The Greek economy faces structural challenges and needs to significantly expand its productive sectors to avoid remaining overly reliant on tourism and consumer-driven growth, Andrew Liveris, chairman of The Hellenic Initiative (THI) and former chairman and CEO of The Dow Chemical Company, tells Kathimerini.
He warns that the trade war between the United States and the European Union may also indirectly affect the Greek economy if it slows down economic growth in the eurozone, impacting trade, tourism and foreign investment.
Commenting on political developments in Greece, he says that the question is whether the government can regain control of the political agenda and its momentum, noting that the prime minister still has a chance to reverse the “curse” of the second term. Finally, he says that many Greek Americans maintain strong ties with both the US Congress and the executive branch and consistently highlight the importance of Greece’s role.
Liveris, who is president of the Brisbane Organizing Committee for the 2032 Olympic and Paralympic Games, will be in ancient Olympia and Costa Navarino this week for the election of the 10th president of the International Olympic Committee (IOC).
How do you assess the new Trump administration in the global environment, from relations with NATO allies to the radical change with respect to Russia?
We are seeing a sea change in global relationships and a reset of what institutions will be applicable for the 21st century. The new reality is that “America First” is a completely new approach to the global order and the G-Zero world. It reflects the will of the American people to prioritize their own interests, economy and security above traditional multilateral commitments. Simultaneously, the administration’s policy toward Russia marks a departure from the conventional US stance. This realignment has caused uncertainty among European allies and NATO partners who view Russia differently. We are indeed in an era of transition where long-standing institutions and relationships are being challenged. The question remains: Will this new approach foster a more self-reliant and balanced global order, or will it erode the stability that these institutions have historically provided?
His tariff policies have created unease in the markets. Given your deep knowledge of the business world, what will the effect on the US and the global economy be, if any?
Tariffs are a blunt instrument, but they have historically played a role in major economic transitions, from the agricultural revolution to the industrial revolution and now the digital revolution. At their core, tariffs are a tool used by governments to address perceived imbalances in trade, protect domestic industries, and, in many cases, respond to economic or political pressures from within their own borders. However, while they may serve strategic purposes in the short term, they may lead to unintended consequences that ripple through both domestic and global markets. Financial markets, which thrive on stability and predictability, are particularly sensitive to tariff policies. The real challenge lies in finding a balance between protecting domestic industries and ensuring that global trade remains open and beneficial for all participants. If tariffs are used strategically and in conjunction with broader trade negotiations, they can yield positive outcomes.
How will or could his trade and foreign policies impact Greece?
Tariffs may have an indirect rather than a direct impact on Greece. Given that trade between Greece and the US is relatively limited compared to larger European economies such as Germany or France, American tariff policies are unlikely to significantly disrupt Greek exports or imports in a direct manner. However, the broader implications of US trade and foreign policy decisions could create economic conditions that influence Greece’s financial stability and growth prospects indirectly. Such an economic conflict would likely slow economic growth across Europe, reducing overall investment, industrial production, and consumer confidence. Since Greece is deeply integrated into the European economy, any slowdown in EU-wide economic activity would have secondary effects on Greece, impacting trade, tourism and foreign investment. The Greek economy remains sensitive to external shocks. For example if the US takes a more assertive stance on global energy markets, particularly in relation to oil and natural gas production, this could influence Greece’s role as a regional energy hub, particularly in relation to LNG imports and the development of offshore gas resources in the Eastern Mediterranean.
The Greek political system is being challenged. How do you view the latest developments as a prominent member of the diaspora?
Historically, second terms in Greek politics – and in many democracies – tend to be more difficult, as voter expectations are higher, opposition forces become emboldened, and fatigue sets in within the ruling party. With two years remaining before the next election, the prime minister still has an opportunity to defy the notion of the “second-term curse” and reassert leadership. The key question is whether the government can regain its initiative and momentum. If the government is to sustain growth, it must push forward with structural reforms, increase foreign direct investment, and further modernize key sectors, including technology, energy and manufacturing. The challenge is not merely economic but also political – ensuring that reforms do not lose public support while implementing them effectively. If the government can seize this moment, it has the potential to overcome the challenges of a second term and solidify Greece’s position as a stable, forward-looking, and economically competitive nation.
What is the international image of Greece?
