The 13th South Aegean Regional Development Conference
21.04.2018
From the platform of the 13th Regional Development Conference held in Rhodes, Prime Minister Alexis Tsipras spoke about the end of the Memorandum adventure, stressing that the exit from the Memoranda will be clear. H once again excluded the possibility of any need for a contingency credit line, pointing out yet another wrongful assertion by New Democracy. He also took the opportunity to send a clear signal to Turkey that Greece is not a threat, nor was it afraid of anyone.
"A turning of the page for the country after a long period of stewardship and harsh budget constraints," he said, pointing out that "the surrender of sovereignty in economic planning is definitely ending with the completion of the Fourth Assessment in a few days." "Where others failed, we are succeeding."
Referring to the line of credit, he repeated that it was not an option for the next day of the country's emergence from the programme. "There will be no new onerous commitments for the country and the people, as some are reckoning on - and they have not even hidden it with their constant statements."
"Some may be a little embarrassed by this development." "Not because they really believe that this country must always be under the condition of conditionality and harsh stewardship, or that they consider the line of credit to be more effective, but because they needed to be able to shout out that the country is not coming out of the crisis, cannot recover and improve."
He stressed the constant gainsaying of New Democracy."No one is listening to them anymore." "They themselves predicted in 2015 that we would return to the drachma; in 2016 they themselves predicted that the first Assessments would not be concluded and that the economy would collapse, and in 2017 they themselves predicted that the “Cutter” [The Automatic Budgetary Adjustment Mechanism insisted upon by the Insitutions in case of missed financial targets. Ed] would be activated." For 2018 they predicted that we will not have a clean exit from the Memoranda but a credit line instead, which, according to the Prime Minister, is simply a new Memorandum.
"Unfortunately for them, and fortunately for the country, they have failed in all their negative predictions." "No one is listening to them anymore apart from the support that the main opposition enjoys from the majority of the mass media.
"The vast majority of the Greek people are not stuck in a rut, irrespective of their ideological position, not only are they tired of the moaning and groaning, but they also want at last to look at the possibilities and prospects of this country with greater optimism." "Let us build tomorrow not with the materials of yesterday, but by exploiting the productive potential of each region individually, let us put the country back on a stable path of growth and revival."
He made specific reference to the development policy that Greece is shaping autonomously, talking about a plan based on the needs of the country without third-party suggestions, stressing that the economy is walking on its own feet again.
"Our own future in our own hands." "The new development policy will have rules, it will be fair and will work not just for the powerful but will support rather than undermine the social state and the real economy. "Not only to bring numbers to growth, no matter how big that growth will be, but for it to be fair."
"The plan will support the real economy, small and medium-sized enterprises, workers, professionals, scientists," he said, and stressed that it would ensure a fair redistribution of the wealth produced, "as in any normal European country."
He announced legislation for “transport equivalence”, the implementation of which will begin on 1 July 2018 for a series of islands, including all of the eastern Aegean - Kos, Patmos, Astypalaia, Kalymnos, Karpathos, Kasos, Leros, Nisyros, Symi, Tilos and Kastellorizo - and also a number of smaller islands, such as the small Cyclades.
"Directly through a legislative initiative that is already prepared, a symbolic and historical commitment will be implemented, the implementation of the “transport equivalence” in the Greek islands". "This has been made possible because at the centre of our logic always lies the question of social justice and the creation of the conditions for development for the whole of society,so that all citizens, regardless of where they live, have equal opportunities and equal possibilities for travel."
"This measure will cover most, if not all, of the inhabitants of the isolated islands and will give a stimulus to businesses struggling to survive."
He also noted that the Government is working on institutional support for life in the islands. In this context, he stressed that the prospect of extending the “life in the islands” clause to all the parliamentary bills being put forward was being explored, while pointing out that a special reference to island policies would be included in the debate on the constitutional revision.
At the same time, he spoke about the bid by Greece for the creation of an island cohesion and development fund for the period 2021-2027, as well as a commitment to a programme of innovative projects in the islands. Typical examples are the establishment of the Research Institute of Island Policy, for which the signing of the relevant Presidential Decree is pending, as well as the establishment of a Maritime Trade Academy in Kalymnos.
From the Conference, PM Tsipras sent a clear message to Turkey: "Greece is not threatening anyone, nor is it afraid of anyone. It defends its territorial integrity and has strong deterrent power, but also strong foundations and alliances in the international community.
"Greece can defend its sovereign rights from border to border of the country those borders are fixed by international treaties. We do not negotiate, we do not haggle, we do not concede even a sliver of land. "
Economic Development in the Greek Islands
Speaking at the Conference, early last week, Deputy Finance Minister Alexis Charitsis said
"Special Development Plans for the North and South Aegean are already underway, amounting to 102€ million, through which more than 100 projects are being implemented, while additional interventions of 77€ million are being funded by other programmes run by the Ministry. At the same time, our country is pushing for more European resources to be directed to the islands and for targeted policies to be developed at European level to strengthen them.
"Due to their geographical location and their particular social and economic characteristics, the Aegean islands face increased challenges that require special care on the part of the state. As the Finance Ministry, we are implementing a comprehensive plan to support the islands, providing substantial funding and specialized technical support."
Projects in all sectors - water and sanitation, ports and roads, culture and tourism, health and education as well as strengthening local entrepreneurship. There is at least one project on each island, all of which were proposed locally and selected on the basis of their degree of readiness and their usefulness to local communities. For the first time, small islands such as Agathonisi, Ai Stratis, Kasos, are receiving funding at such a level.
Island life, however, is not just an issue in Greece, it concerns the whole of Europe, as the increased flows of refugees of recent years have reminded us. The very critical debate currently taking place in the EU on the future of the Cohesion Policy (NSRF) after 2020 is a dynamic engagement, in addition to increasing the budget, and widening the criteria to the allocation of resources. One of these criteria must be island living. We are calling for more European resources to be directed to the islands and to develop targeted policies at European level to strengthen them.
So we get to the development conference that is being held today in Rhodes, not to make announcements but to continue the very important work that has already begun. To intensify our cooperation with local actors in the design and implementation of new projects that upgrade the island's development prospects and improve the lives of islanders."
"A turning of the page for the country after a long period of stewardship and harsh budget constraints," he said, pointing out that "the surrender of sovereignty in economic planning is definitely ending with the completion of the Fourth Assessment in a few days." "Where others failed, we are succeeding."
Referring to the line of credit, he repeated that it was not an option for the next day of the country's emergence from the programme. "There will be no new onerous commitments for the country and the people, as some are reckoning on - and they have not even hidden it with their constant statements."
"Some may be a little embarrassed by this development." "Not because they really believe that this country must always be under the condition of conditionality and harsh stewardship, or that they consider the line of credit to be more effective, but because they needed to be able to shout out that the country is not coming out of the crisis, cannot recover and improve."
He stressed the constant gainsaying of New Democracy."No one is listening to them anymore." "They themselves predicted in 2015 that we would return to the drachma; in 2016 they themselves predicted that the first Assessments would not be concluded and that the economy would collapse, and in 2017 they themselves predicted that the “Cutter” [The Automatic Budgetary Adjustment Mechanism insisted upon by the Insitutions in case of missed financial targets. Ed] would be activated." For 2018 they predicted that we will not have a clean exit from the Memoranda but a credit line instead, which, according to the Prime Minister, is simply a new Memorandum.
"Unfortunately for them, and fortunately for the country, they have failed in all their negative predictions." "No one is listening to them anymore apart from the support that the main opposition enjoys from the majority of the mass media.
"The vast majority of the Greek people are not stuck in a rut, irrespective of their ideological position, not only are they tired of the moaning and groaning, but they also want at last to look at the possibilities and prospects of this country with greater optimism." "Let us build tomorrow not with the materials of yesterday, but by exploiting the productive potential of each region individually, let us put the country back on a stable path of growth and revival."
He made specific reference to the development policy that Greece is shaping autonomously, talking about a plan based on the needs of the country without third-party suggestions, stressing that the economy is walking on its own feet again.
"Our own future in our own hands." "The new development policy will have rules, it will be fair and will work not just for the powerful but will support rather than undermine the social state and the real economy. "Not only to bring numbers to growth, no matter how big that growth will be, but for it to be fair."
"The plan will support the real economy, small and medium-sized enterprises, workers, professionals, scientists," he said, and stressed that it would ensure a fair redistribution of the wealth produced, "as in any normal European country."
He announced legislation for “transport equivalence”, the implementation of which will begin on 1 July 2018 for a series of islands, including all of the eastern Aegean - Kos, Patmos, Astypalaia, Kalymnos, Karpathos, Kasos, Leros, Nisyros, Symi, Tilos and Kastellorizo - and also a number of smaller islands, such as the small Cyclades.
"Directly through a legislative initiative that is already prepared, a symbolic and historical commitment will be implemented, the implementation of the “transport equivalence” in the Greek islands". "This has been made possible because at the centre of our logic always lies the question of social justice and the creation of the conditions for development for the whole of society,so that all citizens, regardless of where they live, have equal opportunities and equal possibilities for travel."
"This measure will cover most, if not all, of the inhabitants of the isolated islands and will give a stimulus to businesses struggling to survive."
He also noted that the Government is working on institutional support for life in the islands. In this context, he stressed that the prospect of extending the “life in the islands” clause to all the parliamentary bills being put forward was being explored, while pointing out that a special reference to island policies would be included in the debate on the constitutional revision.
At the same time, he spoke about the bid by Greece for the creation of an island cohesion and development fund for the period 2021-2027, as well as a commitment to a programme of innovative projects in the islands. Typical examples are the establishment of the Research Institute of Island Policy, for which the signing of the relevant Presidential Decree is pending, as well as the establishment of a Maritime Trade Academy in Kalymnos.
From the Conference, PM Tsipras sent a clear message to Turkey: "Greece is not threatening anyone, nor is it afraid of anyone. It defends its territorial integrity and has strong deterrent power, but also strong foundations and alliances in the international community.
"Greece can defend its sovereign rights from border to border of the country those borders are fixed by international treaties. We do not negotiate, we do not haggle, we do not concede even a sliver of land. "
Economic Development in the Greek Islands
Speaking at the Conference, early last week, Deputy Finance Minister Alexis Charitsis said
"Special Development Plans for the North and South Aegean are already underway, amounting to 102€ million, through which more than 100 projects are being implemented, while additional interventions of 77€ million are being funded by other programmes run by the Ministry. At the same time, our country is pushing for more European resources to be directed to the islands and for targeted policies to be developed at European level to strengthen them.
"Due to their geographical location and their particular social and economic characteristics, the Aegean islands face increased challenges that require special care on the part of the state. As the Finance Ministry, we are implementing a comprehensive plan to support the islands, providing substantial funding and specialized technical support."
Projects in all sectors - water and sanitation, ports and roads, culture and tourism, health and education as well as strengthening local entrepreneurship. There is at least one project on each island, all of which were proposed locally and selected on the basis of their degree of readiness and their usefulness to local communities. For the first time, small islands such as Agathonisi, Ai Stratis, Kasos, are receiving funding at such a level.
Island life, however, is not just an issue in Greece, it concerns the whole of Europe, as the increased flows of refugees of recent years have reminded us. The very critical debate currently taking place in the EU on the future of the Cohesion Policy (NSRF) after 2020 is a dynamic engagement, in addition to increasing the budget, and widening the criteria to the allocation of resources. One of these criteria must be island living. We are calling for more European resources to be directed to the islands and to develop targeted policies at European level to strengthen them.
So we get to the development conference that is being held today in Rhodes, not to make announcements but to continue the very important work that has already begun. To intensify our cooperation with local actors in the design and implementation of new projects that upgrade the island's development prospects and improve the lives of islanders."
IMF Discusses Greece
The IMF is no longer demanding further spending cuts from Greece, said Christine Lagarde and stressed that the Fund would be involved in the Greek programme with its own terms. Referring to the sacrifices of the Greek people, she acknowledged that important financial results have been produced.
The message that markets have welcomed progress in the Greek economy, as reflected in lower Greek borrowing costs, was sent by the IMF Managing Director Christine Lagarde, clarifying that the Fund is no longer demanding more spending cuts from Greece .
"The Greek people have spent eight years of very difficult politics, which have certainly improved the financial position (Greece). We need indicators. When looking at the 10-year Greek bond, it was yesterday under 4%, which is clearly an indication that markets will eventually finance Greece, because this is the ultimate progress, public funding being replaced by private funding. Thus, markets look on the situation in Greece much more favourably than before."
On Wednesday, the IMF's World Economic Outlook report, released as part of the IMF and World Bank Spring Summit in Washington, predicts for the Greek economy 2% growth in 2018 compared to a previous forecast of 2.6% and a fall in unemployment to 19.8% this year ( down from 20.7%). For 2019, it predicts growth of 1.8% and a fall in unemployment to 18% .
The Fund's report presented by Chief Economist, Maurice Obstfeld, reads that Greece’s economy grew by 1.4% in 2017, raising its long-term growth level ( by 2023) to 1.9%, that is almost double the IMF’s previous estimate (in October 2017 it estimated a 1% growth of the GDP for 2021). This is a particularly important development in view of the fact that one of the key disagreements between Europe and the IMF was the long-term growth prospects of the Greek economy, which played a crucial role in its analysis of the sustainability of the national debt. At the same time, the IMF predicts a faster decline in unemployment than its estimates six months ago.
The report records a revision of unemployment data, as the IMF predicts a faster reduction than it had foreseen last October. According to the report, in 2017 unemployment fell by 0.8% more than the initial projections, as it stands at 21.5% and not at 22.3% which was its earlier estimate. For the current year, the report places the unemployment rate at 19.8% against the previous projection of 20.7%. Finally, for 2019, the IMF predicts an even greater fall in unemployment, now estimated to reach 18%.
The IMF is revising its growth forecasts as it estimates that Greek economy grew by 1.4% in 2017, when it predicted growth of 1.8% in October. In addition, a 0.6% deviation for the year 2018 is recorded, after the IMF revised its 2.6% estimate for the first half of the year, and now places growth at 2%. For 2019, it predicts a decline in growth as compared to 2018 as it finds it at 1.8%.
The IMF has included these growth forecasts in all its analyses since 2015 to date on the sustainability of Greek debt. For its part, the European Commission appears more optimistic and estimates that Greece will grow by 2.5% in 2019. This deviation is important because it shows that the IMF and the EU Institutions are not using the same figures in the discussions about the debt.
On Friday, a government official told Reuters that Greece achieved a primary surplus that exceeded 3.5% of GDP in 2017, exceeding the target set under the financial adjustment programme for a third consecutive year. This was due to increased social security contributions and income tax and VAT receipts.
Based on guidelines of its bailout programme, Greece’s targets were to achieve a primary surplus of 1.75% in 2017 and 3.5% this year and next.
The IMF is no longer demanding further spending cuts from Greece, said Christine Lagarde and stressed that the Fund would be involved in the Greek programme with its own terms. Referring to the sacrifices of the Greek people, she acknowledged that important financial results have been produced.
The message that markets have welcomed progress in the Greek economy, as reflected in lower Greek borrowing costs, was sent by the IMF Managing Director Christine Lagarde, clarifying that the Fund is no longer demanding more spending cuts from Greece .
"The Greek people have spent eight years of very difficult politics, which have certainly improved the financial position (Greece). We need indicators. When looking at the 10-year Greek bond, it was yesterday under 4%, which is clearly an indication that markets will eventually finance Greece, because this is the ultimate progress, public funding being replaced by private funding. Thus, markets look on the situation in Greece much more favourably than before."
On Wednesday, the IMF's World Economic Outlook report, released as part of the IMF and World Bank Spring Summit in Washington, predicts for the Greek economy 2% growth in 2018 compared to a previous forecast of 2.6% and a fall in unemployment to 19.8% this year ( down from 20.7%). For 2019, it predicts growth of 1.8% and a fall in unemployment to 18% .
The Fund's report presented by Chief Economist, Maurice Obstfeld, reads that Greece’s economy grew by 1.4% in 2017, raising its long-term growth level ( by 2023) to 1.9%, that is almost double the IMF’s previous estimate (in October 2017 it estimated a 1% growth of the GDP for 2021). This is a particularly important development in view of the fact that one of the key disagreements between Europe and the IMF was the long-term growth prospects of the Greek economy, which played a crucial role in its analysis of the sustainability of the national debt. At the same time, the IMF predicts a faster decline in unemployment than its estimates six months ago.
The report records a revision of unemployment data, as the IMF predicts a faster reduction than it had foreseen last October. According to the report, in 2017 unemployment fell by 0.8% more than the initial projections, as it stands at 21.5% and not at 22.3% which was its earlier estimate. For the current year, the report places the unemployment rate at 19.8% against the previous projection of 20.7%. Finally, for 2019, the IMF predicts an even greater fall in unemployment, now estimated to reach 18%.
The IMF is revising its growth forecasts as it estimates that Greek economy grew by 1.4% in 2017, when it predicted growth of 1.8% in October. In addition, a 0.6% deviation for the year 2018 is recorded, after the IMF revised its 2.6% estimate for the first half of the year, and now places growth at 2%. For 2019, it predicts a decline in growth as compared to 2018 as it finds it at 1.8%.
The IMF has included these growth forecasts in all its analyses since 2015 to date on the sustainability of Greek debt. For its part, the European Commission appears more optimistic and estimates that Greece will grow by 2.5% in 2019. This deviation is important because it shows that the IMF and the EU Institutions are not using the same figures in the discussions about the debt.
On Friday, a government official told Reuters that Greece achieved a primary surplus that exceeded 3.5% of GDP in 2017, exceeding the target set under the financial adjustment programme for a third consecutive year. This was due to increased social security contributions and income tax and VAT receipts.
Based on guidelines of its bailout programme, Greece’s targets were to achieve a primary surplus of 1.75% in 2017 and 3.5% this year and next.
NOVARTIS – cases referred to the Courts
The parliamentary committee that was investigating charges that 10 politicians of previous administrations had been bribed by Novartis pharmaceuticals decided on Tuesday that it is not competent to deal with such matters as investigating charges of bribery and money laundering
Now the case will go to the Attorney’s office.
President of the Special Preliminary Examining Committee, Thodoris Dritsas said "This decision, which recognizes the competence of the mainstream Judiciary, is in accordance with the Constitution and laws and is the only one that provides the opportunity for light to be shed on the case. That is to say for the evidence to be examined and evaluated thoroughly. The potential responsibility of Parliament itself under Article 86 of the Constitution [on Ministers' Responsibility Ed.]would lead to there being a limitation of liability for all actions [being investigated Ed]. That is to say, to a blackout and to indiscriminate impunity."
Mr. Dritsas also called on opposition politicians who walked out of the whole procedure to present their own positions.
The parliamentary committee that was investigating charges that 10 politicians of previous administrations had been bribed by Novartis pharmaceuticals decided on Tuesday that it is not competent to deal with such matters as investigating charges of bribery and money laundering
Now the case will go to the Attorney’s office.
President of the Special Preliminary Examining Committee, Thodoris Dritsas said "This decision, which recognizes the competence of the mainstream Judiciary, is in accordance with the Constitution and laws and is the only one that provides the opportunity for light to be shed on the case. That is to say for the evidence to be examined and evaluated thoroughly. The potential responsibility of Parliament itself under Article 86 of the Constitution [on Ministers' Responsibility Ed.]would lead to there being a limitation of liability for all actions [being investigated Ed]. That is to say, to a blackout and to indiscriminate impunity."
Mr. Dritsas also called on opposition politicians who walked out of the whole procedure to present their own positions.
The Apokoronas Environment Group writes:
Hello everyone. Here is a reminder of the nation-wide clean-up campaign two weeks from today. This is joint venture supported by the Municipality of Apokoronas and the Apokoronas Environment Group. We hope that as many of you as possible will be able to take part. Details are repeated below. Thank you.
Let’s do it Greece!
Sunday, April 29th
This April 29 is not a simple Sunday! It is a day devoted to the love of volunteering and the environment.
With the main slogan "Become the Change You Want", volunteers from all over Greece will be co-ordinated at Let's do it Greece 2018, the Greatest Simultaneous Environmental Action of the country.
Volunteer groups, environmental organizations, clubs, municipalities, regions, institutions and citizens are co-ordinating to care and shape squares, parks, neighbourhoods, rivers, beaches, lakes, seas, mountains, forests, while students will take care of their school environment from a week full of Volunteerism, with a peak on Sunday April 29!
After last year's success with the participation of 1% of the Greek population, this year's goal is to involve over 150,000 volunteers with over 2,000 actions across the country! This year's theme is "Volunteering and Youth", with students, students and young people in our country playing a leading role.
IF YOU ONLY DO ONE THING FOR THE ENVIRONMENT THIS YEAR, LET IT BE THIS!!
The Apokoronas Environment Group is happy to promote this year’s effort:
WHAT? The plan is to clean up the tracks/footpaths that form the routes for the Koiliaris Run (see more below) in time for this year’s run.
WHEN? Sunday 29th April 2018, starting at 10am.
WHERE? The meeting point for all volunteers is the Plateia (Square) in Neo Horio
PLAN? The organisers will divide the volunteers into 3 groups. One will stay in Neo Horio, one will go to Stylos and the 3rd group will go to Armenoi.
WHAT DO WE NEED? The municipality will provide plastic refuse sacks and gloves. Take a good supply of water and perhaps a fruit bar or something similar with you.
Please do what you can to support this event. Every little helps! Thank you.
IF YOU ONLY DO ONE THING FOR THE ENVIRONMENT THIS YEAR, LET IT BE THIS!!
Hello everyone. Here is a reminder of the nation-wide clean-up campaign two weeks from today. This is joint venture supported by the Municipality of Apokoronas and the Apokoronas Environment Group. We hope that as many of you as possible will be able to take part. Details are repeated below. Thank you.
Let’s do it Greece!
Sunday, April 29th
This April 29 is not a simple Sunday! It is a day devoted to the love of volunteering and the environment.
With the main slogan "Become the Change You Want", volunteers from all over Greece will be co-ordinated at Let's do it Greece 2018, the Greatest Simultaneous Environmental Action of the country.
Volunteer groups, environmental organizations, clubs, municipalities, regions, institutions and citizens are co-ordinating to care and shape squares, parks, neighbourhoods, rivers, beaches, lakes, seas, mountains, forests, while students will take care of their school environment from a week full of Volunteerism, with a peak on Sunday April 29!
After last year's success with the participation of 1% of the Greek population, this year's goal is to involve over 150,000 volunteers with over 2,000 actions across the country! This year's theme is "Volunteering and Youth", with students, students and young people in our country playing a leading role.
IF YOU ONLY DO ONE THING FOR THE ENVIRONMENT THIS YEAR, LET IT BE THIS!!
The Apokoronas Environment Group is happy to promote this year’s effort:
WHAT? The plan is to clean up the tracks/footpaths that form the routes for the Koiliaris Run (see more below) in time for this year’s run.
WHEN? Sunday 29th April 2018, starting at 10am.
WHERE? The meeting point for all volunteers is the Plateia (Square) in Neo Horio
PLAN? The organisers will divide the volunteers into 3 groups. One will stay in Neo Horio, one will go to Stylos and the 3rd group will go to Armenoi.
WHAT DO WE NEED? The municipality will provide plastic refuse sacks and gloves. Take a good supply of water and perhaps a fruit bar or something similar with you.
Please do what you can to support this event. Every little helps! Thank you.
IF YOU ONLY DO ONE THING FOR THE ENVIRONMENT THIS YEAR, LET IT BE THIS!!
Syria
14.04.2018
On Friday, speaking with the French President Emmanuel Macron, Prime Minister Alexis Tsipras said that Greek Armed Forces would not participate in a possible military operation in Syria. He condemned the use of chemical weapons, stressing that decisive initiatives from the European Union were needed, and emphasising the need to work towards a peaceful solution based on Sweden's proposal.
On Thursday, Sweden proposed a United Nations Security Council resolution requesting U.N. Secretary-General Antonio Guterres to send a high-level disarmament team to Syria to address “all outstanding issues on the use of chemical weapons once and for all.”
The 15-member council had failed on Tuesday to approve three draft resolutions on chemical weapons attacks in Syria. Russia vetoed a U.S. text, while two Russian-drafted resolutions failed to get a minimum nine votes to pass.
On Thursday, Sweden proposed a United Nations Security Council resolution requesting U.N. Secretary-General Antonio Guterres to send a high-level disarmament team to Syria to address “all outstanding issues on the use of chemical weapons once and for all.”
The 15-member council had failed on Tuesday to approve three draft resolutions on chemical weapons attacks in Syria. Russia vetoed a U.S. text, while two Russian-drafted resolutions failed to get a minimum nine votes to pass.
Final Steps to conclude the Bailout Programme
Greece presented its draft development plan to its EU creditors to be implemented after the end of the current bailout programme in August.
Deputy Finance Minister Giorgos Chouliarakis briefed Eurozone officials about the plan at the Eurogroup Working Group (EWG) held in Brussels on Thursday. The development plan includes specific measures and sets targets for attracting investment, reducing taxes, reducing ‘bad’ loans and modernizing the public administration.It also contains targets for reducing unemployment and boosting productivity and exports.
The plan is important because it will be taken into account in the analysis of the sustainability of the Greek debt. EU Commissioner Pierre Moscovici said that it will be an important test for the country’s credibility in the debate on the post-memorandum era.
Official Government spokesman Mr Tzanakopoulos said the development plan refers to the country's fiscal path from 2019 onwards. Responding to the suggestion of the possibility of postponing or freezing the reduction in pensions from 1.1.2019, he said that "everything depends on the financial results." "Financially, the Greek economy has overperformed," he explained, "which is due to the much better revenue streams, particularly with regard to the national insurance funds", expressing the view that this will be taken into account by the partners in the debate on the long-term development strategy.
"And in 2017 we are exceeding the targets," he said, pointing out that several of the Institutions have sometimes underestimated the effect of the “measures”. "We expect all these results to be taken into account as a whole by the Institutions."
Finance Minister Euclid Tsakalotos will present the final draft to the Eurogroup meeting on April 27, in Sofia, for final agreement.
Regarding the Fourth Assessment, the EWG highlighted the need for the “prior actions” to be completed by the end of April to conclude the Assessment by June at the latest. The Assessment is linked to a significant loan tranche of €11.7 billion which must be disbursed before the end of the programme on August 20th 2018.
On debt relief, the EWG examined the French proposal linking debt repayment to economic growth. Debt relief measures will be affected by fiscal data to be released by Eurostat on 23 April.
Meanwhile, the IMF-World Bank Spring Meetings in Washington DC on April 20-22 are expected to discuss the issue of Greek debt relief.
The IMF has said it will activate a stand-by arrangement with Greece if the country’s European partners can demonstrate the sustainability of its debt.
Heads of the Institutions’ missions are expected to return to Athens early in May, to complete the Fourth Assessment. Unfulfilled prior actions at the time, including energy plans and privatization, will be given until June to be completed.
Greece presented its draft development plan to its EU creditors to be implemented after the end of the current bailout programme in August.
Deputy Finance Minister Giorgos Chouliarakis briefed Eurozone officials about the plan at the Eurogroup Working Group (EWG) held in Brussels on Thursday. The development plan includes specific measures and sets targets for attracting investment, reducing taxes, reducing ‘bad’ loans and modernizing the public administration.It also contains targets for reducing unemployment and boosting productivity and exports.
The plan is important because it will be taken into account in the analysis of the sustainability of the Greek debt. EU Commissioner Pierre Moscovici said that it will be an important test for the country’s credibility in the debate on the post-memorandum era.
Official Government spokesman Mr Tzanakopoulos said the development plan refers to the country's fiscal path from 2019 onwards. Responding to the suggestion of the possibility of postponing or freezing the reduction in pensions from 1.1.2019, he said that "everything depends on the financial results." "Financially, the Greek economy has overperformed," he explained, "which is due to the much better revenue streams, particularly with regard to the national insurance funds", expressing the view that this will be taken into account by the partners in the debate on the long-term development strategy.
"And in 2017 we are exceeding the targets," he said, pointing out that several of the Institutions have sometimes underestimated the effect of the “measures”. "We expect all these results to be taken into account as a whole by the Institutions."
Finance Minister Euclid Tsakalotos will present the final draft to the Eurogroup meeting on April 27, in Sofia, for final agreement.
Regarding the Fourth Assessment, the EWG highlighted the need for the “prior actions” to be completed by the end of April to conclude the Assessment by June at the latest. The Assessment is linked to a significant loan tranche of €11.7 billion which must be disbursed before the end of the programme on August 20th 2018.
On debt relief, the EWG examined the French proposal linking debt repayment to economic growth. Debt relief measures will be affected by fiscal data to be released by Eurostat on 23 April.
Meanwhile, the IMF-World Bank Spring Meetings in Washington DC on April 20-22 are expected to discuss the issue of Greek debt relief.
The IMF has said it will activate a stand-by arrangement with Greece if the country’s European partners can demonstrate the sustainability of its debt.
Heads of the Institutions’ missions are expected to return to Athens early in May, to complete the Fourth Assessment. Unfulfilled prior actions at the time, including energy plans and privatization, will be given until June to be completed.
Unemployment eases
The Greek unemployment rate eased to 20.6% in January from 20.8% in December 2017 the Hellenic Statistical Authority said on Thursday.
The number of unemployed people in the country totaled 977,222 in January, down by 126,430 compared with January 2017 (a decline of 11.5%) and down by 10,167 compared with December 2017 (a decline of 1%). The number of employed people totaled 3,755,427, up by 98,712 compared with January 2017 (an increase of 2.7%) but down 12,443 from December 2017.
The unemployment rate among women was 25.6% in January, down from 27.6% in January 2017, while among men it fell to 16.7% from 19.6%.
The 15-24 age group recorded the highest unemployment rate (42.3% in January 2018 from 47.1% in January 2017), followed by the 25-34 age group (26% down from 29.4%), the 35-44 age group (19% from 20.1%), the 45-54 age group (16.5% from 18.1%), the 55-64 age group (16.5% from 19.9%) and the 65-74 age group (7.1% down from 13.9%).
Regionally, Epirus-Western Macedonia recorded the highest unemployment rate (26.2% in January 2018 from 27.4% in January 2017), followed by Peloponnese-Western Greece-Ionian Islands (21.7% from 23.2%), Attica (21% from 22.5%, Macedonia-Thrace (20.2% from 23.5%), Aegean (19.8% from 18.9%), Thessaly-Central Greece (18.6% from 23.6%) and Crete (16.4% from 22.1%).
Other Financial Indicators
Greece generated 812.5€ million in an auction of treasury bills on Wednesday, according to the Public Debt Management Agency (PDMA).
Greece is conducting sales of treasury bills as a way of financing the country alongside bailout monies.
On Tuesday it was reported that Greece’s growth was the lowest among eurozone countries for 2017, with a GDP rise of just 1.4% while the eurozone average was 2.3%, according to European Central Bank figures.
At the same time, Greece showed a 1.1% decline in government spending, while the average in the euro area was a 1.2% increase.
The Greek unemployment rate eased to 20.6% in January from 20.8% in December 2017 the Hellenic Statistical Authority said on Thursday.
The number of unemployed people in the country totaled 977,222 in January, down by 126,430 compared with January 2017 (a decline of 11.5%) and down by 10,167 compared with December 2017 (a decline of 1%). The number of employed people totaled 3,755,427, up by 98,712 compared with January 2017 (an increase of 2.7%) but down 12,443 from December 2017.
The unemployment rate among women was 25.6% in January, down from 27.6% in January 2017, while among men it fell to 16.7% from 19.6%.
The 15-24 age group recorded the highest unemployment rate (42.3% in January 2018 from 47.1% in January 2017), followed by the 25-34 age group (26% down from 29.4%), the 35-44 age group (19% from 20.1%), the 45-54 age group (16.5% from 18.1%), the 55-64 age group (16.5% from 19.9%) and the 65-74 age group (7.1% down from 13.9%).
Regionally, Epirus-Western Macedonia recorded the highest unemployment rate (26.2% in January 2018 from 27.4% in January 2017), followed by Peloponnese-Western Greece-Ionian Islands (21.7% from 23.2%), Attica (21% from 22.5%, Macedonia-Thrace (20.2% from 23.5%), Aegean (19.8% from 18.9%), Thessaly-Central Greece (18.6% from 23.6%) and Crete (16.4% from 22.1%).
Other Financial Indicators
Greece generated 812.5€ million in an auction of treasury bills on Wednesday, according to the Public Debt Management Agency (PDMA).
Greece is conducting sales of treasury bills as a way of financing the country alongside bailout monies.
On Tuesday it was reported that Greece’s growth was the lowest among eurozone countries for 2017, with a GDP rise of just 1.4% while the eurozone average was 2.3%, according to European Central Bank figures.
At the same time, Greece showed a 1.1% decline in government spending, while the average in the euro area was a 1.2% increase.
The 12th Regional Conference on the Reconstruction of the Productive Capacity of Eastern Attica
7.4.2018
The 12th Regional Conference on the Reconstruction of the Productive Capacity of Eastern Attica took place last week in Lavrio.
The Regional Governor of Attica, Dimitris Duros highlighted during his opening address the region's main problems such as anarchic and arbitrary construction, the lack of basic liquid and solid waste management facilities, and the great urban pressure experienced by Eastern Attica in recent decades, with serious consequences for the natural environment and the quality of life of the residents.
"Our need for sewerage networks is not up for discussion. Our need for flood defence infrastructure is not negotiable. The creation of a network of social services for our fellow citizens is not negotiable. Seeking to improve their everyday lives is not negotiable. We are obdurate in the defence of the public interest, our fight against corruption and bureaucracy is not negotiable."
Regarding solid waste management, projects of municipal waste treatment plants and bio-waste are being brought forward. The Government's goal is to deal with all outstanding issues of wastewater management in eastern Attica.
In addition, the consequences of the forest fires that have occurred repeatedly in Eastern Attica in recent years were highlighted, with human lives and property being endangered alongside the enormous destruction of the natural environment. In this context, the posting of forest maps was highlighted, while the law on residential density was announced. "With the ratification of forest maps in 2019, forestry and the environment will be fully mapped out in Eastern Attica, so that the area will no longer be linked in everyone’s minds with the arbitrary destruction of the forest."
The Prime Minister began his opening speech by referring to the regional development conferences themselves, which "are proving to be an institution".
“In order to draw up a national development plan, the Government chose not to do it behind closed doors in offices but to start from the "bottom" with the Regions.” He compared this joint effort with the climate of sterile, miserable, unnecessary political confrontation.
“The upgrading of the urban environment is our priority and it is being implemented throughout the country. It is necessary to adapt the role of the Ports of Rafina and Lavrio directly, with emphasis on passenger transport and the creation of a cruise-ship landing point.
“The bidding for the Rafinas intersection at the junction of Marathon Avenue with Rafina will be held this year by the Ministry of Infrastructure. The project, with a budget of 7€ million, is funded by the Public Investment Programme.
“It is also planned to implement roundabouts in 8 places funded by the Region.
At the same time we are promoting the studies of a series of flood defence projects in Kalyvia and Kouvaras, Marathon, Nea Makri and Rafina.
Visits to archaeological sites in Eastern Attica have increased between 2015 and 2017 by 30,000. While the income from these visits increased by 600,000€.
A large number of works are under way in the area of Tatoi, the archaeological sites of Vravrona and Sounion, the Museum of Vravrona, Amphiaraio and Byzantine and post-Byzantine monuments. Work is now completed at the museums of Marathon and Sounion.
In East Attica, 15 tourism investments have been submitted for authorization, of which 6 are hotels. While within the first cycle of the Development Law, 4 hotel investment proposals amounting to 2.8€ million have been submitted.
“In the health sector, a huge effort is being made to upgrade the structures: In March 2018, 208 doctors were working in the Health Centres of Eastern Attica, compared to 105 in December 2015. And 277 other staff up from 224 in 2015.
The Prime Minister Alexis Tzipras spoke again to close the Conference. He used his speech to summarise the conclusions of the two days’ work during which environmental issues, rural development, self-government, energy and spatial planning issues, interventions in the welfare state, public infrastructure, transport networks and ports were discussed.
He referred to Greece’s conviction by the European Court of Justice in 2015 for the lack of wastewater infrastructure in Markopoulo, N. Makris, Koropi, and Rafina-Artemida. To date, tax-payers have paid about 25€ million in fines.
"Today we are launching interventions and activating the tools needed to create a framework for balanced and sustainable development in Eastern Attica - a pillar of the local economy."
"Three major investment plans have been announced over the past few days: Deutsche Telekom will create a fiber optic network worth 2€ billion, a 400€ million fund in cooperation with the United Arab Emirates and a 600€ million European Bank for Reconstruction and Development (EBRD)
These create a stable climate that is completely different from the conditions prevailing in the country since 2010. Positive projections are boosted. Growth, international credibility, all economic indicators will improve continuously over the coming years."
"It is now that we have to plan on a solid basis the next day for the country." Alexis Tsipras said in concluding the work of the conference.
" The economy is outperforming its targets and the objectives of the Programme have been met. "In a few months, in the summer, we also come out formally, clearly and definitively, from the Memoranda that have struck us for eight years," stressed Mr. Tsipras.
The Regional Governor of Attica, Dimitris Duros highlighted during his opening address the region's main problems such as anarchic and arbitrary construction, the lack of basic liquid and solid waste management facilities, and the great urban pressure experienced by Eastern Attica in recent decades, with serious consequences for the natural environment and the quality of life of the residents.
"Our need for sewerage networks is not up for discussion. Our need for flood defence infrastructure is not negotiable. The creation of a network of social services for our fellow citizens is not negotiable. Seeking to improve their everyday lives is not negotiable. We are obdurate in the defence of the public interest, our fight against corruption and bureaucracy is not negotiable."
Regarding solid waste management, projects of municipal waste treatment plants and bio-waste are being brought forward. The Government's goal is to deal with all outstanding issues of wastewater management in eastern Attica.
In addition, the consequences of the forest fires that have occurred repeatedly in Eastern Attica in recent years were highlighted, with human lives and property being endangered alongside the enormous destruction of the natural environment. In this context, the posting of forest maps was highlighted, while the law on residential density was announced. "With the ratification of forest maps in 2019, forestry and the environment will be fully mapped out in Eastern Attica, so that the area will no longer be linked in everyone’s minds with the arbitrary destruction of the forest."
The Prime Minister began his opening speech by referring to the regional development conferences themselves, which "are proving to be an institution".
“In order to draw up a national development plan, the Government chose not to do it behind closed doors in offices but to start from the "bottom" with the Regions.” He compared this joint effort with the climate of sterile, miserable, unnecessary political confrontation.
“The upgrading of the urban environment is our priority and it is being implemented throughout the country. It is necessary to adapt the role of the Ports of Rafina and Lavrio directly, with emphasis on passenger transport and the creation of a cruise-ship landing point.
“The bidding for the Rafinas intersection at the junction of Marathon Avenue with Rafina will be held this year by the Ministry of Infrastructure. The project, with a budget of 7€ million, is funded by the Public Investment Programme.
“It is also planned to implement roundabouts in 8 places funded by the Region.
At the same time we are promoting the studies of a series of flood defence projects in Kalyvia and Kouvaras, Marathon, Nea Makri and Rafina.
Visits to archaeological sites in Eastern Attica have increased between 2015 and 2017 by 30,000. While the income from these visits increased by 600,000€.
A large number of works are under way in the area of Tatoi, the archaeological sites of Vravrona and Sounion, the Museum of Vravrona, Amphiaraio and Byzantine and post-Byzantine monuments. Work is now completed at the museums of Marathon and Sounion.
In East Attica, 15 tourism investments have been submitted for authorization, of which 6 are hotels. While within the first cycle of the Development Law, 4 hotel investment proposals amounting to 2.8€ million have been submitted.
“In the health sector, a huge effort is being made to upgrade the structures: In March 2018, 208 doctors were working in the Health Centres of Eastern Attica, compared to 105 in December 2015. And 277 other staff up from 224 in 2015.
The Prime Minister Alexis Tzipras spoke again to close the Conference. He used his speech to summarise the conclusions of the two days’ work during which environmental issues, rural development, self-government, energy and spatial planning issues, interventions in the welfare state, public infrastructure, transport networks and ports were discussed.
He referred to Greece’s conviction by the European Court of Justice in 2015 for the lack of wastewater infrastructure in Markopoulo, N. Makris, Koropi, and Rafina-Artemida. To date, tax-payers have paid about 25€ million in fines.
"Today we are launching interventions and activating the tools needed to create a framework for balanced and sustainable development in Eastern Attica - a pillar of the local economy."
"Three major investment plans have been announced over the past few days: Deutsche Telekom will create a fiber optic network worth 2€ billion, a 400€ million fund in cooperation with the United Arab Emirates and a 600€ million European Bank for Reconstruction and Development (EBRD)
These create a stable climate that is completely different from the conditions prevailing in the country since 2010. Positive projections are boosted. Growth, international credibility, all economic indicators will improve continuously over the coming years."
"It is now that we have to plan on a solid basis the next day for the country." Alexis Tsipras said in concluding the work of the conference.
" The economy is outperforming its targets and the objectives of the Programme have been met. "In a few months, in the summer, we also come out formally, clearly and definitively, from the Memoranda that have struck us for eight years," stressed Mr. Tsipras.
Latest Economic Data: Primary Surplus Target Exceeded
In terms of completing the Fourth Assessment, Greece’s Primary Surplus is close to 4.5% against a target of 1.75% and, together with the Government’s Development Plan, that is expected to be the Government's "line of defence" vis a vis the IMF. The Government will present the evidence of exceeding the Primary Surplus targets as proof that the “measures” already taken are more than are necessary. It expects to not only counteract IMF pressure to reduce tax allowances but also to bring in, through the Development Plan, a series of social measures.
Approval of the 2017 financial figures submitted by Greece to Eurostat is due to be made on 23rd April.
The International Monetary Fund is expected to finalize its position as to whether to seek the application of the reduced tax-free allowance a year earlier (from 2019), along with a reduction in pensions. However, the strengthening of the Greek economy is reflected in almost all indicators.
With regard to the course of the Fourth Assessment, of the 88 “prerequisite measures” 12 have already been completed.
After Easter the Government expects to complete the remaining 76 without delay. The IMF’s intentions are expected to emerge during its spring session, which takes place on 16-22 April in Washington.
2017 was the best year in a decade for foreign investment, said Government Spokesman
Dimitris Tzanakopoulos, reaching 4€ billion.
Three major investment plans were announced in the last few days, further indicating the positive prospects for the Greek economy.
1. Deutsche Telecom's 2€ billion investment over the next four years in the Greece for the development of fibre networks and 5G.
2. The creation of a fund totalling €400m to be set up by the Ministry of Development and Economy’s New Economy Development Fund [TANEO - a company developing venture capital funds aimed at small and medium-sized enterprises Ed] and the Mubadala Investment Company - the Sovereign Investment Fund of the United Arab Emirates.
3. An investment of €600 million, just for 2018, by the European Bank for Reconstruction and Development, and the extension until 2025 of Greece’s partnership with the Bank.
DEBT RELIEF
After Orthodox Easter, the alternative debt relief scenarios under consideration will be discussed and this time the official German reaction will be presented.
On the Thursday after Easter, on April 12th , an EWG (EuroWorking Group) meeting will be held with the first item on the agenda to be what is to happen with the Greek debt. The German side also now seems to agree that some restructuring should go ahead with the end of the Programme
The Task Force set up by the Eurogroup specifically on Greek debt will present the background and the alternative debt relief scenarios as well as the link between debt repayment and growth in line with the so-called "French key".
According to information, some of the loans will be extended and interest rates will be fixed at a level below 2%.
The IMF is expected to clarify its position at its spring meeting on 20-22 April, when the Fund’s Council will be asked to approve the return of the IMF to the Greek Programme on the basis of Eurostat’s final data on the real trajectory of the Greek economy. In any case, the catalyst will be the degree of acceptance of the debt solution, which will be supported by European lenders, and will have to include not only medium-term but also long-term debt relief measures.
Shortly after the middle of the month, Eurostat's closing results for 2017 will be published, which are expected to be very favourable now, since the Primary Surplus of the previous year exceeded 4% of GDP, ie. more than double the Programme’s target of a surplus of 1.75% of GDP.
In terms of completing the Fourth Assessment, Greece’s Primary Surplus is close to 4.5% against a target of 1.75% and, together with the Government’s Development Plan, that is expected to be the Government's "line of defence" vis a vis the IMF. The Government will present the evidence of exceeding the Primary Surplus targets as proof that the “measures” already taken are more than are necessary. It expects to not only counteract IMF pressure to reduce tax allowances but also to bring in, through the Development Plan, a series of social measures.
Approval of the 2017 financial figures submitted by Greece to Eurostat is due to be made on 23rd April.
The International Monetary Fund is expected to finalize its position as to whether to seek the application of the reduced tax-free allowance a year earlier (from 2019), along with a reduction in pensions. However, the strengthening of the Greek economy is reflected in almost all indicators.
With regard to the course of the Fourth Assessment, of the 88 “prerequisite measures” 12 have already been completed.
After Easter the Government expects to complete the remaining 76 without delay. The IMF’s intentions are expected to emerge during its spring session, which takes place on 16-22 April in Washington.
2017 was the best year in a decade for foreign investment, said Government Spokesman
Dimitris Tzanakopoulos, reaching 4€ billion.
Three major investment plans were announced in the last few days, further indicating the positive prospects for the Greek economy.
1. Deutsche Telecom's 2€ billion investment over the next four years in the Greece for the development of fibre networks and 5G.
2. The creation of a fund totalling €400m to be set up by the Ministry of Development and Economy’s New Economy Development Fund [TANEO - a company developing venture capital funds aimed at small and medium-sized enterprises Ed] and the Mubadala Investment Company - the Sovereign Investment Fund of the United Arab Emirates.
3. An investment of €600 million, just for 2018, by the European Bank for Reconstruction and Development, and the extension until 2025 of Greece’s partnership with the Bank.
DEBT RELIEF
After Orthodox Easter, the alternative debt relief scenarios under consideration will be discussed and this time the official German reaction will be presented.
On the Thursday after Easter, on April 12th , an EWG (EuroWorking Group) meeting will be held with the first item on the agenda to be what is to happen with the Greek debt. The German side also now seems to agree that some restructuring should go ahead with the end of the Programme
The Task Force set up by the Eurogroup specifically on Greek debt will present the background and the alternative debt relief scenarios as well as the link between debt repayment and growth in line with the so-called "French key".
According to information, some of the loans will be extended and interest rates will be fixed at a level below 2%.
The IMF is expected to clarify its position at its spring meeting on 20-22 April, when the Fund’s Council will be asked to approve the return of the IMF to the Greek Programme on the basis of Eurostat’s final data on the real trajectory of the Greek economy. In any case, the catalyst will be the degree of acceptance of the debt solution, which will be supported by European lenders, and will have to include not only medium-term but also long-term debt relief measures.
Shortly after the middle of the month, Eurostat's closing results for 2017 will be published, which are expected to be very favourable now, since the Primary Surplus of the previous year exceeded 4% of GDP, ie. more than double the Programme’s target of a surplus of 1.75% of GDP.
CORRUPTION: Siemens Bribery Case at Appeal
In July last year Tasos Mandelis, a former PASOK Transport Minister, was found guilty of money laundering in the Siemens bribery case, and was given an eight-year suspended sentence.
Judges had ruled that Mr. Mandelis had received 230,000€ as a bribe for a contract signed with the Hellenic Telecommunications Organization (OTE) in 1997 when he was a Minister in the PASOK Government.
Siemens Hellas former executive Ilias Georgiou had also been found guilty of money laundering and bribery. Mr.Mandelis’ associate Aristidis Mantas was found guilty of providing assistance in money laundering.
Mr. Georgiou faced a 12-year suspended sentence while Mr. Mandelis received eight years.
The case is now in the Athens Appeal Court.
The Chief Prosecutor in the Five-Member Court of Appeal maintained that the court should not accept the contention of the accused former Minister that the money in question, which had been transferred to a Swiss bank account in the name “ROCOS”, was a pre-election donation by the German company. The Prosecutor pointed out that the money was not spent on the election but on the family expenses of his son, Mr Mandelis.
The Prosecutor said: "Both deposits occurred outside of the pre-election campaign. And in any case both were illegal, because it is forbidden for companies participating in tendering for contracts with the State to make such donations. The money found in the Minister's bank account was twice as much as the total election spending outlay provided for by the relevant Ministry of the Interior decision in the case of a candidate Athens District Β'." The Prosecutor also said that the money was deposited in a secret bank account in Switzerland and so he wondered "why the account was secret and not in his own name? Why want money from strangers? And what if it was money for the Camorra and the Mafia?" He summed up by saying,"Mr.Mandelis' action was neither moral nor legal".
Allegations that Greek politicians and political parties received bribes during successive administrations to grant German industrial giant Siemens lucrative contracts in the run-up to the 2004 Olympics, have dominated local media for years.
In July last year Tasos Mandelis, a former PASOK Transport Minister, was found guilty of money laundering in the Siemens bribery case, and was given an eight-year suspended sentence.
Judges had ruled that Mr. Mandelis had received 230,000€ as a bribe for a contract signed with the Hellenic Telecommunications Organization (OTE) in 1997 when he was a Minister in the PASOK Government.
Siemens Hellas former executive Ilias Georgiou had also been found guilty of money laundering and bribery. Mr.Mandelis’ associate Aristidis Mantas was found guilty of providing assistance in money laundering.
Mr. Georgiou faced a 12-year suspended sentence while Mr. Mandelis received eight years.
The case is now in the Athens Appeal Court.
The Chief Prosecutor in the Five-Member Court of Appeal maintained that the court should not accept the contention of the accused former Minister that the money in question, which had been transferred to a Swiss bank account in the name “ROCOS”, was a pre-election donation by the German company. The Prosecutor pointed out that the money was not spent on the election but on the family expenses of his son, Mr Mandelis.
The Prosecutor said: "Both deposits occurred outside of the pre-election campaign. And in any case both were illegal, because it is forbidden for companies participating in tendering for contracts with the State to make such donations. The money found in the Minister's bank account was twice as much as the total election spending outlay provided for by the relevant Ministry of the Interior decision in the case of a candidate Athens District Β'." The Prosecutor also said that the money was deposited in a secret bank account in Switzerland and so he wondered "why the account was secret and not in his own name? Why want money from strangers? And what if it was money for the Camorra and the Mafia?" He summed up by saying,"Mr.Mandelis' action was neither moral nor legal".
Allegations that Greek politicians and political parties received bribes during successive administrations to grant German industrial giant Siemens lucrative contracts in the run-up to the 2004 Olympics, have dominated local media for years.
"Our basic tool for
“the next day” is
the National Development Strategy"
31.3.2018
"Our basic tool for “the next day” is the National Development Strategy," said Alexis Tsipras, noting that this is a "complete strategic plan that no one will build for us and no one will impose on us, but it will be a product of our own design and choice".
To the discussions taking place at the Regional Conferences, "the Government is coming without preconceptions, without asking for anyone’s political credentials and without pushing any other agenda beyond common work and consultation on the productive reconstruction of each region," he said, speaking at the Regional Conference on the Reconstruction of Production of Central Macedonia.
He said the aim was a productive discussion, to find solutions together. "It would be desirable for all of us to reach such terms of mutual understanding both in the country's Parliament and on the central political scene."
He noted as a positive fact that these conferences "coincide with the completion of the Programme and, after 8 years, the long-desired exit of the country from the Stewardship". He stressed that "Today we can be more optimistic, because the economy is reaching the goals and the completion of the 4th Assessment, which, combined with the debt relief processes, will pave the way for a definite and clear exit from the adventure of the Memoranda." He underlined that "The road from here on is open. 2018 will be better than 2017 and 2019 even better than 2018".
He pointed out, however, that "it is not a forgone conclusion that we will succeed. Our basic tool for "the next day" is the National Development Strategy."
It is based on three pillars.
-The first is fiscal and macroeconomic stability. So that the country can ensure its autonomous course.
-The second pillar is supporting work, tackling unemployment and upgrading and broadening the welfare state.
-Finally, the third pillar is the change in the country's productive model.
"So we are planning the next day, we are planning the return of the country and the society to normality and growth, but far away from the pathogens and distortions of the past due to the old regime of clientelism and vested interests, which undermined the country's path of development and eventually led to bankruptcy."
He said that he was impressed by the way in which Mr. Mitsotakis "chose to attack the procedures to remove political party interests from the Public Administration". This is "a huge intervention, a great reform with which we are proceeding in complete agreement with the Institutions that are praising the Greek Government because it is the first time in the modern history of the Greek State that the initiative has been taken to get grips with the mentality that the state is the booty of the governing political party."
He called on the New Democracy President to explain more clearly his positions on redundancies in the public sector and his position on moving to private insurance. "That", he commented," if ever applied, would immediately put the viability of the insurance system at risk along with citizens' insurance rights and would lead to hundreds of insured people being on starvation pensions without health care."
"It is up to us to not let Greece turn backwards. Those who threw the country onto the rocks still seem to have a plan to return us to the harsh, indiscriminate, class choices that, on the pretext of the crisis, they were happy to implement during the great plunder 2010-2014."
He stressed that the "next day" Greece must find itself and will find itself free of neo-liberal dogmatism. Free from the logic of Social Darwinism and from a political system steeped in clientelist relationships, corruption and vested interests."
He noted that it is a key priority and commitment to the citizens "not only to extricate the country from the Memoranda, but to do our part to bring in a clean-up and justice." He made it clear that "we will not go back in any way and for anybody, how ever much pressure and how ever many threats we receive." "All cases will be investigated by the Judiciary, which is now left alone to concentrate on taking decisions according to the law, concerning everyone irrespective of how "high" they are."
Referring to the words of the Regional Governor of Central Macedonia earlier on the issue of the country's differences with FYROM, Alexis Tsipras stressed that "Central Macedonia and Thessaloniki in particular, wanting to be the pole and pillar of development, can only benefit from the resolution of our dispute with our Northern Neighbours."
He clarified that "this does not mean that we are going into a negotiation to achieve just any solution. We are negotiating with a sense of national responsibility and with the aim of achieving a solution that will safeguard our history and our heritage and at the same time put an end to irredentism from the other side."
"We have set the bar high in the negotiation. We want a solution that will last for all time, not a solution that runs the risk of collapsing very soon, so we have also made it a prerequisite, among other things, that the Neighbours’ Constitution is changed."
"We will do not what is defined by party political interest but what is defined by the national interest," the Prime Minister said, and called on the other side to step up to the situation, because for them it is a matter of existential importance "and I hope they will understand it and have the strength to take the difficult decisions that are, however, necessary."
To the discussions taking place at the Regional Conferences, "the Government is coming without preconceptions, without asking for anyone’s political credentials and without pushing any other agenda beyond common work and consultation on the productive reconstruction of each region," he said, speaking at the Regional Conference on the Reconstruction of Production of Central Macedonia.
He said the aim was a productive discussion, to find solutions together. "It would be desirable for all of us to reach such terms of mutual understanding both in the country's Parliament and on the central political scene."
He noted as a positive fact that these conferences "coincide with the completion of the Programme and, after 8 years, the long-desired exit of the country from the Stewardship". He stressed that "Today we can be more optimistic, because the economy is reaching the goals and the completion of the 4th Assessment, which, combined with the debt relief processes, will pave the way for a definite and clear exit from the adventure of the Memoranda." He underlined that "The road from here on is open. 2018 will be better than 2017 and 2019 even better than 2018".
He pointed out, however, that "it is not a forgone conclusion that we will succeed. Our basic tool for "the next day" is the National Development Strategy."
It is based on three pillars.
-The first is fiscal and macroeconomic stability. So that the country can ensure its autonomous course.
-The second pillar is supporting work, tackling unemployment and upgrading and broadening the welfare state.
-Finally, the third pillar is the change in the country's productive model.
"So we are planning the next day, we are planning the return of the country and the society to normality and growth, but far away from the pathogens and distortions of the past due to the old regime of clientelism and vested interests, which undermined the country's path of development and eventually led to bankruptcy."
He said that he was impressed by the way in which Mr. Mitsotakis "chose to attack the procedures to remove political party interests from the Public Administration". This is "a huge intervention, a great reform with which we are proceeding in complete agreement with the Institutions that are praising the Greek Government because it is the first time in the modern history of the Greek State that the initiative has been taken to get grips with the mentality that the state is the booty of the governing political party."
He called on the New Democracy President to explain more clearly his positions on redundancies in the public sector and his position on moving to private insurance. "That", he commented," if ever applied, would immediately put the viability of the insurance system at risk along with citizens' insurance rights and would lead to hundreds of insured people being on starvation pensions without health care."
"It is up to us to not let Greece turn backwards. Those who threw the country onto the rocks still seem to have a plan to return us to the harsh, indiscriminate, class choices that, on the pretext of the crisis, they were happy to implement during the great plunder 2010-2014."
He stressed that the "next day" Greece must find itself and will find itself free of neo-liberal dogmatism. Free from the logic of Social Darwinism and from a political system steeped in clientelist relationships, corruption and vested interests."
He noted that it is a key priority and commitment to the citizens "not only to extricate the country from the Memoranda, but to do our part to bring in a clean-up and justice." He made it clear that "we will not go back in any way and for anybody, how ever much pressure and how ever many threats we receive." "All cases will be investigated by the Judiciary, which is now left alone to concentrate on taking decisions according to the law, concerning everyone irrespective of how "high" they are."
Referring to the words of the Regional Governor of Central Macedonia earlier on the issue of the country's differences with FYROM, Alexis Tsipras stressed that "Central Macedonia and Thessaloniki in particular, wanting to be the pole and pillar of development, can only benefit from the resolution of our dispute with our Northern Neighbours."
He clarified that "this does not mean that we are going into a negotiation to achieve just any solution. We are negotiating with a sense of national responsibility and with the aim of achieving a solution that will safeguard our history and our heritage and at the same time put an end to irredentism from the other side."
"We have set the bar high in the negotiation. We want a solution that will last for all time, not a solution that runs the risk of collapsing very soon, so we have also made it a prerequisite, among other things, that the Neighbours’ Constitution is changed."
"We will do not what is defined by party political interest but what is defined by the national interest," the Prime Minister said, and called on the other side to step up to the situation, because for them it is a matter of existential importance "and I hope they will understand it and have the strength to take the difficult decisions that are, however, necessary."
GREEK INDEPENDENCE DAY 25th March : The Prime Minister’s Message
Greece is a country that seeks solidarity and peaceful co-existence with its neighbours, Prime Minister Alexis Tsipras said on Sunday on the occasion of Greece’s War of Independence celebration.
The Prime Minister was on the island of Psara from where he addressed the nation on Greece’s Independence Day from Ottoman rule.
“Greece is a pole of stability and guarantor of the stability and the safety in the region and cannot allow anyone to play games that set this stability at risk.”
“Greece is a country with strong defences, not to threaten but to safeguard the peace and stability in the region, to serve the principle of good neighbourly relations.”
“Our thoughts are with the Greek servicemen that are currently detained in Edirne and we are doing whatever is necessary to bring them back to Greece soon”.
“The next page of our history belongs to a Greece free from the wounds of the economic crisis and the suffocating supervision that we experienced over the last 8 years, a period that comes to an end in a few months” he said adding that “now is the moment that we must build the future of our country on solid foundations.”
“Greece is facing the future with optimism and is standing up as a modern, European and democratic country with social justice, equality and total respect to the freedoms of the individual.”
Greece is a country that seeks solidarity and peaceful co-existence with its neighbours, Prime Minister Alexis Tsipras said on Sunday on the occasion of Greece’s War of Independence celebration.
The Prime Minister was on the island of Psara from where he addressed the nation on Greece’s Independence Day from Ottoman rule.
“Greece is a pole of stability and guarantor of the stability and the safety in the region and cannot allow anyone to play games that set this stability at risk.”
“Greece is a country with strong defences, not to threaten but to safeguard the peace and stability in the region, to serve the principle of good neighbourly relations.”
“Our thoughts are with the Greek servicemen that are currently detained in Edirne and we are doing whatever is necessary to bring them back to Greece soon”.
“The next page of our history belongs to a Greece free from the wounds of the economic crisis and the suffocating supervision that we experienced over the last 8 years, a period that comes to an end in a few months” he said adding that “now is the moment that we must build the future of our country on solid foundations.”
“Greece is facing the future with optimism and is standing up as a modern, European and democratic country with social justice, equality and total respect to the freedoms of the individual.”
THE ECONOMY
On Tuesday, the European Stability Mechanism (ESM) approved the disbursement of a 5.7€ billion bailout loan sub-tranche to Greece.
The Finance Ministry plans to use the funds to repay debt (3.3€ billion) and State arrears (500€ million), as well as build a cash buffer that will help the country achieve a "clean exit" from its bailout programme in August 2018.
A further 1€ billion will be released in April, providing that State arrears have been cleared as agreed with international creditors; and the electronic auctioning of foreclosed properties continues smoothly.
The decision follows the Greek Government’s completion of all prior actions and the subsequent approval of the Supplemental Memorandum of Understanding by the ESM Board of Governors.
ESM Managing Director Klaus Regling said: "Today's decision by the ESM Board of Directors acknowledges the hard work by the Greek Government and Greek people in completing an extensive set of reforms. These include important actions in the field of privatisation, public revenue collection, tax policy and resolution of non-performing loans (NPLs). The fourth and final review of the programme has already started and I am confident that Greece is on track to successfully exit the ESM programme in August 2018, provided that the remaining reforms are implemented by the Greek Government".
The conclusion of the 4th Assessment of the bailout programme is now expected to be discussed during a July Eurogroup meeting.
On Tuesday, the European Stability Mechanism (ESM) approved the disbursement of a 5.7€ billion bailout loan sub-tranche to Greece.
The Finance Ministry plans to use the funds to repay debt (3.3€ billion) and State arrears (500€ million), as well as build a cash buffer that will help the country achieve a "clean exit" from its bailout programme in August 2018.
A further 1€ billion will be released in April, providing that State arrears have been cleared as agreed with international creditors; and the electronic auctioning of foreclosed properties continues smoothly.
The decision follows the Greek Government’s completion of all prior actions and the subsequent approval of the Supplemental Memorandum of Understanding by the ESM Board of Governors.
ESM Managing Director Klaus Regling said: "Today's decision by the ESM Board of Directors acknowledges the hard work by the Greek Government and Greek people in completing an extensive set of reforms. These include important actions in the field of privatisation, public revenue collection, tax policy and resolution of non-performing loans (NPLs). The fourth and final review of the programme has already started and I am confident that Greece is on track to successfully exit the ESM programme in August 2018, provided that the remaining reforms are implemented by the Greek Government".
The conclusion of the 4th Assessment of the bailout programme is now expected to be discussed during a July Eurogroup meeting.
From left, Turkish President Recep Tayyip Erdogan, Bulgarian Prime Minister Boyko Borissov, European Council President Donald Tusk and European Commission President Jean-Claude Juncker meeting at the EU-Turkey summit, in Varna, Bulgaria, on Monday.
GREECE-TURKEY Relations: The EU Response
From left, Turkish President Recep Tayyip Erdogan, Bulgarian Prime Minister Boyko Borissov, European Council President Donald Tusk and European Commission President Jean-Claude Juncker prepare for a photo prior to a meeting at the EU-Turkey summit, in Varna, Bulgaria, on Monday.
European leaders urged Turkey to comply with international laws and EU standards if the country wants to continue on a path to EU membership in the future.
The EU-Turkey leaders’ meeting took place on 26th March at the Evksinograd residence in Varna, Bulgaria and brought together Donald Tusk, President of the European Council, Jean-Claude Juncker, President of the European Commission, Boyko Borissov, Prime Minister of Bulgaria, and Recep Tayyip Erdoğan, President of Turkey.
The working dinner assesed matters of mutual interest and recent developments in Turkey, including the country’s illegal actions in the Eastern Mediterranean and the Aegean Sea and its involvement in Syria.
At their last EU summit on 22-23 March, EU leaders had called on Turkey to respect Cyprus’ sovereign rights to explore and exploit its natural resources, in line with EU and international law.
In this meeting they also recalled Turkey’s obligation to respect international law and good neighbourly relations, and normalize relations with all EU member states including the Republic of Cyprus.
The European Union also expressed its grave concern over the continued detention of two Greek soldiers and EU citizens in Turkey.
European Council President Tusk’s full statement:
Let me first of all thank Prime Minister Borissov for hosting us . Today’s EU-Turkey meeting reaffirms the importance both sides give to our relationship.
At our meeting in Brussels last year we agreed to intensify our dialogue at different levels. Since then a number of high level meetings have taken place between the EU and Turkey. This evening we took stock of where things stand and set out some parameters for the future.
On migration and support for refugees, the EU and Turkey remain very close partners. I would like to express our appreciation for the impressive work Turkey has been doing, and to sincerely thank Turkey and the Turkish people for hosting more than 3 million Syrian refugees these past years. The EU has lent substantial support to improve the lives of these refugees, and this evening we reaffirmed the European Union’s unwavering commitment to continue this support.
As an EU candidate country, Turkey has committed to developing and upholding the highest standards of democracy. We understand Turkey’s need to deal effectively with its security after the attempted coup and the terrorist attacks it has suffered. But we are concerned that some of the methods used undermine fundamental freedoms and the rule of law in Turkey. We encourage Turkey to work with the Council of Europe, of which Turkey has been a member longer than most EU Member States. The EU also stands ready to assist.
Good bilateral relations with EU Member States are also an important commitment within the accession process. We welcome positive progress in recent months with some of our Member States, but still have serious concerns about inter alia recent Turkish actions in the Eastern Mediterranean and the Aegean Sea as well as the detention of EU citizens. The European Union stands united behind the Republic of Cyprus regarding its right to explore and exploit its natural resources in its Exclusive Economic Zone. This is also important in view of our shared objective for the successful reunification of Cyprus for the benefit of both populations on the island, for Turkey, the European Union and for EU-Turkey relations.
We also had a discussion this evening on working together in the field of counter-terrorism. We want to expand our cooperation with regard to Foreign Terrorist Fighters; another area where we share important security interests.
We also expressed our concern with Turkey’s actions in Syria, in particular the situation in Afrin. Escalating violence and displacement in an already tragic and volatile situation must be avoided. And we recalled Turkey’s responsibility to ensure the protection of civilians and the delivery of humanitarian assistance to all those in need.
Let me end by thanking President Erdoğan for coming to Varna. Our meeting today demonstrated that while our relationship is going through difficult times, in areas where we do cooperate, we cooperate well. We reconfirm our readiness to keep up the dialogue and consultations and to work together to overcome current difficulties with a view to unleashing the potential of our partnership. I remain fully committed to assisting in this process. Thank you!
President of the European Commission Jean Claude Juncker called on the Turkish President to release the two Greek soldiers "before Orthodox Easter", while at the same time saying that "the issues of Greece and Cyprus will determine to a significant extent the relations between the EU and Turkey."
However, the meeting and the joint statements of the four made it clear that the EU-Turkey relationship remains difficult and Donald Tusk and Jean Claude Juncker admitted that the two sides did not reach "solid solutions".
Turkish President Erdogan reacted in equally tough language, accusing Europe of siding with the Greeks and Cypriots. "The language used at the conclusion of the Turkish summit on Thursday evening is the most aggressive and sharp in the history of Euro-Turkish relations," commented a European official.
From left, Turkish President Recep Tayyip Erdogan, Bulgarian Prime Minister Boyko Borissov, European Council President Donald Tusk and European Commission President Jean-Claude Juncker prepare for a photo prior to a meeting at the EU-Turkey summit, in Varna, Bulgaria, on Monday.
European leaders urged Turkey to comply with international laws and EU standards if the country wants to continue on a path to EU membership in the future.
The EU-Turkey leaders’ meeting took place on 26th March at the Evksinograd residence in Varna, Bulgaria and brought together Donald Tusk, President of the European Council, Jean-Claude Juncker, President of the European Commission, Boyko Borissov, Prime Minister of Bulgaria, and Recep Tayyip Erdoğan, President of Turkey.
The working dinner assesed matters of mutual interest and recent developments in Turkey, including the country’s illegal actions in the Eastern Mediterranean and the Aegean Sea and its involvement in Syria.
At their last EU summit on 22-23 March, EU leaders had called on Turkey to respect Cyprus’ sovereign rights to explore and exploit its natural resources, in line with EU and international law.
In this meeting they also recalled Turkey’s obligation to respect international law and good neighbourly relations, and normalize relations with all EU member states including the Republic of Cyprus.
The European Union also expressed its grave concern over the continued detention of two Greek soldiers and EU citizens in Turkey.
European Council President Tusk’s full statement:
Let me first of all thank Prime Minister Borissov for hosting us . Today’s EU-Turkey meeting reaffirms the importance both sides give to our relationship.
At our meeting in Brussels last year we agreed to intensify our dialogue at different levels. Since then a number of high level meetings have taken place between the EU and Turkey. This evening we took stock of where things stand and set out some parameters for the future.
On migration and support for refugees, the EU and Turkey remain very close partners. I would like to express our appreciation for the impressive work Turkey has been doing, and to sincerely thank Turkey and the Turkish people for hosting more than 3 million Syrian refugees these past years. The EU has lent substantial support to improve the lives of these refugees, and this evening we reaffirmed the European Union’s unwavering commitment to continue this support.
As an EU candidate country, Turkey has committed to developing and upholding the highest standards of democracy. We understand Turkey’s need to deal effectively with its security after the attempted coup and the terrorist attacks it has suffered. But we are concerned that some of the methods used undermine fundamental freedoms and the rule of law in Turkey. We encourage Turkey to work with the Council of Europe, of which Turkey has been a member longer than most EU Member States. The EU also stands ready to assist.
Good bilateral relations with EU Member States are also an important commitment within the accession process. We welcome positive progress in recent months with some of our Member States, but still have serious concerns about inter alia recent Turkish actions in the Eastern Mediterranean and the Aegean Sea as well as the detention of EU citizens. The European Union stands united behind the Republic of Cyprus regarding its right to explore and exploit its natural resources in its Exclusive Economic Zone. This is also important in view of our shared objective for the successful reunification of Cyprus for the benefit of both populations on the island, for Turkey, the European Union and for EU-Turkey relations.
We also had a discussion this evening on working together in the field of counter-terrorism. We want to expand our cooperation with regard to Foreign Terrorist Fighters; another area where we share important security interests.
We also expressed our concern with Turkey’s actions in Syria, in particular the situation in Afrin. Escalating violence and displacement in an already tragic and volatile situation must be avoided. And we recalled Turkey’s responsibility to ensure the protection of civilians and the delivery of humanitarian assistance to all those in need.
Let me end by thanking President Erdoğan for coming to Varna. Our meeting today demonstrated that while our relationship is going through difficult times, in areas where we do cooperate, we cooperate well. We reconfirm our readiness to keep up the dialogue and consultations and to work together to overcome current difficulties with a view to unleashing the potential of our partnership. I remain fully committed to assisting in this process. Thank you!
President of the European Commission Jean Claude Juncker called on the Turkish President to release the two Greek soldiers "before Orthodox Easter", while at the same time saying that "the issues of Greece and Cyprus will determine to a significant extent the relations between the EU and Turkey."
However, the meeting and the joint statements of the four made it clear that the EU-Turkey relationship remains difficult and Donald Tusk and Jean Claude Juncker admitted that the two sides did not reach "solid solutions".
Turkish President Erdogan reacted in equally tough language, accusing Europe of siding with the Greeks and Cypriots. "The language used at the conclusion of the Turkish summit on Thursday evening is the most aggressive and sharp in the history of Euro-Turkish relations," commented a European official.
RELIGIOUS EDUCATION IN SCHOOLS
The proposed changes in the teaching of Religions "shake the religious Christian consciousness to its foundation" and change the Orthodox character of the state. That was the decision of the majority of the Judges of the Supreme Court.
This report came from the SYRIZA Press Office.
In the end, does the legal judgement, the judicial interpretation of the Law, or does it not reflect the mark of our time?
The reflection on the rationale of the judicial judgments comes forcefully to centre stage after both the acquittal of Metropolitan Ambrosios by the One-Member Magistrate’s Court of Aigion on the charge of public incitement to violence or hatred on the basis on the anti-racist laws and after the decision of the majority of the Supreme Court, which considered unconstitutional the changes in the curriculum of Religious Lessons by Minister Nikos Filis.
As can be seen from the specific judgments, the interpretation of the law does not go hand in hand with the needs of modern times. On the contrary, their thinking seems to be in line with the perceptions of an anachronistic and obscurantist bloc in the Church, which makes it even more imperative for us to talk openly about the forthcoming revision of the Constitutional and the relationship between the State and the Church. It is imperative for us to reconsider basic concepts, such as neutrality, freedom of conscience, and religious freedom.
The changes in the teaching of Religions "shake the religious Christian consciousness to its foundation" and changes the Orthodox character of the state. That was what was decided by the majority of the Judges of the Supreme Court, accepting the appeal of Metropolitan Piraeus Seraphim of the Holy Metropolis of Piraeus, the Centre of Patristic Studies, and parents. Yet another proof that the Judiciary often supports the Church's interventions in education and beyond. Besides, the Piraeus Metropolitan's appeal against the Cohabitation Agreement, the complaint against the producers of the "Corpus Cristi" show, and his rhetoric on homosexuality, which he had equated with paedophilia and bestiality cannot be seen as chance events…
The rationale behind the decision on the changes in the teaching of Religions is that they are contrary to constitutional provisions and to the European Convention on Human Rights. According to the majority of the Judges, "the orthodox Christian conscience of the disciples in the mainstream religion of the Eastern Orthodox Church of Christ" is being undermined (...) and that "the contested decision should be concerned exclusively with Orthodox Christian students and should be designed towards the consolidation and continuation of the Orthodox Christian consciousness."
