Business Partners | Mar-Apr 2011

BUSINESS

mARCH-APRIL 2011Vol. X | No. 53

HealtHcare Value in Policy Reform

Business usatax aspects ▼

Hr todaytHe 4tH ceo census▼

travel & tourismeducating cruise industry professionals▼

strategy & innovationsailing ‘on-tHe-Wind’▼

plusBiz Buzznames & facestrends & trade makers

bponline.amcham.gr

Healthcare Reform A Holistic Approach

Katerina Karella, President and Managing Director, Pfizer Hellas

american-HelleniccHamBer of commercewww.amcham.gr

WANTEDGood ideas for a new business.

Challenging work. $100.000 reward.Innovators may apply at www.miw.gr.

An Initiative of the American-Hellenic Chamber of Commerce

Please R

ecycle

MaRcH-aPRIl 2011 | BUSINESS PARTNERS | �

4 THEBOARD 6 CHAmBERNEws10 LEADERsHipCOmmiTTEE

2010 survey on Talent and Mobility

12 REALEsTATEselling? 5 easy Ways to Improve your Home’s Value by Nikos iatrou

13 sTRATEgy+iNNOvATiONsailing ‘On-The-Wind’ by CoNstaNtiNos stavropoulos

14 NAmEs&FACEsiNTHENEws16 HRTODAy

The 4th ceO census—a shift in Priorities by NaNCy Mathioudaki

18 BizBuzzcurrents in Today’s Business environment

20 iNpROFiLEcardiac solutions by alexaNdros laMNidis

22 THEiNTERviEwKaterina Karella, President and Managing Director of Pfizer Hellas

25 TRAvELusADiscover america—california

26 HEALTHCAREThe Healthcare system: Value in Policy Reform

38 TRAvEL&TOuRismNo Borders—educating cruise Industry Professionals by sybil hofMaNN

40 BusiNEssusATax aspects of Doing Business in the United states by stepheN flott

42 ARTsuppORTsEDuCATiONa Fulbright Initiative

44 TRENDs&TRENDmAkERs46 BusiNEss2BusiNEss

a B2B Toolbox

48 viEwpOiNT singularity University

CONTENTsvOLumEX|NumBER53 AMERICAN-HELLENIC CHAMBER OF COMMERCECHAMBER.PRESS AMERICAN-HELLENIC CHAMBER OF COMMERCECHAMBER.PRESSISSN 1109-4990 CODE: 6526

DIRecTORElias Spirtounias [email protected]

PUBlIsHeR & eDITOR Raymond [email protected]

aDVeRTIsING Raymond [email protected]

DesIGNsnack•

PRINTING & BINDINGA. PSILLIDIS & CO

OWNeRAmerican-Hellenic Chamber of CommercePolitia Business Center109-111 Messoghion Avenue 115 26 AthensTel: +30 210 699.3559Fax: +30 210 698.5686-7 E-mail: [email protected]

BRaNcH OFFIce47 Vassileos Irakleiou Street 546 23 ThessalonikiTel: +30 2310 286.453, 225.162Fax: +30 2310 225.162E-mail: [email protected]

BusiNEss pARTNERs is THE BimONTHLy mAgAziNE Of thE AmErICAN-hEllENIC ChAmbEr Of COmmErCE

22Katerina Karella, President and

Managing Director of Pfizer Hellas, discuses a holistic

approach to Healthcare reform

38sybil Hofmann, President

of alpine center, the swiss Business school for Hotel &

Tourism, on educating cruise Industry Professionals

26lena lyberopoulou,

Director Government affairs and Patient Relations,

Glaxosmithkline Greece, takes part in the Business Partners

Healthcare overview

BpONLiNE.AmCHAm.gR

DiRECTOR’sDEsk

In the previous two months we have witnessed serious developments, in Greece and internationally. The decisions taken at the European Union Summit, the enormous destruction from the earthquake in Japan, and the international military intervention in Libya are all of enormous importance, not only for the world community but for Greece. We find ourselves at the beginning of momentous develop-ments and change, not only at the financial level but, even more so, at the level of political alliances and regional balances.

Greece, in the midst of severe recession and fiscal danger, is in need of every effort to help it escape from the dire straits into which we have devolved. Our political leadership must focus on a sincere and frank analysis of our current status and resolve to be more coordinated in undertaking effective action. The time has passed for political gamesmanship, party juxtapositions, and personal maneuvering.

In Greece today there is an increasingly large “silent majority” that is becoming ever more disappointed with the lack of cooperation among our country’s political elite. This powerful majority expects a course of political development that delivers expediency, a new social contract, and policies that offer prospects for growth.

This silent majority expects the rational management of national assets, meaningful reform in the ju-dicial and education systems, a fair and consistent tax regime, a transparent and enforced e-governing process, and thorough inspections in the public sector to root out waste and opacity.

If such a course is hampered by constitutional process, it is time to advance constitutional change, elimi-nating mechanisms that allow for favoritism, special rights to certain interest groups, and prejudiced loopholes. Article 4 in the constitution clearly provides for equal rights and responsibilities to all Greeks and states all Greeks are equal under law.

Do we believe this constitutional right applies today? It is incumbent on the political leadership of Greece, at any cost, to implement those changes that would guarantee these rights. Greek citizens de-serve no less and must be allowed to participate in the democratic process that has its roots in Ancient Athens.

There then might be hope for a sustainable prospect of a healthy Greece, for citizens today, and future generations.

ElIAS SPIRToUNIASExecutive Director

The american-Hellenic chamber of commerce was established in 1932 and is one of the largest, most active, and dynamic ameri-can chambers in europe. Virtually all american companies that do business in Greece and Greek companies that engage in trade with the United states are members of the chamber.The chamber's membership is comprised of more than 1,000 proactive companies that seek to expand business horizons, cre-ate new business partnerships, and take advantage of trade and investment opportunities in today's global economy. The american-Hellenic chamber of commerce is an active mem-

ber of the U.s. chamber of commerce in Washington D.c. and the european council of american chambers of commerce (ecacc).

MissionstateMentThe american-Hellenic chamber of commerce strives for con-tinuous improvement of american-Hellenic commercial and financial relations, through increased membership and through the organization of top-quality events, exhibitions, fora, seminars, and congresses on both sides of the atlantic.

The American-Hellenic Chamber of CommerceA DynAmic, ProActive chAmber

� | BUSINESS PARTNERS | MaRcH-aPRIl 2011

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American-hellenic chamber of commerce

executivecoMMitteeGramatidis Yanos President | BAHAS, GRAMATIDIS & PARTNERSKyriacou Marios T. Vice President | KPMG CERTIFIED AUDITORS A.E.Bakatselos Nikolas Vice President | PYRAMIS METALLOURGIA A.E.Karayannis Angelos Secretary General | KARAYANNIS K. GROUP OF COMPANIESPanayotopoulos Litsa Treasurer | M2M SOLUTIONS CONSULTING SERVICESAnastassopoulos Simos Counselor | PETSIAVAS N. S.A.Bacacos George Counselor | BACACOS P. CHEMICAL & PHARMACEUTICAL PRODUCTS CO. S.A.Charalambous Odysseas Counselor | CISCO SYSTEMS HELLAS S.A.Papadopoulos Thanos Counselor | CHEVELLAS S.A.

Spirtounias Elias Executive Director

BoardofdirectorsAntoniades Vassilis | THE BOSTON CONSULTING GROUPAntonopoulos Constantinos | INTRALOT S.A. - INTEGRATED LOTTERY SYSTEMS AND SERVICESCanellopoulos Paul | CHARTIS GREECE S.A.Costas Stavros | EconomistCostopoulos Alexandros | FORESIGHT STRATEGY & COMMUNICATIONSCostopoulos John | HELLENIC PETROLEUM S.A.David George | COCA-COLA HELLENIC BOTTLING COMPANY S.A.Filiotis Dionysios | PHARMASERVE-LILLY SACIFrangou Angeliki | NAVIOS MARITIME HOLDINGS INC.Karella Katerina | PFIZER HELLAS S.A.Kartsanis Georgia | CEO CLUBS GREECEKhan Pheroze | BRISTOL-MYERS SQUIBB A.E. Kibaridis Stelios | ALAPIS S.A.Kokorotsikos Paris | EUROCONSULTANTS S.A.Kosmatos Makis | JOHNSON & JOHNSON HELLAS S.A.Kouides Antonis | B.E.R.M.A. A.E.Koutsoureli Eftychia | INFO-QUEST S.A.Kyriakides John | KYRIAKIDES GEORGOPOULOS & DANIOLOS ISSAIAS LAW FIRMMamidaki Eleftheria | MAMIDOIL JETOIL PETROLEUM COMPANY S.A.Manos Alexandros | PIRAEUS BANK S.A.Papalexopoulos Dimitri | TITAN CEMENT COMPANY S.A.Passaris Despina | PROCTER & GAMBLE HELLAS LTD.Plessas Dennys | LOCKHEED MARTIN (INTERNATIONAL) S.A.Priamou John | U.S. COMMERCIAL COUNSELOR (RET.)Saracakis John D. | SARACAKIS BROTHERS S.A.Stavridis Stelios | PISCINES IDEALES A.E.Symeonides Dimitris | MEVGAL S.A. DAIRY PRODUCT INDUSTRYSynghelides Polychronis | CHRYSLER JEEP DODGE HELLAS S.A.Tamvakakis Apostolos | NATIONAL BANK OF GREECE S.A.Yiannopoulos Emil | PwC (PricewaterhouseCoopers Business Solutions SA)Zeritis Panos | THRACE PAPER MILL S.A.

coMMitteesAuDitors committee Members: Felonis Athanassios, Sabatakakis Kyriakos, Papakosmas Dimitrios | Co-ordinator: Hadjianagnostou Andriana

corPorAte GovernAnce committeeChair: Papacostopoulos Constantinos | Members: Alexandris Spyros, Charalam-bous Yiangos, Dimou Ioannis, Petalas Apostolos, Siamishis Andreas, Theodoulidou Maria | Coordinator: Constantinidou Dafni

corPorAte sociAl resPonsibility committee Chair: Stavridis Stelios | Members: Alexiou Maria, Constantelis George, Lolas Vassilis, Papademetriou Pakis, Psyrra Irene, Vrachatis Ioannis | Coordinator: Boyatzis Angela

environment & enerGy committeeMembers: Aloupis Constantine, Bakouris Konstantinos, Karayannis Angelos, Manos Alexandros, Melissanidis Dimitris, Mytilineos Evangelos, Nomikos Elias, Papadimitriou Spiros, Papavasileiou Athanasios, Peristeris George, Stefanakis Ioan-nis, Yannopoulos Sotiris, Yiannopoulos Emil | Coordinator: Dikeoulia Angeliki

Greek economy conference committee Chair: Kyriacou Marios | Members: Antoniades Vassilis, Anastassopoulos Simos, Bacacos George, Yannopoulos Sotiris | Coordinator: Dikeoulia Angeliki

innovAtion AnD eDucAtion committeeChair: Panayotopoulos Litsa | Members: Charalambous Odysseas, Giourelis Ste-fanos, Kollas John, Makios Vassilis, Makridakis Spyros, Patakiouti Maria, Skoura Alexandra, Tsangos Christos | Coordinator: Tzagaroulakis Katerina

insurAnce, sociAl security & lAbor mAtters committee Chair: Kremalis Konstantinos | Members: Canellopoulos Paul, Rouvas Andreas, Koussia (Dr.) Venetia, Lisseos Panayotis, Mazarakis Dimitrios, Panorios Manos, Pe-lidis Manos, Sarantopoulos Dimitris | Coordinator: Tseritzoglou Voula

iPr committeeMembers: Boscopoulos Paris, Galanopoulou Katerina, Makris Antonis, Ross Dan-iel, Zachou Dora | Coordinator: Constantinidou Dafni

leADershiP committeeChair: Miropoulos Artemis | Members: Griveas Polychronis, Hofmann Sybil, Kat-sivelis Pavlos, Kerastaris Antonis, Kofinas Kyriakos, Olympios Spyros, Paraskevaides Stavros, Saracakis Alexandros | Coordinator: Ritana Xidou

northern Greece committee Chair: Bakatselos Nikolas | Members: Accas Ioannis, Alexopoulos Charis, Gigilinis Alexandros, Kafatos Vassilis, Katsaros George, Kokorotsikos Paris, Kouides Antonis, Kouimtzis Thanassis, Koukountzos Konstantinos, Mavroudis Theodore, Pylarinos Othon, Symeonides Dimitris | Coordinator: Tsavdaroglou Nikos

PhArmAceuticAl committee Chair: Karella Katerina | Vice Chair: Filiotis Dionysios | Members: Apostolides Pascal, Boscopoulos Paris, Frouzis Konstantinos, Gerassopoulos Marcos, Karagian-noglou Stylianos, Katzourakis George, Kefalas Nikos, Khan Pheroze, Pateraki Evan-gelia | Coordinator: Tseritzoglou Voula

Public AffAirs committee Members: Anastassopoulos Simos, Kyriacou Marios, Papadopoulos Thanos | Coor-dinator: Xidou Ritana

strAteGic PlAnninG committeeMembers: Costopoulos Alexandros, Gramatidis Yanos, Priamou John, Stavridis Stelios | Coordinator: Mamali Georgia

tAxAtion committee Chair: Kostas Stavros | Members: Altiparmakis Christos, Ampeliotis Evaggelos, Anastasiadis Charalampos, Antoniou Vassilios, Desipris Antonis, Doucas Spiros, Gigantes Stavros, Gika Efstathia, Ioannidou Maria, Kerameus George, Laskaratos Panagiotis, Mavraganis George, Melemenis Ioannis, Mitsios Stefanos, Nomikos Vassilis, Samothrakis George, Sarafoglou Gerassimos, Savvaidou Katerina, Sfakakis Konstantinos, Spyriouni Litsa, Stavrides Bill, Stavropoulos Ioannis, Theofilides George, Trakadi Maria, Tsakonas Yiannis | Coordinator: Tzagaroulakis Katerina

tourism committeeChair: Stylianopoulos Andreas | Members: Ananiadis Tim, Anglos John, Argiri By-ron, Ikkos Aris, Koutsivitis Stylianos, Marriott Carol, Peresiadis Kostas | Coordina-tor: Dikeoulia Angeliki

Women in business committee Chair: Kartsanis Georgia | Members: Adamopoulou Efi, Athanassoulas Elena, Di-mou-Lampadari Maria, Papakonstantinou Ioanna, Rossou Efi, Sideri Anastasia, Tarou Iphigenia | Coordinator: Boyatzis Angela

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CHAmBERNEws

7th annual taxation Conference

on March �7, the Chamber held its 7th Annual Taxation Conference, now called the Athens Tax Forum, at the Hotel Grande Bretagne. More than �80 delegates at-tended the event—Toward an Effective and Reasonable Tax System—The Key Factor for Growth and Prosperity—that examined the restructuring and modernization of tax administration, within the Memorandum of Economic and Financial Policies between Greece and its trilateral lenders, or the Troika, as the leading structural tax reform of �0��. Speakers included Diomidis Spinellils, Secretary General for Infor-mation Systems, Ministry of Finance; leda Condoyanni, Department Coordinator for State Relations and Institutional Authorities, Hellenic Federation of Enterprises (SEV); Yannis Stournaras, Director General, Foundation for Economic and Indus-trial Research (IoBE);Dimitris Stamatopoulos, General Director of Taxation, Min-istry of Finance; Katerina Savvaidou, lecturer, Aristotle University of Thessaloniki, Professor, National School of Public Administration, Senior Tax Manager, PwC; Ioannis Stavropoulos, Managing Partner, Stavropoulos & Partners law Firm; Alex-andros Manos, Managing Director, Piraeus Bank; Nikolaos lekkas, Audit Planning and Coordination, Executive Director of Financial and Economic Crime Unit, Min-istry of Finance; Evangelos Ampeliotis, Tax Consultant, Partner, Union Program-ming Group; Tassos Evangelou, Managing Director, Diageo South Europe; Christos Altiparmakis, Controllership Manager, Energizer S.A.; Vassilis Vizas, Tax Partner, PwC; and Christos Tsolkas, President and Managing Director, Papastratos. George Papaconstantinou, Minister of Finance, delivered the keynote address.

