Key messages

• Business opposes the weaponisation of the sanctions policy and the use of such measures to pursue economic interests. Sanctions are designed specifically to enforce the respect of international law to counter fundamental threats to peace and stability and the protection of human rights and must be limited to these core purposes.
• We welcome the political attention to this matter and support a more assertive approach by the EU to protect its sovereignty in economic diplomacy. Unilateral measures that risk escalation with third countries should remain an option of last resort and multilateral approaches should be actively sought where possible. Especially with the USA as our traditional ally, the main aim must remain to achieve alignment on sanctions policies and implementation. A close cooperation regarding sanctions should also be established with the UK as part of the future relation.
• The aim must be to deter harmful action by third countries and, if necessary, to increase the costs for such harmful action. To do so, the toolbox needs to be better equipped with well-targeted, non-discriminatory, and well workable and implementable solutions. In the current absence of an effective mechanism, EU companies are caught between a rock and a hard place.
• The EU, together with its allies, should take international leadership on this issue leveraging on its economic and political weight. The EU should insist on a multilateral strategy as this will increase the political strength of the argument.

Read our position paper: Recommendations to strengthen the EU foreign economic diplomacy in the area of sanctions

Negotiators need to work towards an agreement that works for business

Today, BusinessEurope published its position paper on the future EU-UK relations. European business wants to maintain strong economic ties and keep a close economic relationship while preserving the integrity of the Single Market.

BusinessEurope Director General Markus J. Beyrer said: “EU-UK trade must remain tariff and quota free and non-tariff barriers must be minimised. We also need ambitious provisions covering among others trade in services, investment, data flows and government procurement. Divergence in rules should be avoided to maintain barrier-free trade. Continuous regulatory cooperation and mutual recognition will be crucial to mitigate disruption also in the long term.”

He added: “European business is ready to play an active role during the negotiations. We expect a high level of ambition on both sides but there is limited time to achieve a comprehensive EU-UK trade agreement. Therefore, the transition period needs to be used efficiently in order to finalise, ratify and implement the agreement in time. But if it becomes evident that the time available does not suffice, both sides should be open to finding pragmatic solutions that prevent cliff edge by the end of 2020.”

Read our position paper on the EU-UK future relationship

Systemic challenge and market-distorting practices must be addressed
Today, BusinessEurope published its key strategy paper on the EU’s economic relationship with China. European business wants to build a stronger and fairer economic relationship, but systemic challenges prevent European companies from untapping this economic potential. The obstacles created by China’s state-led economy lead to market distortions in China, in the EU and in third countries. We call on the EU to reconsider how it engages with China, so that it can seize the opportunities and mitigate the distortions and challenges created by China’s state-led economy.

BusinessEurope President Pierre Gattaz said: “China and Europe have benefitted tremendously from China’s accession to the WTO in 2001. But in recent years, the consolidation of China’s state-led economy over market-oriented reforms and the difficulty in achieving much needed WTO reform have led to an imbalance in the global level playing field.”

BusinessEurope Director General Markus J. Beyrer said: “There is today a renewed sense of urgency among the European business community: the systemic challenge posed by China’s market-distorting practices cannot remain unaddressed. The EU should rethink how it engages with China, with a view to securing a stronger and fairer economic relationship and levelling the playing field.”
In order to rebalance the economic relationship towards a stronger and fairer one, BusinessEurope advances four key objectives for the EU to pursue:

1. Secure a level playing field between China and the EU;
2. Mitigate the impact of China’s government-induced market distortions;
3. Reinforce the EU’s own competitiveness;
4. Ensure fair competition and cooperation on third markets.
5. To achieve these four objectives, the paper lists 130 recommendations to authorities in the EU and its Member States.
   —
   Read our strategy on rebalancing the EU-China relationship here.
   Read also the executive summary in English here, in Chinese (Mandarin) here.

Interview of Mr. Vyron Vasileiadis, Founder & Chairman of V Group of Companies to Eleftheria Roma, Senior Advisor, Division of International Relations and Regional Policy of SEV.