They underline that the programmes of study are deficient in the content of Orthodox Christian teaching, as there is no reference to the Holy Unity and Indivisible Trinity which all Greek constitutions refer to in their headings and that, in the Third Grade of Primary School, Jesus Christ is presented as a stranger, as an expected Messiah, as a teacher who all admire, as a dear friend, not as the saviour of the world.
The Minority of the Supreme Court: “The lesson does not have the character of a catechism”
The thinking of the five judges of the minority is following a totally different logic. They argue in favour of constitutionality, noting that "the contested activity (...) serves the purpose of providing a state religious education which is pluralist and evaluatively neutral, adequately presenting the teaching of Orthodoxy as provided by the Constitution and the provisions of the international conventions. It follows that the opposing pleas in law, which are based on a misinterpretation of the relevant provisions, must be dismissed as unfounded, while the further challenge to the substantive judgment and to the pedagogical choices of the administration is inadmissible and goes beyond judicial review, which in this case is borderline".
As they point out, the Constitution and the international conventions "do not in any way oblige the legislator to give Religious Lessons a confessional or catechistic character, since this would amount not to the "development"of religious consciousness in the above-mentioned sense, but to the "imposition" of religious consciousness with a specific content . The five judges who were in the Minority are Vice-President Spyridoula Chrysikopoulou and State Judges Ioannis Mantzouranis, Theodoros Aravanis, Michalis Pikramenos and Anastasia-Maria Papadimitriou.
Education Minister Kostas Gavroglou said “We are continuing our work. We will not succumb to obscurantism”. "Obscurantism has many social and political expressions. The objective of all this is to prevent the Government from proceeding with reforms of issues that involve an illness from which we have suffered for so many years,"said the Minister of Education, stressing that the Government will not succumb to threats and blackmail. Asked about possible changes to Religious Lessons this year, he explained that the Supreme Court’s decision concerns the previous year and does not play any role in the way of teaching this year. At the same time, he also referred to the effort to modernize other school lessons, such as History.
Invited to comment on the decision of the Supreme Court, Archbishop Ieronymos simply stated that the Church and the State would continue their cooperation. "We always respect court rulings. This issue will continue. We have agreed with the Ministry that the Church and the State should continue their co-operation so that this will eventually become a course-book."
The proposed changes in the teaching of Religions "shake the religious Christian consciousness to its foundation" and change the Orthodox character of the state. That was the decision of the majority of the Judges of the Supreme Court.
This report came from the SYRIZA Press Office.
In the end, does the legal judgement, the judicial interpretation of the Law, or does it not reflect the mark of our time?
The reflection on the rationale of the judicial judgments comes forcefully to centre stage after both the acquittal of Metropolitan Ambrosios by the One-Member Magistrate’s Court of Aigion on the charge of public incitement to violence or hatred on the basis on the anti-racist laws and after the decision of the majority of the Supreme Court, which considered unconstitutional the changes in the curriculum of Religious Lessons by Minister Nikos Filis.
As can be seen from the specific judgments, the interpretation of the law does not go hand in hand with the needs of modern times. On the contrary, their thinking seems to be in line with the perceptions of an anachronistic and obscurantist bloc in the Church, which makes it even more imperative for us to talk openly about the forthcoming revision of the Constitutional and the relationship between the State and the Church. It is imperative for us to reconsider basic concepts, such as neutrality, freedom of conscience, and religious freedom.
The changes in the teaching of Religions "shake the religious Christian consciousness to its foundation" and changes the Orthodox character of the state. That was what was decided by the majority of the Judges of the Supreme Court, accepting the appeal of Metropolitan Piraeus Seraphim of the Holy Metropolis of Piraeus, the Centre of Patristic Studies, and parents. Yet another proof that the Judiciary often supports the Church's interventions in education and beyond. Besides, the Piraeus Metropolitan's appeal against the Cohabitation Agreement, the complaint against the producers of the "Corpus Cristi" show, and his rhetoric on homosexuality, which he had equated with paedophilia and bestiality cannot be seen as chance events…
The rationale behind the decision on the changes in the teaching of Religions is that they are contrary to constitutional provisions and to the European Convention on Human Rights. According to the majority of the Judges, "the orthodox Christian conscience of the disciples in the mainstream religion of the Eastern Orthodox Church of Christ" is being undermined (...) and that "the contested decision should be concerned exclusively with Orthodox Christian students and should be designed towards the consolidation and continuation of the Orthodox Christian consciousness."
They underline that the programmes of study are deficient in the content of Orthodox Christian teaching, as there is no reference to the Holy Unity and Indivisible Trinity which all Greek constitutions refer to in their headings and that, in the Third Grade of Primary School, Jesus Christ is presented as a stranger, as an expected Messiah, as a teacher who all admire, as a dear friend, not as the saviour of the world.
The Minority of the Supreme Court: “The lesson does not have the character of a catechism”
The thinking of the five judges of the minority is following a totally different logic. They argue in favour of constitutionality, noting that "the contested activity (...) serves the purpose of providing a state religious education which is pluralist and evaluatively neutral, adequately presenting the teaching of Orthodoxy as provided by the Constitution and the provisions of the international conventions. It follows that the opposing pleas in law, which are based on a misinterpretation of the relevant provisions, must be dismissed as unfounded, while the further challenge to the substantive judgment and to the pedagogical choices of the administration is inadmissible and goes beyond judicial review, which in this case is borderline".
As they point out, the Constitution and the international conventions "do not in any way oblige the legislator to give Religious Lessons a confessional or catechistic character, since this would amount not to the "development"of religious consciousness in the above-mentioned sense, but to the "imposition" of religious consciousness with a specific content . The five judges who were in the Minority are Vice-President Spyridoula Chrysikopoulou and State Judges Ioannis Mantzouranis, Theodoros Aravanis, Michalis Pikramenos and Anastasia-Maria Papadimitriou.
Education Minister Kostas Gavroglou said “We are continuing our work. We will not succumb to obscurantism”. "Obscurantism has many social and political expressions. The objective of all this is to prevent the Government from proceeding with reforms of issues that involve an illness from which we have suffered for so many years,"said the Minister of Education, stressing that the Government will not succumb to threats and blackmail. Asked about possible changes to Religious Lessons this year, he explained that the Supreme Court’s decision concerns the previous year and does not play any role in the way of teaching this year. At the same time, he also referred to the effort to modernize other school lessons, such as History.
Invited to comment on the decision of the Supreme Court, Archbishop Ieronymos simply stated that the Church and the State would continue their cooperation. "We always respect court rulings. This issue will continue. We have agreed with the Ministry that the Church and the State should continue their co-operation so that this will eventually become a course-book."
Bishop Ambrosios to face re-trial
A Greek Orthodox bishop is facing a re-trial over comments in which he allegedly incited violence against gay people, after government officials criticized his initial acquittal.
A Greek court had acquitted Metropolitan Bishop Ambrosios of Kalavryta of a charged brought against him by nine gay men over comments in a 2015 blog post in which he directed the Greek faithful to “spit on them,” referring to gay people. Opposition parties united with the Government in criticism of the acquittal, and a senior prosecutor filed an appeal against the ruling on Monday.
Justice Minister Stavros Kontonis also requested transcripts of Kalavryta’s initial trial to check to see if their were any errors in the process which would justify a re-trial. If convicted of incitement of violence against gay people, Bishop Ambrosios could face a fine of up to 20,000€ and a maximum of three years in prison.
Bishop Ambrosios railed in the 2015 blog post against a Greek politician who he said openly supported homosexuality.
“Homosexuality is a diversion from the Laws of Nature! It is a social felony! It is a sin! Those who either experience it or support it are not normal people! It’s a scum of society,” a translation of Ambrosios’ blog post read (emphasis his).
Bishop Ambrosios directed his readers later in the post to remember the words of Lech Walesa, with regard to how they should treat those who support homosexuality and atheism.
“Hey, then, these scoundrels, spit on them! Discard them! Blacken(sic) them! They are not people! They are abodes of nature! Mental and spiritual suffering(sic)! They are people with mental disorders(sic),” he quoted Lech Walesa as saying.
Bishop Ambrosios is known for taking strong public stances against homosexuality and transgenderism and leading churches in opposition against legislation favouring LGBT individuals. He directed churches in his diocese to protest against the passing of a law in October of 2017 that allowed Greek citizens to identify as whichever gender they choose.
“It is an outrageous inspiration for someone to change his gender in a few minutes, with a simple declaration, so contrary to what God has gifted people with … whoever has ‘gender dysphoria’ is mentally ill,” a statement approved by the orthodox leaders of Kalavryta read concerning the law.
A Greek Orthodox bishop is facing a re-trial over comments in which he allegedly incited violence against gay people, after government officials criticized his initial acquittal.
A Greek court had acquitted Metropolitan Bishop Ambrosios of Kalavryta of a charged brought against him by nine gay men over comments in a 2015 blog post in which he directed the Greek faithful to “spit on them,” referring to gay people. Opposition parties united with the Government in criticism of the acquittal, and a senior prosecutor filed an appeal against the ruling on Monday.
Justice Minister Stavros Kontonis also requested transcripts of Kalavryta’s initial trial to check to see if their were any errors in the process which would justify a re-trial. If convicted of incitement of violence against gay people, Bishop Ambrosios could face a fine of up to 20,000€ and a maximum of three years in prison.
Bishop Ambrosios railed in the 2015 blog post against a Greek politician who he said openly supported homosexuality.
“Homosexuality is a diversion from the Laws of Nature! It is a social felony! It is a sin! Those who either experience it or support it are not normal people! It’s a scum of society,” a translation of Ambrosios’ blog post read (emphasis his).
Bishop Ambrosios directed his readers later in the post to remember the words of Lech Walesa, with regard to how they should treat those who support homosexuality and atheism.
“Hey, then, these scoundrels, spit on them! Discard them! Blacken(sic) them! They are not people! They are abodes of nature! Mental and spiritual suffering(sic)! They are people with mental disorders(sic),” he quoted Lech Walesa as saying.
Bishop Ambrosios is known for taking strong public stances against homosexuality and transgenderism and leading churches in opposition against legislation favouring LGBT individuals. He directed churches in his diocese to protest against the passing of a law in October of 2017 that allowed Greek citizens to identify as whichever gender they choose.
“It is an outrageous inspiration for someone to change his gender in a few minutes, with a simple declaration, so contrary to what God has gifted people with … whoever has ‘gender dysphoria’ is mentally ill,” a statement approved by the orthodox leaders of Kalavryta read concerning the law.
PLASTIC BAG PRODUCTION PLUMMETS
Greek plastic bag industries are reporting an annual decline in output by 80% in the first quarter of the year as a result of the environmental tax plastic bags introduced from January 1st 2018.
Supermarkets and other retail outlets charge between four and nine euro cents per plastic bag, including value-added tax and depending on their size.
Ioannis Kaselimis, a representative of the Association of Hellenic Plastic Industries (SVPE) said that after the harmonization of the national legislation with the European Union directives, the industries that continue to produce plastic bags do so only when they have a specific delivery date for their orders.
While there is no environmental tax imposed on thicker plastic bags for which retailers are allowed to charge what they like, their orders are not enough to offset the losses from the dramatic decline in the production of the conventional, thin plastic bags. According to plastic industry insiders, it is only medium-sized supermarket chains that have shown an increase in orders for the thicker bags.
Greek plastic bag industries are reporting an annual decline in output by 80% in the first quarter of the year as a result of the environmental tax plastic bags introduced from January 1st 2018.
Supermarkets and other retail outlets charge between four and nine euro cents per plastic bag, including value-added tax and depending on their size.
Ioannis Kaselimis, a representative of the Association of Hellenic Plastic Industries (SVPE) said that after the harmonization of the national legislation with the European Union directives, the industries that continue to produce plastic bags do so only when they have a specific delivery date for their orders.
While there is no environmental tax imposed on thicker plastic bags for which retailers are allowed to charge what they like, their orders are not enough to offset the losses from the dramatic decline in the production of the conventional, thin plastic bags. According to plastic industry insiders, it is only medium-sized supermarket chains that have shown an increase in orders for the thicker bags.
European Union condemns Turkish "unlawful acts"
24.03.2018
For the first time, the European Council at the end of its meeting included in its final text a strong condemnation of Turkey's unlawful acts in the Aegean and the Eastern Mediterranean. The text expressed a clear position of support for both Greece and Cyprus over Turkey's provocation and the demand for immediate release of the two Greek soldiers.
Greek Foreign Minister Nikos Kotzias said in a statement after the Foreign Affairs Council meeting in Brussels: "The European partners show their solidarity and sympathy. As you know, Chancellor Merkel has already intervened with Mr Erdogan himself. I hope and I want to believe that this will have a positive outcome in the sense that Turkey will not seek and will not continue to use an everyday event on the border between the two states as a weapon,"the Greek minister said.
There was also a commitment from European Commission President Jean-Claude Juncker and European Council President Donald Tusk to raise the issue of two Greek soldiers with Turkey's President Tayyip Erdogan at the Varna Summit on Monday 26th March. Both demanded clear guarantees on the part of Turkey about respecting the sovereign rights of Greece and the return of the two Greek soldiers.
Greek Foreign Minister Nikos Kotzias said in a statement after the Foreign Affairs Council meeting in Brussels: "The European partners show their solidarity and sympathy. As you know, Chancellor Merkel has already intervened with Mr Erdogan himself. I hope and I want to believe that this will have a positive outcome in the sense that Turkey will not seek and will not continue to use an everyday event on the border between the two states as a weapon,"the Greek minister said.
There was also a commitment from European Commission President Jean-Claude Juncker and European Council President Donald Tusk to raise the issue of two Greek soldiers with Turkey's President Tayyip Erdogan at the Varna Summit on Monday 26th March. Both demanded clear guarantees on the part of Turkey about respecting the sovereign rights of Greece and the return of the two Greek soldiers.
Novartis Scandal
New Democracy and all the opposition parties halted their participation in the Parliamentary Commission of Preliminary Inquiry into the Novartis scandal, maintaining that the protected witnesses should be summoned to the Commission and that the case file should not be sent to the Judiciary for it to continue the investigation.
The Prime Minister's press office released this statement:
"New Democracy, under the weight of the storm of revelations that are part of in the Novartis investigation, takes to its feet out of the Parliamentary Commission of Preliminary Inquiry, since it understands that its line of defence is collapsing and the band is tightening for all those who want to protect themselves from the consequences of the law.
"The planned and premeditated withdrawal of New Democracy and those who followed it, is another move of cheap diversion with the aim of causing a sensation and covering up the unprecedented scandal
"The disorderly and unexpected flight of New Democracy from the constitutionally mandated procedure of the Commission comes after its failure to create unnecessary delay and procrastinations that could jeopardize the very elucidation of the case itself.
Whatever New Democracy and its President Mr. Mitsotakis concocts, one thing is certain: The investigation of the case will proceed with respect for the constitutional and procedural rules so that those responsible are brought before the competent courts and are held accountable for the abuse of power and the squandering of public money."
The Centre for Disease Control and Prevention
In his submission to the Parliamentary Commission of Preliminary Inquiry into the scandals in the health sector, the Deputy Health Minister Pavlos Polakis revealed that 230€ million is missing from the funds of the Centre for Disease Control and Prevention [ΚΕΕΛΠΝΟ]. This amount has been going missing since 2007, he said.
The data was revealed in the last 10 days when the Health Ministry managed to collect together all the balance sheets.
"ΚΕΕΛΠΝΟ received 750€ million and spent 522€ million. The cash balance of the ΚΕΕΛΠΝΟ accounts, which strangely enough are many in number, is 3,173,703€. Where is the rest? This requires immediate investigation by prosecutors. Where is the rest? Where did it go? Where are the 230€ million. I have learned that, particularly in recent years because in 2011 the chartered auditors stopped going, 2012, 2013 and 2014 are a black hole."
The Deputy Health Minister also made the accusation that supplies and services were paid for twice, when he spoke about a "gang" within ΚΕΕΛΠΝΟ.
New Democracy and all the opposition parties halted their participation in the Parliamentary Commission of Preliminary Inquiry into the Novartis scandal, maintaining that the protected witnesses should be summoned to the Commission and that the case file should not be sent to the Judiciary for it to continue the investigation.
The Prime Minister's press office released this statement:
"New Democracy, under the weight of the storm of revelations that are part of in the Novartis investigation, takes to its feet out of the Parliamentary Commission of Preliminary Inquiry, since it understands that its line of defence is collapsing and the band is tightening for all those who want to protect themselves from the consequences of the law.
"The planned and premeditated withdrawal of New Democracy and those who followed it, is another move of cheap diversion with the aim of causing a sensation and covering up the unprecedented scandal
"The disorderly and unexpected flight of New Democracy from the constitutionally mandated procedure of the Commission comes after its failure to create unnecessary delay and procrastinations that could jeopardize the very elucidation of the case itself.
Whatever New Democracy and its President Mr. Mitsotakis concocts, one thing is certain: The investigation of the case will proceed with respect for the constitutional and procedural rules so that those responsible are brought before the competent courts and are held accountable for the abuse of power and the squandering of public money."
The Centre for Disease Control and Prevention
In his submission to the Parliamentary Commission of Preliminary Inquiry into the scandals in the health sector, the Deputy Health Minister Pavlos Polakis revealed that 230€ million is missing from the funds of the Centre for Disease Control and Prevention [ΚΕΕΛΠΝΟ]. This amount has been going missing since 2007, he said.
The data was revealed in the last 10 days when the Health Ministry managed to collect together all the balance sheets.
"ΚΕΕΛΠΝΟ received 750€ million and spent 522€ million. The cash balance of the ΚΕΕΛΠΝΟ accounts, which strangely enough are many in number, is 3,173,703€. Where is the rest? This requires immediate investigation by prosecutors. Where is the rest? Where did it go? Where are the 230€ million. I have learned that, particularly in recent years because in 2011 the chartered auditors stopped going, 2012, 2013 and 2014 are a black hole."
The Deputy Health Minister also made the accusation that supplies and services were paid for twice, when he spoke about a "gang" within ΚΕΕΛΠΝΟ.
Electricity Connection in Cyclades
On Monday, on Syros, Prime Minister Alexis Tsipras formally launched the power interconnection of a group of Cyclades islands – including Syros, Tinos, Paros and Ios – with Greece’s mainland grid, a linkup he described as "a project of historic significance."
PM Tsipras argued that linking the electricity networks via underwater cables will save money in energy production, ensure the sufficiency of supply to those islands, and have a favourable environmental footprint. Myconos is next in line.
The project, valued at 245€ million, will be funded by Greek national funds, EU funding, and European Investment Bank funds, and the annual benefit is projected at 80€ million, according to Government figures.
PM Tsipras said his Government had managed to launch a project that was for years mired in bureaucratic delays and which will offer the Cycladic islands an important push toward development, in an environmentally proper framework.
The project will significantly reduce the subsidies paid by all consumers – the so-called Social Benefits Services charge on bills nationwide - for the electrification of the islands.
The connection will provide adequate electricity to the popular Cycladic islands during the peak tourist summer months, while phasing out costly local plants.
“The Cycladic interconnection is a very important transmission project for the Greek electricity transmission system from both the technical and economic point of view. It is the first of its kind in terms of the number of the interconnected islands, the length and depth of the submarine cables, the technologies utilised and the transfer capacity required. The project is under construction and refers to the connection of the islands of Andros, Tinos, Syros, Mykonos, Paros and Naxos to the mainland at Lavrion in order to ensure the secure and reliable supply of the islands; it will also allow the gradual dismantling of the existing local power plants in the long-term. The project offers high economic benefits as it allows the substitution of expensive electricity produced by the local power plants by significantly cheaper electricity transferred from the mainland,” according to a study by HRO-Cigre, the International Council for Large Electric-Power Systems.
On Monday, on Syros, Prime Minister Alexis Tsipras formally launched the power interconnection of a group of Cyclades islands – including Syros, Tinos, Paros and Ios – with Greece’s mainland grid, a linkup he described as "a project of historic significance."
PM Tsipras argued that linking the electricity networks via underwater cables will save money in energy production, ensure the sufficiency of supply to those islands, and have a favourable environmental footprint. Myconos is next in line.
The project, valued at 245€ million, will be funded by Greek national funds, EU funding, and European Investment Bank funds, and the annual benefit is projected at 80€ million, according to Government figures.
PM Tsipras said his Government had managed to launch a project that was for years mired in bureaucratic delays and which will offer the Cycladic islands an important push toward development, in an environmentally proper framework.
The project will significantly reduce the subsidies paid by all consumers – the so-called Social Benefits Services charge on bills nationwide - for the electrification of the islands.
The connection will provide adequate electricity to the popular Cycladic islands during the peak tourist summer months, while phasing out costly local plants.
“The Cycladic interconnection is a very important transmission project for the Greek electricity transmission system from both the technical and economic point of view. It is the first of its kind in terms of the number of the interconnected islands, the length and depth of the submarine cables, the technologies utilised and the transfer capacity required. The project is under construction and refers to the connection of the islands of Andros, Tinos, Syros, Mykonos, Paros and Naxos to the mainland at Lavrion in order to ensure the secure and reliable supply of the islands; it will also allow the gradual dismantling of the existing local power plants in the long-term. The project offers high economic benefits as it allows the substitution of expensive electricity produced by the local power plants by significantly cheaper electricity transferred from the mainland,” according to a study by HRO-Cigre, the International Council for Large Electric-Power Systems.
The Government's Development Plan
The outline of the Government's Development Plan is expected to be officially presented to the Eurogroup on April 27th 2018, said Deputy Minister of Economy and Development and Development Coordinator Alexis Haritsis.
In an interview with euro2day, he stressed that "we must overcome past policies and practices that have harmed the country's economy," adding that "we must not go back to obsolete models and practices of the past."
As he notes, developing the development strategy is an open consultation of bodies, society and parties. It is already being discussed at the Regional Conferences and will be submitted to Parliament House. "With the end of the Programme, the economy is moving into a new phase, where the biggest challenge is to design sustainable and equitable development."
He acknowledged the impact of the crisis and the destruction of the Greek economy, but noted that the inflow of €4 billion in foreign direct investment in 2017 will bring the country to pre-crisis levels. "Obviously not enough. However, it is an indication that the country is returning as an investment destination," he said.
The Deputy Minister of the Economy says investors are interested in knowing the country's development plan, something that was missing in previous years.
The Development Plan
Government sources said the Plan will simultaneously address four audiences (the Institutions, the markets, creditor states and Greek society) and will reflect the Ggovernment's willingness to ensure fiscal stability and to pursue structural reforms at state level and in the economy.
A strong social pillar with interventions in support of labour and the welfare state will send the message that the country is turning the page after the expiration of the Memoranda. This will create a sense of hope and perspective in society, and will contain specific targets for the reduction of unemployment.
The main focus of the strategy is human capital as a means for the gradual upgrading of the Greek economy in the production of increased value-added products and services, in the direction of the fourth industrial revolution and generally its transformation into an advanced knowledge economy.
Challenges
Key challenges are to strengthen the productive potential of the Greek economy, to increase employment, with particular emphasis on the integration of human resources - especially those with special expertise - into the economy, the reversal of the Greek migration trend, especially of scientific personnel, stopping the further reduction of the country's population, the improvement of social and regional cohesion, the reduction of poverty and environmental sustainability. These challenges, if properly planned for, constitute a fully coherent rectifying set of national-social and environmental interventions for the future of the country and include:
1. Orientation towards a new production model by (a) enhancing the technological content of products and services; (b) switching to internationally marketable products and products of higher added value; and (c) the effective integration of skilled human resources;
2. Enhanced business visibility
3. Strengthened domestic production potential through the creation of integrated value chains
4. Strengthened business networks and clusters of businesses
5. Strengthened industry and manufacturing
Foreign investment
Key instruments for achieving the strategy objectives to be included in the Development Plan are:
- structural reforms to improve the economic environment
- increasing investment, including Foreign Direct Investment (FDI)
- improving adequacy of the financial system
- implementing actions to tackle unemployment
- developing Public Private Partnerships (PPPs) by making more effective use of public property
- developing the social economy
- upgrading Public Administration and Education
- integrated development planning, coherent coordination, effective implementation, ongoing
monitoring and evaluation in the context of a fully upgraded and reformed effective state.
The outline of the Government's Development Plan is expected to be officially presented to the Eurogroup on April 27th 2018, said Deputy Minister of Economy and Development and Development Coordinator Alexis Haritsis.
In an interview with euro2day, he stressed that "we must overcome past policies and practices that have harmed the country's economy," adding that "we must not go back to obsolete models and practices of the past."
As he notes, developing the development strategy is an open consultation of bodies, society and parties. It is already being discussed at the Regional Conferences and will be submitted to Parliament House. "With the end of the Programme, the economy is moving into a new phase, where the biggest challenge is to design sustainable and equitable development."
He acknowledged the impact of the crisis and the destruction of the Greek economy, but noted that the inflow of €4 billion in foreign direct investment in 2017 will bring the country to pre-crisis levels. "Obviously not enough. However, it is an indication that the country is returning as an investment destination," he said.
The Deputy Minister of the Economy says investors are interested in knowing the country's development plan, something that was missing in previous years.
The Development Plan
Government sources said the Plan will simultaneously address four audiences (the Institutions, the markets, creditor states and Greek society) and will reflect the Ggovernment's willingness to ensure fiscal stability and to pursue structural reforms at state level and in the economy.
A strong social pillar with interventions in support of labour and the welfare state will send the message that the country is turning the page after the expiration of the Memoranda. This will create a sense of hope and perspective in society, and will contain specific targets for the reduction of unemployment.
The main focus of the strategy is human capital as a means for the gradual upgrading of the Greek economy in the production of increased value-added products and services, in the direction of the fourth industrial revolution and generally its transformation into an advanced knowledge economy.
Challenges
Key challenges are to strengthen the productive potential of the Greek economy, to increase employment, with particular emphasis on the integration of human resources - especially those with special expertise - into the economy, the reversal of the Greek migration trend, especially of scientific personnel, stopping the further reduction of the country's population, the improvement of social and regional cohesion, the reduction of poverty and environmental sustainability. These challenges, if properly planned for, constitute a fully coherent rectifying set of national-social and environmental interventions for the future of the country and include:
1. Orientation towards a new production model by (a) enhancing the technological content of products and services; (b) switching to internationally marketable products and products of higher added value; and (c) the effective integration of skilled human resources;
2. Enhanced business visibility
3. Strengthened domestic production potential through the creation of integrated value chains
4. Strengthened business networks and clusters of businesses
5. Strengthened industry and manufacturing
Foreign investment
Key instruments for achieving the strategy objectives to be included in the Development Plan are:
- structural reforms to improve the economic environment
- increasing investment, including Foreign Direct Investment (FDI)
- improving adequacy of the financial system
- implementing actions to tackle unemployment
- developing Public Private Partnerships (PPPs) by making more effective use of public property
- developing the social economy
- upgrading Public Administration and Education
- integrated development planning, coherent coordination, effective implementation, ongoing
monitoring and evaluation in the context of a fully upgraded and reformed effective state.
Highways - EU co-financed public-private partnerships (PPPs) under scrutiny
In its report, the European Court of Auditors identified significant problems with the EU co-financed public-private partnerships (PPPs) for three Greek motorways in the period 2000-2014.
Cost per kilometre increased by up to 69% from the original budget, at the same time there was a 55% reduction in the scope of projects. There was inadequate preparation of projects by public sector partners and, above all, contracts were signed with private contractors before major problems had been resolved.
The report concerns EU-funded PPP projects in the EU for the period 2000-2014 and looked at data from 12 projects in 4 Member States [Greece, France, Ireland and Spain], which accounted for 70% of the total infrastructure expenditure at European level.
Greece was by far the largest recipient of EU contributions for PPP projects, having received 59% of the EU-wide total, or 3.3€ billion euro.
"Public-Private Partnerships have multiple weaknesses and limited benefits," the Report said. "They can not be considered as an economically viable option for the construction of public infrastructure projects."
Overall, the European auditors found that while PPPs enabled public authorities to conclude large-scale infrastructure contracts through a single procedure, this increased the risk of insufficient competition and thus weakened the negotiating position of the contracting authorities.
At a press conference in Brussels, Mr Oskar Herics, Member of the European Court of Auditors and responsible for the report, said "For the completion of the five motorways audited in Greece and Spain, additional public funds of almost 1.5€ billions were expended. About 30% of these funds (€422 million) came from the EU ".
In addition, Mr Herics pointed to problems in the legal regulatory framework, which only applies in Greece to projects valued at less than €500 million, which effectively exempts major infrastructure projects such as the three motorways.
In its report, the European Court of Auditors identified significant problems with the EU co-financed public-private partnerships (PPPs) for three Greek motorways in the period 2000-2014.
Cost per kilometre increased by up to 69% from the original budget, at the same time there was a 55% reduction in the scope of projects. There was inadequate preparation of projects by public sector partners and, above all, contracts were signed with private contractors before major problems had been resolved.
The report concerns EU-funded PPP projects in the EU for the period 2000-2014 and looked at data from 12 projects in 4 Member States [Greece, France, Ireland and Spain], which accounted for 70% of the total infrastructure expenditure at European level.
Greece was by far the largest recipient of EU contributions for PPP projects, having received 59% of the EU-wide total, or 3.3€ billion euro.
"Public-Private Partnerships have multiple weaknesses and limited benefits," the Report said. "They can not be considered as an economically viable option for the construction of public infrastructure projects."
Overall, the European auditors found that while PPPs enabled public authorities to conclude large-scale infrastructure contracts through a single procedure, this increased the risk of insufficient competition and thus weakened the negotiating position of the contracting authorities.
At a press conference in Brussels, Mr Oskar Herics, Member of the European Court of Auditors and responsible for the report, said "For the completion of the five motorways audited in Greece and Spain, additional public funds of almost 1.5€ billions were expended. About 30% of these funds (€422 million) came from the EU ".
In addition, Mr Herics pointed to problems in the legal regulatory framework, which only applies in Greece to projects valued at less than €500 million, which effectively exempts major infrastructure projects such as the three motorways.
A court in Aigion on Friday acquitted Amvrosios, Bishop of Aigialeia and Kalavryta, on charges of hate speech and incitement to violence against homosexuals.
A court in Aigion on Friday acquitted Amvrosios, Bishop of Aigialeia and Kalavryta, on charges of hate speech and incitement to violence against homosexuals.
The charges were prompted by an internet posting in 2015, when Greece’s Parliament was in the process of granting legal status to same-sex unions.
In 2015 Amvrosios had written on his blog that the faithful “should spit on the gays”, calling homosexuals “abominations of nature.” In the blog the Bishop had posted a picture from the Gay Pride Parade showing a gay man dressed as a priest. “If I had a gun and the law would allow it, I would use it to get it over with.”
On January 16, 2016, nine citizens filed a lawsuit against the Bishop for public incitement to violence or hatred under Article 1 of Act 4285/2014 on combating racism but also for abuse of ecclesiastical office in accordance with Article 196 of the Penal Code, by which “a religious officer who in the practice of his work or publicly and in his capacity causes or excites citizens to anger against state authority or other citizens is punished by imprisonment for up to three years.”
Among other things, Metropolitan Amvrosios of Kalavryta wrote: “Do not go near them! Do not listen to them! Do not trust them! They are the damned members of society! It is impermissible for some disgraced members of society to defend publicly the passions that touch their souls…Spit on those disgraced people, renounce them! They are monstrosities of nature! They are psychically and spiritually unwell! They are people with a mental disturbance…They are three times worse, and more dangerous, than those who live in mental asylums.”
In a tense hearing lasting nearly nine hours, leading Greek human-rights campaigners and academics gave evidence for the prosecution. Nikos Alivizatos, a constitutional-law professor, said the bishop’s vocabulary was “the language of Hitler...[the language] we encounter in a regime of ayatollahs...” He said the bishop had brought embarrassment to Greece with his extreme positions, for example by saying that non-religious marriage was the moral equivalent of prostitution. Leading gay-rights activists testified that the bishop’s attack had compounded their feelings of insecurity and social exclusion.
The bishop himself seemed little concerned by perceptions of bigotry or intemperance. At one point during the hearing he said: “Spitting on them is the least of it, if I had a gun and I was permitted by the law, I would use it and we would finish things off.” He described fellow bishops who had spoken in somewhat more charitable terms about gay people as “betrayers of Orthodoxy”.
But the bishop’s defence team insisted that comments by their client that seemed to attack gay people were in fact directed at the politicians who were voting for civil partnerships.
This line of argument was accepted, and a representative of the state prosecution service urged acquittal. That recommendation was followed.
According to PatrasTimes news website reporting from the court, the Bishop claimed that “no one spat on anyone and no one attacked anyone because I said it. I should not be accused.”
“God despises all those people,” Amvrosios said about homosexuals in his reply in court.
"The acquittal of Amvrosios, the Metropolitan of Aegialia and Kalavryta, by the Court of Aigion confirms that the policy of discrimination is alive and well in the field of Justice," the press office of SYRIZA said in a statement.
And, the statement went on, "Why was it that not only was he acquitted for the remarks he used against homosexuals, which constitutes a provocative violation of the anti-racist law on public incitement to violence or hatred, but also why did the Court tolerate the repeated preaching of hatred, not even giving consideration to the Metropolitan's own confession that he would want to use not only verbal but also physical violence."
"No ordinary citizen would enjoy such immunity from justice," the official SYRIZA statement said, adding: "Once again, it is confirmed that when prejudices and hatred are dressed in a religious mantle, the mixture becomes so explosive that Justice must stand up."
Justice Minister Stavros Kontonis on Monday requested the minutes of the trial, which include the rationale of the decision of the Unified Elementary Court of Aigion to acquit Ambrosios. for the Metropolitan of Kalavrita and Aegialia.
In a radio interview for Athens 9,84, Minister Kontonis said "Reasonable questions are being raised on the basis of journalistic information and reporting, so tomorrow I will ask for the minutes of the trial, including the rationale for the decision to find out exactly what happened and how the Court ended up in this crisis."
"Justice is the supreme protector and guardian of human rights. However, if there are mistakes in this case we will see and in any case we will weigh the data. In addition, court rulings are known to be checked by the competent judicial authorities."
A court in Aigion on Friday acquitted Amvrosios, Bishop of Aigialeia and Kalavryta, on charges of hate speech and incitement to violence against homosexuals.
The charges were prompted by an internet posting in 2015, when Greece’s Parliament was in the process of granting legal status to same-sex unions.
In 2015 Amvrosios had written on his blog that the faithful “should spit on the gays”, calling homosexuals “abominations of nature.” In the blog the Bishop had posted a picture from the Gay Pride Parade showing a gay man dressed as a priest. “If I had a gun and the law would allow it, I would use it to get it over with.”
On January 16, 2016, nine citizens filed a lawsuit against the Bishop for public incitement to violence or hatred under Article 1 of Act 4285/2014 on combating racism but also for abuse of ecclesiastical office in accordance with Article 196 of the Penal Code, by which “a religious officer who in the practice of his work or publicly and in his capacity causes or excites citizens to anger against state authority or other citizens is punished by imprisonment for up to three years.”
Among other things, Metropolitan Amvrosios of Kalavryta wrote: “Do not go near them! Do not listen to them! Do not trust them! They are the damned members of society! It is impermissible for some disgraced members of society to defend publicly the passions that touch their souls…Spit on those disgraced people, renounce them! They are monstrosities of nature! They are psychically and spiritually unwell! They are people with a mental disturbance…They are three times worse, and more dangerous, than those who live in mental asylums.”
In a tense hearing lasting nearly nine hours, leading Greek human-rights campaigners and academics gave evidence for the prosecution. Nikos Alivizatos, a constitutional-law professor, said the bishop’s vocabulary was “the language of Hitler...[the language] we encounter in a regime of ayatollahs...” He said the bishop had brought embarrassment to Greece with his extreme positions, for example by saying that non-religious marriage was the moral equivalent of prostitution. Leading gay-rights activists testified that the bishop’s attack had compounded their feelings of insecurity and social exclusion.
The bishop himself seemed little concerned by perceptions of bigotry or intemperance. At one point during the hearing he said: “Spitting on them is the least of it, if I had a gun and I was permitted by the law, I would use it and we would finish things off.” He described fellow bishops who had spoken in somewhat more charitable terms about gay people as “betrayers of Orthodoxy”.
But the bishop’s defence team insisted that comments by their client that seemed to attack gay people were in fact directed at the politicians who were voting for civil partnerships.
This line of argument was accepted, and a representative of the state prosecution service urged acquittal. That recommendation was followed.
According to PatrasTimes news website reporting from the court, the Bishop claimed that “no one spat on anyone and no one attacked anyone because I said it. I should not be accused.”
“God despises all those people,” Amvrosios said about homosexuals in his reply in court.
"The acquittal of Amvrosios, the Metropolitan of Aegialia and Kalavryta, by the Court of Aigion confirms that the policy of discrimination is alive and well in the field of Justice," the press office of SYRIZA said in a statement.
And, the statement went on, "Why was it that not only was he acquitted for the remarks he used against homosexuals, which constitutes a provocative violation of the anti-racist law on public incitement to violence or hatred, but also why did the Court tolerate the repeated preaching of hatred, not even giving consideration to the Metropolitan's own confession that he would want to use not only verbal but also physical violence."
"No ordinary citizen would enjoy such immunity from justice," the official SYRIZA statement said, adding: "Once again, it is confirmed that when prejudices and hatred are dressed in a religious mantle, the mixture becomes so explosive that Justice must stand up."
Justice Minister Stavros Kontonis on Monday requested the minutes of the trial, which include the rationale of the decision of the Unified Elementary Court of Aigion to acquit Ambrosios. for the Metropolitan of Kalavrita and Aegialia.
In a radio interview for Athens 9,84, Minister Kontonis said "Reasonable questions are being raised on the basis of journalistic information and reporting, so tomorrow I will ask for the minutes of the trial, including the rationale for the decision to find out exactly what happened and how the Court ended up in this crisis."
"Justice is the supreme protector and guardian of human rights. However, if there are mistakes in this case we will see and in any case we will weigh the data. In addition, court rulings are known to be checked by the competent judicial authorities."
Greece - Turkey
Tensions Rising
17.3.2018
Protesters have taken to the streets of northern Greece demanding the release of two Greek soldiers detained by Turkey, amid rising tensions between the two countries.
Sgt. Dimitris Kouklatzis, 27, and Lt. Angelos Mitretodis, 25, were seized 11 days ago after allegedly being found in a “forbidden military zone” deep in Turkish territory. The soldiers say they inadvertently strayed across the frontier in bad weather.
Turkey’s state-owned Anadolu news agency said the soldiers were detained on grounds of attempted military espionage and entering a prohibited military zone. Another news agency, DHA, said the court ruled that data on their phones was to be investigated.
The incident took place during a normal patrol in the forest area of Kastanies at Evros.
The soldiers told the court that they found themselves on the Turkish side after following footprints in the snow and that they meant to send the images they took on their phones to senior officers, the news agency said.
“Yesterday’s incident was the result of a mistake. The two Greek officers diverged from their route because of the bad weather in the area, and found themselves, I repeat, by mistake, in Turkish territory,” Mr.Tzanakopoulos said. “We are in consultation with Turkish authorities for a prompt resolution of the matter.” “Legal processes in Turkey will be put in motion swiftly and we expect the return of the two Greeks to our country”.
Defence Minister Kammenos said the arrests had aggravated already strained ties between the neighbouring countries. Tensions between Greece and Turkey, NATO allies but regional rivals, had reached the point where the two nations were “very close to a fatal accident”, the Minister told the French daily Libération at the weekend, referring to repeated air and sea violations of Greek territory by Turkish forces.
In comments to the German newspaper Die Zeit, Turkey’s Foreign Minister, Mevlüt Çavuşoğlu, said the Turkish Judiciary was still trying to establish whether the soldiers entered Turkey deliberately, confirming fears that the two soldiers could be charged with espionage.
“They crossed the border illegally and it is up to the prosecutors and judges to discover what is behind this case. Did it happen inadvertently or was it deliberate? They want to be sure,” Minister Çavuşoğlu said when asked when the men would be released.
The Greek Government raised the case with NATO and the United Nations last week, asking both to intervene. Internationalising the case further, Minister Kammenos told his Romanian counterpart during his visit to Bucharest that Greece was seeking support for the “immediate release of the NATO, European and Greek servicemen.”
At a meeting in Brussels, Defence Minister Kammenos told NATO Defence Ministers that the arrest of the two Greek soldiers was also a problem for the European Union and NATO.
“Turkey is a member of NATO and an ally of Greece in NATO, and such incidents are solved peacefully via talks between the two armed forces.” “Turkey should observe procedures prescribed by international law, and not turn a routine incident into a big political and legal issue.”
He suggested the refusal of a Turkish court to release the pair could damage the country’s standing within both the European Union and NATO.
Turkey's Deputy Prime Minister, Bekir Bozdag said that prosecutors wanted the two soldiers detained for attempted military espionage as well as entering a forbidden military zone. The Judge, however, ordered their arrest only on the second charge.
Federica Mogherini, the EU foreign affairs and security chief, said the EU continued to advise Turkey to show "good neighborly relations" and hoped for a "swift and positive outcome" to the incident.
In context
Cross-border infractions are apparently common and Greece is concerned that Turkey on this occasion has deliberately sought to raise the stakes in what would ordinarily be a routine affair resolved at officer level.
It has been suggested that the two soldiers were deliberately snatched in a tit-for-tat move sparked by anger over Greece’s refusal to extradite eight Turkish officers who sought political asylum after the failed coup attempt against the President, Recep Tayyip Erdoğan, in July 2016.
Greece’s Supreme Court has rejected the extradition request, saying the eight, who remain in detention, would not be given a fair trial in a country that has become increasingly autocratic since the failed coup attempt.
Turkish diplomats have vehemently denied this suggestion. Minister Çavuşoğlu rebuffed any suggestion that Turkey wanted to exchange the Greeks for the eight officers. “We do not want such a bargain,” he told Die Zeit.
Tensions have risen markedly not only along the land border between Greece and Turkey but in the Aegean Sea and off the coast of Cyprus, where Turkey has threatened to use military force in a dispute over the divided island’s right to explore for oil and gas reserves.
In February a Turkish vessel rammed a Greek coastguard ship as both patrolled the waters off the disputed islet of Imia. In the current climate, officials fear such incidents – and the concomitant risk of an accident – are on the increase.
The mood in Turkey appears to have become increasingly fractious ahead of presidential and parliamentary elections next year. With the country in a state of emergency since the coup, President Erdoğan and his AKP party have sought to use nationalist fervour, forming an alliance with the nationalist opposition MHP party, in an attempt to secure greater power.
The two NATO partners have teetered on the brink of war in 1974, 1987 and 1996 over long-running disputes on ethnically divided Cyprus, mineral rights in the Aegean Sea and sovereignty over uninhabited islets in that sea.
Turkish President Recep Tayyip Erdoğan sparked serious concerns in Greece when he said last December during a visit to Athens that the terms of the Lausanne Treaty, which set out Turkey’s borders in 1923, needed “revision.” Turkish Opposition leaders later that month tried to take advantage of the rising Turkish nationalist sentiment by demanding Turkey reclaim 18 Aegean islands “occupied” by Greece.
“Greece wants friendship and good neighbourliness with Turkey but it should be based on Ankara’s respect for international treaties,” Greek President Prokopis Pavlopoulos said on Wednesday.
“Any contestation of the borders, the territorial integrity and the sovereignty of Greece comprises a contestation of the borders, territorial integrity and sovereignty of the European Union.”
He warned Turkey to respect borders and all international laws, the Lausanne Treaty, the Treaty of Paris and the Law of the Sea.
“This is the sole basis on which Greece can build its friendship with Turkey,” he underlined.
Turkey’s state-owned Anadolu news agency said the soldiers were detained on grounds of attempted military espionage and entering a prohibited military zone. Another news agency, DHA, said the court ruled that data on their phones was to be investigated.
The incident took place during a normal patrol in the forest area of Kastanies at Evros.
The soldiers told the court that they found themselves on the Turkish side after following footprints in the snow and that they meant to send the images they took on their phones to senior officers, the news agency said.
“Yesterday’s incident was the result of a mistake. The two Greek officers diverged from their route because of the bad weather in the area, and found themselves, I repeat, by mistake, in Turkish territory,” Mr.Tzanakopoulos said. “We are in consultation with Turkish authorities for a prompt resolution of the matter.” “Legal processes in Turkey will be put in motion swiftly and we expect the return of the two Greeks to our country”.
Defence Minister Kammenos said the arrests had aggravated already strained ties between the neighbouring countries. Tensions between Greece and Turkey, NATO allies but regional rivals, had reached the point where the two nations were “very close to a fatal accident”, the Minister told the French daily Libération at the weekend, referring to repeated air and sea violations of Greek territory by Turkish forces.
In comments to the German newspaper Die Zeit, Turkey’s Foreign Minister, Mevlüt Çavuşoğlu, said the Turkish Judiciary was still trying to establish whether the soldiers entered Turkey deliberately, confirming fears that the two soldiers could be charged with espionage.
“They crossed the border illegally and it is up to the prosecutors and judges to discover what is behind this case. Did it happen inadvertently or was it deliberate? They want to be sure,” Minister Çavuşoğlu said when asked when the men would be released.
The Greek Government raised the case with NATO and the United Nations last week, asking both to intervene. Internationalising the case further, Minister Kammenos told his Romanian counterpart during his visit to Bucharest that Greece was seeking support for the “immediate release of the NATO, European and Greek servicemen.”
At a meeting in Brussels, Defence Minister Kammenos told NATO Defence Ministers that the arrest of the two Greek soldiers was also a problem for the European Union and NATO.
“Turkey is a member of NATO and an ally of Greece in NATO, and such incidents are solved peacefully via talks between the two armed forces.” “Turkey should observe procedures prescribed by international law, and not turn a routine incident into a big political and legal issue.”
He suggested the refusal of a Turkish court to release the pair could damage the country’s standing within both the European Union and NATO.
Turkey's Deputy Prime Minister, Bekir Bozdag said that prosecutors wanted the two soldiers detained for attempted military espionage as well as entering a forbidden military zone. The Judge, however, ordered their arrest only on the second charge.
Federica Mogherini, the EU foreign affairs and security chief, said the EU continued to advise Turkey to show "good neighborly relations" and hoped for a "swift and positive outcome" to the incident.
In context
Cross-border infractions are apparently common and Greece is concerned that Turkey on this occasion has deliberately sought to raise the stakes in what would ordinarily be a routine affair resolved at officer level.
It has been suggested that the two soldiers were deliberately snatched in a tit-for-tat move sparked by anger over Greece’s refusal to extradite eight Turkish officers who sought political asylum after the failed coup attempt against the President, Recep Tayyip Erdoğan, in July 2016.
Greece’s Supreme Court has rejected the extradition request, saying the eight, who remain in detention, would not be given a fair trial in a country that has become increasingly autocratic since the failed coup attempt.
Turkish diplomats have vehemently denied this suggestion. Minister Çavuşoğlu rebuffed any suggestion that Turkey wanted to exchange the Greeks for the eight officers. “We do not want such a bargain,” he told Die Zeit.
Tensions have risen markedly not only along the land border between Greece and Turkey but in the Aegean Sea and off the coast of Cyprus, where Turkey has threatened to use military force in a dispute over the divided island’s right to explore for oil and gas reserves.
In February a Turkish vessel rammed a Greek coastguard ship as both patrolled the waters off the disputed islet of Imia. In the current climate, officials fear such incidents – and the concomitant risk of an accident – are on the increase.
The mood in Turkey appears to have become increasingly fractious ahead of presidential and parliamentary elections next year. With the country in a state of emergency since the coup, President Erdoğan and his AKP party have sought to use nationalist fervour, forming an alliance with the nationalist opposition MHP party, in an attempt to secure greater power.
The two NATO partners have teetered on the brink of war in 1974, 1987 and 1996 over long-running disputes on ethnically divided Cyprus, mineral rights in the Aegean Sea and sovereignty over uninhabited islets in that sea.
Turkish President Recep Tayyip Erdoğan sparked serious concerns in Greece when he said last December during a visit to Athens that the terms of the Lausanne Treaty, which set out Turkey’s borders in 1923, needed “revision.” Turkish Opposition leaders later that month tried to take advantage of the rising Turkish nationalist sentiment by demanding Turkey reclaim 18 Aegean islands “occupied” by Greece.
“Greece wants friendship and good neighbourliness with Turkey but it should be based on Ankara’s respect for international treaties,” Greek President Prokopis Pavlopoulos said on Wednesday.
“Any contestation of the borders, the territorial integrity and the sovereignty of Greece comprises a contestation of the borders, territorial integrity and sovereignty of the European Union.”
He warned Turkey to respect borders and all international laws, the Lausanne Treaty, the Treaty of Paris and the Law of the Sea.
“This is the sole basis on which Greece can build its friendship with Turkey,” he underlined.
The Greek Economy
According to the Greek Foundation for Economic and Industrial Research (IOBE), in February, there was further improvement in industrial business expectations. This development also confirms the overall improvement in the economic climate, the Institute notes, as a number of sectors show moderate optimism. And it is linked to the positive growth rates recorded in the economy since 2017.
The Business Indices Index for Industry is set at much higher levels in February than in the first month of the new year, at 103.1 (98.5) points, up from 91.8 per cent in the previous year. This is the highest performance since September 2007.
For industry, the strengthening of the international environment is favouring export firms and cascades out to related industries. It is a feature of the current economic climate that the overwhelming majority of countries in the world are in a development phase, a phenomenon also referred to as "synchronized global growth". Enhanced demand and the continuous recovery of international trade is a common denominator among the faster growth of developing economies, and it also favours Greece’s domestic industry.
Exports of Industrial Products showed an increase of 9.8% in January-November 2017, reaching a value of 11.1€ billion, up from 10.1€ billion for the same period in 2016. This increase is explained by the increase in international demand for Industrial Goods Classified as Raw Materials by 16.9%, with a value of 4.2€ billion, as well as for Chemical and Related Products up by 11.7%, with exports reaching 2.8€ billion in 2017. Exports of Various Industrial Goods advanced by 7.4%, reaching 1.85€ billion in the first eleven months of 2017.
Greece at the Financial Markets
Greece raised 812.5€ million through an auction of 52-week treasury bills on Wednesday, the first such sale after eight years, the Greek Public Debt Management Agency (PDMA) announced.
The bids submitted were 3.18 times more than the asked sum and the interest rate of the issue was set at 1.25% percent, according to an e-mailed press release.
The last time Greece issued one-year treasury bills was in April 2010.
In the past eight years, as the country has been shut out of international markets, the PDMA has been selling three-month and six-month treasury bills each month to cover maturing debts to meet its financing needs, in parallel with the Greek bailout programmes.
Greece is expected to fully return to the markets in 2018 when the current third bailout programme expires this summer.
The State Budget
Greece’s state budget showed a Primary Surplus of over 2.7€ billion in the January-February period, the Finance Ministry said on Wednesday.
This is up from a budget target for the Primary Surplus of 1.3€ billion and a Primary Surplus of 2.1€ billion in the corresponding period last year.
The state budget showed a surplus of 1.5€ billion in the first two months of the year, from a surplus of 434€ million in the same period last year and a budget target for a surplus of 98€ million.
Net revenue amounted to 8.9€ billion in the two-month period, up 14.5% from targets, while regular budget net revenue totalled 8.307€ billion, up 9.0% from targets.
Tax returns totaled 719€ million, up 110€ million from budget targets, while Public Investment Programme revenue amounted to 669€ million, up 452€ million from targets.
State budget spending amounted to 7.433€ billion in the January-February period, down 310€ million from targets.
Regular budget spending amounted to 7.246€ billion, down 112€ million from targets and down 476€ million compared with the same period in 2017.
Public Investment Programme spending totalled 187€ million in the two-month period, down 198€ million from targets.
In February, net revenue was 4.223€ billion, up 275€ million from monthly targets, while regular budget net revenue was 4.159€ billion, up 322€ million from targets (boosted by the collection of an annual dividend worth 614.2€ million from the Bank of Greece, up 214.2€ million from targets).
The Public Investment Programme totaled 64€ million in February, down 47€ million from targets, while tax returns totaled 394€ million, up 116€ million from monthly targets.
State budget spending was 4.257€ billion in February, down 95€ million from monthly targets, while regular budget spending was 4.154€ billion, up 11€ million from targets.
Public Investment Programme spending was 104€ million, down 106€ million from monthly targets.
According to the Greek Foundation for Economic and Industrial Research (IOBE), in February, there was further improvement in industrial business expectations. This development also confirms the overall improvement in the economic climate, the Institute notes, as a number of sectors show moderate optimism. And it is linked to the positive growth rates recorded in the economy since 2017.
The Business Indices Index for Industry is set at much higher levels in February than in the first month of the new year, at 103.1 (98.5) points, up from 91.8 per cent in the previous year. This is the highest performance since September 2007.
For industry, the strengthening of the international environment is favouring export firms and cascades out to related industries. It is a feature of the current economic climate that the overwhelming majority of countries in the world are in a development phase, a phenomenon also referred to as "synchronized global growth". Enhanced demand and the continuous recovery of international trade is a common denominator among the faster growth of developing economies, and it also favours Greece’s domestic industry.
Exports of Industrial Products showed an increase of 9.8% in January-November 2017, reaching a value of 11.1€ billion, up from 10.1€ billion for the same period in 2016. This increase is explained by the increase in international demand for Industrial Goods Classified as Raw Materials by 16.9%, with a value of 4.2€ billion, as well as for Chemical and Related Products up by 11.7%, with exports reaching 2.8€ billion in 2017. Exports of Various Industrial Goods advanced by 7.4%, reaching 1.85€ billion in the first eleven months of 2017.
Greece at the Financial Markets
Greece raised 812.5€ million through an auction of 52-week treasury bills on Wednesday, the first such sale after eight years, the Greek Public Debt Management Agency (PDMA) announced.
The bids submitted were 3.18 times more than the asked sum and the interest rate of the issue was set at 1.25% percent, according to an e-mailed press release.
The last time Greece issued one-year treasury bills was in April 2010.
In the past eight years, as the country has been shut out of international markets, the PDMA has been selling three-month and six-month treasury bills each month to cover maturing debts to meet its financing needs, in parallel with the Greek bailout programmes.
Greece is expected to fully return to the markets in 2018 when the current third bailout programme expires this summer.
The State Budget
Greece’s state budget showed a Primary Surplus of over 2.7€ billion in the January-February period, the Finance Ministry said on Wednesday.
This is up from a budget target for the Primary Surplus of 1.3€ billion and a Primary Surplus of 2.1€ billion in the corresponding period last year.
The state budget showed a surplus of 1.5€ billion in the first two months of the year, from a surplus of 434€ million in the same period last year and a budget target for a surplus of 98€ million.
Net revenue amounted to 8.9€ billion in the two-month period, up 14.5% from targets, while regular budget net revenue totalled 8.307€ billion, up 9.0% from targets.
Tax returns totaled 719€ million, up 110€ million from budget targets, while Public Investment Programme revenue amounted to 669€ million, up 452€ million from targets.
State budget spending amounted to 7.433€ billion in the January-February period, down 310€ million from targets.
Regular budget spending amounted to 7.246€ billion, down 112€ million from targets and down 476€ million compared with the same period in 2017.
Public Investment Programme spending totalled 187€ million in the two-month period, down 198€ million from targets.
In February, net revenue was 4.223€ billion, up 275€ million from monthly targets, while regular budget net revenue was 4.159€ billion, up 322€ million from targets (boosted by the collection of an annual dividend worth 614.2€ million from the Bank of Greece, up 214.2€ million from targets).
The Public Investment Programme totaled 64€ million in February, down 47€ million from targets, while tax returns totaled 394€ million, up 116€ million from monthly targets.
State budget spending was 4.257€ billion in February, down 95€ million from monthly targets, while regular budget spending was 4.154€ billion, up 11€ million from targets.
Public Investment Programme spending was 104€ million, down 106€ million from monthly targets.
Romania, Bulgaria and Greece Support Balkan Gas Hub Project and will work for the European Integration of the Western Balkans
Last Monday (March 12th) the Foreign Ministers of Bulgaria, Romania and Greece issued a joint declaration expressing support for the construction of the Balkan Gas Hub and for the European integration of the Western Balkans. The declaration was adopted during the Bucharest meeting of the three top diplomats: Ekaterina Zaharieva of Bulgaria, Nikos Kotzias of Greece and Teodor Melescanu of Romania, said the Bulgarian Foreign Ministry press office.
It was the 10th edition of the meeting in this format.
The declaration says that the three countries will cooperate in the development of the Balkan gas hub, which is expected to improve security of supplies and diversify the gas routes and sources.
The three ministers also pledged support for the construction of the Bulgaria-Romania and Bulgaria-Greece gas interconnectors.
Bulgarian FM Ekaterina Zaharieva is quoted as saying that she is happy to have received support from her Greek and Romanian counterparts for the European perspectives of the Western Balkan countries. "I am sure that the Balkans will remain a key priority during the Romanian Presidency of the EU Council."
The three Ministers reconfirmed their conviction that the enlargement of the EU is a key factor of stability and prosperity in the region. They expect that all six countries in the Western Balkans will make headway on their European road during the coming years.
They said that the putting forward and applying fair criteria, and the objective assessment of the progress made, are important principles in the enlargement policy.
Ekaterina Zaharieva pointed out that the Sofia Forum in May will be the first EU summit meeting about the Western Balkans for 15 years. "I hope we are not going to wait another 15 years for the next meeting, and instead make these regular meetings," she added.
The Romanian and the Greek Foreign Ministers commended Bulgaria for promoting the region. Romanian FM Teodor Melescanu said his country would continue to do the same during its EU Presidency.
The three Ministers also expressed support for the Eastern Partnership countries.
They said that admitting Sofia and Bucharest to the Schengen Agreement will improve EU security and enhance the efforts against illegal migration, human trafficking and terrorism.
Last Monday (March 12th) the Foreign Ministers of Bulgaria, Romania and Greece issued a joint declaration expressing support for the construction of the Balkan Gas Hub and for the European integration of the Western Balkans. The declaration was adopted during the Bucharest meeting of the three top diplomats: Ekaterina Zaharieva of Bulgaria, Nikos Kotzias of Greece and Teodor Melescanu of Romania, said the Bulgarian Foreign Ministry press office.
It was the 10th edition of the meeting in this format.
The declaration says that the three countries will cooperate in the development of the Balkan gas hub, which is expected to improve security of supplies and diversify the gas routes and sources.
The three ministers also pledged support for the construction of the Bulgaria-Romania and Bulgaria-Greece gas interconnectors.
Bulgarian FM Ekaterina Zaharieva is quoted as saying that she is happy to have received support from her Greek and Romanian counterparts for the European perspectives of the Western Balkan countries. "I am sure that the Balkans will remain a key priority during the Romanian Presidency of the EU Council."
The three Ministers reconfirmed their conviction that the enlargement of the EU is a key factor of stability and prosperity in the region. They expect that all six countries in the Western Balkans will make headway on their European road during the coming years.
They said that the putting forward and applying fair criteria, and the objective assessment of the progress made, are important principles in the enlargement policy.
Ekaterina Zaharieva pointed out that the Sofia Forum in May will be the first EU summit meeting about the Western Balkans for 15 years. "I hope we are not going to wait another 15 years for the next meeting, and instead make these regular meetings," she added.
The Romanian and the Greek Foreign Ministers commended Bulgaria for promoting the region. Romanian FM Teodor Melescanu said his country would continue to do the same during its EU Presidency.
The three Ministers also expressed support for the Eastern Partnership countries.
They said that admitting Sofia and Bucharest to the Schengen Agreement will improve EU security and enhance the efforts against illegal migration, human trafficking and terrorism.
NOVARTIS : Questions needing answers
Three letters written by Novartis executives were received at then Prime Minister Antonis Samaras's office.
The existence of a handwritten letter by Antonis Samaras to Novartis is reportedly revealed by the protected witness “Aikaterini Kelesi” in her new testimony to the Corruption Prosecutor. The new dossier contains
- three Novartis letters to the then Prime Minister, Antonis Samaras, relating to their cooperation on the implementation of the Memorandum and pharmaceutical expenditure.
- a deposition by the protected witness “Aikaterini Kelessi”, stating that there was a handwritten note by Antonis Samaras to Konstantinos Frouzis, the former vice-president of Novartis, which he received at their meeting at the Maximos Mansion. The note bears the official names of the Prime Minister and the name and phone number of the former Minister Christos Staikouras. This note was kept by Mr. Frouzis.
- CD with 165 files from Novartis employees’ computers.
All data has been forwarded to the office of the Parliamentary Special Preliminary Examination Committee into Novartis.
"Both the heavily exposed former Prime Minister and New Democracy must finally give convincing answers instead of trying the intelligence of citizens."
"Every day the Special Review Panel on the Novartis case continues its work, new revealing data see the light of publicity by breaking down the theories of New Democracy and those alleged to be involved in the plot," noted government spokesman Dimitris Tzanakopoulos during his regular updating of political commentators.
"And every day, the reasons why New Democracy did not vote for the proposal to set up the Parliamentary Special Preliminary Examination Committee into Novartis are now becoming more and more clear."
"They are constantly trying to pre-empt the scandal. Because they are not interested in the investigation but only the cover-up."
"Instead, New Democracy, its associates and Mr Samaras, insist on the intimidation and harassment of protected witnesses"
"But they have to answer clearly and without wriggling, both to the Commission and to the Greek citizens:
- Do they deny the authenticity of Antonis Samaras' note to Mr Frouzis?
- Why did Mr Samaras refer Vice-President Novartis to the then political head of the State Treasury, who is also responsible for any State approvals?
- How is it that while Mr. Samaras claimed in Parliament during his speech that he had never met with Mr Frouzis privately, how did the latter get the note referring to Christos Staikouras?"
Three letters written by Novartis executives were received at then Prime Minister Antonis Samaras's office.
The existence of a handwritten letter by Antonis Samaras to Novartis is reportedly revealed by the protected witness “Aikaterini Kelesi” in her new testimony to the Corruption Prosecutor. The new dossier contains
- three Novartis letters to the then Prime Minister, Antonis Samaras, relating to their cooperation on the implementation of the Memorandum and pharmaceutical expenditure.
- a deposition by the protected witness “Aikaterini Kelessi”, stating that there was a handwritten note by Antonis Samaras to Konstantinos Frouzis, the former vice-president of Novartis, which he received at their meeting at the Maximos Mansion. The note bears the official names of the Prime Minister and the name and phone number of the former Minister Christos Staikouras. This note was kept by Mr. Frouzis.
- CD with 165 files from Novartis employees’ computers.
All data has been forwarded to the office of the Parliamentary Special Preliminary Examination Committee into Novartis.
"Both the heavily exposed former Prime Minister and New Democracy must finally give convincing answers instead of trying the intelligence of citizens."
"Every day the Special Review Panel on the Novartis case continues its work, new revealing data see the light of publicity by breaking down the theories of New Democracy and those alleged to be involved in the plot," noted government spokesman Dimitris Tzanakopoulos during his regular updating of political commentators.
"And every day, the reasons why New Democracy did not vote for the proposal to set up the Parliamentary Special Preliminary Examination Committee into Novartis are now becoming more and more clear."
"They are constantly trying to pre-empt the scandal. Because they are not interested in the investigation but only the cover-up."
"Instead, New Democracy, its associates and Mr Samaras, insist on the intimidation and harassment of protected witnesses"
"But they have to answer clearly and without wriggling, both to the Commission and to the Greek citizens:
- Do they deny the authenticity of Antonis Samaras' note to Mr Frouzis?
- Why did Mr Samaras refer Vice-President Novartis to the then political head of the State Treasury, who is also responsible for any State approvals?
- How is it that while Mr. Samaras claimed in Parliament during his speech that he had never met with Mr Frouzis privately, how did the latter get the note referring to Christos Staikouras?"
PLASTIC POLLUTION
Thirty volunteers from Plastic Free Greece recently went to Kavouri beach near Athens to clear away plastic rubbish which had been allowed to accumulate, raising questions of the local authorities.
Organizers had put out an appeal on Facebook for people, particularly children, to join their effort in keeping the sands clean,.
Plastic Free Greece says consumers in the country used a total of 4.3 billion plastic bags in 2016, which averages to about 400 bags for every man, woman and child. Only a tiny fraction of bags get recycled.
The environmental group also launched an app in November 2017 which lets people know when a beach cleaning event is taking place in their area.
We have shared Plastic Free Greece’s video of the event on the gefyra/the bridge Facebook Page
Thirty volunteers from Plastic Free Greece recently went to Kavouri beach near Athens to clear away plastic rubbish which had been allowed to accumulate, raising questions of the local authorities.
Organizers had put out an appeal on Facebook for people, particularly children, to join their effort in keeping the sands clean,.
Plastic Free Greece says consumers in the country used a total of 4.3 billion plastic bags in 2016, which averages to about 400 bags for every man, woman and child. Only a tiny fraction of bags get recycled.
The environmental group also launched an app in November 2017 which lets people know when a beach cleaning event is taking place in their area.
We have shared Plastic Free Greece’s video of the event on the gefyra/the bridge Facebook Page
"A spectacular change of image in the Greek economy"
Alexis Tsipras at Delphi
10.3.2018
The Prime Minister, speaking at the Delphi Economic Forum, emphasised that unemployment has receded by 7 percentage points in 3 years while maintaining a steady tendency to decrease.
"With the end of the Programme, debt relief will be the culmination of a difficult but well-planned, successful effort."
He spoke of a "spectacular change of image" in the Greek economy.
"The Greece of recession returned in 2017 to growth, and at a dynamic rate which is estimated to exceed 2% steadily this year and for the following years."
"The country that had become synonymous with chronic fiscal derailment in the summer emerged from the excessive deficit Procedure and from 2016 onwards is achieving high primary surpluses every year, much higher than the targets of the Programme."
"In the months following we have taken the responsibility to present an integrated development plan for the "Next Day" in which the objectives are specified along with specific actions at the sectoral and regional level."
Referring to the work that has been achieved in the ten regional development conferences to date, the PM stressed that "growth is not ordered up using theoretical diagrams from on high, nor is it announced with proclamations, rather it requires work, a plan, persistence, consultation with interested parties and an effort to synthesise views and proposals that are specific and workable, to demonstrate the competitive advantages of each area separately."
"Today Greece is a country friendlier and more credible to entrepreneurship and investment." He stressed that it is a country "less bureaucratic, with a modern tax system, uniform and honest rules of competition, but also with very much strengthened social structures for all citizens. This is something that is recognised by our European partners and internationally by analysts, international organisations, credit ratings firms and investors."
"Greece is now included in the investment planning of states and large multinational corporations and it would not be an exaggeration to repeat that we are as they say in the vernacular of markets and investors: "The next big Thing" on the global investment map."
In the front of his mind, he said, are the "brain drain" and youth unemployment. "We have tried to provide answers by strengthening training and reintegration programmes in the workforce and by providing tax incentives, and providing an increase in resources for research and technology."
"We are at the critical point of our effort, that is to say, at the point where the finishing tape is visible and what is needed is to prepare the next day for the country." "Fair growth is the historical unfinished business that we must fulfill."
"With the end of the Programme, debt relief will be the culmination of a difficult but well-planned, successful effort."
He spoke of a "spectacular change of image" in the Greek economy.
"The Greece of recession returned in 2017 to growth, and at a dynamic rate which is estimated to exceed 2% steadily this year and for the following years."
"The country that had become synonymous with chronic fiscal derailment in the summer emerged from the excessive deficit Procedure and from 2016 onwards is achieving high primary surpluses every year, much higher than the targets of the Programme."
"In the months following we have taken the responsibility to present an integrated development plan for the "Next Day" in which the objectives are specified along with specific actions at the sectoral and regional level."
Referring to the work that has been achieved in the ten regional development conferences to date, the PM stressed that "growth is not ordered up using theoretical diagrams from on high, nor is it announced with proclamations, rather it requires work, a plan, persistence, consultation with interested parties and an effort to synthesise views and proposals that are specific and workable, to demonstrate the competitive advantages of each area separately."
"Today Greece is a country friendlier and more credible to entrepreneurship and investment." He stressed that it is a country "less bureaucratic, with a modern tax system, uniform and honest rules of competition, but also with very much strengthened social structures for all citizens. This is something that is recognised by our European partners and internationally by analysts, international organisations, credit ratings firms and investors."
"Greece is now included in the investment planning of states and large multinational corporations and it would not be an exaggeration to repeat that we are as they say in the vernacular of markets and investors: "The next big Thing" on the global investment map."
In the front of his mind, he said, are the "brain drain" and youth unemployment. "We have tried to provide answers by strengthening training and reintegration programmes in the workforce and by providing tax incentives, and providing an increase in resources for research and technology."
"We are at the critical point of our effort, that is to say, at the point where the finishing tape is visible and what is needed is to prepare the next day for the country." "Fair growth is the historical unfinished business that we must fulfill."
FYROM Name Issue: PM Zaev proposes International treaty
"Any change in the legal system of "Macedonia" is not a permanent guarantee for Greece, because, whatever is changed can be changed back."
Macedonian Prime Minister Zoran Zaev repeated his assessment that changing the constitution of his country is not a permanent guarantee for Greece. He proposed, as a sustainable solution to the issue of the name, the signing and ratification of an international agreement, instead of changing his country’s Constitution. "It is very important to use a system that the whole world knows and that is the well-known international practice for resolving such disputes -international agreements, ratified by parliaments, UN resolutions -and then the solution will remain forever. I am convinced that with such approaches, taking care about what is important for the citizens of Greece and "Macedonia", we can find a solution to the dispute we have with Greece." "We should not stipulate red lines if we want to find a solution. We must take care of each other to safeguard the dignity of both peoples, of the two countries and of the two nations and, in any case, to protect what the emotion signifies and the issue of identity. Identity is an emotional thing, no one can negotiate and haggle about it. I believe that, in this spirit, by carefully approaching the partners with whom we are negotiating, we will find a solution."
Finally, Zoran Zaev stressed that with the renaming of the Skopje Airport and the highway that starts from the Macedonian border with Serbia and ends at the border with Greece, his country is closing the chapters referring to any irredentist claims.
"Any change in the legal system of "Macedonia" is not a permanent guarantee for Greece, because, whatever is changed can be changed back."
Macedonian Prime Minister Zoran Zaev repeated his assessment that changing the constitution of his country is not a permanent guarantee for Greece. He proposed, as a sustainable solution to the issue of the name, the signing and ratification of an international agreement, instead of changing his country’s Constitution. "It is very important to use a system that the whole world knows and that is the well-known international practice for resolving such disputes -international agreements, ratified by parliaments, UN resolutions -and then the solution will remain forever. I am convinced that with such approaches, taking care about what is important for the citizens of Greece and "Macedonia", we can find a solution to the dispute we have with Greece." "We should not stipulate red lines if we want to find a solution. We must take care of each other to safeguard the dignity of both peoples, of the two countries and of the two nations and, in any case, to protect what the emotion signifies and the issue of identity. Identity is an emotional thing, no one can negotiate and haggle about it. I believe that, in this spirit, by carefully approaching the partners with whom we are negotiating, we will find a solution."
Finally, Zoran Zaev stressed that with the renaming of the Skopje Airport and the highway that starts from the Macedonian border with Serbia and ends at the border with Greece, his country is closing the chapters referring to any irredentist claims.
Chinese Investment in Greece – a cause for concern?
Unlike many in Europe, China saw the Greek economic crisis of the past decade not as a disaster but as an opportunity.
Since 2008, Chinese business leaders have signed infrastructure and business deals worth nearly $9 billion - equivalent to about 5% of Greek GDP - involving ports, telecommunications companies, energy facilities, real estate and tourism, according to the American Enterprise Institute.
For many, it is a case study of how Chinese investment dollars lead to political payoffs. As Greek political leaders found themselves at loggerheads with principal members of the European Union - notably Germany - over an imposed policy of harsh austerity, China offered an economic lifeline. In return, Greece is becoming considered a leading voice inside the EU promoting a softer line on China’s political failings and offering a warmer welcome to Chinese investments.
“The Greek economy is thirsty for investments, and the presence of Chinese companies is important and we welcome it,” Greek Prime Minister Alexis Tsipras said last September at the Thessaloniki International Trade Fair that featured China as the “Honoured Guest”.
Chinese officials are seen to have openly played on the tensions between Greece and its fellow EU states. The state-controlled Chinese news site Global Times noted in an editorial that “in contrast to the EU, which has treated Athens as a delinquent borrower, China designates the country as a ‘trusted partner.’”
China Ocean Shipping Co., or COSCO, a state-owned company, purchased a majority stake in the port of Piraeus from the Greek Government in 2016 for $456 million - the largest Chinese investment in Greece to date. The port is now a major node in China’s $1 trillion Belt and Road initiative, a system of trade routes and infrastructure projects that follow the old Silk Road and maritime passages through the Indian Ocean and Suez Canal.
There is concern about Chinese influence and Chinese-style management in a southern European country, where management traditionally respects labour rights and workplace conditions.
When a COSCO subsidiary purchased two piers at Piraeus in 2009, workers lost overtime and faced pay cuts of 30%.
“This deal must not make the port into a Chinese colony,” said Giorgos Gogos, Secretary of the Piraeus Dockworkers Union. “It’s important to secure good labour conditions and make sure the state actually profits from the investment.”
Chinese money is raising political questions about Beijing’s influence in Greece and its long-term ambitions for countries all along Europe’s eastern flank.
