Business Partners | July-August 2011 by Raymond Matera Publishing

BUSINESS

bponline.amcham.gr

JULY-AUGUST 2011 Vol. X | No. 55

Standard & Poor's, Sovereign Ratings, and Greece ▼

Tax Evasion in Greece— An Economic and Social Issue ▼

Strategy & Innovation

Sailing ‘BeforeThe-Wind’ ▼

Real Estate

How Homeowners Can Make More With Less ▼

Latest Human Resources Trends in the Pharmaceutical Industry ▼

Plus Biz Buzz Names & Faces Trends & Trade Makers

AMERICAN-HELLENIC CHAMBER OF COMMERCE www.amcham.gr

North Greece— The Challenge. . . & Opportunity Nikolas Bakatselos

President of the Chamber’s North Greece Committee Managing Director, Pyramis Metallourgia A.E.

Volume X | Number 55

CHAMBER.PRESS ISSN 1109-4990 CODE: 6526

CHAMBER.PRESS

contents

AMERICAN-HELLENIC CHAMBER OF COMMERCE bponline.amcham.gr

AMERICAN-HELLENIC CHAMBER OF COMMERCE

4 THE BOARD

6 Strategy + Innovation Sailing ‘Before-The-Wind’

by Constantinos Stavropoulos

8 Chamber News 1 0 HR Today

Nikolas Bakatselos, Vice President of the Chamber and Chair of the Chamber’s North Greece Committee, discusses the challenges and opportunities in North Greece

Latest Human Resources Trends in the Pharmaceutical Industry by Virginia Argyratou

1 2 Real Estate

How Homeowners Can Make More With Less by Nikos Iatrou

1 4 Names & Faces in the News 1 6 Insight

Losing (to) the Eye of the Tiger by Alexander Athanassoulas

1 7 Taxation Update

Virginia Argyratou, Principal Consultant, Stanton Chase Athens on human resource trends in the pharmaceutical industry

New Measures and Taxation by Dr. George S. Mavraganis

1 8 Biz Buzz

Currents in Today’s Business Environment

2 0 Education

Reforming Higher Education: Three Pillars

2 1 Travel USA

Discover America—Connecticut

Moritz Kraemer, Managing Director EMEA, Analytical Manager (Sovereign Ratings) at Standard & Poor’s, discusses the highly sensitive topic of sovereign credit ratings

2 2 THE INTERVIEW

Nikolas Bakatselos, Vice President of the Chamber and Chair of the Chamber’s North Greece Committee

2 4 The Greek Economy

Standard & Poor’s, Sovereign Ratings, and Greece with Moritz Kraemer

B usiness Part n ers is the bi mon thly magaz i ne o f t he A m er ican- He llenic Ch amb e r o f Comm erce DIRECTOR Elias Spirtounias e.spirtounias@amcham.gr PUBLISHER & EDITOR Raymond Matera materay@ath.forthnet.gr Please Recycle

ADVERTISING Raymond Matera materay@ath.forthnet.gr DESIGN snack• PRINTING & BINDING A. PSILLIDIS & CO

OWNER American-Hellenic Chamber of Commerce Politia Business Center 109-111 Messoghion Avenue 115 26 Athens Tel: +30 210 699.3559 Fax: +30 210 698.5686-7 E-mail: info@amcham.gr BRANCH OFFICE 47 Vassileos Irakleiou Street 546 23 Thessaloniki Tel: +30 2310 286.453, 225.162 Fax: +30 2310 225.162 E-mail: n.tsavdaroglou@amcham.gr

2 6 Tax Evasion

Tax Evasion in Greece—An Economic and Social Issue with Stavros Costas

2 8 Shipping

Greek Shipping: Smooth Sailing, Only Minor Waves Ahead by Ioannis Michaletos

3 0 Trends & Trend Makers 3 2 Viewpoint

Let us dedicate ourselves to what the Greeks wrote so many years ago

JULY-AUGUST 2011 | BUSINESS PARTNERS |

DIRECTOR’S DESK

Are we, finally, lost? Does any hope exist? These questions appear to dominate the thoughts of our fellow citizens, who are being affected by an unprecedented economic crisis and—dare I say it—by the dead-end political and social behavior that we see every day. In such cases of desperation and indignation, what we urgently needed is a concrete vision that will speak directly to the hearts of citizens, a vision that will surpass opposition and moaning, a vision that will restore a pride lost and will offer hope. This is the role of true leadership. What is required, therefore, is a leader who will undertake the weight of his responsibilities, will admit his errors, and will try to inspire his people, if not all, then most. How could he do this? By using a simple language, looking directly in their eyes, analyzing with sincerity the situation and explaining how and under which conditions our country has all the potential of reversing the situation and beginning an ascendant course. Perhaps something like this: My fellow citizens, We find ourselves in a exceptionally difficult situation. We can spend our remaining energy debating who it is to blame. Or, if we let ourselves stand in front of a mirror, we might discover perhaps the share of guilt that corresponds to each one to us. We, politicians, are to blame more, since when we had the power and the means we did not commit to change and develop a state with correct structures and processes. However, it is not late. We can begin to do this—but to succeed our country needs each one of us. No one is excluded in this titanic effort needed to reverse our course. We live in a blessed country with unlimited possibilities of human growth. However, we continuously overlook this and, with our actions, we keep destroying this place called Greece. With closed eyes we can envision a country whose incredible beauty invites stupendous tourism development, a country enriched with blessed soil that can produce every kind of agricultural product, a country whose astonishing climatic conditions can convert energy from the sun and wind, a country blessed with fine minds and a creative spirit. It is a country in which many others would wish they could live. And as we have our eyes closed, let us also decide if, in the end, we want to be patriots or par(t)iots....... Elias Spirtounias Executive Director

The American-Hellenic Chamber of Commerce A Dynamic, Proactive Chamber The American-Hellenic Chamber of Commerce was established in 1932 and is one of the largest, most active, and dynamic American Chambers in Europe. Virtually all American companies that do business in Greece and Greek companies that engage in trade with the United States are members of the Chamber. The Chamber's membership is comprised of more than 1,000 proactive companies that seek to expand business horizons, create new business partnerships, and take advantage of trade and investment opportunities in today's global economy. The American-Hellenic Chamber of Commerce is an active mem-

| BUSINESS PARTNERS | JULY-AUGUST 2011

ber of the U.S. Chamber of Commerce in Washington D.C. and the European Council of American Chambers of Commerce (ECACC).

Mission Statement The American-Hellenic Chamber of Commerce strives for continuous improvement of American-Hellenic commercial and financial relations, through increased membership and through the organization of top-quality events, exhibitions, fora, seminars, and congresses on both sides of the Atlantic.

C.Ad.01/07

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American-Hellenic Chamber of Commerce Executive Committee

Committees

Gramatidis Yanos President | BAHAS, GRAMATIDIS & PARTNERS

Auditors Committee

Kyriacou Marios T. Vice President | KPMG CERTIFIED AUDITORS A.E.

Members: Felonis Athanassios, Papakosmas Dimitrios, Sabatakakis Kyriacos | Coordinator: Andriana Chadjianagnostou

Bakatselos Nikolaos Vice President | PYRAMIS METALLOURGIA A.E.

Corporate Governance Committee

Karayannis Angelos Secretary General | KARAYANNIS K. GROUP OF COMPANIES Panayotopoulos Litsa Treasurer | M2M SOLUTIONS CONSULTING SERVICES Anastassopoulos Simos Counselor | PETSIAVAS N. S.A. Bacacos George Counselor | BACACOS P. CHEMICAL & PHARMACEUTICAL PRODUCTS CO. S.A. Charalambous Odysseas Counselor | CISCO SYSTEMS HELLAS S.A. Papadopoulos Thanos Counselor | CHEVELLAS S.A.

Chair: Papacostopoulos Constantinos | Members: Charalambous Yiangos, Dimou Ioannis, Petalas Apostolis, Siamishis Andreas, Hadjisotiriou Paula, Theodoulidou Maria | Coordinator: Daphne Constantinidou

Corporate Social Responsibility Committee

Chair: Stavridis Stelios | Members: Alexiou Maria, Constantelis George, Lolas Vassilis, Papademetriou Pakis, Vrachatis Ioannis | Coordinator: Angela Boyatzis

Environment & Energy Committee

Members: Aloupis Constantine, Bakouris Costas, Karayannis Angelos, Manos Alexandros, Melissanidis Dimitris, Mytilineos Evangelos, Nomikos Elias, Papadimitriou Spyros, Papavasileiou Athanasios, Peristeris George, Stefanakis John, Yannopoulos Sotiris, Yiannopoulos Emil | Coordinator: Angeliki Dikeoulia

Greek Economy Conference Committee

Spirtounias Elias Executive Director

Chair: Kyriacou Marios | Members: Anastassopoulos Simos, Antoniades Vassilis, Bacacos George, Yannopoulos Sotiris | Coordinator: Angeliki Dikeoulia

Innovation & Education Committee

Chair: Panayotopoulos Litsa | Members: Charalambous Odysseas, Farmaki Teresa, Giourelis Stephanos, Kollas John, Makios Vassilis, Makridakis Spyros, Patakiouti Maria, Rizopoulos Yannis | Coordinator: Katerina Tzagaroulaki

Board of Directors Antoniades Vassilis | THE BOSTON CONSULTING GROUP Antonopoulos Constantinos | INTRALOT S.A. - INTEGRATED LOTTERY SYSTEMS AND SERVICES Canellopoulos Paul | CHARTIS GREECE S.A. Costas Stavros | Economist Costopoulos Alexandros | FORESIGHT STRATEGY & COMMUNICATIONS Costopoulos John | HELLENIC PETROLEUM S.A. David George | COCA-COLA HELLENIC BOTTLING COMPANY S.A. Filiotis Dionysios | PHARMASERVE-LILLY SACI Frangou Angeliki | NAVIOS MARITIME HOLDINGS INC. Karella Katerina | PFIZER HELLAS S.A. Kartsanis Georgia | CEO CLUBS GREECE Khan Pheroze | BRISTOL-MYERS SQUIBB A.E. Kibaridis Stelios | ALAPIS S.A. Kokorotsikos Paris | EUROCONSULTANTS S.A. Kosmatos Makis | JOHNSON & JOHNSON HELLAS S.A. Kouides Antonis | B.E.R.M.A. A.E. Koutsoureli Eftychia | INFO-QUEST S.A. Kyriakides John | KYRIAKIDES GEORGOPOULOS & DANIOLOS ISSAIAS LAW FIRM Mamidaki Eleftheria | MAMIDOIL JETOIL PETROLEUM COMPANY S.A. Manos Alexandros | PIRAEUS BANK S.A. Papalexopoulos Dimitri | TITAN CEMENT COMPANY S.A. Passaris Despina | PROCTER & GAMBLE HELLAS LTD. Plessas Dennys | LOCKHEED MARTIN (INTERNATIONAL) S.A. Priamou John | U.S. COMMERCIAL COUNSELOR (RET.) Saracakis John D. | SARACAKIS BROTHERS S.A. Stavridis Stelios | PISCINES IDEALES A.E. Symeonides Dimitris | MEVGAL S.A. DAIRY PRODUCT INDUSTRY Synghelides Polychronis | CHRYSLER JEEP DODGE HELLAS S.A. Tamvakakis Apostolos | NATIONAL BANK OF GREECE S.A. Yiannopoulos Emil | PwC (PricewaterhouseCoopers Business Solutions SA) Zeritis Panos | THRACE PAPER MILL S.A.

