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At present, Greece is often overlooked by many across the globe, which could be a major mistake. Famous for its stunning islands, sun-drenched cities, and rich cultural legacy, Greece is quietly laying the foundation for an unexpected shift — a dynamic, modern tech economy.

While the world may turn a blind eye, genuine advancements are taking shape as illustrated by this editor’s observations in Athens. The nation that once faced economic challenges is not just rebranding itself as an “Innovation Nation.” It is turning effective marketing into reality through policy reforms, increased investor interest, and renewed emphasis on technology and entrepreneurship.

In a recent conversation on Thursday evening with Greek Prime Minister Kyriakos Mitsotakis, he conveyed to TechCrunch that Greece is not merely catching up; it is poised to impress. “There is ample opportunity for growth,” he stated, but “the stars are aligned.”

This transformation did not occur without dedicated effort. Mitsotakis highlighted that Greece made a conscious decision six years ago to broaden its economic base beyond traditional sectors like tourism and hospitality. “Tech could account for 10% of our economy. This is entirely within reach,” he stressed, underscoring the uptick in startup activity, rising investments, and a revitalized community of entrepreneurs and venture capitalists. Drawing from his own venture capital experience — having founded Greece’s first incubator in 2001 — he offered unique insights seldom expressed by government leaders.

Though Greece is relatively new to Europe’s tech landscape, this timing may actually benefit its rise. With limited resources for reckless investments, Greece has sidestepped some of the inflated valuations and failures that plague more established ecosystems. With a relatively fresh start, the country is quickly positioning itself at the forefront of emerging technologies — especially in artificial intelligence.

Thanks to AI, the Prime Minister envisions a chance for Greece to potentially advance rapidly. “We intend to leverage technology to leapfrog,” he declared. “Not just to catch up, but to actually surpass many European nations.” He pointed to Greece’s progress in digitizing public services, even surpassing Germany in some areas, and mentioned pilot projects, such as a Microsoft-supported AI system that reduced government contract review times from hours to mere minutes.

This dual strategy of fostering startups while modernizing governance reinforces Greece’s AI aspirations. Mitsotakis envisions Greece as a center for responsible innovation, especially in sectors like healthcare, civil safety, and defense. “We’re not just discussing what the startup ecosystem does. We are the clients of these technologies, aiming to adopt a more entrepreneurial mindset within the government.”

A crucial aspect of this transformation is talent. Greece is actively tackling the brain drain that saw skilled professionals leaving during the financial crisis. “We provide tax incentives — a 50% income tax reduction for seven years,” he noted. However, he acknowledged that “people won’t return just for tax benefits. They will come back for better job opportunities, fulfillment, and the chance to grow their businesses in Greece.”

In this context, we discussed recent changes to Greece’s “Golden Visa” program, which now allows residency permits to third-country nationals investing at least €250,000 in a Greek startup listed in the Greek National Startup Registry; we also talked about two new initiatives launched last year aimed at attracting skilled foreign workers and entrepreneurs. While these measures are still being fine-tuned, they represent a broader commitment to openness. “We are competing on a global scale for talent,” Mitsotakis affirmed. “We need to simplify processes for Greek talent to return and for remote workers to choose Greece.”

Mitsotakis also stressed the importance of spreading tech influence beyond Athens, with new hubs emerging in Thessaloniki, Heraklion, and various university towns. “This narrative should also include regional development.”

Nonetheless, the Prime Minister admitted there are still challenges, including the pace of legal reforms, the need for increased late-stage funding, and the complexities of navigating the European market. However, he is optimistic that Greece now offers, unlike in the past, predictability, stability, and momentum. “Is this country moving in the right direction?” he asked rhetorically. “The answer is yes.”

For Mitsotakis, the ultimate goal is to ensure Greece’s advancements are “irreversible.” Although leaving a legacy isn’t his primary aim, both he and the approximately 300 investors and founders at our discussion — many of whom have joyfully returned to Greece from the Bay Area, London, and beyond — are clearly invested in securing the nation’s ongoing progress.

“We can’t [perform] miracles,” Mitsotakis remarked. “We can’t make up for lost time in just a few years. Nevertheless, I believe we’ve broken free from the damaging cycle of the past, and I see technology as a tremendous opportunity for both the private sector and the government.”

You can view our complete interview with Mitsotakis below.