In June 2017, the Greek Government surprised European leaders by blocking an EU statement at the U.N. Summit critical of China’s human rights record. A year earlier, Greece, Croatia and Hungary - where Chinese investments are also extensive - opposed a joint EU statement on China’s military expansion in the South China Sea. Without the required consensus, the EU statement was blocked.
“China is using Greece to get a strong foothold in the European Union,” said Michael Tsinisizelis, a Professor of International and European studies at the University of Athens.
Greece is in line for membership of China’s Asian Infrastructure Investment Bank. In November, the Government sent a delegation to the so-called 16+1 annual summit of China with 16 Eastern and Central European nations. Greece and China last May signed a three-year action plan to guide investment and trade deals. In December, French President Emmanuel Macron delivered an ardent speech under the Acropolis, where he expressed concern about Greek and European economic weaknesses that China could target and prevent the EU from speaking about global issues with a united voice.
“Our European sovereignty is what will enable us to be digital champions, build a strong economy, and make us an economic power in this changing world and not be subjected to the law of the fittest - the Americans and, soon, the Chinese — but our own law,” he said.
China is now the EU’s second-biggest trading partner after the USA. In 2016, China spent $40 billion compared with $23 billion in the previous year.
While COSCO is expanding at Piraeus, among the world’s fastest-growing ports, the EU is looking to closely regulate foreign investments in European strategic assets, including ports.
“There is a general uneasiness in the EU concerning Chinese investments,” said Polyxeni Davarinou, a researcher at the Institute of International Economic Relations in Athens. “The EU wants to have better control. At the same time, though, Greece and Eastern European countries really need these Chinese investments.”
She said Greece and Europe have the power to contain Chinese influence if leaders enact bold rules to monitor foreign investment. “There are voices in Europe that believe Greece is too close to China, and that is because we’ve given them reasons to see it that way,” she said. “Engulfed by its economic woes and disenchantment with the EU, Greece has welcomed. Greece’s problem is how to develop a clear and steady strategy.”
The survey by the Institute of International Economic Relations noted that Greece is still emerging from a period when it could hardly afford to be choosy about who invested in its beleaguered domestic economy.
“It is an indisputable fact that, trapped in its severe fiscal and economic predicament, Greece is not in a position to discourage foreign investment from any legitimate source,” the report concluded. “In fact, a certain diversification of foreign investment from countries outside the EU is even welcome.”
In Piraeus, meanwhile, cranes are offloading shipping containers from huge cargo ships around the clock. COSCO is planning to invest an extra $372 million to build three five-star hotels and a new dock that can accommodate 14 cruise ships.
Unlike many in Europe, China saw the Greek economic crisis of the past decade not as a disaster but as an opportunity.
Since 2008, Chinese business leaders have signed infrastructure and business deals worth nearly $9 billion - equivalent to about 5% of Greek GDP - involving ports, telecommunications companies, energy facilities, real estate and tourism, according to the American Enterprise Institute.
For many, it is a case study of how Chinese investment dollars lead to political payoffs. As Greek political leaders found themselves at loggerheads with principal members of the European Union - notably Germany - over an imposed policy of harsh austerity, China offered an economic lifeline. In return, Greece is becoming considered a leading voice inside the EU promoting a softer line on China’s political failings and offering a warmer welcome to Chinese investments.
“The Greek economy is thirsty for investments, and the presence of Chinese companies is important and we welcome it,” Greek Prime Minister Alexis Tsipras said last September at the Thessaloniki International Trade Fair that featured China as the “Honoured Guest”.
Chinese officials are seen to have openly played on the tensions between Greece and its fellow EU states. The state-controlled Chinese news site Global Times noted in an editorial that “in contrast to the EU, which has treated Athens as a delinquent borrower, China designates the country as a ‘trusted partner.’”
China Ocean Shipping Co., or COSCO, a state-owned company, purchased a majority stake in the port of Piraeus from the Greek Government in 2016 for $456 million - the largest Chinese investment in Greece to date. The port is now a major node in China’s $1 trillion Belt and Road initiative, a system of trade routes and infrastructure projects that follow the old Silk Road and maritime passages through the Indian Ocean and Suez Canal.
There is concern about Chinese influence and Chinese-style management in a southern European country, where management traditionally respects labour rights and workplace conditions.
When a COSCO subsidiary purchased two piers at Piraeus in 2009, workers lost overtime and faced pay cuts of 30%.
“This deal must not make the port into a Chinese colony,” said Giorgos Gogos, Secretary of the Piraeus Dockworkers Union. “It’s important to secure good labour conditions and make sure the state actually profits from the investment.”
Chinese money is raising political questions about Beijing’s influence in Greece and its long-term ambitions for countries all along Europe’s eastern flank.
In June 2017, the Greek Government surprised European leaders by blocking an EU statement at the U.N. Summit critical of China’s human rights record. A year earlier, Greece, Croatia and Hungary - where Chinese investments are also extensive - opposed a joint EU statement on China’s military expansion in the South China Sea. Without the required consensus, the EU statement was blocked.
“China is using Greece to get a strong foothold in the European Union,” said Michael Tsinisizelis, a Professor of International and European studies at the University of Athens.
Greece is in line for membership of China’s Asian Infrastructure Investment Bank. In November, the Government sent a delegation to the so-called 16+1 annual summit of China with 16 Eastern and Central European nations. Greece and China last May signed a three-year action plan to guide investment and trade deals. In December, French President Emmanuel Macron delivered an ardent speech under the Acropolis, where he expressed concern about Greek and European economic weaknesses that China could target and prevent the EU from speaking about global issues with a united voice.
“Our European sovereignty is what will enable us to be digital champions, build a strong economy, and make us an economic power in this changing world and not be subjected to the law of the fittest - the Americans and, soon, the Chinese — but our own law,” he said.
China is now the EU’s second-biggest trading partner after the USA. In 2016, China spent $40 billion compared with $23 billion in the previous year.
While COSCO is expanding at Piraeus, among the world’s fastest-growing ports, the EU is looking to closely regulate foreign investments in European strategic assets, including ports.
“There is a general uneasiness in the EU concerning Chinese investments,” said Polyxeni Davarinou, a researcher at the Institute of International Economic Relations in Athens. “The EU wants to have better control. At the same time, though, Greece and Eastern European countries really need these Chinese investments.”
She said Greece and Europe have the power to contain Chinese influence if leaders enact bold rules to monitor foreign investment. “There are voices in Europe that believe Greece is too close to China, and that is because we’ve given them reasons to see it that way,” she said. “Engulfed by its economic woes and disenchantment with the EU, Greece has welcomed. Greece’s problem is how to develop a clear and steady strategy.”
The survey by the Institute of International Economic Relations noted that Greece is still emerging from a period when it could hardly afford to be choosy about who invested in its beleaguered domestic economy.
“It is an indisputable fact that, trapped in its severe fiscal and economic predicament, Greece is not in a position to discourage foreign investment from any legitimate source,” the report concluded. “In fact, a certain diversification of foreign investment from countries outside the EU is even welcome.”
In Piraeus, meanwhile, cranes are offloading shipping containers from huge cargo ships around the clock. COSCO is planning to invest an extra $372 million to build three five-star hotels and a new dock that can accommodate 14 cruise ships.
Euro Working Group confirms success of Third Assessment
The Euro Working Group of eurozone finance ministry officials on Friday approved Greece’s fulfillment of all of the prior actions associated with the Third Assessment, paving the way for the disbursement of the 5.7€ billion subtanche.
According to the compliance report which was sent to the EWG on Friday, “The Greek authorities have completed all milestones in the supplementary memorandum that were necessary for the disbursement of the fourth installment from the programme of the European Stability Mechanism [ESM].”
The report added that both pending prior actions – the issue of the presidential decree regarding the development of the old Athens airport plot at Elliniko and the expansion of online auctions – are now considered fulfilled.
“The ESM Board of Governors is expected to approve the disbursement of the fourth installment of the program following the completion of the national parliamentary procedures,” Eurogroup President Mario Centeno said. “This will pave the way for the release of the first subtranche in the second half of March.”
Friday’s Euro Working Group also touched on the issue of easing Greece’s debt. The Finance Ministry stated that “the discussion that has been under way for a month at staff level regarding the parameters of the medium-term measures for the debt has made significant progress.”
Mr. Centeno said: “We have now entered the final round of the Greek programme. The fourth and final Assessment is starting and with it the technical preparation for possible new measures for the easing of the debt.”
The Euro Working Group of eurozone finance ministry officials on Friday approved Greece’s fulfillment of all of the prior actions associated with the Third Assessment, paving the way for the disbursement of the 5.7€ billion subtanche.
According to the compliance report which was sent to the EWG on Friday, “The Greek authorities have completed all milestones in the supplementary memorandum that were necessary for the disbursement of the fourth installment from the programme of the European Stability Mechanism [ESM].”
The report added that both pending prior actions – the issue of the presidential decree regarding the development of the old Athens airport plot at Elliniko and the expansion of online auctions – are now considered fulfilled.
“The ESM Board of Governors is expected to approve the disbursement of the fourth installment of the program following the completion of the national parliamentary procedures,” Eurogroup President Mario Centeno said. “This will pave the way for the release of the first subtranche in the second half of March.”
Friday’s Euro Working Group also touched on the issue of easing Greece’s debt. The Finance Ministry stated that “the discussion that has been under way for a month at staff level regarding the parameters of the medium-term measures for the debt has made significant progress.”
Mr. Centeno said: “We have now entered the final round of the Greek programme. The fourth and final Assessment is starting and with it the technical preparation for possible new measures for the easing of the debt.”
"We are finished with the shadows"
"Greece is not going to just sigh about the suitcases, handbags, and “dark” accounts. The Government, and I personally, will persevere to the end: light everywhere, light on all!", underlined Alexis Tsipras in an exclusive statement in the newspaper «Εφημερίδα των Συντακτών».
"Suitcases to state officials and political parties, over the period 2003-2007, as revealed by the German Judiciary, are another link in the chain of corruption, with which the old political system had bound Greece. New Democracy and PASOK circles literally divided up amongst themselves the shirt off the Greek people’s back, over many years before they led us to the crisis and the Memoranda.
Today there is no room for doubt, after the armaments, Siemens, Novartis, and the kickbacks over the Metro, that the tentacles of a gang of corruption had spread to the highest state and political level. That the kickbacks, preset in fact as percentages, for years lay behind many of the projects and commissions of the Greek State. That corruption had become the norm in the relations between the state and large corporations. That black money circulated in suitcases, bags, and secret accounts, to reach the pockets of state and political officials, even parties of power, which operated like a mafia.
"This situation also explains the reactions of some representatives of this old and corrupt political system, following revelations in the Novartis scandal under investigation.
"Lawsuits against prosecutors, lawsuits against witnesses, lawsuits against Ministers, even against the Prime Minister, Civil War rhetoric and allegations of collusion. It is simply a reaction again in gang terms, which aims to intimidate the Judiciary, the Government and the witnesses to keep their activities in the shadows. With the shadows, however, we are done," the Prime Minister stressed. "In this way let the culprits speak about their activities, let the innocent be rid of any shadow of suspicion, and let the shaken trust of the Greek people in those it chose to govern be restored."
Novartis: Parliament’s Special Preliminary Examination Committee
Theodoros Dritsas (SYRIZA) was elected Chairman, while G. Lazaridis (ANEL) was elected Vice-Chairman and Panagiota Kozompoli (SYRIZA) Secretary of Parliament’s Special Preliminary Examination Committee in the Novartis scandal.
The Committee will have all the powers of the Public Prosecutor when is starts a preliminary examination.
The Committee has 21 members. SYRIZA has 10 members, New Democracy has 5 members and the other parties will each have one representative.
"Greece is not going to just sigh about the suitcases, handbags, and “dark” accounts. The Government, and I personally, will persevere to the end: light everywhere, light on all!", underlined Alexis Tsipras in an exclusive statement in the newspaper «Εφημερίδα των Συντακτών».
"Suitcases to state officials and political parties, over the period 2003-2007, as revealed by the German Judiciary, are another link in the chain of corruption, with which the old political system had bound Greece. New Democracy and PASOK circles literally divided up amongst themselves the shirt off the Greek people’s back, over many years before they led us to the crisis and the Memoranda.
Today there is no room for doubt, after the armaments, Siemens, Novartis, and the kickbacks over the Metro, that the tentacles of a gang of corruption had spread to the highest state and political level. That the kickbacks, preset in fact as percentages, for years lay behind many of the projects and commissions of the Greek State. That corruption had become the norm in the relations between the state and large corporations. That black money circulated in suitcases, bags, and secret accounts, to reach the pockets of state and political officials, even parties of power, which operated like a mafia.
"This situation also explains the reactions of some representatives of this old and corrupt political system, following revelations in the Novartis scandal under investigation.
"Lawsuits against prosecutors, lawsuits against witnesses, lawsuits against Ministers, even against the Prime Minister, Civil War rhetoric and allegations of collusion. It is simply a reaction again in gang terms, which aims to intimidate the Judiciary, the Government and the witnesses to keep their activities in the shadows. With the shadows, however, we are done," the Prime Minister stressed. "In this way let the culprits speak about their activities, let the innocent be rid of any shadow of suspicion, and let the shaken trust of the Greek people in those it chose to govern be restored."
Novartis: Parliament’s Special Preliminary Examination Committee
Theodoros Dritsas (SYRIZA) was elected Chairman, while G. Lazaridis (ANEL) was elected Vice-Chairman and Panagiota Kozompoli (SYRIZA) Secretary of Parliament’s Special Preliminary Examination Committee in the Novartis scandal.
The Committee will have all the powers of the Public Prosecutor when is starts a preliminary examination.
The Committee has 21 members. SYRIZA has 10 members, New Democracy has 5 members and the other parties will each have one representative.
"Tomorrow is not going to come on its own; only with work, prudence, consensus, unity, teamwork and solidarity can we win it."
Alexis Tsipras in the Peloponnese
3.3.2018
Prime Minister Alexis Tsipras in Tripolis, speaking at the 10th Regional Conference on the Reconstruction of the Productive Capacity of the Peloponnese said:
"Tomorrow is not going to come on its own; only with work, prudence, consensus, unity, teamwork and solidarity can we win it."
He noted that it is now clear to us all that "when certain big interests, which are intertwined with parts of the political establishment and a spoilt elite, is given space to bloodsuck public revenues and engage in speculation in all areas of social life, even including the Health of the Greek people, with medications, then we are not dealing with some partisan cabal, political rematch, or personal vengeance.
"We have to deal with a carcinoma, which if not eradicated permanently, will infect society and stand in the way of every step towards development."
"This Government will not in any way, not for any reason, compromise with any deviation from morality, the value of which stipulates that above everything else are the the interests of the people and the country, the public interest.
"That is why, as far as we are concerned, it is the case that we will never, under any circumstances or for any reason, accept the equating of the ethical with the legal. For us what is done legally is not automatically also inscribed into our own values, into our own ethics."
"Some have the sensitivity to resign over 23,000€ [see Ministers Resign item below Ed]while others are “doing a Chinese” [idiom for pretending not to understand Ed] over 23€ billion, because that is how much the medicine jamboree cost the Public Health Service. Let some resign and let others say that they have no responsibility.
"But so be it. This difference demonstrates in practice that we are not all the same, which is why it is right that the criteria by which the people judge us are not the same."
"We have definitely crossed the border from hemorrhaging economicly and socially to sustainable development, to the robust process of progress.
"Greece will not return to a regime of Siemens, Novartis, unsupportable loans, and of scandals. We will never go back there."
Speaking about the Primary Sector, PM Tsipras said that the Government has made efforts to support agricultural production, especially small and medium-sized farmers with these main objectives: sustainability of the Primary Sector, transparency and consistency in the payment of support grants, orientation towards exports, development of technologically and environmentally advanced technologies, and the elimination of bad practices.
He said that the NSRF [The EU National Strategic Reference Framework Ed] programmes which provide for specific export-oriented support could be utilised. The formulation of a single label for Greek Agricultural food products is also being promoted.
He noted that a budget of 235€ million had been assigned and is being used in projects and investments in the Peloponnese Region. With the addition of 118€ million from the LEADER Programme for the setting up of new tourism enterprises and from small public works, funding is approaching 353€ million.
As far as the dominant problem of waste management is concerned, PM Tsipras announced that through the Public Investment Programme there will be direct funding for Sites of Uncontrolled Waste Disposal in the Region, for which the country continues to pay fines to the European Union. He noted that the Joint Public-Privation Collaboration of the Peloponnese [ΣΔΙΤ] is now ready to proceed, following the Government's intervention, in order to provide a solution compatible with European recycling standards and the overall national planning and priorities the Government has set for recycling and re-use.
On the power sector, he said: "The Government's basic principle is to safeguard the financial viability of the ΔΕΗ and jobs and labour relations, as well as to minimise the problems arising from moving into the future.
"The relevant agreement being implemented by the Government is clearly better than the one provided by the law about a "small ΔΕΗ" that obliged the company to transfer 22% of its total capacity and part of its clientele. With the new agreement, only 21.4% of the lignite capacity, which accounts for 9% of the total, will be surrendered.
"The protection of labour rights is part of the agreement" and, he said, that the Government has worked intensively on this, in close consultation with the ΔΕΗ, in order not to lose a single job and for there to be no reduction in labour rights, no retreat on industrial relations, after the transition to the new situation.
He said that the legislation of the Environmental Household Tariff for the support of areas that are environmentally degraded by the operation of lignite stations and mines, such as the Municipality of Megalopolis, will lead to reductions of up to 30% in Electricity bills.
Speaking about infrastructure, PM Tsipras said that in two and a half years the Government has done what had not been done in a decade and has launched development projects of strategic importance.
He mentioned, among other things, the full completion of the two major road contracts: “Moreas Motorway”, from Corinth to Tripoli and Kalamata and the branch that goes to Sparta, as well as the “Olympia Road”, from Corinth to Patras. Projects with a final cost to the Treasury, for both motorways, of 520€ million.
"Tomorrow is not going to come on its own; only with work, prudence, consensus, unity, teamwork and solidarity can we win it."
He noted that it is now clear to us all that "when certain big interests, which are intertwined with parts of the political establishment and a spoilt elite, is given space to bloodsuck public revenues and engage in speculation in all areas of social life, even including the Health of the Greek people, with medications, then we are not dealing with some partisan cabal, political rematch, or personal vengeance.
"We have to deal with a carcinoma, which if not eradicated permanently, will infect society and stand in the way of every step towards development."
"This Government will not in any way, not for any reason, compromise with any deviation from morality, the value of which stipulates that above everything else are the the interests of the people and the country, the public interest.
"That is why, as far as we are concerned, it is the case that we will never, under any circumstances or for any reason, accept the equating of the ethical with the legal. For us what is done legally is not automatically also inscribed into our own values, into our own ethics."
"Some have the sensitivity to resign over 23,000€ [see Ministers Resign item below Ed]while others are “doing a Chinese” [idiom for pretending not to understand Ed] over 23€ billion, because that is how much the medicine jamboree cost the Public Health Service. Let some resign and let others say that they have no responsibility.
"But so be it. This difference demonstrates in practice that we are not all the same, which is why it is right that the criteria by which the people judge us are not the same."
"We have definitely crossed the border from hemorrhaging economicly and socially to sustainable development, to the robust process of progress.
"Greece will not return to a regime of Siemens, Novartis, unsupportable loans, and of scandals. We will never go back there."
Speaking about the Primary Sector, PM Tsipras said that the Government has made efforts to support agricultural production, especially small and medium-sized farmers with these main objectives: sustainability of the Primary Sector, transparency and consistency in the payment of support grants, orientation towards exports, development of technologically and environmentally advanced technologies, and the elimination of bad practices.
He said that the NSRF [The EU National Strategic Reference Framework Ed] programmes which provide for specific export-oriented support could be utilised. The formulation of a single label for Greek Agricultural food products is also being promoted.
He noted that a budget of 235€ million had been assigned and is being used in projects and investments in the Peloponnese Region. With the addition of 118€ million from the LEADER Programme for the setting up of new tourism enterprises and from small public works, funding is approaching 353€ million.
As far as the dominant problem of waste management is concerned, PM Tsipras announced that through the Public Investment Programme there will be direct funding for Sites of Uncontrolled Waste Disposal in the Region, for which the country continues to pay fines to the European Union. He noted that the Joint Public-Privation Collaboration of the Peloponnese [ΣΔΙΤ] is now ready to proceed, following the Government's intervention, in order to provide a solution compatible with European recycling standards and the overall national planning and priorities the Government has set for recycling and re-use.
On the power sector, he said: "The Government's basic principle is to safeguard the financial viability of the ΔΕΗ and jobs and labour relations, as well as to minimise the problems arising from moving into the future.
"The relevant agreement being implemented by the Government is clearly better than the one provided by the law about a "small ΔΕΗ" that obliged the company to transfer 22% of its total capacity and part of its clientele. With the new agreement, only 21.4% of the lignite capacity, which accounts for 9% of the total, will be surrendered.
"The protection of labour rights is part of the agreement" and, he said, that the Government has worked intensively on this, in close consultation with the ΔΕΗ, in order not to lose a single job and for there to be no reduction in labour rights, no retreat on industrial relations, after the transition to the new situation.
He said that the legislation of the Environmental Household Tariff for the support of areas that are environmentally degraded by the operation of lignite stations and mines, such as the Municipality of Megalopolis, will lead to reductions of up to 30% in Electricity bills.
Speaking about infrastructure, PM Tsipras said that in two and a half years the Government has done what had not been done in a decade and has launched development projects of strategic importance.
He mentioned, among other things, the full completion of the two major road contracts: “Moreas Motorway”, from Corinth to Tripoli and Kalamata and the branch that goes to Sparta, as well as the “Olympia Road”, from Corinth to Patras. Projects with a final cost to the Treasury, for both motorways, of 520€ million.
Working to conclude the Fourth Assessment
The Institutions were positive following initial talks held in Athens this week, with sources revealing that the negotiations will continue in coming weeks.
The Greek Government is committed to implementing all agreed actions towards concluding the Fourth Assessment of the bailout programme without delay. This is the final assessment before the expiry of the Programme in August.
The representatives of the Institutions will return after the Easter holidays. In the next phase, the two sides will also discuss Greece’s post-bailout development programme and debt relief.
It is hoped to have tied up loose ends by the 21st June Eurogroup meeting. The Fourth Assessment requires the implementation of 88 prior actions in total.
Finance Minister Euclid Tsakalotos stated that the majority of the pending issues are of a technical nature.
Latest Opinion Polls
Opinion polls published over the last few days put New Democracy, ahead of SYRIZA. However, the results of the two latest polls show a radically different margin between the two parties.
Specifically, the poll of Metron Analysis for “To Vima” newspaper puts New Democracy in a 9.7 percentage point lead over SYRIZA, posting 34.9% in voting preferences versus SYRIZA’s 25.2%. The neo-Nazi Golden Dawn party is in third place with 9.4%, while Movement of Change - the new centre-left party established via an alliance between PASOK, To Potami and other parties – came in at 8.4%. The Greek Communist Party (KKE) takes 7% and the Union of Centrists is on 3%. No other party is shown above the 3% threshold needed for entry to parliament, including SYRIZA’s junior coalition partner in government, AN-EL (the Independent Greeks).
However, a poll by “Alco” published by Ethnos newspaper places New Democracy’s lead much lower, at 4.9 percentage points. The voting intention results of Alco’s poll put New Democracy on 21.4% with SYRIZA on 16.5%, followed by Golden Dawn on 6.9%, Movement of Change on 6.2% and the KKE on 5%. All other parties fell below the 3% threshold.
The “Alco” poll is seen by analysts to be politically significant in terms of findings concerning the Novartis scandal, with ten senior Greek politicians being accused of taking bribes. The poll shows 66% of Greeks believe the Novartis case is a “real scandal” and 54% call for all the accused politicians to resign.
Ministers Resign
Economy Minister Dimitris Papadimitriou resigned hours after his wife, Deputy Minister for Social Solidarity Rania Antonopoulou, stepped down on Monday afternoon following revelations that she received 23,000€ in state rent subsidies for their apartment in the Athens neighbourhood of Kolonaki.
Mr. Papadimitriou’s decision to step down was, like his wife’s, prompted by reactions to an article on Friday in Eleftheros Typos newspaper, which revealed that Rania Antonopoulou had been receiving 1,000€ a month from the state as a rent subsidy for her apartment. She received the subsidy legally but there was public outrage that a Minister, whose income declarations point to considerable personal wealth, should receive such benefits.
She said she had not intended to provoke public sentiment but had been entitled to the subsidy and had applied for it, receiving 23,000€ over two years. She said she would return the money to state coffers. The Government announced her resignation later on Monday.
Opposition New Democracy chief Kyriakos Mitsotakis denounced the Government, saying it took “three whole days of intense reaction” before PM Tsipras demanded her resignation.
Greek Olive Oil Recognised
Thirteen Greek extra virgin olive oils (EVOO) received awards among the most highly acclaimed olive oils in the world following their success in international olive oil competitions in 2017.
According to Greek Liquid Gold website, the EVOO World Ranking (EVOOWR) 2017, “is part of the World Ranking of WAWWJ (World Association of Journalists and Writers of Wines, Liquors and others).” It recognizes the extra virgin olive oils that won the most prizes in the 30 international olive oil competitions held last year.
In 2017, according to EVOOWR, “Greece won 213 awards in 13 contests” and obtained 13 “EVOO of the Year” distinctions.
The Koroneiki variety received the most distinctions, while a number of flavoured olive oils were also awarded.
The 13 Greek olive oils that received awards are:
The Institutions were positive following initial talks held in Athens this week, with sources revealing that the negotiations will continue in coming weeks.
The Greek Government is committed to implementing all agreed actions towards concluding the Fourth Assessment of the bailout programme without delay. This is the final assessment before the expiry of the Programme in August.
The representatives of the Institutions will return after the Easter holidays. In the next phase, the two sides will also discuss Greece’s post-bailout development programme and debt relief.
It is hoped to have tied up loose ends by the 21st June Eurogroup meeting. The Fourth Assessment requires the implementation of 88 prior actions in total.
Finance Minister Euclid Tsakalotos stated that the majority of the pending issues are of a technical nature.
Latest Opinion Polls
Opinion polls published over the last few days put New Democracy, ahead of SYRIZA. However, the results of the two latest polls show a radically different margin between the two parties.
Specifically, the poll of Metron Analysis for “To Vima” newspaper puts New Democracy in a 9.7 percentage point lead over SYRIZA, posting 34.9% in voting preferences versus SYRIZA’s 25.2%. The neo-Nazi Golden Dawn party is in third place with 9.4%, while Movement of Change - the new centre-left party established via an alliance between PASOK, To Potami and other parties – came in at 8.4%. The Greek Communist Party (KKE) takes 7% and the Union of Centrists is on 3%. No other party is shown above the 3% threshold needed for entry to parliament, including SYRIZA’s junior coalition partner in government, AN-EL (the Independent Greeks).
However, a poll by “Alco” published by Ethnos newspaper places New Democracy’s lead much lower, at 4.9 percentage points. The voting intention results of Alco’s poll put New Democracy on 21.4% with SYRIZA on 16.5%, followed by Golden Dawn on 6.9%, Movement of Change on 6.2% and the KKE on 5%. All other parties fell below the 3% threshold.
The “Alco” poll is seen by analysts to be politically significant in terms of findings concerning the Novartis scandal, with ten senior Greek politicians being accused of taking bribes. The poll shows 66% of Greeks believe the Novartis case is a “real scandal” and 54% call for all the accused politicians to resign.
Ministers Resign
Economy Minister Dimitris Papadimitriou resigned hours after his wife, Deputy Minister for Social Solidarity Rania Antonopoulou, stepped down on Monday afternoon following revelations that she received 23,000€ in state rent subsidies for their apartment in the Athens neighbourhood of Kolonaki.
Mr. Papadimitriou’s decision to step down was, like his wife’s, prompted by reactions to an article on Friday in Eleftheros Typos newspaper, which revealed that Rania Antonopoulou had been receiving 1,000€ a month from the state as a rent subsidy for her apartment. She received the subsidy legally but there was public outrage that a Minister, whose income declarations point to considerable personal wealth, should receive such benefits.
She said she had not intended to provoke public sentiment but had been entitled to the subsidy and had applied for it, receiving 23,000€ over two years. She said she would return the money to state coffers. The Government announced her resignation later on Monday.
Opposition New Democracy chief Kyriakos Mitsotakis denounced the Government, saying it took “three whole days of intense reaction” before PM Tsipras demanded her resignation.
Greek Olive Oil Recognised
Thirteen Greek extra virgin olive oils (EVOO) received awards among the most highly acclaimed olive oils in the world following their success in international olive oil competitions in 2017.
According to Greek Liquid Gold website, the EVOO World Ranking (EVOOWR) 2017, “is part of the World Ranking of WAWWJ (World Association of Journalists and Writers of Wines, Liquors and others).” It recognizes the extra virgin olive oils that won the most prizes in the 30 international olive oil competitions held last year.
In 2017, according to EVOOWR, “Greece won 213 awards in 13 contests” and obtained 13 “EVOO of the Year” distinctions.
The Koroneiki variety received the most distinctions, while a number of flavoured olive oils were also awarded.
The 13 Greek olive oils that received awards are:
- Jordan Olivenoel GMBH / Jordan Olivenoel Natives Bio / Blend
- LIÁ Cultivators / LIÁ Premium / Koroneiki
- Hellenic Agricultural Enterprises Ltd / ACAIA / Kolovi
- Friedrich Bläuel & Co Ltd / Mani Bläuel Greek Organic / Koroneiki
- Greka Icons S.A. / Navarino Icons Koroneiki / Koroneiki
- Oliorama & Co GP / Oliorama Exclusive Bio PGI Olympia / Koroneiki
- Kidonakis Bros / Oleum Crete Bio / Koroneiki
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Kostis Palamas (January 13, 1859 - February 27, 1943
One of the greatest Greek poets of modern literature was also one of the most inspiring figures of Hellenism, as the works of Kostis Palamas became beacons of the newly independent Greek State.
Born in Patras on January 13, 1859, Palamas lived long enough to see Greece occupied by the Germans, as he died on February 27, 1943.
Palamas’ enormous poetic work is imbued with history, Hellenism and the formation of the “Great Idea” for his homeland, while at the same time it dealt with everyday people and their feelings. He was named Greece’s National Poet.
The poet’s lyricism and word-making skills were remarkable. But as well as being an exemplary poet, Palamas was known for his work as a literature critic, a literary writer and a literary philosopher.
Palamas lost both his parents at an early age. In 1864, his mother Penelope died during a premature birth, while less than a year later, his father Michael passed away as well. The six-year old Kostis was taken in by his uncle, Dimitrios Palamas and moved to his house in Mesolonghi. The young boy stayed there from 1867 until 1875. He started writing poems and literature as early as high school.
As soon as he finished high school, in 1876, he moved to Athens, where he enrolled in the Law School at Athens University. His studies, however, did not last long, as the heart of young Palamas belonged to poetry and literature. He started working as a journalist to make a living using different aliases and wrote feverishly.
Palamas soon stood out from his colleagues. He became the founder of the “New Athenian School” in poetry and in 1886 he published his first poem collection, “Songs of My Fatherland”.
In 1887 he married to Maria Valvi, with whom he had three children: Nafsika, Leandros and Alkis. His youngest son, Alkis, died at the age of five and the poet was lost in grief. In memory of Alkis, he wrote “Tomb” (1898), a magnificent elegy.
In 1879 he was appointed secretary of the University of Athens and, until his resignation in 1928 as Secretary-General, he won many honorary distinctions, the most important being that of Academy Member in 1926.
In 1924, the French Government honoured Palamas with the “Legion of Honour” title. In 1929 he was appointed President of the Academy of Sciences. Early in 1933, he was honoured with the “Goethe” medal by the German Ambassador to Athens. He was declared the Interim President of the newly established section of the International Writers’ Union. In 1934, the Spanish Government honoured him with the “Del la plaque del l’Ordre de la Republique” medal and a year later with the Medal of the Milanese Library of Congress.
In 1936, Palamas celebrated his fifty-year contribution to Greek poetry and literature. He received the title of Dean of the Royal Order for his contribution in the “Letters and Art” of the Ministry of Education. In 1937 his statue was raised in Messolonghi.
On February 9, 1943, his life partner Maria passed away. A few days later, on February 27, 1943 Palamas died. At his funeral, about 100,000 Greeks paid their respects to the “National Poet” in front of the amazed eyes of their German occupiers. Renowned poet Aggelos wrote and recited the poem “Palamas” for the funeral service.
One of the greatest Greek poets of modern literature was also one of the most inspiring figures of Hellenism, as the works of Kostis Palamas became beacons of the newly independent Greek State.
Born in Patras on January 13, 1859, Palamas lived long enough to see Greece occupied by the Germans, as he died on February 27, 1943.
Palamas’ enormous poetic work is imbued with history, Hellenism and the formation of the “Great Idea” for his homeland, while at the same time it dealt with everyday people and their feelings. He was named Greece’s National Poet.
The poet’s lyricism and word-making skills were remarkable. But as well as being an exemplary poet, Palamas was known for his work as a literature critic, a literary writer and a literary philosopher.
Palamas lost both his parents at an early age. In 1864, his mother Penelope died during a premature birth, while less than a year later, his father Michael passed away as well. The six-year old Kostis was taken in by his uncle, Dimitrios Palamas and moved to his house in Mesolonghi. The young boy stayed there from 1867 until 1875. He started writing poems and literature as early as high school.
As soon as he finished high school, in 1876, he moved to Athens, where he enrolled in the Law School at Athens University. His studies, however, did not last long, as the heart of young Palamas belonged to poetry and literature. He started working as a journalist to make a living using different aliases and wrote feverishly.
Palamas soon stood out from his colleagues. He became the founder of the “New Athenian School” in poetry and in 1886 he published his first poem collection, “Songs of My Fatherland”.
In 1887 he married to Maria Valvi, with whom he had three children: Nafsika, Leandros and Alkis. His youngest son, Alkis, died at the age of five and the poet was lost in grief. In memory of Alkis, he wrote “Tomb” (1898), a magnificent elegy.
In 1879 he was appointed secretary of the University of Athens and, until his resignation in 1928 as Secretary-General, he won many honorary distinctions, the most important being that of Academy Member in 1926.
In 1924, the French Government honoured Palamas with the “Legion of Honour” title. In 1929 he was appointed President of the Academy of Sciences. Early in 1933, he was honoured with the “Goethe” medal by the German Ambassador to Athens. He was declared the Interim President of the newly established section of the International Writers’ Union. In 1934, the Spanish Government honoured him with the “Del la plaque del l’Ordre de la Republique” medal and a year later with the Medal of the Milanese Library of Congress.
In 1936, Palamas celebrated his fifty-year contribution to Greek poetry and literature. He received the title of Dean of the Royal Order for his contribution in the “Letters and Art” of the Ministry of Education. In 1937 his statue was raised in Messolonghi.
On February 9, 1943, his life partner Maria passed away. A few days later, on February 27, 1943 Palamas died. At his funeral, about 100,000 Greeks paid their respects to the “National Poet” in front of the amazed eyes of their German occupiers. Renowned poet Aggelos wrote and recited the poem “Palamas” for the funeral service.
Novartis :
Parliamentary Committee to investigate the 10
24.2.2018
On Thursday, following a marathon 20-hour session, the Greek Parliament decided to establish a special committee that will investigate the role of politicians in the alleged Novartis scandal.
Ten high-ranking politicians, all belonging to the opposition parties of New Democracy and PASOK feature in the case file and will be investigated as to whether they took bribes from the Swiss Pharmaceutical Company Novartis. Among them are former Prime Minister Antonis Samaras, Bank of Greece Governor Yannis Stournaras and the EU’s Migration Commissioner Dimitris Avramopoulos.
Under Greek law, Parliament must first investigate the allegations which include bribery, breach of duty, and possibly money laundering against MPs before they can be stripped of their immunity and prosecuted by judicial authorities.
All the politicians have denied the allegations claiming that it is a Government fabrication against its political rivals. Some of them have also sued the protected witnesses and prosecutors, as well as Prime Minister Alexis Tsipras. Former PM Samaras has filed a lawsuit accusing witnesses of slander, prosecutors of breach of duty and PM Tsipras and “a Minister” of morally assisting them.
Mr. Venizelos, former leader of PASOK, has also filed a lawsuit against one of the witnesses, requesting that his identity be revealed for credibility checks. He called the case “the biggest and sloppiest plot” in decades.
The witnesses’ names have not been disclosed. They are protected from prosecution, court officials said on Tuesday.
Deputy Justice Minister Dimitris Papaggelopoulos accused the opposition parties of trying to intimidate prosecutors and judges by accusing them of participating in the Government’s machinations and procedural wrongdoings.
The Novartis investigation was launched in mid-December 2016 gathering evidence of bribery of thousands of state officials and doctors in order to obtain for Novartis preferential treatment in the market.
The Greek probe followed a two-year investigation conducted by USA authorities into the methods Novartis allegedly used to win dominance in the market.
Ten high-ranking politicians, all belonging to the opposition parties of New Democracy and PASOK feature in the case file and will be investigated as to whether they took bribes from the Swiss Pharmaceutical Company Novartis. Among them are former Prime Minister Antonis Samaras, Bank of Greece Governor Yannis Stournaras and the EU’s Migration Commissioner Dimitris Avramopoulos.
Under Greek law, Parliament must first investigate the allegations which include bribery, breach of duty, and possibly money laundering against MPs before they can be stripped of their immunity and prosecuted by judicial authorities.
All the politicians have denied the allegations claiming that it is a Government fabrication against its political rivals. Some of them have also sued the protected witnesses and prosecutors, as well as Prime Minister Alexis Tsipras. Former PM Samaras has filed a lawsuit accusing witnesses of slander, prosecutors of breach of duty and PM Tsipras and “a Minister” of morally assisting them.
Mr. Venizelos, former leader of PASOK, has also filed a lawsuit against one of the witnesses, requesting that his identity be revealed for credibility checks. He called the case “the biggest and sloppiest plot” in decades.
The witnesses’ names have not been disclosed. They are protected from prosecution, court officials said on Tuesday.
Deputy Justice Minister Dimitris Papaggelopoulos accused the opposition parties of trying to intimidate prosecutors and judges by accusing them of participating in the Government’s machinations and procedural wrongdoings.
The Novartis investigation was launched in mid-December 2016 gathering evidence of bribery of thousands of state officials and doctors in order to obtain for Novartis preferential treatment in the market.
The Greek probe followed a two-year investigation conducted by USA authorities into the methods Novartis allegedly used to win dominance in the market.
In his contribution to the Parliamentary debate, PM Tsipras emphasised that the investigation will go ahead and justice will be done. New Democracy abstained from the vote.
“How did this [scandal] happen? Was it a natural phenomenon? Who is to blame for this?” Alexis Tsipras wondered. “We will not cover up [the scandal],” he said during the debate. “The Greek people must learn who turned pain and illness into a means of enrichment.”
“For this scandal of mismanagement that caused huge damage to the Greek state, is there political responsibility?” he asked, adding that it is impossible for such a huge scandal to have taken place without the political leadership being aware of it.
“We won’t ignore the Greek people’s mandate,” Prime Minister Alexis Tsipras said before the vote. “We won’t help cover up or bury one of the biggest scandals in modern Greek history.”
The case has hit a nerve in Greece, slowly emerging from the debt crisis that many blamed on a corrupt political elite and a spendthrift state that ran up huge deficits. Greece was forced to slash healthcare spending to shore up its finances. It is estimated that Greece has lost more than €3 billion due to the scandal.
Meanwhile, Prosecutors already have a new list with the names of about 300 public and private doctors who are being investigated for taking bribes from the pharmaceutical industry with amounts ranging from 1,000€ to 5,000€. The list, concerning bribes during January 2016-January 2017, is included in material confiscated by prosecutors in their raid on the offices of Novartis. The new list of 300 doctors comes to be added to the nearly 4,000, against whom the prosecutor's office is expected soon to initiate criminal proceedings, as this strand of the investigation, involving bribes, has almost been completed.
At the same time, the corruption prosecutors are preparing a new round of protected witnesses’ depositions on other aspects of the pharmaceutical industry case.
The Prosecutor's investigation has focused on that part of the case concerning the offence of money laundering. In this context, the prosecution has submitted dozens of requests for legal assistance to Switzerland and Cyprus, seeking information not only on Novartis’ corporate accounts, called "Feeders", but also on several companies that are involved and may have been used as "vehicles" for "laundering" sums of money earmarked for bribes.
Background
Greece’s spending on pharmaceuticals from 2000 to 2009 increased by 385% - an annual rate of increase averaging 20%, when the corresponding annual increase in OECD countries was just 3.5%.
Insurance Funds were plundered in the same period, as doctors, contracted to the public health system, prescribed three times more than the average in other OECD countries.
At the same time, the Insurance Funds were called upon to pay the lion's share of the total health expenditure. The private sector contributed in total just 2.3% in the same period. The facts confirmed by the investigation into the period in question are as follows:
1. With regard to pharmaceutical expenditure from 2000 to 2009 in Greece, there was an increase of around 385% i.e. an average rate of increase of 19.6%, unlike the OECD countries, where it reached 3.5%. Also during the same period the consumption of medicines produced here in Greece came close to 15% of total consumption compared to 56% in Portugal and 70% in Austria (i.e. countries with approximately the same population).
2. Due to the large number of contracts doctors had with insurance funds, three times more prescriptions were written in Greece compared to the OECD countries.
3. The most recent OECD data shows total health spending in 2009 in Greece amounted to 9.6% of GDP, slightly above the average percentage of OECD countries (9.5%). The highest percentage was recorded in the USA (17.4% of GDP) followed by Holland (12%), France (11.8%) and Germany (11.5%). Greece is classified below the average of OECD countries in terms of per capita health expenditure.
4. From 2000 to 2009 there was an increase in per capita health expenditure at a rate of 6.9%, when in OECD countries this figure did not exceed 4% on average.
“How did this [scandal] happen? Was it a natural phenomenon? Who is to blame for this?” Alexis Tsipras wondered. “We will not cover up [the scandal],” he said during the debate. “The Greek people must learn who turned pain and illness into a means of enrichment.”
“For this scandal of mismanagement that caused huge damage to the Greek state, is there political responsibility?” he asked, adding that it is impossible for such a huge scandal to have taken place without the political leadership being aware of it.
“We won’t ignore the Greek people’s mandate,” Prime Minister Alexis Tsipras said before the vote. “We won’t help cover up or bury one of the biggest scandals in modern Greek history.”
The case has hit a nerve in Greece, slowly emerging from the debt crisis that many blamed on a corrupt political elite and a spendthrift state that ran up huge deficits. Greece was forced to slash healthcare spending to shore up its finances. It is estimated that Greece has lost more than €3 billion due to the scandal.
Meanwhile, Prosecutors already have a new list with the names of about 300 public and private doctors who are being investigated for taking bribes from the pharmaceutical industry with amounts ranging from 1,000€ to 5,000€. The list, concerning bribes during January 2016-January 2017, is included in material confiscated by prosecutors in their raid on the offices of Novartis. The new list of 300 doctors comes to be added to the nearly 4,000, against whom the prosecutor's office is expected soon to initiate criminal proceedings, as this strand of the investigation, involving bribes, has almost been completed.
At the same time, the corruption prosecutors are preparing a new round of protected witnesses’ depositions on other aspects of the pharmaceutical industry case.
The Prosecutor's investigation has focused on that part of the case concerning the offence of money laundering. In this context, the prosecution has submitted dozens of requests for legal assistance to Switzerland and Cyprus, seeking information not only on Novartis’ corporate accounts, called "Feeders", but also on several companies that are involved and may have been used as "vehicles" for "laundering" sums of money earmarked for bribes.
Background
Greece’s spending on pharmaceuticals from 2000 to 2009 increased by 385% - an annual rate of increase averaging 20%, when the corresponding annual increase in OECD countries was just 3.5%.
Insurance Funds were plundered in the same period, as doctors, contracted to the public health system, prescribed three times more than the average in other OECD countries.
At the same time, the Insurance Funds were called upon to pay the lion's share of the total health expenditure. The private sector contributed in total just 2.3% in the same period. The facts confirmed by the investigation into the period in question are as follows:
1. With regard to pharmaceutical expenditure from 2000 to 2009 in Greece, there was an increase of around 385% i.e. an average rate of increase of 19.6%, unlike the OECD countries, where it reached 3.5%. Also during the same period the consumption of medicines produced here in Greece came close to 15% of total consumption compared to 56% in Portugal and 70% in Austria (i.e. countries with approximately the same population).
2. Due to the large number of contracts doctors had with insurance funds, three times more prescriptions were written in Greece compared to the OECD countries.
3. The most recent OECD data shows total health spending in 2009 in Greece amounted to 9.6% of GDP, slightly above the average percentage of OECD countries (9.5%). The highest percentage was recorded in the USA (17.4% of GDP) followed by Holland (12%), France (11.8%) and Germany (11.5%). Greece is classified below the average of OECD countries in terms of per capita health expenditure.
4. From 2000 to 2009 there was an increase in per capita health expenditure at a rate of 6.9%, when in OECD countries this figure did not exceed 4% on average.
Fitch upgrades Greece's credit rating
The Fitch Ratings Agency on Friday upgraded Greece's sovereign debt grade, citing budget surpluses, greater political stability and the growing economy.
The Ratings Agency raised the debt rating one notch to 'B' from 'B-,' leaving the country in the "highly speculative" category but with a positive outlook.
The decision followed a similar move last month by S&P Global Ratings, which said the long-suffering economy's improving fiscal situation was coinciding with growing employment.
Also the Eurozone is expected to provide "substantial debt relief" this year, Fitch said.
"The concessional nature of Greece's public debt implies that debt servicing costs are low despite the high stock of public debt," Fitch said in announcing its decision.
The agency noted that Greece saw three straight quarters of GDP growth for the first time in 11 years, causing per capita incomes to rise as well, while political risks have receded.
"Between 2015 and 2017, the Greek Government has adopted “painful measures” under the bailout programme. Greece has also recorded rising budget surpluses and while the banking sector remains weak, banks have committed to plans to reduce their non-performing exposures by the end of next year."
More Paradise Papers
The Greek interest of the new leak concerns, among others, entrepreneurs, shipowners, media owners and politicians
The website of the International Consortium of Investigative Journalists has moved on to a fresh leak of thousands of names of people on the lists of the “Paradise Papers”of interest to Greece. The list includes 2,594 entries originating from corporate registries in Malta.
The new leak concerns, among others, entrepreneurs, shipowners, media owners and politicians. The first leak only included 235 names of Greeks.
It should be noted, of course, that this leak does not automatically mean illegality. The Paradise Papers simply demonstrate that the ways in which companies, but also individuals, avoid taxes using artificial structures, are, if executed correctly, legal.
It also shows, however, the methodical way in which an international system of legal tax avoidance was set up, which thousands of people used, and not only in Greece.
So the question that arises again is whether a legal process of avoiding the taxation of wealth within the country, contributing substantially to its economy, is an ethical or patriotic act.
At the same time, the revelations of the lists gives the State the tool and the obligation to make in- depth checks on where the wealth of the elites of our country is going.
The Fitch Ratings Agency on Friday upgraded Greece's sovereign debt grade, citing budget surpluses, greater political stability and the growing economy.
The Ratings Agency raised the debt rating one notch to 'B' from 'B-,' leaving the country in the "highly speculative" category but with a positive outlook.
The decision followed a similar move last month by S&P Global Ratings, which said the long-suffering economy's improving fiscal situation was coinciding with growing employment.
Also the Eurozone is expected to provide "substantial debt relief" this year, Fitch said.
"The concessional nature of Greece's public debt implies that debt servicing costs are low despite the high stock of public debt," Fitch said in announcing its decision.
The agency noted that Greece saw three straight quarters of GDP growth for the first time in 11 years, causing per capita incomes to rise as well, while political risks have receded.
"Between 2015 and 2017, the Greek Government has adopted “painful measures” under the bailout programme. Greece has also recorded rising budget surpluses and while the banking sector remains weak, banks have committed to plans to reduce their non-performing exposures by the end of next year."
More Paradise Papers
The Greek interest of the new leak concerns, among others, entrepreneurs, shipowners, media owners and politicians
The website of the International Consortium of Investigative Journalists has moved on to a fresh leak of thousands of names of people on the lists of the “Paradise Papers”of interest to Greece. The list includes 2,594 entries originating from corporate registries in Malta.
The new leak concerns, among others, entrepreneurs, shipowners, media owners and politicians. The first leak only included 235 names of Greeks.
It should be noted, of course, that this leak does not automatically mean illegality. The Paradise Papers simply demonstrate that the ways in which companies, but also individuals, avoid taxes using artificial structures, are, if executed correctly, legal.
It also shows, however, the methodical way in which an international system of legal tax avoidance was set up, which thousands of people used, and not only in Greece.
So the question that arises again is whether a legal process of avoiding the taxation of wealth within the country, contributing substantially to its economy, is an ethical or patriotic act.
At the same time, the revelations of the lists gives the State the tool and the obligation to make in- depth checks on where the wealth of the elites of our country is going.
NOVARTIS SCANDAL: Government seeks a Parliamentary Enquiry
17.2.2018
The Government has proposed that a parliamentary inquiry be set up to investigate the allegations that two former Prime Ministers and eight former Ministers accepted bribes from Swiss pharmaceutical giant Novartis.
On Monday, Prime Minister Alexis Tsipras announced the Government’s intention to ask for a preliminary judicial inquiry into the claims made by three protected witnesses. He said it was the only “institutional path” available to the government. “The case file has to be examined and it has to be established whether there are satisfactory indications that offences have been committed.”
He rejected criticism by the opposition that his government has orchestrated a judicial "witch hunt" against political opponents. He also said his government will not succumb to the attack by the opposition and "vested interests", as he said, adding that the independent justice system is responsible for the investigation.
“Responsibility, democratic consistency, constitutional loyalty, courage and political determination are now being tested,” he said.
“The Government has the responsibility to stop the waste of state funds and shed light to corruption cases.
He also stressed the importance of respecting the law and the regulations now more than ever with “sobriety, calmness and absolute commitment to the discovery and revelation of the truth”. “Our aim is the truth and nothing but the truth.”
He suggested that the purchase of overpriced medicines by previous Governments had cost the country 23€ billion and that had played a key part in forcing Greece to require a bailout in 2010. According to first estimates, the overpricing of medicines in the 2000-2010 period cost as much as €23 billion. “It is equivalent to one Memorandum. More than 10% of GDP.” “If that 23€ billion had remained in the public coffers, perhaps we would have avoided the adventure we have been on since 2010.”
PM Tsipras also insisted that his Government would seek damages from Novartis, which has vowed to investigate the graft claims. He contrasted this approach with the decision by the then New Democracy-led Government in 2012 to seek an out-of-court settlement with Siemens following the cash-for-contracts scandal involving the German engineering firm.
The parliamentary inquiry requested by the Government is to examine whether there were cases of giving or accepting bribes and if any money laundering took place. The view among MPs is that the parliamentary committee will complete its work swiftly and refer the matter back to the justice system, which will have to decide whether further action should be taken against any of the accused.
Protected Witnesses
"I personally am convinced that the only way to avoid the sense of "omertà", that is to say to avoid the cover-up and the use of the law concerning the liability of Ministers was for the case to have protected witnesses" emphasized Health Minister Xanthos.
He went on to explain that the international dimension of the issue "makes the theory of frame-up ridiculous". No scandal of this magnitude in the world has been investigated without the mechanism of protected witnesses and he adds that "it is foolish and hypocritical to say that the “hoods” must go. The allegations are serious, and refer to high level political figures and state officials, which is why witnesses must be protected.
He noted that the aim of the Government is neither the revenge against its political opponents nor the distraction from the problems of society, but the ensuring of an environment for a thorough investigation and the establishing of responsibility when cases of corruption in public life arise. "However, the most important, taking into account the evidence from the scrutiny of the cases, is that interventions in the legal hardening are taken forward so that these phenomena are not perpetuated."
"Here we have a “party”, proven, over a period of time and known to all. No one disputes this. Until now there was no political will for this “party” to be investigated. And just on the basis of the fact that there was a “party”, the political responsibilities are self-evident. Now, from the case file it is clearly demonstrated that there was an organised system of exercising influence by interested parties and of corruption in the field of medicine. Whether one or the other person made the contribution attributed to them by the witnesses, that remains to be decided by the courts. We do not want either collective guilt or collective acquittal. When someone in his term of office, either with omissions and errors or with conscious involvement and self-interested behaviour covers up such a large party, it means negating their political role."
“A Sordid Conspiracy”
Former Greek Prime Minister, Antonis Samaras, filed a lawsuit on Thursday against Prime Minister Alexis Tsipras, Deputy Justice Minister Dimitris Papangelopoulos, Judicial Officers and the protected witnesses who testified in the Novartis scandal.
Mr. Samaras accused PM Tsipras of being personally responsible for a “sordid conspiracy” that was being set up, while noting that this was “cobbled together so badly that it is collapsing on its own.” The charges mentioned in the lawsuit included abuse of power, breach of jurisdiction and confidentiality, while allegations against the witnesses concern the charges of slander and perjury.
Mr. Samaras explained that he decided to sue Alexis Tsipras because he has “set up a defamatory conspiracy” using the Novartis case. He also argued that conspiracy was put in motion publicly by the Government, just one day after the big rally in Syntagma square to protest the Government’s handling of the talks to resolve the FYROM name dispute, implying that the sole motivation of the Government was to take attention away from this sensitive issue.
Moreover, he further accused the government of lying and defaming its political rivals, while using divisive tactics. The former premier added that he also filed the lawsuit in order to prevent any future government from resorting to the tactic of “using perjurers to destroy political opponents”.
Responding to Mr. Samaras’ lawsuit, the Prime Minister’s Press Office issued a brief statement: “We are looking forward to reading the new conspiracy theory of Mr. Samaras, who is suffering from a permanent state of “persecution mania”. Yet, the only thing that is “persecuting” him is his past. We recommend that he files a lawsuit against it too”.
On Monday, Prime Minister Alexis Tsipras announced the Government’s intention to ask for a preliminary judicial inquiry into the claims made by three protected witnesses. He said it was the only “institutional path” available to the government. “The case file has to be examined and it has to be established whether there are satisfactory indications that offences have been committed.”
He rejected criticism by the opposition that his government has orchestrated a judicial "witch hunt" against political opponents. He also said his government will not succumb to the attack by the opposition and "vested interests", as he said, adding that the independent justice system is responsible for the investigation.
“Responsibility, democratic consistency, constitutional loyalty, courage and political determination are now being tested,” he said.
“The Government has the responsibility to stop the waste of state funds and shed light to corruption cases.
He also stressed the importance of respecting the law and the regulations now more than ever with “sobriety, calmness and absolute commitment to the discovery and revelation of the truth”. “Our aim is the truth and nothing but the truth.”
He suggested that the purchase of overpriced medicines by previous Governments had cost the country 23€ billion and that had played a key part in forcing Greece to require a bailout in 2010. According to first estimates, the overpricing of medicines in the 2000-2010 period cost as much as €23 billion. “It is equivalent to one Memorandum. More than 10% of GDP.” “If that 23€ billion had remained in the public coffers, perhaps we would have avoided the adventure we have been on since 2010.”
PM Tsipras also insisted that his Government would seek damages from Novartis, which has vowed to investigate the graft claims. He contrasted this approach with the decision by the then New Democracy-led Government in 2012 to seek an out-of-court settlement with Siemens following the cash-for-contracts scandal involving the German engineering firm.
The parliamentary inquiry requested by the Government is to examine whether there were cases of giving or accepting bribes and if any money laundering took place. The view among MPs is that the parliamentary committee will complete its work swiftly and refer the matter back to the justice system, which will have to decide whether further action should be taken against any of the accused.
Protected Witnesses
"I personally am convinced that the only way to avoid the sense of "omertà", that is to say to avoid the cover-up and the use of the law concerning the liability of Ministers was for the case to have protected witnesses" emphasized Health Minister Xanthos.
He went on to explain that the international dimension of the issue "makes the theory of frame-up ridiculous". No scandal of this magnitude in the world has been investigated without the mechanism of protected witnesses and he adds that "it is foolish and hypocritical to say that the “hoods” must go. The allegations are serious, and refer to high level political figures and state officials, which is why witnesses must be protected.
He noted that the aim of the Government is neither the revenge against its political opponents nor the distraction from the problems of society, but the ensuring of an environment for a thorough investigation and the establishing of responsibility when cases of corruption in public life arise. "However, the most important, taking into account the evidence from the scrutiny of the cases, is that interventions in the legal hardening are taken forward so that these phenomena are not perpetuated."
"Here we have a “party”, proven, over a period of time and known to all. No one disputes this. Until now there was no political will for this “party” to be investigated. And just on the basis of the fact that there was a “party”, the political responsibilities are self-evident. Now, from the case file it is clearly demonstrated that there was an organised system of exercising influence by interested parties and of corruption in the field of medicine. Whether one or the other person made the contribution attributed to them by the witnesses, that remains to be decided by the courts. We do not want either collective guilt or collective acquittal. When someone in his term of office, either with omissions and errors or with conscious involvement and self-interested behaviour covers up such a large party, it means negating their political role."
“A Sordid Conspiracy”
Former Greek Prime Minister, Antonis Samaras, filed a lawsuit on Thursday against Prime Minister Alexis Tsipras, Deputy Justice Minister Dimitris Papangelopoulos, Judicial Officers and the protected witnesses who testified in the Novartis scandal.
Mr. Samaras accused PM Tsipras of being personally responsible for a “sordid conspiracy” that was being set up, while noting that this was “cobbled together so badly that it is collapsing on its own.” The charges mentioned in the lawsuit included abuse of power, breach of jurisdiction and confidentiality, while allegations against the witnesses concern the charges of slander and perjury.
Mr. Samaras explained that he decided to sue Alexis Tsipras because he has “set up a defamatory conspiracy” using the Novartis case. He also argued that conspiracy was put in motion publicly by the Government, just one day after the big rally in Syntagma square to protest the Government’s handling of the talks to resolve the FYROM name dispute, implying that the sole motivation of the Government was to take attention away from this sensitive issue.
Moreover, he further accused the government of lying and defaming its political rivals, while using divisive tactics. The former premier added that he also filed the lawsuit in order to prevent any future government from resorting to the tactic of “using perjurers to destroy political opponents”.
Responding to Mr. Samaras’ lawsuit, the Prime Minister’s Press Office issued a brief statement: “We are looking forward to reading the new conspiracy theory of Mr. Samaras, who is suffering from a permanent state of “persecution mania”. Yet, the only thing that is “persecuting” him is his past. We recommend that he files a lawsuit against it too”.
The FYROM Name Issue
PM Tsipras referred to the negotiations and said Greece is not being called on “to give up something achieved by previous governments, but to take something back”.
He explained that “the neighbours [Skopje] must be persuaded to stop using the term ‘Macedonia’. That country’s designation must make clear that it has nothing to do in historical or geographical terms with the Greek Macedonia. “They must be persuaded to give back names and symbols that do not belong to them.” He said negotiations would not be easy, but said they were the only way.
Meanwhile in Skopje…
Skopje Mayor Petre Shilegov has said Greece and the Former Yugoslav Republic of Macedonia (FYROM) are showing a willingness to resolve their decades-old name dispute.
In an interview with Greek Sunday newspaper Documento, Mayor Shilegov said: “When you want to solve a problem, you solve it. When you don’t, you don’t […] We want to solve problems, not create them.”
Asked whether he agrees with a statement made decades ago by late FYROM President Kiro Gligorov, that FYROM nationals are Slavs and have no connection to Alexander the Great, Mayor Shilegov agreed.
“Alexander the Great was never a part of our official history. It was introduced into our history in the last 10 years.
“Basically, when you talk about such nationalities, states and peoples, you are referring to the last 300 years, while Alexander the Great was 2,300 years ago. I prefer to see him more as the leader who civilized the whole world,” he said.
The Mayor, who is also vice-president of the ruling Social Democratic Union (SDSM), said FYROM had already made constitutional amendments in 1992 and there are no articles in the current document concealing wider irredentist territorial claims.
“We changed our Constitution on this issue in 1992. There is no article in our constitution that claims such a thing in relation to any country.
“In fact, there is an article that says that we don’t have any territorial claims towards neighbouring countries. Therefore this should not constitute a threat to anyone in Greece,” he said.
PM Tsipras referred to the negotiations and said Greece is not being called on “to give up something achieved by previous governments, but to take something back”.
He explained that “the neighbours [Skopje] must be persuaded to stop using the term ‘Macedonia’. That country’s designation must make clear that it has nothing to do in historical or geographical terms with the Greek Macedonia. “They must be persuaded to give back names and symbols that do not belong to them.” He said negotiations would not be easy, but said they were the only way.
Meanwhile in Skopje…
Skopje Mayor Petre Shilegov has said Greece and the Former Yugoslav Republic of Macedonia (FYROM) are showing a willingness to resolve their decades-old name dispute.
In an interview with Greek Sunday newspaper Documento, Mayor Shilegov said: “When you want to solve a problem, you solve it. When you don’t, you don’t […] We want to solve problems, not create them.”
Asked whether he agrees with a statement made decades ago by late FYROM President Kiro Gligorov, that FYROM nationals are Slavs and have no connection to Alexander the Great, Mayor Shilegov agreed.
“Alexander the Great was never a part of our official history. It was introduced into our history in the last 10 years.
“Basically, when you talk about such nationalities, states and peoples, you are referring to the last 300 years, while Alexander the Great was 2,300 years ago. I prefer to see him more as the leader who civilized the whole world,” he said.
The Mayor, who is also vice-president of the ruling Social Democratic Union (SDSM), said FYROM had already made constitutional amendments in 1992 and there are no articles in the current document concealing wider irredentist territorial claims.
“We changed our Constitution on this issue in 1992. There is no article in our constitution that claims such a thing in relation to any country.
“In fact, there is an article that says that we don’t have any territorial claims towards neighbouring countries. Therefore this should not constitute a threat to anyone in Greece,” he said.
The Constitution of the Republic of Macedonia: Those “threatening” Articles
Coincidentally …..
“Greece will not tolerate any challenges to its territorial integrity”, stated PM Tsipras following Monday’s collision between Turkish and Greek coastguard vessels close to the disputed islet of Imia in the Aegean Sea.
Seeking international support, Prime Minister Alexis Tsipras underlined that Greece’s border was also that of the 28-nation European Union. “Our message, now, tomorrow and always, is clear ... Greece will not allow, accept or tolerate any challenge to its territorial integrity and its sovereign rights,” he said. “Greece is not a country which plays games.” “Challenges and aggressive rhetoric against the sovereign rights of an EU member state are against the EU in its entirety.”
In Brussels, Greek Defence Minister Panos Kammenos briefed U.S. Defence Secretary Jim Mattis and NATO chief Jens Stoltenberg on Turkey’s “provocative behaviour”. “I had the opportunity to show them material of proof that dismisses Turkish claims that (the incident at Imia) was an accident,” Minister Kammenos said in a statement. “Turkey is provoking and violating Greek and EU waters, it proceeds with acts that violate any notion of maritime law and is coming close to (causing) an ‘accident’ in the Aegean. It has full responsibility.”
Turkey's Prime Minister Binali Yildirim said on Wednesday."We explicitly expressed to him [Greek Prime Minister Alexis Tsipras] that staying away from tensions will be better, with regards to relations between the two countries." "It is not only Turkey that should be careful in avoiding such violations; at the same time, actors in the field from Greece should be more careful and act in accordance with the law and stay away from disputed areas," he said.
Yigit Bulut, the chief advisor to Turkish President Recep Tayyip Erdogan has told Turkey’s TRT TV channel that he is “in no doubt” that the USA has a plan to make Greece attack Turkey while its military is engaged in Syria. Turkey’s response, he said, will be tough, adding that Greece is no match for Turkey’s might. It would be like a "fly picking a fight with a giant," he said and warned that terrible consequences would follow for Greece. "We will break the arms and legs of any officers, of the prime minister or of any minister who dares to step onto Imia in the Aegean," Mr. Bulut said,
Turkey’s president, Recep Tayyip Erdogan, has described the Former Yugoslav Republic of Macedonia as “our brothers” and insisted Ankara would always stand by Skopje.
The Turkish leader said any insistence by Greece that FYROM change its name before joining NATO was “unfair” and said Athens was in the wrong over the long-running name dispute.
“For us Ankara and Skopje have no differences and we will not leave our brothers alone and we will always be with them,” Erdogan said.
During his visit to Turkey earlier this week, FYROM Prime Minister Zoran Zaev issued an invitation to Turkey to invest in Macedonia "without taxes for 10 years".
PM Zaev met with his Turkish counterpart and Turkish President Tayyip Erdogan and said "Turkey is not just supporting us. It is a partner who respects our perspectives, especially our NATO membership," while expressing his gratitude to Ankara for its friendly attitude.
Turkey's President Erdogan supported the "good neighbourly policies followed by Macedonia" and its efforts to resolve the dispute with Greece on the name issue.
Coincidentally …..
“Greece will not tolerate any challenges to its territorial integrity”, stated PM Tsipras following Monday’s collision between Turkish and Greek coastguard vessels close to the disputed islet of Imia in the Aegean Sea.
Seeking international support, Prime Minister Alexis Tsipras underlined that Greece’s border was also that of the 28-nation European Union. “Our message, now, tomorrow and always, is clear ... Greece will not allow, accept or tolerate any challenge to its territorial integrity and its sovereign rights,” he said. “Greece is not a country which plays games.” “Challenges and aggressive rhetoric against the sovereign rights of an EU member state are against the EU in its entirety.”
In Brussels, Greek Defence Minister Panos Kammenos briefed U.S. Defence Secretary Jim Mattis and NATO chief Jens Stoltenberg on Turkey’s “provocative behaviour”. “I had the opportunity to show them material of proof that dismisses Turkish claims that (the incident at Imia) was an accident,” Minister Kammenos said in a statement. “Turkey is provoking and violating Greek and EU waters, it proceeds with acts that violate any notion of maritime law and is coming close to (causing) an ‘accident’ in the Aegean. It has full responsibility.”
Turkey's Prime Minister Binali Yildirim said on Wednesday."We explicitly expressed to him [Greek Prime Minister Alexis Tsipras] that staying away from tensions will be better, with regards to relations between the two countries." "It is not only Turkey that should be careful in avoiding such violations; at the same time, actors in the field from Greece should be more careful and act in accordance with the law and stay away from disputed areas," he said.
Yigit Bulut, the chief advisor to Turkish President Recep Tayyip Erdogan has told Turkey’s TRT TV channel that he is “in no doubt” that the USA has a plan to make Greece attack Turkey while its military is engaged in Syria. Turkey’s response, he said, will be tough, adding that Greece is no match for Turkey’s might. It would be like a "fly picking a fight with a giant," he said and warned that terrible consequences would follow for Greece. "We will break the arms and legs of any officers, of the prime minister or of any minister who dares to step onto Imia in the Aegean," Mr. Bulut said,
Turkey’s president, Recep Tayyip Erdogan, has described the Former Yugoslav Republic of Macedonia as “our brothers” and insisted Ankara would always stand by Skopje.
The Turkish leader said any insistence by Greece that FYROM change its name before joining NATO was “unfair” and said Athens was in the wrong over the long-running name dispute.
“For us Ankara and Skopje have no differences and we will not leave our brothers alone and we will always be with them,” Erdogan said.
During his visit to Turkey earlier this week, FYROM Prime Minister Zoran Zaev issued an invitation to Turkey to invest in Macedonia "without taxes for 10 years".
PM Zaev met with his Turkish counterpart and Turkish President Tayyip Erdogan and said "Turkey is not just supporting us. It is a partner who respects our perspectives, especially our NATO membership," while expressing his gratitude to Ankara for its friendly attitude.
Turkey's President Erdogan supported the "good neighbourly policies followed by Macedonia" and its efforts to resolve the dispute with Greece on the name issue.
Bailout Programme – the final straight
The Government's negotiations with the Institutions are entering the final straight by the end of this month, leading to the country's exit from the programme in August this year. On 26th February the Heads of the Institutions’ teams (Peter Dolman of the IMF, Declan Costello from the European Commission, Francesco Drudi of the European Central Bank and Nikola Tziamaroli of the European Stability Mechanism are expected in Athens.
This visit will be short and the discussions will be the agenda and the timing of subsequent contacts, as well as the implementation of some of the most important prerequisites. It is planned for the Team Leaders to return after Easter for the final negotiations, included in which will be the details of “Greek Programme” that will be implemented after the Memorandum, the arrangements for the debt, and the kind of post-programme oversight -without a precautionary credit line.
Government sources reported that the "Greek Programme" will be of about 5 years’ duration, with two main strands: Development including the Welfare State and a Plan for the Debt.
The Development Part will include:
• Support priorities by sector (e.g. energy, the complete food chain etc.)
• The Support Plan for small and medium-sized enterprises
• Identifying and resolving problems in key areas (e.g. dealing with bureaucracy, quicker administration of Justice, "red" loans, etc.)
• The programming of grants.
The Social Arm will set goals for strengthening the Welfare State (e.g. hospital staffing, benefits, raising the minimum wage).
The final exit from the programme will be accompanied by some kind of supervision, which, among other things, will focus on:
• The implementation of some "end pieces" of the current agreement, such as the completion of the privatisation programme.
• The commitment that there will not be changes made to what has been implemented (e.g. the tax collecting mechanism will remain independent)
• The commitments that major reforms in areas that are considered important (e.g. Justice, public administration, etc.) will continue.
The Plan for the Debt
With the IMF's attitude currently an "unknown x" and a new report expected from the Fund on the sustainability of the debt, Greece and its European partners are in agreement that the settlement on the debt should be based on the so-called "French model" and consists of the following: on the one hand, linking ,on an annual basis, debt repayment to the growth of the Greek economy, until 75% of the Public Debt has been repaid. For example, if there are periods of stagnation in the economy, the amounts required for debt repayment will decrease. And, on the other hand, the debt relief is on condition that the agreed reforms are implemented.
Government officials stated that by the Eurogroup in June (or shortly thereafter) agreement will have concluded with the Institutions on all the above. At the same time, however, in the coming months until the deadline the remaining 88 prerequisites must have been implemented.
Government officilas said that on the list of prerequisites there are five "snags", which, however, can be easily resolved.
In May to June the discussion about public finances will take place (the already enacted measures on pensions and tax allowances for 2019 and 2020, as well as the countermeasures). The Greek side has as its "ace in the hole" the very high Primary Surplus for this year, which is estimated at 4% of GDP (or 2.9% of GDP after subtracting the social dividend and "security cushion"). However, up until now the IMF has systematically made much lower estimates.
Among the other "thorns" are the changes to the Property Tax [ΕΝΦΙΑ] after the reshaping of objective values, the revision of the "Katseli Law" (Government wants greater protection for borrowers), the promotion of "hot" privatisations mainly in the energy sector and the reform of disability allowances.
Talking about Greece’s exit from the Bailout Programme, Alexis Tsipras said “We are on the final stretch of the negotiations to exit the supervision in summer of 2018,” adding that the Greek economy has turned a page. “The conditions were never better for tapping into the markets.” Greece in the last week raised billions of euros with the sale of seven-year bonds.
The Government's negotiations with the Institutions are entering the final straight by the end of this month, leading to the country's exit from the programme in August this year. On 26th February the Heads of the Institutions’ teams (Peter Dolman of the IMF, Declan Costello from the European Commission, Francesco Drudi of the European Central Bank and Nikola Tziamaroli of the European Stability Mechanism are expected in Athens.
This visit will be short and the discussions will be the agenda and the timing of subsequent contacts, as well as the implementation of some of the most important prerequisites. It is planned for the Team Leaders to return after Easter for the final negotiations, included in which will be the details of “Greek Programme” that will be implemented after the Memorandum, the arrangements for the debt, and the kind of post-programme oversight -without a precautionary credit line.
Government sources reported that the "Greek Programme" will be of about 5 years’ duration, with two main strands: Development including the Welfare State and a Plan for the Debt.
The Development Part will include:
• Support priorities by sector (e.g. energy, the complete food chain etc.)
• The Support Plan for small and medium-sized enterprises
• Identifying and resolving problems in key areas (e.g. dealing with bureaucracy, quicker administration of Justice, "red" loans, etc.)
• The programming of grants.
The Social Arm will set goals for strengthening the Welfare State (e.g. hospital staffing, benefits, raising the minimum wage).
The final exit from the programme will be accompanied by some kind of supervision, which, among other things, will focus on:
• The implementation of some "end pieces" of the current agreement, such as the completion of the privatisation programme.
• The commitment that there will not be changes made to what has been implemented (e.g. the tax collecting mechanism will remain independent)
• The commitments that major reforms in areas that are considered important (e.g. Justice, public administration, etc.) will continue.
The Plan for the Debt
With the IMF's attitude currently an "unknown x" and a new report expected from the Fund on the sustainability of the debt, Greece and its European partners are in agreement that the settlement on the debt should be based on the so-called "French model" and consists of the following: on the one hand, linking ,on an annual basis, debt repayment to the growth of the Greek economy, until 75% of the Public Debt has been repaid. For example, if there are periods of stagnation in the economy, the amounts required for debt repayment will decrease. And, on the other hand, the debt relief is on condition that the agreed reforms are implemented.
Government officials stated that by the Eurogroup in June (or shortly thereafter) agreement will have concluded with the Institutions on all the above. At the same time, however, in the coming months until the deadline the remaining 88 prerequisites must have been implemented.
Government officilas said that on the list of prerequisites there are five "snags", which, however, can be easily resolved.