Ahei eventDoinG business in the usAthe American-hellenic enterprise initiative, a new program of the chamber dedicated to building new trans-Atlantic business, trade, and investment partnerships, held its first event—a seminar on Doing business in the united states, on february 22 at the Athens hilton. more than 150 delegates partici-pated in the interactive workshop. speakers included David mcneill, commercial Attaché, embassy of the united states of America in Athens; Dimitrios michas, con-sultant by the minister, ministry of foreign Affairs; stephen flott, Pres-ident, flott & co. Pc; Athanasios felonis, Partner, bahas, Gramatidis and Partners law firm; Dr. Donald A. Prater, Dvm Deputy Director (foods), us fDA europe office; and yannis Drimousis, General secre-tary, ministry of regional Develop-ment and competitiveness.

GeorGe PaPaconstantinou Dimitris stamatoPoulos GeorGe samothrakis

stavros costas DiomiDis sPinellis

Yannis Drimousis

DaviD mcneill

nikolas Bakatselos & evanGelos venizelos

MaRcH-aPRIl 2011 | BUSINESS PARTNERS | 7

on January 24, the chamber hosted its an-nual new year’s reception and Pita cutting at the Athenaeum intercontinental hotel. Guest of honor was u.s, Ambassador Daniel b. smith who joined members of the chamber’s board of Directors with minister of regional Development and competitive-ness michalis chrisochoidis and miltiadis vaarvitsiotis of new Democracy Party in cutting the 2011 chamber Pita. more than 600 people attended the gala event.

neW yeAr’s recePtion— thessAlonikithe chamber held its north Greece new years reception february 5 at the met hotel in thessaloniki. Guest of honor was consul General catherine kay and attending the event were minister of Defense evangelos venizelos, minister yiannis magriotis, and new Democracy mP stavros kalefatis. President of the northern Greece committee nikolas bakatselos and chamber President ya-nos Gramatidis welcomed the guests in thessaloniki for this annual event.

catherine kaY, Yiannis maGriotis, Yanos GramatiDis, stavros kalefatis

Wib event—the brand Called youon March �5, the Women in Businesss Com-mittee of the Chamber held its �nd WIB Personal Branding Seminar and Workshop: The Brand Called You! – Creating Impact and Influence. The seminar and workshop focused on speaking and listening skills and how im-proving and fine tuning these skills can impact performance. Nicola Murray, International Interpersonal Impact Specialist from london,

spoke on Your Voice is Your Music and Body language Your Dance. Maria Dimou, Master Coach, SARGIA Partners conducted The Art of Public Speaking workshop and John Kotis, Vice President, CEo Clubs Greece, conducted The Science of Influence workshop.

MakeinnovationWorkcompetition

The chamber, in cooperation with cisco, on March 9 launched the Make Innovation Work competition, that will award a $100,000 first prize.The competition, open from March 16 to May 16, will award the prize to the best submit-ted business plan in one of four thematic areas and that is deemed exemplary of how to make Greece more competitive.all business plans, either in the area of Green energy, Tourism, alternative agriculture, or Transportation and shipping, must be submitted online through the Make Innovation Work website, where full details of the competition are available.

www.miw.gr

neW yeAr’s recePtion— Athens

Yanos GramatiDis michalis chrisochoiDis litsa PanaYotoPoulos

nikos hatzinikolaou & Yanos GramatiDis Panel Discussion

cuttinG the Pita with amBassaDor Daniel B. smith

nicola murraY (center) at the wiB event

8 | BUSINESS PARTNERS | MaRcH-aPRIl 2011

CHAmBERNEws

leadership Committee presentation on February �8, the Chamber’s leader-ship Committee hosted more than �50 students from the Athens University of Economics and Business for a presenta-tion and discussion. The event focused on the results of the Committee’s survey on Talent Management and International Work Experience. leadership Commit-tee Chair Artemios Miropoulos led the discussion.

more information on page 10

Chamber Calendarapril 14 athens, 10th HealthWorld conference

May athens, conference on the Defense Procurements and Business Developments

May athens, 3rd corporate Governance conference

June 1 athens, Hotel Grande Bretagne, 9th csR conference

June 16 athens, Hilton athens, 3rd WIB Per-sonal Branding seminar & Workshop

June Thessaloniki, National Forum on Regional Development and export in coop-eration with the Federation of Industries of Northern Greece

stavros Costas speaks in thessaloniki Stavros Costas, a member of the Cham-ber Board and Chairman of the Taxation Committee, spoke in Thessaloniki on March �� at an event hosted by Institute of Economic Management (ΙΟD) of the Hellenic Management Association), Macedonia Department. The event fo-cused on Taxation Reform in the Frame-work of the Implementation of Targets of Economic Policy. The presentation of Mr. Costas well exceptionally well received by the conference delegates.

ecAcc brussels meetinG elias spirtounias, executive Director of the chamber, attended the annual Amcham eu brussels briefing for Amchams in europe, held march 2-4. At the event, Amcham eu held its annual trans-Atlantic conference, innovation in the transatlantic rela-tionship: unlocking the Potential of a 21st century economy. european commissioner for research, innova-tion and science maire Geoghegan-Quinn gave the keynote address and Joseph Quinlan, author of the transatlantic economy 2011, for-mally launched the report. William e. kennard, u.s. Ambassador to the eu, also spoke to the Amcham delegates. the meeting consisted of policy seminars, networking get-to-gethers, and a leadership workshop.

maire GeoGheGan-Quinn, elias sPirtounias

BusinessPartnersonlinebusiness Partners is now published online at http://bponline.amcham.gr/Business Partners Online publishes the contents of the bi-monthly print version in ad-dition to a wide variety of exclusive online content, including video and podcasts, articles on Business Intelligence, a section called Knowledge Partners, and links to Ideas Online, lifelong learning resources, and web-based Radio.yanos Gramatidis, President of the chamber said: “Business Partners Online represents the effort of our chamber to respond to our members, colleagues and friends worldwide in the era of Web 2.0. The new portal is an exciting site with outstanding content that sig-nificantly expands the horizons of the chamber’s communication capacity.” Raymond Matera, editor and Publisher, said: “Business Partners Online is the natural next step for the chamber’s magazine. The initial response and support have been superb, reflecting the many positive partnerships we have developed over the years. equally important, Business Partners Online will act as a platform and forum for best practices, new ideas, and new partnerships.”

stavros costas (3rD from l)

www.bms-greece.gr

Bristol-Myers Squibb A.E. Αττικής 49-53 & Προποντίδος 2, Τ.Κ. 152 35 Βριλήσσια, Αττική ΤΘ 63883 - Bριλήσσια, Τ.Κ. 152 03, Αττική Τηλ.: 210 6074 300 & 210 6074 400, Φαξ: 210 6074 333, ΑΡ.Μ.Α.Ε. 62772/01ΑΤ/Β/07/148

Together we can prevail.

H Bristol-Myers Squibb είναι

μια παγκόσμια βιοφαρμακευτική εταιρεία

με αποστολή της να ανακαλύπτει, να αναπτύσσει

και να παρέχει καινοτόμα φάρμακα

που συμβάλλουν στην αποτελεσματική

αντιμετώπιση σοβαρών ασθενειών.

Together we can prevail.

LCv2020suRvEy

The Committee first convened in July 2009 and is chaired by Ar-temios Miropoulos, Partner of Linkage Greece. Its members are Polychronis Griveas, GM, Astir

Palace; Sybil Hofmann, President, Alpine Center; Pavlos Katsivelis, GM Pepsi; Antonis Kerastaris, CEO, HOL; Kyriakos Kofinas, MD, Adidas Hellas; Spyros Olympios, MD, Toyota Material Handling Greece; Stavros Paraske-vaides President & CEO, Mercedes Benz; Al-exandros Saracakis of Saracakis Group.A principal aim of LCV 2020 is to pro-vide input of quality leadership to today’s younger generation of business leaders who are expected to lead the business commu-nity in ten years, hence Vision 2020. The Committee recently conducted a survey among Chamber members, with 69 ques-tionnaires returned by CEOs and HR Direc-tors. The findings were crosschecked with a relevant survey to 140 middle managers. Some key findings:

internationalWorkexPerienceWhen asked about the importance of spe-cific benefits of international work experi-ence, respondents gave their top ratings to

personal development (16.1%) and inter-cultural management skills (15.7%) over reasons such as remuneration and quality of life. CEOs and middle managers both agree that the most important factors for enhanc-ing leadership skills and career progression are understanding different cultures and different business environments. ‘Unwillingness to leave family nest’ was cited by 16.5% of CEOs as the reason young employees do not pursue international op-portunities while 15.1% of middle manag-ers claim that it is ‘fear of the unknown.’ Both groups agree that the key competen-cies required for international assignments are performance (27.2%) and adaptability (27.6%) over other criteria such as com-pany loyalty, age or gender.Although 45% of CEOs acknowledge the val-ue of international job experience and 26.7% state that employers provide benefits for expa-triation, only 24.7% of CEOs find it likely that their next career move will be abroad and this is even lower for middle managers—20.4%.

talentManageMentAlmost half of both CEOs and middle man-agers stated that talent management is their company’s key practice and that appropri-

ate tools and practices are applied to at-tract and retain talent. CEOs interestingly indicated that keeping high performing employees ‘ethically satisfied’ is a powerful means of retention (19,1%).Some interesting quotes from the inter-views that followed, ‘a talent is someone you simply cannot afford to lose’ and ‘an organization without talent is doomed to fail,’ indicate the level of awareness that exists. However, it revealed that, more tell-ingly, Greek organizations lack the strategy and practice related to talent management, while for many CEOs talent and mobility go hand in hand.The survey findings were presented on February 28, 2011 in front of 160 MBA students from the Athens University of Economics and Business (AUEB) with the assistance of Professor George Panigirakis and with the participation of newer mem-bers and friends of LCV 2020: Antonis Kerastaris GM, HOL; Kyriakos Kofinas, GM, Adidas SE Europe; Spyros Olympios, Toyota Material Handling; Aristotelis Pan-teliadis, CEO, Metro S/M; and Vasilis Ra-bat, GM, Xerox. Elias Spirtounias, Execu-tive Director of the Chamber, participated in the panel discussion.

leaDeRsHIP cOMMITTee 2010 sURVey ontalentandMobility

With the guiding precept of Vision 2020 (LCV 2020), the Chamber’s Leadership Committee has identified two key focus areas: talent management and the mobility of executives—the promptness with which young executives take up expatriate assignments.

�0 | BUSINESS PARTNERS | MaRcH-aPRIl 2011

�� | BUSINESS PARTNERS | MaRcH-aPRIl 2011

REALEsTATE

By Nikos iatrouNIKOs IaTROU Is cHIeF OPeRaTING OFFIceR (cOO) aT cOlDWell BaNKeR Hellas,

PaRT OF THe sOUTHeasT GROUP; He Is a MeMBeR OF THe ROyal INsTITUTION OF cHaRTeReD sURVeyORs (RIcs)

Coldwell Banker Hellas shares five inexpensive renovations that can increase a home’s value and appeal to buyers.

selling? 5 easy Ways to improve your home’s value

Home value is on the top of minds for many homeown-ers, particularly as the housing market begins to show early signs of recovery from the re-

cent downturn. Renovations and remod-eling can play a critical role in both increas-ing the value of a home and ensuring that it stands out to potential buyers. At a time when most consumers are look-ing to do more with less, few homeowners may be ready to commit the thousands of dollars it can take to fully redo even a single room. The professionals at Coldwell Banker Hellas suggest the following five affordable home improvements for potentially in-creasing the overall value of a home, with-out breaking the budget: 1. Reface Kitchen Cabinets Kitchen up-

dates are among the smartest remodeling projects when it comes to “upping” the resale value of a home. But homeown-ers do not need to spring for an entire

new cabinet set to improve the room’s appeal. Refacing existing cabinets, apply-ing a fresh coat of paint or replacing tar-nished pulls and knobs with new hard-ware might be just the quick fix a kitchen needs to make it look and feel like new.

2. Improve the Lighting Updating lights and lighting fixtures is another simple enhancement that does not require a ma-jor investment. Replacing old bulbs with stronger, more energy-efficient compact fluorescent bulbs will brighten up the house and make it more inviting – while cutting down on energy costs over the long term. In addition, replacing recessed lights in a dining or living room with an affordable chandelier or installing accent lighting to draw attention to artwork or other room features can create an entire-ly fresh ambiance.

3. Hang More Mirrors It sounds simple, but the addition of a mirror on any wall adds depth and light to a room, making even

the smallest space seem larger. Mirrors also add elegance and charm to a home’s décor, and often at a reasonable price.

4. Break Out the Paint Brushes Applying a couple coats of paint can make a remark-able difference and is always a low-cost, high-return project. I recommend a warm, neutral wall color that can make a room seem more spacious, create a more modern feel and appeal to a wider variety of buyers.

5. Spruce up Your Home’s Exterior When planning to put money into a house, homeowners should not overlook sim-ple exterior renovations that can add substantial worth and attract more buy-ers. A freshly-mowed lawn, a clean, even walkway and a few well-placed bushes can make a huge difference. If you don’t have a green thumb, consider hiring a landscaper on a one-time basis to plant some shrubs or give the front yard a good cleanup.

since 1906, the coldwell Banker® organization has been a premier full-service real estate provider. In 2008, Franchise Times maga-zine’s prestigious Top 200 issue ranked the coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among fran-chisors in all industries. The coldwell Banker system has approxi-

mately 3,500 residential real estate offices and 105,300 sales associ-ates in 46 countries and territories. The coldwell Banker system is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its coldwell Banker Previews International® division.