| BUSINESS PARTNERS | JULY-AUGUST 2011

Insurance, Social Security & Labor Matters Committee

Chair: Kremalis Konstantinos | Members: Canellopoulos Paul, Koussia Venetia, Lisseos Panayotis, Panagiotou Andreas, Panorios Manos, Pelidis Manos, Vlasopoulos George, Sarantopoulos Dimitris | Coordinator: Voula Tseritzoglou

IPR Committee

Leadership Committee

Chair: Miropoulos Artemis | Members: Griveas Polychronis, Hofmann Sybil, Katsivelis Pavlos, Kerastaris Antonis, Kofinas Kyriakos, Olympios Spyros, Paraskevaides Stavros, Saracakis Alexandros | Coordinator: Ritana Xidou

Medical Devices & Diagnostics Committee

Chair: Liakopoulos Theodore | Members: Anagnostopoulos Stefanos, Andria Magdalini, Boulougouris George, Deligiannis Konstantinos, Derkos Kalogridis, Kartalis Christos, Krinos Gregory, Maroutsis George, Melas George, Nikas Dimitris, Papazoglou Konstantinos, Politopoulos Anastasios, Strouzos Anastasios, Tsangarakis George | Coordinator: Voula Tseritzoglou

Northern Greece Committee

Chair: Bakatselos Nikolaos | Members: Accas Ioannis, Alexopoulos Charis, Gigilinis Alexandros, Kafatos Vassilis, Katsaros George, Kokorotsikos Paris, Kouides Antonis, Thanasis Kouimtzis, Koukountzos Kontantinos, Mavroudis Theodoros, Pylarinos Othon, Symeonides Dimitris | Coordinator: Nikos Tsavdaroglou

Pharmaceutical Committee

Chair: Karella Katerina | Members: Apostolides Pascal, Boscopoulos Paris, Filiotis Dionysios S., Frouzis Konstantinos, Gerassopoulos Marcos, Khan Pherose, Karagiannoglou Stylianos, Katzourakis George, Kefalas Nikos, Pateraki Evangelia | Coordinator: Voula Tseritzoglou

Public Affairs Committe

Members: Anastassopoulos Simos, Kyriacou Marios, Papadopoulos Thanos | Coordinator: Ritana Xidou

Taxation Committee

Chair: Costas Stavros | Members: Altiparmakis Christos , Ampeliotis Evangelos, Anastasiadis Harris, Desipris Antonis, Doucas Spyros, Gigantes Stavros, Ioannidou Maria, Kerameus George, Kyriakides Stelios, Laskaratos Panagiotis, Mavraganis George, Melemenis John, Mitsios Stephanos, Moraitakis Konstantinos, Papadatos Eugene, Papandreou Cristina, Samothrakis George, Sarafoglou Gerassimos, Savvaidou Katerina, Sfakakis Konstantinos, Spyriouni Litsa, Stavropoulos Ioannis, Stavrides Vassilis, Theophilides George, Trakadi Maria, Tsakonas Yiannis | Coordinator: Katerina Tzagaroulaki

Tourism Committee

Chair: Stylianopoulos Andreas | Members: Ananiadis Tim, Anglos John, Argiri Byron, Marriott Carol, Panayotopoulos Panos, Papadopoulou Catherine, Peressiadis Costas, Van de Winkel Bart | Coordinator: Angeliki Dikeoulia

Women In Business (WIB) Committee

Chair: Kartsanis Georgia | Members: Adamopoulou Efi, Athanassoulas Elena, Dimou-Lampadari Maria, Papakonstantinou Ioanna, Rossou Efi, Sideri Anastasia, Tarou Iphigenia | Coordinator: Angela Boyatzis

H Bristol-Myers Squibb είναι μια παγκόσμια βιοφαρμακευτική εταιρεία με αποστολή της να ανακαλύπτει, να αναπτύσσει και να παρέχει καινοτόμα φάρμακα που συμβάλλουν στην αποτελεσματική αντιμετώπιση σοβαρών ασθενειών.

Together we can prevail.

Together we can prevail. www.bms-greece.gr Bristol-Myers Squibb A.E. Αττικής 49-53 & Προποντίδος 2, Τ.Κ. 152 35 Βριλήσσια, Αττική ΤΘ 63883 - Bριλήσσια, Τ.Κ. 152 03, Αττική Τηλ.: 210 6074 300 & 210 6074 400, Φαξ: 210 6074 333, ΑΡ.Μ.Α.Ε. 62772/01ΑΤ/Β/07/148

Strategy + Innovation

by Constantinos Stavropoulos Founder, InnoValue

In his third column of a trilogy, Constantinos Stavropoulos employs the experience of sailing to discusses strategy and innovation.

Sailing ‘Before-The-Wind’ PIONEERING AROUND (“RUNNING”)

ou innovated your sailing yacht (enterprise) effectively. Imagine the clock again. The wind blowing from 12.00. You sailed her ingeniously ‘off-the-wind’, alternating your ‘reaching’ points of sail. She kept ‘reaching’ into the ‘open innovation’ zone (7.00-10.00 or 2.00-5.00). Splendid! But, the wind has changed again. Now what? Wind blowing from around her ‘stern’ (back)? Wind from her ‘starboard’ (right), between 5.00 and 5.30? What mysterious pathways! Wind from her ‘portside’ (left) from 6.30 to 7.00? What enigmatic tracks! Even wind puffing directly in her back, between 5.30 and 6.30? What mystifying trajectories! So, what ‘point of sail’ (direction) should you get her into now? How do you pioneer? Strategic Innovators, a select class of extraordinary skippers worldwide, have the solutions. These charismatic captains sail ‘before-the-wind’ to pioneer their voyages. They associate with the wind (‘running’). They play with the wind (‘jibing’ their sailboats’ sterns). They flirt with the wind (‘trimming’ their sails). Time though for a glimpse into their ‘point of sail’ (method), ‘jibing’ (approaches) and ‘trimming’ (tools).

“RUNNING” (ASSOCIATING) Strategic Innovators sail their yachts ‘beforethe-wind’, thereby creating new markets, novel categories and unique industries. They glide by both sails and fixed course (‘run-

| BUSINESS PARTNERS | JULY-AUGUST 2011

Optimizers may ‘Beat’ (survive), Innovators may ‘Reach’ (grasp), but only Pioneers will ‘Run’ (conquer) the Future

ning’), thus crafting novel pathways. How? They apply ‘training runs’ to navigate with the wind almost astern, from 5.00 to 5.30 or 6.30 to 7.00. They even enter fearlessly the “don’tgo-zone” with the wind directly astern, between 5.30 and 6.30. They audaciously ‘catch’ the wind, by delicately and variably orchestrating all their sails (mainsail, jib and spinnaker). By ‘running’, their pioneering ‘sailing’ act now becomes principal.

“JIBING” (PLAYING) Strategic Innovators play with the wind, ‘jibing’ gently with ‘twists and turns’. They smartly foresee, preempt and effect ‘next’ business model innovation methodologies. They turn their boats’ sterns (jibing) through the wind to change wind on the other side. They generate novel ‘value-network’ components from scratch. Original customer value propositions, profit formulae, key resources, key processes, business rules, behavioral norms and success metrics. They juxtapose such unique modules from disparate, unre-

lated and contradicting worlds. How? Artistically, imaginatively and harmoniously.

“TRIMMING” (FLIRTING) Strategic Innovators flirt with the wind, by ‘trimming’ (adjusting) their sails. They let out their sails all the way out (eased out) to grasp the wind. They carefully ‘trim’ their sails to avoid any involuntary ‘jibes’ (twists) and even evade needless ‘jibes’ (turns). How? They formulate strategic innovation workshops to combine ‘next’ (not best) practices and case studies with practical frameworks and concrete tools for actual business issues. They incubate innovation labs to stretch thinking and accelerate the innovation process. They submerse into thought leader panels to explore emerging trends and stimulate breakthrough thinking. They execute strategic imagination drills by juxtaposing delicately at the intersections of other adjacent and non-adjacent worlds. They activate venture boards by engaging and blending external provocateurs with internal ‘open’ executive teams. But, this is what Strategic Innovators are already doing. These ‘Forerunners’ conquer the future by co-creating ‘ingenious’ value networks. What are you doing? Sailing ‘before-the-wind’? ‘Jibing’ gently? ‘Trimming’ delicately? Pioneering Beyond?�

A Greek company conquering the globe! > Since 1959 > 9 Company-owned subsidiaries in Europe, Asia & Mid. East > Exports in more that 65 countries worldwide > International business activities count for more than 95% of company's production

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CHAMBER NEWS

Corporate Social Responsibility Conference

Annual General Assembly

Yanos Gramatidis

George Avlonitis

Stelios Stavridis

Mauro Meggiolaro

The annual General Assembly meeting of the American-Hellenic Chamber of Commerce was held on June 27, 2011 at the Hotel Grande Bretagne. The meeting commenced with the welcome address of the Chamber President, Yanos Gramatidis, to the members and according to the first subject of the agenda, the minutes of the General Assembly of June 14, 2010 were read and unanimously approved. President Gramatidis summarized the Chamber activities for the year 2010, noted the difficult year concerning the country’s political and economic issues, and stressed that the Chamber’s activities and initiatives strived to achieve maximum benefits for its members. The President thanked the members for their support to the Chamber for being present at the Annual General Assembly, and wished them every success in their business sector before adjourning the meeting.

Chamber Calendar panel discussion

panel discussion

The Chamber and its Corporate Social Responsibility Committee held the 9th annual Corporate Social Responsibility conference on June 1, 2001 at the Hotel Grand Bretagne. This year the conference focused on Building Responsible Companies—Maximizing Benefits Through a Sustainable Supply Chain. More than 350 delegates attended the day-long event that explores CSR as a key component of today’s enterprise. Supply chains form a key interaction in the business environment and, more than any other component, represent a set of relationships that define how successful companies are in sourcing, producing, and distributing products and services. The conference sponsor was CLUB HOTEL CASINO LOUTRAKI; the conference supporters were HERACLES GENERAL CEMENT COMPANY – LAFARGE, PFIZER HELLAS, VODAFONE; and communication sponsors were KERDOS NEWSPAPER, SBC, EUROCHARITY, GREEN BUSINESS, BUSINESS PARTNERS, CSR REVIEW, SUPPLY CHAIN & LOGISTICS.

| BUSINESS PARTNERS | JULY-AUGUST 2011

September 11 Thessaloniki, Evening cocktail with Minister for Development, Competitiveness & Shipping, Michalis Chrysohoidis September 12 Thessaloniki, Luncheon with Minister of Finance, Evangelos Venizelos September 28 Heraklion, Crete, 3rd Doing Business in U.S. Seminar September 30 Athens, Conference on insurance and labor policies October 7 Athens, Divani Apollon Hotel, Social Media Forum October 24 Athens, Athens Ledra Marriott Hotel, 1st DefenseWorld Conference

AHEI Seminar

Doing Business in the USA

Stephen Flott, Elias Spirtounias, Nikolas Bakatselos, Catherine Kay, Dr. Donald A. Prater

Panel Discussion

The American Hellenic Enterprise Initiative, AHEI, the new US focused program of the Chamber, held the 2nd US Business Seminar “How to do business in the USA” on May 24, 2011 at the Hyatt Regency Hotel in Thessaloniki. The event covered the majority of the sectors of interest for smalland medium-size enterprises (SMEs) and focused on marketing strategy, branding and communication, the legal and tax system of the USA, and procedures to be followed for FDA certification. The AHEI seminars are designed to boost trade and investment between Greece and the USA. Speakers included Catherine Kay, U.S. Consul General in Thessaloniki; Stephen Flott, President, Flott & Co.