In May to June the discussion about public finances will take place (the already enacted measures on pensions and tax allowances for 2019 and 2020, as well as the countermeasures). The Greek side has as its "ace in the hole" the very high Primary Surplus for this year, which is estimated at 4% of GDP (or 2.9% of GDP after subtracting the social dividend and "security cushion"). However, up until now the IMF has systematically made much lower estimates.
Among the other "thorns" are the changes to the Property Tax [ΕΝΦΙΑ] after the reshaping of objective values, the revision of the "Katseli Law" (Government wants greater protection for borrowers), the promotion of "hot" privatisations mainly in the energy sector and the reform of disability allowances.
Talking about Greece’s exit from the Bailout Programme, Alexis Tsipras said “We are on the final stretch of the negotiations to exit the supervision in summer of 2018,” adding that the Greek economy has turned a page. “The conditions were never better for tapping into the markets.” Greece in the last week raised billions of euros with the sale of seven-year bonds.
The "Macedonian Question" :
Latest Developments
10.02.2018
According to the police estimate, approximately 140,000 demonstrators, clearly less than expected, participated in the rally on the “Macedonian Question” which took place in Syntagma Square last Sunday.
Following the Government Cabinet meeting in Skopje on Monday, the Prime Minister of FYROM, Zoran Zaev said that the name of the largest airport in the country, “Alexander the Great” has been changed to “Skopje’s International Airport”, while the highway along Corridor 10 has been re-named “Highway of Friendship”. According to him, this is a big step to confirm relations of friendship and trust with Greece.
“For the sake of the ongoing process of talks with Greece, I do not want to make any further comments, but we’re acting very cautiously”, he said, adding that he’s optimistic on finding a solution.
“It looks very difficult, but we have never expected it to be easy. As a government, we are committed in finding a solution for this problem”, PM Zaev said.
The Greek Ministry of Foreign Affairs said through an official announcement, that the fYROM decision regarding the name change of the national airport in Skopje and the national highway which leads to the border with Greece is a positive one.
"We welcome today's decision by the government of the former Yugoslav Republic of Macedonia to rename Skopje's national airport to 'International Airport of Skopje' and their main highway to "Highway of Friendship'."
It is an important development towards fighting irredentism and we hope that it will signal the opening of a new chapter in the relations between the two countries", the Foreign Ministry's announcement reads.
PM Tsipras : "The need for a new patriotism"
From the platform of the 9th Regional Development Conference in Patras, Alexis Tsipras delivered a clear message. He underlined the need for a new patriotism in contrast to those "who made patriotism a flag of convenience for them to serve the most narrow-minded self-interest."
"If the homeland needs something today, now, from all of us, up to and including the last Greek, it is a modern, resolute, unyielding patriotism. A patriotism that responds to difficult times, not with inflammatory rhetoric, but in terms of everyday virtue", in contrast to the flag waiving expressed by Antonis Samaras and the extreme wing of New Democracy
"There can be no patriotism in the Panama Papers, in off shore activity,in greasing palms, in serving vested interests, in defrauding the State, in the misappropriation of public funds, in pay-offs and corruption", characterising as "criminally disingenuous" those politicians who on the one hand engage "in a competition of patriotism and on the other consider it legal and ethical for their names to be registered on the tax evasion lists. Or denouncing as political persecution the reporting of their names in criminal proceedings.
"Patriotism is not a show and rhetoric nor is it standing to attention at the raising of the flag", it is the practice of everyday virtue, and above all of honesty - in every action, every movement, every initiative, especially by those who the people appoint to manage the country's fortunes. But also by each of us individually."
Athens Rally: "No use of the name Macedonia"
According to the police estimate, approximately 140,000 demonstrators, clearly less than expected, participated in the rally on the “Macedonian Question” which took place in Syntagma Square last Sunday. According to the police, 283 buses arrived in Attica for the event, of which 189 came through the Afidnes toll station and 94 through the toll station of Eleusis.
Many Greeks object to the country of the same name calling itself Macedonia, saying it implies a territorial claim on Greece's northern Macedonia region.
Organisers of Sunday's protest estimated that 1.5 million people had attended but the police said turnout was less than one tenth of that.
At the rally Mikis Theodorakis said "We appeal to Members of Parliament to call for a debate on the issue in Parliament and to mobilize on this issue of national importance." "Only we Greeks can give or refuse to give to the people of Skopje the right to appropriate, in the future by means of the name “Macedonia”, an integral part of Hellenism".
"I believe absolutely, we must face up to this huge problem united like a fist."
Mr.Theodorakis then said that Skopje is misrepresenting history : "It is not possible for us to agree with this falsification of history. Then we would become complicit with the forces that are openly targetting our territorial integrity."
"Macedonia is and was a unity, is and will always be Greek. Long live the Greek people," he ended by saying.
The Metropolitan of Syros, Dorotheos, read the message from the Holy Synod.
"The Church of Greece supports every expression of righteous defence of Macedonia. I cannot accept the term "Macedonia" or any derivative as a component of another name. It is a sacred responsibility of the Church to minister to the unity of all Greeks without discrimination. Let us make this rally today a message of national unity. Macedonia is in the hearts of all Greeks."
George Patoulis, President of KEDE [The Central Union of the Municipalities of Greece Ed]: "We will not tolerate the sell off of our history. Macedonia is Greek. Local Government is at the forefront of the national struggle to defend the values of Hellenism" "Today in the heart of Athens, more than 1.5 million [sic] people are shouting that Macedonia is Greek. We are sending a clear message to those who are ready to come to terms that we will not compromise."
The roots of the conflict run deep. When the Ottoman Turks were driven from the region in 1912, Macedonia was carved up by Greece, Serbia and Bulgaria. The bits grabbed by Serbia ended up as part of the new Yugoslavia. When Yugoslavia collapsed in 1991, Greece objected to that part of it being recognised as the Macedonian republic, arguing that this implied a claim to its own region of the same name. From then on Greece, the United Nations, the EU and many other international organisations have had to call it FYROM—the Former Yugoslav Republic of Macedonia.
In response
On Monday, Government spokesman Dimitris Tzanakopoulos said “The shift of Mr. Theodorakis to intolerant and politically extreme positions is a sad development.”
Mr. Tzanakopoulos criticized the presence and speech of renowned composer Mikis Theodorakis who spoke at Sunday’s protest rally.
“I do not think it was a good decision to appear and speak the way he spoke at the rally. I do not know if referring to leftist fascism was referring to himself and his past. I do not know if he honours the way that people of the far-right and well-known fascists greeted him,” Mr.Tzanakopoulos said.
Mr. Tzanakopoulso said that the Government definitely takes note of the large mobilization of Greek people, but insisted that the tone of the rally was set by extremist political elements.
“The slogan of yesterday’s rally was “no use of the term Macedonia” for the name of the neighbouring country. But is this a position that Greek foreign policy can adopt?” he said.
He criticised New Democracy leader Kyriakos Mitsotakis accusing him of not making his position clear on the use of the term “Macedonia” in the name of Greece’s Balkan neighbour.
The Press Office of SYRIZA was scathing in its comment on Sunday’s rally:
“Today’s rally has completely confounded the expectations of the organizers, who all the previous days have raised very high the expectation of a mass mobilisation, with the assistance of a large segment of the mass media, which operated as its director of communications.
The nationalistic and bigoted message that the speeches expressed and the presence of the whole of Golden Dawn made its message very clear. In addition, the presence of former Prime Minister and President of the New Democracy, Antonis Samaras, highlighted the opportunistic attitude of the main opposition party, which does not hesitate to align itself fully with the extreme right to divide the Greek people and exploit their patriotic concerns. The attitude of Mr. Mitsotakis on this issue is a monument of hypocrisy and irresponsibility, as he does not dare to put forward in public dialogue a clear position on the name issue.
SYRIZA supports the efforts of the Government in the negotiations to resolve the issue of the name of the neighbouring country. The peaceful coexistence of peoples, security and stability in the Balkans is the strongest guarantee for the safeguarding of national interests and expresses the desire of the majority of the Greek people for a future beyond blind alleys and fruitless isolationism.
“For the sake of the ongoing process of talks with Greece, I do not want to make any further comments, but we’re acting very cautiously”, he said, adding that he’s optimistic on finding a solution.
“It looks very difficult, but we have never expected it to be easy. As a government, we are committed in finding a solution for this problem”, PM Zaev said.
The Greek Ministry of Foreign Affairs said through an official announcement, that the fYROM decision regarding the name change of the national airport in Skopje and the national highway which leads to the border with Greece is a positive one.
"We welcome today's decision by the government of the former Yugoslav Republic of Macedonia to rename Skopje's national airport to 'International Airport of Skopje' and their main highway to "Highway of Friendship'."
It is an important development towards fighting irredentism and we hope that it will signal the opening of a new chapter in the relations between the two countries", the Foreign Ministry's announcement reads.
PM Tsipras : "The need for a new patriotism"
From the platform of the 9th Regional Development Conference in Patras, Alexis Tsipras delivered a clear message. He underlined the need for a new patriotism in contrast to those "who made patriotism a flag of convenience for them to serve the most narrow-minded self-interest."
"If the homeland needs something today, now, from all of us, up to and including the last Greek, it is a modern, resolute, unyielding patriotism. A patriotism that responds to difficult times, not with inflammatory rhetoric, but in terms of everyday virtue", in contrast to the flag waiving expressed by Antonis Samaras and the extreme wing of New Democracy
"There can be no patriotism in the Panama Papers, in off shore activity,in greasing palms, in serving vested interests, in defrauding the State, in the misappropriation of public funds, in pay-offs and corruption", characterising as "criminally disingenuous" those politicians who on the one hand engage "in a competition of patriotism and on the other consider it legal and ethical for their names to be registered on the tax evasion lists. Or denouncing as political persecution the reporting of their names in criminal proceedings.
"Patriotism is not a show and rhetoric nor is it standing to attention at the raising of the flag", it is the practice of everyday virtue, and above all of honesty - in every action, every movement, every initiative, especially by those who the people appoint to manage the country's fortunes. But also by each of us individually."
Athens Rally: "No use of the name Macedonia"
According to the police estimate, approximately 140,000 demonstrators, clearly less than expected, participated in the rally on the “Macedonian Question” which took place in Syntagma Square last Sunday. According to the police, 283 buses arrived in Attica for the event, of which 189 came through the Afidnes toll station and 94 through the toll station of Eleusis.
Many Greeks object to the country of the same name calling itself Macedonia, saying it implies a territorial claim on Greece's northern Macedonia region.
Organisers of Sunday's protest estimated that 1.5 million people had attended but the police said turnout was less than one tenth of that.
At the rally Mikis Theodorakis said "We appeal to Members of Parliament to call for a debate on the issue in Parliament and to mobilize on this issue of national importance." "Only we Greeks can give or refuse to give to the people of Skopje the right to appropriate, in the future by means of the name “Macedonia”, an integral part of Hellenism".
"I believe absolutely, we must face up to this huge problem united like a fist."
Mr.Theodorakis then said that Skopje is misrepresenting history : "It is not possible for us to agree with this falsification of history. Then we would become complicit with the forces that are openly targetting our territorial integrity."
"Macedonia is and was a unity, is and will always be Greek. Long live the Greek people," he ended by saying.
The Metropolitan of Syros, Dorotheos, read the message from the Holy Synod.
"The Church of Greece supports every expression of righteous defence of Macedonia. I cannot accept the term "Macedonia" or any derivative as a component of another name. It is a sacred responsibility of the Church to minister to the unity of all Greeks without discrimination. Let us make this rally today a message of national unity. Macedonia is in the hearts of all Greeks."
George Patoulis, President of KEDE [The Central Union of the Municipalities of Greece Ed]: "We will not tolerate the sell off of our history. Macedonia is Greek. Local Government is at the forefront of the national struggle to defend the values of Hellenism" "Today in the heart of Athens, more than 1.5 million [sic] people are shouting that Macedonia is Greek. We are sending a clear message to those who are ready to come to terms that we will not compromise."
The roots of the conflict run deep. When the Ottoman Turks were driven from the region in 1912, Macedonia was carved up by Greece, Serbia and Bulgaria. The bits grabbed by Serbia ended up as part of the new Yugoslavia. When Yugoslavia collapsed in 1991, Greece objected to that part of it being recognised as the Macedonian republic, arguing that this implied a claim to its own region of the same name. From then on Greece, the United Nations, the EU and many other international organisations have had to call it FYROM—the Former Yugoslav Republic of Macedonia.
In response
On Monday, Government spokesman Dimitris Tzanakopoulos said “The shift of Mr. Theodorakis to intolerant and politically extreme positions is a sad development.”
Mr. Tzanakopoulos criticized the presence and speech of renowned composer Mikis Theodorakis who spoke at Sunday’s protest rally.
“I do not think it was a good decision to appear and speak the way he spoke at the rally. I do not know if referring to leftist fascism was referring to himself and his past. I do not know if he honours the way that people of the far-right and well-known fascists greeted him,” Mr.Tzanakopoulos said.
Mr. Tzanakopoulso said that the Government definitely takes note of the large mobilization of Greek people, but insisted that the tone of the rally was set by extremist political elements.
“The slogan of yesterday’s rally was “no use of the term Macedonia” for the name of the neighbouring country. But is this a position that Greek foreign policy can adopt?” he said.
He criticised New Democracy leader Kyriakos Mitsotakis accusing him of not making his position clear on the use of the term “Macedonia” in the name of Greece’s Balkan neighbour.
The Press Office of SYRIZA was scathing in its comment on Sunday’s rally:
“Today’s rally has completely confounded the expectations of the organizers, who all the previous days have raised very high the expectation of a mass mobilisation, with the assistance of a large segment of the mass media, which operated as its director of communications.
The nationalistic and bigoted message that the speeches expressed and the presence of the whole of Golden Dawn made its message very clear. In addition, the presence of former Prime Minister and President of the New Democracy, Antonis Samaras, highlighted the opportunistic attitude of the main opposition party, which does not hesitate to align itself fully with the extreme right to divide the Greek people and exploit their patriotic concerns. The attitude of Mr. Mitsotakis on this issue is a monument of hypocrisy and irresponsibility, as he does not dare to put forward in public dialogue a clear position on the name issue.
SYRIZA supports the efforts of the Government in the negotiations to resolve the issue of the name of the neighbouring country. The peaceful coexistence of peoples, security and stability in the Balkans is the strongest guarantee for the safeguarding of national interests and expresses the desire of the majority of the Greek people for a future beyond blind alleys and fruitless isolationism.
Novartis: Greek Parliament
to consider bribery indictments
Greece's Parliament has received indictments linking ten prominent politicians to a bribery scandal involving Swiss pharmaceutical company Novartis.
Parliament announced on Tuesday the results of a judicial investigation into alleged bribes paid to public officials by Basel-based Novartis over nearly a decade to promote the use of its products in public hospitals.
"This is a massive scandal that has stunned Greek society," Government spokesman Dimitris Tzanakopoulos said.
Under Greek law, politicians do not face prosecution directly from judicial authorities. Allegations must first be referred to Parliament for review before MPs vote on whether to strip the accused of their automatic immunity.
The politicians named include current Bank of Greece Governor Yannis Stournaras and EU Home Affairs Commissioner Dimitris Avramopoulos, plus former New Democracy Prime Minister Antonis Samaras, the caretaker Prime Minister Panagiotos Pikramenos in 2012 and five former Health Ministers. They have all denied the allegations and told To Bima newspaper that there is a slander operation at work and that they will sue for slander.
Antonis Samaras, the former ND Prime Minister who served between 2012 and 2015, said the allegations against him were politically motivated, and vowed to file a lawsuit against Prime Minister Alexis Tsipras.
"This is the most ruthless but also most ridiculous conspiracy ever," he said.
Pharmaceutical expenditures stood at 1.27€ billion in 2000, then skyrocketed to 5.1€ billion in 2009. It was gradually reduced during the crisis to 2€ billion in 2014 where it has stabilised.
A legal formula is being sought for compensation to the Public Treasury - 50€ million is close to the amount earmarked for corrupting politicians – Up to 3€ billion is the damage to the Public Treasury from the transactions of Novartis, up to 23€ billion is the damage between 2000 and 2015 from the practices of all pharmaceutical companies.
The details of the indictment reveal dizzying amounts were traded as bribes to win Novartis a dominant role in the Greek medicine market causing pharmaceutical expenditure in Greece to skyrocket. According to them, about 50€ million flowed to two former Prime Ministers and eight former Ministers, while the damage caused to the Public Treasury from its dealings with Novartis touches 3€ billion. The damage to the Public Treasury from 2000 up to 2015 from the practices of all pharmaceutical companies reaches 23€ billion.
The Public Prosecutor of Corruption is now seeking a legal formula so that the Public Treasury can be compensated for the mountain of money lost.
Prosecution sources speak of the "shocking testimonies" of three protected witnesses who gave revealing evidence about the trading of "black" money, naming the politicians directly.
The Prosecutor's Office continues to work closely with the US authorities, ahead of requests for judicial assistance sent to Switzerland and Cyprus.
So far, however, it has been revealed from the testimony of the protected witnesses that around 45-50€ million were directed to the ten politicians. Total bribes reached around 60€ million, which, apart from the politicians, were shared by four or five General Secretaries of Ministries, members of committees, administrators of public organizations, political consultants etc.
One protected witness also reportedly submits that "the big “party” took place before the Memoranda", during which about 40€ million were given in bribes for the purchase of flu vaccine and also for anti-cancer drugs.
From 2000 onwards pharmaceutical expenditure in Greece was twice the European average.
Overpricing and pressure to give preference to its own medications are practices attributed to Novartis.
Novartis succeeded in getting paid as an absolute priority by insurance organizations ahead of their competitors, while its medicines were supplied at inflated prices and were focused mainly on the areas of Oncology and Ophthalmology.
According to information so far about the unfair practices of Novartis, approximately twenty witnesses have made depositions speaking about preferential pricing and approval processes and even the delay of the approval of drugs from other companies.
In its communiqué on this issue, Novartis states: "We have taken note of the publications concerning our business practices in Greece. We continue to work with the authorities in Greece and abroad. Novartis is committed to the highest standards of ethical business conduct and regulatory compliance in all aspects of our work. We take every allegation about possible misconduct extremely seriously and are considering thoroughly all reports."
A "put-up scandal" and "false witnesses"
With lawsuits, threats, and attacking the credibility of witnesses, those implicated in the Novartis scandal are responding on the TV, talking about political prosecution and conspiracy by Prime Minister Alexis Tsipras and Government Ministers.
The former Prime Minister, Panagiotos Pikramenos and former Health Ministers, Marios Salmas, George Koutroumanos, Adonis Georgiadis all appeared on Ant1 and SKAI.
The former Deputy Health Minister, Marios Salmas spoke about a “put-up scandal” and labelled witnesses as "false witnesses" and defended himself by saying that during his period of office Novartis’ turnover decreased by 30%. He maintained that the case is "political".
On ANT1, 'A Nightmare ' is how former Prime Minister Pikrammenos described what is happening while he attempted to give a political dimension to his own "involvement" as a friend of the family of Mr. Mitsotakis. "Over 5 years nothing had been heard from anyone, and now all of a sudden?" "I'll talk to my lawyer, I don't know if I'll file lawsuits, or not." "I will not sit with folded hands".
"There will be legal moves" George Koutroumanos revealed, denouncing as "machination" and dishonest the Government’s political method.
He in turn attacked the witnesses claiming that "it is being accused by a witness who does not appear". He wondered why they consider that "the witnesses are at risk from politicians or from officers of the administration." However, according to the report of Prosecutor Papadatos who spoke to ERT "one witness has already been threatened" while on camera Mr Salmas publicly threatened the witnesses.
Mr. Mantas stressed that "it is not expected by the Parliamentary Rules of Procedure nor by the constitutional processes for the case file to be given publicity. That could make it invalid."
Antonis Lykourentzos on ERT stated that he would appeal directly to the courts, to pursue as he said every legal means in the prosecution of those involved in tarnishing his name. "I will appeal directly to the Courts and I want them to access my phones to prove that I had no contact with Mr. Frouzi."
"If I don’t put them in prison, I will not rest," said former Health Minister Adonis Georgiades while he talked about "false witnesses" and " hooded witnesses" whose names should be published. "Mr. Tsipras has organized everything," he said making threats against the Prime Minister.
Dimitris Avramopoulos, named by prosecutors among the 10 Greek politicians, denounced the corruption investigation as an "unprecedented plot". The allegations relate to a period between 2006 and 2015 - including when Mr Avramopoulos was Greece's Health Minister. In a statement on Wednesday, he condemned what he called an "unsubstantiated and flawed case file".
"It is now clear that it is an unprecedented plot which cannot stand in any member state of the European Union. Only sick minds could have invented and attempted it."
Mr Avramopoulos said the investigation was a bid to "exterminate political opponents".
All former Health Ministers declare that when they were in office, Novartis suffered losses.
Parliament announced on Tuesday the results of a judicial investigation into alleged bribes paid to public officials by Basel-based Novartis over nearly a decade to promote the use of its products in public hospitals.
"This is a massive scandal that has stunned Greek society," Government spokesman Dimitris Tzanakopoulos said.
Under Greek law, politicians do not face prosecution directly from judicial authorities. Allegations must first be referred to Parliament for review before MPs vote on whether to strip the accused of their automatic immunity.
The politicians named include current Bank of Greece Governor Yannis Stournaras and EU Home Affairs Commissioner Dimitris Avramopoulos, plus former New Democracy Prime Minister Antonis Samaras, the caretaker Prime Minister Panagiotos Pikramenos in 2012 and five former Health Ministers. They have all denied the allegations and told To Bima newspaper that there is a slander operation at work and that they will sue for slander.
Antonis Samaras, the former ND Prime Minister who served between 2012 and 2015, said the allegations against him were politically motivated, and vowed to file a lawsuit against Prime Minister Alexis Tsipras.
"This is the most ruthless but also most ridiculous conspiracy ever," he said.
Pharmaceutical expenditures stood at 1.27€ billion in 2000, then skyrocketed to 5.1€ billion in 2009. It was gradually reduced during the crisis to 2€ billion in 2014 where it has stabilised.
A legal formula is being sought for compensation to the Public Treasury - 50€ million is close to the amount earmarked for corrupting politicians – Up to 3€ billion is the damage to the Public Treasury from the transactions of Novartis, up to 23€ billion is the damage between 2000 and 2015 from the practices of all pharmaceutical companies.
The details of the indictment reveal dizzying amounts were traded as bribes to win Novartis a dominant role in the Greek medicine market causing pharmaceutical expenditure in Greece to skyrocket. According to them, about 50€ million flowed to two former Prime Ministers and eight former Ministers, while the damage caused to the Public Treasury from its dealings with Novartis touches 3€ billion. The damage to the Public Treasury from 2000 up to 2015 from the practices of all pharmaceutical companies reaches 23€ billion.
The Public Prosecutor of Corruption is now seeking a legal formula so that the Public Treasury can be compensated for the mountain of money lost.
Prosecution sources speak of the "shocking testimonies" of three protected witnesses who gave revealing evidence about the trading of "black" money, naming the politicians directly.
The Prosecutor's Office continues to work closely with the US authorities, ahead of requests for judicial assistance sent to Switzerland and Cyprus.
So far, however, it has been revealed from the testimony of the protected witnesses that around 45-50€ million were directed to the ten politicians. Total bribes reached around 60€ million, which, apart from the politicians, were shared by four or five General Secretaries of Ministries, members of committees, administrators of public organizations, political consultants etc.
One protected witness also reportedly submits that "the big “party” took place before the Memoranda", during which about 40€ million were given in bribes for the purchase of flu vaccine and also for anti-cancer drugs.
From 2000 onwards pharmaceutical expenditure in Greece was twice the European average.
Overpricing and pressure to give preference to its own medications are practices attributed to Novartis.
Novartis succeeded in getting paid as an absolute priority by insurance organizations ahead of their competitors, while its medicines were supplied at inflated prices and were focused mainly on the areas of Oncology and Ophthalmology.
According to information so far about the unfair practices of Novartis, approximately twenty witnesses have made depositions speaking about preferential pricing and approval processes and even the delay of the approval of drugs from other companies.
In its communiqué on this issue, Novartis states: "We have taken note of the publications concerning our business practices in Greece. We continue to work with the authorities in Greece and abroad. Novartis is committed to the highest standards of ethical business conduct and regulatory compliance in all aspects of our work. We take every allegation about possible misconduct extremely seriously and are considering thoroughly all reports."
A "put-up scandal" and "false witnesses"
With lawsuits, threats, and attacking the credibility of witnesses, those implicated in the Novartis scandal are responding on the TV, talking about political prosecution and conspiracy by Prime Minister Alexis Tsipras and Government Ministers.
The former Prime Minister, Panagiotos Pikramenos and former Health Ministers, Marios Salmas, George Koutroumanos, Adonis Georgiadis all appeared on Ant1 and SKAI.
The former Deputy Health Minister, Marios Salmas spoke about a “put-up scandal” and labelled witnesses as "false witnesses" and defended himself by saying that during his period of office Novartis’ turnover decreased by 30%. He maintained that the case is "political".
On ANT1, 'A Nightmare ' is how former Prime Minister Pikrammenos described what is happening while he attempted to give a political dimension to his own "involvement" as a friend of the family of Mr. Mitsotakis. "Over 5 years nothing had been heard from anyone, and now all of a sudden?" "I'll talk to my lawyer, I don't know if I'll file lawsuits, or not." "I will not sit with folded hands".
"There will be legal moves" George Koutroumanos revealed, denouncing as "machination" and dishonest the Government’s political method.
He in turn attacked the witnesses claiming that "it is being accused by a witness who does not appear". He wondered why they consider that "the witnesses are at risk from politicians or from officers of the administration." However, according to the report of Prosecutor Papadatos who spoke to ERT "one witness has already been threatened" while on camera Mr Salmas publicly threatened the witnesses.
Mr. Mantas stressed that "it is not expected by the Parliamentary Rules of Procedure nor by the constitutional processes for the case file to be given publicity. That could make it invalid."
Antonis Lykourentzos on ERT stated that he would appeal directly to the courts, to pursue as he said every legal means in the prosecution of those involved in tarnishing his name. "I will appeal directly to the Courts and I want them to access my phones to prove that I had no contact with Mr. Frouzi."
"If I don’t put them in prison, I will not rest," said former Health Minister Adonis Georgiades while he talked about "false witnesses" and " hooded witnesses" whose names should be published. "Mr. Tsipras has organized everything," he said making threats against the Prime Minister.
Dimitris Avramopoulos, named by prosecutors among the 10 Greek politicians, denounced the corruption investigation as an "unprecedented plot". The allegations relate to a period between 2006 and 2015 - including when Mr Avramopoulos was Greece's Health Minister. In a statement on Wednesday, he condemned what he called an "unsubstantiated and flawed case file".
"It is now clear that it is an unprecedented plot which cannot stand in any member state of the European Union. Only sick minds could have invented and attempted it."
Mr Avramopoulos said the investigation was a bid to "exterminate political opponents".
All former Health Ministers declare that when they were in office, Novartis suffered losses.
“I pledge that in the coming period
I will, with patriotic responsibility, seek a mutually acceptable solution”
3.2.2018
“I pledge that in the coming period I will, with patriotic responsibility, seek a mutually acceptable solution” stated Prime Minister Alexis Tsipras after his meetings last Saturday with the political leaders in order to brief them on the developments on the FYROM name issue.
On the extremely crucial and difficult issue of our differences with FYROM, the PM said that he had briefed the political leaders in detail and explained to them that “an opportunity window has opened as FYROM’s new political leadership is showing a willingness to negotiate for a mutually acceptable solution to a problem that has undermined our relations for the last 25 years”.
He said that “FYROM’s political leadership has to some extent withdrawn from the irredentist rhetoric of the previous years” and he gave as an example FYROM Prime Minister Zoran Zaev’s move to rename Skopje’s international airport and the Thessaloniki-Skopje motorway from “Alexander the Great” to the “Highway of Friendship”.
He, however, clarified that “the symbolic gestures do not mean that the irredentist problem has been resolved as our neighbours’ political will must take the form of clear and specific engagements in the context of the deliberations conducted at a bilateral level as well as in the framework of UN mediation”.
“We have made progress in the last period but a long way remains to be covered to reach a mutually acceptable solution of a compound name for universal use [erga omnes].”
“Everybody must understand that a non solution will be against Greece’s interest and against stability in the wider region”.
He also recommended “realism, prudence, modesty and spirit of understanding if we want to serve the national interest”.
“It is, to say the least, hypocritical, for some political forces but also for certain individuals to exploit the susceptibilities and the agony of the Greek people to serve a completely ineffective and hopeless objective, which ultimately goes against our national interests.”
He said that with most of the political leaders he had had a sincere and responsible discussion that could lead to political convergence and consensus. “Unfortunately I cannot say the same for the leader of the opposition. The attitude of Mr. Mitsotakis shows unreliability and a failure to state his political position clearly. He constantly wavers, changing positions and opinions depending on internal political developments, but also with the pressure put on him by an extreme section of his party."
Concluding, he underlined: “On my part I pledge that in the coming future I will seek with patriotic responsibility a mutually acceptable solution.”
Athens and Skopje have agreed to step up negotiations to reach an accord in a dispute which has blocked the ex-Yugoslav republic from joining NATO and the European Union. As a member of both, Greece’s assent is needed for its neighbour to join NATO and the EU, but Greece objects to the former Yugoslav republic’s use of the name Macedonia, arguing that it, along with contentious articles in Skopje’s constitution, could imply territorial claims over its own northern region of the same name.
Greeks are proud of their links to Macedonian empire-builder Alexander the Great, who spread Hellenistic culture across the ancient world.
“In life, Alexander the Great ... proved we should cut Gordian Knots. At some point we must finish with such issues,” Foreign Minister Nikos Kotzias told Reuters in an interview.
Mr. Kotzias said there was a new momentum to settle the dispute since a more moderate government was elected in Macedonia last year and following three years of trust-building efforts.
“We want to solve it. It’s in our national interest and in the interests of the region, for stability, security and economic growth,” He said Greece was working on a draft that would be ready in February which could form the basis of discussion.
“It won’t be a Greek text containing only our views, nor a done deal-compromise. It will be a text which we consider could be the basis upon which we could start to cooperate,” he said.
Other Views
“We will not divide Greeks to unite Skopje,” Conservative New Democracy party leader Kyriakos Mitsotakis said in a televised address following his meeting with PM Tsipras. He said resolving the name dispute was not just a foreign policy matter but a serious issue relating to Greece’s history and “the very identity of Greeks”.
PM Tsipras accused New Democracy of a “hypocritical” stance on the issue in taking advantage of the sensitivities of Greeks. He said now was not the time for nationalist fervour or cries of fanaticism.
On Friday, Greece’s influential Orthodox Church entered the fray, saying it was against any accord with the neighbouring country which included the name “Macedonia”.
In response to the suggestion that disagreement over the name issue between SYRIZA and ANEL might jeopardise the Government Coalition, Independent Greeks (ANEL) President, Panos Kammenos, made a statement on Monday saying his party had made an “honest agreement with SYRIZA and Prime Minister Alexis Tsipras and this honest agreement will be honoured to the end, to the end of four years [of this Parliament Ed]”.
Mr. Kammenos, Greece’s Defence Minister, also said he “trusted” Foreign Minister Nikos Kotzias to lead Greek negotiators and confirmed that his family would attend Sunday’s planned rally in Athens against the use of ‘Macedonia’ in any future name for Greece’s northern neighbour.
“The rallies are organized by the citizens. We [ANEL] are involved. The participants are Greek citizens expressing a national position and helping the national negotiation,” he said.
FYROM PM Zoran Zaev insisted that his plans to hold a national referendum over the name dispute with Greece would not be an obstacle to a solution but rather will serve as a guarantee of its permanence.
“The referendum will be an added guarantee to Greece that the solution will be permanent and will remain forever,” PM Zaev said in remarks that were seen as part of the effort by Skopje to expedite negotiations for a settlement.
According to sources, the names proposed as a solution are namely Republika Nova Makedonija (Republic of New Macedonia), Republika Gorna Makedonija (Republic of Upper Macedonia), Republika Severna Makedonija (Republic of Northern Macedonia), Republika Vardarska Makedonija (Republic of Vardarska Macedonia) and Republika Makedonija (Skopje).
Talks between the two states have been inconclusive since 1991, when Macedonia withdrew from former Yugoslavia. It was admitted into the United Nations in 1993 under the name Former Yugoslav Republic of Macedonia (FYROM). More than 140 countries worldwide refer to the republic as Macedonia.
"Linguistic Acrobatics"
“Let me tell you a paradox. Let’s say we don’t reach agreement today, what name is left?” said Foreign Minister Kotzias. “Internationally, we will be left with plain ‘Macedonia’, therefore we will have no gain, and in our bilateral relations we will be left with ‘Former Yugoslav Republic of Macedonia’. “Grammatically, it’s a name which still includes the name Macedonia, which is compound and with chronological definition. So we are just fooling ourselves with linguistic acrobatics.”
“The demonstrations [in Thessaloniki two weeks ago and this Sunday in Athens Ed] are signs of democracy. In both countries, people who do not agree to a good compromise ... do not have bad intent,” he said. “They are simply people who see the problem from a different angle, without taking into account the historical background or future prospects for cooperation.”
“We have to respect this history and learn from it, but not be trapped in it.”
On the extremely crucial and difficult issue of our differences with FYROM, the PM said that he had briefed the political leaders in detail and explained to them that “an opportunity window has opened as FYROM’s new political leadership is showing a willingness to negotiate for a mutually acceptable solution to a problem that has undermined our relations for the last 25 years”.
He said that “FYROM’s political leadership has to some extent withdrawn from the irredentist rhetoric of the previous years” and he gave as an example FYROM Prime Minister Zoran Zaev’s move to rename Skopje’s international airport and the Thessaloniki-Skopje motorway from “Alexander the Great” to the “Highway of Friendship”.
He, however, clarified that “the symbolic gestures do not mean that the irredentist problem has been resolved as our neighbours’ political will must take the form of clear and specific engagements in the context of the deliberations conducted at a bilateral level as well as in the framework of UN mediation”.
“We have made progress in the last period but a long way remains to be covered to reach a mutually acceptable solution of a compound name for universal use [erga omnes].”
“Everybody must understand that a non solution will be against Greece’s interest and against stability in the wider region”.
He also recommended “realism, prudence, modesty and spirit of understanding if we want to serve the national interest”.
“It is, to say the least, hypocritical, for some political forces but also for certain individuals to exploit the susceptibilities and the agony of the Greek people to serve a completely ineffective and hopeless objective, which ultimately goes against our national interests.”
He said that with most of the political leaders he had had a sincere and responsible discussion that could lead to political convergence and consensus. “Unfortunately I cannot say the same for the leader of the opposition. The attitude of Mr. Mitsotakis shows unreliability and a failure to state his political position clearly. He constantly wavers, changing positions and opinions depending on internal political developments, but also with the pressure put on him by an extreme section of his party."
Concluding, he underlined: “On my part I pledge that in the coming future I will seek with patriotic responsibility a mutually acceptable solution.”
Athens and Skopje have agreed to step up negotiations to reach an accord in a dispute which has blocked the ex-Yugoslav republic from joining NATO and the European Union. As a member of both, Greece’s assent is needed for its neighbour to join NATO and the EU, but Greece objects to the former Yugoslav republic’s use of the name Macedonia, arguing that it, along with contentious articles in Skopje’s constitution, could imply territorial claims over its own northern region of the same name.
Greeks are proud of their links to Macedonian empire-builder Alexander the Great, who spread Hellenistic culture across the ancient world.
“In life, Alexander the Great ... proved we should cut Gordian Knots. At some point we must finish with such issues,” Foreign Minister Nikos Kotzias told Reuters in an interview.
Mr. Kotzias said there was a new momentum to settle the dispute since a more moderate government was elected in Macedonia last year and following three years of trust-building efforts.
“We want to solve it. It’s in our national interest and in the interests of the region, for stability, security and economic growth,” He said Greece was working on a draft that would be ready in February which could form the basis of discussion.
“It won’t be a Greek text containing only our views, nor a done deal-compromise. It will be a text which we consider could be the basis upon which we could start to cooperate,” he said.
Other Views
“We will not divide Greeks to unite Skopje,” Conservative New Democracy party leader Kyriakos Mitsotakis said in a televised address following his meeting with PM Tsipras. He said resolving the name dispute was not just a foreign policy matter but a serious issue relating to Greece’s history and “the very identity of Greeks”.
PM Tsipras accused New Democracy of a “hypocritical” stance on the issue in taking advantage of the sensitivities of Greeks. He said now was not the time for nationalist fervour or cries of fanaticism.
On Friday, Greece’s influential Orthodox Church entered the fray, saying it was against any accord with the neighbouring country which included the name “Macedonia”.
In response to the suggestion that disagreement over the name issue between SYRIZA and ANEL might jeopardise the Government Coalition, Independent Greeks (ANEL) President, Panos Kammenos, made a statement on Monday saying his party had made an “honest agreement with SYRIZA and Prime Minister Alexis Tsipras and this honest agreement will be honoured to the end, to the end of four years [of this Parliament Ed]”.
Mr. Kammenos, Greece’s Defence Minister, also said he “trusted” Foreign Minister Nikos Kotzias to lead Greek negotiators and confirmed that his family would attend Sunday’s planned rally in Athens against the use of ‘Macedonia’ in any future name for Greece’s northern neighbour.
“The rallies are organized by the citizens. We [ANEL] are involved. The participants are Greek citizens expressing a national position and helping the national negotiation,” he said.
FYROM PM Zoran Zaev insisted that his plans to hold a national referendum over the name dispute with Greece would not be an obstacle to a solution but rather will serve as a guarantee of its permanence.
“The referendum will be an added guarantee to Greece that the solution will be permanent and will remain forever,” PM Zaev said in remarks that were seen as part of the effort by Skopje to expedite negotiations for a settlement.
According to sources, the names proposed as a solution are namely Republika Nova Makedonija (Republic of New Macedonia), Republika Gorna Makedonija (Republic of Upper Macedonia), Republika Severna Makedonija (Republic of Northern Macedonia), Republika Vardarska Makedonija (Republic of Vardarska Macedonia) and Republika Makedonija (Skopje).
Talks between the two states have been inconclusive since 1991, when Macedonia withdrew from former Yugoslavia. It was admitted into the United Nations in 1993 under the name Former Yugoslav Republic of Macedonia (FYROM). More than 140 countries worldwide refer to the republic as Macedonia.
"Linguistic Acrobatics"
“Let me tell you a paradox. Let’s say we don’t reach agreement today, what name is left?” said Foreign Minister Kotzias. “Internationally, we will be left with plain ‘Macedonia’, therefore we will have no gain, and in our bilateral relations we will be left with ‘Former Yugoslav Republic of Macedonia’. “Grammatically, it’s a name which still includes the name Macedonia, which is compound and with chronological definition. So we are just fooling ourselves with linguistic acrobatics.”
“The demonstrations [in Thessaloniki two weeks ago and this Sunday in Athens Ed] are signs of democracy. In both countries, people who do not agree to a good compromise ... do not have bad intent,” he said. “They are simply people who see the problem from a different angle, without taking into account the historical background or future prospects for cooperation.”
“We have to respect this history and learn from it, but not be trapped in it.”
Finance Minister Tsakalotos
prepares Post-Bailout Plan
Greece expects to make a clean break with official lenders when its international bailout expires in August and has no reason to seek a precautionary credit line, Finance Minister Euclid Tsakalotos told Reuters.
In a press interview, he said the country is building up its own protective buffer that, along with unused European bailout funds, will cover Greece “for well over a year”, if needed.
In coming months, he said, the country would be preparing its own post-bailout plan with an emphasis on reforms, social policies and growth.
He also said discussions would soon commence with Eurozone lenders on debt relief along the lines of a French proposal to link the level of debt restructuring to economic performance.
“We feel we have built credibility over the last three years,” Finance Minister Tsakalotos said.
The Government has vowed to end the austerity imposed by its international lenders, but Greece still has a debt burden of 178% of GDP and some European policymakers believe the country cannot go it alone without debt relief and a standby line of credit. A precautionary credit line, though, would come with yet more “measures” attached, so the Greek Government is proposing its own plan. It is also creating a safety net of up to 19€ billion drawn from unused bailout funds and from bond issues.
The Minister continued: “Post-programme surveillance schemes after the exit from the Memoranda are common practice for other countries that have received assistance. Greece, however, is preparing its own programme that will include more initiatives. We think, by Easter, we will have prepared our own plan, including social and development policies, to show both the Institutions and the markets that this is our own programme, that we have ownership of it. It hasn’t been imposed; it’s not a matter of compromise. It will show lenders and the markets that Greece has ownership over its own programme of future reforms and growth strategies, rather than Brussels.”
He said that the economy was turning a corner and the country would soon be ready to stand on its own feet. “We’ve been outperforming our fiscal targets, the economy is returning,” he said. “To those people who think we need something more, like a precautionary credit line or whatever, they are just pushing the key question back and I don’t see any reason for that.
The IMF has not yet decided if it will participate in Greece’s latest bailout programme, having repeatedly voiced concern at the sustainability of the country’s debt.
“I think their inclination and their strategy is to get a deal that makes the Greek debt sustainable so they can come on board,” Minister Tsakalotos.
Greece and its lenders are expected to flesh out a French proposed mechanism which was presented in June and will link debt relief to Greece’s growth rates. The economy is expected to grow by up to 2.5% this year and in 2019.
“What we will be going over the next month or so is working out the nitty-gritty of it, the mechanism, how it will kick in, when it will kick in.”
Details on the cash buffer, the growth mechanism along with the implementation of the measures agreed in June would give investors clarity over Greece’s trajectory, he said.
Greece returned to bond markets in July after three years of market isolation. Another issue would follow “soon”, he said.
“The only outstanding issue is the composition of that buffer, how much will come from Greece’s own funds, and how much will come from the ESM and I‘m looking forward to that debate.”
Greek banks are saddled with about €100 billion in non- Performing Loans (NPLs), after a seven-year depression that cut economic output by a quarter and pushed more than a fifth of the population into unemployment.
The results of stress tests on the banks by euro zone supervisors are expected in May.
“We shall see what the results of the stress tests are,” said the Minister. “I think that a lot of people would want to give banks a chance to see all these bits of the puzzle that we put in to work through, and to address the NPL problem.”
“The good thing is that it’s going to have the same criteria across the European banking system, it’s not treating Greece as an exceptional case.”
He pondered at a question on the Government’s achievements. It was, he said, a mixed picture but the foundations for a sustainable economic recovery had been laid.
“There are the pillars there, and it will be up to our government and if we are elected again, to see whether we can build on that,” he said, referring to elections in 2019.
“… The difference between a happy ending and a sad ending is where you cut the film, yes? The movie is still in development.”
Eurostat: Latest Unemployment Figures
The unemployment rate in Greece is steadily decreasing. Eurostat announced that Greece recorded the largest decline in the level of unemployment in the EU between October 2016 and October 2017, from 23.3% to 20.7%.
Altogether in December, there were 17,961 million unemployed in the EU and 14,137 million unemployed in the euro area.
The highest unemployment rates in the EU are recorded in Greece (20.7% in October) and in Spain (16.4%). The lowest unemployment rates were in the Czech Republic (2.3%), Malta and Germany (3.6%).
In Greece, the number of unemployed in October 2017 stood at 990,000. The unemployment rate for men was 17% and for women 25.4%.
The unemployment rate for young people (under 25) in Greece dropped to 40.8% in October, compared with 40.3% in September. The highest unemployment rates among young people in the EU are recorded in Greece (40.8%), Spain (36.8%) and Italy (32.2%). The lowest rates are recorded in the Czech Republic (4.9%) and Germany (6.6%).
In December youth unemployment in the euro area stood at 17.9% and in the EU at 16.1%.
“The public’s shift toward reusable bags has been significant”
Just a month in, a Government initiative aimed at reducing consumers’ dependence on plastic carrier bags by charging for them appears to be bearing fruit, as some supermarkets have recorded a drop of as much as 50%.
“The application of the measure at supermarkets is very widespread, though there are still some problems at small retail outlets in the countryside,” the managing director of the Research Institute of Retail Consumer Goods (IELKA), Lefteris Kioses, told a forum held as part of the EU’s Life Debag initiative on Thursday.
Since the 4 cent charge for regular plastic bags was introduced on January 1st , an increasing number of retailers now offer reusable shopping bags. Stores that are not implementing the measure include those that sell clothing and footwear, as well as fast-food restaurants. “They appear worried that charging for the bag will displease their customers,” said Mr.Kioses.
He said the public response has been mostly positive, with “some reaction from those who think it is just a revenue-raising measure.”
“The public’s shift toward reusable bags has been significant. Many businesses had underestimated demand and ran out,” he added.
The news is also good from Syros, the Cycladic island that has been campaigning against the use of plastic bags for the past two years.
“We are seeing the effect of our efforts in the sea and on our beaches,” says Patras University Professor and Life Debag’s coordinator in Greece Giorgos Papatheodorou.
More Local Health Units
A Ministry of Heath statement announced that on Friday February 2nd the inauguration of the 1st and 2nd TOMY in Chania would take place, while on the same day at 5pm the opening of the 1st TOMY in Rethymnon would be held.
“The establishment and operation of Local Health Units [TOMY] comes to cover one of the most critical deficiencies in the National Health Service, - the need for an organized system of Primary Health Care” especially in urban centres. Filling this gap is one of the main priorities of the political leadership of the Ministry of Health. The operation of the TOMY means the provision of free, universal, suitable, effective, efficient, high quality and people-centred primary health care to the population.
“Dynamically and steadily, we are continuing to implement our vision for Primary Health Care by the establishment of Local Health Units, staffed by medical and other health personnel and fully equipped.”
Anti-smoking law to be enforced
Greece’s Health Minister Andreas Xanthos on Wednesday called on the authorities responsible to enforce the country’s anti-smoking law, and to start strict checks on public places where smoking is continuing.
The 2010 anti-smoking law that bans smoking in enclosed spaces such as public buildings, restaurants, coffee shops and theatres, has never been properly enforced. Apart from some random checks and fines in the first few months, smoking in public places continues to be commonplace.
The Ministry issued a new memorandum as part of an effort to combat smoking and its negative effects on the population as a whole.
The Memorandum calls on all responsible authorities to enforce the law by doing checks on establishments that allow smoking, and impose harsh fines on offenders.
Civil servants and public sector employees are not allowed to smoke at work, and if they do, disciplinary action against them will be taken.
Smokers in public places will be fined 50€ to 500€, according to the circumstances.
Owners of businesses such as bars, restaurants and coffee shops will be fined between 500€ to 10,000€ if they allow customers to smoke. Repeat offenders will be fined and their licence will be revoked after five offences.
A fine of between 500€ and 10,000€ will be imposed to those who sell tobacco products to minors. The same fines will apply to those who advertise tobacco products.
To protect minors from second hand smoking, a fine of 1,500€ will be imposed on drivers who smoke with a child under 12 in the car.
In a press interview, he said the country is building up its own protective buffer that, along with unused European bailout funds, will cover Greece “for well over a year”, if needed.
In coming months, he said, the country would be preparing its own post-bailout plan with an emphasis on reforms, social policies and growth.
He also said discussions would soon commence with Eurozone lenders on debt relief along the lines of a French proposal to link the level of debt restructuring to economic performance.
“We feel we have built credibility over the last three years,” Finance Minister Tsakalotos said.
The Government has vowed to end the austerity imposed by its international lenders, but Greece still has a debt burden of 178% of GDP and some European policymakers believe the country cannot go it alone without debt relief and a standby line of credit. A precautionary credit line, though, would come with yet more “measures” attached, so the Greek Government is proposing its own plan. It is also creating a safety net of up to 19€ billion drawn from unused bailout funds and from bond issues.
The Minister continued: “Post-programme surveillance schemes after the exit from the Memoranda are common practice for other countries that have received assistance. Greece, however, is preparing its own programme that will include more initiatives. We think, by Easter, we will have prepared our own plan, including social and development policies, to show both the Institutions and the markets that this is our own programme, that we have ownership of it. It hasn’t been imposed; it’s not a matter of compromise. It will show lenders and the markets that Greece has ownership over its own programme of future reforms and growth strategies, rather than Brussels.”
He said that the economy was turning a corner and the country would soon be ready to stand on its own feet. “We’ve been outperforming our fiscal targets, the economy is returning,” he said. “To those people who think we need something more, like a precautionary credit line or whatever, they are just pushing the key question back and I don’t see any reason for that.
The IMF has not yet decided if it will participate in Greece’s latest bailout programme, having repeatedly voiced concern at the sustainability of the country’s debt.
“I think their inclination and their strategy is to get a deal that makes the Greek debt sustainable so they can come on board,” Minister Tsakalotos.
Greece and its lenders are expected to flesh out a French proposed mechanism which was presented in June and will link debt relief to Greece’s growth rates. The economy is expected to grow by up to 2.5% this year and in 2019.
“What we will be going over the next month or so is working out the nitty-gritty of it, the mechanism, how it will kick in, when it will kick in.”
Details on the cash buffer, the growth mechanism along with the implementation of the measures agreed in June would give investors clarity over Greece’s trajectory, he said.
Greece returned to bond markets in July after three years of market isolation. Another issue would follow “soon”, he said.
“The only outstanding issue is the composition of that buffer, how much will come from Greece’s own funds, and how much will come from the ESM and I‘m looking forward to that debate.”
Greek banks are saddled with about €100 billion in non- Performing Loans (NPLs), after a seven-year depression that cut economic output by a quarter and pushed more than a fifth of the population into unemployment.
The results of stress tests on the banks by euro zone supervisors are expected in May.
“We shall see what the results of the stress tests are,” said the Minister. “I think that a lot of people would want to give banks a chance to see all these bits of the puzzle that we put in to work through, and to address the NPL problem.”
“The good thing is that it’s going to have the same criteria across the European banking system, it’s not treating Greece as an exceptional case.”
He pondered at a question on the Government’s achievements. It was, he said, a mixed picture but the foundations for a sustainable economic recovery had been laid.
“There are the pillars there, and it will be up to our government and if we are elected again, to see whether we can build on that,” he said, referring to elections in 2019.
“… The difference between a happy ending and a sad ending is where you cut the film, yes? The movie is still in development.”
Eurostat: Latest Unemployment Figures
The unemployment rate in Greece is steadily decreasing. Eurostat announced that Greece recorded the largest decline in the level of unemployment in the EU between October 2016 and October 2017, from 23.3% to 20.7%.
Altogether in December, there were 17,961 million unemployed in the EU and 14,137 million unemployed in the euro area.
The highest unemployment rates in the EU are recorded in Greece (20.7% in October) and in Spain (16.4%). The lowest unemployment rates were in the Czech Republic (2.3%), Malta and Germany (3.6%).
In Greece, the number of unemployed in October 2017 stood at 990,000. The unemployment rate for men was 17% and for women 25.4%.
The unemployment rate for young people (under 25) in Greece dropped to 40.8% in October, compared with 40.3% in September. The highest unemployment rates among young people in the EU are recorded in Greece (40.8%), Spain (36.8%) and Italy (32.2%). The lowest rates are recorded in the Czech Republic (4.9%) and Germany (6.6%).
In December youth unemployment in the euro area stood at 17.9% and in the EU at 16.1%.
“The public’s shift toward reusable bags has been significant”
Just a month in, a Government initiative aimed at reducing consumers’ dependence on plastic carrier bags by charging for them appears to be bearing fruit, as some supermarkets have recorded a drop of as much as 50%.
“The application of the measure at supermarkets is very widespread, though there are still some problems at small retail outlets in the countryside,” the managing director of the Research Institute of Retail Consumer Goods (IELKA), Lefteris Kioses, told a forum held as part of the EU’s Life Debag initiative on Thursday.
Since the 4 cent charge for regular plastic bags was introduced on January 1st , an increasing number of retailers now offer reusable shopping bags. Stores that are not implementing the measure include those that sell clothing and footwear, as well as fast-food restaurants. “They appear worried that charging for the bag will displease their customers,” said Mr.Kioses.
He said the public response has been mostly positive, with “some reaction from those who think it is just a revenue-raising measure.”
“The public’s shift toward reusable bags has been significant. Many businesses had underestimated demand and ran out,” he added.
The news is also good from Syros, the Cycladic island that has been campaigning against the use of plastic bags for the past two years.
“We are seeing the effect of our efforts in the sea and on our beaches,” says Patras University Professor and Life Debag’s coordinator in Greece Giorgos Papatheodorou.
More Local Health Units
A Ministry of Heath statement announced that on Friday February 2nd the inauguration of the 1st and 2nd TOMY in Chania would take place, while on the same day at 5pm the opening of the 1st TOMY in Rethymnon would be held.
“The establishment and operation of Local Health Units [TOMY] comes to cover one of the most critical deficiencies in the National Health Service, - the need for an organized system of Primary Health Care” especially in urban centres. Filling this gap is one of the main priorities of the political leadership of the Ministry of Health. The operation of the TOMY means the provision of free, universal, suitable, effective, efficient, high quality and people-centred primary health care to the population.
“Dynamically and steadily, we are continuing to implement our vision for Primary Health Care by the establishment of Local Health Units, staffed by medical and other health personnel and fully equipped.”
Anti-smoking law to be enforced
Greece’s Health Minister Andreas Xanthos on Wednesday called on the authorities responsible to enforce the country’s anti-smoking law, and to start strict checks on public places where smoking is continuing.
The 2010 anti-smoking law that bans smoking in enclosed spaces such as public buildings, restaurants, coffee shops and theatres, has never been properly enforced. Apart from some random checks and fines in the first few months, smoking in public places continues to be commonplace.
The Ministry issued a new memorandum as part of an effort to combat smoking and its negative effects on the population as a whole.
The Memorandum calls on all responsible authorities to enforce the law by doing checks on establishments that allow smoking, and impose harsh fines on offenders.
Civil servants and public sector employees are not allowed to smoke at work, and if they do, disciplinary action against them will be taken.
Smokers in public places will be fined 50€ to 500€, according to the circumstances.
Owners of businesses such as bars, restaurants and coffee shops will be fined between 500€ to 10,000€ if they allow customers to smoke. Repeat offenders will be fined and their licence will be revoked after five offences.
A fine of between 500€ and 10,000€ will be imposed to those who sell tobacco products to minors. The same fines will apply to those who advertise tobacco products.
To protect minors from second hand smoking, a fine of 1,500€ will be imposed on drivers who smoke with a child under 12 in the car.
Eurogroup releases funding; "technical work on debt relief measures to start soon"
27.1.2018
Eurozone Finance Ministers reached a "political agreement" to grant Greece 6.7€ billion in bailout money. The Ministers praised Greece's progress, putting it on track to leave its bailout programme in August 2018. Afterwards, the country is expected to finance itself by directly borrowing from investors.
Announcing the agreement in Brussels, Portuguese Finance Minister Mario Centeno, the new President of the Eurogroup said "We have some good news." He added that the agreement "reflects the huge effort and excellent cooperation between the Greek Government and the Institutions."
"The Greek authorities have over-achieved the fiscal targets set over the last three years," the Eurogroup said in a statement, adding that "Greek authorities have also continued to strengthen tax collection."
Eurogroup President Centeno also said "technical work on debt relief measures" for after the end of the bailout programme in August 2018 would start soon.
Greek finance minister Euclid Tsakalotos said it was a "very good meeting" and that the Eurogroup's mentions of debt relief were "particularly significant."
"People are now convinced that things have turned around, and people are beginning to talk about the future and Greece's exit from the programme," he told reporters.
the Ministers said they would start technical work on debt relief measures
92 of the agreed 110 “prior actions” have been implemented.
“The Eurogroup welcomes the implementation of almost all of the agreed prior actions,” the statement said. “The Eurogroup calls on the Greek authorities to complete the outstanding prior actions as a matter of urgency,” it said.
“Following the full implementation of the prior actions and subject to the completion of national procedures, the ESM governing bodies are expected to ... approve the disbursement of the fourth tranche,” the Ministers’ statement said.
The new loans worth 6.7€ billion will be disbursed in two tranches, starting in February with 5.7€ billion for debt servicing needs. A further 1€ billion is to be paid out in April, ESM head Klaus Regling told a news conference.
Greek Finance Minister Euclid Tsakalotos told reporters it was a "very good meeting" and that the Eurogroup's mentions of debt relief were "particularly significant."
"People are now convinced that things have turned around, and people are beginning to talk about the future and Greece's exit from the programme," he told reporters. He said Greece was pleased with the result because the last stage of the bailout did not foresee as many prior actions as the one just completed and talks could start on debt relief. He said that "there is now going to be a working group to do more work on specifying what has come to be known as the 'French mechanism' that ties further debt to relief to growth as was agreed in the June Eurogroup meeting."
The technical work will be done by junior finance ministers and treasury officials from Eurozone countries - the Eurogroup Working Group (EWG) – designed to link the size of potential debt relief to Greece’s economic performance over time.
“The Eurogroup confirms the start of the technical work by the EWG on the growth-adjustment mechanism, as part of the medium-term debt relief measures to be implemented, if needed, following the successful conclusion of the programme,” the statement said.
Such a growth-linked mechanism could help bridge the gap between some Eurozone countries like Germany, which believe Greece may not need any further debt relief, and the International Monetary Fund, which insists on substantial debt relief for Greece now, as a condition of its taking part in the bailout.
One of the main reasons why the IMF and Germany are at odds over the need for debt relief is different growth forecasts for Greece over the next 40 years.
The Eurozone is more optimistic about growth in Greece than the IMF and even small differences in forecasts, accrued over such a long period, produce starkly different effects on debt projections.
Eurozone Ministers called on the various Institutions involved to converge in their views in order to produce a reliable debt sustainability analysis (DSA).
“The Eurogroup invites the European Institutions and the IMF to take into account the holistic Greek growth strategy when updating the DSA,” the statement said.
Prime Minister Alexis Tsipras held a series of important meetings on the sidelines of the World Economic Forum in Davos this week that could prove highly significant in the course towards sustained economic recovery and political stability in the country.
The complete official Eurogroup statement
“The Eurogroup welcomes the implementation of almost all of the agreed prior actions for the Third Assessment, following the staff level agreement on the policy package that was presented to the 4 December Eurogroup. Notably, the Greek authorities have adopted the 2018 State Budget which is compliant with the agreed primary surplus target of 3.5% of GDP.
Moreover, the European institutions’ compliance report shows that the Greek authorities have over-achieved the fiscal targets set over the last three years (2015-2017).
The Greek authorities have also continued to strengthen tax collection through the Independent Authority of Public Revenue and enhanced the fairness and effectiveness of the social welfare system.
The business environment has been improved by further actions aimed at opening up regulated professions, improving the investment licensing system, lifting regulations that unnecessarily restrict competition in product markets as well as the opening-up of energy markets.
Progress in the framework supporting Non Performing Loans resolution was achieved through further actions related to the effective operationalization of the out-of-court workout scheme and the start-up of electronic auctions.
The Eurogroup reconfirms the importance of an ambitious comprehensive growth strategy with strong ownership from the Greek authorities. The authorities are invited to finalize it in cooperation with the institutions well before the end of the programme.
The Eurogroup calls on the Greek authorities to complete the outstanding prior actions as a matter of urgency.
The Eurogroup mandates the EWG to verify the full implementation of the outstanding prior actions on the basis of an assessment by the European institutions.
This will include an assessment to confirm that a continuous and unimpeded flow of electronic auctions is ensured as well as the completion of government pending actions in the field of privatization.
Following the full implementation of the prior actions and subject to the completion of national procedures, the ESM governing bodies are expected to endorse the supplemental MoU and approve the disbursement of the fourth tranche of the ESM programme.
The fourth tranche under the ESM programme amounting to 6.7€ bn will be disbursed to Greece in two disbursements, starting with a first disbursement in February of 5.7€ bn to cover debt servicing needs, to allow the further clearance of arrears and to support the build-up of the cash buffer of the Greek State, in order to support Greece’s return to the market.
The subsequent disbursement for arrears clearance may be approved by the EWG in Spring, subject to a positive reporting by the European Institutions on the clearance of net arrears using also own resources and a confirmation from the European institutions that the unimpeded flow of e-auctions has continued.
The Eurogroup will now turn its attention to the final stages of the ESM programme, which is expected to end in August 2018.
The Eurogroup confirms the start of the technical work by the EWG on the growth-adjustment mechanism, as part of the medium-term debt relief measures to be implemented, if needed, following the successful conclusion of the programme, in line with the agreement in the Eurogroup of 15 June 2017.
The Eurogroup invites the European institutions and the IMF to take into account the holistic Greek growth strategy when updating the DSA.”
2018 - The Year of the Child
Referring to the kindergartens, Mrs Fotiou said that currently 110,000 children enter kindergarten at no cost, next year this will increase to 120,000 and in 2020, 165,000 children will be enrolled, with the creation of an additional 2,200 kindergartens in addition to the current 1,800.
2018 will be the year of the child, said the Deputy Minister for Social Solidarity Theano Fotiou. She said the objective is the design of a network of children’s benefits and services. As she said, the results of the Third Assessment are particularly important in this regard: “In this Assessment, the Government managed to achieve a situation in which all the money from the savings made from each Ministry, which was 315€ million, should be used to provide exclusively for children. Specifically, 260€ million are earmarked for Family Allowances, 40€ million for school meals -130,000 school meals are currently provided throughout Greece - and 15€ million will be given for new kindergartens.”
Speaking on television, in response to the criticism received about school meals, the Deputy Minister for Social Solidarity said that school lunches are normal in all countries.
Regarding Family Allowances, she noted that there is a gross iequality in the system. She reported that 800,000 families are receiving Family Allowances and 92% of these, i.e. 738,000 families, will see increases. "In less than 50% of families with three or more children, who belong to the two upper income echelons, there will be some reductions, which will be addressed in the course of 2018."
"State Provision concerns everyone, not just the homeless. A system with 240community centres, with 13 regional offices and with a direct line to the Ministry is being created." "There is a single information system, an electronic platform, where the citizen, using the ΑΦΜ, can get information about what allowances and what benefits they are entitled to. The second registry provides information on services and the third provides information on programmes that "are running". In this way, the clientelist state is being ended. This signifies assistance and social solidarity."
Announcing the agreement in Brussels, Portuguese Finance Minister Mario Centeno, the new President of the Eurogroup said "We have some good news." He added that the agreement "reflects the huge effort and excellent cooperation between the Greek Government and the Institutions."
"The Greek authorities have over-achieved the fiscal targets set over the last three years," the Eurogroup said in a statement, adding that "Greek authorities have also continued to strengthen tax collection."
Eurogroup President Centeno also said "technical work on debt relief measures" for after the end of the bailout programme in August 2018 would start soon.
Greek finance minister Euclid Tsakalotos said it was a "very good meeting" and that the Eurogroup's mentions of debt relief were "particularly significant."
"People are now convinced that things have turned around, and people are beginning to talk about the future and Greece's exit from the programme," he told reporters.
the Ministers said they would start technical work on debt relief measures
92 of the agreed 110 “prior actions” have been implemented.
“The Eurogroup welcomes the implementation of almost all of the agreed prior actions,” the statement said. “The Eurogroup calls on the Greek authorities to complete the outstanding prior actions as a matter of urgency,” it said.
“Following the full implementation of the prior actions and subject to the completion of national procedures, the ESM governing bodies are expected to ... approve the disbursement of the fourth tranche,” the Ministers’ statement said.
The new loans worth 6.7€ billion will be disbursed in two tranches, starting in February with 5.7€ billion for debt servicing needs. A further 1€ billion is to be paid out in April, ESM head Klaus Regling told a news conference.
Greek Finance Minister Euclid Tsakalotos told reporters it was a "very good meeting" and that the Eurogroup's mentions of debt relief were "particularly significant."
"People are now convinced that things have turned around, and people are beginning to talk about the future and Greece's exit from the programme," he told reporters. He said Greece was pleased with the result because the last stage of the bailout did not foresee as many prior actions as the one just completed and talks could start on debt relief. He said that "there is now going to be a working group to do more work on specifying what has come to be known as the 'French mechanism' that ties further debt to relief to growth as was agreed in the June Eurogroup meeting."
The technical work will be done by junior finance ministers and treasury officials from Eurozone countries - the Eurogroup Working Group (EWG) – designed to link the size of potential debt relief to Greece’s economic performance over time.
“The Eurogroup confirms the start of the technical work by the EWG on the growth-adjustment mechanism, as part of the medium-term debt relief measures to be implemented, if needed, following the successful conclusion of the programme,” the statement said.
Such a growth-linked mechanism could help bridge the gap between some Eurozone countries like Germany, which believe Greece may not need any further debt relief, and the International Monetary Fund, which insists on substantial debt relief for Greece now, as a condition of its taking part in the bailout.
One of the main reasons why the IMF and Germany are at odds over the need for debt relief is different growth forecasts for Greece over the next 40 years.
The Eurozone is more optimistic about growth in Greece than the IMF and even small differences in forecasts, accrued over such a long period, produce starkly different effects on debt projections.
Eurozone Ministers called on the various Institutions involved to converge in their views in order to produce a reliable debt sustainability analysis (DSA).
“The Eurogroup invites the European Institutions and the IMF to take into account the holistic Greek growth strategy when updating the DSA,” the statement said.
Prime Minister Alexis Tsipras held a series of important meetings on the sidelines of the World Economic Forum in Davos this week that could prove highly significant in the course towards sustained economic recovery and political stability in the country.
The complete official Eurogroup statement
“The Eurogroup welcomes the implementation of almost all of the agreed prior actions for the Third Assessment, following the staff level agreement on the policy package that was presented to the 4 December Eurogroup. Notably, the Greek authorities have adopted the 2018 State Budget which is compliant with the agreed primary surplus target of 3.5% of GDP.
Moreover, the European institutions’ compliance report shows that the Greek authorities have over-achieved the fiscal targets set over the last three years (2015-2017).
The Greek authorities have also continued to strengthen tax collection through the Independent Authority of Public Revenue and enhanced the fairness and effectiveness of the social welfare system.
The business environment has been improved by further actions aimed at opening up regulated professions, improving the investment licensing system, lifting regulations that unnecessarily restrict competition in product markets as well as the opening-up of energy markets.
Progress in the framework supporting Non Performing Loans resolution was achieved through further actions related to the effective operationalization of the out-of-court workout scheme and the start-up of electronic auctions.
The Eurogroup reconfirms the importance of an ambitious comprehensive growth strategy with strong ownership from the Greek authorities. The authorities are invited to finalize it in cooperation with the institutions well before the end of the programme.
The Eurogroup calls on the Greek authorities to complete the outstanding prior actions as a matter of urgency.
The Eurogroup mandates the EWG to verify the full implementation of the outstanding prior actions on the basis of an assessment by the European institutions.
This will include an assessment to confirm that a continuous and unimpeded flow of electronic auctions is ensured as well as the completion of government pending actions in the field of privatization.
Following the full implementation of the prior actions and subject to the completion of national procedures, the ESM governing bodies are expected to endorse the supplemental MoU and approve the disbursement of the fourth tranche of the ESM programme.
The fourth tranche under the ESM programme amounting to 6.7€ bn will be disbursed to Greece in two disbursements, starting with a first disbursement in February of 5.7€ bn to cover debt servicing needs, to allow the further clearance of arrears and to support the build-up of the cash buffer of the Greek State, in order to support Greece’s return to the market.
The subsequent disbursement for arrears clearance may be approved by the EWG in Spring, subject to a positive reporting by the European Institutions on the clearance of net arrears using also own resources and a confirmation from the European institutions that the unimpeded flow of e-auctions has continued.
The Eurogroup will now turn its attention to the final stages of the ESM programme, which is expected to end in August 2018.
The Eurogroup confirms the start of the technical work by the EWG on the growth-adjustment mechanism, as part of the medium-term debt relief measures to be implemented, if needed, following the successful conclusion of the programme, in line with the agreement in the Eurogroup of 15 June 2017.
The Eurogroup invites the European institutions and the IMF to take into account the holistic Greek growth strategy when updating the DSA.”
2018 - The Year of the Child
Referring to the kindergartens, Mrs Fotiou said that currently 110,000 children enter kindergarten at no cost, next year this will increase to 120,000 and in 2020, 165,000 children will be enrolled, with the creation of an additional 2,200 kindergartens in addition to the current 1,800.
2018 will be the year of the child, said the Deputy Minister for Social Solidarity Theano Fotiou. She said the objective is the design of a network of children’s benefits and services. As she said, the results of the Third Assessment are particularly important in this regard: “In this Assessment, the Government managed to achieve a situation in which all the money from the savings made from each Ministry, which was 315€ million, should be used to provide exclusively for children. Specifically, 260€ million are earmarked for Family Allowances, 40€ million for school meals -130,000 school meals are currently provided throughout Greece - and 15€ million will be given for new kindergartens.”
Speaking on television, in response to the criticism received about school meals, the Deputy Minister for Social Solidarity said that school lunches are normal in all countries.
Regarding Family Allowances, she noted that there is a gross iequality in the system. She reported that 800,000 families are receiving Family Allowances and 92% of these, i.e. 738,000 families, will see increases. "In less than 50% of families with three or more children, who belong to the two upper income echelons, there will be some reductions, which will be addressed in the course of 2018."
"State Provision concerns everyone, not just the homeless. A system with 240community centres, with 13 regional offices and with a direct line to the Ministry is being created." "There is a single information system, an electronic platform, where the citizen, using the ΑΦΜ, can get information about what allowances and what benefits they are entitled to. The second registry provides information on services and the third provides information on programmes that "are running". In this way, the clientelist state is being ended. This signifies assistance and social solidarity."
Prime Ministers Tsipras and Zaev met on January 24th on the fringe of the Davos summit
Greece and the former Yugoslav Republic of Macedonia (fYROM) appear to be moving closer to resolving their 25 year-old name dispute
Greece and the Former Yugoslav Republic of Macedonia (fYROM) appear to be moving closer to resolving their 25-year-old name dispute, which should pave the way for fYROM to join NATO this year and possibly remove a major obstacle for its EU integration. Until now, Greece has vetoed both fYROM's applications under the name "Republic of Macedonia" . Greece opposes the one-word name ‘Macedonia’ because its own northern province has the same name and insists on a compound name before the word “Macedonia”.
Relations between the two Balkan neighbours have thawed after Social Democrat Zoran Zaev came to power in Skopje and set about undoing the legacy of his nationalist predecessors.
Some background
On February 14th 1992, one million people, 10% of the entire population of Greece, marched in Thessaloniki in defence of brand Macedonia. Greece imposed an economic blockade on its fragile neighbour, which was desperately trying to stay out of the war raging in other parts of former Yugoslavia at the time.
Today Greece is the third largest investor in the Former Yugoslav Republic of Macedonia (fYROM) - the interim name the UN assigned the state in 1993 - after the Netherlands and Austria. Greeks travel freely across the border in order to work, shop or holiday.
In fYROM, then Prime Minister Nikola Gruevski used isolation from the West to strengthen his grip on power, providing benefits to his political and business associates. He refashioned the capital Skopje's city centre as a nationalist theme park, featuring a huge statue of Alexander The Great mounted on a water fountain, a vast triumphal arch ("Porta Makedonija") and a string of neoclassical buildings.
Gruevski's downfall, after a two-year long political crisis triggered by revelations of high-profile corruption, elections rigging and obstruction of justice, raised hopes for a new beginning. The new Government, led by Social Democratic Union's Zoran Zaev and inaugurated in May 2017, wants a settlement in order to facilitate fYROM’s entry into NATO and the EU. The SDU’s ethnic Albanian coalition partners agree.
NATO and the EU are clearly supportive. fYROM was a frontrunner to join both entities in the early and mid-2000s. Its accession to NATO and the EU would demonstrate that it is Brussels, rather than Moscow or Beijing, which has the decisive influence in the Balkans. At the NATO Bucharest summit in 2008, the then Prime Minister Kostas Karamanlis (New Democracy-EPP) blocked Skopje’s bid to join NATO under its provisional name of fYROM. Its EU accession has also been on hold, in part due to the name dispute.
NATO's Secretary General Jens Stoltenberg visited Skopje on January 18/19 to reassure his hosts. "I encourage you to continue on the path of reform. We want you to succeed," he said.
“Macedonia” remains a treasured piece of Greek national heritage. Use of ‘Macedonia’ by fYROM is viewed by some as a claim on Greek territory, identity and history.
The Greek Government’s stance is: the name "Macedonia" cannot be anyone's exclusive property, as the historic region by the same name is divided into three countries, Greece, fYROM and Bulgaria.
"The problem is that people think that fYROM will take away our identity. No one is doing that; they are no threat to us. People are ill-informed," said the Mayor of Thessaloniki Yannis Boutaris. In a gesture of goodwill, Mayor Boutaris hosted Macedonia's Prime Minister Zaev in Thessaloniki on New Year's Eve.
Nationalist sentiments are being stirred on both sides, spurred on by a spin put on the interview PM Tsipras gave to Greek newspaper Ethnos (The Nation) [see below Ed]. Advanced publicity for the interview stated: "Tsipras: A Macedonian nation never existed". It was a classical manipulation. The editors conveniently dropped the sentence's ending: "… in ancient times, as there was not a nation of Athenians or Spartans."
Thessaloniki last Sunday
Senior Clerics, members of New Democracy, of AN-EL, of the Union of Centrists, armed services veterans, Golden Dawn storm troopers and ordinary citizens - about 90,000 protesters demonstrated at the White Tower in Thessaloniki on Sunday to demand that the term "Macedonia" should not be included in the name of FYROM.
Tens of thousands of protesters chanted slogans such as "Greece-Greece-Macedonia", "no to the double name – No to a new treason" and sang the anthem "Macedonia the famous." According to a statement of the police, the rally was attended by 90,000 protesters.
