The UK should look to Greece for lessons on investment and economic transformation
Ahead of the UK general election, the now-governing party rightly pledged that they would establish “a new partnership with business to boost growth everywhere”, arguing that “sustained economic growth is the only route to improving the prosperity of our country”. Yet, the difficulties across the world economy are still felt in the UK. Indeed, Office for National Statistics figures show the economy had zero growth between July and September, though figures have improved since.
We heard from the UK Chancellor in January that the government will go “further and faster” to kickstart the economy, unveiling plans to boost the UK economy by up to £78bn by 2035. Though these plans are welcome, the UK government could learn from their Greek counterparts on how to transform an economy, with the Greek economy being the fastest growing in Europe in the years 2021-24. Although the two economies are not the same and the paths to prosperity differ, there are undoubtedly similarities, and the Greek approach could be used as a model in the UK.
Whereas in Greece we had to tackle the legacy of the hard left and how they rode roughshod over our economy, in the UK the Prime Minister and his Chancellor had to do that within their party. There is a shared story here of putting the country first.
Among these shared stories, there are also comparative learnings that can be taken. The Greek story of economic transformation is remarkable in the context of the severe recession suffered by the Greek people after the 2007 financial crisis and the economic suicide committed by Syriza. The UK government should look at how New Democracy did this.
In October, the Greek government launched a new strategy for supporting large-scale investments with a focus on production and economic transformation. At the National Gallery, Prime Minister Kyriakos Mitsotakis and minister Takis Theodorikakos laid out a series of financial programmes and regulatory reforms aimed at attracting investment, enhancing industrial infrastructure, and streamlining bureaucracy.
Costing over 8.5bn euros, these reforms will create jobs across Greece, particularly in less-developed regions, and support people with the cost of living following the multiple international crises caused by global tension and uncertainty. Emulating these measures in the UK would tackle regional inequality and stimulate the economy.
The underlying statistics back up the success of the Greek government’s approach: GDP growth was 1.2 per cent in 2023, significantly above the Eurozone average. Investment grew by 15 per cent, and there was an incredible 43 per cent rise in the real value of our stock market.
Meanwhile, while the UK Prime Minister has outlined plans to unleash artificial intelligence (AI) across the UK, equipping the population with the relevant skills to fully utilise AI’s power is just as vital. Again, the UK should look to Greece as a model, where in recent years programmes for upskilling have been introduced, with an emphasis on digital and green skills. Now, approximately 10 per cent of the UK workforce will have participated by 2026.
The ambition to transform the UK economy and stimulate growth should be welcomed, and for that ambition to be fulfilled it is important to learn from countries around the world. That’s why it was welcome to learn of the UK Chancellor’s recent visit to Davos to speak with international business leaders. Visiting summits like this demonstrate the seriousness of the Chancellor’s intent to kickstart economic growth. With MIPIM on the horizon, there are further opportunities for the UK government to engage, and learning from and connecting with Greece would be an excellent start.
Founder and Managing Partner of Georgaki & Partners Law Firm. Christina specialises in Foreign Direct Investments and Investment Migration. With 18 years of experience and over 11,000 cases managed, she excels in bespoke legal solutions. A Supreme Court Lawyer, MBA graduate, and Doctorate Candidate in Warwick Business School, Christina is also certified in mediation, international commercial arbitration and investment migration, reflecting her expertise and global acumen.
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