Chris Barton: UK investors watch closely Greek energy investments

UK investors are showing strong interest in the Greek green energy sector, according to Chris Barton, HM Trade Commissioner for Europe, who adds that some 10.000 British companies are currently buying from or selling goods to Greece.

In an interview with Businessdaily.gr during a recent trip to Athens, Barton highlighted the importance of providing an environment of predictable regulation and one where investors can get licensing and permitting through swiftly.

“We're working on supporting deals, particularly in the renewable energy sector. We see real opportunities there," he emphasized.

In regards to broader economic and business ties shared by the two countries, he spoke about the significance of a decision by Metlen to list its shares on the London Stock Exchange, how London and Piraeus can rise together as global shipping centers and the UK's place in the European landscape after Brexit.

• Where do the commercial ties between the UK and Europe stand now after Brexit? What are the targets and priorities for the UK in this newly formed relationship?

Europe is by far away the UK’s most important trading partner. We are very delighted to have that strong relationship and want to see it grow even further. We've seen our overall trade levels stabilize after some challenging years but now our exports are about 20% higher than they were in 2019. 

I'm very optimistic about the prospects of our trade and investment relationship as we see economic growth in both the UK and the EU picking up. From the UK side, we want an even closer relationship with Europe that we have had over the last few years.

The new government wants to reset this relationship, recognising of course that we have been on a journey over the last few years and wanting it to be a very close relationship.

We want a reset in the sense that we want a constructive close relationship which recognizes that we are valuable partners, allies and friends. And also looking to particular areas where we think we could have an even stronger ties, including on the commercial side, defence and security, and elsewhere.

• Recently M. Draghi in his report on Europe supported the need to implement large-scale investments in order for the EU to be able to cover the distance that separates it from the USA and China. How does the UK see its place as an investment destination in today's environment?

We are very keen for investments in the UK to grow. Foreign direct investment flows into the UK have been higher than any other European country in the last few years, so we are very pleased to see that interest in terms of both absolute numbers and the rate of growth.

Just a few days ago we recently held a big investment summit in London where we had 200, nearly 300 CEOs from major international companies coming to the UK where we're setting out our pitch and getting their views on how to shape our policy going forward. Investments of some 60 billion euros were announced in regards to that summit.

We see particular opportunities in the financial and professional business services sectors, in advanced manufacturing, in renewable technology, clean energy, in tech.

• What is your position on steps taken by states in providing incentives to attract investment? Isn't this competition of incentives a new kind of protectionism?

We think that there is a role for targeted subsidies in some areas where they are addressing a market failure. But it's important overall that if we want to attract the invest that we want that the lead policy cannot be about subsidies.

It's about creating an overall environment that is open, that welcomes international business, that provides a stable context in which companies can invest in. One that  promotes a wider pro-investment environment that provides predictable regulation, availability of private finance and so forth. From the UK side, these are things that we really focus on delivering.

In terms of subsidies, Europe as a whole would not be able to compete with China and America, even if we wanted to. If we tried to enter a subsidies race, if you like, it would be an ineffective way of delivering the change that we need which means we should focus more on the environment, such as transparency and stability.

• What is on the radar of UK investors when it comes to the Greek market?

There is a lot of interest in energy, where we have a number of companies who are already active in Greece, like BP Lightsource, with more companies looking into opportunities in the low carbon transition.

We see very big opportunities in this field. This is the area that is at the top of the list.

However, the two countries have a broad trade investment trade relationship, that includes travel and tourism, financial or business professional services in pharma, along with food and drink side, fruit and vegetables.

• Can we expect any new deals soon?

Yes, we're working on supporting deals, particularly in the renewable energy sector. We see real opportunities there. It is equally as important that businesses continue to see an environment of predictable regulation and that they can get licensing and permitting through swiftly.

• Greece was at the centre of very negative publicity during the crisis. Do UK investors see these difficult moments of the crisis having passed into history for Greece?

Very much so, that is certainly the message that I hear. We see significant growth in the economy, a lot of interest in British companies being here, finding useful opportunities to invest.

In terms of UK-Greece ties, UK-EU ties we're heading absolutely in the right direction despite those overall global headwinds.

• Both London and Piraeus vie for top spots as global shipping centres. Can they both succeed?

Both are important shipping centres, each with its own focus. Sure there is competition but there is also a complementarity between them as Greece is the first shipping power in the world and the UK remains a global maritime services centre.

During my last trip here I spent quite a lot of time with the shipping sector here and seeing a lot of interest from companies in both directions, while sharing and addressing some of the shared challenges and opportunities, particularly in areas such as the sustainability transition.

• A large Greek company Mytilineos – Metlen is planning to list its shares on the LSE. How do you see this move?

This is a vote of confidence in the London Stock Exchange. It is clearly one of the key financial centers around the world. This is a great strength for us in attracting investment and the effectiveness and competitiveness of our own companies. So we are very pleased with this and it underlines that London remains a world winner in terms of attracting investors. 

• What is the presence of Greek companies in the UK and which sectors in your country do you think are most attractive and show the greatest prospects for Greek companies that would like to expand in the UK?

First of all, there are a large number of Greek companies in the UK, which is very welcome. I would say there is certainty potential for that to grow as they are of a relatively small scale and we're keen to see larger opportunities. Yesterday I was also talking with Viohalco, a company that is operating in the UK and interested in doing more business. 

To go back to our investment summit, our industrial strategy is called Invest 2035. We would love to see more Greek companies investing in the UK and we're very happy to help and support them.

• How do you help them? What do you offer?

We refer to the three As. Advice of the opportunities and how to make the most of them, Applicacy, which make sure that people are aware of the opportunities and see why they are compelling, and then Assistance, the practical help, connecting them with potential businesses, counterparts or local government to find the best locations and understand regulations.

Once investors have come, we also provide aftercare service to make sure that they're settling in and they understand how they can flourish because we have obviously an interest in this also.

• What's the big challenge for UK companies doing business in Greece?

Overall, as we've got over 10.000 British companies who are buying from or selling goods to Greece. Some of the issues which we look to address is ensuring that British companies have the awareness of the opportunities and understanding the trading environment. Overall, it is important to see that Greece, along with Europe as a whole, remains the most attractive place for British companies to launch their export journey. 

With the EU and in turn, Greece, we have a free trade agreement that is as good as any other trade deal that we have in the world. We have a lot of natural synergies, the way we think about business and familiarity from people traveling and knowing each other.