Present at the rally were Metropolitan [Archbishop Ed.] Anthimos of Thessaloniki and ten other senior clerics, according to the organizers. "Brothers on the land and on the seas, on televisions and on radios, in the open spaces, shout that Macedonia was and is a homeland of the Greeks. Where Macedonia equals Greece and where Greece equals Macedonia,"said the Archbishop.
Differences then emerged within the Greek Orthodox Church over approaches to the ‘Macedonia’ issue.
Ieronymos II, the Archbishop of Athens and All Greece, in comments broadcast on Greek channel ERT and posted by the Proto Thema news site, said although the Church overall remained opposed to the use of ‘Macedonia’, “prudence, unity and sobriety” should prevail.
He also pointed out that only nine senior bishops took part in Sunday’s demonstration in Thessaloniki out of 82 senior clergy.
PM Tsipras Interview in “Ethnos”
Greek Prime Minister Alexis Tsipras, in that interview with the Sunday edition of the daily "Ethnos", adopted a clear position on the name of fYROMacedonia, saying that "if there is an opportunity for a solution, it will be national foolishness not to use it".
The Greek Prime Minister gave assurances that he respects "the concerns and especially the sensitive heart strings of his compatriots in northern Greece. Besides, I myself am half Macedonian."
"However, what I urge them is to appreciate soberly what promotes the national interest and what undermines it. A non-solution undermines it. For 25 years, our neighbours have been recognized by the name "Republic of Macedonia" by many countries, and we are fighting everywhere for everyone to call them fYROM. That is, a composite name, which includes the term 'Macedonia', but without any definition that allows the appropriation of geography and history. So if there is a chance of a solution that will reverse this negative situation that was loaded on to us in 1992, then it would be a national foolishness not to use it."
"A Macedonian nation never existed in ancient times, just as there was not a nation of Athenians or Spartans. Ancient Macedonia was a powerful force of the ancient Greek world that expanded, especially at the time of Alexander the Great, much wider than the present geographical area of Macedonia. From the 7th century onwards, in this place, Slavs, Bulgarians, Serbs, Jews, Ottomans successively settled in addition to the Greeks. Today, this wider geographical area is occupied by three different states. In this sense, it is absolutely unrealistic and absurd for some to ask for the exclusivity of Macedonia, particularly in the sense of ethnic identification. It is not unreasonable, however, to include the term 'Macedonia' in a composite name, either with a geographic or temporal specification, for everyday use, so that it is absolutely clear that no one claims territory or other people’s history."
Regarding the distinctive attitude of the Government partner, PM Tsipras acknowledged that "Panos (Kammenos) is aware of the problem and is an honest and patriotic politician. He has reservations and has expressed them to the governing council, but he has stated his confidence in the efforts of the Foreign Minister and his desire to have a broad consensus of the political forces on this issue, provided of course a satisfactory agreement is reached", adding that "Governments fall if they lose a vote of confidence. Let some not be fooled. Kammenos is an honest man, he will not become Samaras".
PM Tsipras condemned the attitude of the New Democracy leader: "Mr. Mitsotakis is committing a tragic political error. In the name discussion he has an opportunity to show an attitude of national responsibility. He does not dare to be straightforward about New Democracy’s stance. First he distances himself from the rallies and then he criticises those who prevent his MPs from participating. This proves to the Greeks that he is capable of serving any viewpoint, provided he has a vote-gaining benefit, and to Europeans that he is an unreliable politician, a classic spokesman for the old political staff that bankrupted the country."
The Prime Minister noted, however, that the major issue is not the name but the irredentism - a movement aiming to reclaim and reoccupy areas considered "lost" or "unredeemed". "If we want to find a viable solution, we need to look not just for a name but also for a broader framework of an agreement that will not leave any room for irredentist nationalism or claims that ignore history. Both sides need to approach the problem with realism but also with wisdom."
However, the Prime Minister expressed optimism that a nationally beneficial solution will be voted through by many more MPs than those who make up the current parliamentary majority."All those who play games of demagogy and populism guided by the domestic political game, in the end will get their fingers burned.
Alexis Tsipras noted that "the biggest challenge is for Greece to leave this national adventure of the Memoranda that lasted eight years, to become again a country that is firmly on the map – a country that walks on strong legs - a pillar of security and stability in the most critical area of Europe. A country that solves problems, and does not create them."
Foreign Minister Kotzias in Brussels
Speaking to Greek journalists following a meeting of the EU Foreign Affairs Council in Brussels on Monday, Minister Kotzias referred to latest developments in the name row and Sunday's protests in Thessaloniki.
"We are close to a solution on certain issues. I believe topics to be discussed in Davos on Wednesday will show the direction," says Foreign Minister Kotzias.
He rejected any type of pressure on Greece or meddling by third parties.
"No one is putting pressure and we do not allow anyone to pressure us. Greece is using the pressure of the other side in order to open its European perspective," he stressed and added that the bilateral talks have been facilitated by the fact that the Europeans and Americans realized they should not meddle.
According to him, Greece will veto fYROM from joining NATO unless the required criteria are met and the name issue is resolved.
Regarding yesterday's protest, he said this is a democratic right and does not affect the name talks.
"The protest reflected the agony of many Greeks, who sometimes have misconceptions about the name talks, identifying them with the destiny of Greek Macedonia. This protest adds to the forms of public debate, but I believe it will not affect the name talks. With regards to the irredentism issue, it is obvious that each action that condemns it is welcome. We will solve the name issue based on the future perspectives of stability in the region, the role of the Greek diplomacy and the necessity for our country to play a leading role in the area."
Davos Meeting – positive step forward
Prime Ministers Tsipras and Zaev met on January 24th on the fringe of the Davos summit.
"We don't want to simply solve the issue of the name, but we want to put the relations between our two countries on solid foundations, the foundations of mutual respect and good neighbourliness, that means that first you have to deal with irrendentist claims about “lost territory” in all their forms and above all with guarantees that we will not leave any window of opportunity open for similar challenges to be made in the future."
This was underlined by Alexis Tsipras in his joint statement with the PM Zaef, after their meeting which lasted about two and a half hours and he noted that Mr. Zaef during today's meeting, informed him that is willing to take significant initiatives, directly towards this. Shortly thereafter, Mr. Zaef announced, in his statement, the renaming of the airport and national highway in Skopje, which up to now bear the name "Alexander The Great". The highway, he announced, will be called: " Friendship Highway". Greece, in turn, unblocked the implementation of Macedonia's EU association agreement. A new border crossing is to open in the Prespa Lake region.
Mr. Tsipras spoke about the frank discussion he had with his counterpart and assured the people of the two countries listening to him, either with scepticism or with sincere hope, saying that both of them have the desire to deal with their very real differences in a realistic and responsible manner.
The Greek PM, however, noted that in order for the European integration process and the NATO membership wanted by the neighboring country to move forward, "we must find a solution to all of the outstanding issues". In particular, Mr. Tsipras made it clear that "we must agree on a composite name that is used in all international dealings ("erga omnes")", adding that in this context certainly, ideas were exchanged and "we agreed to intensify under our supervision the discussions already being carried out under the aegis of the UN".
Alexis Tsipras thanked Zoran Zaef for today’s talks: "We are two people who belong to a new generation, two progressive politicians in an extremely tough neighborhood and I believe that we are both striving to bring to the fore those things that unite our peoples, while also attempting to find solutions to those things that divide us. "
"My deep belief is that the Balkans have been greatly plagued by nationalism and tensions. What is needed therefore is to promote an agenda for cooperation and co-development, in order to strengthen the European perspective of the Western Balkans, for the region to go forward and for it to be able to face the great challenges of the 21st century, on the economy, security, regional stability ".
Prime Minister Zoran Zaef said: “The time has come to find a solution”
"We are committed to building confidence between our countries, with the aim of working together to overcome the problems between our countries. We are at a moment when we can create good neighbourly relations." "We want to be partners in the EU and allies in NATO, to face all the difficulties."
"The time has come for us to find a solution because it is vital for our perspective towards NATO and the EU." "The final solution must be acceptable to both sides and the solution must take account of the national dignity of our peoples."
It was in this context that he announced that his country will change the name to its airport and main streets.
"Our actions demonstrate our good faith. This illustrates the fact that we have not irredentist aspirations at the expense of our neighbour."
"We will remain committed to the process under the aegis of the UN and Mr Nimitz," added Mr. Zaef and noted that "the Foreign Ministers will be responsible for the process and for all the negotiations, under our own supervision".
Relations between the two Balkan neighbours have thawed after Social Democrat Zoran Zaev came to power in Skopje and set about undoing the legacy of his nationalist predecessors.
Some background
On February 14th 1992, one million people, 10% of the entire population of Greece, marched in Thessaloniki in defence of brand Macedonia. Greece imposed an economic blockade on its fragile neighbour, which was desperately trying to stay out of the war raging in other parts of former Yugoslavia at the time.
Today Greece is the third largest investor in the Former Yugoslav Republic of Macedonia (fYROM) - the interim name the UN assigned the state in 1993 - after the Netherlands and Austria. Greeks travel freely across the border in order to work, shop or holiday.
In fYROM, then Prime Minister Nikola Gruevski used isolation from the West to strengthen his grip on power, providing benefits to his political and business associates. He refashioned the capital Skopje's city centre as a nationalist theme park, featuring a huge statue of Alexander The Great mounted on a water fountain, a vast triumphal arch ("Porta Makedonija") and a string of neoclassical buildings.
Gruevski's downfall, after a two-year long political crisis triggered by revelations of high-profile corruption, elections rigging and obstruction of justice, raised hopes for a new beginning. The new Government, led by Social Democratic Union's Zoran Zaev and inaugurated in May 2017, wants a settlement in order to facilitate fYROM’s entry into NATO and the EU. The SDU’s ethnic Albanian coalition partners agree.
NATO and the EU are clearly supportive. fYROM was a frontrunner to join both entities in the early and mid-2000s. Its accession to NATO and the EU would demonstrate that it is Brussels, rather than Moscow or Beijing, which has the decisive influence in the Balkans. At the NATO Bucharest summit in 2008, the then Prime Minister Kostas Karamanlis (New Democracy-EPP) blocked Skopje’s bid to join NATO under its provisional name of fYROM. Its EU accession has also been on hold, in part due to the name dispute.
NATO's Secretary General Jens Stoltenberg visited Skopje on January 18/19 to reassure his hosts. "I encourage you to continue on the path of reform. We want you to succeed," he said.
“Macedonia” remains a treasured piece of Greek national heritage. Use of ‘Macedonia’ by fYROM is viewed by some as a claim on Greek territory, identity and history.
The Greek Government’s stance is: the name "Macedonia" cannot be anyone's exclusive property, as the historic region by the same name is divided into three countries, Greece, fYROM and Bulgaria.
"The problem is that people think that fYROM will take away our identity. No one is doing that; they are no threat to us. People are ill-informed," said the Mayor of Thessaloniki Yannis Boutaris. In a gesture of goodwill, Mayor Boutaris hosted Macedonia's Prime Minister Zaev in Thessaloniki on New Year's Eve.
Nationalist sentiments are being stirred on both sides, spurred on by a spin put on the interview PM Tsipras gave to Greek newspaper Ethnos (The Nation) [see below Ed]. Advanced publicity for the interview stated: "Tsipras: A Macedonian nation never existed". It was a classical manipulation. The editors conveniently dropped the sentence's ending: "… in ancient times, as there was not a nation of Athenians or Spartans."
Thessaloniki last Sunday
Senior Clerics, members of New Democracy, of AN-EL, of the Union of Centrists, armed services veterans, Golden Dawn storm troopers and ordinary citizens - about 90,000 protesters demonstrated at the White Tower in Thessaloniki on Sunday to demand that the term "Macedonia" should not be included in the name of FYROM.
Tens of thousands of protesters chanted slogans such as "Greece-Greece-Macedonia", "no to the double name – No to a new treason" and sang the anthem "Macedonia the famous." According to a statement of the police, the rally was attended by 90,000 protesters.
Present at the rally were Metropolitan [Archbishop Ed.] Anthimos of Thessaloniki and ten other senior clerics, according to the organizers. "Brothers on the land and on the seas, on televisions and on radios, in the open spaces, shout that Macedonia was and is a homeland of the Greeks. Where Macedonia equals Greece and where Greece equals Macedonia,"said the Archbishop.
Differences then emerged within the Greek Orthodox Church over approaches to the ‘Macedonia’ issue.
Ieronymos II, the Archbishop of Athens and All Greece, in comments broadcast on Greek channel ERT and posted by the Proto Thema news site, said although the Church overall remained opposed to the use of ‘Macedonia’, “prudence, unity and sobriety” should prevail.
He also pointed out that only nine senior bishops took part in Sunday’s demonstration in Thessaloniki out of 82 senior clergy.
PM Tsipras Interview in “Ethnos”
Greek Prime Minister Alexis Tsipras, in that interview with the Sunday edition of the daily "Ethnos", adopted a clear position on the name of fYROMacedonia, saying that "if there is an opportunity for a solution, it will be national foolishness not to use it".
The Greek Prime Minister gave assurances that he respects "the concerns and especially the sensitive heart strings of his compatriots in northern Greece. Besides, I myself am half Macedonian."
"However, what I urge them is to appreciate soberly what promotes the national interest and what undermines it. A non-solution undermines it. For 25 years, our neighbours have been recognized by the name "Republic of Macedonia" by many countries, and we are fighting everywhere for everyone to call them fYROM. That is, a composite name, which includes the term 'Macedonia', but without any definition that allows the appropriation of geography and history. So if there is a chance of a solution that will reverse this negative situation that was loaded on to us in 1992, then it would be a national foolishness not to use it."
"A Macedonian nation never existed in ancient times, just as there was not a nation of Athenians or Spartans. Ancient Macedonia was a powerful force of the ancient Greek world that expanded, especially at the time of Alexander the Great, much wider than the present geographical area of Macedonia. From the 7th century onwards, in this place, Slavs, Bulgarians, Serbs, Jews, Ottomans successively settled in addition to the Greeks. Today, this wider geographical area is occupied by three different states. In this sense, it is absolutely unrealistic and absurd for some to ask for the exclusivity of Macedonia, particularly in the sense of ethnic identification. It is not unreasonable, however, to include the term 'Macedonia' in a composite name, either with a geographic or temporal specification, for everyday use, so that it is absolutely clear that no one claims territory or other people’s history."
Regarding the distinctive attitude of the Government partner, PM Tsipras acknowledged that "Panos (Kammenos) is aware of the problem and is an honest and patriotic politician. He has reservations and has expressed them to the governing council, but he has stated his confidence in the efforts of the Foreign Minister and his desire to have a broad consensus of the political forces on this issue, provided of course a satisfactory agreement is reached", adding that "Governments fall if they lose a vote of confidence. Let some not be fooled. Kammenos is an honest man, he will not become Samaras".
PM Tsipras condemned the attitude of the New Democracy leader: "Mr. Mitsotakis is committing a tragic political error. In the name discussion he has an opportunity to show an attitude of national responsibility. He does not dare to be straightforward about New Democracy’s stance. First he distances himself from the rallies and then he criticises those who prevent his MPs from participating. This proves to the Greeks that he is capable of serving any viewpoint, provided he has a vote-gaining benefit, and to Europeans that he is an unreliable politician, a classic spokesman for the old political staff that bankrupted the country."
The Prime Minister noted, however, that the major issue is not the name but the irredentism - a movement aiming to reclaim and reoccupy areas considered "lost" or "unredeemed". "If we want to find a viable solution, we need to look not just for a name but also for a broader framework of an agreement that will not leave any room for irredentist nationalism or claims that ignore history. Both sides need to approach the problem with realism but also with wisdom."
However, the Prime Minister expressed optimism that a nationally beneficial solution will be voted through by many more MPs than those who make up the current parliamentary majority."All those who play games of demagogy and populism guided by the domestic political game, in the end will get their fingers burned.
Alexis Tsipras noted that "the biggest challenge is for Greece to leave this national adventure of the Memoranda that lasted eight years, to become again a country that is firmly on the map – a country that walks on strong legs - a pillar of security and stability in the most critical area of Europe. A country that solves problems, and does not create them."
Foreign Minister Kotzias in Brussels
Speaking to Greek journalists following a meeting of the EU Foreign Affairs Council in Brussels on Monday, Minister Kotzias referred to latest developments in the name row and Sunday's protests in Thessaloniki.
"We are close to a solution on certain issues. I believe topics to be discussed in Davos on Wednesday will show the direction," says Foreign Minister Kotzias.
He rejected any type of pressure on Greece or meddling by third parties.
"No one is putting pressure and we do not allow anyone to pressure us. Greece is using the pressure of the other side in order to open its European perspective," he stressed and added that the bilateral talks have been facilitated by the fact that the Europeans and Americans realized they should not meddle.
According to him, Greece will veto fYROM from joining NATO unless the required criteria are met and the name issue is resolved.
Regarding yesterday's protest, he said this is a democratic right and does not affect the name talks.
"The protest reflected the agony of many Greeks, who sometimes have misconceptions about the name talks, identifying them with the destiny of Greek Macedonia. This protest adds to the forms of public debate, but I believe it will not affect the name talks. With regards to the irredentism issue, it is obvious that each action that condemns it is welcome. We will solve the name issue based on the future perspectives of stability in the region, the role of the Greek diplomacy and the necessity for our country to play a leading role in the area."
Davos Meeting – positive step forward
Prime Ministers Tsipras and Zaev met on January 24th on the fringe of the Davos summit.
"We don't want to simply solve the issue of the name, but we want to put the relations between our two countries on solid foundations, the foundations of mutual respect and good neighbourliness, that means that first you have to deal with irrendentist claims about “lost territory” in all their forms and above all with guarantees that we will not leave any window of opportunity open for similar challenges to be made in the future."
This was underlined by Alexis Tsipras in his joint statement with the PM Zaef, after their meeting which lasted about two and a half hours and he noted that Mr. Zaef during today's meeting, informed him that is willing to take significant initiatives, directly towards this. Shortly thereafter, Mr. Zaef announced, in his statement, the renaming of the airport and national highway in Skopje, which up to now bear the name "Alexander The Great". The highway, he announced, will be called: " Friendship Highway". Greece, in turn, unblocked the implementation of Macedonia's EU association agreement. A new border crossing is to open in the Prespa Lake region.
Mr. Tsipras spoke about the frank discussion he had with his counterpart and assured the people of the two countries listening to him, either with scepticism or with sincere hope, saying that both of them have the desire to deal with their very real differences in a realistic and responsible manner.
The Greek PM, however, noted that in order for the European integration process and the NATO membership wanted by the neighboring country to move forward, "we must find a solution to all of the outstanding issues". In particular, Mr. Tsipras made it clear that "we must agree on a composite name that is used in all international dealings ("erga omnes")", adding that in this context certainly, ideas were exchanged and "we agreed to intensify under our supervision the discussions already being carried out under the aegis of the UN".
Alexis Tsipras thanked Zoran Zaef for today’s talks: "We are two people who belong to a new generation, two progressive politicians in an extremely tough neighborhood and I believe that we are both striving to bring to the fore those things that unite our peoples, while also attempting to find solutions to those things that divide us. "
"My deep belief is that the Balkans have been greatly plagued by nationalism and tensions. What is needed therefore is to promote an agenda for cooperation and co-development, in order to strengthen the European perspective of the Western Balkans, for the region to go forward and for it to be able to face the great challenges of the 21st century, on the economy, security, regional stability ".
Prime Minister Zoran Zaef said: “The time has come to find a solution”
"We are committed to building confidence between our countries, with the aim of working together to overcome the problems between our countries. We are at a moment when we can create good neighbourly relations." "We want to be partners in the EU and allies in NATO, to face all the difficulties."
"The time has come for us to find a solution because it is vital for our perspective towards NATO and the EU." "The final solution must be acceptable to both sides and the solution must take account of the national dignity of our peoples."
It was in this context that he announced that his country will change the name to its airport and main streets.
"Our actions demonstrate our good faith. This illustrates the fact that we have not irredentist aspirations at the expense of our neighbour."
"We will remain committed to the process under the aegis of the UN and Mr Nimitz," added Mr. Zaef and noted that "the Foreign Ministers will be responsible for the process and for all the negotiations, under our own supervision".
Multi-Bill passed to satisfy Lenders
21.1.2018
Multi-Bill Passed to satisfy Lenders
Introducing the latest Multi-Bill, tabled last Tuesday evening, Finance Minister Euclid Tsakalotos noted the recent change in the agenda of the political discussion attributing it to the seriousness with which the Government is addressing the problems the country is facing.
For the first time the Multi-Bill enacting the prerequisites for the closing of the Third Assessment contained no new “measures”, he said evoking the positive atmosphere from the Euro-Working Group.
He commented that the Government is being forced to find solutions to chronic problems, since it does not subscribe to the policy of previous Governments of “never do today what you can do tomorrow.”
He observed that every time he appeared before Parliament the economic indicators were doing better than the time before. As an example, he mentioned the reduction of “spreads” to 3.88 from the 4.01 that it had been when he talked about the 2018 budget [A spread is the difference between the bid and the ask price of a Government Bond Ed.] , the emphatic shift in the market at Christmas but also the record (since 2008) increase in shop sales. On Family allowances: 730,000 families will get more money, he said while stressing that the policy to deal with child poverty cannot be limited to family allowances. He recalled Government initiatives such as the tax-free social dividend, and also the expansion of kindergartens that will benefit three-child and large families.
Concerning the provision for announcing strikes in Primary Trade Union Associations, Minister Tsakalotos said he did not think that is contradictory rhetoric from the Government which on the one hand recognises the concession that is represents and at the same time asks questions about trade union practices and asks why the labour movement cannot rally the workers.
With regard to the casinos, he pointed out that the Casino licenses on Mykonos and Santorini will be seasonal, while he noted that an amendment to the Bill satisfied the request of workers that they receive 70% of earnings for the months that the casino is closed. He dismissed the scaremongering about the ability of players to get into debt to the casino by observing that that relates to amounts exceeding 50,000€ and so it affects "gamblers people who have too much money."
Finally, concerning the abolition of the Public Holding Company, he stressed that its abolition is linked to the Government's intention to support the public nature of Public Businesses and Organisations. Furthermore, the Board of the Management Fund will include two members who specialize in public companies, so that just private sector criteria do not prevail in the discussions on the utilization of the Management Fund criteria.
Measures promise enhanced development through a variety of methods, which start from facilities and incentives for entrepreneurial activity in bakeries and degraded areas of the historical centre of Athens through to "tax bonuses" for introducing innovation and the strengthening of the tourism sector crucial to the Greek economy through "associated" sectors, such as casinos.
Tax changes mean that the Tax Office will be able to suspend the use of Tax Numbers if it is found that the taxpayer has ceased economic activity or commits fraud or has declared false or inaccurate information about their property.
This has multiple benefits. On the one hand, the risk of the ΑΦΜ being taken away can act as a disincentive to tax violation and can address to some extent the "corporate seal" or "corporate ghost", as it is also known. They have neither staff nor do they exercise any real activity, simply providing a vehicle for tax evasion, but also more general taxation and financial criminal offences. This will clean up to some degree the market since at the moment honest taxpayers cannot compete and even go out of the market because of unfair competition.
Other provisions are for the haircut of fines, as the timeframes change within which taxpayers can submit overdue or amending statements. If the due taxes (excluding statements of withheld payroll taxes) are repaid within a specified time limit of 30 days, the "haircut" will reach 60%.
Introducing the latest Multi-Bill, tabled last Tuesday evening, Finance Minister Euclid Tsakalotos noted the recent change in the agenda of the political discussion attributing it to the seriousness with which the Government is addressing the problems the country is facing.
For the first time the Multi-Bill enacting the prerequisites for the closing of the Third Assessment contained no new “measures”, he said evoking the positive atmosphere from the Euro-Working Group.
He commented that the Government is being forced to find solutions to chronic problems, since it does not subscribe to the policy of previous Governments of “never do today what you can do tomorrow.”
He observed that every time he appeared before Parliament the economic indicators were doing better than the time before. As an example, he mentioned the reduction of “spreads” to 3.88 from the 4.01 that it had been when he talked about the 2018 budget [A spread is the difference between the bid and the ask price of a Government Bond Ed.] , the emphatic shift in the market at Christmas but also the record (since 2008) increase in shop sales. On Family allowances: 730,000 families will get more money, he said while stressing that the policy to deal with child poverty cannot be limited to family allowances. He recalled Government initiatives such as the tax-free social dividend, and also the expansion of kindergartens that will benefit three-child and large families.
Concerning the provision for announcing strikes in Primary Trade Union Associations, Minister Tsakalotos said he did not think that is contradictory rhetoric from the Government which on the one hand recognises the concession that is represents and at the same time asks questions about trade union practices and asks why the labour movement cannot rally the workers.
With regard to the casinos, he pointed out that the Casino licenses on Mykonos and Santorini will be seasonal, while he noted that an amendment to the Bill satisfied the request of workers that they receive 70% of earnings for the months that the casino is closed. He dismissed the scaremongering about the ability of players to get into debt to the casino by observing that that relates to amounts exceeding 50,000€ and so it affects "gamblers people who have too much money."
Finally, concerning the abolition of the Public Holding Company, he stressed that its abolition is linked to the Government's intention to support the public nature of Public Businesses and Organisations. Furthermore, the Board of the Management Fund will include two members who specialize in public companies, so that just private sector criteria do not prevail in the discussions on the utilization of the Management Fund criteria.
Measures promise enhanced development through a variety of methods, which start from facilities and incentives for entrepreneurial activity in bakeries and degraded areas of the historical centre of Athens through to "tax bonuses" for introducing innovation and the strengthening of the tourism sector crucial to the Greek economy through "associated" sectors, such as casinos.
Tax changes mean that the Tax Office will be able to suspend the use of Tax Numbers if it is found that the taxpayer has ceased economic activity or commits fraud or has declared false or inaccurate information about their property.
This has multiple benefits. On the one hand, the risk of the ΑΦΜ being taken away can act as a disincentive to tax violation and can address to some extent the "corporate seal" or "corporate ghost", as it is also known. They have neither staff nor do they exercise any real activity, simply providing a vehicle for tax evasion, but also more general taxation and financial criminal offences. This will clean up to some degree the market since at the moment honest taxpayers cannot compete and even go out of the market because of unfair competition.
Other provisions are for the haircut of fines, as the timeframes change within which taxpayers can submit overdue or amending statements. If the due taxes (excluding statements of withheld payroll taxes) are repaid within a specified time limit of 30 days, the "haircut" will reach 60%.
Greece on Friday (19.1.2018) was given a green light for more bailout cash from its eurozone creditors.
A senior eurozone official said "There was a political agreement for the conclusion of the Third Assessment, the necessary step to disburse to Greece." This decision will now go to Finance Ministers on Monday for a formal decision to disburse bailout loans. The amount of the disbursement is expected to be more than 6.7€ billion and will be paid in instalments. Of this amount, 3.3€ billion is earmarked to service the country's debt from February to June 2018; 1.5€ billion will be used to pay matured bonds and 1.9€ billion will be added to the reserves.
The IMF
The IMF Board will need to meet again to reach the final decision to activate the programme in Greece, clarified Gerry Rice, the IMF’s Press Representative.
He reiterated that the decision is based on two parts: progress with the “reforms” and debt relief that will make the Greek debt viable. Discussions about both situations continue; when reaching the ultimate decision, we will go to the Board of Directors of the Fund.
"If one looks back to 2015, one will see that we have made considerable progress on the debt issue. But not all the differences have been bridged and we are working hard for a good result so that the country can pursue sustainable growth," Mr. Rice said.
He expressed the Fund’s willingness to work with Greece’s European partners for a solution that will credibly reduce the country’s debt, and lead it to a viable recovery.
Greece and European Institutions seem to be near the end of the completion of the Third ESM Assessment and we are waiting for the final announcement at Monday's Eurogroup, he said.
Credit Rating Up
Credit Ratings Agency S&P Global Ratings on Friday raised the rating of Greek Government debt by a notch citing the improved outlook for the crisis-stricken country´s finances and economic growth.
The rating on Greece’s long-term debt was improved to "B" from "B-" with a positive outlook, which means the ratings agency could raise the grade further in the next year.
"The upgrade reflects Greece´s steadily improving general government finances and its gradually recovering economic prospects," S&P said in a statement.
The agency notes the government had budget surpluses in 2016 and 2017 and "the economy exited a multiyear recession last year." S&P projects Greece will see its economy grow 2% this year.
A senior eurozone official said "There was a political agreement for the conclusion of the Third Assessment, the necessary step to disburse to Greece." This decision will now go to Finance Ministers on Monday for a formal decision to disburse bailout loans. The amount of the disbursement is expected to be more than 6.7€ billion and will be paid in instalments. Of this amount, 3.3€ billion is earmarked to service the country's debt from February to June 2018; 1.5€ billion will be used to pay matured bonds and 1.9€ billion will be added to the reserves.
The IMF
The IMF Board will need to meet again to reach the final decision to activate the programme in Greece, clarified Gerry Rice, the IMF’s Press Representative.
He reiterated that the decision is based on two parts: progress with the “reforms” and debt relief that will make the Greek debt viable. Discussions about both situations continue; when reaching the ultimate decision, we will go to the Board of Directors of the Fund.
"If one looks back to 2015, one will see that we have made considerable progress on the debt issue. But not all the differences have been bridged and we are working hard for a good result so that the country can pursue sustainable growth," Mr. Rice said.
He expressed the Fund’s willingness to work with Greece’s European partners for a solution that will credibly reduce the country’s debt, and lead it to a viable recovery.
Greece and European Institutions seem to be near the end of the completion of the Third ESM Assessment and we are waiting for the final announcement at Monday's Eurogroup, he said.
Credit Rating Up
Credit Ratings Agency S&P Global Ratings on Friday raised the rating of Greek Government debt by a notch citing the improved outlook for the crisis-stricken country´s finances and economic growth.
The rating on Greece’s long-term debt was improved to "B" from "B-" with a positive outlook, which means the ratings agency could raise the grade further in the next year.
"The upgrade reflects Greece´s steadily improving general government finances and its gradually recovering economic prospects," S&P said in a statement.
The agency notes the government had budget surpluses in 2016 and 2017 and "the economy exited a multiyear recession last year." S&P projects Greece will see its economy grow 2% this year.
4th Summit of the Mediterranean/Southern
countries of the EU
13.1.2018
Prime Minister, Alexis Tsipras, was in Rome on Wednesday 10th January to participate in the 4th Summit of the Mediterranean/Southern countries of the EU.
The Summit was attended by the President of the Republic of Cyprus, Nicos Anastasiades, the President of the French Republic, Emmanuel Macron, the Prime Minister of Spain, Mariano Rajoy, the Prime Minister of the Hellenic Republic, Alexis Tsipras, the Prime Minister of the Italian Republic, Paolo Gentiloni, the Prime Minister of the Republic of Malta, Joseph Muscat and the Prime Minister of the Portuguese Republic, Antonio Costa.
PM Tsipras in his statement at the conclusion of the Summit said that the necessary steps towards a more forceful, social and democratic Europe, which can serve as a basic model in the world, had been discussed in Rome by the leaders of the countries of the South.
"It is a symbolic fact that the crisis ends with the exit of Greece from the fiscal adjustment programmes in August 2018 both practically and symbolically where it began, in the South.".
It was a meeting that gave new momentum to the project of a social Europe which will be the central debate at the upcoming extraordinary EU Summit. At the same time issues were raised with an eye on the European Councils of February and March, such as reform of the Eurozone focusing on the common budget, but also the revision of the Dublin Convention on the basis of solidarity.
"Europe's future can be bright only if we make the necessary and courageous steps towards the necessary reforms which Europe needs," he noted, pointing out that the Summit highlights the importance of gradually pursuing this initiative in a very crucial period for the future of the EU and the Eurozone.
He characterised 2018 as a "landmark" year for the end of the crisis in Europe and stressed the need for a fundamental debate on taking protective measures to prevent a repeat of the crisis.
"It is our common belief that we have taken very important steps to address international and regional challenges. However, only if it changes can Europe have a bright future for its citizens, but that is not enough; we must not repeat our errors; we need to anticipate the likely event of new crises."
He stressed that today's debate is necessary for Europe and the common future of the States which have the language of common principles and values and not the language of crisis. "Let us speak with the language of democracy, solidarity and unity, because, if there is something missing today from Europe, it is not fiscal adjustment rules and their application. If something is missing, it is the common rules for solidarity and convergence, social and economic ".
As regards the refugee issue, Alexis Tsipras noted that countries of the South which are receiving the flows of migrants are also the southern borders of the EU: "In this context it is not just the ability of Europe to manage a global challenge that is being tested, but also the very cohesion of the EU itself. The countries of the South must work for the implementation of an "effective common immigration policy with a view to effective border management but also solidarity especially towards countries that receive the largest flows".
He stressed that the EU must put its stamp of approval in favour of international law, of security and of resolving crises especially in the Mediterranean. At the same time he pointed out the necessity for the Aegean to be a sea of peace and cooperation, without threats, a place where international law will be respected by all of Greece’s neighbours.
The need for Economic and Monetary Union, for growth and new jobs, greater solidarity, democracy, participation of citizens were all referred to by the leaders of the Euro-Mediterranean countries of the South, undertaking to shape a common agenda of positions of the European South ahead of the discussions about the future of the EU and the Eurozone.
The Summit’s "host", the Italian Prime Minister Paolo Gentiloni, stated that "We are a team that believes in the future of Europe" and expressed the view that it is a positive moment for the seven countries to try to create a greater convergence within the EU: "We need an EU with greater cohesion, where the differences North and South will be reduced."
He pointed out that the countries of the european South know that they make up 47% of the EU budget and that they have their own voice, which is expressed in the positions on development and investment, the social pillar, common goals for the migration policy, while he did not fail to note that the EU also requires internal rules.
French President Macron described the role of the "team" of seven countries that share a common fate and a common geographic location as complementary to the other EU countries and not in competition with them. He concentrated on three points of convergence of the seven. For a more democratic Europe, "we must consult the citizens, this debate in Europe must be revitalised ."
He spoke about the necessity for the reconstruction of Europe. He mentioned the need to strengthen solidarity and to strengthen EU borders, "to respond to the inconsistencies of the Dublin Regulations".
As to the issue of Monetary Union, with a real European budget, he said that this is a key point for a more United Europe, "so we can have more growth, jobs and solidarity, all those things we have not had in recent years to respond to the crisis, and from which some countries suffered direct consequences ".
Cypriot President Nikos Anastasiades, announcing that the next meeting will be hosted in Cyprus no later than next March, agreed:
"Through the completion of Economic and Monetary Union, the creation of conditions for attracting investment that will lead to an increase in jobs will achieve the objective of greater prosperity for our peoples."
He noted that concerns remain regarding migration flows "which are shaped according to the choices of people traffickers". Solidarity, he said, demands the fullest possible support for the countries in the frontline of receiving migrants.
He noted that the continuation of the unsolved problem of Cyprus hinders the enhancement of a better Europe and reiterated the fixed objective of finding a mutually acceptable solution on the basis of the European acquis, for the creation of a truly independent country, far from guarantors, rights of intervention and armies of occupation.
He also said they had discussed the energy security issues of Europe, with himself informing the meeting about developments in Cyprus's Exclusive Economic Zone. "Discoveries in the area are a very important development and that with the pipeline East Med can offer a source of security to the EU ". He also pointed out the "violations that we are experiencing in the exercise of our sovereign rights as a result of illegal actions who unfortunately observed on the part of the Turkish side."
The Portuguese Prime Minister Antonio Costa said "We are meeting not to sparate ourselves from the E.U., but to help it, because we believe in a single E.U. that focuses on the needs of its citizens." He argued that there are conditions for better cooperation with regard to migratory flows, while he stressed the need to build growth and jobs, putting forward as priorities for investment in innovation, in the digital market and in energy.
He said that there should be consultation with regard to Monetary Union, referring to the importance of the EU having mechanisms that can deal with and prevent new crises. He added that only if our development models converge will long-lasting development be possible. "We believe in an even more democratic and united Europe," he concluded.
For his part, Spanish Prime Minister Mariano Rajoy said that the major objective should be the continuation of economic growth and job creation and that the seven countries converge on the objective of Monetary Union. He mentioned migration as the biggest challenge for the future of Europe, asking for the EU to help more on border controls."
"We want a more democratic Europe, where everyone participates," he said.
"We must understand how Europe can change the lives of its citizens," said the Prime Minister of Malta Joseph Muscat stating that the Declaration adopted by the meeting clearly shows "where we want to go".
The Summit was attended by the President of the Republic of Cyprus, Nicos Anastasiades, the President of the French Republic, Emmanuel Macron, the Prime Minister of Spain, Mariano Rajoy, the Prime Minister of the Hellenic Republic, Alexis Tsipras, the Prime Minister of the Italian Republic, Paolo Gentiloni, the Prime Minister of the Republic of Malta, Joseph Muscat and the Prime Minister of the Portuguese Republic, Antonio Costa.
PM Tsipras in his statement at the conclusion of the Summit said that the necessary steps towards a more forceful, social and democratic Europe, which can serve as a basic model in the world, had been discussed in Rome by the leaders of the countries of the South.
"It is a symbolic fact that the crisis ends with the exit of Greece from the fiscal adjustment programmes in August 2018 both practically and symbolically where it began, in the South.".
It was a meeting that gave new momentum to the project of a social Europe which will be the central debate at the upcoming extraordinary EU Summit. At the same time issues were raised with an eye on the European Councils of February and March, such as reform of the Eurozone focusing on the common budget, but also the revision of the Dublin Convention on the basis of solidarity.
"Europe's future can be bright only if we make the necessary and courageous steps towards the necessary reforms which Europe needs," he noted, pointing out that the Summit highlights the importance of gradually pursuing this initiative in a very crucial period for the future of the EU and the Eurozone.
He characterised 2018 as a "landmark" year for the end of the crisis in Europe and stressed the need for a fundamental debate on taking protective measures to prevent a repeat of the crisis.
"It is our common belief that we have taken very important steps to address international and regional challenges. However, only if it changes can Europe have a bright future for its citizens, but that is not enough; we must not repeat our errors; we need to anticipate the likely event of new crises."
He stressed that today's debate is necessary for Europe and the common future of the States which have the language of common principles and values and not the language of crisis. "Let us speak with the language of democracy, solidarity and unity, because, if there is something missing today from Europe, it is not fiscal adjustment rules and their application. If something is missing, it is the common rules for solidarity and convergence, social and economic ".
As regards the refugee issue, Alexis Tsipras noted that countries of the South which are receiving the flows of migrants are also the southern borders of the EU: "In this context it is not just the ability of Europe to manage a global challenge that is being tested, but also the very cohesion of the EU itself. The countries of the South must work for the implementation of an "effective common immigration policy with a view to effective border management but also solidarity especially towards countries that receive the largest flows".
He stressed that the EU must put its stamp of approval in favour of international law, of security and of resolving crises especially in the Mediterranean. At the same time he pointed out the necessity for the Aegean to be a sea of peace and cooperation, without threats, a place where international law will be respected by all of Greece’s neighbours.
The need for Economic and Monetary Union, for growth and new jobs, greater solidarity, democracy, participation of citizens were all referred to by the leaders of the Euro-Mediterranean countries of the South, undertaking to shape a common agenda of positions of the European South ahead of the discussions about the future of the EU and the Eurozone.
The Summit’s "host", the Italian Prime Minister Paolo Gentiloni, stated that "We are a team that believes in the future of Europe" and expressed the view that it is a positive moment for the seven countries to try to create a greater convergence within the EU: "We need an EU with greater cohesion, where the differences North and South will be reduced."
He pointed out that the countries of the european South know that they make up 47% of the EU budget and that they have their own voice, which is expressed in the positions on development and investment, the social pillar, common goals for the migration policy, while he did not fail to note that the EU also requires internal rules.
French President Macron described the role of the "team" of seven countries that share a common fate and a common geographic location as complementary to the other EU countries and not in competition with them. He concentrated on three points of convergence of the seven. For a more democratic Europe, "we must consult the citizens, this debate in Europe must be revitalised ."
He spoke about the necessity for the reconstruction of Europe. He mentioned the need to strengthen solidarity and to strengthen EU borders, "to respond to the inconsistencies of the Dublin Regulations".
As to the issue of Monetary Union, with a real European budget, he said that this is a key point for a more United Europe, "so we can have more growth, jobs and solidarity, all those things we have not had in recent years to respond to the crisis, and from which some countries suffered direct consequences ".
Cypriot President Nikos Anastasiades, announcing that the next meeting will be hosted in Cyprus no later than next March, agreed:
"Through the completion of Economic and Monetary Union, the creation of conditions for attracting investment that will lead to an increase in jobs will achieve the objective of greater prosperity for our peoples."
He noted that concerns remain regarding migration flows "which are shaped according to the choices of people traffickers". Solidarity, he said, demands the fullest possible support for the countries in the frontline of receiving migrants.
He noted that the continuation of the unsolved problem of Cyprus hinders the enhancement of a better Europe and reiterated the fixed objective of finding a mutually acceptable solution on the basis of the European acquis, for the creation of a truly independent country, far from guarantors, rights of intervention and armies of occupation.
He also said they had discussed the energy security issues of Europe, with himself informing the meeting about developments in Cyprus's Exclusive Economic Zone. "Discoveries in the area are a very important development and that with the pipeline East Med can offer a source of security to the EU ". He also pointed out the "violations that we are experiencing in the exercise of our sovereign rights as a result of illegal actions who unfortunately observed on the part of the Turkish side."
The Portuguese Prime Minister Antonio Costa said "We are meeting not to sparate ourselves from the E.U., but to help it, because we believe in a single E.U. that focuses on the needs of its citizens." He argued that there are conditions for better cooperation with regard to migratory flows, while he stressed the need to build growth and jobs, putting forward as priorities for investment in innovation, in the digital market and in energy.
He said that there should be consultation with regard to Monetary Union, referring to the importance of the EU having mechanisms that can deal with and prevent new crises. He added that only if our development models converge will long-lasting development be possible. "We believe in an even more democratic and united Europe," he concluded.
For his part, Spanish Prime Minister Mariano Rajoy said that the major objective should be the continuation of economic growth and job creation and that the seven countries converge on the objective of Monetary Union. He mentioned migration as the biggest challenge for the future of Europe, asking for the EU to help more on border controls."
"We want a more democratic Europe, where everyone participates," he said.
"We must understand how Europe can change the lives of its citizens," said the Prime Minister of Malta Joseph Muscat stating that the Declaration adopted by the meeting clearly shows "where we want to go".
National Council for Radio and Television begins new auction process
By Thursday, six media groups had applied for TV licences in Greece in the latest effort by Government to bring order to what it sees as a debt-ridden, unregulated broadcasting sector.
Licencing Greece’s television broadcasters has been one of SYRIZA’s major objectives, regarding them as “vampires” living on borrowed funds that they cannot repay.
The 2016 licence auction cut the number of nationwide broadcasters’s licences to four. But that was ruled unconstitutional by Greece’s top administrative court, the Council of State because the auction process had not been conducted by the independent regulator, the National Council for Radio and Television (NCRT).
Last year, the NCRT invited media groups to express their interest in seven 10-year licenses, at a starting price of 35€ million. “Six applications were submitted to the NCRT,” its website reported.
According to the tender announcement, if the final bidders were fewer than seven then each would be automatically granted a license -- provided they qualify. Any unallocated licenses would be re-tendered.
The six tenderers are SKAI TV, STAR channel, Alpha, Antenna, E TV and the newly-founded Tileoptiki Elliniki. All have already submitted a bid bond of 3.5€ million.
Greek state-owned broadcaster ERT already has a de facto licence.
The applications will be unsealed on Monday and reviewed by the NCRT which will then announce a list of which tenderers qualify.
Minister for Digital Policy Nikos Pappas expressed his satisfaction at the completion of the process for the six TV Licences.
"The National Council for Radio and Television has organised an impeccable procedure in a very short time. Very quickly we will move into a phase where the TV scene will be regulated and with prospects of growth in the advertising market, and on the basis of current legislation we shall have job growth in television."
"The television scene in Greece will begin to take the necessary steps for the future involving the latest technological developments. When there is the political will and the alertness and preparedness on the part of the regulators, everything is possible."
By Thursday, six media groups had applied for TV licences in Greece in the latest effort by Government to bring order to what it sees as a debt-ridden, unregulated broadcasting sector.
Licencing Greece’s television broadcasters has been one of SYRIZA’s major objectives, regarding them as “vampires” living on borrowed funds that they cannot repay.
The 2016 licence auction cut the number of nationwide broadcasters’s licences to four. But that was ruled unconstitutional by Greece’s top administrative court, the Council of State because the auction process had not been conducted by the independent regulator, the National Council for Radio and Television (NCRT).
Last year, the NCRT invited media groups to express their interest in seven 10-year licenses, at a starting price of 35€ million. “Six applications were submitted to the NCRT,” its website reported.
According to the tender announcement, if the final bidders were fewer than seven then each would be automatically granted a license -- provided they qualify. Any unallocated licenses would be re-tendered.
The six tenderers are SKAI TV, STAR channel, Alpha, Antenna, E TV and the newly-founded Tileoptiki Elliniki. All have already submitted a bid bond of 3.5€ million.
Greek state-owned broadcaster ERT already has a de facto licence.
The applications will be unsealed on Monday and reviewed by the NCRT which will then announce a list of which tenderers qualify.
Minister for Digital Policy Nikos Pappas expressed his satisfaction at the completion of the process for the six TV Licences.
"The National Council for Radio and Television has organised an impeccable procedure in a very short time. Very quickly we will move into a phase where the TV scene will be regulated and with prospects of growth in the advertising market, and on the basis of current legislation we shall have job growth in television."
"The television scene in Greece will begin to take the necessary steps for the future involving the latest technological developments. When there is the political will and the alertness and preparedness on the part of the regulators, everything is possible."
For Greece, 2018 is a crucial year.
“Things are looking better for Greece, having regained access to markets and with the recovery gathering speed,” Fabio Balboni, European Economist at HSBC Bank Plc in London, said in a January 4th note to clients. “In 2018, the country might finally exit its bailout programme, but a clean exit might prove challenging if the eurozone fails to deliver substantial and credible debt relief.”
Since 2010, Greece has had three lifelines from euro-area countries and the IMF with stringent conditions in terms of fiscal consolidation and structural reforms. It has also gone through two debt restructurings. In the next six to eight months, the Greek Government and the country’s creditors have to work through some thorny issues if they want to avert yet another bailout programme.
There are 10 crucial items on Greece’s calendar before the end of the bailout programme:
“Things are looking better for Greece, having regained access to markets and with the recovery gathering speed,” Fabio Balboni, European Economist at HSBC Bank Plc in London, said in a January 4th note to clients. “In 2018, the country might finally exit its bailout programme, but a clean exit might prove challenging if the eurozone fails to deliver substantial and credible debt relief.”
Since 2010, Greece has had three lifelines from euro-area countries and the IMF with stringent conditions in terms of fiscal consolidation and structural reforms. It has also gone through two debt restructurings. In the next six to eight months, the Greek Government and the country’s creditors have to work through some thorny issues if they want to avert yet another bailout programme.
There are 10 crucial items on Greece’s calendar before the end of the bailout programme:
- This week, the Government plans to submit to parliament a bill to implement all the measures needed to conclude the Third Bailout Assessment. The Multi-Bill must be voted on by January 17th so that auditors monitoring the programme can present Greece’s compliance report at the January 22nd Eurogroup meeting, which will then approve the disbursement of the next bailout tranche.
- In late January, European banking authorities will finalize the scenarios under which the balance sheets of Greek lenders will be stress-tested. The banks have to conclude these audits of their capital adequacy successfully.
- By early February, Greece intends to issue a new bond, with a maturity most likely of three or seven years, as part of its efforts to regain full market access.
- During the first 10 days of February, the European Stability Mechanism is expected to disburse the bailout tranche attached to the implementation of the Third Assessment’s conditions. The amount of money Greece will get has yet to be agreed on, but it will be at least 5.5€ billion, according to the Greek Finance Ministry.
- In February, Greek banks will start sending data to the National Bank of Greece and European authorities for the stress tests.
- In February the Greek Government expect its creditors to start discussing further debt relief measures.
- In early March, the Fourth Bailout Assessment is expected to begin. The Assessment has to start in March if Greece is to complete a forther 82 “measures” on time.
- In Washington on April 20th-22nd, the IMF’s spring meetings will give creditors the opportunity to discuss debt relief and what’s next for Greece.
- In early May, the stress test results will be announced. This will show if Greek lenders need more capital and, if so, how serious the problem is for them and for Greece.
- By the end of May or June, both the Greek Government and its creditors want to conclude the Fourth Bailout Assessment and reach agreement on the conditions for any further debt relief and the post-programme life for Greece.
The Directorate of Financial Crime Investigation
A new service - "The Directorate of Financial Crime Investigation " to combat the large-scale financial crime is to be based in the Ministry of Finance. It will have 135 Inspectors and report directly to the Minister of Finance and will be guided and coordinated by the Public Prosecutor for Financial Crime.
The service’s sole remit is the investigation to identify major tax crimes and any other relevant financial crimes which seriously damage the interests of the Greek State and the European Union.
New Democracy’s Kyriakos Mitsotakis slams nepotism and corruption
Both German and US media are calling the leader of New Democracy Kyriakos Mitsotakis a "star of the people" offering Greece "a glimmer of hope".
A sworn reformist, he slams nepotism and corruption. And yet that international praise ignores hard facts - such as the inclusion of his wife in the Paradise Papers tax avoidance / evasion scandal or his personal involvement in the biggest corruption scandal of the last 30 years in Greece - Siemens.
The Paradise Papers, an investigation by the International Consortium of Investigative Journalists (ICIJ) into the offshore world, have tarnished the reputation of politicians, sports idols and royals all around the globe.
But Greece, a firm favourite among new agencies when corruption is being discussed, has strangely avoided even the slightest media attention. Undeservingly so. Because in the latest round of leaks, one name stood out: Mareva Grabowski-Mitsotakis, the wife of Mr. Mitsotakis. She is one of 130 Greeks whose name shows up in the Paradise Papers.
Mrs. Grabowski-Mitsotakis owned 50% of Eternia Capital Management, an offshore company based in the Cayman Islands which managed a fund in the British Virgin Islands.
Mrs. Grabowski-Mitsotakis dismissed allegations of suspicious transactions, stressing that she "had little to do with the administrative aspect of the fund and was not aware of the specific legislation that applies in the Cayman Islands".
The party New Democracy dismissed the story as irrelevant.
It argued that Mr. Mitsotakis and his wife were separated at the time (before reuniting a few years later), therefore Mitsotakis had no legal obligation to declare his spouse's financial interests.
It is also the case that Mrs. Grabowski-Mitsotakis has a professional life of her own: formerly, she was an executive at Deutsche Bank, and she now runs her own business.
However, an important question remains unanswered: what was the motive of the setup of this double offshore structure? There's no evidence that Mrs. Grabowski-Mitsotakis has broken any law or that Mitsotakis himself was involved in any of this. However, a coincidence does link Mrs. Grabowski-Mitsotakis's offshore arrangements back to her husband’s New Democracy.
Back in 2012, Stavros Papastavrou, Mrs. Grabowski-Mitsotakis' lawyer, at the same time as dealing with Eternia on behalf of Mrs. Grabowski-Mitsotakis, held a top position, first inside the New Democracy party (where he was Director of International Relations) and then inside the Government as Greece's top negotiator on tax haven issues.
In fact, he was Greece's envoy in talks with the Swiss authorities regarding Greek bank accounts.
For his involvement in a separate case, the Swiss leaks/HSBC affair (called the Lagarde List), Mr. Papastavrou paid a fine of 3.5€ million to settle tax evasion and money-laundering charges.
No news outlet outside Greece has picked up this particular Paradise Papers story.
Before the Paradise Papers, there was Siemens
According to evidence presented in judicial procedures in Germany, the USA and Greece, German multinational Siemens routinely bribed politicians in PASOK and New Democracy to the tune of hundreds of millions of euros in order to secure lucrative state contracts.
In 2008 Mr. Mitsotakis he was caught accepting for free Siemens telecoms equipment to a value of €137,000. He paid for this later, after witnesses testified about the presents before prosecutors. Similar "presents" were given to the whole Mitsotakis family, including his wife Mareva, according to invoices provided during the Siemens court case and on the testimony of Michael Christoforakos' [the former head of Siemens Greece Ed] personal secretary, Ekaterini Tsakalou.
Court evidence shows Mr. Mitsotakis maintained a more-than-close relationship with Michael Christoforakos, who has evaded his bribery trial in Greece by returning to Germany. The Court was told that Mr. Christoforakos had contact (either in person or by phone) with the Mitsotakis family on 356 occasions. This amounts to 60% of the total number of such contacts he had with all political figures at the time. This and other facts linking Kyriakos Mitsotakis to the Siemens scandal have been out in the public for almost a decade.
Since his election as leader of New Democracy, four profiles or interviews have been published by some of Germany's biggest papers (Frankfurter Allgemeine Zeitung, Sueddeutsche Zeitung, Die Taz, Die Welt); not one of them even mentions Siemens.
Recently Mr.Mitsotakis has taken to slamming clientelism and nepotism. While Mr. Mitsotakis campaigns for a smaller state, several members of his family are being remunerated by this "fat" Greek state. He is, after all, the heir of one of Greece’s biggest political dynasties with political roots dating back to the 19th century.
Kyriakos Mitsotakis' father, Constantine Mitsotakis was Prime Minister in the 1990s.
The Constantine Mitsotakis Foundation, with three family members on its Board, has been generously funded by the state to the tune of millions of euros.
Three members of the core family are active on the main political scene: besides Kyriakos Mitsotakis, his sister, Dora Bakoyannis is a former foreign minister and currently an MP; and Kostas Bakoyannis, nephew of Kyriakos, is a regional governor of Central Greece.
A new service - "The Directorate of Financial Crime Investigation " to combat the large-scale financial crime is to be based in the Ministry of Finance. It will have 135 Inspectors and report directly to the Minister of Finance and will be guided and coordinated by the Public Prosecutor for Financial Crime.
The service’s sole remit is the investigation to identify major tax crimes and any other relevant financial crimes which seriously damage the interests of the Greek State and the European Union.
New Democracy’s Kyriakos Mitsotakis slams nepotism and corruption
Both German and US media are calling the leader of New Democracy Kyriakos Mitsotakis a "star of the people" offering Greece "a glimmer of hope".
A sworn reformist, he slams nepotism and corruption. And yet that international praise ignores hard facts - such as the inclusion of his wife in the Paradise Papers tax avoidance / evasion scandal or his personal involvement in the biggest corruption scandal of the last 30 years in Greece - Siemens.
The Paradise Papers, an investigation by the International Consortium of Investigative Journalists (ICIJ) into the offshore world, have tarnished the reputation of politicians, sports idols and royals all around the globe.
But Greece, a firm favourite among new agencies when corruption is being discussed, has strangely avoided even the slightest media attention. Undeservingly so. Because in the latest round of leaks, one name stood out: Mareva Grabowski-Mitsotakis, the wife of Mr. Mitsotakis. She is one of 130 Greeks whose name shows up in the Paradise Papers.
Mrs. Grabowski-Mitsotakis owned 50% of Eternia Capital Management, an offshore company based in the Cayman Islands which managed a fund in the British Virgin Islands.
Mrs. Grabowski-Mitsotakis dismissed allegations of suspicious transactions, stressing that she "had little to do with the administrative aspect of the fund and was not aware of the specific legislation that applies in the Cayman Islands".
The party New Democracy dismissed the story as irrelevant.
It argued that Mr. Mitsotakis and his wife were separated at the time (before reuniting a few years later), therefore Mitsotakis had no legal obligation to declare his spouse's financial interests.
It is also the case that Mrs. Grabowski-Mitsotakis has a professional life of her own: formerly, she was an executive at Deutsche Bank, and she now runs her own business.
However, an important question remains unanswered: what was the motive of the setup of this double offshore structure? There's no evidence that Mrs. Grabowski-Mitsotakis has broken any law or that Mitsotakis himself was involved in any of this. However, a coincidence does link Mrs. Grabowski-Mitsotakis's offshore arrangements back to her husband’s New Democracy.
Back in 2012, Stavros Papastavrou, Mrs. Grabowski-Mitsotakis' lawyer, at the same time as dealing with Eternia on behalf of Mrs. Grabowski-Mitsotakis, held a top position, first inside the New Democracy party (where he was Director of International Relations) and then inside the Government as Greece's top negotiator on tax haven issues.
In fact, he was Greece's envoy in talks with the Swiss authorities regarding Greek bank accounts.
For his involvement in a separate case, the Swiss leaks/HSBC affair (called the Lagarde List), Mr. Papastavrou paid a fine of 3.5€ million to settle tax evasion and money-laundering charges.
No news outlet outside Greece has picked up this particular Paradise Papers story.
Before the Paradise Papers, there was Siemens
According to evidence presented in judicial procedures in Germany, the USA and Greece, German multinational Siemens routinely bribed politicians in PASOK and New Democracy to the tune of hundreds of millions of euros in order to secure lucrative state contracts.
In 2008 Mr. Mitsotakis he was caught accepting for free Siemens telecoms equipment to a value of €137,000. He paid for this later, after witnesses testified about the presents before prosecutors. Similar "presents" were given to the whole Mitsotakis family, including his wife Mareva, according to invoices provided during the Siemens court case and on the testimony of Michael Christoforakos' [the former head of Siemens Greece Ed] personal secretary, Ekaterini Tsakalou.
Court evidence shows Mr. Mitsotakis maintained a more-than-close relationship with Michael Christoforakos, who has evaded his bribery trial in Greece by returning to Germany. The Court was told that Mr. Christoforakos had contact (either in person or by phone) with the Mitsotakis family on 356 occasions. This amounts to 60% of the total number of such contacts he had with all political figures at the time. This and other facts linking Kyriakos Mitsotakis to the Siemens scandal have been out in the public for almost a decade.
Since his election as leader of New Democracy, four profiles or interviews have been published by some of Germany's biggest papers (Frankfurter Allgemeine Zeitung, Sueddeutsche Zeitung, Die Taz, Die Welt); not one of them even mentions Siemens.
Recently Mr.Mitsotakis has taken to slamming clientelism and nepotism. While Mr. Mitsotakis campaigns for a smaller state, several members of his family are being remunerated by this "fat" Greek state. He is, after all, the heir of one of Greece’s biggest political dynasties with political roots dating back to the 19th century.
Kyriakos Mitsotakis' father, Constantine Mitsotakis was Prime Minister in the 1990s.
The Constantine Mitsotakis Foundation, with three family members on its Board, has been generously funded by the state to the tune of millions of euros.
Three members of the core family are active on the main political scene: besides Kyriakos Mitsotakis, his sister, Dora Bakoyannis is a former foreign minister and currently an MP; and Kostas Bakoyannis, nephew of Kyriakos, is a regional governor of Central Greece.
The Citizens’ Register
The Citizens’ Register is due to go online on Monday, January 22nd with the aim of reducing bureaucracy by making it much easier for people to obtain documents that prove their identity.
The new register will be created by linking 1,036 registry offices and 325 municipal registries electronically.
This means that citizens will no longer need to go to town halls or Citizens’ Service Centres (KEPs) to obtain personal documents as these will be available to other public agencies online.
The Interior Ministry, which is overseeing the process, said that the goal is to “simplify and speed up the processes and to limit needless bureaucracy by reducing the amount of signatures needed and relieving citizens of the need to produce multiple documents for simple administrative procedures.”
The Citizens’ Register is due to go online on Monday, January 22nd with the aim of reducing bureaucracy by making it much easier for people to obtain documents that prove their identity.
The new register will be created by linking 1,036 registry offices and 325 municipal registries electronically.
This means that citizens will no longer need to go to town halls or Citizens’ Service Centres (KEPs) to obtain personal documents as these will be available to other public agencies online.
The Interior Ministry, which is overseeing the process, said that the goal is to “simplify and speed up the processes and to limit needless bureaucracy by reducing the amount of signatures needed and relieving citizens of the need to produce multiple documents for simple administrative procedures.”
“2018 – a watershed year
for the country”
PM Alexis Tsipras’ New Year Message
6.1.2018
"After almost eight years, we are finally exiting the Memoranda and have a breathing space. The time that is coming it will be a landmark time for the country and the people, leaving behind the era of the stewardship, harsh measures and humiliations," stressed the Prime Minister in his televised New Year's Eve message.
The Prime Minister referred to the "sacrifices of the Greek people in the battle that the Government waged in 2017 to get the country out of the crisis with the society standing on its own two feet" and he gave assurances that 2018 will not be 2008, we will not return to the regime that gave birth to the Greek tragedy.
2018 – a watershed year for the country
"At the dawn of the new year we usually share our hopes, aspirations, wishes, and dreams for the future," said Alexis Tsipras
"Today, however, let me share with you one certainty: the coming year will be a milestone year for the country. After an almost eight-year period, we are finally emerging from the Memoranda and have a breathing space. We are leaving behind us the era of stewardship, the harsh measures and the humiliations. And that's a great reason for optimism that 2018 will be a good year for our country and for our people."
The Prime Minister recalled that for us to get here, our people had to submit to great sacrifices, but the Government put up a tough fight. " Millions of people had to put up their own fight so that we could escape from the swamp. But from our side, a tough battle had to be and is having to be waged on two fronts. On the front of the negotiations on the one hand, against the extremists among the creditors. But also on the domestic front, against the diseases, the distortions, the cronyism, the party clientelism, the vested interests and the corruption, against everything that has held us immobilised for years."
He also emphasized that it is not his intention to celebrate, because he knows, like everyone, how many problems still lie ahead of us and how much effort it is taking for growth to reach from statistics to people and to each household. "I also know, however, and each of us should know, that we have left the dark times behind. The regime which was imposed on the country in 2010, finally ends in 2018."
2018 will not be 2008
"At the same time another certainty is that 2018 will not be and must not be 2008. We must not go back and we will not go back to the regime that gave birth to the Greek tragedy - to growth for the few and the crumbs for the many; to the interweaving of political power and economic power, and to the old powerful families that undermined the economy, democracy and the country."
Referring to 2017, the Prime Minister said that the Government put up a tough fight to extricate Greece from the crisis, with society standing on its own two feet and added: "We also gave, however, a graphic example of a different politics. A politics that puts the interests of the country and of the many above the interests of a privileged oligarchy".
These policies of the Government have produced tangible results, stated the Prime Minister and said:
-The economy has again started to move forward, as all the data show.
-Unemployment has been markedly reduced.
-Greece has found again its position on the international scene. It is no longer a cause of problems, but is a catalyst for solutions, while hope and optimism are returning, timidly but steadily, to our society, a society tortured by the harsh measures.
-The social dividend has given a breathing space to millions of our fellow citizens.
-The welfare State is making steps forward, despite the financial difficulties.
-Reforms in Health, in Education, in the public administration, are proceeding with determination and despite the reactions of the old political elite.
Development with social justice
"We will continue with these policies. With new strength, but also with the new possibilities that the end of stewardship brings. Because growth without social justice has neither depth nor vision; it does not even make sense. Because inequality is not a law of nature. It is a result of that policy which agitates for destruction today to achieve restoration tomorrow. But we will not let that happen. We will not let Greece go back."
Finally, Alexis Tsipras wished everyone " a creative, peaceful, and happy 2018, with optimism, with the certainty that Greece is embarking on the road of democratic normality, economic progress, equality and justice, but also with the awareness that nothing will be handed to us unless we claim it with hard work and our struggle."
Alexis Tsipras again ruled out an early general election
Speaking later on Greek radio about his expectations for the year ahead, PM Tsipras stressed that the country is regaining its place in the international landscape, along with its economic autonomy.
Speaking to Real FM radio station, PM Tsipras said he expected 2018 to be “a year that will bring back lost hope”. “A new era for Greece will begin with the expiry of the Greek bailout programme in August 2018 that will signify the end of the diseases afflicting Greece’s economy in order to avoid falling back into a “vicious circle”.
Elaborating his vision for the future of the economy, the PM said Greece must learn from the bailout years and the “tragedy” it went through so that it never loses control of its finances again and emerges from the crisis stronger. He went on to say that a continuous struggle is underway to reform the country’s production model, stamp out corruption and deliver justice.
Alexis Tsipras yet again ruled out the prospect of an early general election, while also accusing the opposition of spreading propaganda and not desiring the end of the bailout but the restoration of the old regime instead.
“Elections will not happen in 2018, but in 2019 at the end of our term of office, as stipulated by the Constitution. And this is because not only will comparisons be more favorable with respect to where we were and the state of the country we will deliver, but mainly because the country needs to restore the trust of its partners, and therefore needs political stability which the Government can provide.”
The Prime Minister referred to the "sacrifices of the Greek people in the battle that the Government waged in 2017 to get the country out of the crisis with the society standing on its own two feet" and he gave assurances that 2018 will not be 2008, we will not return to the regime that gave birth to the Greek tragedy.
2018 – a watershed year for the country
"At the dawn of the new year we usually share our hopes, aspirations, wishes, and dreams for the future," said Alexis Tsipras
"Today, however, let me share with you one certainty: the coming year will be a milestone year for the country. After an almost eight-year period, we are finally emerging from the Memoranda and have a breathing space. We are leaving behind us the era of stewardship, the harsh measures and the humiliations. And that's a great reason for optimism that 2018 will be a good year for our country and for our people."
The Prime Minister recalled that for us to get here, our people had to submit to great sacrifices, but the Government put up a tough fight. " Millions of people had to put up their own fight so that we could escape from the swamp. But from our side, a tough battle had to be and is having to be waged on two fronts. On the front of the negotiations on the one hand, against the extremists among the creditors. But also on the domestic front, against the diseases, the distortions, the cronyism, the party clientelism, the vested interests and the corruption, against everything that has held us immobilised for years."
He also emphasized that it is not his intention to celebrate, because he knows, like everyone, how many problems still lie ahead of us and how much effort it is taking for growth to reach from statistics to people and to each household. "I also know, however, and each of us should know, that we have left the dark times behind. The regime which was imposed on the country in 2010, finally ends in 2018."
2018 will not be 2008
"At the same time another certainty is that 2018 will not be and must not be 2008. We must not go back and we will not go back to the regime that gave birth to the Greek tragedy - to growth for the few and the crumbs for the many; to the interweaving of political power and economic power, and to the old powerful families that undermined the economy, democracy and the country."
Referring to 2017, the Prime Minister said that the Government put up a tough fight to extricate Greece from the crisis, with society standing on its own two feet and added: "We also gave, however, a graphic example of a different politics. A politics that puts the interests of the country and of the many above the interests of a privileged oligarchy".
These policies of the Government have produced tangible results, stated the Prime Minister and said:
-The economy has again started to move forward, as all the data show.
-Unemployment has been markedly reduced.
-Greece has found again its position on the international scene. It is no longer a cause of problems, but is a catalyst for solutions, while hope and optimism are returning, timidly but steadily, to our society, a society tortured by the harsh measures.
-The social dividend has given a breathing space to millions of our fellow citizens.
-The welfare State is making steps forward, despite the financial difficulties.
-Reforms in Health, in Education, in the public administration, are proceeding with determination and despite the reactions of the old political elite.
Development with social justice
"We will continue with these policies. With new strength, but also with the new possibilities that the end of stewardship brings. Because growth without social justice has neither depth nor vision; it does not even make sense. Because inequality is not a law of nature. It is a result of that policy which agitates for destruction today to achieve restoration tomorrow. But we will not let that happen. We will not let Greece go back."
Finally, Alexis Tsipras wished everyone " a creative, peaceful, and happy 2018, with optimism, with the certainty that Greece is embarking on the road of democratic normality, economic progress, equality and justice, but also with the awareness that nothing will be handed to us unless we claim it with hard work and our struggle."
Alexis Tsipras again ruled out an early general election
Speaking later on Greek radio about his expectations for the year ahead, PM Tsipras stressed that the country is regaining its place in the international landscape, along with its economic autonomy.
Speaking to Real FM radio station, PM Tsipras said he expected 2018 to be “a year that will bring back lost hope”. “A new era for Greece will begin with the expiry of the Greek bailout programme in August 2018 that will signify the end of the diseases afflicting Greece’s economy in order to avoid falling back into a “vicious circle”.
Elaborating his vision for the future of the economy, the PM said Greece must learn from the bailout years and the “tragedy” it went through so that it never loses control of its finances again and emerges from the crisis stronger. He went on to say that a continuous struggle is underway to reform the country’s production model, stamp out corruption and deliver justice.
Alexis Tsipras yet again ruled out the prospect of an early general election, while also accusing the opposition of spreading propaganda and not desiring the end of the bailout but the restoration of the old regime instead.
“Elections will not happen in 2018, but in 2019 at the end of our term of office, as stipulated by the Constitution. And this is because not only will comparisons be more favorable with respect to where we were and the state of the country we will deliver, but mainly because the country needs to restore the trust of its partners, and therefore needs political stability which the Government can provide.”
Ecotax to “change the behaviour of consumers”
As from Monday January 1st 2018, Greece introduced an ecotax of four euro cents on each plastic bag supplied by shops in order to reduce the use of polythene bags and tackle the pollution of non- biodegradable material.
From January 1st 2019, the ecotax will be increased to 9 euro cents. At the same time, the recycling of the plastic bags and the use of reusable cloth bags and other eco-friendly alternatives will be promoted.
"The plastic bag must be removed from our habitual consumption. We are seeking to change the behaviour of consumers so that they, as citizens, will understand the environmental consequences," Greek Deputy Minister of Environment and Energy, Socrates Famellos said.
According to the report by the Greek Environment Ministry, plastic bag usage is twice the European average. Plastic bags make up half of the waste in Greece’s waters.
Athens aims to reduce the use of plastic bags per person by 75% by the end of 2020 and by 90% per person by 2025, in accordance with the 2015 EU directives.
As from Monday January 1st 2018, Greece introduced an ecotax of four euro cents on each plastic bag supplied by shops in order to reduce the use of polythene bags and tackle the pollution of non- biodegradable material.
From January 1st 2019, the ecotax will be increased to 9 euro cents. At the same time, the recycling of the plastic bags and the use of reusable cloth bags and other eco-friendly alternatives will be promoted.
"The plastic bag must be removed from our habitual consumption. We are seeking to change the behaviour of consumers so that they, as citizens, will understand the environmental consequences," Greek Deputy Minister of Environment and Energy, Socrates Famellos said.
According to the report by the Greek Environment Ministry, plastic bag usage is twice the European average. Plastic bags make up half of the waste in Greece’s waters.
Athens aims to reduce the use of plastic bags per person by 75% by the end of 2020 and by 90% per person by 2025, in accordance with the 2015 EU directives.
Islands to produce own medical oxygen
Deputy Minister of Economy and Development, Alexis Charitsis has signed off a project to create facilities for manufacturing medical oxygen in the hospitals of the Islands at a cost of 1.8€ million.
Medical oxygen units will be established in hospitals on the islands of Rhodes, Lesbos, Samos and Leros making a decisive contribution to the reduction in a very significant item of expenditure.
Five years ago the European Pharmacopoeia set the standard of 93% purity for oxygen to be suitable for medical purposes.
Today the average cost of producing oxygen from units located in medical centres is 0.26€ per cubic metre, as opposed to the purchase of oxygen which today costs 0.67€ per cubic metre plus shipping costs. The average transport costs for transporting gas to most islands is 2€ per cubic metre, which dramatically increases the costs of medical centres in the Aegean Islands procuring medical oxygen.
Deputy Minister of Economy and Development, Alexis Charitsis has signed off a project to create facilities for manufacturing medical oxygen in the hospitals of the Islands at a cost of 1.8€ million.
Medical oxygen units will be established in hospitals on the islands of Rhodes, Lesbos, Samos and Leros making a decisive contribution to the reduction in a very significant item of expenditure.
Five years ago the European Pharmacopoeia set the standard of 93% purity for oxygen to be suitable for medical purposes.
Today the average cost of producing oxygen from units located in medical centres is 0.26€ per cubic metre, as opposed to the purchase of oxygen which today costs 0.67€ per cubic metre plus shipping costs. The average transport costs for transporting gas to most islands is 2€ per cubic metre, which dramatically increases the costs of medical centres in the Aegean Islands procuring medical oxygen.
Greece tops ESPA Absorption Rates in the EU –again!
30.12.2017
Greece has again topped the list of EU Countries in its success in absorbing the resources of the new ΕΣΠΑ, following the full utilization of the funds of the previous programming period (2007-2013).
"Our first concern at the Finance Ministry is the channelling of substantial liquidity into the economy and ensuring sufficient funding for the implementation of the necessary infrastructure and support for businesses" stressed Deputy Finance Minister Alexis Charitsis.
"Our effort has yielded to the Greek economy more than 11€ billion over the last three year period, while, thanks to the very close cooperation that we have developed with the European Investment Bank, we brought a large amount of new capital into the economy."
For 2018, Mr. Charitsis confirmed that the Government is continuing with greater intensity in the same direction, "with more programmes to support businesses and municipalities, but also with new targeted financial tools for the more efficient support of a number of sectors of the economy."
"In the case of absorption of resources of ESPA, Greece up to the end of 2017 has absorbed 25% of the resources of the new ESPA Programme (2014-2020), achieving the highest absorption in Europe. For a comparison, the absorption rate achieved by the Governments of New Democracy and PASOK at the corresponding point (2009) of the previous programming period (ESPA 2007-2013) was just 1.5%."