Since the eurozone crisis, the international image of Greece has undergone a remarkable transformation. The country has achieved greater political stability, regained investor confidence, and rebranded itself as a dynamic economy. Athens, in particular, has emerged as a hub for startups and cultural revival, making Greece not just a tourist paradise but also a “cool” destination for business and lifestyle. With a solid economic recovery and a renewed global image, Greece is proving that it has moved beyond the crisis and is embracing a brighter future. In short, while challenges persist, Greece’s international image has significantly improved, focusing more on resilience, tourism and investment opportunities.
What is your take on the Greek economy? Have we learned from the crisis? Many fear we have not.
Greece’s economic model remains largely unchanged, continuing to rely heavily on services, particularly tourism, with construction playing a secondary role. While the government projected a 15% increase in investment growth last year, actual growth fell significantly short. Bureaucracy, slow judicial processes, and lingering regulatory inefficiencies continue to deter investors. Although Greece has improved in global rankings for business environment and ease of doing business, more work is needed to streamline processes, reduce red tape, and modernize its investment framework to create a more competitive and predictable economic landscape. Another pressing concern is the resurgence of the current account deficit, which reached 6.2% of GDP last year. This is a worrying indicator, as it suggests that Greece is once again consuming more than it produces, relying heavily on imports while struggling to boost exports. Without significant expansion in productive sectors, Greece risks remaining overly reliant on tourism and consumer-driven growth, both of which can be highly volatile.
Can there be a European defense industry strong and innovative enough to be competitive?
Yes, but it will take time, sustained political will, and significant investment. The resolve of the EU will be severely tested as it seeks to build a truly competitive and independent defense industry. However, a common need has emerged across member-states, and there is now a growing realization that developing a robust European defense sector is not just an option – it is the only viable path forward. Europe must take greater responsibility for its own security. The EU has both the technological expertise and industrial capacity to become a global leader in defense manufacturing and innovation, but it will require a long-term commitment, stronger cooperation among member-states, and a clear strategic vision.
Is there a strategic role for the diaspora?
Absolutely. The Greek diaspora has historically played a crucial role in supporting Greece, both economically and culturally, and its strategic importance continues to grow. Greeks around the world have established themselves in key positions across business, politics, academia and the arts, creating a global network that can influence policy, attract investment, and promote Greece’s interests on the international stage. In today’s interconnected world, the strategic role of the diaspora is more relevant than ever – whether in advocating for Greece’s interests in foreign governments, supporting tourism and entrepreneurship, or contributing to philanthropic efforts that address pressing social issues, like our work with The Hellenic Initiative. The principle remains true: Once a Greek, always a Greek, and this global network remains one of Greece’s greatest strengths.
The latest on THI? What efforts are under way to connect communities worldwide?
The Hellenic Initiative continues to strengthen its global reach by engaging diaspora communities in new and meaningful ways. Our International Committee has been working diligently to expand THI’s presence beyond its traditional strongholds, introducing and integrating Greek communities from Switzerland to Zimbabwe into our network. This expansion is not just about increasing numbers; it’s about building a global movement of Greeks committed to supporting their homeland through philanthropy, investment and advocacy. All of us at THI work to ensure that Greeks around the world remain actively connected to Greece’s progress and future.
Can the Greek-American community have an impact on Trump and his policies toward Greece and the region?
Many Greek Americans have strong ties to Congress and to the executive branch. Through lobbying efforts, community engagement, and close collaboration with policy makers, the Greek-American community works to ensure that Greece’s voice is heard in Washington, particularly on issues related to regional stability, defense cooperation, and investment opportunities. By leveraging these connections, we all work tirelessly to strengthen US-Greece relations and promote policies that enhance Greece’s geopolitical standing and economic development.
The prospects of Brisbane 2032, connecting ancient Greece to the modern Olympics – what makes these Games different from the others?
The Brisbane 2032 Olympics are based on the new agenda of the IOC which is the Games are designed to fit the city/region and not the other way around. This shift marks a significant evolution in Olympic planning, ensuring sustainability, community involvement, and a lasting legacy for the host city. At the heart of this approach is a renewed focus on the athletes and the fans, making their experience the central priority. In this regard, Brisbane 2032 shares a deep philosophical connection with the origins of the Olympic Games in Greece, where the primary focus has always been the performance, spirit and excellence of the athletes.