About Coldwell Banker®

Have the winds of change sur-prised you? Have the changing winds bewildered you? Is your sailing yacht (enterprise) slow-ing down? Are her sails slap-

ping and beating in the wind? Is she about to stop? And even beginning to float back-wards? If yes, then she’s gone over the edge.She’s succumbing into the wind. She’s con-fined in the ‘no-sail’ zone. She’s trapped in the ‘eye of the wind’. Obviously, she’s ‘In Irons’ (‘no-go zone’ of sail), where her sails cannot generate any lift (‘in stays’). Clearly, you brought her too much into the true wind, far less than the 40-45 degree sailing angle. Undoubtedly; you’ve been relent-lessly economizing. Undeniably; you’ve been ruthlessly cost-cutting. Certainly; you’ve been haphazardly downsizing. In short, you’ve sub-optimized her well below her optimum performance levels. So, what ‘point of sail’ (direction) should you get her into? How do you optimize? Strategic Innovators, a handpicked breed of exceptional skippers worldwide, have the answers. These capable helmsmen sail ‘on the wind’ to optimize their journeys. They associate with the wind (sailing ‘close-hauled’). They play with the wind (‘tacking’ their sailboats). They flirt with the wind

(‘trimming’ their sails). Let’s sneak into their ‘point of sail’ (method), ‘tacking’ (ap-proaches) and ‘trimming’ (tools).

“BEATING” (ASSOCIATING)Strategic Innovators steer their sailing yachts ‘on the wind’, thereby optimizing their busi-ness models. They sail upwind but just off (‘beating’), thus transforming existing tur-bulent markets. How? They steer their boats ‘by the sails’ and ‘by the feel of her’, not by regard to a fixed course. Speedily ‘pointing’ (closing to the wind) and swiftly ‘bearing away’ (turning away from the wind). They sail ‘close hauled’ and ‘full and by’, with the sails full of wind and as close to the wind as possible. Going ‘to windward’, their personal act of ‘steering’ becomes paramount.

“TACKING” (PLAYING)Strategic Innovators play with the wind, by ‘tacking’ (via a zigzag course). They briskly practice business model innova-tion methodologies. They turn their boats’ bows through the wind to change wind on the other side. They holistically reconfigure their architectural components. Customer value propositions, profit formulae, key re-sources, key processes, business rules, be-havioral norms and success metrics. How?

Not apart from one another, but concur-rently, in parallel and synchronously.

“TRIMMING” (FLIRTING)Strategic Innovators flirt with the wind, by ‘trimming’ (adjusting) their sails. They posi-tion all their sails firmly sheeted (pulled in) to slice into the oncoming wind. They con-stantly watch not to over-trim (tighten) or under-trim (loosen) their sails. How? They create cross-group solution teams to solve complex optimization issues. They hold tournaments, challenges and competitions to extract concepts for elevating perform-ance. They apply consumer inspired devel-opment at the “fuzzy-front-end”, engaging all stakeholders to create insights into un-articulated needs. They build vibrant com-munities of practice, focusing on advancing business optimization with collaborative technologies and processes.

But, this is what Strategic Innovators are already doing.They are retooling serendipity into certainty.What are you doing?Are you sailing ‘on-the-wind’?Are you suitably ‘tacking’?Are you properly ‘trimming’?Are you optimizing within?

sailing ‘on-the-Wind’ oPtimiZinG Within (“beAtinG”)

sTRATEgy+iNNOvATiON

By CoNstaNtiNos stavropoulosFOUNDeR, INNOValUe

In the first of a trilogy, Constantinos Stavropoulos employs the experience of sailing to discusses strategy and innovation. The next column will focus on Sailing ‘Off-The-Wind’, Innovating Around (“Reaching).

MaRcH-aPRIl 2011 | BUSINESS PARTNERS | �3

NAmEs&FACEs

the thinG is…The best things in life are not things.—art buchwald

ActinG tiPsact as if what you do makes a differ-ence. It does.—William James

sPeAker’scorner


...inthenews alexaNder NehaMas hoNored

Princeton University professor Alexander Nehamas was received in Greece by President of the Hellenic Republic Karolos Papoulias and while in Greece Professor Nehamas was awarded an honorary doc-torate from the philosophy department at Aristotle University and from the art theory and history de-partment at Athens School of Fine Art.A native of Athens, Greece, Professor Nehamas received

his Ph.D. in philosophy from Princeton in �97� and joined the faculty in the philosophy and comparative literature departments in �990. He is the founding director the Princeton Society of Fellows in the liberal Arts, the former chair of the humanities council and the former direc-tor of the Program in Hellenistic Studies. His research at the University focuses on Plato and Nietzsche as well as beauty and judgment.

NeW GNto seCretary-GeNeralGiorgos Koletsos was appointed Secretary-General at the Greek Na-tional Tourism Organisation. Mr. Koletsos, who studied economics and business management, has served as president of the ultimately ill-fated �0�3 Mediterranean Games organizing committee.

euroCharity Celebrates five yearsEuroCharity, which bills itself as the “reference point for Corporate Social Responsibility and the Green Economy,” has celebrated five years of operation. Headquartered in Athens, EuroCharity promotes CSR, sustainability, accountability, transparency, business excellence, corporate governance, Socially Responsible Investment (SRI), busi-ness ethics, volunteerism, green and social entrepreneurship, the citi-zen sector, clean technology, innovation, and the green economy.

kaliMera breakfast lauNChedKalimera Breakfast, a new initia-tive to put Greece on the world’s gastronomy map, and a marketing program to brand the Greek breakfast as a tourist must, was launched at the

First National Congress of Gastronomy ‘Kalimera Breakfast,’ The event, held February 5, 2011, is an program of the Club Chefs Greece. President of Club Chefs Greece is Miltos Karoubas.

stavroPoulos&PartnersWinslegalaWardstavropoulos & partners, the business and tax law firm and member of the chamber, has won the 2010 “tax law firm of the year in Greece” legal award by the corporate INTl magazine. Corporate iNtl magazine is one of the leading monthly titles for business leaders, professional advisers and providers of finance throughout the word with a read-

ership of several hundred thousands of business executives and professionals. The annual awards mark excellence for leading advisers and financiers in an array of countries and continents among thousands of nominated firms. The man-aging partner of the firm, ioannis stavropoulos (photo) is an active member of chamber’s Taxation committee.

neWchairManatinvestingreeceinvest in Greece agency has announced the appointment of aristomenis (aris) M. syngros as its new chairman. Mr. syngros assumed his duties on January 20, 2011 and, as executive chairman, will oversee the agency. Previously, Mr. syngros, an execu-tive with extensive public and private sector experience, was General Manager of Trans-

parency International Hellas.

generousdonationdimitris Melissanidis, Founder of aegean, has donated 200,000 euros to support the families and victims of the shooting of police officers in the athens district of Rendi on March 1. Four suspected robbers gunned down police officers of the DIas squad, killing two of the young policemen, Officers Giorgos skyloyiannis and yiannis evangeline and

wounding two others. prime Minister George papandreou expressed his stern condemnation for the “cowardly attack.”

ioannis stavroPoulos

aris m. sYnGros

Dimitris melissaniDis

alexanDer nehamas

spyros kouroupis GeNeRal MaNaGeR

cOMM GROUP s.a.

in these challenging times, what are some strategies companies and organizations can employ? First, let’s look at what they shouldn’t do. They shouldn’t cut down on communication activities —to the contrary, this is the best time to intensify them. Now, more than ever, companies should focus on preserving the trust of their investors and customers, communicating with them and informing them about the company. Retaining a communication strategy through public relations is the most fitting response to today’s chal-lenges. adapt to current conditions and use tools such as csR, green, social media, digital.

What about tight budgets?PR is one of the most cost-effective communication tools we have. advertising, and most conventional marketing campaigns, may be efficient, and should be used, but costs can rise significantly and quickly. Public Relations can achieve great results, even under rather limited budgets. There is documented evidence showing that companies which cut down on their com-munication budgets during deep and protracted reces-sions suffer—and suffer worse. companies that beef up advertising/PR expenditure perform better, in the short- and long-run. The answer lies in targeting and selection, based on our strategy needs and demands.

how important is “mobile” in pr today?It is not important: it is essential. From the era of im-pression, we have now passed to the era of immedia-cy. Only “mobile” and “digital” can offer us immediacy and the ability to effectively penetrate our target-group.

Prstrategies

the ArroGAnce fActorIt is impossible for a man to learn what he thinks he already knows.—epictetus

the DAnGer of successThe greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.—Michelangelo

MaRcH-aPRIl 2011 | BUSINESS PARTNERS | �5

the GAnDhi fActoryou must be the change you wish to see in the world.—Mohandas k. Gandhi

�JuNior aChieveMeNt GreeCe Junior Achievement Greece has held two Pan-Hellenic Student Commercial Exhibitions Trade Fair 2011 where products and ser-vices resulting from innovative business propositions of students from all over Greece were be presented. The exhibitions were held on February ��, at the Commercial Chamber of Katerini with the participation of �5 student businesses and on March �, �0�� at the Mall Athens, with the participation of 35 student businesses. The winning team participates in the Pan-European competition Junior Achievement-Young Enterprise Europe Trade Fair in Slovakia, March �8-30, �0��.

ColdWell baNker CoNfereNCeon January �0,�0�� Coldwell Banker Hellas of Southeast Group or-ganized a one day conference on “ The franchise system as a response to the real estate market crisis” at the conference hall of the Athens Chamber of Commerce and Industry (A.C.C.I).The President of A.C.C.I,. Konstantinos Mihalos, spoke about the new possibilities franchising offers to the Greek real estate market and to the Greek Economy. All speakers agreed that franchise may prove the proper tool for business development in periods of crisis and professional insecurity since it combines the existence of a rec-ognized brand, knowhow, continuous and quality training in new systems, marketing plans, network support and specialized develop-ment tools.

youNG Global leaderDionysia-Theodora Avgerinopoulou, Member of Parliament, llM; JSD candidate. Attorney-at-law. Deputy Head, Environmental Policy Sector, New Democracy Party. Director, European Institute of law, Science and Technology was honored as a member of the World Economic Forum’s Young Global Leaders in �0��.

GreeCe attraCtive for tourisM developMeNtGreece ranked �9th among �39 countries as the most attractive en-vironment for development of the tourism sector, according to the �0�� World Economic Forum Travel and Tourism Competitiveness Report. The survey, grades �39 countries on the basis of �0 indica-tors, including regulatory framework, security, health services, infrastructures, prices, culture, environmental protection and com-muter transport.

HRTODAy

Within the framework of our engagement of fore-casting and presenting the macro characteristics and tendencies of the market,

Stanton Chase International’s CEO Census has become an established market indica-tor. We are proud to present the thorough analysis of more than 220 answers, given by senior executives, in the course of 2010. ❚ With regard to the current financial situa-

tion, Greek CEOs appear to be rather pes-simistic as the majority of the respond-ents believes that the crisis in Greece will not have ended by 2013. The CEOs also believe that the danger of default is still imminent.

❚ Adaptability, flexibility, aggressiveness and the ability to act quickly and make “tough calls” are the most important characteris-tics a CEO must show in these times of turbulence. At the same time, s/he must remain close to his/her people, lead by example and remain calm, while avoid-ing panicking in the face of these unprec-edented changes.

❚ The positions of General Management, HR and Logistics/Supply Chain are consid-ered to have the largest deficit in executive qualifications. As far as the sectors with the greatest opportunities are concerned, these are the Energy and Shipping markets. The Life Sciences/ Healthcare and Financial

Services markets, which last year ranked high in our list, are considered this year as the markets with fewer opportunities.

❚ Flexibility and Adaptability, as well as Cri-sis & Change Management are considered to be the top leadership priorities in order to meet the requirements of the constantly evolving economic environment. Despite the general atmosphere of insecurity and their reluctance to change jobs, the CEOs continue to look for autonomy and total control in the decision-making process.

❚ More than half of the participants are open to new professional opportunities, but only if the new position offers excep-tional financial and employment security. This is why their motive for making a ca-reer move focuses toward a position in a more stable industry.

❚ CEOs are still positively inclined towards relocating abroad and the vast major-ity would prefer to relocate to Eastern Europe, probably due to its proximity to Greece. They are also willing to relocate to Asia (China - India).

❚ Networking is firmly considered as the most effective way for executives to man-age their career change. Contrary to last year’s results, the preference towards ex-ecutive search agencies ranks first among Greek CEOs as a procedure to effect pro-fessional change.

Overall, adaptability, growth of skills and building a personal network are decisive for the achievement of professional objec-tives. The CEOs, although they are not optimistic regarding the short-term reso-lution of the financial crisis in Greece, firmly believe that the crisis creates new opportunities.

By NaNCy MathioudakiPaRTNeR & ReGIONal cONsUMeR PRacTIce leaDeR—

eMea ReGION, sTaNTON cHase aTHeNs

the 4th Ceo Census— a shift in priorities


NaNCy Mathioudaki is a Partner, specialized in the consumer Products & services sector as well as in the life sciences & Healthcare markets at stanton chase athens.as a leading member of the consumer Products & services Practice in the eMea region, she has handled senior level searches for key business functions for a broad spectrum of local and regional corporations.

The Athens office of Stanton Chase International completed its fourth sequential annual “CEO Census.” Nancy Mathioudaki shares some of the study’s most meaningful findings.

theceos...BelievethatthecrisiscreatesneWoPPortunities

BIZ BUZZ

18 | BUSINESS PARTNERS | MARCH-APRIL 2011

Gaea and Cat Cora Greek food brand Gaea, which special-izes in olive oil and olives, launched its new line of products at the San Fran-cisco Fancy Food Show in cooperation with well-known Greek-American chef Cat Cora. Cat Cora is a television per-sonality who has developed a series of products and programs and who attributes much of her success to her Greek-family upbringing in Tennes-see. She has an extensive line of food related products. Cat Cora, who was influenced by Chef Julia Child, founded the charity Chefs of Humanity. Chefs for Humanity is an alliance of culinary professionals and educators working in partnership with U.S. and global orga-nizations, providing nutrition education, hunger relief, and emergency and hu-manitarian aid to reduce hunger across the world.

Mandala Memory for the iPhone and iPad

Brooklyn-based The DuKode Studio has re-leased artist Zoe Keramea’s Mandala Memory for the iPhone and iPad. It is available for $1.99 at the iTunes App Store. Mandala Memory is an elegant update on the classic card matching game. Its images of hand-cut paper mandalas, variations on the circle and the square, are a series of subtle unfoldings.

