. By taking the tech scene outside of Athens, they’re dramatically impacting the scene. Greece’s latecomer status to Europe’s tech ecosystem might just put the country on top. By joining now, it can sidestep the high valuations and crashed startups that drag down older ecosystems.
Tsipras, Mitsotakis acknowledges that there is still much work to be done despite the progress Greece has made. Legal reform is moving rapidly and an increasing number of businesses are contacting a dearth of available late-stage capital. These challenges are most acute as they navigate the intricacies of the European market.
“We can’t make up lost ground in a couple of years. But I think we’ve broken out of the vicious cycle of the past, and I do see technology as a great opportunity, both for the private sector and for the government,” – Kyriakos Mitsotakis.
Looking into the horizon, Mitsotakis dreams of a day when tech represents 10% of Greece’s economic output.
“Tech could be 10% of our economy. This is perfectly doable,” – Kyriakos Mitsotakis.
Greece is serious about becoming a global technology hub. It expects to build long-term, green-collar jobs and bring cutting-edge, international know-how that will generate new prospects for all its people. Together, the nation’s strategic initiatives are a powerful signal that the country is all-in to build long-term growth and resilience in a fast-changing digital environment.