E.Roma: Dear Mr. Vasileiadis, V Group, a dynamic Group of Companies, focuses on the areas of Waste Management and Environmental Technologies, highlighting the principles of the circular economy for a sustainable future and aiming for a zero-waste operating model. Would you like to tell us a few words about this extrovert orientation and activity?

Vasileiadis: Our Group is an environmental organization active in the fields of waste collection and management, alternative fuel production, Renewable Energy Sources, green technology and investments. Its activity also extends beyond borders with a presence in Egypt and the Balkans.
Indeed, our Group has fully adopted the business philosophy of zero carbon footprint and emissions, while the principles of circular economy are not just a strategy, but genetic characteristics of our identity. In fact, V Group was the first organization in its field to achieve a carbon footprint balance and receive relevant certifications.
The extroversion in our case is not focused on the classic advertising of our activities, but is based on the essential approach of all interested stakeholders, including local communities in which we operate but also the markets in which the V Group Group expands. For this reason, our Group designs and implements a holistic outreach plan with the aim of creating long-term relationships of trust, with local government bodies, industry bodies, international associations and organizations, academic institutions and environmental organizations. Our outreach strategy is not based on promoting what we do, but on contact and meaningful dialogue, with the sole purpose of mutual benefit.

Roma: V Group and the Suez Canal Authority signed a few months ago an agreement for the collection and management of waste. What does this collaboration entail for you and how do you see it contributing to the further expansion of the group’s business activity in the wider region?

V. Vasileiadis: I feel proud that one of the biggest brands of global shipping, Suez Canal, has chosen a Greek group as a partner and exclusive provider of port reception facilities. During the signing of the contract, we had the honor to do so in the presence of Prime Minister of Egypt and the Ministers of Environment and Petroleum.
The quality of Antipollution’s services (member of V Group), its 75 years of experience and the professional excellence of its executives, were recognized internationally and led to this success. Our sole objective at this time is to immediately start providing services and contribute to the Suez Canal Management Authority’s 2030 Green Canal goals by implementing strict safetyprotocols and international regulations for environmental protection. Antipollution has a lot to offer to the global shipping community and it is certain that it will consistently respond to international invitations.

Roma: You participate in the Business Council of Greece – Saudi Arabia, which was founded in 2022 at the initiative of Hellenic Federation of Enterprises. What is the added value you get from this participation?

V. Vasileiadis: Our participation in the Business Council of Greece – Saudi Arabia is a special honor for our Group and at the same time a large pool of cooperation opportunities. We follow the work of the Council with particular interest and participate in its appropriate actions. At the same time, we receive the essential information that is channeled and we make use of the knowledge that we receive. The contact with Saudi Arabian companies offers us the right to network and also get to know new methodologies, modern applications and innovative practices.

E.Roma: As a member of the Hellenic Federation of Enterprises Extoversion Committee, what are the benefits you get? Which would you say has been the most important so far and how has it helped you?

V. Vasileiadis: The presence of our Group in the Extoversion Committee is extremely important, as it constantly supplies us with valuable information about foreign markets. At the same time, the Committee’s work forms the basis for the dialogue with foreign companies and at the same time a matrix of opportunities for penetration into countries outside of Greece. In addition, the organized action program of the Commission offers the possibility of planning approach and contact with international stakeholders. The most important benefit we have obtained is the continuous supply of the Business Development department of our Group with timely information about the countries that interest us.

E.Roma: Do you think that ESG principles are a priority in business planning? What is your feeling about Greek businesses and what initiatives has V Group taken in this direction?

V. Vasileiadis: ESG principles underwrite each of our projects and are the denominator of each of our activities. Our entry months ago into the Sustainable Development Council was the recognition of the above but also an additional promise we made to do even more in this area. For this reason, we have established an autonomous, dynamic ESG department, signed memorandums of cooperation with leading ESG partners, design and submit an annual sustainability report, actively participate in actions, invest in knowledge, sponsor initiatives and continuously train our staff.