A focusing of attention will reveal the fine distinctions between the patterns. One can play for points, meditation, or mind training. Mandala Memory showcases 54 images of mandalas, originally hand-cut from mulberry paper by Zoe Keramea. An endless variety is possible with two card groupings and two card appearance modes: black & white and color. To train the ear as well as the eye, the game implements distinctive sound tones for each pair. The colors and sounds that accompany the images change randomly with each new game, as does the selection of mandalas. Players may choose from 4 different grid sizes, up to 4 x 6. Each game can be competitively timed or meditatively untimed. Advanced players can unlock bonus rounds of floral mandalas. The aesthetically delightful Mandala Memory is simple, intuitive and extremely easy to learn and provides challenging play for both novice and experienced gamers.At the Best App Ever Awards announced at the Macworld Expo, Mandala Memory took Third Place in the “Best Family Game” category, beating games such as Lego Harry Potter and Gun Bros!

Aster Data Systems AcquiredTeradata Corporation (NYSE:TDC) signed a definitive agreement to acquire Aster Data Systems, Inc., a market leader and pioneer in advanced analytics and the management of a variety of diverse data that is not structured. This $263 million all-cash deal, expected to close in the second quarter, will bring Aster Data’s well-regarded brand, exceptional team, growing product portfolio, and sophisticated intellectual property (IP) into Teradata. Mr. Tassos Argyros is a co-founder and serves as Chief Technology Officer at Aster Data Systems, Inc. Mr. Argyros served as Vice President of Engineering at Aster Data Systems, Inc. He was as Member of the Distributed Systems Group and investigated ex-treme-scale cluster architectures for fast, parallel data processing across large farms of commodity servers. Mr. Argyros investigated the network and software issues involved in the design and implementation of large-scale data clusters. Mr. Argyros Co-founded Aster Data Systems, Inc. He serves as a Director of Aster Data Systems, Inc. Before studying at Stanford, he conducted! research in data mining for temporal and web data-bases at the National Technical University of Athens.

LinkedIn ❚ 56% of LinkedIn’s users are outside of the United States❚ LinkedIn has more than 100 million users❚ The height of LinkedIn activity happens during the workday, peaking at around noon ❚ Mobile usage typically peaks around 20:00

Cat Cora

Ceo VIewPoInt on PeoPLe enGaGeMentIn January 2011, CEO Clubs Greece, in cooperation with Focus Bari SA, conducted the CEO Viewpoint on People Engagement survey, to monitor and evaluate where CEOs put the “people en-gagement” factor in their organization’s transformation equation. Some highlights of the survey:❚ Over 70% of the CEOs who participated in the survey claim that they

have in place their transformational strategy and execution plan, and that their employees are aligned with the company’s plan.

❚ For over 70% of the respondents, the key concern in translating transformational strategy into reality is maintaining the energy and involvement throughout the organization.

❚ Almost 100% of the respondents say the basic ingredient of their company’s winning strategy for the future will be to build a compelling shared vision. Surprisingly, becoming “glocal” ranks at the bottom of CEOs concerns (25.5%)

❚ The most critical steps CEOs have taken thus far toward align-ing people with transformational strategy are: building a shared vision and values (76.4%), focusing on developing their key peo-ple (48%) and adjusting their organizational structure (41.2%).

❚ Not surprisingly, the importance has risen over these volatile times for the leaders to be charged with conveying their company’s vision and serving as role models for engaging their people. 77.5% of the respondents cited as of top importance these leadership practices, alongside with exercising open and respectful communication.

❚ Almost 100% of the respondents say the basic ingredient of their company’s winning strategy for the future will be to build a compelling shared vision.

PwC 14th annuaL GLobaL Ceo SurVeyCEOs in Greece are extremely concerned about the immediate future but are more confident about their companies’ prospects for revenue growth in the next three years. This is one of the key findings of PwC’s 14th Annual Global CEO Survey. The Greek report was conducted by PwC in Greece for the first time and includes interviews of 33 CEOs representing market leaders in different sectors. 72% of Greek CEOs are not confident about the next 12 months, contrary to CEOs from Western Europe and globally whose con-fidence for future growth has returned to nearly pre-crisis levels. Greek CEOs remain cool, yet sceptical, and seem to regain their confidence for some future growth in the next three years. Most expect tax increases to slow domestic economic growth.Most CEOs in Greece (91%) said that they had implemented a cost-reduction initiative in the past 12 months and 76% of them are planning to do so within the next year. Headcount reductions have been implemented by 60% of the survey participants from Greece in the past 12 months, but in the next 12 months about half of them said that their headcount will remain the same. Nearly half of the survey participants (48%) said that they entered strategic alliances and mergers & acquisitions in the past 12 months, while more see opportunities and plan to do so in the near future. CEOs in Greece are willing to put more effort for improving national competitiveness and social well-being. But they also consider important to be reassured about financial sector stability and access to affordable capital.

MARCH-APRIL 2011 | BUSINESS PARTNERS | 19

wIne LabeLS—

Funky and FunctionalAmericans are adept, and often bold, at branding. A recent trend is to promote ideas, politics, or causes on wine labels. A pretty good idea, considering how central a spot a bottle of wine has on our dining tables and for how long we look at the label throughout a meal. On offer: Palin Syrah, table wine (literally), phonetic labels, Family Tree images and a Braille wine label.

Greek CEOs Probed

Automated External Defibrilla-tors (AEDs) are apparatuses that save lives in cases of car-diac arrest.AEDs are placed in public

places and can be operated by anyone with-out prior training, in order to save lives. In Greece, there has been a law covering the use of AEDs since 2007.

AEDs supply and electric shock to the heart of the patient, if needed, and help reestab-lish the normal heart beat.It is evident that the deployment of a large network of such apparatuses will contribute greatly to lowering the 10,000 deaths from cardiac arrest in Greece. Today’s sophisticated automated defibril-lators analyze the heart beat of the patient

and automatically decide whether an elec-tric shock is needed. Therefore, the operator of the AED need not take any decision that will place him under emotional pressure. In many countries, including the United States, Britain, France, Sweden, Denmark, Germany, Spain, and Italy, multiple net-works of AEDs have been deployed to pro-tect citizens at airports, corporate offices, shopping malls, stadiums, hotels, exhibi-tion centers, ports, bus stations, schools, courts, prisons, and factories.For the patient that has experienced a car-diac arrest, every minute counts for his or her survival. Thus, the speed at which we

respond to a cardiac arrest is absolutely vital, as responses after 3 minutes increase the likelihood of brain damage, even if the patient’s life is saved.Roughly 16%-20% of all cardiac arrests oc-cur at work and the average time of response by an ambulance is between 12-20 minutes. This is a slow response time considering the importance of such moments.

The statistics, wherever a network of AEDs has been deployed, are spectacular. O’ Hare airport in Chicago deployed AEDs in 2000. The survival rates, in instances of cardiac arrests, increased by 78% between 2000-2008, exhibiting the decisive positive effects of their deployment. The Municipality of Copenhagen, in 2010, purchased 130 AEDs and deployed them along the main streets of Copenhagen where, statistically, a frequent number of cardiac arrests occurred. In London’s Un-derground and at Kings Cross railway sta-tion an extended network of Powerheart G3 Auto AEDs are deployed to protect citi-zens and tourists alike. In Paris all corpo-rations have AEDs on every floor, and the Red Cross is summoned once per year to train personnel in first aid with the use of AEDs. In Munich all suburban railway sta-tions have Powerheart AEDs deployed to protect travelers.In Greece, some progressive corporations

have installed AEDs to protect their employees. A few municipalities have also purchased AEDs. A lot needs to be done, however, if we are to say that a shield of protection is offered in offices, factories, ports, bus stations, beaches, ho-tels, and shopping malls in Greece.

Corporate responsibility programs can certainly include Powerheart AED deploy-ment, offering the opportunity to protect people from cardiac arrest.At Cardiac Solutions, we strive to make it happen…because we care!�

BY aLexandroS LaMnIdIS MANAGING DIRECTOR AT CARDIAC SOLUTIONS IN GREECE


In ProfIle

Cardiac Solutions for Cardiac Arrest

Every year 1 million people lose their lives in Europe due to cardiac arrest. In Greece, 10, 000 such deaths occur.

http://www.cardiacsolutions.gr/

FOr thE PAtiEnt whO hAS ExPEriEnCED A CArDiAC ArrESt, EvEry minutE COuntS FOr SurvivAl

22 | BUSINESS PARTNERS | ΜΑRCH-APRIL 2011

Katerina Karella, President and Managing director of Pfizer Hellas, advocates a Holistic aPProacH to HealtHcare reforM, to ensure Patient access and quality HealtHcare for all. Mrs. Karella is also vice President of sfee, wHere sHe is cHair of tHe coMMittee on issues related to tHe Ministry of HealtH (MoH); is a MeMber of tHe bod of tHe cHaMber and cHair of tHe cHaMber’s PHarMa coMMittee; and is cHair of PHrMa lawg.

THe InTerVIeW

are sold outside our borders. On a second note, the current legislated criteria for the positive reimbursement list, which violate the current legislation, are exploitative and subjective. The State is attempting to implement a list focused only on financial criteria, ignor-ing the scientific evidence and the added value a medicine can offer. Product prices should be further reduced to lower levels that the current law dictates, in order to be included in the reimbursement. This may lead to the exclusion of a series of life saving medicines from the list which may again, lead to a decrease in access to patients who need them. Finally, another serious issue is the combination of a complex, unclear and con-stantly changing tax system, with increased or one-off extra taxes, which acts as an impediment to business planning and—as a result—could deter multina-tional companies from further investing in Greece.

would you say that, as an industry, you are supportive of the State’s at-tempts to reduce the healthcare spending?We agree that there is room for savings with regards to public spending in the health sector. However, we need to take a holistic approach to the overall health

Healthcare reform—A Holistic ApproAcH

what would you say are the three major issues that the Pharmaceutical Industry faces today?In an era of austerity, where the economic crisis and the subsequent recession adds pressure to the State to cut spending, the need to further develop a nurturing part-nership between the State and the Industry becomes all the more important.We are mindful of what the State does with the resourc-es it has but we feel there are a number of issues we, as an Industry face today. If I were to pinpoint three I’d have to say that:Looking at the data we have to date, one notices that we actually have very low medicine prices in Greece (due to the enlarged basket of 22 reference EU countries). Unfortunately, this can dramatically disrupt patient ac-cess and could discourage the introduction of new in-novative medicines. A side effect is product shortages due to incremental parallel trade, where our products

bill to ensure those savings are achieved in the most appropriate way and in a way that is least damaging to patients and industry. Many of the problems as-sociated with Greek healthcare are long-term and systemic. We also acknowledge that savings are possible from the medicines bill, where Greece spends more than its peers per head. To address this issue, however, we need to be clear on the causes of such expenditure. Since we already have some of the lowest prices in the European Union for medicines, studies show that our level of expenditure is primarily driven by the volume and mix of medicines that are prescribed. The consequences of this are serious. If Government policy focuses purely on price it will not help alter the longer direction of the Greek Pharmaceutical market. If anything, it may make matters worse. The Government is trying to make progress here. We are fully aligned and supportive of the government’s measures for controlling the prescription vol-ume in the Pharma sector, such as IT infrastructure in the HC sector and the e-prescribing. We strongly believe this will lead to the generation of transpar-ent, credible data and indexes. I also support the development of the thera-peutic and diagnostic protocols, which are based on transparent criteria and international scientific guidelines, which in turn will ensure the high quality of healthcare services and quick access of innovation to Greek patients.

Could you briefly describe the concept of a “holistic approach to healthcare”?A traditional holistic approach to health would encompass looking at the mind and body which are integrated and inseparable. The same applies when looking at healthcare systems and reform. Medicines account for around 20% of the total expenditure, while the other 80% is driven by the provision of services. If the Government is serious about

healthcare reform it should look at the whole system, not just phar-maceuticals. The healthcare system in our country is very complex. Public hospitals are not self-sufficient; they are not computerized and do not use even basic methods of accounting and financial manage-ment in order to be able to control their costs and the relationship between cost-benefit. There is a need for organization in the pri-mary care sector and there is also a gap in the operational interface with the secondary care sector. This has enormous implications since a well organized primary care system operates as a key serv-

ice provider and as an evaluator in the further use of the secondary care system. Through this, the unnecessary demand and use of services is reduced and hence the cost incurred by the insurance funds. In addition, a realistic implementation of the plan is vital in order to ensure that the system will work properly. There are alternative mechanisms to “trim” healthcare spending, without running the risk of limiting patient access to much needed medicines or deteriorating the quality of healthcare that pa-

ΜΑRCH-APRIL 2011 | BUSINESS PARTNERS | 23

New, improved medicines contribute every bit to improving healthcare, adding years to life and enhanced quality of life to these years

tients receive through the funds that they have and continue to pay for. I’m confident that the State can examine and use all these alternatives by viewing us, the pharmaceutical industry, as a valuable partner.

what do you feel the State could do differently today in order to adopt this “holistic approach”? The State, as mentioned previously, has begun a series of initiatives, which we are very supportive of, and in keeping up with the momentum, we could suggest a few initiatives, among others, that it could adopt in or-der to take this approach. Since 80% of the HC expenditure is allocated to HC services, the computerization of the healthcare system, the control of prescribed diagnostics screenings, op-erations and the connection with the patient’s medical history can all save resources while leaving room for innovation and improving the quality of Health. With regards to the tax issues mentioned earlier, the State could also look into adopting a view which it has repeatedly proclaimed and which we endorse. This would be the premise of a stable and clear tax envi-ronment, without obscurities and loopholes, which I believe would, in turn, promote entrepreneurship and competitiveness. Such a procedure would help in order to set the thresh-old that defines the lines between cost control, cost containment and the efficiency of the system; a balance that will lead to growth again, without putting patients and the quality of services at stake. A general proposal which I believe many would agree

THe InTerVIeW

Career Path: Katerina Karella began her career in the Phar-maceutical sector in 1980 as a Medical Representative at No-vartis. She joined Pfizer in 1990 in the marketing department as a Product Manager and later on as Marketing Manager. In 2001, she took on the responsibilities of one of the business units as

BU Director and in May 2005, accepted the position of Presi-dent and Managing Director of Pfizer Hellas, including Cyprus and Malta. That same year, she was elected to the BoD of SFEE (Hellenic Association of Phar-maceutical Companies) and was appointed Secretary General. Following the company’s re-

structuring in 2009 and the sub-sequent integration with Wyeth Hellas in 2010, she continues to hold her positions as President and Managing Director, while managing one of the company’s 4 business units, that of Primary Care. In 2009 she was re-elect-ed to BoD of SFEE and holds the position of VP for Issues related

to the MoH. In 2010 she was elected President of the Pharma Committee of AmCham and took on the temporary Chairmanship of the PhRMA lawg. educational background: Kat-erina holds a Chemistry Degree from the University of Patras and a certificate from INSEAD.