Panel Discussion

PC; Athanasios Felonis, Partner, Bahas, Gramatidis and Partners Law Firm; and Dr. Donald A. Prater, DVM Deputy Director (Foods), US FDA Europe Office. Chamber President Yanos Gramatidis and Vice President Nikolas Bakatselos, Chair of the Northern Greece Committee, also addressed the delegates, stressing the valuable role that AHEI is playing in creating new trans-Atlantic partnerships. General managers, entrepreneurs, representatives of the regional Chambers, sales managers, consultants and free agents attended, who all noted that there is a significant potential to enhance the cooperation with the USA.

Greece and International Rating Agencies: Myths and Truths The Chamber invited Mr. Moritz Kraemer, Standard & Poor’s analyst for Greece, to take part in an open discussion on the topic “Greece and International Rating Agencies: Myths and Facts.” The event was held June 15, 2011 at the Athens Hilton. Miranda Xafa, Economist and former representative of Greece to the International Monetary Fund, also participated. Mr. Kraemer, in references to the role of the international rating agencies stressed that their role “is not to issue a recommendation to buy, sell or hold bonds” but a “prediction-estimate on whether investors will receive money on time.” Regarding Greece, Mr. Kraemer stated that there is “adjustment fatigue” but recognized the serious efforts made to date. Referring to the three downgrades given to Greece, he said that qualitative and quantitative indicators are taken into account and that

given that the performance of the adjustment program is disappointing, as well as the state debt, the current rating of Greece is fully justified. He also noted that for rating agencies the “failure” of lending conditions of any kind is perceived as a failure. Mr. Kraemer said that although Greece will need several years to get return to stable growth he considered the crisis as an opportunity to permanently change the way the state operates. Ms. Xafa said that the memorandum did not fail, it was simply not implemented. The massive debt is a symptom, not a cause. The reason is the size of the state and its interventions in the economy. Without a reduction of the state, the debt will be recreated even if it were to be entirely deleted. A lively question and answer session followed the presentations of the two speakers.

Moritz Kraemer

Miranda Xafa

JULY-AUGUST 2011 | BUSINESS PARTNERS |

HR Today

by Virginia Argyratou Principal Consultant, Stanton Chase Athens

Latest Human Resources Trends in the Pharmaceutical Industry

ost pressure, focus on reimbursement, reorganizations as a result of mergers and acquisitions, and the need for new competencies and management skills are some of the new Pharma realities. Within this environment, from the HR perspective, what are the trends in the traditional marketing and sales functions and in other functions as well? How will a pharmaceutical company respond to cost controls and a changing marketplace? Commercial Departments: Pharma industry’s challenges require a detailed understanding of each stakeholder’s role and contribution to value. By better understanding every stakeholder’s unique needs and motivators, a pharma company would be better equipped to improve its internal capabilities, for example, knowledge, skills, and tools to interact more effectively with each constituent. To increase the efficiency of their commercial spend, companies must understand the performance of their marketing channels with far greater granularity and insight and then determine how each channel can contribute to sales growth and improved results. Companies should take action now to become more customer-centric in the face of diminishing returns on commercial spend. Companies must put their products in a context that makes clinical sense for their customers. This requires a much deeper understanding of customers and the issues they face.

10 | BUSINESS PARTNERS | JULY-AUGUST 2011

Key focus areas to consider: a Increase focus on health outcomes research and comparative effectiveness data to understand clinical differentiators and overall effectiveness. b Improve the account management skills of individuals who interact directly with payers. Increase collaboration and use of payer partnerships to share risk, contain costs and create value. Finance Department: Commercial/Finance roles: The expiration of patents, the competitive environment, the pricing pressure and

Companies should take action now to become more customer-centric in the face of diminishing returns on commercial spend the focus on cost control and profitability are the main factors that have changed the mix of the Finance Departments with a combination of commercial and finance responsibilities. Specifically, the significance of the particular role is to link pure finance (e.g P&L analysis, monthly management accounts, and com-

The pharmaceutical industry is undergoing an unprecedented transformation due to the changes in its environment.

parisons with the actual versus budget) with the marketing, sales and operations performance measures, giving a wider set of information to the management team. Corporate Communication/PR Department: Due to the activities they develop, pharmaceuticals continuously find themselves under scrutiny both from public authorities and the general public. Nowadays the industry is usually perceived negatively for many reasons, which includes overpricing drugs, questionable marketing, luring doctors, indifference to the poor, a “no-money no-cure” attitude and industry-government alliances. Now, therefore, more than ever, corporate communication within the pharma industry plays a key role for firms aiming to explain to its stakeholders the way it manages both its internal and external actions, so as to build and protect the company’s reputation. The Corporate Communication departments will have to strength their activities in: a Corporate Social Responsibility (CSR): The engagement in CSR responds to the different challenges this industry faces. External stakeholders (NGOs, media, consumer advocacy groups and public opinion) carefully watch the steps taken by pharmaceuticals. As a consequence, initiatives and communications must be designed to satisfy stakeholders´ needs and expectations. bS ocial Media: This area has opened a whole new way of communication. Until now there was no direct link between companies and patients. The communication process has become two-way as opposed to one-way in the past; social media has been encouraging this and this trend is likely to grow.�

Real Estate

by Nikos Iatrou Nikos Iatrou is Chief Operating Officer (COO) at Coldwell Banker Hellas, part of the Southeast Group; he is a member of the Royal Institution of Chartered Surveyors (RICS)

Given current economic conditions, finding ways to make the best of what we have has become increasingly more relevant.

Coldwell Banker Hellas Tips—

How Homeowners Can Make More With Less

n terms of real estate, there are modifications owners of smaller homes can make to create the illusion of space. For sellers of small homes, creatively manufactured space will appeal to buyers. And buyers should inspect a potential home with an eye towards how they can maximize unused space for their own benefit. Being imaginative with furnishings, decorations and interior architecture can enable homeowners to craft a more useful, and attractive environment. The professionals at Coldwell Banker Hellas offer some of their best tips for living big in a small home: To add space, add a wall. One would assume to maximize space one would remove walls but interior designers recommend adding a wall slightly breaks up a room, or putting a freestanding bookcase in the middle of a room to make a space appear larger. A room of one’s own. For older children, loft beds can free up large amounts of space. They can be redesigned by teenagers as social areas, study spaces, for storage, or as game centers in their rooms. When there is a real lack of space, consider investing in a bed with storage underneath, saving the need for a bureau. Manufacture space. Look for opportunities for built-ins, such as bookshelves in staircases, unusual cabinet possibilities, drawers

12 | BUSINESS PARTNERS | JULY-AUGUST 2011

under beds. Using mirrors on walls opens a room and makes it feel larger. Consider turning the sills on bow and bay windows in the kitchen into window seats, offering more seating and a cozy, café-like environment. The home office: There are many ways to set-up a home office, whether it’s a desk at

the foot of the bed or a more complete setup in the basement. For those lucky enough to own multi-storey properties, another spot to consider is on the second floor stairway landing, which is especially good for working parents who can focus on work and yet still be in the midst of family activity.�

NAMES & FACES

...in the news  Great Offer From SAS: See ‘Wonderful’ Copen-

hagen on Your Way to the USA!

SAS, Scandinavian Airlines System, operate daily flights from Athens to Copenhagen as well as daily flights from Copenhagen to New York, Washington and Chicago. Starting September 1, 2011, on the condition that clients choose SAS operated flights round trip from Athens to New York (Newark airport), Washington (Dulles airport), or Chicago (O’Hare airport) via Copenhagen, SAS are offering on the outbound trip a hotel overnight voucher at the ‘Park-Inn’ hotel in Copenhagen - near the airport. The offer is valid for travel ex Greece for SAS operated flights only in connection with non-stop flights to the USA. Airfares start from 866 Euro for a round trip ticket to EWR, 865 Euro to WAS or 911 Euro to CHI subject to space availability and the validity of the offer. For more details visit www.flysas.gr or a travel agent.  New Athens-NY Flight A new direct flight linking Athens and New York was launched by Hellenic Imperial Airways on June 24. Initially, there will be four flights a week, flying out on Mondays, Wednesdays, Fridays and Saturdays. The flights will land at JFK International Airport in New York. A perk for economy-class passengers is the greater leg-room compared with competing airlines; HIA planes have 217 seats in the same space that Olympic Airways formerly fit 263.  EuroCharity Yearbook The EuroCharity Yearbook 2010: The Future of Responsible Investing was presented in Athens on July 5, 2011. According to Peter Michel Heilmann, EuroCharity President, the new album aims to inform key stakeholders on the latest trends, research, indices, best practices, case studies, intelligence and viewpoints related to this important theme. The American-Hellenic Chamber of Commerce supported the event.

Speaker’s Corner 14 | BUSINESS PARTNERS | JULY-AUGUST 2011

Coldwell Banker International Housing Markets Report Coldwell Banker Real Estate LLC released a report on international housing markets, which compares similar four-bedroom, two-bathroom homes in 30 countries and more than 60 markets outside the United States and Canada. Among the more affluent markets in the report is Neuilly-sur-Seine, Peter-Panayiotis G. Mihalos France, just four miles from the center of Paris. The tourist city of Salinas, Ecuador, offers great affordability. Peter-Panayiotis G. Mihalos, CEO Coldwell Banker Hellas and Southeast Group (photo), said “the second home market in Greece can be the locomotive for the development of the Greek economy. Foreign investors, however, remain cautious awaiting economic developments in Greece. Athens is ranked in the 22nd place among 62 markets.  www.coldwellbanker.com

Club Hotel Casino Loutraki Club Hotel Casino Loutraki received the international “Green Key Eco Label 2011” award from the International Foundation for Environmental Education (FEE - Foundation for Environmental Education). This distinction positions Club Hotel Casino LoutA. Stergiotis raki among the environmentally friendly hotels of Greece. Mr. A. Stergiotis, Administrator of Club Hotel Casino Loutraki, said: “The “Green Key” award constitutes one more significant distinction for Club Hotel Casino Loutraki. It reflects the company’s responsibility on environmental protection and sustainable development matters and confirms its commitment in integrating eco-friendly practices and criteria in its operation.” “Green Key” is a worldwide label for quality, environmental education and eco-friendly management for hotel facilities; in Greece the Green Key Eco Label is represented by the Hellenic Society for the Protection of Nature.

