Attractiveness of Greek pharmaceuticals market set to fall in 2010

The Greek pharmaceutical market is the largest in Central and Eastern Europe (CEE). After consecutive years of high level growth, levels of per-capita spending are now among the highest in the world. These figures make Greece attractive on face value and the market places first in the Business Monitor International anaylsts' Business Environment Ratings for first-quarter 2010 largely as a result. Despite this, Greece's attractiveness is set for a prompt downturn in 2010.

The publisher believes that the Greek election victory for the socialist PASOK party on October 4, 2009, marks a true opportunity to regain control of the state health care system, where years of poor management and outdated policies have led to high levels of spending and the accumulation of unmanageable debts. While the new ruling party will not implement an Obama-style complete overhaul to the health care system, early indications from the government suggest that modernizing the system could be a priority, with new Prime Minister George Papandreou accusing the previous government of neglect.

BMI believes that hospital debt reduction is an urgent and necessary objective for the government. While payments of already-accumulated debts will be good news for companies, implementing schemes for more efficient budget management in future are, in BMI's view, even more crucial to ensuring stability within the sector.