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Greek capital seeks refuge in Bulgaria

09 December 2015 / 17:12:50  GRReporter
1347 reads

Ivan Petkov

The economic migration of Greek companies to Bulgaria has been observed since the beginning of 2015 and intensified in the second half of the year, and the process is not likely to decrease. To the contrary, the transfer of Greek capital abroad is taking place at full speed and that can be clearly felt due to the interest of Greek investors to buy businesses from all spheres of economic life in their northern neighbouring country.

At a press conference to present the results of the survey of the business climate "European Economic Review 2016", president of the Bulgarian Chamber of Commerce and Industry Tsvetan Simeonov replied to a question asked by GRReporter, "At the moment it is difficult to talk in numbers but the trend of transferring Greek businesses to Bulgaria is highly evident. Interests are directed to all areas that are more profitable compared to the situation in Greece, and that means all spheres in Bulgaria. We are talking about a pure transfer of capital and seeking refuge to maintain revenues. Moreover, here comes the point of lower taxes in Bulgaria."

The survey that presents the attitudes and expectations of European business for 2016 offers an interesting basis for comparison between the two Balkan countries. In terms of sales revenue, Bulgaria ranks 18th regarding optimism about revenues from the domestic market. In view of the economic crisis that has developed in Greece, it convincingly ranks next to the last, as expected, only Hungary being ahead of it.

As for revenues from sales abroad, Greek business is reasonably ahead of the Bulgarian, accounting for the trend to move production processes outside the territory of Greece.

In the field of employment, Greece ranks last, which is expected due to the ongoing financial and economic crisis and the consequent migration of capital abroad. Bulgaria again is the golden mean, occupying the 12th place.

In terms of investment expectations, Bulgaria retains its 12th place whereas Greece again ranks last, in the 24th position. In connection with the investment interest in Bulgaria, the Bulgarian Chamber of Commerce and Industry observes enhanced activity on the part of countries like Italy and Austria, which draw the interest of Greek investors. The reasons for this interest are the low taxes and the transfer of production processes to a country with lower labour costs.

Bulgaria ranks 8th in terms of the prevailing prospects for the business climate in 2016 among the countries in Europe - and Greece next to the last, occupying the 23rd place.

Of all indexes, exchange rates are the least concern and the prices of energy and raw materials and the lack of skilled labour force, the greatest. The last index is valid and particularly acute for both Greece and Bulgaria, as the two countries report an increasing migration flow, including young and educated people.

Tags: Greek capitalMigrationBusiness climateBulgariaGreeceBCCIEuropean Economic Review 2016
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