Bio Box


with would be to enhance the visibility about expected and actual achievements on the saving targets that have been set, or detailed plans on how new targets will be achieved, as well as the alignment of all State authorities with these tar-gets. This would allow us, the industry, to be part of a constructive and substan-tial dialogue, offering realistic and viable solutions both to the State and to the participating social organizations.

on a final note, is there something you feel is equally important, that the State and patients alike should be aware of which impacts healthcare?At this point in time, the government has an immediate need to reduce its spending on health, but at the same time, it has the need to offer Greek citizens quality HC services, and with regards to medicines, to provide access to new innovative therapies. In order to achieve this, there needs to be a long term strategic approach. Not all medicines are the same. They cannot all be treated in the same way. Our medicines allow people to live longer, happier lives.Our medicines give people freedom and independence.Consequently, our innovative medicines produce Health outcomes and contrib-ute to increased productivity, efficiencies, and add to the wealth of our society.If you look at historical data, and more specifically where we’ve come over the last century, you’ll notice that due to new medical technologies, research and develop-ment and other related factors, disease-related mortality rates have declined and life expectancy has continued to rise. New, improved medicines contribute every bit to improving healthcare, adding years to life and enhanced quality of life to these years. While, at the same time, they reduce the governments’ overall costs, such as hospital stays, cost for treating co morbidities, care givers costs, and others.The value of innovation in the pharmaceutical industry is critical, if we are expected to continue giving hope and changing health indicators from dec-ade to decade. The pharmaceutical industry is an ally in a shared effort with the Government with common goals, serving the vision of a healthier world.

discover america—California★

On the occasion of Greece’s entry into the Visa Waiver Program, the U.S. Commercial Service of the American Embassy in Athens is showcasing all 50 states and five territories in business Partners.

THE GOLDEN STATE

Land area 155,959.34 sq miles

PoPuLatIon 36,961,664

State CaPItaL Sacramento

LarGeSt CIty Los Angeles

LoCaL tIMe 10 hrs behind Greece

CLIMate Warm dry summers along the coast, hotter in the deserts and inland. Cooler along the north coast and the mountains. Winter snowfall on the inland mountains, whilst the south of the state remains warm and sunny.

natIonaL ParkS 8 national state parks (Yosemite, Redwood, Lassen Volcanic, Sequoia, Kings Canyon, Joshua Tree, Death Valley and Channel Islands) and 270 California state parks

For more information: California Travel and Tourism Commission Tel: 00 1 916 444 4429 E-mail: [email protected] Website: www.tourism.visitcalifornia.com

Gaining insight into the minds of the locals often helps visitors paint the clearest picture of what makes California truly special. For many, it’s the climate – tem-perate year round along the Ocean and in San Diego, dramatic in San Francisco and the North Coast and with snow guaranteed for up to six months of the year in Lake Tahoe and Mammoth. Or, maybe it’s the natural wonders – from

the desert oases of Palm Springs and barren Death Valley to the volcanoes in the Shasta Cascade and the waterfalls in Yosemite.While many come here to take time out, others find the urban Mecca’s of Los Angeles, San Francisco, San Diego and now Sacramento provide more than enough glamour, cui-sine and culture to satisfy the most demanding palate. And speaking of palates, the wine lands are never far away offering tastings from the most well-known names in Napa and Sonoma to a more personal experience tasting from the barrel whilst listening to the winemakers’ own story in the Gold Country or Central Coast. You are never far away from an icon – the Golden Gate Bridge, the Hollywood sign, or the redwood trees – and to really get to the heart of the Golden State just explore, discover and create your own story about what makes it special to you.

Golden Gate BridGe

TraVel USa


HealTHcare

tHe effective Provision of state services lies at tHe Heart of today’s debate on good governance. tHat is, services Must be effective for citizens—tHey Must Have value—and Must be cost-effective for tHe state—tHey Must be delivered witHin budget. tHis too, is tHe Key cHallenge in delivering HealtHcare services, a toPic discussed by tHe leaders in greece’s PHarMaceutical MarKet. MeMbers of tHe cHaMber’s PHarMaceutical coMMittee offer a wealtH of PersPectives on How HealtHcare in greece can, and sHould be, governed by value for tHe citizen and a rational state Policy.


the heaLthCare SySteM

Value in Policy Reform


We live in an era of economic crisis, but we are determined to overcome it with resolu-tion, determination and clear values. The pharmaceutical in-

dustry in Greece is strong. We have the strategic plan and the people to attain our goals despite the current economic crisis.

PhArmACEutiCAlS: A DynAmiC SECtOr in GrEECEThe pharmaceutical industry is one of Greece’s most dynamic sectors. The industry offers qual-ity employment to over 14,500 highly trained employees with an exceptionally high level of education, and invests heavily in research and development. Pharmaceutical manufacturing plants in Greece conform to the highest speci-fications and the medicines manufactured are exported to more than 100 countries. Local pro-duction of pharmaceuticals has increased 13.2% over the period 2000-2009. Therefore, we support the position that incentives must be provided for the reinforcement of local medicine production. Furthermore, we feel strongly that the pharma-ceutical industry must be included in the high-technology sectors, which receive significant and substantial support from the state.

BOlD invEStmEntSPharmaceutical enterprises have taken bold ini-tiatives. We make “better days” a reality with hard work, ethics and vision. We invest millions of euro each year in clinical research. Attracting ad-ditional investment in research, while introduc-ing new incentives, can only be of benefit to the national economy. The area of clinical research is of exceptional importance to the welfare state, and to the economy of the country in general. Clinical research creates and provides special-ized employment, while importing international know-how and incorporating it into the Greek development model.

rESPOnSiBility FOr PuBliC hEAlthAlongside their position as a technological and industrial force, the pharmaceutical enterprises support clear, contemporary and viable positions regarding the public healthcare system. We fully recognise our share of responsibility in having a sound Health System by promoting a clear set of value-based proposals. SFEE supports efforts which ensure direct access of patients to high-quality, safe and effective medicines. Only branded medicines – original or essentially similar - can guarantee therapeutic efficacy, safety and quality; and only under the exclusive supervision and re-sponsibility of the attending physician. Prescribing by brand name protects the reputation and author-ity of the Greek healthcare system and ensures that no counterfeit medicinal products can enter the legitimate Greek pharmaceutical supply chain.We have managed to implement one of the best protection systems against counterfeit medicinal products in Europe. The authenticity tag with the double barcode and the unique serial number on the packaging ensures that patients have access only to authentic and high-quality medicines. It is clear that when it comes to quality assurance and authenticity, Greece is a pioneer. To retain that leading position we need to safeguard what we have achieved so far and to remain at the fore-front in planning and supporting new initiatives.We are doing our best to ensure immediate access to high quality and safe medicines but we should also ensure adequate market supply. The meas-ures taken recently by the state to reduce public pharmaceutical expenditure by applying down-ward pressure on medicinal product prices have caused shortages in the market. This is a serious public health issue.

PriCE iS nOt thE SOlutiOnThe problem of shortages highlights the need for reviewing the current pricing policy. A viable alternative may be the introduction of an open,

We Will Make “Better Days” a Reality

dIonySIoS FILIotIS PRESIDENT OF SFEE

HealTHcare


free, and competitive pricing system in combi-nation with a discount (rebate) policy to social insurance funds. All these changes presuppose the implementation of a fully developed IT infra-structure system. The introduction of free pricing and rebate systems will secure an adequate sup-ply of medicinal products to the market by limit-ing parallel exports. It will also help to minimize the illegal circulation of authenticity tags, which are the basic component of reimbursement fraud (where the insurance funds pay for a medicine and the patient has not received the medicine).

mythS ShOulD EnDIn this time of crisis that Greece faces, myths can end up leading to disaster. After years of monitoring and studying the prescribing system and its correla-tion with pharmaceutical expenditure, SFEE argues that the implementation of the reimbursement list in the past has never yielded the anticipated re-sults. In fact, it has invariably led to an increase in pharmaceutical expenditure. The reimbursement list will, under no circumstances, reduce pharma-ceutical expenditure. On the contrary, it will cause confusion in the treatment of patients and delay their access to medicinal products. The exclusion of medicines has the opposite result, since it drives prescription toward other newer and more ex-pensive medicines, which results in an increase of pharmaceutical expenditure, as was the case when the list was implemented some years ago.The position of SFEE is that the reimbursement list should include all medicinal products, with the exception of those included in the list of non-reimbursed medicinal products (negative list) and the Over-the-Counter (OTC) medicinal products, in combination with diagnostic and therapeutic protocols and a 4% discount on the ex-factory price (rebate) from the pharmaceuti-cal companies to the insurance funds for these medicinal products. Clear diagnostic and thera-peutic protocols must be drawn up in line with objective evidence based scientific criteria.

SFEE has greatly contributed to the effort for cost containment across the health system. We strongly support the view that streamlining of IT infrastruc-ture is the only safe and effective practice to ration-alize health expenditure. The development and implementation of a contemporary system of com-puterization and control across the whole health system, in conjunction with the introduction of e-prescribing and electronic patient records, are ab-solute priorities that will bring multiple benefits.

Ethics—thE cEntEr OF SFEE’S viSiOnWe believe that all of the above, all of our beliefs and positions stated here, are incorporated in just one word: Ethics.Ethics is not just a matter of moral concept or ob-ligation. It is also a matter of intelligent practice that applies equally to enterprises, the govern-ment and society in general. SFEE has launched a number of bold initiatives, involving the adoption of a contemporary code of practice. Ethics lies at the very heart of the Association’s vision for public health, highlighting our consistent position that medicinal products are not mere commodities, they are the most sensitive of social goods. Our positions regarding the direct access of patients to all quality medicines and treatments, in the context of a contemporary health system and a flawless and well-controlled distribution network are based on a common commitment to self-reg-ulation through an explicit pledge to comply with the principles and rules of Ethics. I dare suggest that if “ethics is everything”, then the answer to the crisis can be found in the unambiguous faith that ethics-based actions and strategies will lead us to a bright, promising and “healthier” future.

Ethics-based actions and strategies will lead us to a bright, promising and “healthier” future


The socio-economic crisis in Greece has undoubtedly affected the National Healthcare System. Government and healthcare stakeholders acknowledge that immediate changes must be adopt-

ed to confront the unnecessary spending and mis-use of state funds. However, it is crucial, as already also underlined by Hellenic Association of Phar-maceutical companies (SfEE), that such reforms should be accomplished through constructive dialogue and productive collaboration between all stakeholders specialized in the healthcare sector. SfEE supports and embraces all measures that have been voted regarding rationalization of the healthcare system, but expresses serious reserva-tions for the implementation of misguided and ineffective policies. For example, the reintroduc-tion of the positive reimbursement list where original products and generics are clustered to-gether “punishes” innovation and disrupts pa-tient’s access to innovative treatments.

Unfortunately, although we are discussing for a new era in healthcare and although it is a unique chance for establishing a clear vision with funda-mental changes, the micromanagement philoso-phy still dominates and instead of addressing the issue of restricting non-pharma healthcare (HC) expenditure, which accounts of 80.8% of total HC costs or rationalizing pharmaceutical vol-ume growth (which counts 75% pharmaceutical expenditure), the main focus so far was on phar-maceutical pricing that counts 25% of the phar-maceutical expenditure. Such approach assists in rescuing the tree but fails in saving the forest. SfEE believes that the following measures already announced or are underway will deliver the tar-gets as set in the 2011 budget:❚ Introduction and implementation of an elec-

tronic prescribing system across all Social Secu-rity Funds (SSF’s) and the supply chain

❚ Introduction of negative list as almost 800 prod-ucts will not be reimbursed by SSF’s

❚ Implementation of the revised list of medicines for serious diseases (approx. for 150 pharma-ceuticals

❚ Re-pricing of all products and issuance of a cor-rected and reliable price bulletin based on the average of 3 lowest prices of 22 European coun-tries as stated by law (in other words, full imple-mentation of art. 14 of L. 3840/2010)

❚ Introduction and Implementation of OTC (Life-Style) products list.

❚ Establishment of therapeutic and diagnostic protocols

❚ Reduction of hospital budget by 20% and e-ten-dering for hospital supplies.

❚ Restructuring of hospital segment❚ Restructuring of primary care services especial-

ly in urban centers❚ Unification of services and benefits of the four

major SSFs❚ Reduction of wholesaler and pharmacist marginThese measures could offer to government far more savings than the original target for 2011, by

Latest Developments in the Healthcare Sector in Greece

HealTHcare

PaSCaL aPoStoLIdeS VICE PRESIDENT OF THE HELLENIC ASSOCIATION OF PHARMACEUTICAL COMPANIES (SFEE) AND PRESIDENT & MANAGING DIRECTOR (ABBOTT HELLAS)


speeding up the process of implementation and without implementing additional measures.Although the Government target of achieving pharmaceutical savings exceeding € 1.0 billion in 2011 is very ambitious and is unprecedented by any global standard so far, patient needs should be at the forefront while we strive to achieve the following objectives though constructive dia-logue with the Government:❚ Secure a stable and predictable pharma policy

environment.❚ Preserve patient access to innovative medicines

and optimal treatments upon availability.❚ Secure optimal reimbursement to ensure pre-

scription is based on transparent, objective and scientific criteria using cutting edge Health Technology Assessment (HTA), to the best in-terest of Public Health recognizing at the same time the value of innovative medicines

❚ Warrantee sustainable trading environment and sound management of the Health System’s Fi-nances.

❚ Secure proper pricing system for pharma prod-ucts through a free competitive price combined with a significant rebate to the SSF’s for phar-maceuticals consumed within the social secu-rity system.

❚ Promote the use of branded medicinal products (original or essentially similar) as it allows bet-ter traceability.

❚ Promote strict implementation of the Code of Ethics in order to strengthen trust between citizens, patients, Healthcare Professionals and pharmaceutical companies.

❚ Attract Research and Development projects and transform Greece to one of the best centers of clinical excellence in South Eastern Europe.

Pharmaceutical companies, having very clear sense of both the social and financial role they must play, are committed to remain in the forefront of every attempt to modernize and rationalize the health-care system by serving with the utmost respect the public interest and the patients’ needs.


Healthcare systems in Europe are subject to serious chang-es with numerous healthcare reforms and new laws be-ing proposed, voted for and

implemented in an effort to reduce healthcare spending. While reforms are leading to the establishment of re-striction mechanisms in the allocation of healthcare resources, restricted pa-tients’ access to the available and new treatments and increased patients out-of-pocket spending both for services and medicines, there is an increasing need for patient groups to be well informed in order to voice their concerns and formulate proposals that will ensure sustainability of healthcare systems and will secure patient access to optimal therapies. On the other side, healthcare stakeholders and governments, realize the importance of the views of patients and the need for those to be heard alongside with that of other stakeholders. At EU level, the European Patient Forum (EPF) participates in the Commission’s consultations and provides input on a regular basis on key patient issues. They are an active partner with the European Commission and European Parliament, as well as the Council through the successive EU Presidencies and work with the EMA and the EU Health Policy Forum providing guidance on a number of issues involving patients.Under the current Greek healthcare environment and healthcare reforms that are underway, we have seen a growing interest of patient groups in becoming more vocal and getting a deeper understanding of the proposed measures and their implications for patient access to healthcare services and therapies. Patients, or more accurately their representatives, must be at the heart of decision-making and should have all the information they need in order to be able to make choices and proposals on public health matters. They should play an active role and participate in discussions for appropriate policy choices concerning patients’ access, allocation of funding, evaluation of technology of new treatments. In that respect, national health authorities and government could consider establishing a dialogue with patient groups through consultation mechanisms with a view to understand their positions and listen to their proposals. Equally, we believe that there is a need to form an on-going two-way dialogue between patient representatives and the pharmaceutical industry, having full, frank and open discussions and information sharing regarding public health policies and horizontal issues that affect patients irrespective of specific disease areas.Finally, we believe that government, industry and patient groups share a common vision, that of rationalizing spending and ensuring sustainability of the healthcare system which sets a common ground for constructive dia-logue. In that respect, our commitment is to hear and understand patients’ positions as well as to strengthen dialogue for better healthcare policies that can secure sustainable solutions.