Mind Over Matter

Progress is impossible without change, and those who cannot change their minds cannot change anything. —George Bernard Shaw

The Challenge of Failure

If you don’t make mistakes, you’re not working on hard enough problems.. —Frank Wilczek

Vicky Dallas 9AM Media Labs

Entrepreneurship What role can entrepreneurship play in today’s difficult environment? Entrepreneurship can create jobs. Entrepreneurship can create better individuals who, apart from struggling in today’s environment, will find the strength to be creative and winners. Even unsuccessful entrepreneurial attempts are important for our society. An unsuccessful attempt makes professionals stronger, better warriors with experience which will be very important for their next battle... their next entrepreneurial activity. Would you say that being an entrepreneur has a liberating effect? Initially yes. Entrepreneurship is all about creativity; giving “birth” to a product or service and raising it up. When you are given the chance to be creative, you feel liberated. On the other hand, there is an equal effect of responsibility. Once you get clients “rolling,” you cannot suddenly decide to take a break, let’s say for 3 weeks in January. When responsibility steps in, the liberating effect fades for a while. You then need to find a balance and way to be creative again and as a result... liberated. How are you active in promoting entrepreneurship in Greece? My main occupation is 9AM Labs (www.9am.gr). As 9AM and as Vicky Dallas we have created two websites to promote entrepreneurship. The first is made to inspire and is called Growing - www.growing.gr (Launched in 2009). The second is made to inform and is called Startup - www.startup.gr (Launched in 2011).

 Aon Thrills Greek Children As Manchester United was making history 2,400 km away clinching their 19th English Premier League title, Aon (NYSE:AON) brought some of the team’s magic to the children of Greece. The Skills and Drills Athens event took place on May 22 and was organized by Aon, the principal partner and global shirt sponsor of Manchester United. Among the people attending the event in the Family Sports Club in Vrilissia were clients of Aon Risk Solutions Greece and Aon Benfield Greece and business partners’ children with their parents as well as executives from Aon Greece, Aon Central Eastern Europe and Aon Corp.  Intelligence Squared—

Should I Stay or Should I Go

Intelligence Squared Greece [IQ2] held its third debate July 6 on a dilemma faced by many young Greeks today: Should I Stay or Should I Go. Debaters were (for the motion—Leave Greece) Louis Labrinidis, Christos Papadimitriou, Stathis Kalyvas and against the motion, Grigoris Farmakis, Apostolos Doxiadis, and Aristos Doxiadis. The result of the first public vote (before the debate) was 43% in favor of “Leave,” 39% in favor of “Stay,” and 18% “Do not Know/Do not answer.” The second vote (after the debate) was 41% in favor of “Leave,” 56% in favor of “Stay,” and 3% “Do not Know/ Do not answer.”  Fulbright Reception The United States Ambassador Daniel B. Smith; the Deputy Chief of Mission of the Embassy of the United States of America in Greece, Thomas Miller; and Artemis A. Zenetou, Executive Director of the Fulbright Foundard tion in Greece hosted the 63 annual awards ceremony for Greek and American Fulbright scholars on June 22 at the residence of Thomas and Eleni Miller and was attended by alumni, donors, high level government officials including Secretary, Administrative Sector of Higher Education, Hellenic Republic Ministry of Education, Lifelong Learning & Religious Affairs Professor Vassilis Papazoglou and former U.S. Ambassador to Greece Robert Keeley and Louise Keeley.

Courageous Moves

Sailing Lesson

Penalty Shot

—Winston Churchill

—William Arthur Ward

—Plato

Courage is what it takes to stand up and speak. Courage is also what it takes to sit down and listen.

The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails..

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.

JULY-AUGUST 2011 | BUSINESS PARTNERS | 15

Insight

by Alexander Athanassoulas Alexander Athanassoulas is an international consultant on business growth through human systems and President and CEO of STIRIXIS SA. E-mail: alex.a@stirixis.com

Losing (to) the Eye of the Tiger

hey range from international con- both for entry-level professionals seeking spiracies to bureaucratic dysfunc- their first job as well as for high-level mantional mechanisms, from corrupt agement and “entrepreneurs,” the latter in politicians and public servants quotation marks intentionally. to inefficiencies in the general In countless interviews with young people workforce and, lately, a variety of views on looking for a job, I became horrified by two the “erroneous design” of the Eurozone or behaviors. Most of the time, these intereven Europe altogether. In doing so, we lose viewees were only after the low-level mosight of the larger picture, within which the tivational reward—money and perks. They true answers lie; there is a known precondi- neither saw any challenge in their work nor tion to winning, and that is the need and determination to win, the so called “eye of the tiger.” Although this may sound . . . Here is the kicker—they profound, it has lately become wanted these rewards seldom heard in this small part of the world. And therein lies without effort, without engaging to play, and the real root of the problem. As a businessman and a con- without winning the game sultant I have had the chance to speak with and interview a large number of professionals in Greece during the last 20 years. Sadly, understood the need to invest in their exI was constantly frustrated to witness the perience or future advancement. In addisame pattern again and again; in a bizarre tion, these young people demanded unreaway, more and more people sought, some- sonably high remunerations from day one, times even demanded, the rewards and before working and proving that they were prizes of true victory—but, and here is the worth it, an attitude that in modern Greek kicker—they wanted these rewards without society has unfortunately become commoneffort, without engaging to play, and with- place. Comfortably nestled in a pathogenic out winning the game. This has been true family system, they had the luxury to wait,

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Most of the time, when people in Greece discuss the current situation, how we “lost the game” and got here, we tend to hear a variety of views.

complacently, for the “right” job opportunity that would grant them their demands. So reward was disconnected from effort, slowly resulting in sloth and indifference. Even more shocking, however, was the observation that a large number of businesspeople also fell into the same trap. As the economy was booming, consumption skyrocketed and everybody was competing, looking for the “fast buck.” And “fast” in this case meant without sweating for it, without earning it, without planning for it or deserving it. In this line of thinking strategy was obviously optional, as was respect for and true relationships with customers and business partners. And slowly a lot of businesses also became indifferent and submerged in apathy. It is no wonder that productivity ratings in Greece showed a decline for a number of consecutive years. But, as we know, all “good things” come to an end. For unless we identify and break deadly vicious cycles, such as those of sloth and gluttony, we will never regain our “eye of the tiger.” We will not be able, without it to make a great comeback as Rocky Balboa did, nor will the universe conspire to help us achieve what we want, as the writer Coelho suggests. And losing the eye of the tiger will result in losing—to those who have it.�

Taxation Update

by Dr. George S. Mavraganis Partner-in-Charge, Tax Department, KPKG e-mail: gmavraganis@kpmg.gr

New Measures and Taxation The most important tax points of the new law:

Tax provisions

residence. In case the annual income of the individual exceeds the amount of EUR 40,000, a 10% tax credit rate will apply to the income exceeding the above amount. ❚ Social security contributions which were deductible for the calculation of taxable income are now considered a tax credit. More specifically, according to the new law, a tax credit equal to 20% of the paid contributions is provided. ❚ Imputed income is increased for owners of real estate, pleasure boats and swimming pools. ❚ A special contribution of 1% to 5% will be imposed on individuals with income exceeding EUR 12,000. The highest percentage of contribution is imposed on the income of high-ranking state officers (i.e. the President of the Parliament, Ministers, General and Special Ministerial Secretaries). ❚ A special contribution is imposed on private cars whose cc’s exceed 1.929, on pleasure boats and swimming pools ❚ An annual entrepreneurship duty of EUR

❚ The tax-free bracket for personal income arising as of 1 January 2011 is reduced to EUR 8,000 from EUR 12,000. A 10% tax rate will apply to the income tax bracket of EUR 8,000 to EUR 12,000. The tax free bracket is increased by EUR 2,000 if the individual has one child and by EUR 4 000 if the individual has two children etc. The tax free bracket of EUR 12,000 will still apply for individuals up to 30 years old, for pensioners over 65 years old and for individuals with special needs. ❚ The amount of receipts that must be submitted to the tax authorities for the tax payer to benefit from the tax free bracket is increased to 25% of his personal declared income which is taxable according to the general provisions for income up to EUR 60,000. In case the value of submitted expenses (receipts) does not reach the above amount, the difference is taxed at a rate of 10%. This measure appears to be a penalty on tax payers who have not collected the amount of receipts requested by law. ❚ A tax credit up to 20% is The tax-free bracket for provided for medical expersonal income arising as penses as well as for interest of 1 January 2011 is reduced on loans paid on 1 January 2011 onwards granted for to EUR 8,000 from EUR 12,000 the acquisition of a primary

New law on “Urgent measures for the application of the “Interim” financial strategy framework for the period 2012-2015”

400 will be imposed on enterprises and freelancers having their registered seat in a town or village with a population of up to 200,000 residents. The above annual duty will amount to EUR 500 for freelancers and enterprises having their registered seat in areas with a population of above 200,000 residents. Moreover, an annual entrepreneurship duty of EUR 300 is also imposed on branch operations of such enterprises/freelancers. Exemption from the above duty is provided for freelancers and enterprises having their registered seat in areas with a population of up to 500 residents and on islands with a population of under 3,100 residents. Moreover, an exemption from the above obligation is provided for sole traders and freelancers for the first five years of their business activity as well as for professionals for three years prior to their retirement. ❚ Real estate tax is imposed on individuals with assets exceeding EUR 200,000 with the lowest tax rate of 2‰ applying for assets valued between EUR 200,000 and EUR 300,000. ❚ The VAT rate is increased to 23% for restaurant services as well as soft drinks as of 1 September 2011. ❚ The special consumption tax (ΕΦΚ) on heating petroleum is increased so that it gradually becomes equal to the special consumption tax (ΕΦΚ) imposed on diesel.

JULY-AUGUST 2011 | BUSINESS PARTNERS | 17

BIZ BUZZ

Health and Wellbeing in Greece: 12 Years of Information at Iatronet

SelectUSA Replaces Invest in America Iatronet (www.iatronet.gr) is the Greek leader in medical and wellbeing information for people from all walks of life. Doctors from every medical specialty, nutritionists, and all kinds of health professionals work together for a common goal and a philosophy defined as: “informed people are stronger and healthier.” Iatronet.gr content is created by a large number of distinguished scientists who share their expertise and professional opinion based on their extensive knowledge and education. Moreover, a unique team of experienced medical journalists provide daily medical news from Greece and around the world. Since 1999 the site has been providing high quality information, with regular updates and content enrichment by its team of scientists and journalists, to provide the public with responsible and accurate information. Iatronet.gr has held the prestigious HON Code of Conduct certification for reliable medical information since 2005. For 12 years Internet users in Greece and abroad have trusted iatronet.gr for health related information. Iatronet.gr is visited by almost 500.000 unique users on a monthly basis who in turn view more than 3,000.000 pages per month. Statistics are monitored and cross checked by two independent, esteemed and reliable sources, Nielsen “Market Intelligence’’ platform and Google Analytics. In addition, Iatronet.gr has launched a section for healthcare professionals, http:// doctors.iatronet.gr designed for doctors and health experts. This section offers a an extensive range of information for medical experts, including worldwide medical news, medical conference briefings, international medical library searching tools and much more. The site is in Greek.

