GREECE REPORT According to statistical data of 2001, the Greek flag fleet consists of 1529 vessels (above 100 gt) amounting to 28.678.240 gt. This fleet represents 38,10% of the European Community fleet and ranks fourth internationally. In parallel, Greek interests control 3,480 vessels of various categories i.e., 9,2% of the world's total number of vessels in service or 17,8% of the world fleet deadweight. As a result, the Greek owned ocean going fleet maintains its position on top in the world league. The above statistics are more impressive when seen against the negative international background following the 11th September terrorist attacks which drastically changed the political and economic climate worldwide. Domestically, the first encouraging step was taken by the Greek government towards restoring the competitiveness of the Greek register: namely, the long overdue measures concerning cuts in the rates of tonnage tax and reduced taxation of seafarers as well as the possibility for retirees to return to seagoing service. These measures express a wider vision and a renewed political will. It is hoped that they will be followed by a second set of measures in line with the relevant EU Guidelines on state aids to shipping (1997) and with similar measures adopted in most of the EU Member States. In addition, further measures and incentives will be required to attract manpower to the shipping industry and improve maritime education. The recruitment of Greek officers and attracting new entrepreneurs to the industry requires, inter alia, a change in the overall attitude of society vis-à-vis the shipping sector. In the year 2001 we witnessed the lowest turnout of attendees to the maritime academies, which is indicative of a problem of perception leading to the reluctance of youngsters to follow a shipping career. Changing this perception constitutes the industry's and the State's major challenge and will require a revitalising of the national maritime education system and of the chronically ailing National Seamen's Pension Fund (NAT). The Greek economy as a result of its membership of the Eurozone is no longer faced with the problems that arose in 2001 with regard to its national cur rency due to balance of payments crises. On the other hand, economic policy, having lost the tool of monetary intervention, must give a high priority to the international competitiveness of the real economy, taking into account also that the EU structural funds will cease to provide assistance to that end as from the end of the year 2006. It is in this respect that the Greek shipping industry's role in the Greek economy becomes even more crucial than in the recent past bridging the gap in the balance of trade and sustaining economic growth: It is noteworthy that in the year 2000 net foreign exchange receipts from shipping reached _4.18 billion representing 19% of the balance of trade deficit. Due to the recession of the world economy that percentage is expected to remain static in 2001. In June 2002, a study was published by the University of Piraeus on behalf of the UGS on 'the impact of the Greek owned ocean going shipping on the Greek economy". The findings of the study are impressive and prove once more that Greek shipping is an export industry playing a critical role in the development of the Greek economy not only through the systematic bridging of the balance of trade but also with the production of additional value added to all productive sectors as well as the generation of employment in ocean going vessels, shipping offices and the other branches of the economy ashore. Over the past three years, Greek shipping invested the equivalent of almost two annual Greek budgets in newbuildings, and each year Greek shipping earns the country an amount large enough to cover the national defence budget. Regarding the listing of companies operating oceangoing tonnage on the Athens Stock Exchange, recent changes in the law go some way towards meeting the proposals of the Greek shipping community. Nevertheless, several further clarifications will still be required to the law before such companies become interested in seeking a listing.