Lena LyberoPouLou DIRECTOR GOVERNMENT AFFAIRS AND PATIENT RELATIONS, GLAxOSMITHKLINE GREECE

Enhancing Patient Dialogue in the Current Healthcare Environment

Over the last cou-ple of months and amidst a deepen-ing financial cri-sis, governments

in Europe have been faced with unprecedented budgetary pressures. Healthcare expen-diture, which accounts for a significant portion of GDPs, has attracted much atten-tion from policy-makers and economists alike. In fact, from Germany to Spain and Ireland, governments have recently adopted measures to con-tain healthcare costs. In debt-ridden Greece, the financial challenges have also led to

a series of drastic measures that, unfortunately, only aim at short-term savings. During such trying times, however, it is more important than ever to focus on the long-term so-lution: create an efficient and affordable healthcare system by leveraging on prevention, intervention, and innovation. Today, Greece is experiencing two global trends that car-ry a considerable burden for healthcare systems across

countries and continents: the first is that the population is aging and the second is that the vast majority of illnesses are non-contagious, chronic ones. What’s very important, howev-er, is that such diseases—from obesity and heart disease to di-abetes and cancer—that affect a growing number of people and represent the main cost-driver of healthcare, mostly rely on modifiable risk factors and, subsequently, can often be prevented. So, the first step to managing healthcare costs is, undoubtedly, investing in pre-vention through education and disease awareness. The second pillar of a viable healthcare system is timely and appropriate intervention, which has two main components: early detection, through screen-ing programs and a highly-ef-fective family-doctor structure; and treatment as per the lat-est therapeutic and diagnostic guidelines to manage illness and slow progression. The latter can only be realized as long as doctors have the right of treat-ment choice and patients have the right of access to all avail-able therapeutic options. Policy initiatives that undermine the above will only be counterpro-ductive in terms of lost national incomes that are associated with suboptimal treatment and, therefore, reduced productiv-ity, progression of diseases, or even premature deaths. Last, innovation is a key pillar of an effective and affordable

healthcare system. Greece must, therefore, encourage pharmaceutical innovation through both macro-economic initiatives that foster R&D and a consistent approach to pric-ing and reimbursement that rewards innovative medicines. While the increased use of ge-nerics—where available and at decreased prices—is required to contain costs, policies such as the proposed reimburse-ment list will compromise innovation and only result in worse health and economic outcomes for patients and the society. Especially during today’s challenging times, the government ought to regard the research-based pharma industry, which has brought commitment to innovation, as a valuable solution partner to driving down overall health-care costs and work together towards an agreed consensus. To sum up, as Greece is navi-gating a path through difficult waters, we will be making a critical choice between foster-ing and attacking innovation. It is our obligation to think past short-term solutions and bud-getary cutbacks, reframe the debate over healthcare cost, and make the right choice. That is to say that investing in a sustainable and efficient healthcare system is invest-ing in people living longer, healthier and more productive lives. And, today more than ever, we cannot afford to get this wrong.

A Value Proposition for the Greek Healthcare System

Pheroze khan GENERAL MANAGER, BRISTOL-MYERS SqUIBB GREECE

Ιnnovation is a key pillar of an effective and affordable

healthcare system

HealTHcare


It would certainly be a truism to state that the Greek economy has long suffered from distortions and inefficiencies. Af-ter all, these eventually drove the explo-sive growth of our public debt, which is

clearly disproportionate to the size of our economy.All of us who have worked for years in the healthcare sector in Greece have been wit-nesses to such structural and systemic ineffi-ciencies. Depending on the business model, businesses have either unfairly suffered or inappropriately benefited from the poor management of resources in the broader healthcare sector. Ethical companies with healthy business models found themselves supplying life saving therapies to public hos-pitals without even being paid for the full value of these products and services. At the same time, the lack of basic controls in pre-scribing left the door wide open for exploita-tion. This situation had a share in rendering the system unsustainable. One expects that these well known systemic inefficiencies, combined with healthcare costs being in the forefront of public dia-logue, should lead to a number of simple, fair and straight forward measures which could quickly achieve material cost savings while at the same time improving the quality of health care. Implementation of electronic prescrib-ing controls is a good example in this direc-tion and a great opportunity for our healthcare system. The same stands for the rationaliza-tion of the overall hospital expenses and the obligation to operate within specified annual budgets. Hopefully, this will allow hospitals to improve their cash flow planning hence pay-ing suppliers within legitimate timelines. We hope to see these measures being swiftly im-plemented as they are critical for a successful reform of our healthcare system. However, past experience in Greece has shown that we are not always able to take the simple and most efficient way forward. If we are not focused, what could be a valu-able public dialogue may only succeed in yielding a plethora of complex ideas and

proposed measures with little practical value. In the ongoing healthcare reforms, the focus needs to be fixed upon a few key practical initiatives like the ones mentioned above so as not to compromise the overall effort of the government to achieve the end goal. Highly complex and controversial initiatives like the recently announced criteria for the positive reimbursement list could engage significant resources and effort which otherwise could be used more productively elsewhere.Unfortunately, in the current dialogue, we are already observing a tendency to cast doubt on our ability to succeed our cost saving goals without compromising quality. There seems to be an emerging defeatism accepting stag-nation or even deterioration of the healthcare service level as an inevitable side effect of the current economic crisis. The assumption that quality and innova-tion are costly in the short term and hence we cannot afford them during this crisis is not only simplistic but also dangerous for the economy. The truth is, in this crisis, we cannot afford to overpay for poor quality services or non-innovative products, including pharma-ceuticals. As a society, we cannot afford to pay for products and services which hardly make a difference to patients. That is why the announced introduction of the negative reimbursement list is a measure in the right direction. On the other hand, we need to start using our limited resources to improve disease prevention, early diagnosis and early treatment with life saving therapies. We need to prioritize funding for therapies which can provide real value to individual patients and, importantly, to our society.

For instance, the impact of innovative infec-tious disease therapies on patients and also on the economies of the countries involved, is as obvious as the importance of clean water for public health. For each hepatitis or HIV patient remaining undiagnosed or untreated, we need not only to consider the unneces-sary risk to the life of this individual but also to our society and our economy as a whole. These therapies are not just cost-effective; these are cost-saving or cost-averting treat-ments with striking impact on life-expectan-cy, individual productivity and public health. Allowing the current crisis to impact patient access to diagnosis and treatment of serious infectious diseases would inevitably lead to large social problems and high demand for hospitalization services hence an additional cost burden for the economy as a whole.In conclusion, this crisis is an opportunity to achieve better healthcare for less money. It is an unprecedented opportunity to take simple measures which will reward inno-vation and true clinical value while at the same time eradicate behaviors and prac-tices which have played a part in bringing our healthcare system and our economy as a whole to this critical state.

Cost-Saving Pharmaceutical Innovation: Averting Costs While Improving Public Healthcare


SteLIoS karaGIannoGLou GENERAL MANAGER, GILEAD SCIENCES HELLAS

The truth is, in this crisis, we cannot afford to overpay for poor quality services or non-innovative products

HealtHcare


For Greece to emerge from its current crisis we must solve the fiscal problems that face government finances. Cutting costs and increasing revenue are the first steps to putting government budg-

ets back on track, but for the Greek economy to recover and have sustainable success, we need eco-nomic growth and investment for the long term.There have been countless articles written on the problems facing the Greek economy, includ-ing unpredictability, bureaucracy, corruption, a hostile public environment, waste, and others. A reference point we may consider for assistance in

our approach is a very interesting article in the January-February issue of the Harvard Business Review—“Creating Shared Value.” Value is defined as benefit versus cost, not just benefit. Value has been recognized in business for a long time, and materializes as profit. But business rarely approaches societal issues from a value perspective; rather it treats them as periph-eral matters. Societal needs, however, not just conventional economic needs, define markets. Social harms can create internal costs for firms. Business needs to understand that decisions to improve short-

term bottom line can destroy local markets. So what is shared value?Shared value does not mean sharing the value cre-ated: redistribution. It is about expanding the to-tal pool of economic and social value. It does not mean paying a supplier more, it means working with the supplier to create environments and clus-ters that improve efficiency, invest in research and share knowledge to help suppliers reduce cost and improve quality so that everyone wins. It means investing in employee wellness programs to reduce sick days and healthcare costs while increasing productivity and employee morale. There are ways to implement shared value thinking in all areas of the Greek economy, not solely for businesses.Labor unions can take a shared value approach and change the mindset of viewing employee vs employer as a zero sum game. Many more em-ployee-centric approaches such as wellness pro-grams or continued education could spread, to the benefit of all.

Creating Shared Value

SpyroS FiliotiS VICe PResIdent & GeneRAL MAnAGeR, PHARMAseRVe - LILLy s.A.C.I.

Shared value is about expanding the total pool of economic and social value

The Greek healthcare system is overwhelmed by a lot of challenges as well as difficul-ties and it is evident that there is a major need for reform

measures applied with effective control mechanisms. Recent efforts made by the Greek gov-ernment to produce a rational framework on pharmaceutical policy included the re-pricing policy, the re-establishment of the reimbursement list, the expansion of the negative drug list, the e-prescribing system and policies increasing the market penetration of generics. the pharmaceutical industry acknowledges and supports the effort made by the Greek Ministry of Health & social solidarity towards the rationalisation of the healthcare system. However, some of the reform plans implemented had a great impact on the smooth market operation. the flat price reduc-tions announced, have caused considerable drug shortages, causing also a “domino” effect in the rest of europe since Greece is a reference country for pricing in several european countries. these reductions could also lead to the withdrawal of basic treatments and might even prevent the market-ing of new major innovative medicines in Greece. Furthermore, the drastic price reductions and the accumulated public hospital debts to pharma-ceutical companies render the Greek pharmaceutical market into a rather dissuasive environment for direct investments, rather than a competitive one. thus, the growth of an industry that employs nearly 15,000 people is challenged, whereas the stakeholders and especially the Greek patients are impaired, since it has become difficult for them to have access to many medicines either basic or new innovative ones.Practice has proved that an effective decrease in pharmaceutical expendi-ture cannot be achieved by simply lowering medicine prices, but through a consistent national pharmaceutical policy. the healthcare reform should be comprised of a set of measures that will not remain in the planning phase and will have a long-term perspective instead of a short-term fiscal nature. the approach has to be holistic. Most importantly, throughout the reform, the fact that the pharmaceutical industry is a viable and dynamic partner that offers medicines as a social commodity should be highly acknowledged.the companies in the pharmaceutical industry, as well as sanofi-aventis itself, adhere to their fundamental mission of ensuring access to essential medicines to the Greek patients, while medicine prices in Greece are ranked within the lowest through eU.Acting to the best interest of the Greek patients in sanofi-aventis, we con-tinue to invest in Research & development of innovative molecules. We are operating in a market as diverse as the patients themselves, adjusting to current and future challenges, transforming and developing, in order to achieve our goals and provide new therapeutic products that provide an-swers to unmet medical needs. It is up to the Government to consider in depth the real needs of the health-care sector in Greece and to explore the possibilities of a national pharma-ceutical policy that will offer and combine growth, transparency and social responsibility, with a long-term perspective, having the pharmaceutical companies as a partner.

dR. MarcoS GeraSSopouloS PResIdent & MAnAGInG dIReCtoR, sAnoFI-AVentIs GReeCe & CyPRUs

Healthcare Reform Should be “Win-Win”


Government has an important role to play as well. Our first step is to realize that the job of gov-ernment is to help society decide which organi-zation—or combination of organizations—can deliver the most impact for the least cost. Finding ways to boost productivity is equally important, whether in the service of commercial or societal objectives. Government regulation must also take a shared value approach. The right kind of government regulation can encourage companies to pur-sue shared value; the wrong kind works against shared value and even makes tradeoffs between economic and social goals inevitable.Regulations that enhance shared value set goals and stimulate innovation. They highlight a soci-etal objective and create a level playing field to encourage companies to invest in shared value rather than short-term profit. Government must cooperate with all stakeholders in creating these regulations. Good regulation fulfills some basic criteria.❚ Regulations must set clear, measurable goals.❚ Government must benchmark, measure, and

report results relentlessly.❚ Regulations must set performance standards

but must not prescribe methods for achieving these standards.

❚ Regulations must define phase-in periods that are ambitious but realistic, based on the life cy-cle of the products and businesses involved.

Bad regulation looks different: it forces compli-ance with specific practices rather than focusing on measurable social improvement. Bad regula-tion mandates a particular approach, blocking innovation and increasing costs.The current financial crisis has affected the whole world and there is an increasing understanding of the need for a type of shared value approach in order for society and the economy to recover. In Greece, the crisis has been especially severe, which provides an opportunity for Greek society to be the first to make the shift to a shared value mentality.

According to the Memorandum, the Greek state has a very ambitious target to achieve 2 billion euro cost savings by 2012 in pharmaceutical expenditure.

the only way to meet this stretched goal is the rationalization of the Health Care market. In order to have sustainable results, structural changes-such as e-prescription for social secu-rity Funds and Hospital-should be in place. Undoubtedly, the collaboration of all relevant parties is needed. All drug and health care stakeholders and suppliers should contribute to this shared objective of further reducing among other the Pharma spent, amidst a very difficult economic situation for our country. In 2010, the pharmaceutical industry contributed a great deal through price cuts but led on the one hand to a negative price spillover effecting other european and emerging countries and on the other hand to a surge of parallel exports.this event had also a negative impact on the pharmaceutical sector for employment rates, and on the economic development of the coun-try, which lost a lot of taxation. such disruptive ad hoc measures should be de-finitively avoided in the future.In addition, the state needs to fulfill its obliga-tions towards Pharma companies by regularly paying all hospital debts both for the public and IKA hospitals, where outstanding amounts have accumulated over the years.there is a myth that the vast majority of health-care costs are related to the pharmaceutical ex-penditures. We should bear in mind that Public Pharma expenses account for only 19% of the

total healthcare expenditure. this also applies to the hospital sector where the total pharma expenditure accounts for 13% of the total hospital costs. therefore, the 1+1 billion euro goal for 2011-2012, will be achieved through measures that won’t further address prices which are already at the lowest eU level, but will focus on volume control. such measures include the e-prescription application in all social security Funds and Hospitals aiming at a better monitor-ing of prescription and consumption habits. on the other hand, there are other supplemen-tary measures in the same direction, such as the negative list pertaining to non reimbursed drugs that is already in place, and the reduction in VAt that was recently implemented.Moreover in 2011 we‘ll benefit a six month carry over effect of the last year price cuts, and a recent-ly established rebate to be paid by the industry, wholesalers and pharmacists which will definitely contribute with additional savings to the system. We should never forget that patients are the cen-ter of everything we do in the Health Care system. this means that we should not restrict their ac-cess to innovative medicines and to novel thera-pies that also contribute to a reduction of other indirect healthcare costs such as hospitalization, treatment of concomitant diseases, and others.the social character of the government initiatives should be maintained, and all patient groups should be treated equally, especially those that they are in a very difficult position. For instance patients who suffer from rare diseases and are treated by orphan drugs deserve a more favorable status in the access and reimbursement of their treatments. the 3816 list which refers to treatments that are fully reimbursed for patients with serious diseases and reduced margins for all stakeholders is a brilliant example of how cost savings can be com-bined with a social patient centric aspect.In conclusion I would like to point out that the Pharma Industry, along with the Government and other HC stakeholders, will concentrate their efforts in order to achieve the IMF targets, rationalize the HC market but mostly ensure patients’ well being.