Count it—With an App Count +1 is a simple iPhone/iPad app to help you count everything you need to keep track of. Add every item you want to track your consumption of. Quickly add an iteration of one of your items. One push and it’s done! Daily, weekly, monthly, hourly, yearly counts are possible. Discover if you’re doing better (either smoking less, or going more to the gym) with a simple graph view of every iteration for an item. Count on it.

18 | BUSINESS PARTNERS | July-august 2011

In June, U.S. President Obama reaffirmed the U.S. open investment policy, a commitment to treat all investors in a fair and equitable manner under the law, and he encouraged all countries to pursue such a policy. At the same time the White House Council on Economic Affairs (CEA) reported that foreign direct investment in the United States increased by 49 percent in 2010. The President’s statement and CEA’s report came soon after U.S. Commerce Secretary Gary Locke announced SelectUSA, the first coordinated federal effort to aggressively pursue and win new business investment in the United States. Created by Executive Order, SelectUSA is housed at the U.S. Department of Commerce and online at SelectUSA.gov. It is designed to promote the United States as the premier place to do business globally and help to attract, retain and grow business operations in the U.S., spurring economic growth and job creation. SelectUSA has absorbed and expanded the mission of Invest in America, and is led by Executive Director Barry Johnson. Under SelectUSA, the commitment remains intact to represent the whole nation while maintaining strict geographic neutrality; collaborate with U.S. states, regions, communities and partners in economic development; and provide investors a single point of entry for information on federal programs and serving as ombudsman and national advocate for investment in the United States. With SelectUSA, the legacy and mission of Invest in America is further strengthened.

ManpowerGroup Talent Shortage Survey ManpowerGroup surveyed nearly 40,000 employers across 39 countries and territories to gauge the impact of talent shortages on the global labor market. The results of the sixth annual Talent Shortage Survey reveal a modest upward trend in the percentage of employers having difficulty filling positions due to lack of available talent. The interviews were conducted in 39 countries and territories in the Americas, Asia Pacific, Europe and the Middle East and Africa (EMEA). • In Greece, the Survey has taken place since 2008 and this year 751 employers were interviewed • When asked how much difficulty filling jobs they are having due to lack of available talent, 41% of the employers reported difficulty (34% globally) • When asked, “What is the one job you are having the most difficulty filling due to lack of available talent?” employers in Greece named Sales Representatives, Technicians, Management/ Executive (despite the high percentage of unemployment) and Accounting and Finance staff, to the top of the list. • 66% of the employers surveyed reported that when positions are not filled in a timely way there is a high (20%) or medium (46%) impact on key constituents. • Greek employers believe candidatespecific factors are contributing most to their hiring difficulty. 34% of respondents reported that their candidates lack the experience necessary for the position, 28% due to lack of available applicants and 24% due to lack of soft skills or interpersonal/ communication skills. • When asked what strategies they were pursuing to overcome their difficulties filling positions, the most common response from employers in Greece was that they are providing additional training and development to existing staff to fill vacancies (39%), focusing more on staff retention in jobs where recruitment is difficult (17%), or redefining qualifying criteria to include people without formal qualifications (15%).

Building the Future The Environment, Energy and Climate Change Ministry announced that its “Building the Future” program, through which companies selling construction materials and related goods can voluntarily offer discounts to property owners carrying out energy-efficiency upgrades of homes and business premises, will be official this summer. The ministry is also pressing ahead with procedures for implementing greater tax relief for this form of investment, through certificates issued by the Centre for Renewable Energy Sources (CRES) that will submitted along with tax statements. Under the program, there will be incentives given for seven categories of home improvement for residences and five for other types of buildings. Among these are: • Replacement of windows and doors with higher-specification types in 20,000 residences • Replacement of single- with double-glazing in 25,000 residences • Installment of 5,000 solar panels • Installment of ‘cool’ roofs on 20,000 residences • Insulation of roofs for 20,000 residences • Insulation of facades on 20,000 residences • Replacement of 20,000 conventional heating systems with new high-efficiency systems Work on commercial and other buildings include: • Installation of integrated facades (windows, double-glazing, shading systems) on 3,000 commercial buildings • External insulation on 5,000 buildings • Installation of high-efficiency cooling-heating-ventilation systems on 5,000 commercial buildings • Replacement of artificial lighting systems in 10,000 commercial buildings • Installation of advanced energy monitoring systems in 1,000 commercial buildings The program will not be based on income criteria but on order of priority. The incentives are the discounts that suppliers will offer voluntarily, tax discounts and the reduction in utility bills for those taking part. A law increasing the tax discount for this class of investment has already been passed, raising the amount discounted to 20 percent of spending for up to 3,000 Euros spent and 10 percent from 3,001 to 6,000 Euros spent.

July-august 2011 | BUSINESS PARTNERS | 19

Education

Few reforms are as important as the major changes in higher education presented by Minister of Education Anna Diamantopoulou at a recent Cabinet meeting. Business Partners offers insight.

Reforming Higher Education

Three Pillars

he proposal aims to bring Greek universities (and technological institutions) at the forefront of higher education internationally. Today, when knowledge has no borders, higher education has undergone essential changes to improve studies, teaching and research, to find creative new paths that link higher education with employment and to manage limited resources efficiently and effectively. Such initiatives promote innovation and create a knowledge-based society and economy as a strategic policy choice. In line with similar reforms in place throughout the EU, Greek reform aims to provide universities with autonomy and emancipation from central government so they may flourish in an increasingly competitive international academic and research environment. The proposals introduce a new institutional framework based on the principles of selfgovernment, autonomy and goal setting, and aim to ensure stringent evaluation procedures, highlighting the importance of academic excellence and promoting accountability on all levels. The three main pillars of change are 1) a new administrative model, 2) flexible, interdisciplinary courses of study, and 3) the internationalization of the often inward-looking Greek universities.

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The basic principles of change are: ❚ The self-government of higher education institutions ❚ Public funding and its distribution based on qualitative and qualitative criteria and national priorities ❚ A culture of constant evaluation and social accountability ❚ The aim of ever-increasing quality of studies for every student ❚ A modern and efficient administration ❚ Scientific excellence at the international level ❚ The internationalization of universities’ operation ❚ Opening universities up to society and the economy as a response to the major social changes brought by globalization, while at the same time addressing local needs These principles are recognized internationally and by many Greek academics as well. But Greek universities have not been able to endorse them. One reason lies in the administration model of the Greek public university. Notable is that there is a constitutional stipulation which expressly forbids private universities. Article 16 of the Greek Constitution is one of the most controversial, and most cherished, constitutional obligations of the Greek polity. To date, the selection of the university Dean is made through direct elections, with the

participation of the entire university community. Students provide a 40% share of the vote and even university non-academic staff reflect 10%. This has led to a politicized administration with little to no evaluation, accountability or transparency. The reform proposal focuses on adopting a dual system, which includes a Council and a Principal. The Council consists of internal and external members, which will focus on oversight of administrative actions and assume responsibility for the final approval of the strategic development plan. The Principal (like a Dean or a Vice-Chancellor) will be in charge of the daily administrative running of the institution and in charge of academic matters in close cooperation with the university’s senate: i.e. a system of internal checks and balances. The second important pillar of change relates to programs of study. Today, Greek university departments are virtually islands, with very little interplay between departments, and even less movement of people. In fact, interdisciplinary approaches to learning and flexibility along the way are essential elements. Finally, Greek universities are opening up to the world. They are to be liberated to join forces with others, to create international programs that attract foreign students, and to attract additional funding from alumni and other benefactors. The reform proposal promises to be controversial. Already, there are many critical voices resisting change and a lively debate is taking place. At the end of the day, however, Greek universities will become stronger, more intellectually vigorous, and more socially responsive.

Travel USA

On the occasion of Greece’s entry into the Visa Waiver Program, the U.S. Commercial Service of the American Embassy in Athens is showcasing all 50 states and five territories in Business Partners.

Discover America—Connecticut ★

ith its beautiful coastal drives, world-class museums, renowned attractions and rich history, Connecticut offers a charming New England feel with a cosmopolitan style. Connecticut is filled with postcard scenes on the water, resplendent fall foliage, stunning architecture and inviting farms and vineyards. For couples there are romantic and luxurious B&Bs like the Mayflower Inn and Spa, or the Bee and Thistle Inn, acclaimed restaurants, fine wineries, and boat rides along the Connecticut River. Families and kids love theme parks like Lake Compounce, the acclaimed Connecticut Science Center, aquariums and the family-fun filled Mystic Seaport. Adults can test their luck at the world-famous Mohegan Sun or Foxwoods Resort Casino and take in exciting live entertainment. History and culture buffs will marvel at the historic homes like the Florence Griswold House and the Hill-Stead Museum. Renowned art and famous architecture can be found throughout the state, from Yale University in New Haven to the Mark Twain House in Hartford and Philip Johnson’s Glass House in New Canaan. Travelers enjoy Connecticut because they can create any kind of holiday experience they want. Just a quick, scenic drive from New York, Boston and any other New England state, Connecticut…it’s closer than you think.

The Mystic River is named from the native Pequot Indian term “missi-tuk,” describing a larger river whose waters are driven into waves by tides or wind. Photo by Michael Melford, courtesy of Mystic Country, Connecticut

THE CONSTITUTION STATE Land Area

5,009 square miles

Population

3,409,549 as of July 1, 2000

State Capital Hartford Largest City

Bridgeport

Local Time

EST – 7 hrs behind Greece

Climate Mild - coldest 35/18 F (2/-8 C), warmest 84/63 F (29/17 C). National Parks The Appalachian National Scenic Trail and the Weir Farm National Historic Site. Housatonic State Forest is the only Connecticut state forest containing part of the world-famous Appalachian Trail (AT)

 For more information: Connecticut Commission on Culture & Tourism Tel: 00 1 860 256 2800 E-mail: ct.travelinfo@ct.gov Website: www.ctvisit.com

JULY-AUGUST 2011 | BUSINESS PARTNERS | 21

THE INTERVIEW

North Greece— The Challenge. . . and Opportunity Nikolas Bakatselos, Vice President of the Chamber and Chair of the Chamber’s North Greece Committee, discusses the challenges—and opportunities—of North Greece and Thessaloniki.

