Interview of Greece’s Ambassador Gabriel Coptsidis at “The Warsaw Voice”

As Appealing as Always

Greece’s Ambassador to Poland, Gabriel Coptsidis, talks to Ewa Hancock. (magazine April 2011)

What steps has Greece taken to extricate itself from the financial crisis?
The Greek government has so far managed to successfully complete a series of reforms in crucial sectors. It has radically limited the operational costs of the public sector and fully reformed the pension and labor market systems as well as the local government structure. Greece continues to press ahead with the necessary structural reforms aimed at promoting growth. In this area, steps have been taken to further reduce counterproductive public expenditure, increase competitiveness, remove bureaucratic obstacles from the investment procedure, introduce a new institutional framework for the promotion of exports, and make an organized effort to evaluate public property.
Let me please underline at this point that the European Council of euro-area member states on March 11—which the Polish Prime Minister, Donald Tusk, also attended—decided to reduce the interest rate on the loan for Greece by 1 percent and to prolong the loan repayment. These two factors are strong and vivid proof that our partners in the EU recognize the huge effort, the significant progress and sacrifices made so far by the Greek people.
Will the situation in Greece affect Greek investors in Poland?
We don’t expect that the current situation will negatively affect economic relations between the two countries. On the contrary, we believe that new opportunities have been created. Besides, Poland’s sustainable development, with its solid economic foundations, favorable location in the center of Europe, 38-million-strong consumer market and well-educated work force, makes the country an attractive place for investment and business expansion. On the other hand, Greek companies that are active in the countries of Southeast Europe in almost every sector of the economy—including information technology and telecommunications, the finance sector, the food and beverage sector, the energy and petroleum sector, building and packaging materials, construction and real estate—are also active on the Polish market.
When it comes to Greek investment in Poland, about 40 companies with Greek capital are currently active on the Polish market. Greek-owned companies have invested more than 1.4 billion euros and created a total of 11,000 jobs in Poland. Greek-owned companies have developed their business in various sectors of the economy. For instance, Germanos/Play is active in telecommunications, Polbank in the banking sector, Coca Cola/Hellenic Bottling Company in beverages, J&P Avax and Alfa Grisin in construction, Terna Energy in renewable energy, Chipita in food, and Totolotek in gaming.

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Deficit down by 46%

According to the preliminary data available for the state budget implementation for the first six months of 2010, on a fiscal basis the deficit presented a 46% year-on-year decline against a targeted 39.5% in the government’s economic policy programme.

The fiscal result of the first six months of 2010 is due to both restriction of expenditures and revenue increases. Nevertheless, these do not yet fully reflect all fiscal measures included in the government’s programme for 2010.

Furthermore, ordinary budget expenditures declined by 12.8% year-on-year against a targeted 5.5% reduction and primary expenditures decreased by 12.7% against a targeted 5.4% annual decrease.

Hellenic Stability & Growth Newsletter: June 2010

(GREEK NEWS AGENDA)

PM George Papandreou at the White House

Meeting with Obama

Prime Minister George Papandreou met with US President Barack Obama in Washington yesterday.
After the meeting Papandreou said that the US is willing to work with the European Union to regulate the international financial system so speculators cannot target countries with troubled economies.
The premier said  that the issue of speculation will be discussed at the G20 summit in Canada, in June. The two leaders also discussed foreign policy issues such as the Cyprus issue, the integration of Western Balkans into Euro-Atlantic institutions, as well as Greece’s relations with Turkey.

Visa Waiver

Furthermore, the US side announced that Greece will be included in the ‘visa waiver’ programme, thus enabling Greek citizens to travel to the US without a visa.
Papandreou termed the visa waiver “a vote of confidence” to Greece and noted that the Greek government is determined to respond to its obligations and cooperate closely at international level on the tackling of terrorism.