E.Roma: Mr. Vasileiadis, thank you very much for your time and for your interesting answers. We wish V Group even more success.

The European business community fully supports the measures taken so far and calls on the European Commission, the Council and the European Central Bank to do whatever it takes to make sure that as many businesses as possible survive this crisis and can help rebuild our economy and protect our European way of life once the health crisis caused by COVID-19 is overcome.

We support the measures necessary to contain the further spreading of COVID-19. Public health is the first priority. Our sympathies are with the families already affected. We express our gratitude to the workers and businesses who are showing exceptional courage and resilience, both to treat the sick and to maintain the vital goods and services we all depend upon.

This crisis is not only a major challenge for public health but will also have substantial negative impact on EU growth in 2020, with the likelihood of a large number of EU member states experiencing a significant or in some cases even massive downturn. Workers and companies, especially SMEs, are already suffering dramatically from the necessary restrictive measures which have been put in place.

Protecting our society will require extraordinary responsibility, action and solidarity from all parties, said Markus J. Beyrer, Director General of BusinessEurope:

• Responsibility as businesses, workers and citizens, to ensure everything we do helps address this crisis.
• Action, both to maintain the essential functioning of our economy in the immediate future and to ensure that once the spread of the virus is addressed, we have maintained the business eco-system vital to fully restoring our treasured European way of life.
• Solidarity between businesses of all sizes, between businesses and governments and between all EU member states.

Today, BusinessEurope, the umbrella organisation for the leading national business and employers’ federations of 35 European countries calls for urgent action to save the WTO Appellate Body. In Zagreb, BusinessEurope’s Council of Presidents of national member federations met and sent a strong warning, speaking on behalf of around 20 million small, medium and large companies throughout Europe.

Today, BusinessEurope, the umbrella organisation for the leading national business and employers’ federations of 35 European countries calls for urgent action to save the WTO Appellate Body. In Zagreb, BusinessEurope’s Council of Presidents of national member federations met and sent a strong warning, speaking on behalf of around 20 million small, medium and large companies throughout Europe.

BusinessEurope President Pierre Gattaz said:

“We see rising protectionism and unilateralism as serious threats to sustainable economic growth. The World Trade Organisation (WTO) has been ensuring, since its creation in 1995, that countries around the world respect the rules of the game.

Countries were able to settle disputes in an orderly way through the WTO independent dispute settlement system that includes an Appellate Body. The Appellate Body will be paralysed by next week, leaving the whole dispute settlement system in the verge of collapse in a moment when trade disputes are increasing.

“The current system has provided massive benefits to business and consumers and is an essential element of the WTO. It is not perfect and needs substantial reform, but instead of destroying what we have, we need to agree on improving it. Behind every trade dispute there are companies that rely on clear, stable and enforceable rules. Therefore, we ask all WTO members to act responsibly and find a solution that can prevent the law of the jungle in international trade.

Until an agreement in the WTO is reached, countries should also look at alternative dispute settlement solutions, as the European Commission is currently proposing”.

The EU economy is experiencing an economic slowdown, reflecting declining global demand and uncertainties due to trade tensions. We forecast 1.3% real GDP growth in 2019 for the EU28 and 1.2% in 2020. This entails a significant downwards revision from our spring forecast released half a year ago (down from 1.6% for 2019 and 1.7% for 2020).

As a consequence of trade tensions, European manufacturing output is down around 2% from its peak two years ago. Whilst strong wage rises and increasing employment are supporting domestic consumption, this is likely to fall as consumers become more cautious, acting as a brake on service sector growth.

Substantial risks to the economic outlook are concentrated on the downside due to the potential for escalation of trade tensions between both the USA and China and the USA and the EU, which would impact negatively on business, and the uncertainties that persist around a possible no-deal Brexit.

The outlook also takes stock of the difficulty of hiring specialists with skills in information and communication technology that many businesses experience. It concludes that whilst there is evidence that companies are increasing wages considerably for professions where shortages are most acute, we need a response from the educational system to address growing skills imbalances.

