Greek Maritime Companies Can Be Economic Stimulant

By Helena Athoussaki

Amid one of the worst crises in the history of the European Union, the Greek government secured a new agreement with its creditors, which undoubtedly raised confidence in Greek society.
 
Greek shipping plays an important role in the context of Greece’s economy shipping while its merchant fleet is one of the biggest globally; it makes up 7.5 percent of the Greek economy and employs around 200,000 people.
 
Discussions on whether the shipping sector should be taxed more heavily or not are continuing with several shipowners having already stated openly that in such a case they will simply move their operations outside Greece. Such a move will undoubtedly damage domestic maritime companies that offer significant services to Greek shipowners.
 
Arguably therefore taxing such a crucial business sector at this point in time might prove to be risky.
 
Instead of looking into increasing the tax burden in shipping, Greece can seek ways to support domestic companies which develop competent and innovative maritime products and services important for Greece’s economic growth. 
 
Promoting investments in Greek maritime companies is another way of raising tax revenue from maritime activities without putting extra financial burden to shipowners.  
 
Greece has a very competent maritime service market supported by high-qualified personnel, strong technical and R&D expertise, as well as innovative initiatives, which strive to raise their presence in the international maritime arena.
 
Being successful businessmen but also patriotic, Greek ship-owners can help Greece’s struggling economy by capitalizing on the country’s maritime knowledge, experience and expertise.

In challenging times, domestic maritime companies have proven to be responsive and always supportive of the shipping industry, something that might not be the case for large multinational firms.  
  
With the latest example, the new E.U. Regulation on Monitoring, Reporting and Verification (MRV) of shipping emissions, an area where Greek maritime companies have an established track record and can provide full package solutions to shipowners.
 
In that manner, tax revenue from maritime activities will be raised (since domestic companies pay taxes domestically), and there will be more room for the development of new innovative initiatives, more employment opportunities will arise, while shipping’s contribution to the country’s GDP will rise.

Helena Athoussaki is Chief Strategist and CEO of IMAREM