3 Deforestation / Reforestation in Mediterranean Europe: The Case of Greece Olga G. Christopoulou University of Thessaly Greece 1. Introduction Forests perform multiple and interrelated social, economic and environmental functions and can be comprised among the ecosystems with the greatest biodiversity. The contribution of forests is multiple and renewable and, therefore, they constitute a most valuable natural resource. The benefits / values of forests can be divided into those of direct and indirect use. The first category includes the value of timber, which is used, on one hand, in shipbuilding and, on the other hand, in supporting a great chain of industries such as construction, furniture manufacture, printing and packaging. The forestry sector provides about 8% of the total manufacture added value. Forest feedstock, goods and services can also provide important background for the economic reinforcement and green development in the countryside. The primary wood industry offers sawn wood, fibreboard, particleboard, pulpwood, fuelwood as well as wood chips and bark for bioenergy, in fact it employs more than 2 million people and it often involves small or medium enterprises in rural areas (Confederation of European Forest Owners). Apart from wood, which constitutes the main forest product, forest ecosystems provide a range of products of economic value such as bark, resin, honey, small berries, aromatic leaves (laurel), mushrooms, medicinal herbs, game, forage material etc. The value of forest biodiversity can not be ignored. Forests serve not only as shelter of flora and fauna, but also as a valuable natural gene pool. The value of information deriving from forest biodiversity for pharmaceutical use is subject to ongoing scientific research. Recreational, aesthetic and health effects of forests can also be placed among their economic and socio-cultural values of immediate use. Forests, with their great surface, are the only part of every country that is free from pollution sources, while forest light, with its low intensity and high content in green radiation, has a soothing effect on the nervous system. For these reasons, forest-tourism, a specific form of tourism, is being developed which can be combined with walking tourism and ecotourism, and is a constantly developing category of mild and environmentally friendly tourism. Forests that are being managed for recreational purposes raise the value of neighbouring properties (Pearce 2001) and encourage tourism. Moreover, employment, particularly for populations who live near the forests and the exploitation of forest energy sources to produce soft forms of energy (biomass) can be added to the long list of benefits from forests.