"Thanks to this effort a multitude of small and large projects have been implemented across the country. Infrastructure critical to the health and quality of life of citizens, such as the water systems of the city of Heraklion and Corfu, the biological purification of Lake Pamvotis in Ioannina. Projects that should have been implemented decades ago.
With these resources, there have also been significant interventions in the social sector and vulnerable social groups have been supported. For the second consecutive year all associate teachers have been recruited in a timely manner and schools opened on time. More than 108,000 children found places in nursery schools and kindergartens without any financial burden on their parents. The great reform in Healthcare is being funded, with the creation, for the first time in Greece, of integrated primary health structures (TOMY).”
"Our first concern at the Finance Ministry is the channelling of substantial liquidity into the economy and ensuring sufficient funding for the implementation of the necessary infrastructure and support for businesses" stressed Deputy Finance Minister Alexis Charitsis.
"Our effort has yielded to the Greek economy more than 11€ billion over the last three year period, while, thanks to the very close cooperation that we have developed with the European Investment Bank, we brought a large amount of new capital into the economy."
For 2018, Mr. Charitsis confirmed that the Government is continuing with greater intensity in the same direction, "with more programmes to support businesses and municipalities, but also with new targeted financial tools for the more efficient support of a number of sectors of the economy."
"In the case of absorption of resources of ESPA, Greece up to the end of 2017 has absorbed 25% of the resources of the new ESPA Programme (2014-2020), achieving the highest absorption in Europe. For a comparison, the absorption rate achieved by the Governments of New Democracy and PASOK at the corresponding point (2009) of the previous programming period (ESPA 2007-2013) was just 1.5%."
"Thanks to this effort a multitude of small and large projects have been implemented across the country. Infrastructure critical to the health and quality of life of citizens, such as the water systems of the city of Heraklion and Corfu, the biological purification of Lake Pamvotis in Ioannina. Projects that should have been implemented decades ago.
With these resources, there have also been significant interventions in the social sector and vulnerable social groups have been supported. For the second consecutive year all associate teachers have been recruited in a timely manner and schools opened on time. More than 108,000 children found places in nursery schools and kindergartens without any financial burden on their parents. The great reform in Healthcare is being funded, with the creation, for the first time in Greece, of integrated primary health structures (TOMY).”
Bank of Greece Report on Tax Evasion and the Underground Economy
“Previous Greek Governments, made up of New Democracy and PASOK in the main imposed unbearable taxes on citizens, while leaving the country at the mercy of tax evasion and the underground economy,” stated the interim report of the Governor of the Bank of Greece, Giannis Stournaras, which showed that 15€ billion could have been saved in the Treasury of the Greek state, if the underground economy and tax evasion had been fought against, instead of past governments' choices to increase taxes in order to achieve the Primary Surplus financial goals demanded by the country’s creditors.
Taking the reference period 2010-15, the premiss is that Greece entered the Memoranda with the underground economy and tax evasion together accounting for 25% of GDP.
The report suggests that if tax evasion and the underground economy had been dealt with effectively and there had been no tax increases instead, the result would have been a recession of less than seven percentage points of the GDP. With the underground economy at 25% of GDP, each increase in tax revenue by 1% results in a 2.8% reduction in the Gross Domestic Product but just a 1.5% reduction in the absence of an underground economy.
Moreover, the Report’s analysis shows that tax increases of 1% lead to a shift of production and employment from the official to the underground economy by 1.3% and 1.4%, respectively. As a result, tax revenues are reduced and higher increases in tax rates are required to reach budgetary targets.
“This creates a vicious circle of constant tax rate increases and constant expansion of the underground economy leading to a further shrinking of official production activity.
In addition, to increase income tax revenue by one percentage point of GDP, it is necessary to increase the tax rate by two percentage points when there is no underground economy, as against a required increase of three percentage points when an underground economy exists.
Greece has one of the highest rates of underground economy in the European Union. It is estimated that the underground economy in Greece, in the period 2003-2015, averaged 25% of the GDP, compared with 19% on average in the Euro area and 20% across the EU.”
“Previous Greek Governments, made up of New Democracy and PASOK in the main imposed unbearable taxes on citizens, while leaving the country at the mercy of tax evasion and the underground economy,” stated the interim report of the Governor of the Bank of Greece, Giannis Stournaras, which showed that 15€ billion could have been saved in the Treasury of the Greek state, if the underground economy and tax evasion had been fought against, instead of past governments' choices to increase taxes in order to achieve the Primary Surplus financial goals demanded by the country’s creditors.
Taking the reference period 2010-15, the premiss is that Greece entered the Memoranda with the underground economy and tax evasion together accounting for 25% of GDP.
The report suggests that if tax evasion and the underground economy had been dealt with effectively and there had been no tax increases instead, the result would have been a recession of less than seven percentage points of the GDP. With the underground economy at 25% of GDP, each increase in tax revenue by 1% results in a 2.8% reduction in the Gross Domestic Product but just a 1.5% reduction in the absence of an underground economy.
Moreover, the Report’s analysis shows that tax increases of 1% lead to a shift of production and employment from the official to the underground economy by 1.3% and 1.4%, respectively. As a result, tax revenues are reduced and higher increases in tax rates are required to reach budgetary targets.
“This creates a vicious circle of constant tax rate increases and constant expansion of the underground economy leading to a further shrinking of official production activity.
In addition, to increase income tax revenue by one percentage point of GDP, it is necessary to increase the tax rate by two percentage points when there is no underground economy, as against a required increase of three percentage points when an underground economy exists.
Greece has one of the highest rates of underground economy in the European Union. It is estimated that the underground economy in Greece, in the period 2003-2015, averaged 25% of the GDP, compared with 19% on average in the Euro area and 20% across the EU.”
“Relations between Greece and Turkey are not a bilateral issue”
Alexis Tsipras at the Council of Europe
23.12.2017
“The European pillar of social rights is crucial and must be implemented,” said PM Tsipras at last Friday’s meeting of the Council of Europe.
“The social dimension is a necessary condition for a United Europe. The social pillar will balance budgetary agreements. The coordination of economic and budgetary policies should include binding social goals.”
On the issue of refugees, the PM stressed that, for Greece, the important thing is not whether some countries accommodate 200 or 1,000 refugees, but that they persist in undermining the principles on which the EU is based.
He stressed that Greece respects EU rules and the sensitivities of other Member States and complies with European solidarity, although it disagreed with a series of policies on the economy (austerity), but also on foreign policy (sanctions against third countries). All Member States should do the same today to address this european issue, he insisted.
On the issue of funding, he agreed that the financial instruments (possibly also new ones) should be made more flexible in order to respond to today's realities and to enable third countries to absorb the funding. The issue is not only more money but to connect up our goals on immigration to EU foreign policy.
Alexis Tsipras noted that funding for third countries should be related to their effectiveness in dealing with the networks of traffickers, the reduction of migrant flows and the acceptance of returnees. He stressed that major initiatives must be undertaken to address the root causes of refugee and migration flows (poverty, wars) and for these to be included in an upgrading of foreign and defence policy.
At the same time, the Prime Minister added that we should establish a European return mechanism should be established and a European resettlement mechanism set up with applications centres in third countries of transit and origin.
“Relations between Greece and Turkey are not a bilateral issue”
He emphasized that issues around migration were one of the main reasons for the invitation to the Turkish President to visit Athens, despite all the national and ideological differences. He pointed out that while the region is submerged in destabilisation (Syria, Iraq, Afghanistan, Palestine, Lebanon, Jerusalem, the attempted coup in Turkey, human rights restrictions, the Kurdish question) Greek-Turkish relations cannot be considered simply as a bilateral issue.
"It is a question of maintaining the Southeast European borders which have become increasingly important. European security and the management of refugee and migratory flows are based on smooth relations between Greece and Turkey."
“The social dimension is a necessary condition for a United Europe. The social pillar will balance budgetary agreements. The coordination of economic and budgetary policies should include binding social goals.”
On the issue of refugees, the PM stressed that, for Greece, the important thing is not whether some countries accommodate 200 or 1,000 refugees, but that they persist in undermining the principles on which the EU is based.
He stressed that Greece respects EU rules and the sensitivities of other Member States and complies with European solidarity, although it disagreed with a series of policies on the economy (austerity), but also on foreign policy (sanctions against third countries). All Member States should do the same today to address this european issue, he insisted.
On the issue of funding, he agreed that the financial instruments (possibly also new ones) should be made more flexible in order to respond to today's realities and to enable third countries to absorb the funding. The issue is not only more money but to connect up our goals on immigration to EU foreign policy.
Alexis Tsipras noted that funding for third countries should be related to their effectiveness in dealing with the networks of traffickers, the reduction of migrant flows and the acceptance of returnees. He stressed that major initiatives must be undertaken to address the root causes of refugee and migration flows (poverty, wars) and for these to be included in an upgrading of foreign and defence policy.
At the same time, the Prime Minister added that we should establish a European return mechanism should be established and a European resettlement mechanism set up with applications centres in third countries of transit and origin.
“Relations between Greece and Turkey are not a bilateral issue”
He emphasized that issues around migration were one of the main reasons for the invitation to the Turkish President to visit Athens, despite all the national and ideological differences. He pointed out that while the region is submerged in destabilisation (Syria, Iraq, Afghanistan, Palestine, Lebanon, Jerusalem, the attempted coup in Turkey, human rights restrictions, the Kurdish question) Greek-Turkish relations cannot be considered simply as a bilateral issue.
"It is a question of maintaining the Southeast European borders which have become increasingly important. European security and the management of refugee and migratory flows are based on smooth relations between Greece and Turkey."
Renewable Energy in Greece
The European Investment Bank (EIB) has advanced to Greece greater funding than ever before in the field of renewable sources of energy by entering into a contract for financing a loan of 85€ million with the ΔΕΗ Renewables.
Specifically, the contract signed on behalf of the EIB by Mr Nicholas Jennett, Deputy Director and Head of the Investment Group to Greece, and Mr. Manolis Panagiotakis, Chairman of the Board, and CEO Mr. Elias Monacholias on behalf of ΔΕΗ Renewables.
The new renewable energy programme will provide investment in small wind farms in various regions of the country, including the islands of Cephalonia, Chios, Lesbos, Crete, Mykonos, Samos, Evia, Lemnos, Karpathos, Ikaria, Tinos and Psaros, and in Kardítsa on mainland Greece.
The programme includes repowering existing wind farms, some of which have been operating for more than 25 years, as well as the construction of small wind farms in new areas. In addition it will support the restoration of two old small hydropower plants – a station in Arta and one in Vermio in northern Greece – as well as the construction of two new small hydropower stations – one in Smokovo and one in Makrochori in Central Greece.
Once the programme is completed, by the end of 2019, the production of renewable energy in Greece will be increased by 90 MW and will contribute significantly to the achievement of both national and European targets for renewable energy projects. The design, construction and operation of individual projects is expected to be completed within the next two years.
The expansion of the use of renewable energy sources is a strategic priority of the ΔΕΗ Group and the new cooperation between ΔΕΗ Renewables and the EIB will help the ΔΕΗ Group to achieve its strategic goal to become a major supplier of green energy in Greece. New investments for the improvement of existing and the construction of new wind farms will boost energy self-sufficiency, will create new job opportunities and will bring benefits to local communities.
Mr. Jonathan Taylor, Vice-President of the European Investment Bank, said: "The new investment in renewable energy is critical to reducing carbon dioxide emissions and to support investments in this area. It is a priority for both the Greek Government and the European Investment Bank."
Mr Manolis Panagiotakis, Chairman of the Board of Directors of ΔΕΗ Renewables, said: "This loan will boost the production of electricity from renewable energy sources in mainland Greece and the Greek Islands. It will also contribute to a change in the energy mix produced at group level of the ΔΕΗ and will make the supply of energy in Greece more sustainable and safer."
Mr. Elias Monacholias, CEO of ΔΕΗ Renewables, said: "Today ΔΕΗ Renewables enters a new era, as it is the first time that the company has signed a loan agreement for the financing of a total of 18 projects in the field of renewable sources of energy. The loan granted by the European Investment Bank, on favourable terms compared to the normal interest rates for lending to businesses, is very important for the ΔΕΗ Renewables because it will allow the full restoration of old wind farms and small hydropower plants and building new capacity. We look forward to our cooperation with the EIB and the success of this cooperation."
The European Investment Bank (EIB) has advanced to Greece greater funding than ever before in the field of renewable sources of energy by entering into a contract for financing a loan of 85€ million with the ΔΕΗ Renewables.
Specifically, the contract signed on behalf of the EIB by Mr Nicholas Jennett, Deputy Director and Head of the Investment Group to Greece, and Mr. Manolis Panagiotakis, Chairman of the Board, and CEO Mr. Elias Monacholias on behalf of ΔΕΗ Renewables.
The new renewable energy programme will provide investment in small wind farms in various regions of the country, including the islands of Cephalonia, Chios, Lesbos, Crete, Mykonos, Samos, Evia, Lemnos, Karpathos, Ikaria, Tinos and Psaros, and in Kardítsa on mainland Greece.
The programme includes repowering existing wind farms, some of which have been operating for more than 25 years, as well as the construction of small wind farms in new areas. In addition it will support the restoration of two old small hydropower plants – a station in Arta and one in Vermio in northern Greece – as well as the construction of two new small hydropower stations – one in Smokovo and one in Makrochori in Central Greece.
Once the programme is completed, by the end of 2019, the production of renewable energy in Greece will be increased by 90 MW and will contribute significantly to the achievement of both national and European targets for renewable energy projects. The design, construction and operation of individual projects is expected to be completed within the next two years.
The expansion of the use of renewable energy sources is a strategic priority of the ΔΕΗ Group and the new cooperation between ΔΕΗ Renewables and the EIB will help the ΔΕΗ Group to achieve its strategic goal to become a major supplier of green energy in Greece. New investments for the improvement of existing and the construction of new wind farms will boost energy self-sufficiency, will create new job opportunities and will bring benefits to local communities.
Mr. Jonathan Taylor, Vice-President of the European Investment Bank, said: "The new investment in renewable energy is critical to reducing carbon dioxide emissions and to support investments in this area. It is a priority for both the Greek Government and the European Investment Bank."
Mr Manolis Panagiotakis, Chairman of the Board of Directors of ΔΕΗ Renewables, said: "This loan will boost the production of electricity from renewable energy sources in mainland Greece and the Greek Islands. It will also contribute to a change in the energy mix produced at group level of the ΔΕΗ and will make the supply of energy in Greece more sustainable and safer."
Mr. Elias Monacholias, CEO of ΔΕΗ Renewables, said: "Today ΔΕΗ Renewables enters a new era, as it is the first time that the company has signed a loan agreement for the financing of a total of 18 projects in the field of renewable sources of energy. The loan granted by the European Investment Bank, on favourable terms compared to the normal interest rates for lending to businesses, is very important for the ΔΕΗ Renewables because it will allow the full restoration of old wind farms and small hydropower plants and building new capacity. We look forward to our cooperation with the EIB and the success of this cooperation."
“It is time for everyone to help”
Prime Minister Alexis Tsipras on Monday met with the board of the Hellenic Banking Association (HBA). PM Tsipras noted that it was now time to translate the good climate that exists in the Greek economy into more than figures and statistics.
“The messages are positive; 10-year Greek bonds broke the 4% barrier and this marks a return to pre-crisis conditions.
It is time for everyone to help so that this good climate in the economy can be translated – in addition to numbers and statistics – in a real sense to society, especially among the weaker and most vulnerable and the middle class.”
He asked the bankers to “chase the big-timers who have managed to bankrupt their businesses while remaining wealthy themselves by taking their money abroad and not paying their debts.”
He also urged them to put a stop to the dissemination of “fake news” regarding foreclosures on homes of Greeks on low and medium incomes, stressing that contrary to some media reports, the Government has ensured that no primary residences will be put up for auction. Remarking to the bankers that they are the ones funding Greek media organisations, the PM said they should not tolerate lies.
PM Tsipras stated that the Government’s aims are to restore the original role of the Greek banks as lending institutions, to protect the most vulnerable and to give opportunities to young Greeks.
“Liquidity needs to be restored to the economy, to healthy businesses, and households need to be supported.” “We need a responsible and effective way to deal with the problem of nonperforming loans,” he added.
Prime Minister Alexis Tsipras on Monday met with the board of the Hellenic Banking Association (HBA). PM Tsipras noted that it was now time to translate the good climate that exists in the Greek economy into more than figures and statistics.
“The messages are positive; 10-year Greek bonds broke the 4% barrier and this marks a return to pre-crisis conditions.
It is time for everyone to help so that this good climate in the economy can be translated – in addition to numbers and statistics – in a real sense to society, especially among the weaker and most vulnerable and the middle class.”
He asked the bankers to “chase the big-timers who have managed to bankrupt their businesses while remaining wealthy themselves by taking their money abroad and not paying their debts.”
He also urged them to put a stop to the dissemination of “fake news” regarding foreclosures on homes of Greeks on low and medium incomes, stressing that contrary to some media reports, the Government has ensured that no primary residences will be put up for auction. Remarking to the bankers that they are the ones funding Greek media organisations, the PM said they should not tolerate lies.
PM Tsipras stated that the Government’s aims are to restore the original role of the Greek banks as lending institutions, to protect the most vulnerable and to give opportunities to young Greeks.
“Liquidity needs to be restored to the economy, to healthy businesses, and households need to be supported.” “We need a responsible and effective way to deal with the problem of nonperforming loans,” he added.
"Our goal for 2030 is to have 50% of our energy needs in Greece generated from
renewable energy sources"
16.12.2017
Alexis Tsipras at the “One Planet Summit” in Paris
"The European countries and the EU are the locomotive for driving through the necessary reforms in order to protect the planet and future generations from climate change, said the Prime Minister after the “One Planet Summit” International Conference in Paris.
" Today we had the opportunity, leaders and Government representatives from the length and breadth of the globe, to reaffirm our commitment to protect the planet against the phenomenon of climate change, commitments we had taken two years ago here in Paris.
Today we again found ourselves in need of reaffirming those commitments, given that unfortunately not all countries are following what was agreed.
"The European countries and the EU are the locomotive for driving through the necessary reforms in order to protect the planet and future generations from climate change.
Unfortunately the United States of America did not follow us, but I believe that in this joint effort, which concerns our commitment to future generations noone can be left out. And it is never too late for all of them to reconsider their positions and their actions, in order for all of us to commit to protecting the future of this planet, to protecting the future of coming generations,"said the Prime Minister.
With regard to the commitments of Greece over the two-year period which has elapsed since the Paris Agreement, Mr. Tsipras explained:
"Greece is a country that has progressed belatedly in relation to what it should have realised much sooner are the necessary changes on climate change. But lately it has progressed rapidly.
We are reaching the goals of 2020 compared with our commitments, and we are quite optimistic that we will achieve the 2030 target.
Let me remind you that our goal for 2030 is to have 50% of energy to cover our needs in Greece generated from renewable energy sources. Greece is in a location on the planet that has this comparative advantage and the opportunity to harness the sun, the water, the wind, that is to say the natural wealth, to produce energy. And in that sense it is contributing in the way that it is appropriate for it, to the great effort to stop the phenomenon of climate change, to protect the planet and create a more promising prospect for future generations.
This great commitment we have reaffirmed today and I think we have publicly sent a very important message. And let us hope that everyone hears this message, because, I repeat, in this effort noone is exempt, but we must all help."
"The European countries and the EU are the locomotive for driving through the necessary reforms in order to protect the planet and future generations from climate change, said the Prime Minister after the “One Planet Summit” International Conference in Paris.
" Today we had the opportunity, leaders and Government representatives from the length and breadth of the globe, to reaffirm our commitment to protect the planet against the phenomenon of climate change, commitments we had taken two years ago here in Paris.
Today we again found ourselves in need of reaffirming those commitments, given that unfortunately not all countries are following what was agreed.
"The European countries and the EU are the locomotive for driving through the necessary reforms in order to protect the planet and future generations from climate change.
Unfortunately the United States of America did not follow us, but I believe that in this joint effort, which concerns our commitment to future generations noone can be left out. And it is never too late for all of them to reconsider their positions and their actions, in order for all of us to commit to protecting the future of this planet, to protecting the future of coming generations,"said the Prime Minister.
With regard to the commitments of Greece over the two-year period which has elapsed since the Paris Agreement, Mr. Tsipras explained:
"Greece is a country that has progressed belatedly in relation to what it should have realised much sooner are the necessary changes on climate change. But lately it has progressed rapidly.
We are reaching the goals of 2020 compared with our commitments, and we are quite optimistic that we will achieve the 2030 target.
Let me remind you that our goal for 2030 is to have 50% of energy to cover our needs in Greece generated from renewable energy sources. Greece is in a location on the planet that has this comparative advantage and the opportunity to harness the sun, the water, the wind, that is to say the natural wealth, to produce energy. And in that sense it is contributing in the way that it is appropriate for it, to the great effort to stop the phenomenon of climate change, to protect the planet and create a more promising prospect for future generations.
This great commitment we have reaffirmed today and I think we have publicly sent a very important message. And let us hope that everyone hears this message, because, I repeat, in this effort noone is exempt, but we must all help."
Euclid Tsakalotos in New York
"In all this effort the objective of the Government has been to support the sectors of society most affected by the crisis," said the Finance Minister, Euclid Tsakalotos, adding that Greece has already started to implement policies which improve the business environment.
Speaking on Thursday in New York at the 19th Annual Capital Link “Invest in Greece Forum” he referred to a whole raft of data relating to the final exit of the country from the crisis and the Memoranda Programmes - the country's successful accessing of capital markets, the reduction of interest rates and the improvement in exports.
Minister Tsakalotos also underlined that the Budget going through the Plenary Meeting of Parliament marks the exit of Greece from a long period of fiscal adjustment programmes.
"This is the result of both the hard work of the Greek Government and of the crucial sacrifices of the Greek citizens. The result of this is the improvement of confidence among both consumers and businesses." He gave special emphasis to the downward trend of unemployment, which is a "strong signal of the steady improvement in the trend of growth", attributing these positive prospects to an improved confidence in the sustainability of Greek public finances and to the introduction of a wide range of reforms to redesign the Greek economy.
" In this whole effort, the aim of the Government has been to support the sectors of society most affected by the crisis. As we are entering the stage of recovery, our efforts will be to ensure the sustainability of the prospects for growth, while supporting the fairness of the character of that growth". With a clear signal to investors, the Finance Minister said that Greece has already started to implement policies which improve the business environment (reducing the bureaucratic burden), while directing public funding to many promising areas of economic activity.
"The goal is to enable entrepreneurs to achieve their potential and to reform the Greek economy".
In conclusion he made it clear that next year will be characterized by debates about the medium- and long-term debt relief measures and by Government efforts to generate sufficient surpluses to allow the further reduction of interest rates and to support the “clean exit” from the Programme, which is the goal of both Greece and its partners.
"In all this effort the objective of the Government has been to support the sectors of society most affected by the crisis," said the Finance Minister, Euclid Tsakalotos, adding that Greece has already started to implement policies which improve the business environment.
Speaking on Thursday in New York at the 19th Annual Capital Link “Invest in Greece Forum” he referred to a whole raft of data relating to the final exit of the country from the crisis and the Memoranda Programmes - the country's successful accessing of capital markets, the reduction of interest rates and the improvement in exports.
Minister Tsakalotos also underlined that the Budget going through the Plenary Meeting of Parliament marks the exit of Greece from a long period of fiscal adjustment programmes.
"This is the result of both the hard work of the Greek Government and of the crucial sacrifices of the Greek citizens. The result of this is the improvement of confidence among both consumers and businesses." He gave special emphasis to the downward trend of unemployment, which is a "strong signal of the steady improvement in the trend of growth", attributing these positive prospects to an improved confidence in the sustainability of Greek public finances and to the introduction of a wide range of reforms to redesign the Greek economy.
" In this whole effort, the aim of the Government has been to support the sectors of society most affected by the crisis. As we are entering the stage of recovery, our efforts will be to ensure the sustainability of the prospects for growth, while supporting the fairness of the character of that growth". With a clear signal to investors, the Finance Minister said that Greece has already started to implement policies which improve the business environment (reducing the bureaucratic burden), while directing public funding to many promising areas of economic activity.
"The goal is to enable entrepreneurs to achieve their potential and to reform the Greek economy".
In conclusion he made it clear that next year will be characterized by debates about the medium- and long-term debt relief measures and by Government efforts to generate sufficient surpluses to allow the further reduction of interest rates and to support the “clean exit” from the Programme, which is the goal of both Greece and its partners.
Foreign Minister, Nikos Kotzias in Brussels
The latest developments in the Middle East and the situation in Iraq were at the core of the meeting of EU Foreign Ministers in Brussels this week, where Greece was represented by Foreign Minister, Nikos Kotzias.
During the debate on the Middle East, Minister Kotzias reported that the Greek side has emphasized the assessment that it had already put forward, namely that the recognition of Jerusalem as Israel's capital and the moving of the U.S. Embassy to Jerusalem do not contribute to peace in the region. "We have underlined the need for the two States solution, Israel and Palestine, while ensuring the security of Israel," he said.
He went on to underline the need for timely designs for rebuilding Syria and "a contribution of specialists" to assist in the formation of the new constitutional order.
On Iraq, Minister Kotzias highlighted the need to respect the rights of autonomy laid down in the Constitution of that country, as well as the need for a "positive agenda" and a "new spirit", which will contribute to the new order of things in the Eastern Mediterranean, that is to say a new order of security and peace.
Asked to comment on criticism by the Opposition concerning the recent visit of the Turkish President Erdogan to Athens, Minister Kotzias replied: "For the first time in the history of diplomacy, criticism was made about a visit before it even started. This was not political criticism but a hot-air prediction". He stressed that the visit of the Turkish President took place because "we must always keep open channels of discussion," and added: "This visit took place for us to give impetus to and to re-energise the common large economic transport projects which we are preparing, the cooperation between universities, research centres, to prepare the meeting of the two Governments in Thessaloniki in three months from now, to look again at how the two Foreign Ministries will work together and we also talked about the Cyprus problem."
Minister Kotzias added that the Opposition had taken the decision beforehand to characterize Erdogan's visit as a failure because it has "a culture of neo-isolationism and inertia, for us to sit at home."
"In bilateral relations this principle does not hold," said the Foreign Minister, noting that Erdogan's visit was beneficial for the country and for the way relations between Greece and Turkey are being dealt with.
The latest developments in the Middle East and the situation in Iraq were at the core of the meeting of EU Foreign Ministers in Brussels this week, where Greece was represented by Foreign Minister, Nikos Kotzias.
During the debate on the Middle East, Minister Kotzias reported that the Greek side has emphasized the assessment that it had already put forward, namely that the recognition of Jerusalem as Israel's capital and the moving of the U.S. Embassy to Jerusalem do not contribute to peace in the region. "We have underlined the need for the two States solution, Israel and Palestine, while ensuring the security of Israel," he said.
He went on to underline the need for timely designs for rebuilding Syria and "a contribution of specialists" to assist in the formation of the new constitutional order.
On Iraq, Minister Kotzias highlighted the need to respect the rights of autonomy laid down in the Constitution of that country, as well as the need for a "positive agenda" and a "new spirit", which will contribute to the new order of things in the Eastern Mediterranean, that is to say a new order of security and peace.
Asked to comment on criticism by the Opposition concerning the recent visit of the Turkish President Erdogan to Athens, Minister Kotzias replied: "For the first time in the history of diplomacy, criticism was made about a visit before it even started. This was not political criticism but a hot-air prediction". He stressed that the visit of the Turkish President took place because "we must always keep open channels of discussion," and added: "This visit took place for us to give impetus to and to re-energise the common large economic transport projects which we are preparing, the cooperation between universities, research centres, to prepare the meeting of the two Governments in Thessaloniki in three months from now, to look again at how the two Foreign Ministries will work together and we also talked about the Cyprus problem."
Minister Kotzias added that the Opposition had taken the decision beforehand to characterize Erdogan's visit as a failure because it has "a culture of neo-isolationism and inertia, for us to sit at home."
"In bilateral relations this principle does not hold," said the Foreign Minister, noting that Erdogan's visit was beneficial for the country and for the way relations between Greece and Turkey are being dealt with.
EU Moves on Panama Papers
"With all its strength the European People's Party (EPP), the grouping to which New Democracy belongs, has tried to minimize the measures against tax havens often with the support of the far-right in the European Parliament" reported SYRIZA MEPs.
The recommendations of the Committee of Inquiry into the Panama Papers was approved by a vote in a plenary session of the European Parliament, despite the obstacles that conservative forces tried to put up, with 492 votes in favour, 50 against and 136 abstentions.
"Specifically, in today's vote in the Plenary of the European Parliament, MEPs of New Democracy (in some cases joined also by Mrs. Kaili of the [newly-formed Ed] Democratic Alignment) voted against or abstained in the vote on the following recommendations:
-To include in the list of countries that assist or promote tax evasion/ tax avoidance practices, EU Member States, such as Malta, Ireland, Luxembourg and the Netherlands.
-To impose sanctions on the above EU Member States.
-To investigate the position of the Irish Government in appealing against the decision that the write-off of Apple’s 13€ billion debt was illegal and that the appeal is an attempt to avoid collecting the amount owed.
-For the European Commission to claim the gains evaded by footballers who transferred money to tax havens, as well as by the middlemen in these transfers.
-The creation of an international directory of companies, institutions, funds, bank accounts, and assets. Also the requirement for greater transparency in companies’ financial information (balance sheets, shareholders, etc)
-Introducing sanctions on banks, up to and including the removal of their licences, if it is proven that they participated in or facilitated cases of tax evasion or tax avoidance.
-To create a legal mechanism that will ensure that the money arising from disclosures of tax evasion will be returned to the Member States where the economic activity actually took place.
-To separate the accountancy companies from the consulting companies and to prohibit the payment of the latter with a bonus on profits so that the possibilities of undertaking illegal practices are removed."
"With all its strength the European People's Party (EPP), the grouping to which New Democracy belongs, has tried to minimize the measures against tax havens often with the support of the far-right in the European Parliament" reported SYRIZA MEPs.
The recommendations of the Committee of Inquiry into the Panama Papers was approved by a vote in a plenary session of the European Parliament, despite the obstacles that conservative forces tried to put up, with 492 votes in favour, 50 against and 136 abstentions.
"Specifically, in today's vote in the Plenary of the European Parliament, MEPs of New Democracy (in some cases joined also by Mrs. Kaili of the [newly-formed Ed] Democratic Alignment) voted against or abstained in the vote on the following recommendations:
-To include in the list of countries that assist or promote tax evasion/ tax avoidance practices, EU Member States, such as Malta, Ireland, Luxembourg and the Netherlands.
-To impose sanctions on the above EU Member States.
-To investigate the position of the Irish Government in appealing against the decision that the write-off of Apple’s 13€ billion debt was illegal and that the appeal is an attempt to avoid collecting the amount owed.
-For the European Commission to claim the gains evaded by footballers who transferred money to tax havens, as well as by the middlemen in these transfers.
-The creation of an international directory of companies, institutions, funds, bank accounts, and assets. Also the requirement for greater transparency in companies’ financial information (balance sheets, shareholders, etc)
-Introducing sanctions on banks, up to and including the removal of their licences, if it is proven that they participated in or facilitated cases of tax evasion or tax avoidance.
-To create a legal mechanism that will ensure that the money arising from disclosures of tax evasion will be returned to the Member States where the economic activity actually took place.
-To separate the accountancy companies from the consulting companies and to prohibit the payment of the latter with a bonus on profits so that the possibilities of undertaking illegal practices are removed."
Cutting Waste saves 400€ Million
"The Assessment ended surprisingly well, despite the enormous difficulties we encountered. As a Government we pursued and managed to achieve all the money legislated for by the Spending Review, to be allocated exclusively to the social portfolio", said Deputy Minister for Social Solidarity, Theano Fotiou, in a press interview.
"By limiting waste in the Ministries, 400€ million have been saved when the Creditors required 325€ million. From this the Government decided that 315€ million should be allocated to the social portfolio. Specifically 260€ million to family allowances, 40€ million for school meals and 15€ million for creating new crèches.
By creating three income categories [For Family Allowances Ed], Deputy Minister Fotiou indicated that an attempt is being made at the equal treatment of families. He explained that out of a total of 803,000 families, 734,500 families would benefit. Of these, 682,000 will benefit by between 57% and 110%, while the remaining 52,500 belonging to the two higher income categories will see some reductions in Family Allowances.
As regards invalidity benefits, the Deputy Minister said that those who were talking about cuts have been shown to be wrong, while to the contrary it has been decided to pilot the implementation of the Electronic Disability File, which "will put an end to lengthy and cumbersome procedures for people with disabilities".
On the policy for children, Deputy Minister Mrs Fotiou said that in 2018 400 new nurseries will be created for an extra 10,000 children and an extra 1,800 new nurseries over the period 2019-2020 for 45,000 children, almost doubling the current number of nurseries from 2,800 to 5,000.
First Local Health Units open in Thessaloniki
Three Local Health Units [TOMY] in Thessaloniki were opened on Thursday by PM Alexis Tsipras and the Minister of Health Andreas Xanthos.
Overall the plan is to create more than 230 TOMY throughout the country and the first three started - already fully staffed - to operate in western Thessaloniki.
Housed in single-storey buildings and accessible to disabled visitorsguests, their aim is primary care and in particular preventive medicine.
Alexis Tsipras pointed out that with the reform in Primary Health Care which it is advocating "those with an interest in the development of private diagnostic centres are not rejoicing".
Each TOMY is staffed with 12 health professionals - specifically four General Practice doctors, a pediatrician, two nurses, a social worker, two health visitors and two administrative staff. They will work in two shifts, while each Unit will cover between 10,000 up to 12,000 inhabitants in the area. TOMY have as their main direction health prevention and health education. They will provide primary care, although this would normally be provided by the Health Centres to which the TOMYwill refer people.
"The Assessment ended surprisingly well, despite the enormous difficulties we encountered. As a Government we pursued and managed to achieve all the money legislated for by the Spending Review, to be allocated exclusively to the social portfolio", said Deputy Minister for Social Solidarity, Theano Fotiou, in a press interview.
"By limiting waste in the Ministries, 400€ million have been saved when the Creditors required 325€ million. From this the Government decided that 315€ million should be allocated to the social portfolio. Specifically 260€ million to family allowances, 40€ million for school meals and 15€ million for creating new crèches.
By creating three income categories [For Family Allowances Ed], Deputy Minister Fotiou indicated that an attempt is being made at the equal treatment of families. He explained that out of a total of 803,000 families, 734,500 families would benefit. Of these, 682,000 will benefit by between 57% and 110%, while the remaining 52,500 belonging to the two higher income categories will see some reductions in Family Allowances.
As regards invalidity benefits, the Deputy Minister said that those who were talking about cuts have been shown to be wrong, while to the contrary it has been decided to pilot the implementation of the Electronic Disability File, which "will put an end to lengthy and cumbersome procedures for people with disabilities".
On the policy for children, Deputy Minister Mrs Fotiou said that in 2018 400 new nurseries will be created for an extra 10,000 children and an extra 1,800 new nurseries over the period 2019-2020 for 45,000 children, almost doubling the current number of nurseries from 2,800 to 5,000.
First Local Health Units open in Thessaloniki
Three Local Health Units [TOMY] in Thessaloniki were opened on Thursday by PM Alexis Tsipras and the Minister of Health Andreas Xanthos.
Overall the plan is to create more than 230 TOMY throughout the country and the first three started - already fully staffed - to operate in western Thessaloniki.
Housed in single-storey buildings and accessible to disabled visitorsguests, their aim is primary care and in particular preventive medicine.
Alexis Tsipras pointed out that with the reform in Primary Health Care which it is advocating "those with an interest in the development of private diagnostic centres are not rejoicing".
Each TOMY is staffed with 12 health professionals - specifically four General Practice doctors, a pediatrician, two nurses, a social worker, two health visitors and two administrative staff. They will work in two shifts, while each Unit will cover between 10,000 up to 12,000 inhabitants in the area. TOMY have as their main direction health prevention and health education. They will provide primary care, although this would normally be provided by the Health Centres to which the TOMYwill refer people.
“The time of the Greek economy has finally arrived”
9.12.2017
From the platform of the Annual Conference the American-Hellenic Chamber of Commerce in Athens on Monday, Prime Minister Alexis Tsipras sent out a message of optimism about the "next day", as he said the markets are showing the "green light" for the final exit from the Memoranda in August 2018 ... growth is returning, together with both investment and the exit from the crisis is creating by 2019 the fiscal space for a reduction in tax rates, while he stressed that the intention of the Government is to pass onto the society the positive results of growth.
At the same time the Prime Minister accused the Opposition and those who insist on doom-mongering even on mud-slinging, refusing to recognize the positive indicators on the trajectory of the Greek economy, to such an extent that on many occasions they are close to "undermining" the national effort to emerge from the crisis. He noted that in this way they are betraying their strategic impasse and their bewilderment in the face of the fact that there is an alternative method of growth without crushing the world of work and the society. He stressed that reality itself gives the best response, referring also to the recent statements of Pierre Moscovici during their meeting in Portugal.
Addressing the representatives of the productive forces, he urged them to see the "big picture", to turn their gaze from yesterday and today towards tomorrow and to take part in the great change that is taking place in the country for the common future, saying that the country’s productive forces will be the first to reap the benefits of growth.
The time of the Greek economy has finally arrived.
"I am please to maintain, without a trace of exaggeration, you are all feeling it, that the time of the Greek economy has finally arrived, and with it are synchronized positive developments that inspire optimism and signal the positive change for which we have been working for three years.
"Our strategy has paid off, the toils of the Greek people are producing results and especially with the sustainable features that guarantee that the country is definitively turning the page with no going back.
Our economy according to the latest figures has grown for the first time for three consecutive quarters, something that has not happened since 2006.
The indications tell us that the end result will be those forecasted, thereby inaugurating a new tradition of reliability in the estimates, that has nothing to do with the predictions of previous years, especially of the first years of the crisis which saw only marginal growth and recession constantly - and even deep recession - followed.
Unemployment from its highest percentage at the end of 2014, has been reduced today by about 7 percentage points, with the creation of about 300,000 new jobs, and is close to the first milestone of 20%.
In the fiscal arena, we have achieved an adjustment that is historic in its credibility in all the EU years.
2018 - the Turning Point
"With this positive momentum we will enter the new year and consequently 2018 will be indeed be a watershed-year, for Greece and the Greek economy, with the country leaving behind the Memoranda in August 2018 and with them a whole historical era begins the next day with strong trends of growth, renewal and with faith in its strength."
The technical agreement without further fiscal measures
The PM referred to the importance of the timely completion of the technical part of the Third Assessment, saying it took place "in the best possible conditions for the country and Greek society" and he went on:
"The agreement despite the well-known "prophets of Doom", did not come with new budgetary measures.
On the contrary, the credibility of our budgetary effort enabled not just the avoidance of any new measures, but also enabled the strengthening of the structures of the Welfare State, with the significant increase in the budget for family allowances on average by 30%.
We have secured priority in the payment of workers in enterprises which go into liquidation, putting in order a regime of uncertainty which wanted employees to foot the bill.
The decisions on Energy on the basis of best international practice will contribute decisively to the reduction of household and industrial tariffs and will attract large-scale investment and especially long-term investment - something which will have multiple benefits for the productive capacity of Greek companies and for the reduction of unemployment, because that is the goal.
On the best international practices and on the recommendations of OECD, the changes have been based on product markets, the removal of bureaucratic barriers and the creation of an investment-friendly environment.
We have ensured through the Public Property Development Fund that the forced sell-off of public property will be prevented, as some would perhaps have wished. Public property will be upgraded and will be developed with the participation of the private sector to create jobs and surplus value for local communities.
The climate in the investment community has changed.
The completion of the technical agreement on the Third Assessment, in record time, has already created a completely different climate in the image of the country in companies and in particular in the international investment community.
And this fact is reflected today in the most obvious way in the bond markets, where yields on 10-Year Greek bonds, from 5.39% last Friday, today fell to 4.81% which is the best performance achieved since 8th October 2009.
The markets are showing the "green light" for the final exit from the Memoranda
"In short, the markets are already returning the Greek economy to pre-crisis levels and are showing us the green light for the final exit from the Memoranda in a few months from now in the summer of 2018."
Those who engage in doom-mongering and mud-slinging are undermining the national effort
"Of course this, I would say, huge change, unfortunately is not recognized by everyone. Some people inside the country do not want to recognize it. So what if our partners recognize it publicly. So what if the markets within and outside Greece demonstrate it.
I remind you that when at the Second Assessment, the IMF raised unreasonable demands and the Assessment was delayed, they accused us saying that we were to blame for the delays and that we should accept all the demands to avoid uncertainty. Now that we have reached a conclusion on time and maintained our core objectives, they accuse us of the exact opposite: that we conceded everything hurriedly. Generally you cannot get to grips with them. They have no difficulty in accusing us at the same time of exactly the opposite. They question even the obvious, such as the positive economic growth and the steady decline of unemployment! And they pursue the cultivation of a climate of uncertainty - the same people who a short time ago asked us to surrender, to avoid uncertainty."
"Instead of our own words, I would emphasise the words that Commissioner of Finance, Pierre Moscovici publicly said about Greece after the meeting in Portugal. As you will understand, it was no some minor technocrat who got above himself and took the conference microphone, but the Commissioner of Finance, Pierre Moscovici himself. He it was who made it clear that Greece will be -from August 2018 - a normal member of the Eurozone, again, like all Eurozone members leaving behind stewardship after the programme, as was the case in Portugal, Ireland, Cyprus but with no further programmes. It is a historic moment for Greece. This time is not far off, it is approaching, it is not an impossible dream. Day by day it is becoming reality and will become a fact in a few months, in the summer of 2018."
"Recently I was in the United States and had the opportunity to talk with Greek expatriates and with American investors. Everyone is noticing the positive change that has taken place in the country and the prospects which are opening up. They evaluate the changes and reforms to be positive and note especially the cultural shift in favour of those changes.
Because Greece is finally acquiring a culture of changes and reform. We are no longer afraid in the face of change and the ties to the vested interests of the past which hindered progress have definitively been broken.
This recognition has been translated into practical support with participation in Greek companies, in increases in capital investment in listed companies and investment in large projects."
To pass on the benefits of development to society
"The aim of the Government is the upward trend of the Greek economy to gain sustainable and permanent features and to pass on the positive results of growth to society, in the form of well paid jobs and strong structures of social protection. And this can be done only on the basis of a new and fair model of production while deepening progressive reform.
For this purpose the Government is abandoning the model of state-controlled entrepreneurship and consumption of imports on borrowed money and is reorientating the Greek economy towards innovation, outward-looking and the production of goods for the international market.
The utilization of our comparative advantages cannot rely solely on national champions, but must include the strengthening of intersectoral cooperation and interdependence.
"That means creating integrated value chains and promoting synergies. Our country breaks visitor records every year in Tourism but it is “a gift with no benefit”, since through imports of food products we pour away our economic strength to third countries, instead of supporting the domestic primary sector and the agricultural processing sector.
In the new knowledge economy we can gain lost ground, with investment in research and innovation.
We are promoting the synergies between research and production.
Our universities can generate knowledge and value and can consolidate the position of our country at the top of the developed economies in the global competition.
Human capital is our most important asset and so we must not give in to an outdated model of development which is based on the degradation of labour and its role in the development process.
The funding of this effort requires new and flexible approaches:
We have redesigned the financial tools.
We have increased the Public Investment Programme.
We are absorbing ESPA funds without delays.
We have passed thoroughly modern development legislation based on the new requirements of the times.
We have set our banking system to a new and sound basis.
Bank deposits are returning and the issue of “red loans” has begun to be dealt with effectively, giving relief to the real economy from the noose of over-indebtedness and insufficient liquidity.
Restarting large projects in road and rail networks, upgrading ports, investments in digital infrastructure and the flagship investments in a wide range of sectors and areas of production such as Energy, Tourism, Transport and Construction – these are changing expectations also at the base of the economy.
The licencing of businesses is being accelerated in an unprecedented way by electronic means and decades-old bureaucratic hurdles are being removed.
The battle with bureaucracy is daily.
The State is being modernised, it is becoming faster and more efficient.
The rules of law and equal treatment are being strenghened.
Everybody knows the rules of the "game" and there are no opaque and secret understandings.
In attempting to attract investment I am personally involved in the task force that comes into direct contact with investors and will resolve there and then any problems that prevent the success of investment projects.
Development with social justice
Development with social justice - they are not mutually exclusive, opposing concepts, but mutually re-inforcing and closely related."
The Prime Minister said he was not trying to describe an ideal situation, but to show the realistic possibilities of the Greek economy.
He acknowledged that there are problems and challenges that we must overcome collectively and raised the issue of high taxation: "This is a difficult political decision taken under the pressing weight of extraordinary circumstances that the country found itself in and the pressure from our lenders to go through the long period of the shortfalls that led us to the crisis. But our belief was, when we took that decision, and so it remains, that these circumstances cannot be permanent but are extraordinary. And the exit from the crisis will allow once more the reduction of tax rates.
From 2019 the creation of the fiscal space for reducing tax rates
This will happen soon, immediately and is already provided for in the medium-term programme. By 2019 we will begin to see the fiscal space being created. Our ally here is the credible and sustained fiscal adjustment which we have shaped in a systematic way.
Because you know that this situation did not arise in a vacuum but has deep historical causes spanning the entire length of the post-dictatorship period -
-The loss of VAT revenue for whole decades
-The fragmentation of the tax mechanism.
-The smuggling of fuel and cigarettes.
-The peculiar tax immunity and tax exemption of some privileged people.
-The socialization of enterprises’ losses with their privileged access to liquidity.
All these things deprived the Greek economy of billions of resources and contributed to the state’s fiscal train crash.
To this must be added an international phenomenon, and I am referring to the socially unfair, even if legal practice of tax avoidance through tax havens.
For us this is not a case where the legal is moral, nor do the sometimes high State taxes justify this practice. The taxation of wealth for the provision of public goods and the support of the Welfare State is postwar gain and a fundamental legitimate pillar of democracy."
"We have implemented reforms that the country has needed for decades, such as:
-The independence of the authority of the public revenue.
-The introduction of electronic payment systems.
-The law on voluntary disclosure of income.
-Measures to combat the smuggling of fuel and cigarettes.
-Rigorous public procurement.
-The control and containment of expenditure of the Ministries where this is possible. In this way we have increased social spending, because we have cut waste in each Ministry.
All the above measures coupled with a return to growth in the medium term will lift the tax burden from businesses and households.
At the same time the Prime Minister accused the Opposition and those who insist on doom-mongering even on mud-slinging, refusing to recognize the positive indicators on the trajectory of the Greek economy, to such an extent that on many occasions they are close to "undermining" the national effort to emerge from the crisis. He noted that in this way they are betraying their strategic impasse and their bewilderment in the face of the fact that there is an alternative method of growth without crushing the world of work and the society. He stressed that reality itself gives the best response, referring also to the recent statements of Pierre Moscovici during their meeting in Portugal.
Addressing the representatives of the productive forces, he urged them to see the "big picture", to turn their gaze from yesterday and today towards tomorrow and to take part in the great change that is taking place in the country for the common future, saying that the country’s productive forces will be the first to reap the benefits of growth.
The time of the Greek economy has finally arrived.
"I am please to maintain, without a trace of exaggeration, you are all feeling it, that the time of the Greek economy has finally arrived, and with it are synchronized positive developments that inspire optimism and signal the positive change for which we have been working for three years.
"Our strategy has paid off, the toils of the Greek people are producing results and especially with the sustainable features that guarantee that the country is definitively turning the page with no going back.
Our economy according to the latest figures has grown for the first time for three consecutive quarters, something that has not happened since 2006.
The indications tell us that the end result will be those forecasted, thereby inaugurating a new tradition of reliability in the estimates, that has nothing to do with the predictions of previous years, especially of the first years of the crisis which saw only marginal growth and recession constantly - and even deep recession - followed.
Unemployment from its highest percentage at the end of 2014, has been reduced today by about 7 percentage points, with the creation of about 300,000 new jobs, and is close to the first milestone of 20%.
In the fiscal arena, we have achieved an adjustment that is historic in its credibility in all the EU years.
2018 - the Turning Point
"With this positive momentum we will enter the new year and consequently 2018 will be indeed be a watershed-year, for Greece and the Greek economy, with the country leaving behind the Memoranda in August 2018 and with them a whole historical era begins the next day with strong trends of growth, renewal and with faith in its strength."
The technical agreement without further fiscal measures
The PM referred to the importance of the timely completion of the technical part of the Third Assessment, saying it took place "in the best possible conditions for the country and Greek society" and he went on:
"The agreement despite the well-known "prophets of Doom", did not come with new budgetary measures.
On the contrary, the credibility of our budgetary effort enabled not just the avoidance of any new measures, but also enabled the strengthening of the structures of the Welfare State, with the significant increase in the budget for family allowances on average by 30%.
We have secured priority in the payment of workers in enterprises which go into liquidation, putting in order a regime of uncertainty which wanted employees to foot the bill.
The decisions on Energy on the basis of best international practice will contribute decisively to the reduction of household and industrial tariffs and will attract large-scale investment and especially long-term investment - something which will have multiple benefits for the productive capacity of Greek companies and for the reduction of unemployment, because that is the goal.
On the best international practices and on the recommendations of OECD, the changes have been based on product markets, the removal of bureaucratic barriers and the creation of an investment-friendly environment.
We have ensured through the Public Property Development Fund that the forced sell-off of public property will be prevented, as some would perhaps have wished. Public property will be upgraded and will be developed with the participation of the private sector to create jobs and surplus value for local communities.
The climate in the investment community has changed.
The completion of the technical agreement on the Third Assessment, in record time, has already created a completely different climate in the image of the country in companies and in particular in the international investment community.
And this fact is reflected today in the most obvious way in the bond markets, where yields on 10-Year Greek bonds, from 5.39% last Friday, today fell to 4.81% which is the best performance achieved since 8th October 2009.
The markets are showing the "green light" for the final exit from the Memoranda
"In short, the markets are already returning the Greek economy to pre-crisis levels and are showing us the green light for the final exit from the Memoranda in a few months from now in the summer of 2018."
Those who engage in doom-mongering and mud-slinging are undermining the national effort
"Of course this, I would say, huge change, unfortunately is not recognized by everyone. Some people inside the country do not want to recognize it. So what if our partners recognize it publicly. So what if the markets within and outside Greece demonstrate it.
I remind you that when at the Second Assessment, the IMF raised unreasonable demands and the Assessment was delayed, they accused us saying that we were to blame for the delays and that we should accept all the demands to avoid uncertainty. Now that we have reached a conclusion on time and maintained our core objectives, they accuse us of the exact opposite: that we conceded everything hurriedly. Generally you cannot get to grips with them. They have no difficulty in accusing us at the same time of exactly the opposite. They question even the obvious, such as the positive economic growth and the steady decline of unemployment! And they pursue the cultivation of a climate of uncertainty - the same people who a short time ago asked us to surrender, to avoid uncertainty."
"Instead of our own words, I would emphasise the words that Commissioner of Finance, Pierre Moscovici publicly said about Greece after the meeting in Portugal. As you will understand, it was no some minor technocrat who got above himself and took the conference microphone, but the Commissioner of Finance, Pierre Moscovici himself. He it was who made it clear that Greece will be -from August 2018 - a normal member of the Eurozone, again, like all Eurozone members leaving behind stewardship after the programme, as was the case in Portugal, Ireland, Cyprus but with no further programmes. It is a historic moment for Greece. This time is not far off, it is approaching, it is not an impossible dream. Day by day it is becoming reality and will become a fact in a few months, in the summer of 2018."
"Recently I was in the United States and had the opportunity to talk with Greek expatriates and with American investors. Everyone is noticing the positive change that has taken place in the country and the prospects which are opening up. They evaluate the changes and reforms to be positive and note especially the cultural shift in favour of those changes.
Because Greece is finally acquiring a culture of changes and reform. We are no longer afraid in the face of change and the ties to the vested interests of the past which hindered progress have definitively been broken.
This recognition has been translated into practical support with participation in Greek companies, in increases in capital investment in listed companies and investment in large projects."
To pass on the benefits of development to society
"The aim of the Government is the upward trend of the Greek economy to gain sustainable and permanent features and to pass on the positive results of growth to society, in the form of well paid jobs and strong structures of social protection. And this can be done only on the basis of a new and fair model of production while deepening progressive reform.
For this purpose the Government is abandoning the model of state-controlled entrepreneurship and consumption of imports on borrowed money and is reorientating the Greek economy towards innovation, outward-looking and the production of goods for the international market.
The utilization of our comparative advantages cannot rely solely on national champions, but must include the strengthening of intersectoral cooperation and interdependence.
"That means creating integrated value chains and promoting synergies. Our country breaks visitor records every year in Tourism but it is “a gift with no benefit”, since through imports of food products we pour away our economic strength to third countries, instead of supporting the domestic primary sector and the agricultural processing sector.
In the new knowledge economy we can gain lost ground, with investment in research and innovation.
We are promoting the synergies between research and production.
Our universities can generate knowledge and value and can consolidate the position of our country at the top of the developed economies in the global competition.
Human capital is our most important asset and so we must not give in to an outdated model of development which is based on the degradation of labour and its role in the development process.
The funding of this effort requires new and flexible approaches:
We have redesigned the financial tools.
We have increased the Public Investment Programme.
We are absorbing ESPA funds without delays.
We have passed thoroughly modern development legislation based on the new requirements of the times.
We have set our banking system to a new and sound basis.
Bank deposits are returning and the issue of “red loans” has begun to be dealt with effectively, giving relief to the real economy from the noose of over-indebtedness and insufficient liquidity.
Restarting large projects in road and rail networks, upgrading ports, investments in digital infrastructure and the flagship investments in a wide range of sectors and areas of production such as Energy, Tourism, Transport and Construction – these are changing expectations also at the base of the economy.
The licencing of businesses is being accelerated in an unprecedented way by electronic means and decades-old bureaucratic hurdles are being removed.
The battle with bureaucracy is daily.
The State is being modernised, it is becoming faster and more efficient.
The rules of law and equal treatment are being strenghened.
Everybody knows the rules of the "game" and there are no opaque and secret understandings.
In attempting to attract investment I am personally involved in the task force that comes into direct contact with investors and will resolve there and then any problems that prevent the success of investment projects.
Development with social justice
Development with social justice - they are not mutually exclusive, opposing concepts, but mutually re-inforcing and closely related."
The Prime Minister said he was not trying to describe an ideal situation, but to show the realistic possibilities of the Greek economy.
He acknowledged that there are problems and challenges that we must overcome collectively and raised the issue of high taxation: "This is a difficult political decision taken under the pressing weight of extraordinary circumstances that the country found itself in and the pressure from our lenders to go through the long period of the shortfalls that led us to the crisis. But our belief was, when we took that decision, and so it remains, that these circumstances cannot be permanent but are extraordinary. And the exit from the crisis will allow once more the reduction of tax rates.
From 2019 the creation of the fiscal space for reducing tax rates
This will happen soon, immediately and is already provided for in the medium-term programme. By 2019 we will begin to see the fiscal space being created. Our ally here is the credible and sustained fiscal adjustment which we have shaped in a systematic way.
Because you know that this situation did not arise in a vacuum but has deep historical causes spanning the entire length of the post-dictatorship period -
-The loss of VAT revenue for whole decades
-The fragmentation of the tax mechanism.
-The smuggling of fuel and cigarettes.
-The peculiar tax immunity and tax exemption of some privileged people.
-The socialization of enterprises’ losses with their privileged access to liquidity.
All these things deprived the Greek economy of billions of resources and contributed to the state’s fiscal train crash.
To this must be added an international phenomenon, and I am referring to the socially unfair, even if legal practice of tax avoidance through tax havens.
For us this is not a case where the legal is moral, nor do the sometimes high State taxes justify this practice. The taxation of wealth for the provision of public goods and the support of the Welfare State is postwar gain and a fundamental legitimate pillar of democracy."
"We have implemented reforms that the country has needed for decades, such as:
-The independence of the authority of the public revenue.
-The introduction of electronic payment systems.
-The law on voluntary disclosure of income.
-Measures to combat the smuggling of fuel and cigarettes.
-Rigorous public procurement.
-The control and containment of expenditure of the Ministries where this is possible. In this way we have increased social spending, because we have cut waste in each Ministry.
All the above measures coupled with a return to growth in the medium term will lift the tax burden from businesses and households.
Third Assessment Completed
After a very brief discussion, Eurozone Finance Ministers approved the staff-level agreement (SLA) for the Third Assessment of the Greek programme, Government sources said on Monday.
“It is excellent we have an agreement on time,” commented Eurogroup President Jeroen Dijsselbloem, adding that Eurozone finance ministers will now discuss the next steps, the prior actions that must be implemented and the decision-making process going forward, which will include ratification by national parliaments and the European Stability Mechanism.
Eurozone Finance Ministers acknowledged the progress made and the next step is the completion of the prerequisite actions in December or early January, said French Commissioner Moscovici.
He reiterated that the technical agreement is a "good sign" and that paves the way for the strategic discussions that will take place next year about the end of the programme.
As regards the budget, he noted that all sides agree that Greece will exceed the primary surplus target of 1.5% in 2017 and that agreement had also been reached about the 2018 budget in order for Greece to achieve the primary surplus target 3.5%.
Agreement was also reached with regard to the measures for ensuring financial stability in order to improve the business environment, but also on the "sensitive" point of the energy market. Also agreed were measures for the modernisation of the public administration but also for the development strategy, which said Commissioner Moscovici is entirely the responsibility of the Greek Government.
The head of the European Stability Mechanism, Klaus Regklingk welcomed the achievement of the technical agreement: "I hope that the implementation of the reforms will be completed soon in order to trigger the next installment in late January."
After a very brief discussion, Eurozone Finance Ministers approved the staff-level agreement (SLA) for the Third Assessment of the Greek programme, Government sources said on Monday.
“It is excellent we have an agreement on time,” commented Eurogroup President Jeroen Dijsselbloem, adding that Eurozone finance ministers will now discuss the next steps, the prior actions that must be implemented and the decision-making process going forward, which will include ratification by national parliaments and the European Stability Mechanism.
Eurozone Finance Ministers acknowledged the progress made and the next step is the completion of the prerequisite actions in December or early January, said French Commissioner Moscovici.
He reiterated that the technical agreement is a "good sign" and that paves the way for the strategic discussions that will take place next year about the end of the programme.
As regards the budget, he noted that all sides agree that Greece will exceed the primary surplus target of 1.5% in 2017 and that agreement had also been reached about the 2018 budget in order for Greece to achieve the primary surplus target 3.5%.
Agreement was also reached with regard to the measures for ensuring financial stability in order to improve the business environment, but also on the "sensitive" point of the energy market. Also agreed were measures for the modernisation of the public administration but also for the development strategy, which said Commissioner Moscovici is entirely the responsibility of the Greek Government.
The head of the European Stability Mechanism, Klaus Regklingk welcomed the achievement of the technical agreement: "I hope that the implementation of the reforms will be completed soon in order to trigger the next installment in late January."
"Both the Greek side and the Institutions have worked hard for this result" said Greek Finance Minister Euclid Tsakalotos.
"Today was, in the first round of the Eurogroup, a very good session for Greece. And it was very good, because all the institutions have made highly positive comments that we have completed the technical agreement extremely quickly. Everyone worked hard to get this result - both the Greek side and the Institutions. Of course now we must complete the prerequisites as soon as possible, something to which we have committed.
Also, it was a good meeting for Greece because the head of the European Stability Mechanism, Klaus Regklingk, announced the impact of the short-term measures on the debt and made clear that it was better than expected, as the reduction of the debt/GDP ratio by 2060 will reach 25% instead of 20% which he originally expected. Overall it was a very good meeting, a lot of work remains, but Greece is now turning the page and even more important is that there is a common acceptance that this is taking place. With this data I expect an even better meeting on January 22nd."
"Today was, in the first round of the Eurogroup, a very good session for Greece. And it was very good, because all the institutions have made highly positive comments that we have completed the technical agreement extremely quickly. Everyone worked hard to get this result - both the Greek side and the Institutions. Of course now we must complete the prerequisites as soon as possible, something to which we have committed.
Also, it was a good meeting for Greece because the head of the European Stability Mechanism, Klaus Regklingk, announced the impact of the short-term measures on the debt and made clear that it was better than expected, as the reduction of the debt/GDP ratio by 2060 will reach 25% instead of 20% which he originally expected. Overall it was a very good meeting, a lot of work remains, but Greece is now turning the page and even more important is that there is a common acceptance that this is taking place. With this data I expect an even better meeting on January 22nd."
Commission of Inquiry into Health Scandals continues its work
"Before 2102 the Centre for Disease Control and Prevention [ΚΕΕΛΠΝΟ] had purchased millions of vaccine doses and syringes - enough for the entire Balkan Region," said the former Deputy Minister of Health, Fotini Skopouli.
With her deposition, the Commission of Inquiry that is investigating the health scandals, continued.
Former Deputy Minister Skopouli, who came to the Commission voluntarily, in her lengthy statement, describing it in her capacity as a doctor, characterised the ΚΕΕΛΠΝΟ as “a black hole - how ever much money you throw it into it, it gets lost”. She made the accusation that “ΚΕΕΛΠΝΟ along with the political leadership became a tight corset that led to ineffectiveness in its actions and was used for political advantage, not clearly for public health.”
"The ΚΕΕΛΠΝΟ does politics. Nothing else,” she said, noting however that "it is difficult to prove any scandal. And that is why the ΚΕΕΛΠΝΟ was set up the way it was so that it would not be easy to prove anything."
"Before 2102 the Centre for Disease Control and Prevention [ΚΕΕΛΠΝΟ] had purchased millions of vaccine doses and syringes - enough for the entire Balkan Region," said the former Deputy Minister of Health, Fotini Skopouli.
With her deposition, the Commission of Inquiry that is investigating the health scandals, continued.
Former Deputy Minister Skopouli, who came to the Commission voluntarily, in her lengthy statement, describing it in her capacity as a doctor, characterised the ΚΕΕΛΠΝΟ as “a black hole - how ever much money you throw it into it, it gets lost”. She made the accusation that “ΚΕΕΛΠΝΟ along with the political leadership became a tight corset that led to ineffectiveness in its actions and was used for political advantage, not clearly for public health.”
"The ΚΕΕΛΠΝΟ does politics. Nothing else,” she said, noting however that "it is difficult to prove any scandal. And that is why the ΚΕΕΛΠΝΟ was set up the way it was so that it would not be easy to prove anything."
Third Assessment underway
2.12.2017
Greek Government Officials restarted direct talks with the country’s international creditors this week, as part of the Third Assessment of the Bailout Programme. The representatives of Greece’s lenders arrived in Athens on Tuesday.
The aim of the two sides is to reach an agreement on technical issues by the 4th December Eurogroup meeting, during which Eurozone Finance Ministers could rubber stamp the deal. However, analysts point out that there may be too many prior actions remaining for Greece to implement in order for an agreement to be approved by then.
Sources suggest that about thirty out of a total of one hundred prior actions outlined in the adjustment program are still pending. However, the Greek side is optimistic it can push through all the necessary legislation, especially since there has been progress recently on two critical issues.
The first issue that was recently unblocked was the finalization of the number of lignite production units Greece’s Public Power Corporation will put up for sale. Athens and the European Commission officials appear to have agreed on the sale of 40% of the state-run units.
Furthermore, there also appears to be agreement on the management of non-performing loans. In order to address the issue, the Government has agreed to take decisive action to allow the unfreezing of electronic auctions of foreclosed and seized property.
Meanwhile, the head of the Eurozone’s European Stability Mechanism (ESM), Klaus Regling, told German media that if Greece “continues to work so well, the Assessment of this Third Programme can be concluded quickly”.
Greek Deputy Prime Minister, Yannis Dragasakis in his presentation said that Greece is preparing to exit the bailout era once and for all in August 2018. According to Mr. Dragasakis, the country will not need additional measures or a precautionary credit line, and is already preparing for full debt market access at the end of its current adjustment programme.
Analysts recently stressed the risks for Greece stemming from the government crisis in Germany and the delay in the formation of a coalition government. It is suggested that faltering talks over the formation of a government in Germany could lead to the stalling of the Greek bailout assessment.
The Greek Deputy PM expressed the Government’s determination not to let developments in Germany to become a problem for Greece, by “moving ahead with our plan at an even faster pace”.
Eurostat Unemployment Figures
Greece’s unemployment rate in Greece fell to 20.6% in August, from 20.9% in July, Eurostat said on Thursday. The EU statistics agency said that Greece recorded one of the biggest percentage declines in unemployment compared with the previous year (23.4% to 20.6% in the period August 2016 -August 2017).
The number of unemployed people in Greece was 984,000 in August. The unemployment rate among men was 17.2% and among women 24.9%, while unemployment among young people (aged below 25 years old) fell to 40.2% from 41.4% in July.
In the Eurozone, the unemployment rate fell to 8.8% - its lowest levels since January 2009, while in the EU it fell to 7.4% - its lowest since November 2008.
Voluntary Bond Swap Success
The Government is laying the groundwork for the country’s return to capital markets and economic normality when the Bailout Programme expires in August 2018.
Another step was made towards full debt market access as part of a Finance Ministry road map to re-profile Greek debt and build a buffer for when the bailout programme funding finishes.
On Wednesday, Greece successfully completed a 30€ billion voluntary bond swap, with the take-up reportedly reaching 86% percent of bondholders, a development deemed highly positive by Greek officials. Greece offered to exchange a tranche of 20 government bonds issued after the debt restructuring in 2012 for five new benchmark issues. The new bonds have maturities ranging from five to 25 years and coupons from 3.5% to 4.2%.
Deputy Prime Minister, Yannis Dragasakis, told a Greek-Arab Economic Forum in Athens on Wednesday that the successful swap is “extremely important” and that institutional investors, banks and social security funds were providing Greece with a vote of confidence in its prospects and the new page it is turning. He said that Greece is gradually regaining its autonomy as growth is expanding, unemployment is dropping, bank’s dependence on emergency liquidity assistance is dropping and bank deposits are increasing. He added that the 3rd review of the country’s bailout program is also on track for timely completion.
According to the Greek Finance Ministry, Greece plans to tap bond markets again, possibly twice before the current bailout runs out in August 2018, in order to build a cash buffer of 12-15€ billion ahead of the completion of the Memorandum of Understanding with its international creditors.
Government Analysts point out that the successful completion of the bailout program – dubbed a “clean exit” by Prime Minister Alexis Tsipras – and proper access to bond markets is part of the SYRIZA-ANEL Government’s plan to stabilize the economic and political climate in Greece before Parliamentary Elections in 2019.
Sources suggest that about thirty out of a total of one hundred prior actions outlined in the adjustment program are still pending. However, the Greek side is optimistic it can push through all the necessary legislation, especially since there has been progress recently on two critical issues.
The first issue that was recently unblocked was the finalization of the number of lignite production units Greece’s Public Power Corporation will put up for sale. Athens and the European Commission officials appear to have agreed on the sale of 40% of the state-run units.
Furthermore, there also appears to be agreement on the management of non-performing loans. In order to address the issue, the Government has agreed to take decisive action to allow the unfreezing of electronic auctions of foreclosed and seized property.
Meanwhile, the head of the Eurozone’s European Stability Mechanism (ESM), Klaus Regling, told German media that if Greece “continues to work so well, the Assessment of this Third Programme can be concluded quickly”.
Greek Deputy Prime Minister, Yannis Dragasakis in his presentation said that Greece is preparing to exit the bailout era once and for all in August 2018. According to Mr. Dragasakis, the country will not need additional measures or a precautionary credit line, and is already preparing for full debt market access at the end of its current adjustment programme.
Analysts recently stressed the risks for Greece stemming from the government crisis in Germany and the delay in the formation of a coalition government. It is suggested that faltering talks over the formation of a government in Germany could lead to the stalling of the Greek bailout assessment.
The Greek Deputy PM expressed the Government’s determination not to let developments in Germany to become a problem for Greece, by “moving ahead with our plan at an even faster pace”.
Eurostat Unemployment Figures
Greece’s unemployment rate in Greece fell to 20.6% in August, from 20.9% in July, Eurostat said on Thursday. The EU statistics agency said that Greece recorded one of the biggest percentage declines in unemployment compared with the previous year (23.4% to 20.6% in the period August 2016 -August 2017).
The number of unemployed people in Greece was 984,000 in August. The unemployment rate among men was 17.2% and among women 24.9%, while unemployment among young people (aged below 25 years old) fell to 40.2% from 41.4% in July.
In the Eurozone, the unemployment rate fell to 8.8% - its lowest levels since January 2009, while in the EU it fell to 7.4% - its lowest since November 2008.
Voluntary Bond Swap Success
The Government is laying the groundwork for the country’s return to capital markets and economic normality when the Bailout Programme expires in August 2018.
Another step was made towards full debt market access as part of a Finance Ministry road map to re-profile Greek debt and build a buffer for when the bailout programme funding finishes.
On Wednesday, Greece successfully completed a 30€ billion voluntary bond swap, with the take-up reportedly reaching 86% percent of bondholders, a development deemed highly positive by Greek officials. Greece offered to exchange a tranche of 20 government bonds issued after the debt restructuring in 2012 for five new benchmark issues. The new bonds have maturities ranging from five to 25 years and coupons from 3.5% to 4.2%.
Deputy Prime Minister, Yannis Dragasakis, told a Greek-Arab Economic Forum in Athens on Wednesday that the successful swap is “extremely important” and that institutional investors, banks and social security funds were providing Greece with a vote of confidence in its prospects and the new page it is turning. He said that Greece is gradually regaining its autonomy as growth is expanding, unemployment is dropping, bank’s dependence on emergency liquidity assistance is dropping and bank deposits are increasing. He added that the 3rd review of the country’s bailout program is also on track for timely completion.
According to the Greek Finance Ministry, Greece plans to tap bond markets again, possibly twice before the current bailout runs out in August 2018, in order to build a cash buffer of 12-15€ billion ahead of the completion of the Memorandum of Understanding with its international creditors.
Government Analysts point out that the successful completion of the bailout program – dubbed a “clean exit” by Prime Minister Alexis Tsipras – and proper access to bond markets is part of the SYRIZA-ANEL Government’s plan to stabilize the economic and political climate in Greece before Parliamentary Elections in 2019.
The Future of Greek Agriculture ?
Speaking in Thessaloniki at the “Greek Farming Growth” event organised by Gaia Epixeirein, a consultancy which brings together farmers, the IT and banking sector, Nikos Pappas, Greece’s Digital Policy Minister pointed out that now the country is emerging from the bailout programme it has to enhance its digital skills in order to turn the page toward fair and sustainable growth.
The Greek Government aims to use Copernicus, the EU’s earth-monitoring system, to maximise the potential of smart farming. “Smart farming can create all the necessary conditions to improve production and the product itself as well as create new jobs in several sectors,” he said, adding that Greek products will not be competitive in the global market if they continue to be produced the way they do today.
“We want the technology of tomorrow, today available for all,” the minister added.
By giving farmers access to cutting-edge digital technology, the European Commission’s ambition is to make farming more competitive, reduce its environmental impact, cut food prices and better inform consumers about the food they eat.
But, digital farming is struggling to enter the mainstream, hampered by an ageing farming population and patchy broadband coverage in rural areas.
Broadband infrastructure in Greece’s rural areas is poor and Minister Pappas vowed to put an end to “digital exclusion”. With the “Rural Broadband Internet” project, which is co-funded by the EU, the Government aims to provide remote areas with 50Mbps internet speed.
“The Greek Government stands ready to take full advantage of Copernicus to maximise the potential of smart farming and speed up the introduction of new technologies in the farming sector,” he said, citing a number of pilot projects, which have already been launched in the country.
Ioannis Koufoudakis, CEO at GAIA Epicheirein, stressed that southern EU member states had common challenges to tackle, mainly the small and fragmented agricultural holdings.
A member of the EU farmers’ union Copa-Cogeca, GAIA Epicheirein is a newly established organisation of farmers and agri-cooperatives in Greece, representing 150,000 farmers.
Referring to a possible reduction in the CAP’s first pillar, the direct payments, CEO Koufoudakis said he believed it should be avoided, as well as any sudden shift towards a radically new CAP model.
“Because that is how the agricultural reality of the south has been structured for so many years and we cannot have radical changes because they will cause hostility to the new CAP,” he said.
The way to address the structural problems of the south is to boost “smart” farming. “We believe that new technologies should enter the field so that even small crops will be profitable.”
“In GAIA, we have tangible proof of the positive impact of smart farming on both productivity and sustainability through the first results of the large-scale pilot project we put in place with the help of our partner from the IT sector. The benefit increase from reduced inputs and improved yields varies between 18% – 36% depending on the crop type,” he emphasised.
"Greece needs new and functional structures and enhanced farm advisory services in order to give smart farming a boost, an agricultural expert said in a press interview. Farm advisory services have not worked out in our country even though they are key to ensuring our necessary transition to a more competitive and sustainable agricultural model."
CEO Koufoudakis explained that the EU satellites and the funds are in place but the market and the farmers should also be encouraged and incentivised to take them up and they should be accompanied during the whole process by strong farm advisory systems.
“There is a need for new and functional structures in Greece. Farm advisory services have not worked out in our country even though they are key to ensuring our necessary transition to a more competitive and sustainable agricultural model,” he noted.
Leonidas Gidaris, a physicist who cultivates cotton, talked about the need for a general change of the mindset. Referring to cooperatives, he noted that the mistakes made in the past have “penalised” their existence. “In our minds, and especially in smaller rural areas, the idea has prevailed that some farmers will get more gains and others will basically lose out if they participate in a cooperative,” he said, “ This might not be true, but serious shortcomings have been identified in the past.”