Tell us a little about the North Greece Committee of the Chamber, its composition, objectives and actions. The North Greece Committee is comprised of 13 prominent members of the local business community, who were carefully picked among our member to represent as accurately as possible the composition of various spheres of activity in the local economy. North Greece Committee members have a proven record of contribution to the Chamber’s actions, to which they add value through their in-depth knowledge of the industry, commerce and service sectors. The primary ob-

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jective of the Committee is to identify business issues that need to be addressed and assume appropriate initiatives that play an important and constructive role towards local development. Hence business events like luncheons, conferences and business missions are regularly organized, while also seeking to create partnerships with other organizations of similar interest. As Greece goes through tough times, how is the Chamber in Northern Greece acting to foster development, investment and business partnerships? We believe that the current economic climate poses great challenges but also great opportunities. During these hard times we have adopted a dynamic future outlook in most of our activities. The Chamber has used its past successes and the know-how it has gained, towards developing a strong intervening role and this will continue. We aim to provide support to the country’s political forces so changes necessary for local development are fulfilled. To realise the region’s full potential, and given that growth is necessary to overcome the current hurdle, a global outlook is needed. For this reason we take a keen eye in neighboring markets to the north and east of Greece as well as across the Atlantic, seeking to foster strong partnerships between local and foreign businesses. To a certain extent, a North-South divide—real or imagined—exists in Greece. What can be done to ensure that better synergies and collaborations are developed so that North and South cooperate for better results in social, commercial, and political relationships? It is very much real, but not in the sense that it is commonly understood. It has been widely admitted that despite attempts for the opposite, Greece is an increasingly centralized State. Northern Greece is a very particular part of the country—especially Thessaloniki. Compelled by the ‘‘conspiracy of history and geography’’ Thessaloniki had always been a city of strong economic activity. Unfortunately, over the years this position has eroded. Although the per capita GDP of the county of Thessaloniki was 15% above the country average in 1998, in 2008 it stood at only 80% of that average. In the mean-

time per capita GDP in Attica rose from roughly at a par with the country average in 1998, to 150% in 2008. Under the two recent Development Laws, 68-72% of approvals went to the political center. This resulted in an 80% investment decrease locally, with industrial production in Thessaloniki falling by 50% in 2009. These point to a deindustrialization of Thessaloniki, the second largest industrial center in the country, whose industries contributed 13.6% to national GDP in 2007. To reverse this process a meaningful decentralization must take place. The Kallikratis Plan is a positive step towards that direction but more needs to be done in the field of local empowerment to enable the realization of decentralisation’s full potential. Serious and important measures must be taken to encourage local businesses to stay and not relocate to the countries neighboring Greece to the north, and which are no further than an hour’s drive away. Our mission is to assist the local business community, and our members in particular, to leverage the unique characteristics of the region for their benefit. The Branch works closely with our Athens central office to eradicate regional inequalities, something that we share with the Federation of Northern Greece Industries and plan to devote the next Thessaloniki Forum to de-centralization and regional development. We regard the development of synergies with other similar minded organizations as essential to regional development. With this in mind the Chamber has signed MOUs with various regional Chambers through the AHEI initiative. We seek to further foster these relationships. How do you view trilateral partnerships so that interests of companies from Greece, the U.S., and Southeast Europe are best served? The U.S. is a large market with its own distinctive characteristics compared to which Greece is small. Trilateral partnerships can prove especially meaningful if one looks at the wider SE European region, which boasts more than 120m people. Greek and especially Northern Greek businesspeople enjoy a significant competitive advantage here as first movers with considerable experience and good reputation in these markets. Apart from the local managerial and entrepreneurial talent, one other factor is the existing service and financial infrastructure that could support any operation setting off from Thessaloniki. Hence representative offices for U.S. firms can be set up in Thessaloniki with responsibility for the whole SE European region. This has taken place in certain instances but there is large scope for more. Thessaloniki has long been touted as the commercial capital of the Balkans. Has Thessaloniki fulfilled this role satisfactorily or is there more to be done so that this historic city achieves its full potential? Let’s be honest. Thessaloniki has not done enough to ascertain its role in the Balkans and in many cases we see that regional competition has surpassed us. Only recently have we seen certain moves, especially in tourism, and the results were impressive. This shows that there is still great potential for the city and the region. The Chamber plans to undertake an initiative to highlight the city’s capabilities as a tourist destination. However we should keep in mind that our northern neighbors also face economic challenges and it is wise not to focus entirely on these markets but diversify into new ones as well. Israel and Turkey are good examples. How is North Greece responding to the demands of the new economy of the 21st Century—the knowledge economy, the Green economy, the technology economy?

There are many noteworthy examples of businesses that respond well to these challenges but in these times of crisis, most are merely trying to survive by focusing on their core competencies. The local business community has yet to fully realize that the new economy need not be seen as a cost factor, but as a tool that will promote their own development. Unfortunately the levels of R&D investment in Greece are still well below the EU average. One cannot overlook the significant work that is undertaken in the region’s universities and technological institutes. However there is a need for a more efficient linkage between these educational establishments and the needs of businesses. Tangible evidence of our efforts is that the Northern Greece Committee, working closely with other chambers and organizations, will help promote initiatives such as the Alexandria Innovation Zone, for which in particular we plan to do a road show in the U.S. in 2012.

July-august 2011 | BUSINESS PARTNERS | 23

Taxation

Tax Evasion in Greece—

An Economic and Social Issue

Causes—Consequences—Counter Measures

Stavros Costas, Chair of the Taxation Committee of the Chamber, discusses one of the most pressing issues in Greece today—tax evasion.

Based on your experience in the business community and your capacity as Chair of the Taxation Committee of the Chamber, how important do you consider the problem of tax evasion in Greece? Today, when Greece’s huge sovereign debt has almost led the country to the limits of fiscal dependence and obedience to our European partners, restraining the pervasive practice of tax evasion has become the most pressing challenge of our taxation administration. There should be no more tolerance shown to any citizens by allowing them to illegally escape their constitutional obligation in contributing to the public coffers, in the correct proportion to their real tax paying potential. What exactly do we mean by ‘tax evasion” in our country and to what extent it may equated with the shadow economy? Tax evasion has a different perception from country to country and there have been difficulties in arriving at a common and widely accepted definition. Per Greek Tax legislation and the reportings of the eco-

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nomic crime prosecution body (SDOE), the following illegal actions or omissions commited by Greek tax payers are the basic components of tax evasion. Omission to declare any kind of taxable income (or customs valuation) Omission to issue tax documents Illegal use of tax documents (forged, fictitious) Omission to pay withholding taxes Omission to declare/pay social security contributions In certain instances, non-monetary barter of legal services and goods We must distinguish tax evasion from tax avoidance, a legal process of reducing the tax burden, based either on legal loopholes or instituted tax incentives. What are the factors, incentives, and facilitators that drive this illegal behavior and what arguments do the perpetrators usually invoke to defend their actions? In relation to the roots of the devil, we can cite a recent study by the Washingtonbased Brookings Institute on Greece and the reasons for its economic downturn, which imputes our fiscal failure to a rotten system of tax inspections, an opaque tax code, the habits of individuals and companies to bribe inspectors, and the perception of many Greeks that it’s morally acceptable to defraud the public coffers. Friedrich Schneider (an economist at Austria’s Linz University who studies tax evasion around the world) arrives at almost same frustrating conclusion.

In our opinion, the following articulation of tax evasion incentives and facilitators can trigger cross-fertilizing ideas to rally actions to combat tax evasion. (1) Economic Benefit incentives ❚ Motivation by high marginal tax rates and social contribution burdens ❚ Survival vis-à-vis cyclical peculiarities of economic cycle-depression ❚ High tax compliance cost (2) Tax Morale vs. Tax Compliance Behavior Dispute the necessity, honesty and validity of taxation policies ❚ Doubt of whether valuable public services received in exchange ❚ Perception that taxation policies are not equitable and fair ❚ Taxpayers treated as ‘’subordinates’’ and not as ‘’partners’’ ❚ Inconsistency of the state in its obligations to taxpayers ❚ Questioning the quality of state institutions Refusal and resistance to willingly comply with specific law and policy ❚ Objection to the institution imposing the tax requirement ❚ Unfair feeling of legal obligation to comply with specific law policy ❚ Violation of personal or human rights ❚ Impute demerit to the political community (3) Cultural and Civic Education of Taxpayers ❚ Lack of education and conscious acceptance of the role of taxation ❚ Misunderstanding the scope and distribution of public goods ❚ Reduced perception of reputation and perceived risk of detection ❚ Wrong perception of corruption related to defrauding the public coffers (4) Structure of economic and entrepreneurial tissue ❚ Major participation of self employed and independent professionals (60%) ❚ Social norms, trade barriers, bureaucracy and other obstacles, tending to shift economic agents to engage in shadow economy. What is the estimated amount of tax evasion? In which way and method is this computed? Different methods are reported for quantifying the annual range of taxes lost, on micro, macro or statistical concepts, leading to different calculations. I would stay however, to relevant research study of Professor Fr. Schneider on Greek shadow economy (by definition considered the ‘’mother’’ of tax evasion), which places the annual enormity of lost income, at the level 25.8 % of GNP. Adopting an average effective tax rate of say 28%, the value of taxes and contributions evaded would fall in the vicinity of 16.5 billion Euros annually (around 7,3% of 2011 GNP, almost identical with the targeted fiscal deficit, following the recent austerity measures). The figure has been already confirmed by former Finance Minister Papakonstantinou and seems to enjoy the endorsement of Professor Yiannis Stournaras, one of the most knowledgeable and distinguished opinion leaders on fiscal matters in Greece. Obviously the tax potential from the battle against tax evasion is big. As stated in the Brookings Study, even with 50% less tax evasion, there would be no fiscal problem in Greece. What are the negative implications of tax evasion, in economic and social life? Can we identify any “positive’’ effects, even under special circumstances? While economists accept that part of tax evaded income may return to the official economy, at the end of the day, the presence of tax evasion in economic and the social life is extremely erosive.

The top social hit multiplier is the distortion of the feeling of justice, on the ground, that sincere taxpayers are unjustly treated, while tax evaders are rewarded. A situation like this generates all the known negative consequences, in social coherence and true solidarity, the reconstruction of confidence in relations between the state and taxpayers, undermining the intensive efforts to restate economic growth. What is your opinion on the efficiency of the measures so far taken and what are the ordered plans for the next day? Philosophically we have welcomed the implemented innovations with regard to the National Operating Program to Fight Tax Evasion and its planned administrative and legal measures (L 3943/2011), aiming to capture taxable income, reinforce compliance and collection, restructure the taxation administration, and institute taxation justice authorities, through actions bearing quantitative and qualitative indices. All these are good and quite ambitious but not enough and persuasive, as no measures of ordered deterrence have yet been taken. Even the last Law 3896/2011 (..urgent medium term measures on fiscal strategies 20122015), has no provision for such collections in 2011 and 2012. Having in mind the motives and the facilitators of tax evasion, in order to attack the roots of the evil, we should focus on the following menu of actions: ❚ Keep marginal tax rates at appropriate levels ❚ Develop good tax policies, through sincere deliberation ❚ Stick to a proper and transparent administration of public resources ❚ Reinstate confidence in public administration ❚ Raise the credibility of politicians ❚ Improve IT systems ❚ Develop lifelong civic tax education and knowledgeable citizens ❚ Increase the perceived probability of tax evaders to be detected ❚ Apply strict penalties where applicable ❚ Let the state provide a good example first ❚ Modernize the entire taxation system ❚ Show necessary understanding for special circumstances (recession) The message is clear. As long as the State is unable to stop this antisocial behavior, choosing instead the easy solution of easy measures to achieve equivalent results, the economic crime of tax evasion acquires accomplices, is indirectly reinforced, and is unacceptably left lying low, behind the screen of impunity.