Kathimerini daily: US joins fight against speculators
The White House: Honouring Greek Independence Day (21.35mins)

Papandreou’s Op-ed

In an op-ed published in the International Herald Tribune (IHT), Papandreou notes that the Greek case is not an outlier, but one more flare-up in a broken system of financial regulation and predatory behaviour.
“If global economic growth is to be sustainable, we need better coordination and greater solidarity between nations… We must now establish and enforce clear rules to contain the inordinate power of markets over our national economies and our common currency – not for Greece’s sake, but for Europe’s,” he stresses.
Prime Minister’s website: Meeting with President Barack Obama: Prime Minister’s statement ; Brookings Institution: Prime Minister’s speech & YouTube: PM’s speech at Brookings Institution  
New York Times & International Herald Tribune: Prime Minister’s article “Greece is not an island“; Hellenic Finance Ministry: Newsletter Updating Greek Fiscal Measures  
(GREEK NEWS AGENDA)

Papandreou at Conference on Progressive Governance in London

(GREEK NEWS AGENDA) Prime Minister George Papandreou arrived in London yesterday and will be participating today at a Conference on Progressive Governance, on “Jobs, industry and opportunity: growth strategies after the crisis.”
The premier will speak at a panel on the theme “Europe after the global crisis: A strategic role for government,” together with his British counterpart Gordon Brown, Spanish Prime Minister Jose Luis Rodriguez Zapatero and Norwegian Prime Minister Jens Stoltenberg. 
While in London, Papandreou will attend a working luncheon with the British Prime Minister Gordon Brown and will meet with British Foreign Minister David Miliband.

PM Papandreou meeting with French President Sarkozy

(GREEK NEWS AGENDA) Prime Minister George Papandreou flew to France yesterday, for talks with French President Nicolas Sarkozy – on an array of issues, focused mostly on economic matters – ahead of today’s European Council meeting.
After his meeting with the French president, Papandreou stated that the Greek government is committed to taking all necessary measures to fix Greece’s public finances.
 “We are ready to take any measures in order to cut public deficit to 8.7% of GDP in 2010 from 12.7% in 2009 and to meet the commitments the government has undertaken in its Stability and Growth Programme.”
Besides the pressing deficit and credit crisis burdening Greece, Papandreou said issues dealing with the Balkans, the Cyprus problem, climate change and even Europe’s position on the international stage were discussed.
Kathimerini daily: Premier talks tough but EU may offer help; Youtube.com: Greek prime minister in France for debt talks

Tax and spending policy

PM: Tackling Economic Woes

(GREEK NEWS AGENDA) Prime Minister George Papandreou chaired a Cabinet meeting that discussed the draft tax bill and public-sector incomes policy.
He said that the government’s efforts to tackle the country’s economic problems will focus on three axes: reducing public debt, promoting growth, and accelerating legislative and institutional measures.
Papandreou stressed that the government’s primary duty was to save the economy, striving for fair solutions that would protect the lower and middle classes as much as possible.

FinMin: New Tax Rates

A range of public spending cuts and tax adjustments were presented by the government yesterday, following an announcement last week by the premier that drastic measures would be taken to prevent Greece from defaulting.
Finance Minister George Papaconstantinou unveiled more specific policies, which included plans to cut the salaries of the premier and his ministers, a moratorium on hiring in the public sector this year – excluding however health services –  as well as changes to the tax system, which will now contain more tax brackets and will lead to higher earners paying more.