Rationalizing Health Care

KonStantinoS M. FrouziS VICe PResIdent noVARtIs HeLLAs & GeneRAL seCRetARy oF sFee

HealtHcare


There is a myth that the vast majority of healthcare costs are related to the

pharmaceutical expenditures

In Amgen, the largest biotechnology com-pany of the world, we focus on serving patients. We do that by pioneering new scientific pathways to find new treatments that treat serious diseases for which no or

not-effective treatment approaches exist. In our pursuit of life saving treatments we take into account the value impact of the thera-pies we offer. Even more, we are willing to collaborate with health care authorities in measuring the value of our treatments thus contributing to a more effective, responsive and sustainable health care system.Health care systems worldwide, and in our country especially, are facing the challenge of managing health care budgets while maintaining patient access to effective health care. In the Greek health care system, managing budgets is associated with achiev-ing a sustainable decreased level of health care expenditure in the coming years, while at the same time serving increasing pub-lic health care needs of an ageing and less wealthy population.To address these challenges the Greek health care system usually has employed administrative measures, like salary and total budget monitoring mechanisms, with special emphasis on price controls. In the future health care system should focus more on volume management and in adopting ef-fective public health approaches that reward evidence based health care and rational use of health care resources.To achieve sustainable economies and ra-tional health care provision one should focus on value rather than price. The price reflects how much, but the value shows what we get from, the money we spend. If focus lies only on costs short term budget savings may be achieved. Very soon though, in a matter of months, one realizes the need to pay even more to address issues raised from ineffective health care approaches.Better health is inherently cheaper than ill-ness, so the crucial question is to ensure that health care provided adds value to patients, the health care system and the society as a

whole. To assess the value of a therapeutic approach, factors, like the level of unmet medical need it addresses, as well as the outcomes and effectiveness of medical care delivery that result from its usage across the continuum of care, for the particular patient group, must be considered.An application of this principle would mean that financing treatment approaches in the hospital care setting should take into ac-count the following parameters.The “impact of the disease” that is the level of patient suffering, the cost of the disease in the health care system and in the society as a whole.The “effectiveness impact” of the therapeu-tic approach under evaluation, ideally in real life conditions, in terms of clinical ef-fectiveness, impact on disease prognosis, symptoms, quality of life, tolerability, con-venience, ease of adherence and compliance as well as other public health indicators.The “operational efficiency impact,” that is how the practical use therapy changes the management of patients and in this way how can improve the efficiency of the health care system for the hospital manager, the phy-sician, the nurse and the clinic as a whole. For example a treatment that requires less monitoring may free resources, as patients can be transferred to low intensity care units or even to primary care settings.The “risk impact” of the therapy, that is the safety implications of administering the therapy.Finally the “ total value impact” of the ther-apy is the combination of the factors men-tioned above. Once this evaluation is made, financing of the therapies with the higher value scores should be a priority for the sys-tem. Budgets should be appropriately for-mulated to finance these therapies as they can result in better health for the patients and finally in a more rational use of health care resources, which can be sustainable both in the short and long term. Thus the system should focus on measuring value rather than purchasing costs.

Focus on Value: An Essential Prerequisite for a Sustainable Health Care System

We are willing to collaborate with health care authorities in measuring the value of our treatments


evanGelia pateraKi CoUntRy dIReCtoR, AMGen HeLLAs

travel & tourism

No Borders—Educating cruisE industry ProfEssionals


It was very encouraging to read a press re-lease in Kathimereni’s February 5-6, 2011 English edition that reported the Mari-time Affairs Ministry’s optimism about the number of cruise ships seen dock-

ing at Piraeus! The Ministry’s optimism is based on an increase in programmed cruise ship arrivals this year (939 vessels against 883 in 2010), the general growing popu-larity of holiday cruises internationally; and the new law which allows cruise ships without a European Union flag to perform circular cruises with Piraeus as their start-ing point! Cruise operators including MSC, Carnival, Costa and Royal Caribbean have expressed an interest in including Greece in their schedules, according to the Minister of Maritime Affairs.Globally, Cruise Lines International Asso-ciation data suggests that the cruise indus-

try is hoping for 16 million passengers to embark on its ships in 2011, thus expecting an increase of 6.6 % on the last year. The optimism is shared amongst the leading representatives of other industries too, with the difference being the cruise industry placing its hopes on a fleet of new ships and masses of new customers. Europe, the Car-

ibbean and Alaska are the biggest markets at the moment, with emerging nations such as China and Russia providing not only pas-sengers but also venues and exciting places to visit for current cruise ship fans.According to Tourism-Review.com, cruise industry representatives hope that the new ships around the globe will tempt more

by Sybil HoFMann FiH PResIdent, ALPIne CenteR, tHe sWIss bUsIness sCHooL FoR HoteL & toURIsM MAnAGeMent edUCAtIon In GReeCe

With more and more ships taking to the Waters and more passengers interested in cruise ship holidays, the cruise industry is groWing and With it the need for qualified staff.

Alpine Center, the Swiss Business School for Hotel & Tourism Management Education in Greece, launches a new course in Cruise Ship Hotel Operations!


people on board. Walt Disney Co’s new cre-ation was launched in Florida just recently. The vessel is capable of holding up to 4,000 passengers and came at a cost of $900 mil-lion. The company is clearly expecting a re-turn on such a massive investment in the near future. Currently the world’s largest cruise vessel, the Royal Caribbean’s Oasis of the Sea, is capable of holding 6,000 passen-gers yet is not being used to its potential. In total, 2011 should see around half a dozen new ships on the water.The Niche Cruise Marketing Alliance re-cently announced that the number of beds available on cruise ships worldwide is stead-ily rising. In 2005, the figure was around 200,000, however, it is expected to reach a half-million by 2010. What does all this mean? That there will be more job openings and career opportuni-ties for young men and women interested in embarking on an exciting career that offers many benefits. With unemployment soaring in Greece, Alpine Center is launch-ing a new course to equip students with skills and knowledge needed to work on international cruise ships. Here’s what Ms Katy Taveira, the newly appointed course tutor at Alpine Center, had to say about her eight years of work experience with one of the leading cruise companies of the world.“Working onboard cruise ships has chal-lenged me in the best ways possible every-day and was the most rewarding experience of my life. You travel the world, meet the

most fascinating people from across the globe (crew and guests) and obtain price-less customer service and job training in your area of expertise. Working onboard a cruise ship will make you a stronger per-son and together with a great team behind you, will help make your guests’ vacation a dream come true. Promotions, training,

visiting exotic port of calls are all some of the benefits that you will encounter. I was offered a promotion and the position of Hotel Director in my eighth year of service, but that was when I had decided to leave the cruise ship industry and settle on land to start my family. I found that the expe-rience that I have obtained in working on cruise ships was priceless and allowed me to find a land-based job quite easily. I was one step ahead of all other candidates ap-plying for the same job. Working onboard a cruise ship is something I would highly and enthusiastically recommend to everyone!

Ah, and I did forget to mention that finan-cially this career is quite rewarding!”Ms Taveira assisted in the design of the 13-week course that will be launched at Alpine Center on April 18, 2011. Modules such as the cruise industry, cruise industry basics, safety and security, life on board, food and beverage operations, front office opera-

tions, customer service and excellent com-munication skills, and industry placement are included in the syllabus. Alpine works closely with international cruise ship com-panies through its partners GM&S and will assist students in finding appropriate in-dustry placements, which are an integral part of the course.

For more information on the Cruise ship Hotel operations contact Alpine’s Admissions office at [email protected] www.alpine.edu.gr

With unemployment soaring in Greece, the new course will equip students with skills and knowledge needed to work on international cruise ships

Business usa

Tax Aspects oF DoinG buSineSS in tHe uniteD StateS


In this overview, we start with the U.S.-Greece Income Tax Treaty, which sets out the special rules that apply to Greek individuals and businesses that conduct business in the United States. We shall

discuss (a) direct or indirect sales and (b) acquisition or start-up of a business. The United States has a federal system of government and the U.S.-Greece Tax Treaty applies only to taxes imposed by the nation-al government. State and local taxes must be considered separately. The U.S. tax system requires taxpayers to self-report, self-assess and pay their taxes using specified tax forms which are filed under penalties of perjury. Unlike Greece tax authorities, the U.S. Inter-

nal Revenue Service does not acknowledge receipt of tax returns or issue tax clearances or other receipts. However, all tax forms are subject to examination and audit. Thus, ac-curate compliance with U.S. tax law in the first instance has an important impact on the conduct and outcome of an IRS audit.

U.S.-Greece Income Tax TreaTy The Greece-U.S. Tax Treaty (the “Treaty”), which came into force in 1953, is the oldest bilateral U.S. tax treaty in force today. As a result, it contains some quirks, some favo-rable and others not, that no longer exist in treaties which the U.S. has with all other EU

countries. Nonetheless, the Treaty sets out the U.S. tax consequences of doing business in the U.S. Greek residents and companies organized in Greece are covered under the Treaty which exempts them from U.S. tax on their earnings and profits from a trade or busi-ness conducted in the U.S., unless that trade or business is conducted through a perma-nent establishment in the U.S. Permanent establishment, usually simply referred to as PE, is a critically important defined term common in all tax treaties. What business activity constitutes a PE var-ies from treaty to treaty. Existence (or not) of a PE sets the ground rules for taxation by the host country of the treaty partner’s nationals engaged in business there. Thus, a PE analysis under the Treaty determines whether and how the U.S. will tax a specific U.S. business activity of a Greek individual or company. For example, a U.S.-based agent can create a PE if that agent habitually exercises authority to conclude contracts on behalf of its Greek principal. In this case, the earnings and profits of the Greek prin-cipal attributable to the activities of its U.S. agent will be subject to taxation by the U.S.

by StepHen Flott stePHen FLott Is MAnAGInG PARtneR At FLott & Co. PC, bAsed In ARLInGton, VA

greek businesspeople should consider key elements of u.s. taxation as part of their overall evaluation of expanding to or investing in the united states.


SaleS InTo The U.S.The most common way of entering the U.S. market is through the sale of Greek prod-ucts. U.S. taxation of the income generated by these sales will depend upon how they are conducted. As stated earlier, using a sales agent who maintains a stock of goods and has the power to sell them to U.S. buy-ers on his own authority will create a PE for the Greek seller. Opening stores or sales of-fices in the U.S. will also create a PE. Direct sales via the Internet or by phone with direct delivery from Greece to the U.S. customer do not create a U.S. PE. These sales are free of U.S. tax. Use of a file server or Internet hosting service based in the U.S. for advertising, promotion and sales of products does not create a PE so long as the content and operation of the website itself is controlled from outside the U.S. Use of third-party U.S. distributors requires some care. Extensive involvement in and control of a distributor’s operations is likely to create a PE. The governing PE test looks to the economic and legal independence of the U.S. distributor. Lastly, using U.S. agents or distributors to sell goods on consign-ment will create a PE. The sale of software programs, video games, music and related products that can be delivered by means of the Internet create special situations. The Treaty ex-empts royalties paid to a Greek person or company from U.S. tax, for example, if the Greek person or company does not have a PE. Thus, structuring the sale of these kinds of products will affect how the in-come will be taxed. Creating a PE has U.S. tax consequences, but these need to be weighed against other factors and can be mitigated by adopting effective business structures. For example, it may make business sense to open a sales office or warehouse in the U.S. If that is the case, the U.S. source net income of the PE will be subject to U.S. tax. However, be-cause the Treaty does not contain a favora-ble dividend withholding rate, but also does not impose a branch profits tax, the use of a branch will avoid the 30% withholding on distribution of net profits to the Greek principals.

acqUISITIon/STarTUp of a US companyAcquisition of an existing U.S. based com-pany can be accomplished either by way of a stock or asset purchase. In a stock transac-tion the U.S. company becomes a subsidiary of the acquirer, which we will assume is a Greek company. The U.S. subsidiary will be subject to U.S. tax on its worldwide income and must withhold 30% of any dividend and interest payments made to its control-ling Greek shareholders. Gain from sale of the stock of the U.S. subsidiary is non-tax-able if the Greek parent does not have a PE in the U.S. As explained above, establishing a U.S. branch to purchase the assets of a U.S. company may be preferable to a stock pur-chase. Although U.S. source earnings and profits attributable to the branch are subject to U.S. tax at graduated rates, the transfer of the net profits from the U.S. branch to its Greek owners is not subject to the 30% dividend withholding tax. If U.S. real property is acquired as part of an acquisition or startup, sale of the property will be subject to the Foreign Investment in Real Property Tax Act (“FIRPTA”), which requires purchasers to withhold and pay to the IRS 10% of the property’s gross purchase price regardless of the actual tax due for the capital gains on the property. The FIRPTA tax can be refunded if it exceeds the tax shown to be due on the seller’s U.S. tax return.

STaTe TaxaTIon In addition to federal tax, each individual state may also impose tax on Greek indi-viduals and corporations having a sufficient connection or “nexus” with that state. What constitutes sufficient connection depends on the business activities carried out within a state. For example, if a Greek company has a U.S. place of business it will be subject to tax in the state where the business is lo-cated. It may also be subject to sales tax in other states in which it has a commissioned sales agent. Finally, although state tax is separate and independent from federal tax, most states honor federal income tax trea-ties. Some do not and these should be avoided if at all possible, at least for the es-tablishment of a PE. www.flottco.com

The U.S. tax system requires taxpayers to self-report, self-assess and pay their taxes using specified tax forms which are filed under penalties of perjury. Unlike in Greece, the U.S. Internal Revenue Service does not acknowledge receipt of tax returns

art supports education

Fulbright— art suPPorts Education


The Fulbright Program’s Art Sup-ports Education Initiative of-fers an outstanding way to help fund an educational exchange program that creates Greece’s

future leaders, in business, science, the arts, law and politics. Fulbright Alumni have do-nated their art work to raise funds for schol-arships and the 10 limited edition pieces are available for purchase, from 200 to 450 Euros, an outstanding valiue, through the Benaki Museum shops.

