JOURNALIST: Minister, you’re planning a trip to San Francisco and Silicon Valley in early November. Is Greece turning into a magnet for high-tech investment?
K. FRAGOGIANNIS: It’s been a year since I visited Boston together with the Deputy Minister for Research & Technology, Christos Dimas, on a trip that also included a stop in San Francisco. That trip was cut short due to Covid, but it was high on our agenda. Of course, since then Microsoft, Amazon, and most recently Google have announced investments in our country. But the effort does not stop there. So, from November 4 to 11, we will pursue our strategic goal, accompanied this time by start-uppers from Greece. This year, we are beginning from a different starting point, aiming to connect the critical resources for the country’s development (start-ups) with reference points (Universities and Venture Capital), especially in the fields of research and innovation. The “Silicon Valley Greek Hub”, already operating in the American innovation capital since 2021, will play a pivotal role in this effort.
JOURNALIST: Do you aspire to return with specific deals “in your “baggage”? What are your investment expectations other than the high-tech sector?
K. FRAGOGIANNIS: We have scheduled a number of important meetings with companies both from Silicon Valley and from other sectors of industrial production. I will not get into specific details. In our government, we have a habit of only talking when we have agreements and some work done, and not before. In San Francisco, we will also visit Stanford and Berkley Universities and that’s another opportunity for us to flesh out Science Diplomacy, something we started in Boston in 2020 in the midst of the pandemic. We will even visit national hubs of other countries to share know-how and best practices. And of course, we will also have meetings with the state leadership of California where a Greek woman, Ms. Eleni Kounalaki, has been elected, and with the mayor of the city. It will also be a personal opportunity for me to give a talk at USF University.
JOURNALIST: Given the visit of the Japanese national business federation KEIDANREN delegation in Athens, is there any interest in investing in Greece, and if so, in what sectors?
K. FRAGOGIANNIS: The cooperation between Greece and Japan in the shipping sector, with Greek shipowners putting their trust in Japanese shipyards for the past 70 years, demonstrates how close this geographically distant country is to us. In 2020, a few days before the global quarantine, I had the opportunity to visit Tokyo and hold meetings with government officials as well as heads of the country’s business multinationals, including KEIDANREN, the Japanese national business federation. Its decision to visit our country with a high-level delegation a few days ago is a vote of confidence in the Greek economy and signals the increased interest of the Japanese side in strengthening bilateral economic cooperation. Discussions on investments in the sectors of energy, transport, high-tech, and tourism have been put back on the agenda. In fact, Greece’s participation in the Osaka International EXPO in 2025 is an excellent opportunity to further strengthen bilateral economic and business relations.
JOURNALIST: How important are economic relations in diplomacy and how does investor confidence affect the country’s image?
K. FRAGOGIANNIS: The government’s investment-attraction policy is paying off with a 70% increase in foreign direct investment since 2019. In the strategic investment section alone, we have approved business plans totaling over €8.5 billion in Enterprise Greece, with another €6 billion in the pipeline. These investments have already resulted in the creation of at least 4,500 jobs throughout the country. However, attracting foreign investment is more complicated than it appears. You have to convince people that you are a credible interlocutor and that the country is an investment destination. What we need to attract investment, and we have done so successfully, is to have political stability, social cohesion, and growth. Simultaneously, there must be the right incentives, but also a momentum, an image of the country that accompanies the entrepreneur. It is difficult to convince someone to come and invest in your country if you have not first created an image of it. And this is what we have achieved. According to Ernst & Young’s international survey in 2021 and 2022, Greece was in the top ten most popular investment destinations, with 75% expecting us to rise even higher in 2022-23, demonstrating that we have gained the trust of the investment community.
JOURNALIST: Thessaloniki – Izmir line. How significant is it and what does it demonstrate, during a difficult diplomatic period with Turkey?
K. FRAGOGIANNIS: The recently inaugurated Thessaloniki – Izmir ferry connection, with the first trip taking place on October 10, is part of the Positive Agenda with Turkey initiative. Let me remind you, very briefly, that the Positive Agenda is an economic diplomacy initiative that promotes bilateral cooperation on low policy, but mutually beneficial issues, mainly in the field of economy. The successful completion of the Positive Agenda’s individual points is undoubtedly important. At the same time, it is also encouraging because, in the midst of a generally tense climate in bilateral relations, it confirms Greece’s willingness not only to keep the channels of communication open but also to promote cooperation wherever possible.
JOURNALIST: You were also in charge of the positive agenda talks between Greece and Turkey. Can contacts and initiatives continue at this level when the climate is “belligerent” in terms of rhetoric as it is now?
K. FRAGOGIANNIS: Well, let me reiterate that the Positive Agenda with Turkey is an initiative and action of Economic Diplomacy, which, even in the present context, I dare say is considered successful. Apart from the fact that most of its 25 points have either been completed or are at an advanced stage of implementation, it has succeeded, as a tool of low diplomacy, in opening new channels of communication between the political and business communities of both sides. Moreover, despite the fact that there has been a postponement to the next round of discussions, there is no intention of canceling the initiative. On the contrary, we seek to reactivate these channels provided that the overall climate improves.