Greek businesses in the UAE divided on the future of EU
MANY BELIEVE A DEAL IS STILL POSSIBLE DESPITE THE LOAN DEFAULT
Greek businesses operating in the UAE said the failure of Greece and its creditors to reach an agreement which led to the introduction of capital controls on Monday and the country missing the deadline on $1.6 billion debt repayment to the International Monetary Fund (IMF) has not had any major impact on their businesses.
While some said bank shutdowns have caused some inconvenience in making and receiving payments, they believed it will be temporary irrespective of the fact whether Greece remained part of the EU and the euro, after the July 5 national referendum.
“We are hopeful that Greece will reach a deal with the creditors and will remain part of the European Union and the single currency. I think the referendum will favour remaining in EU and a viable solution will eventually be reached on debts and the disputes on austerity measures. If Greece is forced to exit the euro, that will be the end of the EU and the common currency,” said Costos Moutzouris who runs Dubai-based Adam Ship Repair.
Moutzouris said the recent developments leading up to the loan default and the bank shutdown have not impacted his business in the UAE and transactions with Greek counterparts. A Greek businessman who runs an oil trading and oilfield services company based in Dubai told Gulf News that majority of Greek people want Greece to remain part of the EU and want the euro as their currency, but they also would like to see Greece get a just deal especially on the austerity front.
“As a Greek citizen I do not want see my country to suffer from negative growth and double digit unemployment for a prolonged period. I think the EU, the IMF and ECB should look at a pro-growth solution to the current crisis instead imposing unilateral unsustainable austerity measures on Greece,” he said.
Petros Kallidis, chairman of the Hellenic Business Council in Dubai and Northern Emirates believes that a Greek exit from the euro will benefit the Greek economy in the medium term, although people will have to go through short-term difficulties for the exit in terms of debasing of the currency and inflation.
“A Greek exit from the euro will be better for the Greek economy. To put it in context, the Greek economy was growing at the rate of about 5 per cent before the country joined the European Union and the single currency. Because of the strength of the euro, Greece’s key industries such trade, tourism and hospitality sectors suffered. I believe that Greece will be better off with our own currency the drachma.”
Because of the strength of the euro, Greece’s key industries such trade, tourism and hospitality sectors suffered. I believe that Greece will be better off with our own currency.”
Petros Kallidis | Chairman of Hellenic Business Council in Dubai and Northern Emirates