Companies and individuals have a superb opportunity to acquire contemporary art by renowned Greek artists at unprecedented prices—200 to 450 Euros—and at the same time support Greek students and scholars to participate in one of the finest educational programs in the world.

the Fulbright Program provides Greek students and scholars with an opportunity to ex-perience excellence in education at first-rate institutions in the United states.

ΕRIetA AttALInIGHtsCAPes+GLAssbUILdInGs | phoTogrAph, 40x20cm

VAnGeLIs PLIARIdestAPACtUAn | eAu ForTe, 71x100cm

www.benaki.gr | www.fulbright.gr


doRA eConoMoUUntItLed | mIxed medIA on pAper, 42x30cm

LAMbRos PAPAnIKoLAtosUntItLed | phoTogrAph, 30x42cm

sIA KyRIAKAKosGIRL FRoM tRIKALA |

mIxed medIA on FAbrIc, 29x59cm

ΖΑFos XAGoRARIssoUndsCAPe WItH FoGHoRn | sIlkscreen, 70x50cm

CostAs VARotsosdRoMeAs | sIlkscreen, 70x49cm

sotos ZACHARIAdIstHe InteLLeCtUAL |

mIxed medIA on pAper, 35x47cm

Zoe KeRAMeAFULbRIGHt FoUndAtIon |

hAnd - cuT pAper mAqueTTe For A logoType 27x27cm

tHeodoRos ZAFeIRoPoULosPLeAse PARtICIPAte Me (50 VAnessA bLACK.2009) |

uV prInT on mAnIpulATed AlumInIum surFAce, 40x60cm


Greece on the Web

Greek Web radio http://www.e-radio.gr/

Greek news Portals http://www.greektopsites.org/topsites/news/greeknews.htm

Greek mp3 Sites http://www.greektopsites.org/topsites/mp3/greekmp3.htm

Greek Weather ttp://www.greektopsites.org/topsites/weather/greekweather.htm

Greeks Worldwide http://www.greektopsites.org/topsites/worldwide/greekworldwide.htm

Greek Sports Sites http://www.greektopsites.org/topsites/sport/greeksport.htm

Greek Portals tp://www.greektopsites.org/topsites/por-tals/greekportals.htm

trends & trade maKers

WWW.e-Governance. not

Greece holds last place among the EU 27 in Internet access to public services, according to the results of the 9th report on the assess-ment of electronic governance in Europe, published by the European Commission.According to data for 2010, the availability of Internet public services is on average in the European Union 82%, while in Greece it stands at 48%.

The best performers in the EU are Austria, Ireland, Italy, Malta, Sweden and Portugal, with 100 percent access to public services through the Internet, and the worst perform-ers, following Greece, are Cyprus (55%), Romania (60%) and Slovakia (63%).

Greek corporate Governance code the Greek Corporate Governance Code, prepared by the Hellenic Federation of en-terprises (seV) for listed companies, is ready to be implemented. the code took into consideration Greek legislation and the country’s business environment and included issues that transcend existing laws and regulations. Furthermore, it can serve as a tool for listed companies currently in the process of complying with recently introduced Law no. 3873/2010.the code is posted on seV’s website www.sev.org.gr

Greece promoted at ULI ParIS conferenceDeputy Minister of Tourism and Culture George Nikitiadis presented the structural changes of the Greek economy during the annual conference of the Urban Land Institute in Paris. In his speech before 500 foreign institutional investors he offered them an ‘open invitation’ to exploit the opportunities Greece offers during this period. The ULI Greece & Cyprus team had a dynamic presence at the conference and placed Greece at the center of interest regarding planned marinas in Greece, in-frastructure projects, urban restructuring in Attica and the transformation of the country into an investment destination. Economic analysts, representatives of ma-jor companies and other market players stated that Europe still has a long way to recovery and is facing significant difficul-ties. On the contrary, according to the speakers’ estimates, America will exit the crisis much faster than Europe and will return to the pre-crisis growth rates after surpassing today’s economic difficulties.

SMe FundingThe European Investment Bank (EIB), in cooperation with Greece’s development and finance minis-tries, can lend around one billion Euros annually to SMEs in Greece in the next three years, according to EIB Vice President Plutarhos Sakellaris. Addressing a seminar on “Financ-ing Business Activity in the New Greek Economy,” he said that EIB, in cooperation with 10 Greek com-mercial banks, has offered funds

totaling 1.3 billion Euros to small enterprises in Greece since 2007, and more than 1,600 enterprises have been offered loans in the last two years. Mr. Sakellaris said the EIB has widened the range of enterprises eligible for funding, to include enterprises with a work-force of up to 3,000.He stressed that the Jeremie program, worth 250 million Euros for Greece, has al-ready signed a financing agreement with Alpha Bank and it is about to sign another with National Bank, worth 120 million Euros. The Jeremie program will offer more than 400 million Euros to small- and medium-size enterprises; the majority of this money within the year.


E.U.DIREC

Tnew StrateGy on raw MaterialSRaw materials are an essential part of both high tech products and every-day consum-er products. european industry needs fair access to raw materials both from within and outside the eU. For certain high tech metals, the eU has a high import dependency and access to these raw materials is getting increasingly difficult. Many resource-rich countries are applying protectionist measures that stop or slow down the export of raw materials to europe in order to help their downstream industries. Many european producers suffer from such practices. on top of this, some emerging countries are becoming very active in resource-rich countries, particularly in Africa, with the aim of securing a privileged access to raw materials. If europe does not act now, european in-dustry is put at a competitive disadvantage. In response to this challenge, the european Commission launched a new, integrated strategy which sets out targeted measures to secure and improve the access to raw materials for eU industry.

www.europa.eu

leading with an optimistic vision (part2)βυ GeorGia KartSaniS

MAsteR CoACH & Ceo, sARGIA PARtneRs

In the last issue we went through the first two key steps you can take towards leading with optimism: Building a compelling shared vision and practic-ing possibility thinking.

Remember: Optimism or pessimism is not about the reality of the situation—it is your conscious choice that has a huge impact on your ability to succeed.Additionally, research has confirmed that those who are able to find an optimistic outlook will not only be more successful, they will also live longer, be healthier and happier. Here are another two key steps for becom-ing more optimistic and energizing your organization:❚ Build personal mastery. This begins with

an honest assessment of your capabilities and a lifelong commitment to profes-sional development. Mastery will bring confidence and the capacity to succeed, creating more reason for optimism.

❚ Stay focused and track accomplishments. When there is a lot of information and distractions it is very important that you keep your eyes focused on the road ahead, on the things that you can do and control. Celebrating your victories along the way and knowing that although it may be a long road you will get to your destination in the end.

In other words change your focus and always remember Ambrose Redmoon’s famous quote:“Courage is not the absence of fear, but rather the judgment that something else is more important than fear.”

www.sargiapartners.com

buyinG Solar enerGy, not Solar panelSThe business model of providing services, not products, is changing the way many companies buy and sell. In the United States, SunEdison offers mid-size to large com-mercial customers the unique opportunity to roll out a national or global commercial solar energy program with predictable pricing and absolutely no capital outlay.As a commercial solar power customer of SunEdison, companies can host a com-mercial solar energy system while enjoying:• No upfront costs• Increased freedom from volatile fuel rates• Long-term predictably priced rates, equal to or lower than retail energy rates• Immediate energy savings• Fully managed services• Maximized use of solar investment credits and other solar incentives• Support for corporate messaging and sustainability initiativesSunEdison says it offers “commercial solar power services that remove the complexity and cost from the equation.” That’s because SunEdison’s customers purchase solar elec-tricity—not equipment—at prices equal to or lower than current retail energy rates.

WWW.

B2B

An EU Action Plan “Ageing Well in the Information Society,” is accompanied by a new joint European research program raising to over €1bn the research invest-ment on information and communications technologies (ICT) targeted at improving the life of older people at home, in the workplace and in society in general. These new EU initiatives promise a triple win for Europe: improved quality of life and social participation for older people in Europe, new business opportunities for Europe’s industries, and more efficient and more personalized health and social services.“These initiatives will mobilize digital technologies that will improve the daily lives and social participation of older people, and create new opportunities for Europe’s industry.” By 2020 25% of the EU’s population will be over 65. Spending on pensions, health and long-term care is expected to increase by 4-8% of GDP in

coming decades, with total expenditures tripling by 2050. However, older Europe-ans are also important consumers with a combined wealth of over €3000 billion. ICT will increasingly allow older people to stay active and productive for longer; to continue to engage in society with more accessible online services; and to enjoy a healthier and higher quality of life for longer. The majority of older people do not yet enjoy the benefits of the digital age—low cost communications and on-

line services that could support some of their real needs—since only 10% use the Internet. Severe vision, hearing or dexteri-ty problems, frustrate many older peoples’ efforts (21% of the over 50s) to engage in the information society. Between now and 2013, the EU and Mem-ber States, and the private sector will invest more than €1 billion in research and inno-vation for ageing well: some €600m in the ambient assisted living program, an expect-ed €400m in the EU’s latest research frame-work program and about €30m this year in the EU’s ICT Policy Support ProgramEurope itself could also become a lead mar-ket in ICT for “ageing well”; and as ageing is a global phenomenon, a strong industry in Europe would have opportunities world-wide. Research aimed at developing more practical and simpler appliances that are easier to understand and use has a much broader scope of application.


Info@amcham

Dining: For Business and Pleasure

DaioSala italiano

A little bit of Italy is now in thessaloniki. At the dAIos Food bar Restaurant, part of the dAIos Luxury Living Hotel, diners may enjoy the creations of il salumaio di Mon-tenapoleone, the gastronomic landmark of Milano. some of the menu highlights: shrimp croquettes with wasabi sauce and horse-radish; Asparagus rubbed with prosciutto with mayonnaise of orange; Variety of bruschetta; Cold cuts platter of smoked pork, salami from thasos, prosciutto from “salumaio di Montenapoleone;” Risotto with Porcini mushrooms; Farfalle with smoked salmon, lemon, caviar and cream;

Lamb shank marinated with soya and honey, with mashed carrots. the dessert card includes Crème βrûlée with prune,

orange and mint; chocolate pudding cake with vanilla ice cream; and bitter chocolate mousse in napoleon and Amaretto sauce. the dining room overlooks thessaloniki’s thermaikos Gulf and offers visitors a stun-ning view.dAIos is open daily from from 10:30 a.m. until 01:00 a.m. diners may enjoy coffee, snacks, lunch, and dinner. buon appetito.

Daios luxury living59 nikis Avenue546 22 thessalonikitel: +30 2310 250200www.daioshotels.com

Improving ageing

attentIon economyattention economy is a marketplace where consumers agree to receive services in ex-change for their attention.

chIck maGnetSlang for an object, such as a cute baby or dog, that a man uses to get women to ap-proach him.

coPyLefta play on the word “copyright” this is the practice of using copyright law to remove restrictions on distributing copies and ver-sions of a work.

d-commercea form of e-commerce (digital commerce) by companies that sell news, documents, subscriptions, or any other content that can be delivered digitally over the Web.

freemIUma business model in which some basic ser-vices and content are provided for free.

fUdGe factormargin of error.

GUrU SItea superuseful, link-heavy Web site that’s been put together by someone passionate about a particular topic.

mILkeran independent contractor or consultant who unnecessarily extends the duration of a project, only to get paid more money.

PremUmbLeopening comments by speakers before they begin their real presentations.

technoLoGy bUtLera hotel staffer who helps guests with soft-ware and hardware problems.

Reproduced by Permission © 1994-2010 netLingo® the Internet dictionary at http://www.netlingo.com

thinking in systems is a concise and cru-cial book offering insight for problem solv-ing on scales ranging from the personal to the global. this essential primer brings systems thinking out of the realm of com-puters and equations and into the tangible world, showing readers how to develop the systems-thinking skills that thought lead-ers across the globe consider critical for 21st-century life.some of the biggest problems facing the world—war, hunger, poverty, and envi-ronmental degradation—are essentially system failures. they cannot be solved by fixing one piece in isolation from the oth-ers, because even seemingly minor details have enormous power to undermine the best efforts of too-narrow thinking.

In a world growing ever more complicated, crowded, and interdependent, thinking in systems helps readers avoid confusion and helplessness, the first step toward finding proactive and effective solutions.

Thinking in Systems, a primer

by Donella MeaDowS, cHelSea Green


The Business Bookshelf

Jargonaut

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BUSINESS

peter Diamandis was inspired to apply the interdisciplinary, international and intercultural principles originally pioneered by the International Space Uni-

versity to the application of 21st century technologies and sciences to the grand chal-lenges of our time.

mISSIon Singularity University aims to assemble, educate and inspire a cadre of leaders who strive to understand and facilitate the development of exponentially advancing technologies and apply, focus and guide these tools to address humanity’s grand challenges.

VISIonA number of exponentially growing tech-nologies (biotechnology, supercomputing, nanotechnology, robotics, communica-tions technologies and more.) are giving tools for change around the world. These technologies and sciences build on each other: a medical advance may rely on su-percomputers, robotics, and sophisticated programs such as machine learning. Sin-gularity University is an academic institu-tion whose students and faculty will study these technologies, with an emphasis on their interactions.

The Ideal SU STUdenT❚ Students who are creative, intelligent and

driven-for-excellence from around the world

❚ Experts in one of the 10 track areas, and have a passion to learn about other tracks.

❚ Proven leaders and entrepreneurs. The next generation of CEOs, University Deans/Presidents and Government leaders.

❚ Internationalists: people who are bilingual or multilingual with a strong command of English (the language used to teach SU courses) and people who have traveled widely.

❚ Interested in understanding and address-ing the world’s grand challenges

WhaT doeS “SInGUlarITy” STand for?Singularity University derives its name from Dr. Ray Kurzweil’s book “The Singularity is Near.” The term “Singularity” has been used to refer to a future time of rapid and acceler-ating development of various sciences and technologies including biotechnology, nan-otechnology, artificial intelligence, robotics and genetics. One goal of Singularity Uni-versity is to show how these rapid develop-ments occur today, sometimes so common that we do not see them for what they are, as when a graphics card is faster than any su-percomputer of just a decade ago.

viewpoint

The concept of the Singularity University was proposed by Dr. Peter Diamandis to Dr. Ray Kurzweil and his colleagues Drs. Robert D. Richards and Michael Simpson in mid-2007. An exploratory meeting was held in November 2007, followed by a Founding Meeting in September 2008.

Singularity University

Source: http://singularityu.org

Dr. Peter DiamanDis Dr. ray Kurzweil

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Business Partners | Mar-Apr 2011

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Transcript of Business Partners | Mar-Apr 2011