Markos Leggas is a young farmer and president of Pegasus Cooperative, specialising in grapes. The grapes are produced in the Corinthia region and exported to supermarkets in the UK through a producer organisation. “With the CAP, I and other producers have been able to secure the appropriate infrastructure that helped us reach new markets,” Mr. Leggas said.
As far as the post-2020 CAP is concerned, he explained that it should cut bureaucracy; support farmers when there is market instability and provide access to new technologies.
The young farmer also pinpointed the continual change of agricultural and tax policies in the country, stating that this acts as a disincentive for farmers to organise in cooperatives as it becomes impossible to forecast the expected profit. He also noted that the transition from the older generations of farmers to the young ones faces a number of difficulties.
He explained that for those who inherited land from their parents or grandparents the situation is easier. But for the newcomers, it proved to be difficult especially with the payments system.
“A significant number of the young people who were granted land for the first time and got funding for it have given up as they were not provided with the proper information […] they were not informed about the bureaucracy they would face,” he added.
Speaking in Thessaloniki at the “Greek Farming Growth” event organised by Gaia Epixeirein, a consultancy which brings together farmers, the IT and banking sector, Nikos Pappas, Greece’s Digital Policy Minister pointed out that now the country is emerging from the bailout programme it has to enhance its digital skills in order to turn the page toward fair and sustainable growth.
The Greek Government aims to use Copernicus, the EU’s earth-monitoring system, to maximise the potential of smart farming. “Smart farming can create all the necessary conditions to improve production and the product itself as well as create new jobs in several sectors,” he said, adding that Greek products will not be competitive in the global market if they continue to be produced the way they do today.
“We want the technology of tomorrow, today available for all,” the minister added.
By giving farmers access to cutting-edge digital technology, the European Commission’s ambition is to make farming more competitive, reduce its environmental impact, cut food prices and better inform consumers about the food they eat.
But, digital farming is struggling to enter the mainstream, hampered by an ageing farming population and patchy broadband coverage in rural areas.
Broadband infrastructure in Greece’s rural areas is poor and Minister Pappas vowed to put an end to “digital exclusion”. With the “Rural Broadband Internet” project, which is co-funded by the EU, the Government aims to provide remote areas with 50Mbps internet speed.
“The Greek Government stands ready to take full advantage of Copernicus to maximise the potential of smart farming and speed up the introduction of new technologies in the farming sector,” he said, citing a number of pilot projects, which have already been launched in the country.
Ioannis Koufoudakis, CEO at GAIA Epicheirein, stressed that southern EU member states had common challenges to tackle, mainly the small and fragmented agricultural holdings.
A member of the EU farmers’ union Copa-Cogeca, GAIA Epicheirein is a newly established organisation of farmers and agri-cooperatives in Greece, representing 150,000 farmers.
Referring to a possible reduction in the CAP’s first pillar, the direct payments, CEO Koufoudakis said he believed it should be avoided, as well as any sudden shift towards a radically new CAP model.
“Because that is how the agricultural reality of the south has been structured for so many years and we cannot have radical changes because they will cause hostility to the new CAP,” he said.
The way to address the structural problems of the south is to boost “smart” farming. “We believe that new technologies should enter the field so that even small crops will be profitable.”
“In GAIA, we have tangible proof of the positive impact of smart farming on both productivity and sustainability through the first results of the large-scale pilot project we put in place with the help of our partner from the IT sector. The benefit increase from reduced inputs and improved yields varies between 18% – 36% depending on the crop type,” he emphasised.
"Greece needs new and functional structures and enhanced farm advisory services in order to give smart farming a boost, an agricultural expert said in a press interview. Farm advisory services have not worked out in our country even though they are key to ensuring our necessary transition to a more competitive and sustainable agricultural model."
CEO Koufoudakis explained that the EU satellites and the funds are in place but the market and the farmers should also be encouraged and incentivised to take them up and they should be accompanied during the whole process by strong farm advisory systems.
“There is a need for new and functional structures in Greece. Farm advisory services have not worked out in our country even though they are key to ensuring our necessary transition to a more competitive and sustainable agricultural model,” he noted.
Leonidas Gidaris, a physicist who cultivates cotton, talked about the need for a general change of the mindset. Referring to cooperatives, he noted that the mistakes made in the past have “penalised” their existence. “In our minds, and especially in smaller rural areas, the idea has prevailed that some farmers will get more gains and others will basically lose out if they participate in a cooperative,” he said, “ This might not be true, but serious shortcomings have been identified in the past.”
Markos Leggas is a young farmer and president of Pegasus Cooperative, specialising in grapes. The grapes are produced in the Corinthia region and exported to supermarkets in the UK through a producer organisation. “With the CAP, I and other producers have been able to secure the appropriate infrastructure that helped us reach new markets,” Mr. Leggas said.
As far as the post-2020 CAP is concerned, he explained that it should cut bureaucracy; support farmers when there is market instability and provide access to new technologies.
The young farmer also pinpointed the continual change of agricultural and tax policies in the country, stating that this acts as a disincentive for farmers to organise in cooperatives as it becomes impossible to forecast the expected profit. He also noted that the transition from the older generations of farmers to the young ones faces a number of difficulties.
He explained that for those who inherited land from their parents or grandparents the situation is easier. But for the newcomers, it proved to be difficult especially with the payments system.
“A significant number of the young people who were granted land for the first time and got funding for it have given up as they were not provided with the proper information […] they were not informed about the bureaucracy they would face,” he added.
"Chaotic urban planning
and illegal construction"
25.11.2017
Chaotic urban planning and illegal construction in Athens played a central role in the flash floods last week, experts in Greece have claimed as the Government pledged emergency funding for victims made homeless by the disaster.
About 1,000 owners of homes and businesses are eligible for the assistance, according to government engineers dispatched to inspect the buildings.
“All buildings that have sustained damage will receive emergency funding of €5,000 while businesses in the same situation will receive €8,000,” government spokesman Dimitris Tzanakopoulos said on Monday.
Uncontrolled building on the outskirts of the Greek capital has resulted in numerous streams being concreted over, leaving rivers with no natural outlet to the sea. A lack of anti-flooding measures exacerbated the disaster.
Geologists described the floods as a tragedy waiting to happen. Streams in the foothills of the mountain where the neighbourhoods are located have been paved over in recent decades, including a stretch of riverbed where municipal authorities have constructed buildings.
“The tragedy is that in 1996 we had two victims in the same area [of Mandra] precisely because the flow of water had been blocked,” said Dimitris Papanikolaou, Emeritus Professor of Geology at Athens University. He added that such were the dangers of flooding in Mandra, it had been a course study for his doctoral students. “Nature had already warned that such intervention was disastrous, that not maintaining the natural flow of water was disastrous,” he said.
Aliki Mouriki, a prominent sociologist, said the floods had been very revealing because they had exposed all the “weaknesses and pathologies” of the modern Greek state.
“In the saddest possible way, they have not only highlighted the lack of urban planning but housing policies for the poor in working-class areas,” she said.
“When people’s pressing needs aren’t met, they resort to their own solutions – in this case illegal construction with no environmental considerations or respect for rules and regulations.”
Greek authorities continue to assess the damage caused by the floods in Attica. So far technical teams have carried out 1,154 building inspections and the Government has announced a compensation scheme.
A total 120 engineers from the Ministry of Infrastructure and Transport are involved in the building inspections, that commenced after the storm subsided in the Mandra-Idylia and Nea Peramos municipalities.
After inspecting 925 houses, businesses, public buildings, industrial facilities, storage rooms etc., in the Mandra-Idylia municipality, the technical teams found that an additional 733 buildings suffered serious damage, and their owners also qualify for compensation.
In the municipal district of Nea Peramos, 229 building inspections were conducted, with 222 of them found to be in need of serious repair.
Government announces Compensation Scheme
The immediate compensation for the victims whose homes were destroyed in Mandra and Nea Peramos, was announced by the Government on Monday morning.
Government spokesperson Dimitris Tzanakopoulos announced that all houses that have been deemed seriously damaged by the technical teams will receive a compensation of 5,000€ each. For damaged businesses, the compensation amount will be 8,000€.
According to Spokesman Tzanakopoulos, the compensation scheme will be included in an amendment to be tabled in the House today (Monday). The extraordinary aid for the flood victims will be distributed directly by the State Treasury, and according to the Government, will be tax-free.
The government’s goal is for inspections to be completed by the end of the week so that compensations can be disbursed as soon as possible. An initial subsidy of 600€ will be given to each flood victim. However, some problems have been created as many people found that their identification documents have been destroyed by the muddy floods.
Compensation will also be given to residents of Symi; Samothrace; Agia Larissa, and Katerini, which are other areas that have also been hit hard by the recent storms.
Interior Minister, Panos Skourletis, in direct response to requests submitted by the Municipalities of Mandra-Idylia, Megara and the municipal district of Nea Peramos, approved extraordinary financial aid amounting to 900,000€ to meet the immediate needs of the areas affected by the devastating flooding.
About 1,000 owners of homes and businesses are eligible for the assistance, according to government engineers dispatched to inspect the buildings.
“All buildings that have sustained damage will receive emergency funding of €5,000 while businesses in the same situation will receive €8,000,” government spokesman Dimitris Tzanakopoulos said on Monday.
Uncontrolled building on the outskirts of the Greek capital has resulted in numerous streams being concreted over, leaving rivers with no natural outlet to the sea. A lack of anti-flooding measures exacerbated the disaster.
Geologists described the floods as a tragedy waiting to happen. Streams in the foothills of the mountain where the neighbourhoods are located have been paved over in recent decades, including a stretch of riverbed where municipal authorities have constructed buildings.
“The tragedy is that in 1996 we had two victims in the same area [of Mandra] precisely because the flow of water had been blocked,” said Dimitris Papanikolaou, Emeritus Professor of Geology at Athens University. He added that such were the dangers of flooding in Mandra, it had been a course study for his doctoral students. “Nature had already warned that such intervention was disastrous, that not maintaining the natural flow of water was disastrous,” he said.
Aliki Mouriki, a prominent sociologist, said the floods had been very revealing because they had exposed all the “weaknesses and pathologies” of the modern Greek state.
“In the saddest possible way, they have not only highlighted the lack of urban planning but housing policies for the poor in working-class areas,” she said.
“When people’s pressing needs aren’t met, they resort to their own solutions – in this case illegal construction with no environmental considerations or respect for rules and regulations.”
Greek authorities continue to assess the damage caused by the floods in Attica. So far technical teams have carried out 1,154 building inspections and the Government has announced a compensation scheme.
A total 120 engineers from the Ministry of Infrastructure and Transport are involved in the building inspections, that commenced after the storm subsided in the Mandra-Idylia and Nea Peramos municipalities.
After inspecting 925 houses, businesses, public buildings, industrial facilities, storage rooms etc., in the Mandra-Idylia municipality, the technical teams found that an additional 733 buildings suffered serious damage, and their owners also qualify for compensation.
In the municipal district of Nea Peramos, 229 building inspections were conducted, with 222 of them found to be in need of serious repair.
Government announces Compensation Scheme
The immediate compensation for the victims whose homes were destroyed in Mandra and Nea Peramos, was announced by the Government on Monday morning.
Government spokesperson Dimitris Tzanakopoulos announced that all houses that have been deemed seriously damaged by the technical teams will receive a compensation of 5,000€ each. For damaged businesses, the compensation amount will be 8,000€.
According to Spokesman Tzanakopoulos, the compensation scheme will be included in an amendment to be tabled in the House today (Monday). The extraordinary aid for the flood victims will be distributed directly by the State Treasury, and according to the Government, will be tax-free.
The government’s goal is for inspections to be completed by the end of the week so that compensations can be disbursed as soon as possible. An initial subsidy of 600€ will be given to each flood victim. However, some problems have been created as many people found that their identification documents have been destroyed by the muddy floods.
Compensation will also be given to residents of Symi; Samothrace; Agia Larissa, and Katerini, which are other areas that have also been hit hard by the recent storms.
Interior Minister, Panos Skourletis, in direct response to requests submitted by the Municipalities of Mandra-Idylia, Megara and the municipal district of Nea Peramos, approved extraordinary financial aid amounting to 900,000€ to meet the immediate needs of the areas affected by the devastating flooding.
Prime Minister Alexis Tsipras receives the prize for "Political Courage"
"Our own courage is the courage shown by the Greek people in very difficult circumstances. We have stood up straight and continue to battle."
"It is a great honour, the Prize belongs to the Greek people, I collect in their name. Our own vigor is the courage shown by the Greek people in very difficult circumstances."
With these words the Prime Minister Alexis Tsipras received the prize for "Political Courage" that Patrick Basman, founder of the magazine Politique Internationale, awarded him on Thursday.
"From the Greek people and its own historical experience and maturity, we draw the courage and stamina to stand up straight in the twilight of the long ordeal of the last seven years," the Prime Minister noted, adding:
"Always dedicated to our plan and what we believed to be right for the vast majority, we managed to resist the "siren voices" and to steer slowly slowly the ship called Greece but also the ship called Europe into calmer waters. We avoided the disorderly or the organized bankruptcy, the plans of certain extremist circles for Greece’s exit from the euro, we stood up straight and are continuing to give battle. The economy is recovering at a relatively fast pace, with growth in the 2017 nearly at 2%. For the third consecutive year financial over-performance has been recorded which gives us the opportunity to support those who really need it, unemployment is falling; it has fallen more than six percentage points. In the first phase trial, the country gained access to the money markets on favourable terms. International rating agencies continually upgrade the position of the Greek economy - in short a picture is taking shape of an economy and a country that is recovering. The Greece today bears no relation to the country that in 2015 found itself in a state of needing emergency care."
"For us it is crucial that we don’t just successfully complete the programme however difficult that is and it seems that we are managing to do that and will successfully conclude it. The critical thing is that this time when we emerge from the crisis, something which and all our partners and the Institutions recognize and see that Greece is on a safe budgetary path with important vision of development."
"The crucial thing for us is to design the future without the errors of the past, with a different productive model for a Greece that is modern, sustainable and fair, with a fair productive model. Our main priority is the promise of work with prospects for equitable and sustainable development for young people so they can find hope in the future perspective. You can't build something new with worn-out materials."
"Our own courage is the courage shown by the Greek people in very difficult circumstances. We have stood up straight and continue to battle."
"It is a great honour, the Prize belongs to the Greek people, I collect in their name. Our own vigor is the courage shown by the Greek people in very difficult circumstances."
With these words the Prime Minister Alexis Tsipras received the prize for "Political Courage" that Patrick Basman, founder of the magazine Politique Internationale, awarded him on Thursday.
"From the Greek people and its own historical experience and maturity, we draw the courage and stamina to stand up straight in the twilight of the long ordeal of the last seven years," the Prime Minister noted, adding:
"Always dedicated to our plan and what we believed to be right for the vast majority, we managed to resist the "siren voices" and to steer slowly slowly the ship called Greece but also the ship called Europe into calmer waters. We avoided the disorderly or the organized bankruptcy, the plans of certain extremist circles for Greece’s exit from the euro, we stood up straight and are continuing to give battle. The economy is recovering at a relatively fast pace, with growth in the 2017 nearly at 2%. For the third consecutive year financial over-performance has been recorded which gives us the opportunity to support those who really need it, unemployment is falling; it has fallen more than six percentage points. In the first phase trial, the country gained access to the money markets on favourable terms. International rating agencies continually upgrade the position of the Greek economy - in short a picture is taking shape of an economy and a country that is recovering. The Greece today bears no relation to the country that in 2015 found itself in a state of needing emergency care."
"For us it is crucial that we don’t just successfully complete the programme however difficult that is and it seems that we are managing to do that and will successfully conclude it. The critical thing is that this time when we emerge from the crisis, something which and all our partners and the Institutions recognize and see that Greece is on a safe budgetary path with important vision of development."
"The crucial thing for us is to design the future without the errors of the past, with a different productive model for a Greece that is modern, sustainable and fair, with a fair productive model. Our main priority is the promise of work with prospects for equitable and sustainable development for young people so they can find hope in the future perspective. You can't build something new with worn-out materials."
Draft Budget for 2018
In a final draft budget submitted to Parliament on Tuesday, the Government outlined projections of a Primary Surplus - the fiscal surplus excluding debt repayments - of between 2.4% and 2.5% this year, and of more than 3.7%. The figures mark an upward revision. A draft budget submitted on October 2nd had put the surplus at 2.2% for 2017 and 3.57% for 2018.
“It makes more room for targeted social and tax policy interventions,” said Nikos Magginas, an economist at the National Bank.
The Government is also now expecting a 1.6% expansion in output this year, down from a previous forecast of 1.8%. The Greek economy is expected to expand by 2.5% in 2018 up from a 2.4% forecast.
The revision is in line with European Commission expectations.
Over the past year there has been nascent growth from a resurgence in tourism and a pick-up in domestic demand. Tourism revenues jumped 10.3% for the first nine months of 2017 to 12.99€ billion compared to a year ago, data from the Bank of Greece showed on Monday.
The final draft of the budget forecasts a cash buffer exceeding 15€ billion for the post-bailout programme period. That will be derived mainly from creditors’ financing, but also from revenues from new bond issues in 2018. Parliament is expected to vote on the draft budget in December.
Action against Tax Evasion & Smuggling
Figures for cases of tax evasion and smuggling, for which taxes, fines and surcharges were imposed in 2016, were presented by the Ministry of Finance to Parliament along with the Budget for 2018.
The evidence submitted shows that in the eight months January to August 2017, Audit Centres and Tax Offices carried out 16,640 checks and taxes, fines and surcharges amounting to 2.568€ billion were confirmed.
Specifically, as regards the data on tyax evasion and smuggling, five different lists were included depending on the circumstances:
-The first list concerns 44 cases of businesses accused of either smuggling fuel or cigarettes or of other customs offences.
-The second list concerns 898 cases of tax evasion, in which taxes, fines and surcharges have been imposed in the course of checks amounting to 2.21€ billion.
-The third list concerns 918 cases of tax evasion, exclusively by means of the production of false and fictitious invoices. The value of the false and fictitious invoices identified amounts to 297.9€ million.
-The fourth list concerns 342 companies accused of tax evasion of more than 150,000€. In particular, checks on these cases identified VAT and other unpaid taxes.
-The fifth concerns 165 businesses on which have been imposed a temporary freeze because of tax evasion.
In the eight months January to August 2017 the data of the Ministry of Finance show that 16,640 tax audits were carried out and taxes, fines and surcharges were assessed amounting to 2.568€ billion.
In 2016 the Tax Office sent 742,922 e-mails to taxpayers with arrears to the State informing them of the need to put their debt in order. From these debtors, 442,711 had responded and 274.76€ million had been received.
The Social Dividend 2018
"Some “born in the purple” don't know and can't understand the meaning of 400€, 500€, 700€, 900€ in support. For those “born in the purple” it is the cost of the stamp duty for their companies in tax havens.
But today it is time for the great majority of the society for whom we are fighting, bleeding and representing, to come first,"stressed the Prime Minister Alexis Tsipras speaking at the plenary of Parliament debating the distribution of the social dividend.
The Prime Minister spoke of "a move in the direction of social justice which is what the citizens who will receive the aid will call it while it suits some to interpret it as a communications gimmick."
Referring to the “Paradise Papers” and on the support given by Adonis Georgiadis, Vice President of New Democracy to tax-avoiding offshore account holders, he said: "You consider that tax evasion is legitimate and ethical.You are being procative when you wag your finger at us when it was you who until recently were on the Government benches. You took 65€ billion of measures, of which 30€ billion were taxes and today you have taken up the sword and are sabre rattling against excessive taxation. And you have the gall to defend those devious men and women who took their money abroad with offshore banks to avoid paying taxes."
In a final draft budget submitted to Parliament on Tuesday, the Government outlined projections of a Primary Surplus - the fiscal surplus excluding debt repayments - of between 2.4% and 2.5% this year, and of more than 3.7%. The figures mark an upward revision. A draft budget submitted on October 2nd had put the surplus at 2.2% for 2017 and 3.57% for 2018.
“It makes more room for targeted social and tax policy interventions,” said Nikos Magginas, an economist at the National Bank.
The Government is also now expecting a 1.6% expansion in output this year, down from a previous forecast of 1.8%. The Greek economy is expected to expand by 2.5% in 2018 up from a 2.4% forecast.
The revision is in line with European Commission expectations.
Over the past year there has been nascent growth from a resurgence in tourism and a pick-up in domestic demand. Tourism revenues jumped 10.3% for the first nine months of 2017 to 12.99€ billion compared to a year ago, data from the Bank of Greece showed on Monday.
The final draft of the budget forecasts a cash buffer exceeding 15€ billion for the post-bailout programme period. That will be derived mainly from creditors’ financing, but also from revenues from new bond issues in 2018. Parliament is expected to vote on the draft budget in December.
Action against Tax Evasion & Smuggling
Figures for cases of tax evasion and smuggling, for which taxes, fines and surcharges were imposed in 2016, were presented by the Ministry of Finance to Parliament along with the Budget for 2018.
The evidence submitted shows that in the eight months January to August 2017, Audit Centres and Tax Offices carried out 16,640 checks and taxes, fines and surcharges amounting to 2.568€ billion were confirmed.
Specifically, as regards the data on tyax evasion and smuggling, five different lists were included depending on the circumstances:
-The first list concerns 44 cases of businesses accused of either smuggling fuel or cigarettes or of other customs offences.
-The second list concerns 898 cases of tax evasion, in which taxes, fines and surcharges have been imposed in the course of checks amounting to 2.21€ billion.
-The third list concerns 918 cases of tax evasion, exclusively by means of the production of false and fictitious invoices. The value of the false and fictitious invoices identified amounts to 297.9€ million.
-The fourth list concerns 342 companies accused of tax evasion of more than 150,000€. In particular, checks on these cases identified VAT and other unpaid taxes.
-The fifth concerns 165 businesses on which have been imposed a temporary freeze because of tax evasion.
In the eight months January to August 2017 the data of the Ministry of Finance show that 16,640 tax audits were carried out and taxes, fines and surcharges were assessed amounting to 2.568€ billion.
In 2016 the Tax Office sent 742,922 e-mails to taxpayers with arrears to the State informing them of the need to put their debt in order. From these debtors, 442,711 had responded and 274.76€ million had been received.
The Social Dividend 2018
"Some “born in the purple” don't know and can't understand the meaning of 400€, 500€, 700€, 900€ in support. For those “born in the purple” it is the cost of the stamp duty for their companies in tax havens.
But today it is time for the great majority of the society for whom we are fighting, bleeding and representing, to come first,"stressed the Prime Minister Alexis Tsipras speaking at the plenary of Parliament debating the distribution of the social dividend.
The Prime Minister spoke of "a move in the direction of social justice which is what the citizens who will receive the aid will call it while it suits some to interpret it as a communications gimmick."
Referring to the “Paradise Papers” and on the support given by Adonis Georgiadis, Vice President of New Democracy to tax-avoiding offshore account holders, he said: "You consider that tax evasion is legitimate and ethical.You are being procative when you wag your finger at us when it was you who until recently were on the Government benches. You took 65€ billion of measures, of which 30€ billion were taxes and today you have taken up the sword and are sabre rattling against excessive taxation. And you have the gall to defend those devious men and women who took their money abroad with offshore banks to avoid paying taxes."
PM Tsipras at the Social Summit for Fair Employment and Growth
Speaking in Gothenburg at the "Social Summit for Fair Employment and Growth last Friday, Prime Minister Alexis Tsipras thanked "all our partners for the wave of solidarity that they have shown in their statements and in their efforts to show solidarity and help Greece in this difficult moment in any way they can."
Asked about the tragedy in Athens, he said he will be seeking specific assistance. He pointed out that the bureaucracy in Europe is something that must be borne in mind,"so first and foremost we are striving to help our citizens with own resources."
He raised the wider issue of the protection of European citizens from extreme natural phenomena associated with climate change. Sounding the alarm bell for this world-wide issue, he stated that it is also something that "we will discuss in Paris in November, as such events will confront us more frequently in future."
The Prime Minister described the Summit as very important, where the social pillar was discussed, and he stressed: "It is vital for us to discuss how to change the economic model that creates inequalities and causes a brain drain of the younger generation. It is vital that we protect free collective bargaining and create the conditions so that the European social acquis is there to help the younger generation."
PM Tsipras commented that he is not sure that it will be easy to implement the decisions taken today, however expressed a hope: "Perhaps it is a step, in order to convince all European leaders on the need to create a framework of protection for working people and the younger generation."
"We are talking about the need for a social protection framework, the need for a Social Pillar, in a Europe that in recent years has been led in a completely neo-liberal direction and this has created huge inequalities both within Member States and between Member States. "
He stressed the need "to discuss changing the economic model" and noted: "For us Greeks, who have suffered the consequences of the economic crisis, it is an opportunity for us to highlight once again the need for protection and the restoration of free collective bargaining and the social acquis with regard to labour legislation in Greece as well. At the same time, we must find ways to ensure that this social acquis also helps the younger generation of workers, a younger generation that does not even know the meaning of acquis communautaire."
"Perhaps it is an opportunity to discuss opening the door to some necessary changes and reforms that would protect the social acquis and labour rights."
Speaking in Gothenburg at the "Social Summit for Fair Employment and Growth last Friday, Prime Minister Alexis Tsipras thanked "all our partners for the wave of solidarity that they have shown in their statements and in their efforts to show solidarity and help Greece in this difficult moment in any way they can."
Asked about the tragedy in Athens, he said he will be seeking specific assistance. He pointed out that the bureaucracy in Europe is something that must be borne in mind,"so first and foremost we are striving to help our citizens with own resources."
He raised the wider issue of the protection of European citizens from extreme natural phenomena associated with climate change. Sounding the alarm bell for this world-wide issue, he stated that it is also something that "we will discuss in Paris in November, as such events will confront us more frequently in future."
The Prime Minister described the Summit as very important, where the social pillar was discussed, and he stressed: "It is vital for us to discuss how to change the economic model that creates inequalities and causes a brain drain of the younger generation. It is vital that we protect free collective bargaining and create the conditions so that the European social acquis is there to help the younger generation."
PM Tsipras commented that he is not sure that it will be easy to implement the decisions taken today, however expressed a hope: "Perhaps it is a step, in order to convince all European leaders on the need to create a framework of protection for working people and the younger generation."
"We are talking about the need for a social protection framework, the need for a Social Pillar, in a Europe that in recent years has been led in a completely neo-liberal direction and this has created huge inequalities both within Member States and between Member States. "
He stressed the need "to discuss changing the economic model" and noted: "For us Greeks, who have suffered the consequences of the economic crisis, it is an opportunity for us to highlight once again the need for protection and the restoration of free collective bargaining and the social acquis with regard to labour legislation in Greece as well. At the same time, we must find ways to ensure that this social acquis also helps the younger generation of workers, a younger generation that does not even know the meaning of acquis communautaire."
"Perhaps it is an opportunity to discuss opening the door to some necessary changes and reforms that would protect the social acquis and labour rights."
Flash flood hits the towns of Nea Peramos and Mandra near Athens
18.11.2017
Last Wednesday morning a flash flood hit the towns of Nea Peramos and Mandra, approximately 50 kilometres west of Athens killing at least 15 people and leaving hundreds homeless, with many blaming a system that allowed houses to be built on dried up river beds. Hundreds of homes and businesses were inundated.
Prime Minister Alexis Tsipras on Wednesday declared a three-day period of mourning and said support measures will be adopted for households and businesses affected. He is promising a full investigation. Flags flew at half-mast from state buildings and the Acropolis.
Newspapers expressed anger. “A Crime,” was the headline in Ta Nea daily. “The Deeds of Man,” wrote Avgi, referring to unlicenced building constructions.
Experts are blaming haphazard construction which obstructs the natural path for water runoff, and soil erosion on a mountain range hit by fires.
Both towns, Nea Peramos and Mandra, have been built along an old motorway linking Athens to Corinth. As building took place closer to the road, streams that would have drained runoff from the nearby Pateras mountains were blocked.
Prime Minister Alexis Tsipras on Wednesday declared a three-day period of mourning and said support measures will be adopted for households and businesses affected. He is promising a full investigation. Flags flew at half-mast from state buildings and the Acropolis.
Newspapers expressed anger. “A Crime,” was the headline in Ta Nea daily. “The Deeds of Man,” wrote Avgi, referring to unlicenced building constructions.
Experts are blaming haphazard construction which obstructs the natural path for water runoff, and soil erosion on a mountain range hit by fires.
Both towns, Nea Peramos and Mandra, have been built along an old motorway linking Athens to Corinth. As building took place closer to the road, streams that would have drained runoff from the nearby Pateras mountains were blocked.
"We must on the alert in order to confront the problems that have accumulated over decades" stressed the Prime Minister immediately after the conclusion of his visit to the affected area.
"We had the chance today to see with our own eyes the scale of the disaster. We are all shocked by what we were faced with, "said the Prime Minister. "Obviously these are rare and extreme weather conditions. However, this extreme event unfolded as it did as a result of accumulated inertia, of accumulated problems and shortcomings in infrastructure and also in spatial planning. A phenomenon certainly not just confined to West Athens but extends to other parts of the country. Let these people we have lost be the last. Let this be the trigger for all of us show vigilance over the restoration of the necessary infrastructure of spatial planning so that we do not ever have to live through such events ever again."
"At today’s meeting we were primarily occupied with the operational part and not forgetting that we still have people missing. The effort of the men of the Fire Service and volunteers is soul-stirring. Let us hope we will be able to find more people alive. May there be no further increase in the number of dead."
"We were occupied with practicalities of the immediate capacity to support households, the pumping out of water, the restoration of water supplies and of course the immediate priority of deploying teams of engineers to register the injured men and women.
"Our commitment is to move to immediate restoration, the healing of wounds and restoration of property. Whether it concerns households or businesses. I want to believe that the coordinated effort of local government, of Civil Protection will achieve the best possible results. For the people who have lost loved ones, for all of us who live in heavy mourning, I think everything else comes in second place. Let this be, I repeat, the trigger for vigilance to tackle the problems accumulated over decades."
"We had the chance today to see with our own eyes the scale of the disaster. We are all shocked by what we were faced with, "said the Prime Minister. "Obviously these are rare and extreme weather conditions. However, this extreme event unfolded as it did as a result of accumulated inertia, of accumulated problems and shortcomings in infrastructure and also in spatial planning. A phenomenon certainly not just confined to West Athens but extends to other parts of the country. Let these people we have lost be the last. Let this be the trigger for all of us show vigilance over the restoration of the necessary infrastructure of spatial planning so that we do not ever have to live through such events ever again."
"At today’s meeting we were primarily occupied with the operational part and not forgetting that we still have people missing. The effort of the men of the Fire Service and volunteers is soul-stirring. Let us hope we will be able to find more people alive. May there be no further increase in the number of dead."
"We were occupied with practicalities of the immediate capacity to support households, the pumping out of water, the restoration of water supplies and of course the immediate priority of deploying teams of engineers to register the injured men and women.
"Our commitment is to move to immediate restoration, the healing of wounds and restoration of property. Whether it concerns households or businesses. I want to believe that the coordinated effort of local government, of Civil Protection will achieve the best possible results. For the people who have lost loved ones, for all of us who live in heavy mourning, I think everything else comes in second place. Let this be, I repeat, the trigger for vigilance to tackle the problems accumulated over decades."
Paradise Papers ...
The head of Greece’s team of financial prosecutors, Marianna Psaroudaki, on Thursday ordered an investigation into the Greek nationals named in the “Paradise Papers”, a set of 13.4 million leaked confidential electronic documents relating to offshore investments.
Prosecutors are to check whether any of those included on the list of names should faces charges of tax evasion and money laundering.
There are reportedly 130 names of Greek citizens and 252 addresses in Greece in the over 6,000 pages – of a total of 6.5 million leaked documents - concerning Greek citizens and businesses, according to the US based International Consortium of Investigative Journalists (ICIJ).
The consortium has coordinated a global network of 96 media partners with 380 journalists from 67 countries, who have been analysing the papers.
The head of the economic prosecutor’s office, Marianna Psaroudaki, was appointed last June by the Supreme Judicial Council of the Areios Pagos, Greece’s Supreme Court. She has already ordered a preliminary investigation of the Greek citizens and businesses whose names appear in the papers.
The information comes from various tax havens, including Malta, Aruba, The Bahamas, Barbados, Bermuda, the Cook Islands, Dominica, Labuan, the Marshall Islands, Nevis Island, and Saint Lucia.
Ms. Psaroudaki’s team will compare the data gleaned from the Paradise Papers with other previously published and well-known lists of tax avoiders and tax evaders – such as the so-called Lagarde List and the Luxembourg Leaks - which include names of individuals or legal entities suspected of tax evasion and laundering.
Tax Authorities Thwarted
San Francisco-based company, Airbnb has refused to provide owner information to the Greek Finance Ministry in order for it to be able to tax owners who short-lease their properties to foreign visitors.
According to previous announcements, a tax was to have been levied on owners who use Airbnb and other short-term leasing platforms to rent to foreign visitors. Furthermore, short-term leasing would be regulated as well. Specifically, in an amendment voted last year, income from short-term leasing should not exceed 12,000€ per year, while there would also be a limit on how many days per year an owner could rent out their property through platforms such as Airbnb.
However, Airbnb; the most popular short-lease platform, reportedly refuses to give the Greek government the tax ID numbers of Greek citizens who use their platform.
The Greek Finance Ministry estimates that state revenues from short-term lease through platforms on the internet could be 48€ million per year. However, the tax cannot be implemented at present, and collection is postponed for 2018.
There is concern that tax authorities’ plans to tax short-term leasing at between 15% to 45% has led owners not to declare that they rent out their properties. The penalties, however, are stiff, reaching up to 20,000€.
The head of Greece’s team of financial prosecutors, Marianna Psaroudaki, on Thursday ordered an investigation into the Greek nationals named in the “Paradise Papers”, a set of 13.4 million leaked confidential electronic documents relating to offshore investments.
Prosecutors are to check whether any of those included on the list of names should faces charges of tax evasion and money laundering.
There are reportedly 130 names of Greek citizens and 252 addresses in Greece in the over 6,000 pages – of a total of 6.5 million leaked documents - concerning Greek citizens and businesses, according to the US based International Consortium of Investigative Journalists (ICIJ).
The consortium has coordinated a global network of 96 media partners with 380 journalists from 67 countries, who have been analysing the papers.
The head of the economic prosecutor’s office, Marianna Psaroudaki, was appointed last June by the Supreme Judicial Council of the Areios Pagos, Greece’s Supreme Court. She has already ordered a preliminary investigation of the Greek citizens and businesses whose names appear in the papers.
The information comes from various tax havens, including Malta, Aruba, The Bahamas, Barbados, Bermuda, the Cook Islands, Dominica, Labuan, the Marshall Islands, Nevis Island, and Saint Lucia.
Ms. Psaroudaki’s team will compare the data gleaned from the Paradise Papers with other previously published and well-known lists of tax avoiders and tax evaders – such as the so-called Lagarde List and the Luxembourg Leaks - which include names of individuals or legal entities suspected of tax evasion and laundering.
Tax Authorities Thwarted
San Francisco-based company, Airbnb has refused to provide owner information to the Greek Finance Ministry in order for it to be able to tax owners who short-lease their properties to foreign visitors.
According to previous announcements, a tax was to have been levied on owners who use Airbnb and other short-term leasing platforms to rent to foreign visitors. Furthermore, short-term leasing would be regulated as well. Specifically, in an amendment voted last year, income from short-term leasing should not exceed 12,000€ per year, while there would also be a limit on how many days per year an owner could rent out their property through platforms such as Airbnb.
However, Airbnb; the most popular short-lease platform, reportedly refuses to give the Greek government the tax ID numbers of Greek citizens who use their platform.
The Greek Finance Ministry estimates that state revenues from short-term lease through platforms on the internet could be 48€ million per year. However, the tax cannot be implemented at present, and collection is postponed for 2018.
There is concern that tax authorities’ plans to tax short-term leasing at between 15% to 45% has led owners not to declare that they rent out their properties. The penalties, however, are stiff, reaching up to 20,000€.
Support for "healthy entrepreneurship that respects labour relations and workers' rights."
On a visit to Xanthi, in northern Greece, on Tuesday, PM Alexis Tsipras underlined his Government's support for "healthy entrepreneurship that respects labour relations and workers' rights."
On a visit to Thrace Plastics, he said his administration "says no to parasitic and predatory business practices that for decades drained state funding before taking their money abroad and closing their businesses in Greece, leaving workers on the street."
Addressing the employees of Thrace Plastics, he said his Government supports businesses that are outward-looking and invest in research, innovation, and human resources," noting that a new growth law and European structural funding was available to boost these things.
He described Thrace Plastics as a "model of healthy entrepreneurship," saying this was not only due to the numbers but also to the working atmosphere.
Social Dividend 2017
Greece will distribute 1.4€ billion as a social dividend to pensioners and others hit hard by the country’s austerity programmes, Prime Minister Alexis Tsipras said on Monday.
The money is available because the country has beaten its 2017 bailout target for a Primary Surplus - which excludes debt servicing costs - of 1.75% of GDP, he said.
“For a second year, we are in a position to distribute a social dividend to the people who need it the most. Better prepared and more effective this year, we will be able to pay out an even bigger amount,” he said in a televised statement.
Last year, the Government paid out about 600€ million to low-income pensioners, a move that angered the country’s international lenders.
This year’s social dividend has been approved in principle by lenders, who are currently reviewing Greece’s bailout progress. “We (the Institutions) have been discussing these ideas with the Greek authorities. The announcements seem broadly in line with these discussions,” an EU Commission spokesman said.
PM Tsipras said about 720€ million will be distributed by mid-December to 3.4 million Greeks as a one-off, tax-free benefit, based on income and wealth criteria and household size. This out of the country’s population of about 11 million.
Another 315€ million will be directed to pensioners, he said, to compensate them for “unfair” health contribution payments in 2012-2016, while 360€ million will be paid to Greece’s biggest power utility, the Public Power Corporation to prevent electricity tariff increases.
On a visit to Xanthi, in northern Greece, on Tuesday, PM Alexis Tsipras underlined his Government's support for "healthy entrepreneurship that respects labour relations and workers' rights."
On a visit to Thrace Plastics, he said his administration "says no to parasitic and predatory business practices that for decades drained state funding before taking their money abroad and closing their businesses in Greece, leaving workers on the street."
Addressing the employees of Thrace Plastics, he said his Government supports businesses that are outward-looking and invest in research, innovation, and human resources," noting that a new growth law and European structural funding was available to boost these things.
He described Thrace Plastics as a "model of healthy entrepreneurship," saying this was not only due to the numbers but also to the working atmosphere.
Social Dividend 2017
Greece will distribute 1.4€ billion as a social dividend to pensioners and others hit hard by the country’s austerity programmes, Prime Minister Alexis Tsipras said on Monday.
The money is available because the country has beaten its 2017 bailout target for a Primary Surplus - which excludes debt servicing costs - of 1.75% of GDP, he said.
“For a second year, we are in a position to distribute a social dividend to the people who need it the most. Better prepared and more effective this year, we will be able to pay out an even bigger amount,” he said in a televised statement.
Last year, the Government paid out about 600€ million to low-income pensioners, a move that angered the country’s international lenders.
This year’s social dividend has been approved in principle by lenders, who are currently reviewing Greece’s bailout progress. “We (the Institutions) have been discussing these ideas with the Greek authorities. The announcements seem broadly in line with these discussions,” an EU Commission spokesman said.
PM Tsipras said about 720€ million will be distributed by mid-December to 3.4 million Greeks as a one-off, tax-free benefit, based on income and wealth criteria and household size. This out of the country’s population of about 11 million.
Another 315€ million will be directed to pensioners, he said, to compensate them for “unfair” health contribution payments in 2012-2016, while 360€ million will be paid to Greece’s biggest power utility, the Public Power Corporation to prevent electricity tariff increases.
In a press interview, Finance Minister Euclid Tsakalotos responded to New Democracy’s accusation that the Government had “cynically and deliberately crushed the middle class” by stating:
“It is strange that in our country honesty is perceived as cynicism. Already last year, when this year's budget was being discussed, I had explained the reasons why we had put a strain (not crushing) the middle class: because we had as an absolute priority the tackling of the humanitarian crisis and at the same time it took us time to achieve today’s results in tackling tax evasion. Cynicism for me is the so-called support for the middle classes by the two parties which for the last 40 years did absolutely nothing about tax evasion.
But, allow me also a comment that has to do with the Paradise Papers. The main issue for me is not the illegal acts of tax evasion, - they surely are many and important, - but the fact that the largest amount of all these billions is there legally. So, the cynicism of the elites and of the political parties that support them, is that they have built a system where the rich have complete protection from the institutional framework, can legally be exempted from taxation, and operate with different rules from the rest of us. This is what the middle classes need to know: that we have higher taxation, but fewer hospitals and schools, as a result of this fact. So, when the middle classes hear New Democracy and PASOK, and the corresponding parties world-wide, say that the middle classes are suffering from over-taxation, or from the wasteful State, they must know that the hypocrisy goes sky high.
It is necessary for the middle classes to know that the unfavourable position, into which they have come, is not the outcome of either “deliberate overtaxation”or of the Welfare State that supposedly supports the lazy, but is the result of 40 years of neoliberalism and of the governments that served it, deliberately indifferent to this situation.
“The middle classes can not hope for better days from the forces that built this system, but only from the forces which at the European level are trying to change it.“
“It is strange that in our country honesty is perceived as cynicism. Already last year, when this year's budget was being discussed, I had explained the reasons why we had put a strain (not crushing) the middle class: because we had as an absolute priority the tackling of the humanitarian crisis and at the same time it took us time to achieve today’s results in tackling tax evasion. Cynicism for me is the so-called support for the middle classes by the two parties which for the last 40 years did absolutely nothing about tax evasion.
But, allow me also a comment that has to do with the Paradise Papers. The main issue for me is not the illegal acts of tax evasion, - they surely are many and important, - but the fact that the largest amount of all these billions is there legally. So, the cynicism of the elites and of the political parties that support them, is that they have built a system where the rich have complete protection from the institutional framework, can legally be exempted from taxation, and operate with different rules from the rest of us. This is what the middle classes need to know: that we have higher taxation, but fewer hospitals and schools, as a result of this fact. So, when the middle classes hear New Democracy and PASOK, and the corresponding parties world-wide, say that the middle classes are suffering from over-taxation, or from the wasteful State, they must know that the hypocrisy goes sky high.
It is necessary for the middle classes to know that the unfavourable position, into which they have come, is not the outcome of either “deliberate overtaxation”or of the Welfare State that supposedly supports the lazy, but is the result of 40 years of neoliberalism and of the governments that served it, deliberately indifferent to this situation.
“The middle classes can not hope for better days from the forces that built this system, but only from the forces which at the European level are trying to change it.“
Trouble in Paradise
11.11.2017
The “Paradise Papers” are now an international investigation into the shadow world of billions of euros. German newspaper, the Sueddeutsche Zeitung has handed over for publication about 13.4 million documents.
They show how certain clients use company mailboxes to conceal criminal behaviour or to conceal money coming from dubious sources. The newspaper contends that the documents prove that companies like Nike, Apple, Facebook and Uber downsize their taxes to very low amounts. They reveal how political elites use this secret world: more than 120 politicians from nearly 50 countries are involved in one way or another.
There are more than 200 entries from Greece with business addresses in Ekali, Psykiko, Alimos - affluent suburbs of Athens and elsewhere. According to the first estimates more than 100 named individuals are involved.
The Economist Gabriel Zoukman has calculated that annually more than 600€ billion is moved by multinational companies to tax havens. “Tax havens help not only companies to avoid taxes but also individuals. And it is not only taxes; the super-rich are bypassing laws that annoy them - inheritance taxes, business liability or to protect themselves from creditors.
"For the super-rich, there is a world beyond the law," says sociologist Brooke Charington author of Capital without Borders. "The richest can enjoy the benefits of society without being subject to any restrictions." "This offshore world has an impact on all of us. Billions in taxes are missing from national economies - for example for the operation of hospitals, to create creches or to finance social security."
Economist Gabriel Zoukman has calculated that the super-rich have 7.9€ trillion parked in tax havens.
“The Government's intention is to clarify completely the issue of the Paradise Papers,” underlined the Minister of State and Government Spokesman, Dimitris Tzanakopoulos.
"The Government will check thoroughly all of the names contained in the Paradise Papers. After the authorities have checked the names, we shall see who has committed offences and who must be brought to justice and who will have to pay the appropriate administrative fines."
Mr. Tzanakopoulos also referred to a series of Government initiatives in the context of tax evasion and of transparency, such as checking the various lists, the Lagarde list, the voluntary disclosure of income, but also the legislative initiatives, such as the law on the use of information that comes in an unlawful way into the hands of the authorities, but also in terms of cooperation between countries for the exchange of information.
The Minister of State, referring to the Paradise Papers, said that such issues are not to be dealt with individually by each State, but rather the European Union and the Eurozone must take overall measures on tax evasion. "The Government has proposed a common fiscal policy to Member States of the EU and cooperation of fiscal authorities so that these practices can be dealt with."
In response to the Paradise Papers, Prime Minister Alexis Tsipras made this statement:
“The revelations contained in the Paradise Papers confirm the unjust, senseless, tragic reality of our world. The global elite hides vast sums of money in tax havens, systematically avoiding control and taxation of their financial activities. And this, at a time when billions of people throughout the world are bearing the weight of the economic crisis and unaccountable exploitation.
At a time when the excluded and the victims of poverty, of unemployment, of the disintegration of the Welfare State are multiplying.
This is an inhuman mechanism that characterizes the capitalism of our era, and which reproduces and broadens global inequalities.
Greece has a bitter experience, as one of the main reasons that led us to the crisis was the opaque action of a financial elite used to an easy life, the intertwining of its vested interests with the political system, and the stubborn resistance to shouldering their fair share of the burden- the burden they defiantly off-loaded, with the assistance of their political friends, onto the weakest.
The issue of tax havens is a challenge for the global community.
And it is a challenge the Greek Government also faces. There can be no fairer world, nor hope for working people, without transparency and fairness as regards tax burdens.
What can we do? With perseverance and determination let us wage the battle in all international organisations
Let us strengthen those forces of the media, who have the courage to uncover this massive mechanism of tax fraud.
And of course let us continue in our country to deliver even more decisively blows against tax evasion and for the enforcement of rules of transparency and justice."
To consolidate at last in Greece a fair development model that will support the needs of the many.
We are committed to this fight to meet the aspirations and hopes of the Greek people and to show that there is another way - the road of social justice, equality and solidarity.”
They show how certain clients use company mailboxes to conceal criminal behaviour or to conceal money coming from dubious sources. The newspaper contends that the documents prove that companies like Nike, Apple, Facebook and Uber downsize their taxes to very low amounts. They reveal how political elites use this secret world: more than 120 politicians from nearly 50 countries are involved in one way or another.
There are more than 200 entries from Greece with business addresses in Ekali, Psykiko, Alimos - affluent suburbs of Athens and elsewhere. According to the first estimates more than 100 named individuals are involved.
The Economist Gabriel Zoukman has calculated that annually more than 600€ billion is moved by multinational companies to tax havens. “Tax havens help not only companies to avoid taxes but also individuals. And it is not only taxes; the super-rich are bypassing laws that annoy them - inheritance taxes, business liability or to protect themselves from creditors.
"For the super-rich, there is a world beyond the law," says sociologist Brooke Charington author of Capital without Borders. "The richest can enjoy the benefits of society without being subject to any restrictions." "This offshore world has an impact on all of us. Billions in taxes are missing from national economies - for example for the operation of hospitals, to create creches or to finance social security."
Economist Gabriel Zoukman has calculated that the super-rich have 7.9€ trillion parked in tax havens.
“The Government's intention is to clarify completely the issue of the Paradise Papers,” underlined the Minister of State and Government Spokesman, Dimitris Tzanakopoulos.
"The Government will check thoroughly all of the names contained in the Paradise Papers. After the authorities have checked the names, we shall see who has committed offences and who must be brought to justice and who will have to pay the appropriate administrative fines."
Mr. Tzanakopoulos also referred to a series of Government initiatives in the context of tax evasion and of transparency, such as checking the various lists, the Lagarde list, the voluntary disclosure of income, but also the legislative initiatives, such as the law on the use of information that comes in an unlawful way into the hands of the authorities, but also in terms of cooperation between countries for the exchange of information.
The Minister of State, referring to the Paradise Papers, said that such issues are not to be dealt with individually by each State, but rather the European Union and the Eurozone must take overall measures on tax evasion. "The Government has proposed a common fiscal policy to Member States of the EU and cooperation of fiscal authorities so that these practices can be dealt with."
In response to the Paradise Papers, Prime Minister Alexis Tsipras made this statement:
“The revelations contained in the Paradise Papers confirm the unjust, senseless, tragic reality of our world. The global elite hides vast sums of money in tax havens, systematically avoiding control and taxation of their financial activities. And this, at a time when billions of people throughout the world are bearing the weight of the economic crisis and unaccountable exploitation.
At a time when the excluded and the victims of poverty, of unemployment, of the disintegration of the Welfare State are multiplying.
This is an inhuman mechanism that characterizes the capitalism of our era, and which reproduces and broadens global inequalities.
Greece has a bitter experience, as one of the main reasons that led us to the crisis was the opaque action of a financial elite used to an easy life, the intertwining of its vested interests with the political system, and the stubborn resistance to shouldering their fair share of the burden- the burden they defiantly off-loaded, with the assistance of their political friends, onto the weakest.
The issue of tax havens is a challenge for the global community.
And it is a challenge the Greek Government also faces. There can be no fairer world, nor hope for working people, without transparency and fairness as regards tax burdens.
What can we do? With perseverance and determination let us wage the battle in all international organisations
Let us strengthen those forces of the media, who have the courage to uncover this massive mechanism of tax fraud.
And of course let us continue in our country to deliver even more decisively blows against tax evasion and for the enforcement of rules of transparency and justice."
To consolidate at last in Greece a fair development model that will support the needs of the many.
We are committed to this fight to meet the aspirations and hopes of the Greek people and to show that there is another way - the road of social justice, equality and solidarity.”
Prime Minister Alexis Tsipras received on Saturday the 11-year-old Afghan boy Amir and his mother at the Maximos Mansion and in a symbolic gesture the Prime Minister presented Amir with a Greek flag.
Despite the fact that the boy had been chosen by lot to be his school’s flag-bearer in the October 28th “Οχι!” Day national holiday parade in Dafni, a southern suburb of Athens, Afghan-born Amir wasn’t allowed to carry the Greek Flag and was instead given the school sign to carry.
“Amir was deprived of the honour to carry our flag. Today I presented it to him in order to remember and honour our principles and values,” the Alexis Tsipras said on his Twitter account.
“Amir was deprived of the honour to carry our flag. Today I presented it to him in order to remember and honour our principles and values,” the Alexis Tsipras said on his Twitter account.
Tourism up
Tourism Minister Elena Kountoura talked about a “milestone year” for Greek Tourism citing an estimated 30 million arrivals in the country for 2017, including cruise visitors, and a “significant increase” in revenues.
“For the fourth year in a row there is ongoing growth of more than 7% annually, from 26 million in 2015 to 28 million in 2016,” Minister Kountoura said.
She said that Greece saw a double-digit growth in arrivals from “almost every European country”, including Germany, France and the Scandinavian nations, while she said numbers had also “increased significantly from dynamic markets such as the USA, Canada, Russia, the Middle East and China”.
The UK market also saw growth, with Greece noting a 6% increase in air arrivals from the UK in the first eight months of 2017.
This year also saw the introduction of more than 150 new flight routes. Ms.Kountoura said so far for 2018 “several new routes” had been added from European destinations, including the UK and Ireland. “Some routes that were originally scheduled to end in October have been extended until January,” she said.
Meanwhile, the cruise industry also continued to drive up visitor numbers, with the latest figures for 2016 showing that cruise passengers exceeded three million.
She was also optimistic that the country’s growth in visitor numbers would continue to increase overall. “In the last two years, our Ministry received 265 proposals concerning projects for four and five-star hotels, as well as for new integrated tourism resorts that are in various stages of being licenced.”
She added that there were also a number of large infrastructure projects continuing, including the upgrade of 14 regional airports “and a strategic investment at the Port of Piraeus, as a major hub”.
Tourism Minister Elena Kountoura talked about a “milestone year” for Greek Tourism citing an estimated 30 million arrivals in the country for 2017, including cruise visitors, and a “significant increase” in revenues.
“For the fourth year in a row there is ongoing growth of more than 7% annually, from 26 million in 2015 to 28 million in 2016,” Minister Kountoura said.
She said that Greece saw a double-digit growth in arrivals from “almost every European country”, including Germany, France and the Scandinavian nations, while she said numbers had also “increased significantly from dynamic markets such as the USA, Canada, Russia, the Middle East and China”.
The UK market also saw growth, with Greece noting a 6% increase in air arrivals from the UK in the first eight months of 2017.
This year also saw the introduction of more than 150 new flight routes. Ms.Kountoura said so far for 2018 “several new routes” had been added from European destinations, including the UK and Ireland. “Some routes that were originally scheduled to end in October have been extended until January,” she said.
Meanwhile, the cruise industry also continued to drive up visitor numbers, with the latest figures for 2016 showing that cruise passengers exceeded three million.
She was also optimistic that the country’s growth in visitor numbers would continue to increase overall. “In the last two years, our Ministry received 265 proposals concerning projects for four and five-star hotels, as well as for new integrated tourism resorts that are in various stages of being licenced.”
She added that there were also a number of large infrastructure projects continuing, including the upgrade of 14 regional airports “and a strategic investment at the Port of Piraeus, as a major hub”.
The Economic Climate Improving
4.11.2017
“The smooth and successful implementation of the Government’s economic programme is leading not only to the improvement of the economic climate and the well-founded faith in definitively exiting the Memoranda and the international stewardship, but also to the possibility of a "payback" for the social strata most affected by the crisis.”
That was the Government’s upbeat view of the run-up to the successful conclusion of the Third Assessment of the ESM’s Bailout Programme.
According to reliable information, Government and lenders are agreed that the Primary Surplus of 2017 will reach 2.8% of GDP, from which 700-800€ million can be distributed to the economically weak and 300-400€ million towards the State Treasury’s debt arrears. At the same time, as announced by Prime Minister Alexis Tsipras, it is expected that 700,000 people will be included in the Social Solidarity Income programme by the end of the year.
“We had the humanitarian crisis as an absolute priority, which is why we put pressure on the middle class.”
Finance Minister Euclid Tsakalotos on Thursday defended the Government’s decision to tax middle income earners in a bid to ease the burden on the less well-off. He made it clear the policy had been a necessary evil. “We had the humanitarian crisis as an absolute priority, which is why we put pressure on the middle class,” Minister Tsakalotos told Parliament’s Financial Affairs Committee, echoing the points made a day earlier by his alternate, Giorgos Houliarakis.
Minister Tsakalotos acknowledged that overtaxation “was not the optimum solution” but was the outcome of pressure from the International Monetary Fund, which he said always underestimates the performance of tax measures. “We did not want it – our arm was twisted.”
He went on to refute New Democracy’s claims that over-fulfilment of the Primary Surplus target comes from over-taxing citizens and the non-payment of State arrears. He attributed the increased revenues to the reduction in unemployment and the fight against tax evasion.
At the same time, in his presentation of the draft Budget for 2018, he stressed that the Greek Government bonds are currently enjoying the best performance of the last 7-8 years, pointing out to New Democracy MPs that "the markets constantly prove you wrong".
In response to criticism about the over-fulfilment of the Primary Surplus target and the social dividend, Minister Tsakalotos said he rejected in principle the assertion that the surplus derives from the non-payment of arrears to civil servants, since the debts are registered when they are created, regardless of when they will be repaid by the State. He conceded that the logic of the the over-fulfilment of the Primary Surplus "is not the optimal solution, but due to the tactics of the IMF which always underestimates the performance of tax measures and does not count at all the non-tax measures.
Focusing on the performance of non-tax measures, he pointed to two examples. The 448€ million due to 250,000-270,000 more workers paying more in social security contributions this year, while the corresponding figure for 2018 is expected to be 472€ million.At the same time, the voluntary disclosure programme allowing taxpayers to register undeclared income has delivered 400-450€ million as about 4€ billion has been declared.
Commenting on the performance of the voluntary disclosure programme allowing undeclared income to be registered, Minister Tsakalotos attributed it to fear from the operation of the software for cross-checking deposits, emphasizing the importance of reforms for the increase in revenue. Citing other examples, he noted the audit of expenditure which yielded 325€ million, the savings from the conclusion of centralised contracts by the Ministries for consumables and services, but also the operation of a single National Insurance Fund, which showed a surplus on what was needed for pensions.
He noted that during his contacts with investors not once was there any complaint about the level of taxation, instead investors were interested in the " rules of the game " being clear and for there to be financial tools for liquidity. He criticized previous New Democracy Governments' strategy of investment only in large projects with cheap money, observing that the NSRF is directed much more towards small and medium-sized enterprises.
"The completion of the Third Assessment will allow us to discuss the conditions of exit from the fiscal adjustment programme"
Speaking to the Athenian-Macedonian News Agency, Ms. Achtsioglou emphasised that the issues are being closed one by one and many of them are being settled at the level of the technical officers.
"The completion of the Third Assessment will allow us to discuss the conditions of exit from the fiscal adjustment programme," said the Minister of Labour, Social Security and Social Solidarity, Efi Achtsioglou.
"From the Government side it is clear that we are working with the aim of completing the Assessment as soon as possible and I estimate that all conditions exist for this to happen. So, the time left until the August 2018, will not just be the last step in a rigorous regime of stewardship, but will also be the period in which will be prepared the first dynamic and decisive step for the future."
As regards the State’s financial data, she stressed that "there is agreement on the over-performance of the 2017 budget and the debate about the social dividend distribution is unfolding, while there is agreement on the basic fiscal dimensions for 2018. "
"Agreement has been reached on arrangements for businesses that owe 20,000-50,000€ in the form of out-of-court settlements. Correspondingly, in the next immediate period, arrangements will start on citizens' debts to the pension funds and the tax office. The arrangements include haircuts of interest charges up to 85% and debt repayments in up to 120 instalments."
"In addition, and despite the scaremongering that has prevailed in the previous period, it has been recognized that a significant volume of outstanding Government arrears to individuals has been cleared, including the payment of thousands of outstanding pensions and on the basis of this, the sub-trance of 800€ million to our country has been approved."
At the same time, as regards widows' pensions, she indicated that it had been agreed to establish a minimum threshold at 384€ euros for the widower or widow and an extra 384€ for children, as well as the granting of access to the children both in the period of preparation for admission to Further and Higher Education, as well as for the duration of their studies.
According to reliable information, Government and lenders are agreed that the Primary Surplus of 2017 will reach 2.8% of GDP, from which 700-800€ million can be distributed to the economically weak and 300-400€ million towards the State Treasury’s debt arrears. At the same time, as announced by Prime Minister Alexis Tsipras, it is expected that 700,000 people will be included in the Social Solidarity Income programme by the end of the year.
“We had the humanitarian crisis as an absolute priority, which is why we put pressure on the middle class.”
Finance Minister Euclid Tsakalotos on Thursday defended the Government’s decision to tax middle income earners in a bid to ease the burden on the less well-off. He made it clear the policy had been a necessary evil. “We had the humanitarian crisis as an absolute priority, which is why we put pressure on the middle class,” Minister Tsakalotos told Parliament’s Financial Affairs Committee, echoing the points made a day earlier by his alternate, Giorgos Houliarakis.
Minister Tsakalotos acknowledged that overtaxation “was not the optimum solution” but was the outcome of pressure from the International Monetary Fund, which he said always underestimates the performance of tax measures. “We did not want it – our arm was twisted.”
He went on to refute New Democracy’s claims that over-fulfilment of the Primary Surplus target comes from over-taxing citizens and the non-payment of State arrears. He attributed the increased revenues to the reduction in unemployment and the fight against tax evasion.
At the same time, in his presentation of the draft Budget for 2018, he stressed that the Greek Government bonds are currently enjoying the best performance of the last 7-8 years, pointing out to New Democracy MPs that "the markets constantly prove you wrong".
In response to criticism about the over-fulfilment of the Primary Surplus target and the social dividend, Minister Tsakalotos said he rejected in principle the assertion that the surplus derives from the non-payment of arrears to civil servants, since the debts are registered when they are created, regardless of when they will be repaid by the State. He conceded that the logic of the the over-fulfilment of the Primary Surplus "is not the optimal solution, but due to the tactics of the IMF which always underestimates the performance of tax measures and does not count at all the non-tax measures.
Focusing on the performance of non-tax measures, he pointed to two examples. The 448€ million due to 250,000-270,000 more workers paying more in social security contributions this year, while the corresponding figure for 2018 is expected to be 472€ million.At the same time, the voluntary disclosure programme allowing taxpayers to register undeclared income has delivered 400-450€ million as about 4€ billion has been declared.
Commenting on the performance of the voluntary disclosure programme allowing undeclared income to be registered, Minister Tsakalotos attributed it to fear from the operation of the software for cross-checking deposits, emphasizing the importance of reforms for the increase in revenue. Citing other examples, he noted the audit of expenditure which yielded 325€ million, the savings from the conclusion of centralised contracts by the Ministries for consumables and services, but also the operation of a single National Insurance Fund, which showed a surplus on what was needed for pensions.
He noted that during his contacts with investors not once was there any complaint about the level of taxation, instead investors were interested in the " rules of the game " being clear and for there to be financial tools for liquidity. He criticized previous New Democracy Governments' strategy of investment only in large projects with cheap money, observing that the NSRF is directed much more towards small and medium-sized enterprises.
"The completion of the Third Assessment will allow us to discuss the conditions of exit from the fiscal adjustment programme"
Speaking to the Athenian-Macedonian News Agency, Ms. Achtsioglou emphasised that the issues are being closed one by one and many of them are being settled at the level of the technical officers.
"The completion of the Third Assessment will allow us to discuss the conditions of exit from the fiscal adjustment programme," said the Minister of Labour, Social Security and Social Solidarity, Efi Achtsioglou.
"From the Government side it is clear that we are working with the aim of completing the Assessment as soon as possible and I estimate that all conditions exist for this to happen. So, the time left until the August 2018, will not just be the last step in a rigorous regime of stewardship, but will also be the period in which will be prepared the first dynamic and decisive step for the future."
As regards the State’s financial data, she stressed that "there is agreement on the over-performance of the 2017 budget and the debate about the social dividend distribution is unfolding, while there is agreement on the basic fiscal dimensions for 2018. "
"Agreement has been reached on arrangements for businesses that owe 20,000-50,000€ in the form of out-of-court settlements. Correspondingly, in the next immediate period, arrangements will start on citizens' debts to the pension funds and the tax office. The arrangements include haircuts of interest charges up to 85% and debt repayments in up to 120 instalments."
"In addition, and despite the scaremongering that has prevailed in the previous period, it has been recognized that a significant volume of outstanding Government arrears to individuals has been cleared, including the payment of thousands of outstanding pensions and on the basis of this, the sub-trance of 800€ million to our country has been approved."
At the same time, as regards widows' pensions, she indicated that it had been agreed to establish a minimum threshold at 384€ euros for the widower or widow and an extra 384€ for children, as well as the granting of access to the children both in the period of preparation for admission to Further and Higher Education, as well as for the duration of their studies.
Greece and China sign agreements to promote economic cooperation
On Thursday in Athens, Greek and Chinese state officials and representatives of major enterprises signed a series of Memoranda of Understanding [MOUs] to promote bilateral economic cooperation in key sectors under the 2017-2019 Greece-China Action Plan.
The plan was sealed in May this year in Beijing during the visit of Greek Prime Minister Alexis Tsipras.
"The basis of this cooperation we believe is that Greece's growth strategy fits with China's One Belt, One Road Initiative and the benefits are mutual," Greek Deputy Economy and Development Minister Stergios Pitsiorlas said welcoming the Chinese delegation.
"Today we have the first tangible results. The signing of a series of agreements and MOUs are the first steps in the implementation of this action plan; therefore we are on the right path," he said.
On his part, Delegation Leader Ning said he is happy to see that the action plan has provided a platform for good collaboration and some initial tangible results have been achieved. He hoped that under the principle of planning together, building together and benefiting together, the two sides can enhance their cooperation on investment, trade, and industrial capacity under the Belt and Road Initiative.
On Thursday, the two sides specified details of cooperation projects included in the three-year action plan, and witnessed the signing of several MOUs which are expected to further boost bilateral ties.
Among them was the signing of an agreement between Shenhua, China's largest coal producer, through its subsidiary for renewable energy sources Shenhua Renewable Co Ltd and Copelouzos Group, one of the largest investment groups in Greece, for the acquisition of 75% of the shares of four wind parks developed by the Greek company.
In addition, a three-party agreement was signed between Shenhua, Copelouzos Group and the Public Power Corporation (PPC), Greece's largest power utility, for Shenhua to become a partner in the joint company of PPC and Copelouzos Group, PPC Solar Solutions.
ADMIE, Greece's power transmission operator, also signed an MOU with the China Development Bank, following the acquisition earlier this year of a minority stake in the company by China's State Grid.
ADMIE Chairman and CEO Manos Manoussakis said that cooperation with the Chinese side so far has been excellent - the efficiency of ADMIE has already improved and subsequently the company is seeking deeper collaboration with Chinese partners.
"Today we signed a very important Memorandum of Understanding with the China Development Bank in order to explore the possibilities for financing our new projects and our company's working capital," CEO Manoussakis said.
"Ahead of us, there are great projects for interconnection between the mainland of Greece and the Greek islands, and also international interconnection projects in the Mediterranean area," he added.
On Thursday in Athens, Greek and Chinese state officials and representatives of major enterprises signed a series of Memoranda of Understanding [MOUs] to promote bilateral economic cooperation in key sectors under the 2017-2019 Greece-China Action Plan.
The plan was sealed in May this year in Beijing during the visit of Greek Prime Minister Alexis Tsipras.
"The basis of this cooperation we believe is that Greece's growth strategy fits with China's One Belt, One Road Initiative and the benefits are mutual," Greek Deputy Economy and Development Minister Stergios Pitsiorlas said welcoming the Chinese delegation.
"Today we have the first tangible results. The signing of a series of agreements and MOUs are the first steps in the implementation of this action plan; therefore we are on the right path," he said.
On his part, Delegation Leader Ning said he is happy to see that the action plan has provided a platform for good collaboration and some initial tangible results have been achieved. He hoped that under the principle of planning together, building together and benefiting together, the two sides can enhance their cooperation on investment, trade, and industrial capacity under the Belt and Road Initiative.
On Thursday, the two sides specified details of cooperation projects included in the three-year action plan, and witnessed the signing of several MOUs which are expected to further boost bilateral ties.
Among them was the signing of an agreement between Shenhua, China's largest coal producer, through its subsidiary for renewable energy sources Shenhua Renewable Co Ltd and Copelouzos Group, one of the largest investment groups in Greece, for the acquisition of 75% of the shares of four wind parks developed by the Greek company.
In addition, a three-party agreement was signed between Shenhua, Copelouzos Group and the Public Power Corporation (PPC), Greece's largest power utility, for Shenhua to become a partner in the joint company of PPC and Copelouzos Group, PPC Solar Solutions.
ADMIE, Greece's power transmission operator, also signed an MOU with the China Development Bank, following the acquisition earlier this year of a minority stake in the company by China's State Grid.
ADMIE Chairman and CEO Manos Manoussakis said that cooperation with the Chinese side so far has been excellent - the efficiency of ADMIE has already improved and subsequently the company is seeking deeper collaboration with Chinese partners.
"Today we signed a very important Memorandum of Understanding with the China Development Bank in order to explore the possibilities for financing our new projects and our company's working capital," CEO Manoussakis said.
"Ahead of us, there are great projects for interconnection between the mainland of Greece and the Greek islands, and also international interconnection projects in the Mediterranean area," he added.
Action on Illegal Landfill
The Greek state is to force Municipalities and Regional Prefectures to shut down some 41 landfills that are still operating illegally across the country and to find alternative ways to manage waste.
Municipalities and Regions will be called upon to share the burden of the fines, totalling 37.1€ million, imposed on Greece by the European Court of Justice (ECJ) in December 2014 over dozens of illegal landfills.
Greece had been ordered by the court to pay a lump sum of 10€ million and a further penalty of 14.5€ million for every six-month period that it failed to comply with the demand to shut down the landfills.
Of the 41 illegal landfills operating today, 21 of them had been shut down and then reopened – 17 of the latter are in the Peloponnese.
The wheels were set in motion in February when the Environment Ministry issued a list outlining what share of the fines each Municipality or Region had to pay. The list was then sent in September to the Interior Ministry, which approved it a few days ago. The amount of money each Municipality or Prefecture will have to pay will be deducted from the amount of state funding they receive.
According to the list, the fines will apply to all municipalities or regions that were operating illegal landfills at the time the ECJ imposed the fines on Greece. The maximum amount a Municipality will have to pay is 320,000€ for each illegal landfill it operates.
TV Licences…
A Government Bill paving the way for a new tendering process for the granting of private television licenses was approved in Parliament on Wednesday. The auction will be overseen by the National Broadcasting Council, the industry’s independent regulator, and will take place by the end of the year, Digital Policy Minister Nikos Pappas told the House before the vote.
A Government-organised auction for TV licenses last year was revoked by the Greek Supreme Court.
The Greek state is to force Municipalities and Regional Prefectures to shut down some 41 landfills that are still operating illegally across the country and to find alternative ways to manage waste.
Municipalities and Regions will be called upon to share the burden of the fines, totalling 37.1€ million, imposed on Greece by the European Court of Justice (ECJ) in December 2014 over dozens of illegal landfills.
Greece had been ordered by the court to pay a lump sum of 10€ million and a further penalty of 14.5€ million for every six-month period that it failed to comply with the demand to shut down the landfills.
Of the 41 illegal landfills operating today, 21 of them had been shut down and then reopened – 17 of the latter are in the Peloponnese.
The wheels were set in motion in February when the Environment Ministry issued a list outlining what share of the fines each Municipality or Region had to pay. The list was then sent in September to the Interior Ministry, which approved it a few days ago. The amount of money each Municipality or Prefecture will have to pay will be deducted from the amount of state funding they receive.
According to the list, the fines will apply to all municipalities or regions that were operating illegal landfills at the time the ECJ imposed the fines on Greece. The maximum amount a Municipality will have to pay is 320,000€ for each illegal landfill it operates.
TV Licences…
A Government Bill paving the way for a new tendering process for the granting of private television licenses was approved in Parliament on Wednesday. The auction will be overseen by the National Broadcasting Council, the industry’s independent regulator, and will take place by the end of the year, Digital Policy Minister Nikos Pappas told the House before the vote.
A Government-organised auction for TV licenses last year was revoked by the Greek Supreme Court.
“Οχι!” Day: Prime Minister Tsipras’ message
"We are commemorating today the epic of 1940 - all those who, between Greece and their lives, chose Greece. And who showed in the mountains of Albania, in the towns and villages of the homeland, what it means to understand freedom from the terrible cutting of the sword" said PM Tsipras in his message to mark the anniversary of 28th October.
"With its battle against Fascism and Nazism and the sky-high onslaught of our National Resistance, the Greek people showed its love for freedom, its timeless desire to live in dignity and to manage its own affairs.
Nothing has been forgotten, no one has been forgotten. No sacrifice has gone to waste.
Today the country, after a period of darkness, crisis and stewardship, can look optimistically towards tomorrow. Our people have proved in recent difficult years that it has both the courage, and the capabilities, and the historical burden, to stand upright in the face of tempests.
We are not just hoping for a better future. We are building it step by step, in terms of freedom, solidarity, Democracy, social justice. We are certain that, as then, so now, nothing is going to be handed to us.
The future is in our own hands. And no one can take it from us."
"We are commemorating today the epic of 1940 - all those who, between Greece and their lives, chose Greece. And who showed in the mountains of Albania, in the towns and villages of the homeland, what it means to understand freedom from the terrible cutting of the sword" said PM Tsipras in his message to mark the anniversary of 28th October.
"With its battle against Fascism and Nazism and the sky-high onslaught of our National Resistance, the Greek people showed its love for freedom, its timeless desire to live in dignity and to manage its own affairs.
Nothing has been forgotten, no one has been forgotten. No sacrifice has gone to waste.
Today the country, after a period of darkness, crisis and stewardship, can look optimistically towards tomorrow. Our people have proved in recent difficult years that it has both the courage, and the capabilities, and the historical burden, to stand upright in the face of tempests.
We are not just hoping for a better future. We are building it step by step, in terms of freedom, solidarity, Democracy, social justice. We are certain that, as then, so now, nothing is going to be handed to us.
The future is in our own hands. And no one can take it from us."
Όχι Day
Remembered and Celebrated
28.10.2017
At 3 a.m. on the morning of October 28th, 1940, Emanuele Grazzi, the Italian Αmbassador to Greece, delivered an ultimatum from Benito Mussolini to Prime Minister Ioannis Metaxas, demanding that Greece allow the Italian army free unopposed passage to enter and occupy strategic military sites in Greece.
Faced with this demand, Metaxas delivered an unequivocal response in French, the diplomatic language of the day, “Alors, c’est la guerre.” This brief phrase, “Then, it is war,” quickly became “Οχι”.
At 5:30 a.m., the Italian army crossed the Greek-Albanian border into the mountainous Pindos region of Northern Greece. There they met fierce and unexpected resistance.
