Greece is making significant strides to reverse the brain drain that saw thousands of skilled workers leave the country during its financial crisis. In the past few years, the Greek government has made a conscious decision to embrace diversifying its economy. They are going further than usual suspects such as tourism and hospitality. In the process, Greece is making big moves under-the-radar to prepare the foundations for a new, dynamic and resilient technology economy.
Prime Minister Kyriakos Mitsotakis, who has a background in venture capital and founded Greece’s first incubator in 2001, is at the helm of this transformation. On his watch, Greece is hellbent on luring skilled foreign workers. They are rolling out two new programs aimed exclusively at entrepreneurs. These initiatives seek to cultivate the local startup economy and help spur innovation in the public sector. They are the bedrock of Greece’s aspirations in artificial intelligence (AI).
The picturesque nation, famous for its stunning islands, sun-soaked cities, and rich historical roots, is increasingly becoming an attractive destination for tech talent. Mitsotakis is a firm believer that Greece has become the paradise of predictability and stability since he took the power. This is in dramatic contrast to the unknowns our nation confronted in the depths of the crisis.
In a few years, we’re unable to recover lost time. We have escaped the doom loop of yesteryear. My view is that technology is an amazing opportunity for the private sector, but it’s an amazing opportunity for government. Mitsotakis stated.
Greece has not only managed to digitize public services, it has zoomed ahead of Germany in the process. This modernization includes several pilot programs, one of which is an AI system supported by Microsoft. For example, it has reduced the time needed for government contract review from hours to minutes. These types of projects leaders continue realizing the promise of technology to make their permitting activities more efficient and effective.
The country has been making efforts to attract more tech talent as well, and a major carrot is being dangled—particularly for skilled workers. To top that, the government has just cut their income tax in half! This new tax break will be effective for seven years and is designed to woo talented workers back home.
“The tax breaks are there – a 50% discount on income tax for seven years,” – Kyriakos Mitsotakis
Yet, Mitsotakis recognizes that monetary incentives are not enough to draw people back to Greece. No one is coming back just because they are going to get a tax credit. You’re gonna want to send them back for the awesome career session. They are looking for satisfying experiences and the opportunity to expand their enterprise in Greece,” he added.
Complementing Athens, Greece is building on its tech momentum to branch out into other cities, including Thessaloniki and Heraklion. Many of these emerging hubs, where innovation thrives and the new economy is grounded, are luring the younger generations who have been eager to move away or come back home.
Mitsotakis wants to convey how urgent this initiative is, saying that “This is a global war for talent.” Greece has recently made it easier for expatriates to return home. Simultaneously, the nation has positioned itself as a magnet for global talent to select it as their next workplace destination in today’s high-stakes race for talent.
Despite these promising developments, challenges remain. Mitsotakis’ speech surfaced some pent-up grievances in the tech marketplace. He focused on calling for a more rapid speed of legal reform and more late-stage capital. Furthermore, convoluted thickets of red tape over what it means to do business in the European market still remain an impediment.
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