Greece

At the start of this year, Greece assumed the presidency of the European Union a position it has not held since 1994. The country has remained relatively isolated since the end of the Cold War. Reconnecting with its western and northern neighbors will be a primary issue on its agenda.

Prime Minister Costas Simitis and his government are also planning to use Greece's unique character and heritage to move forward on a number of other issues, including the difficult situation in Cyprus and the possible admission of Turkey into the EU.

Much of the change taking place in the country's wider global role results from the return of the Olympic Games to Greece, the place in which they were born in 330 B.C.

The Games will take place in Athens, the country's capital, in August of 2004. The entire country is working hard to complete the infrastructure and facilities on time and change its image as a slow-moving Mediterranean country.

This will be a crucial step if it is to accommodate the thousands of people from the international community who will come to Greece to join in the celebrations of peace, friendship, culture and sport.

The world is expecting much from the homecoming of the Olympics. More than 4 billion people worldwide will be watching this historic event, as nearly 11,000 athletes compete for the gold. It is no exaggeration to say that all eyes will be on Greece, and the organizers are well aware of this.

Preparing for the Olympics requires a systematic, professionally organized effort that reveals the true capabilities of the public and private sectors. There is a new state-of-the-art national airport that opened in 2001, and the metro system has been up and running since 2000.

While these are among the most extensive and high-profile plans to modernize the country, other preparations continue in every sector. Greece is projecting a new positive image to the world, and expects to attract a larger number of tourists from a wider variety of countries each year.

In addition, Athens is being trtansformed from just being a stepping-stone to resort islands to an attractive tourist destination.

The country has surpassed expectations by recording impressive GDP growth rate in recent years -- averaging 3.5 percent. Analysts predict it will rise to 4 percent this year, continuing to double the EU's average.

This growth is due to strong capital spending linked to infrastructure projects financed by the EU third community support framework, funding that will last until 2006.

The tourism industry is still strong and accounts for 15 percent of the country's GDP. Unemployment, on the other hand, remains at high 10 percent, and is especially damaged for the young. However, the Olympics are expected to create more than 40,000 jobs each year, helping to reduce the unemployment rate. Greece has made tremendous progress in controlling its inflation rate. Compared to a 16 percent rise just 10 years ago, prices rose by only 3.5 percent last year.
Tkashi Nakamoto, Japan's ambassador to Greece

As a result, interest rates have sharply declined. This success has allowed Greece to rank, against all expectations, among the first wave of European countries to begin using the euro, and the new currency has been smoothly integrated into the economy.

In addition, the government is pushing ahead with ambitious reforms of the country's tax code and pension system, still considered to be too complicated.

Greece's transformation is taking place on every front, including economic, social, cultural and environmental areas. The capital market is thriving and liberalization has opened the door for large-scale investments from abroad.

As Greece becomes further modernized and stable, it is becoming an even stronger gateway to the Balkan region, an area torn by conflict during the 1990's.

Through trade, cultural links and a program of reconstruction in the Balkans, Greece is helping countries in the region get on the path to development and stability. Ties with Turkey have been enhanced as bilateral trade and tourism grow. In fact, both countries have submitted a joint bid for the 2008 European Football championships.

Japanese companies have been quick to recognize the new, exciting opportunities in the Greek market. Many of the large corporations have already established a presence in the country. In particular, some leading Japanese companies, such as Toyota, Subaru, and Sony have grabbed significant market shares.

The Japan External Trade Organization office in Athens continues to promote trade and investment between Greece and Japan.

"We are looking forward to encouraging even more commercial and investment links between our two countries," announces Takashi Nakamoto, who took up his post as Japanese Ambassador to Greece last summer.

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