PM George Papandreou at the World Economic Forum

(GREEK NEWS AGENDA) Speaking as part of a panel – that also included Spanish Prime Minister Jose Luis Zapatero and European Central Bank President Jean-Claude Trichet – at the annual World Economic Forum taking place in Davos, Switzerland (January 27 -31), Prime Minister George Papandreou said that Greece would not leave the euro area and would use the discipline of membership to slash its budget deficit and make long-delayed structural economic reforms. “The answer is very simple. We went [to the market] for borrowing two days ago and we were five times oversubscribed. We’re not looking for money from anywhere else…” said Papandreou. He outlined an ambitious goal to reduce the deficit by four points this year and bring it below 3% by 2012, through measures taken as part of Greece’s Stability and Growth Programme (SGP).  The premier held a meeting with EU Economic and Monetary Affairs Commissioner Joaquin Almunia yesterday, and the discussion focused on Greece’s SGP in light of the report that the European Commission will be submitting on February 3, on Greece.  European Commission President Jose Manuel Barroso – speaking in Brussels on Thursday – stressed the need for the greater coordination of economic policies in the EU, emphasising that economic policies are not only a national issue, but European as well. Referring to Greece specifically, he expressed the conviction that the Greek government must be supported in its effort to fulfil its commitments in the framework of the SGP.  See world reports – BBC.co.uk: Davos 2010: Greece denies a bail-out is needed; Reuters.com: Greece says being targeted as euro zone “weak link”

Economist Joseph Stiglitz to visit Athens

(GREEK NEWS AGENDA) Economist and Nobel laureate Joseph Stiglitz is invited to participate at an open debate, titled “Discussion and debate with Joseph Stiglitz: in or out of the economic crisis?,” organized by the Economist and Hazlis & Rivas conferences, on February 2. 
Prime Minister George Papandreou will inaugurate the conference with an opening address, focusing on the government’s effort to fulfil the twin aim of monetary restructuring and growth.
Ministers, the leader of the opposition New Democracy party, Antonis Samaras as well as representatives of business associations will also participate at the conference.
Meanwhile, Stiglitz has contributed an article (January 25) in the ‘Comment is Free’ section of The Guardian, under the title “A principled Europe would not leave Greece to bleed,” urging Europe to show support for the honesty and integrity of Greece’s government and its efforts not only to bring the budget under control, but to increase transparency of the entire budgetary framework and to reduce corruption.

The Stability Programme was submitted

(GREEK NEWS AGENDA) The cabinet met yesterday  to approve the updated Stability and Growth Programme (SGP) 2008-2011, which was submitted today (15.1) to the European Commission in Brussels.

“We will achieve fiscal consolidation within three years. […] We can do it; this target is feasible,” said Prime Minister George Papandreou.
The premier added that the Stability and Growth Programme does not contain immediate fiscal adjustment measures only, but also a substantial part of the plan for the restructuring of the country.
On his part, Finance Minister George Papaconstantinou stressed that the deficit would definitely be cut, as Greece’s economy is expected to expand in the coming next years.
“The Programme was prepared with the decisive involvement of all ministries and it will be implemented through team-work,” said Papaconstantinou.
Kathimerini Daily: Cabinet stands by recovery plan; Ministry of Economy and Finance: Update of the Hellenic Stability and Growth Programme 2008-2011

PM George Papandreou: Economic crisis “a crucial national threat”

 

