Greece, often celebrated for its picturesque islands and rich history, is quietly shifting its identity towards a modern, robust technology sector. This transformation, while underreported globally, signals a significant evolution in the country’s economic strategy.

A Shift in Economic Focus

During a recent conversation with Prime Minister Kyriakos Mitsotakis, he articulated Greece’s ambitious vision of becoming an “Innovation Nation.” While acknowledging the challenges, he emphasized the progress made in recent years. “There is significant room to grow,” he stated, adding that “the stars are aligned” for a tech-driven future.

Strategic Policy Changes

Five years ago, Greece embarked on a strategic pivot to diversify its economy beyond tourism and hospitality. Mitsotakis noted, “Tech could be 10% of our economy. This is perfectly doable,” highlighting the surge in startup formations, heightened capital inflow, and an evolving ecosystem of investors and entrepreneurs.

Late Arrival, Potential Advantages

Although Greece is entering the European tech scene later than other nations, this timing may actually be advantageous. The country has avoided the pitfalls of inflated valuations prevalent in other regions, enabling a clean slate to explore emerging technologies like artificial intelligence (AI).

Mitsotakis expressed hope that AI could help Greece leapfrog its competitors, noting successes in digitizing government services that have outperformed even established economies like Germany’s.

Government Innovation as a Client

A core tenet of Greece’s AI initiative is the government’s active role as a client for new technologies. “We’re not just talking about what the startup community is doing. We are the clients of the technologies,” Mitsotakis stated, promoting a culture of innovation within government operations.

Attracting Talent

Reversing the brain drain that occurred during the financial crisis is crucial for this transformation. The government is offering significant tax incentives, including a 50% discount on income tax for seven years. However, Mitsotakis noted that “a good job opportunity” is essential to attract skilled workers back to Greece.

Recent adjustments to the “Golden Visa” program are designed to welcome foreign investors and skilled workers, reflecting Greece’s broader commitment to creating an open, inviting ecosystem for talent.

Regional Development and Future Aspirations

The Prime Minister stressed the importance of spreading tech growth beyond Athens, with emerging hubs in Thessaloniki and Heraklion. This regional approach aims to foster inclusive development throughout the country.

Despite ongoing challenges, such as the need for legal reforms and access to late-stage capital, Mitsotakis believes that Greece is now characterized by stability and predictability. “Is this country moving in the right direction?” he rhetorically asked. “The answer is yes.”

The Path Ahead

Mitsotakis envisions a future where Greece’s advancements in technology are “irreversible.” While he does not claim to be creating miracles overnight, he believes the country has broken free from its previous cycle of economic stagnation. “We can’t make up lost ground in a couple of years,” he acknowledged, viewing technology as a significant opportunity for both the private sector and the government.

To watch the full interview with Prime Minister Mitsotakis, click here.