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The Greek Economy

Standard & Poor’s, Sovereign Ratings,

and Greece What does an S&P credit rating measure and what not? Ratings are independent, forward looking opinions of relative credit worthiness. A Standard & Poor’s issuer credit rating expresses our opinion about the ability and willingness of an issuer, such as a corporation, state or city government, to meet its financial obligations in accordance with the terms of those obligations. S&P’s credit ratings are not investment recommendations, they do not address investment risks such as liquidity and market value, they are not a guarantee of credit quality or of future credit risk, and they are not a substitute for independent investment analysis. Rather, they reflect S&P’s opinions in a common and transparent language that investors can use as one input to evaluate and compare credit risk across asset classes and markets. They are only one of the many inputs that investors can consider in their decision making process. S&P’s sovereign ratings have come under scrutiny by European policy-makers. How have your ratings performed? Standard & Poor’s sovereign ratings have remained effective indicators of relative credit risk over recent years. There has been an historical correlation between ratings and defaults (the higher the issuer rating, the lower the relative frequency of default, and vice versa) and higher ratings have generally demonstrated more stability than lower ratings. Notably, between 1975 and 2010, no sovereign rated in the ‘A’ category or higher has defaulted within a 15-year period. For the ‘BBB’ category, the figure is 5.6%. For sovereigns rated in the noninvestment grade category, default rates rise sharp-

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Moritz Kraemer, Managing Director EMEA, Analytical Manager (Sovereign Ratings) at Standard & Poor’s, discusses the highly sensitive topic of sovereign credit ratings. ly, such that the average default rate for sovereigns rated in the ‘BB’ category is 17.5%, and for ‘B’ rated sovereigns, 42.8%. A study of sovereign ratings published last October by the IMF found that ratings are effective indicators of relative sovereign default risk—meaning that defaults tend to cluster in the lowest ratings grades—and noted that all sovereigns that have defaulted over the last 35 years had speculative grade ratings at least 12 months before default. What does the ratings process look like in practice? Most S&P sovereign ratings are issued at the request of the sovereigns themselves, in return for which we receive a fee. However, we may also issue ratings on an unsolicited basis where we believe there is market interest in having a rating on a particular sovereign and where we believe we have access to sufficient public information of reliable quality to support our analysis and ongoing surveillance. In these cases, we indicate that the rating was “unsolicited.” To the extent we deem there is no longer sufficient information for us to maintain a particular rating, we withdraw that rating. To help form an opinion on credit risk, sovereign rating analysts usually participate in interactive discussions with representatives from a rated sovereign, including members of the government and public administration and private

sector participants. Each Standard & Poor’s rating is determined by a rating committee and not by any single analyst. The role of the committee is to review and assess the information presented by the lead analyst regarding a new rating or a ratings change, to provide additional perspectives into the rating analysis, to provide checks and balances against conflicts and undue influence, and to provide consistent application and adherence to the ratings criteria. The final rating assigned by the committee is determined by applying the rating criteria to the information that the analysts have collected and evaluated. Your critics argue that as a US-based firm you may lack the insight into the institutional and political realities in the EU. What do you say to that? Standard & Poor’s is a global company, with 1300 analysts in 23 different countries and a long history in Europe. The first sovereign we rated in Europe was France, in 1975, and our first European office was opened in 1984. We currently have seven offices in Europe that employ approximately 300 analysts, of which more than 90% are European nationals. Regardless of where a sovereign is located—whether in Europe, the Americas, or elsewhere—our ratings reflect a criteria-based approach to creditworthiness. Our criteria expressly aim to support the comparability of our ratings across sectors, regions, and time. Speaking of methodology, how transparent are your criteria really? Standard & Poor’s criteria for determining sovereign ratings, like all our criteria, are publically available. Prior to publishing our updated sovereign criteria on June 30, we engaged in a robust and public request for comment process with investors, issuers, and other market participants. One of the key reasons for the criteria update is to provide additional clarity on how we determine our issuer credit ratings on sovereigns. What is a sovereign recovery rating and how would you determine it in the case of Greece? Standard & Poor’s sovereign recovery ratings reflect our opinion on the extent to which a government will be willing and able to repay its non-official (commercial) debt holders in the event of a default or a debt restructuring. Currently we have recovery ratings on the debt of 32 noninvestment grade sovereigns. We have assigned a recovery rating of ‘4’ to Greece, which means that under a hypothetical default scenario, we would expect an estimated recovery of 30%-50% for holders of Greek government debt. To determine the recovery rating, we formulate a base-case scenario under which we think the sovereign may default, and then examine the particular factors that we believe could support or undermine recovery prospects. Under our hypothetical default scenario for Greece, we believe that debt owed to multilateral and official lenders such as the IMF and the EU would continue to be a relatively large proportion of the total government debt outstanding. We think it likely that commercial creditors could effectively be subordinated to these official creditors, which implies a significant reduction in the recovery rate on commercial debt in order to reduce the total government debt outstanding. What has been the development of the Greek sovereign rating in recent years? Our sovereign rating on Greece has followed a downward trend since we first lowered the rating in November 2004, to ‘A’ from ‘A+’. The rating has fallen in suc-

cessive steps, to ‘A-’ (January 2009), ‘BBB+’ (December 2009), ‘BB+’ (April 2010), ‘BB-’ (March 2011), ‘B’ (May 2011), and then most recently to ‘CCC’ (June 2011). Why have you lowered Greece’s rating again in June, making our country the lowest rated sovereign in the world? The downgrade to ‘CCC’ with a negative outlook reflects our view that there is a significantly higher likelihood of one or more defaults, as defined by our criteria, relating to full and timely payment, linked to efforts by official creditors to close an emerging financing gap in Greece. While we believe that official Eurozone creditors are likely to provide additional funding to help close the emerging financing gap, we think some official creditors will see restructuring of commercial debt as a necessary condition to such additional funding. Such restructuring may involve what is termed “reprofiling,” which, in the context of sovereigns, we generally understand to mean an extension of maturities in order to allay concerns regarding the encumbered shortterm liquidity situation of the issuer. Such a lengthening of maturities typically constitutes a default under our criteria because the sovereign debtor will pay less than under the original terms of the obligation. What should the Greek government do now? S&P does not render policy advice or recommendations on which particular course of action an issuer, including a sovereign, should pursue.

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Shipping by Ioannis Michaletos Security and Business Analyst

Greek Shipping

Smooth Sailing, Only Minor Waves Ahead

ome 1,200 shipping companies are located in Piraeus and it is estimated that more than 250,000 persons in Greece depend, directly on indirectly, on shipping, which generates more than 33 billion USD annually. In 2009 the Greek-owned fleet included 2,974 vessels (of more than 1,000 gross tons), which accounted for 14.18% of the global merchant fleet. In terms of capacity, the fleet amounted to 173, 54 millions of dwt. Over the course of 2009, 748 ships, with a capacity of 64.9 million dwt, were ordered by Greek companies.The Greek maritime companies traditionally tend to invest in newbuilds in times of global recession—to receive their orders when the economic upturn begins. A 2005 Balkan Analysis article stated “It is widely assumed that the “righteous circle” of shipping will end around 2010....The assumption that the cycle will be completed in a few years means literally that the analysts have predicted a slowdown of world trade. By closely monitoring the shipping industry, very illuminating highlights can be made regarding wider economic and political affairs.”

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While the Greek state is battered by an unprecedented debt crisis, the dynamics of the shipping sector, which boasts the largest merchant fleet in the world, are vibrant. It appears, therefore, that global trade trends can be followed to a great extent by the investment moves of Greek shipping companies

This example illustrates two things: That Greek shipping interests had already predicted the slowdown and the coming 2008-09 global crisis and that the important aspects in the global maritime business environment can be monitored adequately from open sources and reliable estimations can be made. In 2010, the Greek merchant fleet, due to its continuous building programs, had, on average, vessels that were an 11.6 years old compared to the global average of 13 years, a difference that is translated to better chartering deals worldwide and lower insurance premiums. It appears, therefore, that global trade trends can be followed to a great extent by the invest-

ment moves of Greek shipping companies. Nevertheless, it’s a high-risk game—those who remain cool and industrious at the same time can look forward to high profits in a short cycle. A 2010 UNCTAD report, «Review of Maritime Transport 2010» revealed that the previous years of investments and programming by Greek shipowners began bearing fruits, as expected, and a dynamic 2011 is to be reached. Moreover, it was estimated that the total capacity of the Greek-owned fleet has reached 186.095 millions dwt, with 3.150 vessels. In mid 2010 Greeks owned 15.96% of the global merchant fleet, a considerable increase over previous years. Japan was the second global shipping power, China third and Germany fourth one, quite an interesting turn considering Greece’s global position in relation to the super powers of industry, trade and exports worldwide. China is the key factor that provides strength to the global shipping trade, even in times of recession. In 2009 Western Europe witnessed a 38.2% drop in imports of iron ore, for instance, while China saw a 38.9% increase in the same period. We might postulate that world was saved

from a 1931-style crash at the last moment due to the dynamics of the Chinese economy along with those of India, Brazil and other emerging economic players. Greek shipping companies have operated in those countries for decades and made use of their advantages—avoiding total effects of the recession and helping the Greek economy in 2010, when the

lion dwt. Of those vessels, 82 were oil tankers, most of them of the VLCC type, a move that signals confidence that the oil trade will flourish in coming years and in parallel that oil prices will inevitably increase and break the 100 dollar barrier. In total in 2010, ship transactions totalled 30.9 billion USD, meaning that Greek ship-

In total in 2010, ship transactions totalled 30.9 billion USD, meaning that Greek ship-owners bought almost 33% of available ships for sale

country was engaged into accepting IMF patronage after a series of public blunders and governmental mismanagement that brought Athens to such a delicate situation. In 2010, according to the research by Ν. Cotzias Shipping Consultants, Greek companies invested 9.3 billion USD and bought 325 vessels with total capacity of 22.8 mil-

owners bought almost 33% of available ships for sale, with the Chinese having a 9% share and the Japanese a 16% share. Therefore the Greeks bought more ships in terms of value than both Chinese and Japanese companies during 2010, a clear signal of an overall confidence by Greek shipowners that global trade is soon to boom.

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Catch up on your reading this summer with some audiobooks— free from the web.

Preventing Silent Strokes—Exercise

TRENDS & TRADE MAKERS

http://librivox.org/ LibriVox provides free audiobooks from the public domain. There are several options for listening. http://nikolledoolin.com/alo/ At Audio Literature Odyssey join voice-actor and writer Nikolle Doolin as she brings the pages of classic literature to life in this engaging literary podcast http://podcast.bmw.com/en BMW Audio Books is an odd but interesting site that offers short story audiobooks and podcasts about BMWs.

