MINDAUGAS KULBIS/THE ASSOCIATED PRESS
Theo Argitis, former Ottawa bureau chief at Bloomberg News and current managing director at Compass Rose Group, emphasizes the significance of Greek Prime Minister Kyriakos Mitsotakis' visit to Canada. Mitsotakis' trip marks the first visit by a Greek prime minister to Canada in four decades, underscoring the deep-rooted ties between the two nations.
Canada's increasing economic presence in Greece is a notable factor behind Mitsotakis' visit. Despite the prolonged absence of Greek prime ministerial visits, Canada has quietly emerged as a significant investor in Greece, contributing to the country's efforts to enhance its appeal as an investment destination. This burgeoning economic relationship sheds light on Canada's enduring influence in global economic affairs.
In recent years, Canada has become one of the world's leading creditor nations, bolstered by robust resource earnings and proactive foreign investments facilitated by the financial sector. The total value of Canadian-held assets abroad, including direct investment assets, has surged to over $9 trillion, tripling over the past decade. This substantial financial clout positions Canada as a key player in global investment dynamics, capable of exerting considerable influence on international economic matters.
Mitsotakis' visit coincides with notable Canadian investments in Greece. For instance, PSP Investments, a subsidiary of Canada's largest public sector worker pension fund, recently acquired an additional 10% stake in the Athens International Airport for approximately $430 million. This investment expanded PSP's ownership in the airport to over 50%, exemplifying Canada's growing presence in Greece's economic landscape.
Moreover, Fairfax Financial Holdings, a prominent Canadian investment firm led by renowned investor Prem Watsa, has maintained a significant presence in Greece for the past decade. With substantial investments in various sectors including banking, insurance, and real estate, Fairfax Financial Holdings has contributed to Canada's economic footprint in Greece.
Data from Enterprise Greece, an investment promotion agency, indicates that Canada's investment volume in Greece now rivals that of the United States and Italy. Mitsotakis' visit to Canada serves as an opportunity to further encourage Canadian investors to explore lucrative opportunities in Greece, reinforcing bilateral economic ties.
This demonstration of Canada's economic influence underscores the concept of "soft economic power," which has become increasingly relevant in the aftermath of global crises such as the 2008 financial downturn. While Canada's geopolitical influence may have diminished over time, its substantial overseas investments offer a platform to revitalize its role in global affairs.
Enhancing investment ties with Europe aligns with Canada's broader economic and political objectives, including supporting Ukraine and safeguarding Canadian resource exports from potential regulatory hurdles imposed by the European Union (EU). Strengthening economic relations fosters mutually beneficial economic cycles, solidifies political alliances, and cultivates goodwill that can be leveraged to advance national interests.
Greece's historical pursuit of economic integration with Western European nations underscores the strategic importance of economic diplomacy in safeguarding national security interests. As Greece prioritizes economic partnerships to bolster its security in the Mediterranean region, Mitsotakis' visit underscores the significance of economic diplomacy in shaping international relations.
In essence, Mitsotakis' visit to Canada underscores the enduring relevance of Canada's economic influence on the global stage. Through strategic investments and diplomatic engagements, Canada continues to wield significant soft power, reaffirming its position as a key player in shaping the international economic landscape.