 (GREEK NEWS AGENDA)   Prime Minister George Papandreou, addressing a cabinet meeting on Sunday, termed the economic and monetary crisis “a crucial national threat”.    Papandreou, however, expressed optimism over the favourable outcome of the struggle being waged by the government, calling on all Greeks and the mass media in particular to say “no to panic .”
The major changes that have been scheduled for 2010, which he termed a year of great changes and reforms, must be turned into practice as a precondition for this.
The prime minister made a positive assessment of the first 100 days of the country’s governance which, as he said, “we assumed in a deep and multifaceted crisis with a large size debt and deficits that were bequeathed to us by the previous government.”
He added that the economy alone was not at the root of problems, but the country’s way of governance as well.
Papandreou further said that during the first 100 days the “government stood at the level of its historical responsibility which is to have the citizen as its first concern,” adding that apart from changes in regional administration, great reforms and changes are also required in central administration.
He stressed that the changes will meet with great resistances but expressed certainty that they will have the approval of the Greek people.
Papandreou said that at the end of the coming week the stability and growth programme will be announced, as well as the proposals for government and legislative work that will be following in the near future.
He said he would be giving a press conference at the Zappion Mansion in the middle of the week and would be announcing the main conclusions on governance so far and priorities for the coming period, while calling on ministers to do the same in their field of responsibility.
 The prime minister also announced the creation of a “prestigious advisory committee” on the modernisation and operation of the government and institutional bodies with the principle “the citizen first” always being the target.
He stressed that the new architecture of self administration is part of the government’s overall planning so that on November 14, 2010, local administration elections will be held for the new strong municipalities and the regions.
Papandreou added that the “implementation of the great vision of the world of local administration will begin,” terming this task extremely difficult and for which the consent of all is required and that the government shall seek.
He further pointed out that resources for local administration will be secured in the framework of taxation policy and added that with the electoral law which will be voted in Parliament “a decisive blow will be dealt at black political money”.
Papandreou also referred to the government’s struggle for transparency and expressed satisfaction for the positive response met by his initiative to request from the President of the Republic to convene a meeting of party leaders.
Lastly, the prime minister also referred to the bomb attack that occurred in front of the Parliament building on Saturday, stressing that “no one and with no action can intimidate the country’s political world” and underlined that “we are not going to let such an action pass like this.”

Greece in ECOFIN: Adding Numbers Up

(GREEK NEWS AGENDA)   Minister of Finance George Papaconstantinou participated at the European Council Economic and Financial Affairs meeting in Luxemburg (October 19-20).  The minister acknowledged that the budget deficit for 2009 will creep up to 12.5% of GDP, a figure which has been also confirmed by the Bank of Greece.  One third of this significant increase can be attributed to the economic crisis – GDP contracted by 1.5%, investment dropped by 20%, tourism by 15% and shipping revenue by 20%.  The rest can be equally attributed to expenditure excesses, as well as the revision of the way by which the deficit is measured.  Papaconstantinou is ready to negotiate a three-year extension for deficit curbing with the possibility of a further one-year extension.  “The first step is to decrease the deficit to a single digit figure” for 2010, said the minister. The government has pledged to present the Commission with a revised three-year Stability and Growth Programme (2008-2011).Thirteen out of sixteen countries of the eurozone will be put under EU deficit supervision. The European Commission estimates that public finances for all eurozone members will begin to recover by 2011 at the latest.  European Commission: Driving the European Recovery 

Greek Economy Grew in 2008

(THE GREEK NEWS AGENDA)  The Greek economy grew by 3.0% in 2008, down from 4.0% in 2007, according to provisional figures published by the National Statistics Service on Friday (13.2.2009). In its report, the statistics service said that the economic growth rate in the fourth quarter of 2008 was 2.6%, down from 2.9% in the previous quarter, while on a quarterly base, the economic growth rate in the October-December period was 0.3%, slightly lower than 0.5% in the third quarter. The statistical service attributed the slowdown in the growth rate to a significant decline in investments, mainly because of a major decrease in building activity in the country, while consumption fell strongly as a result of limited credit expansion to households. The finance ministry, in an updated Stability and Growth programme [PDF] submitted to the European Union, envisages a growth rate of National Statistics Service1.1% this year. Furthermore, the European agency Eurostat also said on Friday that the Greek economy grew by 2.6% in the fourth quarter of 2008. It reported that Greece, Slovakia (2.7 pct), Czech Republic (1.0 pct) and Austria (0.5 pct) were the only EU member-states with positive growth rates.  Eurostat: News Release – Euroindicators  (13.2.2009)