Individual country evaluations

SEV, ACCI, Enterprise Greece and SEVE invite you to attend an information event regarding the Uruguayan market on Tuesday, December 12, 2023 at 14:00, at the premises of SEV (Xenophontos 5, 10557 Athens), with the support of Eurobank.

This event aims to inform Greek entrepreneurs on the prospects, possibilities and business opportunities offered by the Uruguayan market.

The event will be held in English, with physical presence. To join the event pleasε fill in the participation form here .

View the program of the event here .

For more information you can contact SEV (Ms. Athanasiou, T: 211 5006104, E: ir@sev.org.gr ), ACCI (Ms. Tina Retzeka, T: 210 3382342, 210 3382466, E: tretzeka@acci. gr ), SEVE (Ms Gialoglou, T: 2310 535333, E. ny@seve.gr ) and Enterprise Greece (Ms Ladopoulou, T: 210 3355746, E: a.ladopoulou@eg.gov.gr )

Makrigianni: Dear Governor, Greece is currently trying to intensify its bilateral relations and broaden its trade opportunities. Do you believe there are opportunities for the Greek companies in the USA and more particularly at the State of Missouri? If so, in which sectors?

Governor: The State of Missouri provides significant opportunities for companies wanting to grow and expand the reach of their business. In Missouri, we have robust defense, ag-tech, and manufacturing industries, among others. Out of all 50 states in the USA, Missouri is 4th for new manufacturing facilities, 7th for tech manufacturing growth, 10th for our automobile industry, and 10th for our aerospace industry. Our many sector strengths, lend business opportunities for Greek companies to find success among these various supply chains and in our state. Missouri is a low-cost, low-tax state that offers a strategic logistical advantage in the center of the U.S. Companies that choose Missouri are supported by a skilled and capable workforce ready to go to work. Companies that choose Missouri choose success.

Makrigianni: Do you see investment opportunities with mutual interest? And if so, in which sectors?

Governor: Our expansive and growing defense industry offers such an opportunity. For example, Boeing, with its Defense, Space and Security manufacturing facility in St. Louis, Missouri, is the country’s second largest defense contractor. Its primary activity is aerospace manufacturing, but it also participates in aircraft parts manufacturing, ammunition manufacturing, and engineering services. The result is a growing number of companies within the sector or supporting sectors moving to our state to seize on the opportunity to grow their business and contribute to this supply chain.

Another great example is our AgTech and wider Food Solutions sector. Missouri’s robust food solutions industry includes nearly 400 companies and almost 100,000 farms, with the capacity for many more. This is all due to Missouri’s leading role in agricultural commodities such as rice, soybeans, corn, sorghum, cattle, turkeys, and hogs. Our diverse and thriving agriculture industry provides significant opportunity for Greek companies involved in the expansive value- added supply chain of agriculture.

Makrigianni: Are there any specificities (tax-oriented etc.) that should be taken into consideration by a Greek company potentially doing business in the USA?

Governor: As previously mentioned, Missouri is one of the most business friendly states in the U.S. We have low taxes, a low cost-of-living, and significant resources to help company’s skill up their workforce. We offer partnership in job training through our Missouri One Start and Missouri Works programs and enthusiastically support apprenticeship and on-the-job-training opportunities. Due to these efforts, we are 1st in the U.S. for on-the-job-training and 3rd for apprenticeships. These are just a few examples of what our state does to help companies succeed, and they’re resources that don’t come at high tax cost to companies or workers. Missouri ranks 3rd in the U.S. for our corporate tax index. We also recently cut income taxes for Missouri taxpayers, which means more money back in the pockets of Missourians, and prospective employees, to spend, invest, and save. In Missouri, a company finds low costs, a skilled workforce, and ample business opportunities – providing a proven model for success. Missouri is called the Show-Me State for a reason, you show us partnership and we’ll show you success.

V. Makrigianni: Thank you Governor for this fruitful and interesting interview.