Investments must be strengthened, both at national and EU level, the CEO of Eurobank, Fokion Karavias, said at the “7th Athens Investment Forum” conference, adding that the Recovery and Resilience Fund should be extended after 2026-2027.
“Europe needs an investment leap,” in order to catch up with the US and China in competitiveness, innovation and new technologies,” he underlined.
“It is not easy, it is not impossible, it is necessary”
According to the Draghi report, fixed capital formation should reach 27% in Europe, compared to 22%, while in Greece it is only 15% of GDP. In our country, Karavias added, a steady increase in fixed investment of 9% per year in real terms is required annually for a full decade. It will, therefore, require a sustainable investment spree which has not been recorded since the 1950s. “It is not easy, it is not impossible, it is necessary,” he stressed.
For Greece, he believes that the conditions exist today for the acceleration of investments.
First, the banking system is strong again, already financing all major projects in the country and has the potential to support even more investment.
Second, most medium and large companies have healthy balance sheets and good profitability, some of which they can and should direct to new investments.
Third, there is the big tool of the Recovery and Resilience Fund and other European resources that reach 97 billion euros by 2027.
Commenting on the ongoing discussion about a possible VAT reduction in our country, the head of Eurobank stated that it will not have any impact on consumers.
Concluding, he underlined the need for investments focused on the administration of justice, legal security, land use, and a clear environment for business activity.