Greece: Updated Stability & Growth Programme

(GREEK NEWS AGENDA)  Prime Minister Kostas Karamanlis chaired a meeting on Friday (30.1) of the Inter-Ministerial Committee on the Economy, which discussed the updated three-year stability programme that was later submitted to the EU. Presenting the updated Stability and Growth programme for the period 2008-2011, Economy and Finance minister Yiannis Papathanassiou stressed that Greece is expected to be one of the five eurozone member-states to achieve positive economic growth rates in 2009. According to the programme, the fiscal deficit would be 3.7% in 2008 and 2009, falling to 3.2% in 2010 and 2.6% in 2011. The economy is expected to grow by 1.1% this year, 1.6% in 2010, reaching 2.3% in 2011, while employment is expected to grow by 0.2% this year and by 0.6% and 0.7% in 2010 and 2011, respectively. Unemployment is expected to grow from 7.5% in 2008 to 8.0% this year and to remain at this level until 2011, before beginning to fall. Ministry of Economy and Finance: Updated Stability and Growth Programme for 2008-11 (in Greek) & Fact Sheets

Greece: Stable Outlook for the Economy

(GREEK NEWS AGENDA)  Recently appointed Economy and Finance Minister Yiannis Papathanassiou on Wednesday defended the government’s economic policy, saying it remained committed to reducing the budget deficit to below 3%, but not at the expense of social cohesion in the country. Commenting on a decision by Standard & Poor’s rating agency to downgrade Greece’s credit rating to A-/A-2 with a stable outlook from A-/A-1, the minister said: “The main reason why Standard & Poor’s downgraded the country is that Greece faces an international financial crisis with high public debt and fiscal deficit. I would like to note, however, that the public debt has fallen to 93% of GDP, down from 100% in 2004, and that the fiscal deficit has been cut significantly from 7.5% of GDP in 2004.  He added that the deficit remains at high levels because of the government’s decision to place the real economy as a top priority, but that it is to the country’s benefit to gradually cut the deficit below 3.0%. “And this will happen with a plan without leaving behind the need for social cohesion. That’s exactly what we will seek with our updated Stability and Growth Programme which we will present by the end of month.”  Athens News Agency: FinMin defends economic policy; Ministry of Economy and Finance: Economic and Financial Data for Greece &  Hellenic Stability & Growth Programme 2007-2010 (December 2007)

Competitive Greece

(GREEK NEWS AGENDA)   In a recent interview with DiplomaticTraffic.com, Greece’s ambassador to Washington, Alexandros P. Mallias, described the transformation of his country. The most fundamental change, he said, was that Greece had become an “extroverted economy.”  Within the new framework of a globalised society, Greece recognizes the importance that competitiveness and entrepreneurship possesses for its growth and the upgrading of its place in the international arena. The Greek economy can achieve even better performances, since structural reforms to further strengthen competitiveness are being pursued. A new portal (www.competitive-greece.gr) launched by the National Council for Competitiveness and Development offers information about Greece’s efforts and achievements. 

Bank of Greece Annual Report

(GREEK NEWS AGENDA)  Bank of Greece Governor Nicholas Garganas, in his annual report of the economy released yesterday, forecasts continuous growth of the economy at higher rates than the rest of the eurozone, albeit at a slower pace. The country’s 2008 GDP growth forecast is revised downwards at 3.5% from a previous estimate of 3.7% in February. The slow down, as well as the inflation rate expected to rise to 4% this year from 3.4% previously, are inevitable and are due primarily to higher oil prices. The report also attributes these trends to higher pay rises and the presence of cartels in many markets. The Governor said the Central Bank favours mergers and acquisitions in the banking sector and called on banks to improve the quality of their portfolios, and on households to make careful appraisal of their ability to repay loans before borrowing. Garganas also welcomed the recent reform of the social security system. 

Mediterranean Concerns

Foreign Minister on EU- Arab league

(GREEK NEWS AGENDA) Foreign Minister Dora Bakoyannis arrived in Malta on Monday, where the first ministerial meeting between the European Union and the Arab League is taking place. Speaking to the Press on this initiative by Malta, which gives the opportunity to Europeans and Arabs to handle, apart from the Middle East issue, common problems, such as illegal immigration, energy safety, climate change and growth, the minister stressed that “the Mediterranean unites and must not divide.”