Meager prospects for participation in reconstruction after end of war
Greek companies due to their small size and relatively inwardlooking orientation, can hope for a very small share in the reconstruction that is likely to follow the end of the war in Iraq.
But they are affected crucially, particularly as a result of the negative impact of oil prices, and declining tourism, Greece’s biggest currency earner.
The rise in the price of oil make the raw material so expensive that the refineries, Hellenic Petroleum, Motor Oil and Petrola, have to pass on the increase to the consumer. They may benefit or lose, depending on the policy of stocks they follow and their strategy for hedging risk resulting from the fluctuations in oil prices.
Cement industries, Titan and Heracles, are likely to benefit from exports for the reconstruction programme. But analysts say that Greek cement is of a high quality but its price is significantly higher in relation to that produced in Egypt, for instance.
Iron goes with cement; there are expectations for metallurgy industries, particularly the Stassinopoulos Viohalco group, which already has a notable exporting presence in the Middle East.
Among those looking forward to gaining a share of the pie are some construction companies that have already worked in the area, particularly in Jordan and Lebanon. Their hopes mainly rest on obtaining subcontracting deals from big foreign companies.
Coastal shipping companies would like to see a quick end to the war, leading to a fall in the price of oil, which has sent operating costs skyrocketing. The sector is already burdened with a high debt load.
Tourism enterprises also hope for a speedy and relatively painless outcome. Inflows from foreign visitors sustain not only tourism enterprises but dozens of other related sectors; food manufacturers, ice cream, refreshment and beverage companies, clothing and commerce, entertainment and banks are all direct beneficiaries of a robust performance by the tourism sector.
One sector that stands out in contrast is that of mobile telephony; business is strong, with thousands of messages of an anti-war content.