Trends in the Greek Legal Market

Located in South-Eeastern Europe, at the southernmost tip of the Balkan peninsula and bordering Turkey, Bulgaria, North Macedonia and Albania, Greece covers an area of approximately 131,200 sq km and has a population of 10.5 million. Greece has the longest coastline in Europe and possesses an archipelago of approximately 3,000 major islands, dotting the blue Aegean Sea to the east, the Mediterranean Sea to the south and the Ionian Sea to the west. Due to its strategic location and excellent maritime infrastructure offering a world leading position in the shipping sector, Greece is the economic hub which links markets across the Balkans, the Black Sea, Eastern Europe and the Eastern Mediterranean.

The tourism and hospitality industries are the primary sectors contributing to Greece’s economy, making up almost 20% of its GDP. Th heavy reliance on these industries was the reason that Greece was severely hit by COVID-19, despite the relatively low rate of infection and mortality compared to most other European countries. However, the economy rebounded strongly after the first half of 2021 because of the tourist season, and real GDP has recovered to its pre-pandemic level. Vitally, Greece is one of the main beneficiaries of the Next Generation EU recovery fund and expects to receive EUR33 billion over the next seven years to boost the economy.

In recent years, the economic and political environment in Greece is considered to have stabilised. Significant reforms have progressed in several areas, including in digitisation, privatisations, fiscal policy and restructuring of banks’ balance sheets. Greece has also attracted many foreign investors, mainly invest in manufacturing, energy, information and communication, wholesale and retail trade, transport and storage, and financial activities. Economic growth is expected to remain robust at 3.5–4.% in 2022 despite the adverse economic effect of the war in Ukraine.

Current Greek governmental policy encourages foreign investment and recent enhanced incentives have been introduced into Greek law in order to promote both foreign and domestic private investment. A new development law was published this year which promotes the country’s economic development by providing aid schemes and incentives to the business community. It introduces provisions which accelerate procedures relating to the control, evaluation, approval and licensing of any investment plan in an array of sectors. These include digital transformation, green transition, manufacturing, tourism and innovation. The beneficiaries of such aid will be eligible to receive tax exemptions, subsidies, leasing subsidies, job creation subsidies and business risk financing for start-ups.

The new development law provides a wide range of financial support tools to investors so that the latter will help tourism enterprises to expand, upgrade and modernise. This new law, together with new legislation on tourism growth and promotion, will allow for public-private partnerships in this sector and aims to foster co-operation between investors, private companies, and local stakeholders. This recently enacted legislation is a strategic tool for investments in Greece.

New legislation also provides favourable provisions for investment in energy projects aiming to facilitate the transition to greener sources of energy (particularly renewables). Greece has implemented major reforms which have transformed the country’s energy sector and create significant investment opportunities. The country has fostered its position as a competitive player in the energy market due to the recent regulatory and legislative changes which further expedite the process for the issuance of licences for, and the installation and operation of, renewable energy resources.

The main corporate forms of business in Greece are the stock corporation (Société Anonyme), the private company, the limited liability company and the general/limited partnership. A simplified incorporation procedure for the aforementioned corporate vehicles has been recently introduced under a new law. All the above-mentioned legal entities can be incorporated through an electronic “one stop shop” procedure in a swift and efficient process. Following the completion of the process, the entity automatically acquires its registry number, tax identification number and “European Digital Identity” which facilitates the communication between the registries. The business environment has also been improved by permitting the online filing of corporate documents and actions with the General Commercial Registry.

In relation to M&A activity in Greece, the country has bounced back from the COVID-19 pandemic, in both deal volume and value. This boom has had a significant effect on the economy, and Greece has now established a stronger position within Europe as a destination for investment. Private deals continue to grow in the Greek market, whereas public transactions require strict disclosure formalities. Investors, mainly private equity funds, often target small and medium-sized businesses with growth potential or start-ups operating in the technology, software and IT industry. M&A is subject to corporate, civil and commercial law provisions, with key pieces of legislation, such as the stock corporation law, the competition act, the tax rules and the law on corporate transformations, all providing the framework governing M&A.

The COVID-19 pandemic has acted as an accelerator for the digital transformation of the country as many services, many provided by public authorities, have become digitalised and therefore quicker and more efficient. In addition, several pieces of legislation have been enacted that are expected to affect, inter alia, litigation in Greece. New legislation contributed to the acceleration of civil trials and the procedure before the administrative courts as well as the digitalisation of civil procedure. This is aimed at improving the quality and efficiency of the Greek judicial system. Provisions allowing for digital signatures and identification, the electronic filing and service of documents and other administrative procedures, all enable a smoother running of the country’s judicial system.