Bureaucracy, corruption and high taxation have kept investors away from Greece and undermined the country's competitiveness, according to a World Bank report.

And another report by the Organization for Economic Cooperation and Development (OECD) shows that foreign direct investment in Greece dropped 71 percent to 600 million U.S. dollars last year, from 2.1 billion dollars in 2004, taking Greece to last place among the 30 OECD member states, the English-language daily Kathimerini reported on Monday.

Greece is also next to last among the old 15 European Union (EU) members regarding competitiveness, with only Italy being worse.

Several factors, including high taxes and relatively high wages, have contributed to high business costs in Greece. However, most of the costs could be attributed to bureaucracy and corruption.

According to the World Bank report, 56 percent of the surveyed business people expect to pay a bribe to tax officials to expedite procedures or avoid a more thorough inspection of their books.

Trade unions have signed a collective agreement with the public service units earlier this year following several national strikes, under which there will be an 11.5-percent increase in salaries in the upcoming year.

Nikos Daskalaki, a lawyer for corporation services, told Xinhua that the salary increase, which means a higher labor cost, will undoubtedly hurt Greece's economic competitiveness.

The World Bank survey also shows that enterprises with a presence in Greece suffer more from cuts in electricity and water supplies, twice the average in OECD countries. They also spend twice as much as in other OECD countries on security measures.

Meanwhile, the difficulty in starting a business in Greece also hits investment. The Greek government hopes that the new investment law, approved by parliament last year, would attract more foreign investment.

However, business consultant Rena Kitsopanidou who took part in drafting the law told Xinhua that under the new investment law, foreigners from a non-EU country will have more difficulty getting a residence and work permit, some procedures will be simplified.

Source: Xinhua