Researchers at Columbia University have found that older people who regularly exercise at a moderate to intense level may be less likely to develop the small brain lesions (infarcts) sometimes referred to as “silent strokes.” The researchers worked with a sample of 1,238 people who had never had a stroke. Participants completed a questionnaire about how often and how intensely they exercised at the beginning of the study and then had MRI scans of their brains an average of six years later, when they were an average of 70 years old. A total of 43 percent of the participants reported that they had no regular exercise; 36 percent engaged in regular light exercise, such as golf, walking, bowling or dancing; and 21 percent engaged in regular moderate to intense exercise, such as hiking, tennis, swimming, biking, jogging or racquetball. The brain scans showed that 197 of the participants, or 16 percent, had small infarcts. People who engaged in moderate to intense exercise were 40 percent less likely to have the silent strokes than people who did no regular exercise. The results remained the same after the researchers took into account other vascular risk factors such as high blood pressure, high cholesterol, and smoking. There was no difference between those who engaged in light exercise and those who did not exercise.

http://classicpoetryaloud.podomatic.com/ Classic Poetry Aloud is where you can find readings of a select number of poems. http://classictales.libsyn.com/ Classic Tales Podcast Listen to classic English novels read by B.J. Harrison http://crimewav.com/ Crimewav delivers high crime directly to your ears. Produced by crime writer Seth Harwood. http://escapepod.org/ Escape Pod is the premier science fiction podcast magazine http://www.freeaudio.org/ FreeAudio spreads the word of liberty, freedom and democracy

RES Production Up Production capacity by Renewable Energy Sources grew 20.3 percent on average from 2002 to 2010 , according to Greece’s ICAP. The report said that electricity power sales by Renewable Energy Sources grew 25 percent in 2009 over the previous year. ICAP said the sector, however, was growing in an unbalanced way, with the market focusing mainly on the technologically mature and economically more competitive wind power energy sector. Wind power parks accounted for 78 percent of total capacity, followed by small hydro-electric power units (12 percent), photovoltaic parks (7.4 percent) and bio gas and maze units (2.4 percent). Wind power energy should account for 72 percent of all Renewable Energy Sources capacity by 2020. The market has witnessed the birth of strong business groups, with a large number of subsidiaries, in the sector. A group balance sheet of 77 enterprises in the sector showed that sales grew 16.6 percent in 2009 over the previous year, while EBITDA rose 19.9 percent and pre-tax profits jumped 37.4 percent.

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Cruising Strength

Raising the Rent Yes, San Francisco is a good place to work, Yes, salaries in general are pretty good. But the huge demand for apartments, especially as hi-tech companies continue to hire, is raising the roof on rents. A lot. In good locations a one-bedroom apartment now goes for about $2,700 a month. Streets are not the only thing steep in San Franscisco.

. U . E Roaming Charges T C E R I Drop Further on July 1 D Making or receiving a mobile phone call abroad will be cheaper in the EU from July 1, but will still cost a lot more than a domestic call. The EU would like to see tariff differences disappear by 2015. From 1 July, it will cost €0.35 a minute* to make a phone call and €0.11 to receive one. The cost of sending a text message remains at a maximum of €0.11 while it costs nothing to receive one. Wholesale charges, those operators charge one another, for uploading or downloading data will be capped at €0.5 per megabyte. However, this may not necessarily be passed on to users. The €50/month limit on surfing the net when abroad remains in place, although users can choose a higher or lower limit. Operators must warn customers when they reach 80% of their limit. Of course operators can offer their customers better rates than those above. They must message clients about the roaming tariffs each time they enter an EU country. This latest drop in prices is part of the stepped reduction in the legislation broadly supported by Parliament in 2009. Current roaming rules apply until June 2012 and the European Commission was due to present its plans for the following period in June. The aim is to further reduce prices by strengthening competition among operators. One crucial area is data roaming.

The Mediterranean, as a cruise destination, is acquiring an increasing share of the global market, which is marked by a shift of interest from the mature market of the Caribbean to the wider region of the Mediterranean, Maritime Affairs, Islands and Fisheries Minister Yiannis Diamantidis said on June 2, opening the general assembly of Mediterranean and Black Sea Ports taking place in Piraeus. A total of 108 representatives of Mediterranean ports and international cruise companies from all countries of the Mediterranean as well as from the Black Sea and Red Sea countries, took part in the assembly Minister Diamantidis noted that cruise operators from Miami, the center of global cruises, estimate that by 2014 the Mediterranean will be the top cruise destination. The minister said that a big boost in home porting (boarding and disembarkation of a passenger in the same port) will begin for Greece in 2012, given that major companies make their plans on a 2-3 year basis. He added that there has been a 10% increase in cruise ship arrivals in Greece with a simultaneous increase in tourist arrivals of more than 20%.

*figures are before VAT

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ViewPoint

Let us dedicate ourselves to what the Greeks wrote so many years ago At Arlington National Cemetery in the United States, near the graves of John, Robert, and Edward Kennedy, is an inscription on marble, a quote by Robert Kennedy, who admired Aeschylus. It was a call for unity at a time when the United States suffered serious divisions. Perhaps this call for unity, evoking the wisdom of Aeschylus, might be apt for Greece, in 2011

󿨛󿩯󿮅󿨸󿪖󿮙󿫖󿮣󿮅 󿭢󿭚󿬝󿮎󿩯, 󿯻󿩯󿮞󿩯󿫴 󿪊󿫴 󿬝󿮣󿭚 󿮅󿫖󿩯󿩯󿭎, 󿭎󿨛󿪊󿫴 󿭢󿪖󿪊󿨸󿪖 󿨸󿨛󿫴󿫴󿬝󿮎 󿩷󿬝󿭚󿩎󿩯󿮎 󿩷󿨛󿫖󿫖󿮅 󿩗󿭚󿬝󿭎 󿨬󿮙 󿩗󿭚󿬝󿭎 󿮣󿭎󿬝󿫴 󿮎󿪖󿩯 󿪖󿩯󿨛󿭚󿮎 󿮣󿫴󿮎󿪊󿫖, 󿪊󿫴 󿬝󿮣󿭚 󿬝󿭢󿫴 󿩗󿩯󿮅󿭎󿨛󿪊󿭚, 󿨛󿩎󿨛󿪊󿫴󿮅󿮎 󿬝󿮣󿭚 󿭢󿪊󿫖󿫖, 󿨸󿬝󿫦󿩯󿮅 󿭢󿪊󿮅󿩗󿬝󿫦 󿮎󿪖󿭚󿬝󿮣󿩎󿪖 󿮎󿪖󿩯 󿨛󿭢󿩷󿮣󿫖 󿩎󿭚󿨛󿨸󿩯 󿬝󿩷 󿩎󿬝󿩗.󿯻 󿭢󿪖󿨛󿮎 󿭢󿩯 󿫴󿩯󿩯󿩗 󿪊󿫴 󿮎󿪖󿩯 󿮣󿫴󿪊󿮎󿩯󿩗 󿮅󿮎󿨛󿮎󿩯󿮅 󿪊󿮅 󿫴󿬝󿮎 󿩗󿪊󿮞󿪊󿮅󿪊󿬝󿫴; 󿭢󿪖󿨛󿮎 󿭢󿩯 󿫴󿩯󿩯󿩗 󿪊󿫴 󿮎󿪖󿩯 󿮣󿫴󿪊󿮎󿩯󿩗 󿮅󿮎󿨛󿮎󿩯󿮅 󿪊󿮅 󿫴󿬝󿮎 󿪖󿨛󿮎󿭚󿩯󿩗; 󿭢󿪖󿨛󿮎 󿭢󿩯 󿫴󿩯󿩯󿩗 󿪊󿫴 󿮎󿪖󿩯 󿮣󿫴󿪊󿮎󿩯󿩗 󿮅󿮎󿨛󿮎󿩯󿮅 󿪊󿮅 󿫴󿬝󿮎 󿮞󿪊󿬝󿫖󿩯󿫴󿨸󿩯 󿬝󿭚 󿫖󿨛󿭢󿫖󿩯󿮅󿮅󿫴󿩯󿮅󿮅, 󿨬󿮣󿮎 󿫖󿬝󿮞󿩯 󿨛󿫴󿩗 󿭢󿪊󿮅󿩗󿬝󿫦, 󿨛󿫴󿩗 󿨸󿬝󿫦󿭎󿨛󿮅󿮅󿪊󿬝󿫴 󿮎󿬝󿭢󿨛󿭚󿩗 󿬝󿫴󿩯 󿨛󿫴󿬝󿮎󿪖󿩯󿭚, 󿨛󿫴󿩗 󿨛 󿩷󿩯󿩯󿫖󿪊󿫴󿩎 󿬝󿩷 󿪺󿮣󿮅󿮎󿪊󿨸󿩯 󿮎󿬝󿭢󿨛󿭚󿩗󿮅 󿮎󿪖󿬝󿮅󿩯 󿭢󿪖󿬝 󿮅󿮎󿪊󿫖󿫖 󿮅󿮣󿩷󿩷󿩯󿭚 󿭢󿪊󿮎󿪖󿪊󿫴 󿬝󿮣󿭚 󿨸󿬝󿮣󿫴󿮎󿭚󿮙, 󿭢󿪖󿩯󿮎󿪖󿩯󿭚 󿮎󿪖󿩯󿮙 󿨬󿩯 󿭢󿪖󿪊󿮎󿩯 󿬝󿭚 󿭢󿪖󿩯󿮎󿪖󿩯󿭚 󿮎󿪖󿩯󿮙 󿨬󿩯 󿨬󿫖󿨛󿨸󿫎.󿯻 󿫖󿩯󿮎 󿮣󿮅 󿩗󿩯󿩗󿪊󿨸󿨛󿮎󿩯 󿬝󿮣󿭚󿮅󿩯󿫖󿮞󿩯󿮅 󿮎󿬝 󿭢󿪖󿨛󿮎 󿮎󿪖󿩯 󿩎󿭚󿩯󿩯󿫎󿮅 󿭢󿭚󿬝󿮎󿩯 󿮅󿬝 󿫦󿨛󿫴󿮙 󿮙󿩯󿨛󿭚󿮅 󿨛󿩎󿬝: 󿮎󿬝 󿮎󿨛󿫦󿩯 󿮎󿪖󿩯 󿮅󿨛󿮞󿨛󿩎󿩯󿫴󿩯󿮅󿮅 󿬝󿩷 󿫦󿨛󿫴 󿨛󿫴󿩗 󿮎󿬝 󿫦󿨛󿫎󿩯 󿩎󿩯󿫴󿮎󿫖󿩯 󿮎󿪖󿩯 󿫖󿪊󿩷󿩯 󿬝󿩷 󿮎󿪖󿪊󿮅 󿭢󿬝󿭚󿫖󿩗. 󿫖󿩯󿮎 󿮣󿮅 󿩗󿩯󿩗󿪊󿨸󿨛󿮎󿩯 󿬝󿮣󿭚󿮅󿩯󿫖󿮞󿩯󿮅 󿮎󿬝 󿮎󿪖󿨛󿮎 󿨛󿫴󿩗 󿮎󿬝 󿮅󿨛󿮙 󿨛 󿭎󿭚󿨛󿮙󿩯󿭚 󿩷󿬝󿭚 󿬝󿮣󿭚 󿨸󿬝󿮣󿫴󿮎󿭚󿮙 󿨛󿫴󿩗 󿬝󿮣󿭚 󿭎󿩯󿬝󿭎󿫖󿩯.

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32 | BUSINESS PARTNERS | JULY-AUGUST 2011

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