Despite Greece’s ultimate fall to Axis powers, PM Metaxas’ response resulted in a fatal diversion and delay for the Axis powers in general and the German army specifically. British military historian Sir John Keegan describes the Battle of Greece as “decisive in determining the future course of the Second World War.”
Faced with this demand, Metaxas delivered an unequivocal response in French, the diplomatic language of the day, “Alors, c’est la guerre.” This brief phrase, “Then, it is war,” quickly became “Οχι”.
At 5:30 a.m., the Italian army crossed the Greek-Albanian border into the mountainous Pindos region of Northern Greece. There they met fierce and unexpected resistance.
Despite Greece’s ultimate fall to Axis powers, PM Metaxas’ response resulted in a fatal diversion and delay for the Axis powers in general and the German army specifically. British military historian Sir John Keegan describes the Battle of Greece as “decisive in determining the future course of the Second World War.”
PM Tsipras in Ioannina
"We have to reverse all the negative dynamics, all the pathologies that have weighed down the Region of Epirus up until now.",
Focusing on exploiting the comparative advantages of the Region of Epirus, the Prime Minister presented planned actions in specific sectors as well as the financial tools that will be used in order to address accumulated decades of pathologies that have left a heavy stigma on the region.
From the platform of the Regional Conference in Ioannina, Alexis Tsipras stressed that the objective of the development being pursued by the Government is to reverse all the negative dynamics which have weighed down the Region of Epirus up until now - an economic development with growth in output and employment, with the reconstruction of the Welfare State, and with the shaping of a sustainable environment.
The Prime Minister pointed out that the main driver of growth in the region is agricultural production - farming and animal husbandry - based on solid pillars which go beyond the structural weaknesses in these sectors with, as a priority, the fastest possible rationalisation of agricultural subsidies and the removal of injustices in their distribution.
Through cooperatives, the generation of agricultural products on a large scale will be achieved in order to create competitiveness and opportunities for exports and this effort will be strengthened by the development of research and innovation in the region and the support of new scientists. As regards livestock, the Prime Minister described the financial tools to support the sector (The Public Investment Programme, ESPA and the Law of Development) with specific targetting on the agricultural sector, manufacturing, tourism and the knowledge-based economy.
Special reference was made by the Prime Minister to the exploration for hydrocarbons in the region while he also referred to the issue of supplying the towns in the region with gas and he put forward the possibilities of Alternative Energy Sources, especially geothermal, biomass and biogas which are to be linked to the primary sector.
Finally the Prime Minister's speech contained these important elements:
1. Large infrastructure projects such as road works (the recently delivered the Ionia Road) and works in the port of Igoumenitsa.
2. The support for Research and the connecting up of the University and the Technological Educational Institute [TEI] to local production activity.
3. Environmental issues such as water management, with an emphasis on the Amvrakikos Gulf and Lake Pamvotis.
4. The development of tourism in the region always in conjunction with the natural environment and cultural heritage.
"We have to reverse all the negative dynamics, all the pathologies that have weighed down the Region of Epirus up until now.",
Focusing on exploiting the comparative advantages of the Region of Epirus, the Prime Minister presented planned actions in specific sectors as well as the financial tools that will be used in order to address accumulated decades of pathologies that have left a heavy stigma on the region.
From the platform of the Regional Conference in Ioannina, Alexis Tsipras stressed that the objective of the development being pursued by the Government is to reverse all the negative dynamics which have weighed down the Region of Epirus up until now - an economic development with growth in output and employment, with the reconstruction of the Welfare State, and with the shaping of a sustainable environment.
The Prime Minister pointed out that the main driver of growth in the region is agricultural production - farming and animal husbandry - based on solid pillars which go beyond the structural weaknesses in these sectors with, as a priority, the fastest possible rationalisation of agricultural subsidies and the removal of injustices in their distribution.
Through cooperatives, the generation of agricultural products on a large scale will be achieved in order to create competitiveness and opportunities for exports and this effort will be strengthened by the development of research and innovation in the region and the support of new scientists. As regards livestock, the Prime Minister described the financial tools to support the sector (The Public Investment Programme, ESPA and the Law of Development) with specific targetting on the agricultural sector, manufacturing, tourism and the knowledge-based economy.
Special reference was made by the Prime Minister to the exploration for hydrocarbons in the region while he also referred to the issue of supplying the towns in the region with gas and he put forward the possibilities of Alternative Energy Sources, especially geothermal, biomass and biogas which are to be linked to the primary sector.
Finally the Prime Minister's speech contained these important elements:
1. Large infrastructure projects such as road works (the recently delivered the Ionia Road) and works in the port of Igoumenitsa.
2. The support for Research and the connecting up of the University and the Technological Educational Institute [TEI] to local production activity.
3. Environmental issues such as water management, with an emphasis on the Amvrakikos Gulf and Lake Pamvotis.
4. The development of tourism in the region always in conjunction with the natural environment and cultural heritage.
Finance Minister Tsakalotos in Ioannina
"The [Third]Assessment will be concluded and we will be ready by the end of it to create the conditions for a clean exit from the programme in August 2018" underlined Euclid Tsakalotos closing the first day’s work of the regional conference in Ioannina.
"Forget what you read in the newspapers," he said, contradicting the "doom and gloom" and he stressed that the Third Assessment will be concluded, new measures will not be imposed while the funds that are due will be disbursed. The Finance Minister explained that "very significant discussions" will follow the conclusion of the Assessment. "We did not accept the agreement in May because the IMF was saying that the debt is not sustainable, while it set out that the long-term primary surplus should be at least 2%. There was no 'sheet anchor' in the debate on the debt." "With the new wording of June - more than, but close to 2% - have this anchor," he noted, pointing out that "we know from this that the restructuring [of the debt] is on the table ".
"We all want a clean exit." "My goal is by August 2018 to be the least significant Minister in the Government." "My job is of indirect importance to the society". "The real work is education, hospitals, the rights, growth." "We have hit hard the small and medium-sized enterprises and the self-employed" with the level of taxation. Taxes were imposed to avoid cutting pensions and to make money available for growth, health, education. "In the medium-term of the next five years there will be 3.5€ billion for tax relief." He stated the Government's determination to restructure the tax burden and to combat tax evasion and smuggling.
"Again this year we will have the social dividend," he said, noting however that he still does not know the exact amount and where it will go. Among other things, he stressed the need for a new framework with new tools, emphasizing the role of Development Bank but also of cooperative enterprises.
"The [Third]Assessment will be concluded and we will be ready by the end of it to create the conditions for a clean exit from the programme in August 2018" underlined Euclid Tsakalotos closing the first day’s work of the regional conference in Ioannina.
"Forget what you read in the newspapers," he said, contradicting the "doom and gloom" and he stressed that the Third Assessment will be concluded, new measures will not be imposed while the funds that are due will be disbursed. The Finance Minister explained that "very significant discussions" will follow the conclusion of the Assessment. "We did not accept the agreement in May because the IMF was saying that the debt is not sustainable, while it set out that the long-term primary surplus should be at least 2%. There was no 'sheet anchor' in the debate on the debt." "With the new wording of June - more than, but close to 2% - have this anchor," he noted, pointing out that "we know from this that the restructuring [of the debt] is on the table ".
"We all want a clean exit." "My goal is by August 2018 to be the least significant Minister in the Government." "My job is of indirect importance to the society". "The real work is education, hospitals, the rights, growth." "We have hit hard the small and medium-sized enterprises and the self-employed" with the level of taxation. Taxes were imposed to avoid cutting pensions and to make money available for growth, health, education. "In the medium-term of the next five years there will be 3.5€ billion for tax relief." He stated the Government's determination to restructure the tax burden and to combat tax evasion and smuggling.
"Again this year we will have the social dividend," he said, noting however that he still does not know the exact amount and where it will go. Among other things, he stressed the need for a new framework with new tools, emphasizing the role of Development Bank but also of cooperative enterprises.
The Third Assessment of the Bailout Programme
The first meeting between Greek Government officials and the creditor institutions’ mission representatives took place in “a positive climate” on Monday.
According to Government sources, there was agreement on the fact that Greece has surpassed the agreed primary surplus target for 2017, as well as the target for the repayment of State arrears to individuals and businesses.
The European Stability Mechanism (ESM) Board met on Thursday [October 26th] and authorised the release of €0.8 billion [outstanding from the Second Assessment] to Greece for the clearance of arrears. This is the remaining amount of the third tranche of ESM financial assistance, approved on 7 July 2017. ESM Managing Director Klaus Regling said: “I am satisfied to note the Greek government’s continued commitment to clear arrears. The amount of arrears reduced in recent months means that Greece has overperformed the target set in the programme, and this should have a positive impact on the country’s economy. I hope our good cooperation with the Greek Government continues, so that the Third Assessment of the ESM programme can be completed in a timely manner.”
ESM Positive
"At the end of the Programme, next summer, we will look again at how sustainable the debt is."
If Greece does what the bailout programme says, the other members of the Eurozone will be ready, if necessary, to do more about the management of the Greek debt, declared Jeroen Dijsselbloem, President of the Eurogroup.
The EU Commissioner for Economic Affairs, Pierre Moscovici spoke about the phenomenal recovery of Greece’s public finances. Referring to the latest Eurostat figures, he said: "The current figures of Eurostat have confirmed the unprecedented recovery of Greek public financial data compared to 2009. This achievement is due to the determination of the Greek people who have made huge sacrifices to restore stability and to keep Greece within the euro. The European Commission has recognised these efforts, earlier this year, proposing Greece’s exit from the excessive deficit procedure."
The first meeting between Greek Government officials and the creditor institutions’ mission representatives took place in “a positive climate” on Monday.
According to Government sources, there was agreement on the fact that Greece has surpassed the agreed primary surplus target for 2017, as well as the target for the repayment of State arrears to individuals and businesses.
The European Stability Mechanism (ESM) Board met on Thursday [October 26th] and authorised the release of €0.8 billion [outstanding from the Second Assessment] to Greece for the clearance of arrears. This is the remaining amount of the third tranche of ESM financial assistance, approved on 7 July 2017. ESM Managing Director Klaus Regling said: “I am satisfied to note the Greek government’s continued commitment to clear arrears. The amount of arrears reduced in recent months means that Greece has overperformed the target set in the programme, and this should have a positive impact on the country’s economy. I hope our good cooperation with the Greek Government continues, so that the Third Assessment of the ESM programme can be completed in a timely manner.”
ESM Positive
"At the end of the Programme, next summer, we will look again at how sustainable the debt is."
If Greece does what the bailout programme says, the other members of the Eurozone will be ready, if necessary, to do more about the management of the Greek debt, declared Jeroen Dijsselbloem, President of the Eurogroup.
The EU Commissioner for Economic Affairs, Pierre Moscovici spoke about the phenomenal recovery of Greece’s public finances. Referring to the latest Eurostat figures, he said: "The current figures of Eurostat have confirmed the unprecedented recovery of Greek public financial data compared to 2009. This achievement is due to the determination of the Greek people who have made huge sacrifices to restore stability and to keep Greece within the euro. The European Commission has recognised these efforts, earlier this year, proposing Greece’s exit from the excessive deficit procedure."
"Greece is back!"
21.10.2017
Prime Minister Alexis Tsipras visited the United States of America this week. We report on some of the highlights.
Prime Minister Alexis Tsipras in Chicago
In Chicago last Saturday, Prime Minister Alexis Tsipras told members of the Greek American business community that Greece is finally emerging from its protracted financial crisis and is ready to attract foreign investors. He said "Greece is back!" and reiterated his Government’s commitment to attracting foreign investors. He added that changes that have been made to the country’s legal framework will make it easier to invest.
"I can say with certainty that "Greece is back", Greece " said Alexis Tsipras, at the reception hosted by the Consulate General of Greece in Chicago in the Prime Minister’s honour at the National Hellenic Museum.
He insisted that he is a champion of foreign investments and emphasised that he is personally leading the special task force that has been set up to attract them.
PM Tsipras also praised the role and the contribution of the Greek community in the USA, which he described as the basis on which Greek-American relations have historically been built.
In a tweet, he said that "Greeks abroad are our strongest link with the USA and the most important ambassadors of our country."
The Prime Minister, addressing the Greek-American Diaspora in Chicago, said:
"Especially now when Greece is emerging from the crisis, now that Greece is back, we need your help, and I believe that this power of the Diaspora, both economically and politically, will be a driving force in our own effort to make Greece powerful, strong and self-reliant again." "The country has been through a great drama over recent years but now it can walk on its own two feet and look with optimism to the future for the coming generations."
Following his tour of the Greek Museum, the Prime Minister said that "as Greeks we know to cherish our history, not just because we believe in honouring our glorious past, but also because we dare to believe that we can make history". PM Tsipras thanked the Greek American community of Chicago, and Mr. and Mrs. Kalamos for the Museum of Hellenism "that beats at the heart of the Greek community" for its promotion of Greek culture, culture, history and heritage of the country.
"These days, we are closing the last chapter and are beginning to write a new one." "The story was dark in the last seven years. For seven years we have lived through a terrible economic crisis with severe social consequences to which has been added the largest migration crisis that Europe has seen since World War II, which arrived at our doorstep."
"The Greek citizens were equal to the challenge, they made sacrifices, they resisted the lenders when needed and finally changed things for the better."
"Today, we stand strong again. Our economy is recovering and growing. Our borders are secure. More and more, day by day, our diplomacy is gaining in strength and reach,. I can say with certainty that Greece is back."
The Prime Minister explained that when he says that Greece is back, he does not mean back to the past that led Greece into the crisis. "We are leaving behind not just the crisis, but the model that led us to it." "We are strengthening our geostrategic position as a pillar of stability, security and cooperation in our region." He underlined in particular that "Greece is a reliable ally of the U.S.A. in one of the most important and at the same time volatile regions in the world; it is a country with an energetic and multifaceted foreign policy in the region and beyond, a country that is resolute, when necessary, in the face of threats to our sovereign rights. Greece is back". He emphasized that "as the support of the U.S.A. was crucial for us to cope with the crisis, the support of the U.S.A. is also necessary for us to get through it once and for all".
Therefore, he said, addressing himself to the Diaspora, your support is critical in attracting investment to Greece and promoting its interests in the region.
Alexis Tsipras said he was proud to be the first Greek Prime Minister to visit Chicago, "a city that keeps the flame of Hellenism alight." " The Greeks of the Diaspora may have left the ancestral land to make a better life, but they have never forgotten their homeland.
"We have a lot of work ahead of us and a great struggle, but we are determined to continue it together and achieve the best possible success."
PM Tsipras at the IMF
The Director General of the International Monetary Fund (IMF), Christine Lagarde met PM Alexis Tsipras on Monday in Washington to discuss recent developments in Greece and key issues ahead.
The decisive implementation of Greece’s adjustment programme along with debt relief is important in leading the country out of the crisis, DG Lagarde said.
PM Tsipras noted that Greece has turned a page after years of stagnation and that the efforts of its people are starting to pay off. He said that it is in everyone’s interest to wrap up the Third Programme Assessment as quickly as possible.
The completion of the Assessment will allow the Greek economy to maintain its upward trend, he continued, noting that the IMF will play an important role.
At the conclusion of the meeting, the IMF’s Managing Director released the following statement:
“I was very pleased to welcome Prime Minister Tsipras to the IMF today. I complimented him and the Greek people on the notable progress Greece has achieved in the implementation of difficult policies, including recent pension and income tax reforms. We had an excellent and productive meeting.
“The IMF recently approved in principle a new arrangement to support Greece’s policy programme. Resolute implementation of this programme, together with an agreement with Greece’s European partners on debt relief, are essential to support Greece’s return to sustainable growth and a successful exit from official financing next year. The Prime Minister and I are committed to working together towards this goal.”
In Chicago last Saturday, Prime Minister Alexis Tsipras told members of the Greek American business community that Greece is finally emerging from its protracted financial crisis and is ready to attract foreign investors. He said "Greece is back!" and reiterated his Government’s commitment to attracting foreign investors. He added that changes that have been made to the country’s legal framework will make it easier to invest.
"I can say with certainty that "Greece is back", Greece " said Alexis Tsipras, at the reception hosted by the Consulate General of Greece in Chicago in the Prime Minister’s honour at the National Hellenic Museum.
He insisted that he is a champion of foreign investments and emphasised that he is personally leading the special task force that has been set up to attract them.
PM Tsipras also praised the role and the contribution of the Greek community in the USA, which he described as the basis on which Greek-American relations have historically been built.
In a tweet, he said that "Greeks abroad are our strongest link with the USA and the most important ambassadors of our country."
The Prime Minister, addressing the Greek-American Diaspora in Chicago, said:
"Especially now when Greece is emerging from the crisis, now that Greece is back, we need your help, and I believe that this power of the Diaspora, both economically and politically, will be a driving force in our own effort to make Greece powerful, strong and self-reliant again." "The country has been through a great drama over recent years but now it can walk on its own two feet and look with optimism to the future for the coming generations."
Following his tour of the Greek Museum, the Prime Minister said that "as Greeks we know to cherish our history, not just because we believe in honouring our glorious past, but also because we dare to believe that we can make history". PM Tsipras thanked the Greek American community of Chicago, and Mr. and Mrs. Kalamos for the Museum of Hellenism "that beats at the heart of the Greek community" for its promotion of Greek culture, culture, history and heritage of the country.
"These days, we are closing the last chapter and are beginning to write a new one." "The story was dark in the last seven years. For seven years we have lived through a terrible economic crisis with severe social consequences to which has been added the largest migration crisis that Europe has seen since World War II, which arrived at our doorstep."
"The Greek citizens were equal to the challenge, they made sacrifices, they resisted the lenders when needed and finally changed things for the better."
"Today, we stand strong again. Our economy is recovering and growing. Our borders are secure. More and more, day by day, our diplomacy is gaining in strength and reach,. I can say with certainty that Greece is back."
The Prime Minister explained that when he says that Greece is back, he does not mean back to the past that led Greece into the crisis. "We are leaving behind not just the crisis, but the model that led us to it." "We are strengthening our geostrategic position as a pillar of stability, security and cooperation in our region." He underlined in particular that "Greece is a reliable ally of the U.S.A. in one of the most important and at the same time volatile regions in the world; it is a country with an energetic and multifaceted foreign policy in the region and beyond, a country that is resolute, when necessary, in the face of threats to our sovereign rights. Greece is back". He emphasized that "as the support of the U.S.A. was crucial for us to cope with the crisis, the support of the U.S.A. is also necessary for us to get through it once and for all".
Therefore, he said, addressing himself to the Diaspora, your support is critical in attracting investment to Greece and promoting its interests in the region.
Alexis Tsipras said he was proud to be the first Greek Prime Minister to visit Chicago, "a city that keeps the flame of Hellenism alight." " The Greeks of the Diaspora may have left the ancestral land to make a better life, but they have never forgotten their homeland.
"We have a lot of work ahead of us and a great struggle, but we are determined to continue it together and achieve the best possible success."
PM Tsipras at the IMF
The Director General of the International Monetary Fund (IMF), Christine Lagarde met PM Alexis Tsipras on Monday in Washington to discuss recent developments in Greece and key issues ahead.
The decisive implementation of Greece’s adjustment programme along with debt relief is important in leading the country out of the crisis, DG Lagarde said.
PM Tsipras noted that Greece has turned a page after years of stagnation and that the efforts of its people are starting to pay off. He said that it is in everyone’s interest to wrap up the Third Programme Assessment as quickly as possible.
The completion of the Assessment will allow the Greek economy to maintain its upward trend, he continued, noting that the IMF will play an important role.
At the conclusion of the meeting, the IMF’s Managing Director released the following statement:
“I was very pleased to welcome Prime Minister Tsipras to the IMF today. I complimented him and the Greek people on the notable progress Greece has achieved in the implementation of difficult policies, including recent pension and income tax reforms. We had an excellent and productive meeting.
“The IMF recently approved in principle a new arrangement to support Greece’s policy programme. Resolute implementation of this programme, together with an agreement with Greece’s European partners on debt relief, are essential to support Greece’s return to sustainable growth and a successful exit from official financing next year. The Prime Minister and I are committed to working together towards this goal.”
and at the White House
In a Joint Press Conference with US President Trump, on Tuesday, held in the Rose Garden of the White House, Prime Minister Tsipras made these remarks.
“I would like to warmly thank the President of the United States for his hospitality and for these very productive discussions we had today.
The friendship between our two countries is very strong, and it is based on our common democratic principles, on the values that we jointly share as peoples.
It is correct that the founders of the United States were inspired by Ancient Greece, and the Greek revolution was inspired by the American revolution for independence. At the same time, our relationship is also based on a very dynamic diaspora of Greek people here in the U.S.A.
As we underlined earlier, the Greek-U.S. relationships may be at their best compared to the past since the Second World War when our peoples worked together and fought together shoulder-to-shoulder against fascism. And I do believe that there are many reasons for this.
Today, our strategy is based on mutual respect, and it is fed by the significant support provided by the U.S.A. to Greece and to the Greek people during the hard times of the economic crisis, support for the exit of Greece from the crisis. And at this point, I would like to just focus a bit.
Greece today fulfills three basic objectives which do not only relate to Greece, but I would say that are of special significance at an international level.
First, it is dynamic coming out of the crisis, noting excellent growth rates, and it is beginning to attract investment and increase its exports, as we also see from the Greek-U.S.A. balance of trade. And it is leaving behind not only a crisis, but it’s leaving behind the economic model that led to the crisis.
Second, Greece today is the most significant pillar of cooperation in security in one of the most important but, at the same time, unstable and sensitive areas of the planet: a country with a dynamic, multi-dimensional foreign policy; a country which is a reliable partner and ally of the United States, which fulfills its NATO obligations. And it is in close cooperation in the defence sector with the United States. It is a country which maintains a dialogue with Turkey despite the difficulties that we face and the challenges, but knowing the very important European course of Turkey.
It is a country, also, that promotes cooperation with the Middle East and the Balkans, which contributes to the security and the growth of the area.
And third, Greece, being already pretty strong in maritime and tourism, is gradually becoming a significant crossroads for transportation and energy. I would like to mention the completion of the TAP pipeline and the EastMed pipeline.
And I would like to mention our ports from Athens and Thessaloniki, and the promotion of strong and fast rail connections with the rest of the Balkans. And in this context, it is very clear that our strategic cooperation with the United States is becoming more important than ever.
First of all, we look forward – and we are looking forward -- and this is a significant message of my visit here and my meeting with economic representatives -- we are looking forward to attracting U.S.A. investments and more substantive support from the U.S.A. in our effort to exit this terrible crisis.
The fact that the United States will be the honoured country in 2018 at the International Fair of Thessaloniki will play a significant role in this effort.
Second, because Greece can develop dynamically in creating a pillar of stability and security only if it is freed from the fundamental national concerns in the areas of security and defence.
The United States of America has a significant role to play in this matter, not only in the diplomatic but also in the area of defence. And we look forward, in this context, to the fair and viable solution in this specific issue of Cyprus based on the decisions of the U.N. Security Council, a solution for the benefit of all Cypriots without guarantors or occupying military forces that will give a new perspective to the region. But at the same time, we are stressing that the dangerous intervention-type presence of Turkey in the Aegean must end. It undermines on a daily basis the relationship between two NATO allies in the broader unstable and sensitive area.
Greece is a country that is always open to dialogue, but I want to be very clear: It will always protect decisively its sovereignty against illicit claims and disputes.
And with these thoughts, I would like to warmly thank President Trump for the wonderful discussions we held, which I believe will give a very substantial push to the existing dynamic cooperation. And we have created a work group between the Ministers of economy, the Secretaries for the economy so we can monitor our ability to have a substantial cooperation in investment, in economy, and in all sectors.”
Poverty in the European Union
In 2016, more than a third of the population was at risk of poverty or social exclusion in Bulgaria (40.4%), Romania (38.8%) and Greece (35.6%), according to Eurostat.
The at-risk-of-poverty or social exclusion rate has grown from 2008 in ten member-states, with the highest increases being recorded in Greece (from 28.1% in 2008 to 35.6% in 2016). Specifically, in Greece in 2016, 35.6% of the population (3.8 million people) were faced with the risk of poverty or social exclusion compared to 28.1% in 2008. In the EU the figure fell to 23.4% 2016 (117.5 million people), down from 2008 levels (23.7%).
The reduction in the number of people at risk of poverty or social exclusion in the EU is one of the key objectives of the strategy "Europe 2020".
Persons at-risk-of-poverty are those living in a household with a disposable income below the risk-of-poverty threshold, which is set at 60% of the national median disposable income (after social transfers).
17.2% of the EU population in 2016 were at risk of poverty after social transfers, meaning that their disposable income was below their national at-risk-of-poverty threshold.
In the EU in 2016, 7.5% of the population were severely materially deprived, meaning that they had living conditions constrained by a lack of resources such as not being able to afford to pay their bills, keep their home adequately warm, or take a one week holiday away from home.
This proportion of persons severely materially deprived in the EU has decreased compared with both 2015 (8.1%) and 2008 (8.5%).
Tackling Tax and National Insurance Violations
Tax and National Insurance law violations have been detected in 165 shops and businesses in popular tourist destinations during the summer season. In 17 of these, the procedure for a 48-hour suspension of their operation was applied.
The checks were carried out for the period from 1st June to 31st August, by the Financial Police Directorate and the Financial Police Department of northern Greece, in healthcare shops on Zakynthos, Mykonos, Santorini, Corfu, Paros, Crete, Thasos, Skiathos and in the wider region of the Prefectures of Attica, Thessaloniki, Chalkidiki, Argolis, Korinth, Messinia, Preveza, Thesprotia, Pieria, Kavala, Magnesia and Serres.
In Northern Greece and specifically in Thessaloniki checks were made in 23 shops. Infringements were confirmed in 22 of them, while in three of them the 48 hour suspension of operation was imposed. In Kavala and Thasos 10 inspections took place, in nine offences were identified and in three the 48 hour suspension was imposed. In Halkidiki of the 10 shops checked six violations were identified. In Pieria (Katerini, Leptokaryá) five checks and five infringements, in Volos and Skiathos 11 checks in shops found ten offences, at Serres two checks, one violation.
In Corfu nine checks and six breaches, in Zakynthos 56 checks and 32 offences, in Mykonos 26 and 15 offences, in Santorini 12 checks and 7 violations, in Crete 30 checks, 14 infringements and on Paros 11 checks and two offences.
In Attica in 19 shops 10 violations were identified, and one 48 hour suspension of operation was imposed, In Corinth (Loutraki, Kiato, Vrahati) nine checks and five infringements, in Argolis (Nafplio and Tolon among others) 12 checks and four offences, in Messinia ( Kalamata, Kardamili, Stupa etc.) there were 16 checks and 10 violations, in Sivota Thesprotia two checks and two infringements and in Parga five checks, five violations.
In a Joint Press Conference with US President Trump, on Tuesday, held in the Rose Garden of the White House, Prime Minister Tsipras made these remarks.
“I would like to warmly thank the President of the United States for his hospitality and for these very productive discussions we had today.
The friendship between our two countries is very strong, and it is based on our common democratic principles, on the values that we jointly share as peoples.
It is correct that the founders of the United States were inspired by Ancient Greece, and the Greek revolution was inspired by the American revolution for independence. At the same time, our relationship is also based on a very dynamic diaspora of Greek people here in the U.S.A.
As we underlined earlier, the Greek-U.S. relationships may be at their best compared to the past since the Second World War when our peoples worked together and fought together shoulder-to-shoulder against fascism. And I do believe that there are many reasons for this.
Today, our strategy is based on mutual respect, and it is fed by the significant support provided by the U.S.A. to Greece and to the Greek people during the hard times of the economic crisis, support for the exit of Greece from the crisis. And at this point, I would like to just focus a bit.
Greece today fulfills three basic objectives which do not only relate to Greece, but I would say that are of special significance at an international level.
First, it is dynamic coming out of the crisis, noting excellent growth rates, and it is beginning to attract investment and increase its exports, as we also see from the Greek-U.S.A. balance of trade. And it is leaving behind not only a crisis, but it’s leaving behind the economic model that led to the crisis.
Second, Greece today is the most significant pillar of cooperation in security in one of the most important but, at the same time, unstable and sensitive areas of the planet: a country with a dynamic, multi-dimensional foreign policy; a country which is a reliable partner and ally of the United States, which fulfills its NATO obligations. And it is in close cooperation in the defence sector with the United States. It is a country which maintains a dialogue with Turkey despite the difficulties that we face and the challenges, but knowing the very important European course of Turkey.
It is a country, also, that promotes cooperation with the Middle East and the Balkans, which contributes to the security and the growth of the area.
And third, Greece, being already pretty strong in maritime and tourism, is gradually becoming a significant crossroads for transportation and energy. I would like to mention the completion of the TAP pipeline and the EastMed pipeline.
And I would like to mention our ports from Athens and Thessaloniki, and the promotion of strong and fast rail connections with the rest of the Balkans. And in this context, it is very clear that our strategic cooperation with the United States is becoming more important than ever.
First of all, we look forward – and we are looking forward -- and this is a significant message of my visit here and my meeting with economic representatives -- we are looking forward to attracting U.S.A. investments and more substantive support from the U.S.A. in our effort to exit this terrible crisis.
The fact that the United States will be the honoured country in 2018 at the International Fair of Thessaloniki will play a significant role in this effort.
Second, because Greece can develop dynamically in creating a pillar of stability and security only if it is freed from the fundamental national concerns in the areas of security and defence.
The United States of America has a significant role to play in this matter, not only in the diplomatic but also in the area of defence. And we look forward, in this context, to the fair and viable solution in this specific issue of Cyprus based on the decisions of the U.N. Security Council, a solution for the benefit of all Cypriots without guarantors or occupying military forces that will give a new perspective to the region. But at the same time, we are stressing that the dangerous intervention-type presence of Turkey in the Aegean must end. It undermines on a daily basis the relationship between two NATO allies in the broader unstable and sensitive area.
Greece is a country that is always open to dialogue, but I want to be very clear: It will always protect decisively its sovereignty against illicit claims and disputes.
And with these thoughts, I would like to warmly thank President Trump for the wonderful discussions we held, which I believe will give a very substantial push to the existing dynamic cooperation. And we have created a work group between the Ministers of economy, the Secretaries for the economy so we can monitor our ability to have a substantial cooperation in investment, in economy, and in all sectors.”
Poverty in the European Union
In 2016, more than a third of the population was at risk of poverty or social exclusion in Bulgaria (40.4%), Romania (38.8%) and Greece (35.6%), according to Eurostat.
The at-risk-of-poverty or social exclusion rate has grown from 2008 in ten member-states, with the highest increases being recorded in Greece (from 28.1% in 2008 to 35.6% in 2016). Specifically, in Greece in 2016, 35.6% of the population (3.8 million people) were faced with the risk of poverty or social exclusion compared to 28.1% in 2008. In the EU the figure fell to 23.4% 2016 (117.5 million people), down from 2008 levels (23.7%).
The reduction in the number of people at risk of poverty or social exclusion in the EU is one of the key objectives of the strategy "Europe 2020".
Persons at-risk-of-poverty are those living in a household with a disposable income below the risk-of-poverty threshold, which is set at 60% of the national median disposable income (after social transfers).
17.2% of the EU population in 2016 were at risk of poverty after social transfers, meaning that their disposable income was below their national at-risk-of-poverty threshold.
In the EU in 2016, 7.5% of the population were severely materially deprived, meaning that they had living conditions constrained by a lack of resources such as not being able to afford to pay their bills, keep their home adequately warm, or take a one week holiday away from home.
This proportion of persons severely materially deprived in the EU has decreased compared with both 2015 (8.1%) and 2008 (8.5%).
Tackling Tax and National Insurance Violations
Tax and National Insurance law violations have been detected in 165 shops and businesses in popular tourist destinations during the summer season. In 17 of these, the procedure for a 48-hour suspension of their operation was applied.
The checks were carried out for the period from 1st June to 31st August, by the Financial Police Directorate and the Financial Police Department of northern Greece, in healthcare shops on Zakynthos, Mykonos, Santorini, Corfu, Paros, Crete, Thasos, Skiathos and in the wider region of the Prefectures of Attica, Thessaloniki, Chalkidiki, Argolis, Korinth, Messinia, Preveza, Thesprotia, Pieria, Kavala, Magnesia and Serres.
In Northern Greece and specifically in Thessaloniki checks were made in 23 shops. Infringements were confirmed in 22 of them, while in three of them the 48 hour suspension of operation was imposed. In Kavala and Thasos 10 inspections took place, in nine offences were identified and in three the 48 hour suspension was imposed. In Halkidiki of the 10 shops checked six violations were identified. In Pieria (Katerini, Leptokaryá) five checks and five infringements, in Volos and Skiathos 11 checks in shops found ten offences, at Serres two checks, one violation.
In Corfu nine checks and six breaches, in Zakynthos 56 checks and 32 offences, in Mykonos 26 and 15 offences, in Santorini 12 checks and 7 violations, in Crete 30 checks, 14 infringements and on Paros 11 checks and two offences.
In Attica in 19 shops 10 violations were identified, and one 48 hour suspension of operation was imposed, In Corinth (Loutraki, Kiato, Vrahati) nine checks and five infringements, in Argolis (Nafplio and Tolon among others) 12 checks and four offences, in Messinia ( Kalamata, Kardamili, Stupa etc.) there were 16 checks and 10 violations, in Sivota Thesprotia two checks and two infringements and in Parga five checks, five violations.
Draft Bill on Waste Management
in Parliament
14.10.2017
On Thursday, a draft bill on waste management was submitted to Parliament by the Ministry of Energy and the Environment.
EU law and directives on reuse, recovery, and recycling of waste are incorporated in the bill that will change the existing legislative framework in Greece where more than 80% of waste is still buried. It will also clarify issues relating to the Hellenic Recycling Agency.
The Ministry says that the draft bill aims at transforming the economy with the goal of creating a safer environment. The legislation will amend the basic institutional framework [Law 2939/2001] on the alternative management of packaging and other products, in line with the EU Directive 2015/720/EU, regulating issues concerning the Hellenic Organization for Recycling and other provisions.
According to the Ministry’s explanatory memorandum, the aim of the legislation is to reduce the existing significant evasion of taxes related to waste disposal. 81% of rubbish still goes to landfill.
The organizational role of the Hellenic Organization for Recycling [ΣΕΔ] is essential for the proper functioning of the market and dealing with conflicts of interests. Arrangements are being put in place for the reduction of non-recyclables, the streamlining of recycling costs and the channelling of resources to achieve optimal waste management alternatives."
The draft legislation clarifies the distributor’s responsibility for the implementation of the extended responsibility of the producer, while corresponding criminal and administrative sanctions are to be put in place for infringements of the obligations. At the same time, in line with the provisions of Directive 2015/720/EU, provision is to be introduced for measures to reduce the use of plastic bags.
Special emphasis is given to the separate collection of waste packaging material, so that it is recovered in the cleanest and purest possible form in order to achieve the necessary quality standards in their respective fields of recycling. Separate collection must be organized by both the Hellenic Organization for Recycling [ΣΕΔ] and the Municipalities.
The new provisions enable Municipalities independently to organise the alternative management of municipal waste themselves, while the new institutional framework provides for incentives and rewards for Municipalities on the basis of their results. Finally, the role and responsibility of the Greek Recycling Organisation [Ε.Ο.ΑΝ.] is strengthened both as an institution and in terms of human resources, with the aim of better coordination with the Hellenic Organization for Recycling [ΣΕΔ], the Local Authorities and the organisations of civil society.
EU law and directives on reuse, recovery, and recycling of waste are incorporated in the bill that will change the existing legislative framework in Greece where more than 80% of waste is still buried. It will also clarify issues relating to the Hellenic Recycling Agency.
The Ministry says that the draft bill aims at transforming the economy with the goal of creating a safer environment. The legislation will amend the basic institutional framework [Law 2939/2001] on the alternative management of packaging and other products, in line with the EU Directive 2015/720/EU, regulating issues concerning the Hellenic Organization for Recycling and other provisions.
According to the Ministry’s explanatory memorandum, the aim of the legislation is to reduce the existing significant evasion of taxes related to waste disposal. 81% of rubbish still goes to landfill.
The organizational role of the Hellenic Organization for Recycling [ΣΕΔ] is essential for the proper functioning of the market and dealing with conflicts of interests. Arrangements are being put in place for the reduction of non-recyclables, the streamlining of recycling costs and the channelling of resources to achieve optimal waste management alternatives."
The draft legislation clarifies the distributor’s responsibility for the implementation of the extended responsibility of the producer, while corresponding criminal and administrative sanctions are to be put in place for infringements of the obligations. At the same time, in line with the provisions of Directive 2015/720/EU, provision is to be introduced for measures to reduce the use of plastic bags.
Special emphasis is given to the separate collection of waste packaging material, so that it is recovered in the cleanest and purest possible form in order to achieve the necessary quality standards in their respective fields of recycling. Separate collection must be organized by both the Hellenic Organization for Recycling [ΣΕΔ] and the Municipalities.
The new provisions enable Municipalities independently to organise the alternative management of municipal waste themselves, while the new institutional framework provides for incentives and rewards for Municipalities on the basis of their results. Finally, the role and responsibility of the Greek Recycling Organisation [Ε.Ο.ΑΝ.] is strengthened both as an institution and in terms of human resources, with the aim of better coordination with the Hellenic Organization for Recycling [ΣΕΔ], the Local Authorities and the organisations of civil society.
Prospects for the Third Assessment
On Tuesday EU Finance Commissioner Pierre Moscovici announced that the Heads of Mission of the Institutions are expected to return to Athens on October 23rd in order to start the Third Assessment. President of the Eurogroup Jeroen Dijsselbloem said: "We have a very strong shared objective and ambition to close the Assessment before the end of the year."
Commenting on the possibility of the new German Government’s stance towards Greece becoming stricter in the event of the Free Democrat party joining a ruling coalition with Chancellor Merkel, Jeroen Dijsselbloem said the Greek bailout was “solid” and could not be changed by new governments.
"Let us channell all our energies towards concluding the Third Assessment is mainly about implementing agreed reforms, and then preparing the end of the Greek Programme, which I hope to do at the end of the summer," Commissioner Moscovici said, noting that "Greece is not experiencing any problems at the moment".
Greek Government sources dismissed speculation generated in local media on Wednesday that fresh austerity is on the cards.
IMF
In its latest World Economic Outlook, the International Monetary Fund is forecasting a higher growth rate for Greece in 2018 than the projection made in the Greek draft State Budget.
The IMF expects the growth rate to be at 1.8% of GDP for 2017. In 2018, according to the IMF, the Greek economy will grow at a rate of 2.6% of GDP, whereas the Government is working on the basis of growth at 2.4% of GDP.
“Greece has done a lot of work and the Greeks have made enormous efforts,” said the Director General of the International Monetary Fund, Christine Lagarde, at a press conference given at the annual session of the Fund and the World Bank. “It is very impressive", she added.
D.G. Lagarde said that the IMF is not asking for new measures, just the implementation of those agreed, while she stressed that the IMF is insisting on the issue of debt relief about which the debate with Europe continues.
Finance Minister Euclid Tsakalotos and Alternate Finance Minister Giorgos Chouliarakis will meet with IMF Managing Director, Christine Lagarde, on October 14th, on the sidelines of the IMF - World Bank Annual Meeting, in Washington. The issues of the Third Assessment of the Greek bailout programme, debt relief, the Fund’s role in the bailout programme and Greece’s sustained future access to capital markets, are expected to be discussed in detail.
Tackling VAT Evasion
The increased number of inspections at food service establishments this summer is showing results.
According to the Independent Authority for Public Revenue, bars and restaurants are no longer the worst offenders in terms of tax evasion. This unenviable distinction now goes to pawnshops.
The authority’s plan to focus on the Cyclades and Saronic islands brought violation rates down to 20% of enterprises. Corfu had the highest rate of violations at 59%.
On Tuesday EU Finance Commissioner Pierre Moscovici announced that the Heads of Mission of the Institutions are expected to return to Athens on October 23rd in order to start the Third Assessment. President of the Eurogroup Jeroen Dijsselbloem said: "We have a very strong shared objective and ambition to close the Assessment before the end of the year."
Commenting on the possibility of the new German Government’s stance towards Greece becoming stricter in the event of the Free Democrat party joining a ruling coalition with Chancellor Merkel, Jeroen Dijsselbloem said the Greek bailout was “solid” and could not be changed by new governments.
"Let us channell all our energies towards concluding the Third Assessment is mainly about implementing agreed reforms, and then preparing the end of the Greek Programme, which I hope to do at the end of the summer," Commissioner Moscovici said, noting that "Greece is not experiencing any problems at the moment".
Greek Government sources dismissed speculation generated in local media on Wednesday that fresh austerity is on the cards.
IMF
In its latest World Economic Outlook, the International Monetary Fund is forecasting a higher growth rate for Greece in 2018 than the projection made in the Greek draft State Budget.
The IMF expects the growth rate to be at 1.8% of GDP for 2017. In 2018, according to the IMF, the Greek economy will grow at a rate of 2.6% of GDP, whereas the Government is working on the basis of growth at 2.4% of GDP.
“Greece has done a lot of work and the Greeks have made enormous efforts,” said the Director General of the International Monetary Fund, Christine Lagarde, at a press conference given at the annual session of the Fund and the World Bank. “It is very impressive", she added.
D.G. Lagarde said that the IMF is not asking for new measures, just the implementation of those agreed, while she stressed that the IMF is insisting on the issue of debt relief about which the debate with Europe continues.
Finance Minister Euclid Tsakalotos and Alternate Finance Minister Giorgos Chouliarakis will meet with IMF Managing Director, Christine Lagarde, on October 14th, on the sidelines of the IMF - World Bank Annual Meeting, in Washington. The issues of the Third Assessment of the Greek bailout programme, debt relief, the Fund’s role in the bailout programme and Greece’s sustained future access to capital markets, are expected to be discussed in detail.
Tackling VAT Evasion
The increased number of inspections at food service establishments this summer is showing results.
According to the Independent Authority for Public Revenue, bars and restaurants are no longer the worst offenders in terms of tax evasion. This unenviable distinction now goes to pawnshops.
The authority’s plan to focus on the Cyclades and Saronic islands brought violation rates down to 20% of enterprises. Corfu had the highest rate of violations at 59%.
The Greek-Eurasian Business Council Conference
Speaking at the Greek-Eurasian Business Council Conference, Greek President Prokopis Pavlopoulos on Monday stressed Greece’s leading role in promoting Europe’s ties with Eurasia and China.
“Greece supports regional integration schemes in the wider Eurasian region, which can contribute to peace, growth and prosperity.” “Greece encourages and supports all efforts that promote a strategic link between the countries of Europe and Asia in key areas of the economy, such as energy, trade, transport, digital online collaboration, new technologies and tourism.”
He also underlined that “Greece, a European country at the crossroads of three continents, has throughout history been open to the communication and the interconnection of different countries and cultures.”
Greece has played a crucial role in efforts for economic cooperation between the EU and the wider Eurasian region, as demonstrated by the fact that Greece, an EU member-state, encouraged further cooperation between the EU and China, he said.
“Greece attaches great importance to China’s One Belt, One Road initiative.” “This idea is based both on ancient Chinese philosophy and the ancient silk road, which on the one hand is characterized by a spirit of peace and mutually beneficial cooperation, and on the other hand, makes a substantial contribution to the development of infrastructure projects, promotion of trade, economic integration and closer relations between those peoples and the societies linked, either by land or sea, together for the realization of this idea.”
The Greek President referred to the scope for an innovative approach such economic cooperation between the EU, the Eurasian Economic Union and China, pointing out that the success of the project depends to a large extent on cultivating relations of trust between the parties, which will accelerate the progress of joint investment projects for the benefit of all involved.
A Social Dividend in 2018
The Government, convinced that it has achieved the 1.75% Primary Surplus target for 2017, is moving ahead with the distribution of a social dividend to the most vulnerable and financially weak social groups. Financial support is to be sourced out of the funds generated by the overachievement of the financial and fiscal policy targets.
Government spokesman, Mr. Dimitris Tzanakopoulos pointed out that the overachievement of the 2017 fiscal goals allows the government to offer a one-off payment, in terms of social policy expenditures, in order to support and further protect vulnerable economic groups as well as to implement a range of other social policy actions.
The Primary Surplus, as set out in the Government’s draft budget for the Financial Year 2018, is estimated at 2.21%. The forecast for the growth rate of the Greek economy is close to 2% for 2017 and 2.4% for 2018.
The Prime Minister’s office announced that in 2018, through the Social Income Solidarity programme 760€ million will be distributed to 250,000 households, while 320€ million will be made available to tackle child poverty issues. On top of this, the State will contribute an additional 100€ million in order to protect the primary residences of heavily indebted households.
Hellenikon
The Government Statement welcomed the current developments related to investment. specifically the unblocking of the investment in “Hellenikon”, following the final decision taken by the Central Archaeological Council (KAS). The Minister of State responsible for handling the “Hellenikon” issue, stated that any obstacles to the investment have been dealt with, following the decision made by KAS, to designate a small section of the area in question as an archaeological site - just 280 acres out of a total of 6,500 acres.
The Government spokesman argued that there was no question about the investor withdrawing and cancelling the investment, since neither the terms set out in the agreement between the Greek State and the company investing on the property had been broken, nor has the development schedule being put back to an extent so that makes the investment unattainable. Also, no more than 30% of the building plans area has been designated as an archaeological site.
KAS has also accepted and endorsed the Integrated Development Plan as well as the Strategic Environmental Impact Study, while the Complaints Commission has reached the conclusion that the questioned classification of a 37-acre as a forest area cannot be upheld.
Speaking at the Greek-Eurasian Business Council Conference, Greek President Prokopis Pavlopoulos on Monday stressed Greece’s leading role in promoting Europe’s ties with Eurasia and China.
“Greece supports regional integration schemes in the wider Eurasian region, which can contribute to peace, growth and prosperity.” “Greece encourages and supports all efforts that promote a strategic link between the countries of Europe and Asia in key areas of the economy, such as energy, trade, transport, digital online collaboration, new technologies and tourism.”
He also underlined that “Greece, a European country at the crossroads of three continents, has throughout history been open to the communication and the interconnection of different countries and cultures.”
Greece has played a crucial role in efforts for economic cooperation between the EU and the wider Eurasian region, as demonstrated by the fact that Greece, an EU member-state, encouraged further cooperation between the EU and China, he said.
“Greece attaches great importance to China’s One Belt, One Road initiative.” “This idea is based both on ancient Chinese philosophy and the ancient silk road, which on the one hand is characterized by a spirit of peace and mutually beneficial cooperation, and on the other hand, makes a substantial contribution to the development of infrastructure projects, promotion of trade, economic integration and closer relations between those peoples and the societies linked, either by land or sea, together for the realization of this idea.”
The Greek President referred to the scope for an innovative approach such economic cooperation between the EU, the Eurasian Economic Union and China, pointing out that the success of the project depends to a large extent on cultivating relations of trust between the parties, which will accelerate the progress of joint investment projects for the benefit of all involved.
A Social Dividend in 2018
The Government, convinced that it has achieved the 1.75% Primary Surplus target for 2017, is moving ahead with the distribution of a social dividend to the most vulnerable and financially weak social groups. Financial support is to be sourced out of the funds generated by the overachievement of the financial and fiscal policy targets.
Government spokesman, Mr. Dimitris Tzanakopoulos pointed out that the overachievement of the 2017 fiscal goals allows the government to offer a one-off payment, in terms of social policy expenditures, in order to support and further protect vulnerable economic groups as well as to implement a range of other social policy actions.
The Primary Surplus, as set out in the Government’s draft budget for the Financial Year 2018, is estimated at 2.21%. The forecast for the growth rate of the Greek economy is close to 2% for 2017 and 2.4% for 2018.
The Prime Minister’s office announced that in 2018, through the Social Income Solidarity programme 760€ million will be distributed to 250,000 households, while 320€ million will be made available to tackle child poverty issues. On top of this, the State will contribute an additional 100€ million in order to protect the primary residences of heavily indebted households.
Hellenikon
The Government Statement welcomed the current developments related to investment. specifically the unblocking of the investment in “Hellenikon”, following the final decision taken by the Central Archaeological Council (KAS). The Minister of State responsible for handling the “Hellenikon” issue, stated that any obstacles to the investment have been dealt with, following the decision made by KAS, to designate a small section of the area in question as an archaeological site - just 280 acres out of a total of 6,500 acres.
The Government spokesman argued that there was no question about the investor withdrawing and cancelling the investment, since neither the terms set out in the agreement between the Greek State and the company investing on the property had been broken, nor has the development schedule being put back to an extent so that makes the investment unattainable. Also, no more than 30% of the building plans area has been designated as an archaeological site.
KAS has also accepted and endorsed the Integrated Development Plan as well as the Strategic Environmental Impact Study, while the Complaints Commission has reached the conclusion that the questioned classification of a 37-acre as a forest area cannot be upheld.
1st Bulgarian-Greek-Romanian-Serbian Summit
7.10.2017
1st Bulgarian-Greek-Romanian-Serbian Summit
PM Alexis Tsipras travelled to Varna, Bulgaria, on Tuesday, October 3rd, to take part in the 1st Bulgarian-Greek-Romanian-Serbian Summit organised in the Bulgarian city.
The four countries aim at strengthening their economic, business and energy ties. Such a coalition is expected to the springboard towards growth on all levels and to promote substantial development of the area using investment from abroad.
This summit is also important to China. One of their correspondents from the state television of China to Bulgaria, will report the event from on the spot.
The Summit issued a message of peace, cooperation and stability.
"Our common future in the Balkans cannot be built on nationalism, as unfortunately happened in the past, nor on the plans of third parties for our region. It can be built on the great potentials of our peoples, on respect for international law and on a common European vision for our region, "stressed PM Tsipras in the joint declaration with the Prime Ministers of Bulgaria Boyko Borisov, of Romania Mihai Tudose and President of Serbia Aleksandar Vučić.
All four leaders expressed messages of peace, cooperation and stability and agreed the next meeting should be in Belgrade, as the form of their cooperation takes on a permanent shape.
The Varna Summit was yet another step to further cooperation among the four countries in the areas of the economy, energy, security and refugees and it is significant that the Greek proposal was adopted for there to be a Summit Meeting of the European Union-Western Balkans, during the Bulgarian Presidency of the EU in the first half of 2018. It was also agreed to formulate a joint request by the Prime Ministers of Greece and Bulgaria, Alexis Tsipras and Boyko Borisov to the European Commission, and Jean-Claude Juncker to secure EU funding for the railway connecting Thessaloniki-Varna.
PM Tsipras placed great importance on the revitalization of the "Thessaloniki Agenda" for the European vision of the Western Balkans, and referring to the countries that are in the accession process, he pointed out: "The EU's relationship with the countries in the accession process, such as Serbia, is one of the issues that the European Union has to solve, it must first solve its own in-house problems in order to be able to play a serious role in the international sphere. And as far as the accession journey of the countries of the Balkans is concerned, I believe that the journey should be one based meeting conditions, but also on a new vision for cooperation among the peoples in the wider region."
PM Alexis Tsipras travelled to Varna, Bulgaria, on Tuesday, October 3rd, to take part in the 1st Bulgarian-Greek-Romanian-Serbian Summit organised in the Bulgarian city.
The four countries aim at strengthening their economic, business and energy ties. Such a coalition is expected to the springboard towards growth on all levels and to promote substantial development of the area using investment from abroad.
This summit is also important to China. One of their correspondents from the state television of China to Bulgaria, will report the event from on the spot.
The Summit issued a message of peace, cooperation and stability.
"Our common future in the Balkans cannot be built on nationalism, as unfortunately happened in the past, nor on the plans of third parties for our region. It can be built on the great potentials of our peoples, on respect for international law and on a common European vision for our region, "stressed PM Tsipras in the joint declaration with the Prime Ministers of Bulgaria Boyko Borisov, of Romania Mihai Tudose and President of Serbia Aleksandar Vučić.
All four leaders expressed messages of peace, cooperation and stability and agreed the next meeting should be in Belgrade, as the form of their cooperation takes on a permanent shape.
The Varna Summit was yet another step to further cooperation among the four countries in the areas of the economy, energy, security and refugees and it is significant that the Greek proposal was adopted for there to be a Summit Meeting of the European Union-Western Balkans, during the Bulgarian Presidency of the EU in the first half of 2018. It was also agreed to formulate a joint request by the Prime Ministers of Greece and Bulgaria, Alexis Tsipras and Boyko Borisov to the European Commission, and Jean-Claude Juncker to secure EU funding for the railway connecting Thessaloniki-Varna.
PM Tsipras placed great importance on the revitalization of the "Thessaloniki Agenda" for the European vision of the Western Balkans, and referring to the countries that are in the accession process, he pointed out: "The EU's relationship with the countries in the accession process, such as Serbia, is one of the issues that the European Union has to solve, it must first solve its own in-house problems in order to be able to play a serious role in the international sphere. And as far as the accession journey of the countries of the Balkans is concerned, I believe that the journey should be one based meeting conditions, but also on a new vision for cooperation among the peoples in the wider region."
The Draft Budget for 2018
The draft Budget has been presented to Parliament. The unemployment rate is projected to fall to 19% in 2018, from 27% at the end of 2014
* The draft Budget forecasts growth for 2018 at 2.4% of GDP and a Primary Surplus 3.57%.
* 2017’s excess surplus will be allocated to actions supporting growth and social cohesion, which will be “provided with a dowry” of 800€ million.
For 2017 significant over-achievement of budget target of 1.75% is forecast, allowing once again a one-off expenditure in the form of a social dividend.
Deputy Finance Minister Houliarakis, submitting the 2018 draft Budget to the President of Parliament N. Voutsis described it as “the last budget of the [Memoranda] programmes.”
He pointed out that the Budget for 2018 is "within targets" stressing that in 2017 a significant over-achievement of targets was recorded, which "we will put to good use".
The primary balance of the General Government Bodies in 2018, [in accordance with the methodology of the Financial Facility Agreement - Law 4336/2015] is projected to reach 3.57% of GDP (6,671€ million) which is compatible with the targets of the programme.
For 2017 the draft State budget estimates a significant over-achievement of the budgetary target of 1.75%. This over-achievement allows a one-time expenditure in the form of a social dividend and the pursuit of the objective of giving targeted support to financially vulnerable households. The exact amount and the support measures will be specified on the basis of budgetary implementation data in November this year.
The sustainable achievement of the budgetary targets for the third year in a row, is due to the consolidation of budgetary discipline, the gradual restoration of confidence in the medium-term prospects of the Greek economy and the significant creation of new positions of paid employment. The above permit the Government to successfully combine fiscal responsibility with social justice.
For 2018, the Budget incorporates the continuing operations of social policy but also the start of new actions, including:
• The implementation of the programme for the Social Solidarity Income, with credits of 760€ million which will give relief to over 250,000 households experiencing poverty.
• The sum of 320€ million, which has been secured by the scrutiny of primary operating costs, is intended to protect financially vulnerable households and provide for interventions in the crucial area of tackling child poverty.
• The contribution of the Treasury, with an amount of 100€ million for the protection of the main residence of indebted households, in accordance with certain income and assets criteria.
In subsequent years, growth rates are adequate to ensure the achievement both of the budgetary targets and of the fiscal space for the reductions in tax rates for households and businesses that have been planned and voted on in the Medium-Term Fiscal Strategy 2018-2021.
“Harmonisation of Family and Working Life” Programme
The total funding of the programme “Harmonization of Family and Working Life” for the period 2017-2018 is reaching 223.5€ million.
Deputy Minister of Economy and Development, Alexis Charitsis approved additional funding from national resources amounting to 18.5€ million.
With this increase in funding, the Programme fully satisfies all applications for free admission (approximately 108.5000 vouchers) to available child care structures (crèches, kindergartens and Children's Creative Employment Centres (ΚΔΑΠ).
Deputy Minister Charitsis said:
“Childcare structures are a top priority for the Government. We have again brought forward a generous increase in funding, reaching in 2017 the record amount of 223.5€ million. The funding is made up mostly from national resources from surpassed surpluses over just 3 years. In close cooperation with the Ministries of Labour and of the Interior have managed for the first time this year to guarantee a place at nursery schools and crèches for more than 100,000 children. Having at the heart of our policy the needs of a society under great stress, we have met all applications from families below the poverty line, and from every persons with a disability".
EUROSTAT Data on Unemployment
The unemployment rate for young people (under 25 ) in Greece fell in June at 43.3%, compared with 43.6% in May
A slight decrease, to 21.2%, was recorded in the level of unemployment in Greece in June 2017, compared to May (21.5%), according to data published by the European Statistical Office (Eurostat).
In August, the level of unemployment remained stable in the Eurozone (9.1%), while a small decrease was recorded in the EU (7.6% in August, compared with 7.7% in July). A year ago, in August 2016, unemployment in the Eurozone and in “the EU of 28” was 9.9% and 8.5% respectively.
Altogether in August 18.747 million were recorded unemployed in the EU and 14.751 million in the Eurozone.
The highest levels of unemployment in the EU are in Greece (21.2% in June) and in Spain (17.1%). The lowest unemployment rates were recorded in the Czech Republic (2.9%), Germany (3.6%) and Malta (4.2%).
In Greece, the number of jobless in June stood at 1.017 million. The unemployment rate for men stood at 17.9% and for women at 25.3%.
The unemployment rate of young people (under 25 years) in Greece fell in June at 43.3%, compared with 43.6% in May. The highest rates of youth unemployment in the EU are in Greece (43.3%), in Spain (38.7%) and in Italy (35.1%); the lowest rate recorded is in Germany (6.4%).
In August the unemployment rate of young people in the Eurozone stood at 18.9% and in the EU at 16.7%.
The draft Budget has been presented to Parliament. The unemployment rate is projected to fall to 19% in 2018, from 27% at the end of 2014
* The draft Budget forecasts growth for 2018 at 2.4% of GDP and a Primary Surplus 3.57%.
* 2017’s excess surplus will be allocated to actions supporting growth and social cohesion, which will be “provided with a dowry” of 800€ million.
For 2017 significant over-achievement of budget target of 1.75% is forecast, allowing once again a one-off expenditure in the form of a social dividend.
Deputy Finance Minister Houliarakis, submitting the 2018 draft Budget to the President of Parliament N. Voutsis described it as “the last budget of the [Memoranda] programmes.”
He pointed out that the Budget for 2018 is "within targets" stressing that in 2017 a significant over-achievement of targets was recorded, which "we will put to good use".
The primary balance of the General Government Bodies in 2018, [in accordance with the methodology of the Financial Facility Agreement - Law 4336/2015] is projected to reach 3.57% of GDP (6,671€ million) which is compatible with the targets of the programme.
For 2017 the draft State budget estimates a significant over-achievement of the budgetary target of 1.75%. This over-achievement allows a one-time expenditure in the form of a social dividend and the pursuit of the objective of giving targeted support to financially vulnerable households. The exact amount and the support measures will be specified on the basis of budgetary implementation data in November this year.
The sustainable achievement of the budgetary targets for the third year in a row, is due to the consolidation of budgetary discipline, the gradual restoration of confidence in the medium-term prospects of the Greek economy and the significant creation of new positions of paid employment. The above permit the Government to successfully combine fiscal responsibility with social justice.
For 2018, the Budget incorporates the continuing operations of social policy but also the start of new actions, including:
• The implementation of the programme for the Social Solidarity Income, with credits of 760€ million which will give relief to over 250,000 households experiencing poverty.
• The sum of 320€ million, which has been secured by the scrutiny of primary operating costs, is intended to protect financially vulnerable households and provide for interventions in the crucial area of tackling child poverty.
• The contribution of the Treasury, with an amount of 100€ million for the protection of the main residence of indebted households, in accordance with certain income and assets criteria.
In subsequent years, growth rates are adequate to ensure the achievement both of the budgetary targets and of the fiscal space for the reductions in tax rates for households and businesses that have been planned and voted on in the Medium-Term Fiscal Strategy 2018-2021.
“Harmonisation of Family and Working Life” Programme
The total funding of the programme “Harmonization of Family and Working Life” for the period 2017-2018 is reaching 223.5€ million.
Deputy Minister of Economy and Development, Alexis Charitsis approved additional funding from national resources amounting to 18.5€ million.
With this increase in funding, the Programme fully satisfies all applications for free admission (approximately 108.5000 vouchers) to available child care structures (crèches, kindergartens and Children's Creative Employment Centres (ΚΔΑΠ).
Deputy Minister Charitsis said:
“Childcare structures are a top priority for the Government. We have again brought forward a generous increase in funding, reaching in 2017 the record amount of 223.5€ million. The funding is made up mostly from national resources from surpassed surpluses over just 3 years. In close cooperation with the Ministries of Labour and of the Interior have managed for the first time this year to guarantee a place at nursery schools and crèches for more than 100,000 children. Having at the heart of our policy the needs of a society under great stress, we have met all applications from families below the poverty line, and from every persons with a disability".
EUROSTAT Data on Unemployment
The unemployment rate for young people (under 25 ) in Greece fell in June at 43.3%, compared with 43.6% in May
A slight decrease, to 21.2%, was recorded in the level of unemployment in Greece in June 2017, compared to May (21.5%), according to data published by the European Statistical Office (Eurostat).
In August, the level of unemployment remained stable in the Eurozone (9.1%), while a small decrease was recorded in the EU (7.6% in August, compared with 7.7% in July). A year ago, in August 2016, unemployment in the Eurozone and in “the EU of 28” was 9.9% and 8.5% respectively.
Altogether in August 18.747 million were recorded unemployed in the EU and 14.751 million in the Eurozone.
The highest levels of unemployment in the EU are in Greece (21.2% in June) and in Spain (17.1%). The lowest unemployment rates were recorded in the Czech Republic (2.9%), Germany (3.6%) and Malta (4.2%).
In Greece, the number of jobless in June stood at 1.017 million. The unemployment rate for men stood at 17.9% and for women at 25.3%.
The unemployment rate of young people (under 25 years) in Greece fell in June at 43.3%, compared with 43.6% in May. The highest rates of youth unemployment in the EU are in Greece (43.3%), in Spain (38.7%) and in Italy (35.1%); the lowest rate recorded is in Germany (6.4%).
In August the unemployment rate of young people in the Eurozone stood at 18.9% and in the EU at 16.7%.
TV Channel owners just keep challenging.
Last year's struggle of the TV channels against the competitive auctioning of licences, using the argument that the National Council of Radio and Television [ΕΣΡ] had not been involved,
is now shown to have been a wild pretext. The real goal has now emerged: the continuation of the 27 year-old regime of illegality and vested interests. SKAI TV and Star TV, aided and abetted by the association of the channel owners, have appealed again to the Supreme Court against the decisions of Nikos Pappas but also now the decision of the National Council of Radio and Television about the number of licences and the price, essentially asking for there to be an unlimited number at zero cost.
Preparations for the Third Assessment
The Greek Government has undertaken to complete the vast majority of prior actions agreed with creditors as part of the Third Assessment of its bailout programme by early November, when the Eurogroup meets. Deputy Prime Minister, Yiannis Dragasakis, told SKAI TV on Thursday that “we have committed to completing 80% of the Assessment before the Eurogroup in early November and to complete the rest by the end of the year”.
Mr. Dragasakis also said the Government plans to distribute a social benefit from its primary surplus again this year. The issue will require discussion with Greece’s creditors, as the Deputy PM confirmed.
The Government is preparing to submit the necessary data to creditors - it has fulfilled the specific target for eliminating arrears - in order for the disbursement to go ahead of an 800€ million bailout loan sub-tranche left over from the previous Assessment.
A senior Eurozone official told reporters in Brussels on Thursday that “there exists a strong political will ” for the Greek Programme Assessment to be completed this year. The official said that the issue will be discussed at the next Eurogroup meeting on October 9th, in Luxembourg.
Commenting on the upcoming Third Assessment, the senior official said the heads of the creditor institutions will return to Athens by the beginning of November.
Last year's struggle of the TV channels against the competitive auctioning of licences, using the argument that the National Council of Radio and Television [ΕΣΡ] had not been involved,
is now shown to have been a wild pretext. The real goal has now emerged: the continuation of the 27 year-old regime of illegality and vested interests. SKAI TV and Star TV, aided and abetted by the association of the channel owners, have appealed again to the Supreme Court against the decisions of Nikos Pappas but also now the decision of the National Council of Radio and Television about the number of licences and the price, essentially asking for there to be an unlimited number at zero cost.
Preparations for the Third Assessment
The Greek Government has undertaken to complete the vast majority of prior actions agreed with creditors as part of the Third Assessment of its bailout programme by early November, when the Eurogroup meets. Deputy Prime Minister, Yiannis Dragasakis, told SKAI TV on Thursday that “we have committed to completing 80% of the Assessment before the Eurogroup in early November and to complete the rest by the end of the year”.
Mr. Dragasakis also said the Government plans to distribute a social benefit from its primary surplus again this year. The issue will require discussion with Greece’s creditors, as the Deputy PM confirmed.
The Government is preparing to submit the necessary data to creditors - it has fulfilled the specific target for eliminating arrears - in order for the disbursement to go ahead of an 800€ million bailout loan sub-tranche left over from the previous Assessment.
A senior Eurozone official told reporters in Brussels on Thursday that “there exists a strong political will ” for the Greek Programme Assessment to be completed this year. The official said that the issue will be discussed at the next Eurogroup meeting on October 9th, in Luxembourg.
Commenting on the upcoming Third Assessment, the senior official said the heads of the creditor institutions will return to Athens by the beginning of November.
"Clean Energy for
the Islands of the EU"
- "Long-term energy planning is a Government policy priority"
30.9.2017
PM Alexis Tsipras, speaking at the first "Clean Energy for the Islands of the EU" Forum said "“smart” islands with a high penetration of Renewable Energy Resources [ΑΠΕ] and a reduction of energy costs is our vision and ambition".
Greece has already taken an active role in environmental protection in Europe, he stressed.
He reminded his audience that Greece is the only lignite-producing country in the European Union that is pushing for the adoption of more stringent limits on emissions. He highlighted the efforts on many fronts and the country’s contribution to the transition to clean energy. He said that the attainment of the European objectives for 2020 to increase the share of Renewable Energy Resources in the energy mix can be taken as given.
He added that Greece has adopted the system of guaranteed prices and the first competitive process for photovoltaic installations. Also, he said that it is completing the consultation with the European Commission for a competitive bidding schedule for all forms of renewables - photovoltaic, wind energy and, if there is interest, biomass and small hydroelectric plants.
At the same time, the country is promoting an up-to-date Land-use Plan specificly for Renewable Sources of Energy, the existence of which will help avoid time-consuming legal implications.
In cooperation with the Commission, added the Prime Minister, Greece is also proceeding with the modernisation of the framework of environmental permits for Renewable Energy Resources. “This Government has brought environmental protection and climate change from the fringes of the political agenda to the centre of the search for ways our society can proceed to the future. And we have made long-term energy planning a political priority, and this despite a seven-year economic and social crisis from which we are now emerging.”
Greece has already taken an active role in environmental protection in Europe, he stressed.
He reminded his audience that Greece is the only lignite-producing country in the European Union that is pushing for the adoption of more stringent limits on emissions. He highlighted the efforts on many fronts and the country’s contribution to the transition to clean energy. He said that the attainment of the European objectives for 2020 to increase the share of Renewable Energy Resources in the energy mix can be taken as given.
He added that Greece has adopted the system of guaranteed prices and the first competitive process for photovoltaic installations. Also, he said that it is completing the consultation with the European Commission for a competitive bidding schedule for all forms of renewables - photovoltaic, wind energy and, if there is interest, biomass and small hydroelectric plants.
At the same time, the country is promoting an up-to-date Land-use Plan specificly for Renewable Sources of Energy, the existence of which will help avoid time-consuming legal implications.
In cooperation with the Commission, added the Prime Minister, Greece is also proceeding with the modernisation of the framework of environmental permits for Renewable Energy Resources. “This Government has brought environmental protection and climate change from the fringes of the political agenda to the centre of the search for ways our society can proceed to the future. And we have made long-term energy planning a political priority, and this despite a seven-year economic and social crisis from which we are now emerging.”
EFKA
"Those who are still arguing that the EFKA surplus is purely notional are shown to be wrong by the reality of the numbers," said a statement released by the Ministry of Labour.
"Reports are attempting once again to cast doubt on the positive trajectory of the economics of EFKA [the Consolidated Social Security Service -Ενιαίος Φορέας Κοινωνικής Ασφάλισης]. The well-known scaremongering keeps returning with discredited data and inaccuracies, ignoring the official data which has been presented by the Ministry of Labour, Social Security and Social Solidarity both in Parliament and in the media."
"Apart from the obvious political objective they are serving, they clearly aim also to undermine the public social security system, in the service of other interests."
"For those who refuse to accept the reality, the Ministry reminds them that:
-having inherited in 2015 the social security system with a deficit of 186€ million, EFKA was launched in 2017 with a budgeted deficit of over 1€ billion. The positive trajectory of EFKA revenues in the eight months January-August 2017 showed this prediction of its budget to be in error and in fact led to a surplus of more than 400€ million with record-breaking contributions to the National Health Service Organization [ΕΟΠΥΥ] and the Labour Force Employment Organisation [ΟΑΕΔ]. The positive results, despite initial estimates to the contrary, are a result of increasing employment and contribution collecting, and wiser fund management. This result will be reflected in the final review of the EFKA budget for the whole of 2017 as required by law.
- The disbursement of 395€ million from the Generation Solidarity Insurance Fund was anticipated from December 2016 and had been included in the original budgets of both the Generation Solidarity Insurance Fund [ΑΚΑΓΕ] and EFKA for the whole of 2017. The decision to disburse this regular and known expenditure does not constitute "extra" funding.
"The interventions being implemented to promote employment and the restoration of the public social security system are yielding results - and give the best answer to all those who, constantly and consciously, are trying to undermine it."
Journalists’ Pension Fund Rescue
On Wednesday, the Minister for Digital Policy, Telecommunications and the Media, Nikos Pappas met with the Press trade unions. The goal of the meeting was to inform the Minister about the progress of negotiations with the owners of the channels in connection with the rescue of the Pension Fund.
After the meeting, Nick Pappas said: “The Journalists’ Unified Advocacy and Retirement Organization (ΕΔΟΕΑΠ) must be supported. We have been informed about the reasonable solutions which have been drawn up in the course of the discussions. We have reiterated our willingness to rethink the amount of advertising tax in the event that ΕΔΟΕΑΠ is supported with resources resulting from an agreement between employers and employees. It is clear that there is the possibility both for the Fund to be supported, and for the levy to be prevented which will jeopardize jobs and the level of remuneration of employees in the Media. "The owners of the TV channels must face up to their responsibilities and stop playing hide and seek."
Greece joins challenge to fake Chinese Trademarks
A Greek Minister has warned China to cancel fake trademarks of two Greek products including feta cheese in order for a future deal with Brussels on geographical indications to move on.
In June the EU and China agreed to publish a list of 200 geographical indications (GIs) – 100 from each side – that would be protected under an agreement to be signed later this year.
Nevertheless, according to a document from the Greek Ministry of the Economy and Development, Italy, Spain, France, Greece, Portugal, Germany, Hungary and Romania have agreed to jointly file a lawsuit – to share the legal costs – against China over 25 trademarks with fake geographical indications which are homonymous with EU geographical indications.
The eight EU member states will take legal action against China over the 25 counterfeit trademarks on the Chinese market that mislead consumers on the origin of products protected by the EU’s geographical indications.
Gis - food products with a certified geographic origin - are a central part of the EU’s food quality mechanisms, giving consumers certainty over the authenticity and quality of their food.
For Greece, feta cheese and Samos wine have been wrongly marketed as “feta” and “Samos”, written in Chinese.
“If these registrations are not rejected by the court, the Chinese holders will have the right to either produce these products for the domestic market or import homonymous counterfeit products from all over the world,” the Government document warned.
Speaking at the Greece-China Joint Ministerial Committee on Wednesday (20th September), Deputy Minister of Rural Development and Food Vasilis Kokkalis told the Chinese that the two products are of “crucial importance” for the conclusion of the negotiations between the European Union and China.
The Greek minister emphasised the importance of feta for the Greek economy, claiming that it supports the lives of thousands of families.
Feta cheese is considered the “white gold” of Greece’s economy. The country produces around 120,000 tonnes of feta every year, while the total domestic production of sheep and goat milk is about 1,100,000 tonnes.
Farmers in Greece are also concerned about the fate of feta cheese in EU trade agreements with third countries after the EU failed to fully protect the iconic product in the free trade deal with Canada [CETA EU-Canada Comprehensive Economic and Trade Agreement]
The Greek Minister pointed out that these two fake Chinese trademarks are an “insurmountable obstacle” for the effective protection of both Greek products.
He noted that there are extremely adverse consequences for Greek producers and exporters as well as Chinese consumers, who are entitled to make choices “on the basis of sound information and guarantees of quality and origin of products, to enjoy genuine food products”.
“The Chinese side should take all necessary administrative measures to cancel these trademarks, given the long tradition and respect of your country in traditional food products, which are known worldwide,” the Greek Minister concluded.
"Those who are still arguing that the EFKA surplus is purely notional are shown to be wrong by the reality of the numbers," said a statement released by the Ministry of Labour.
"Reports are attempting once again to cast doubt on the positive trajectory of the economics of EFKA [the Consolidated Social Security Service -Ενιαίος Φορέας Κοινωνικής Ασφάλισης]. The well-known scaremongering keeps returning with discredited data and inaccuracies, ignoring the official data which has been presented by the Ministry of Labour, Social Security and Social Solidarity both in Parliament and in the media."
"Apart from the obvious political objective they are serving, they clearly aim also to undermine the public social security system, in the service of other interests."
"For those who refuse to accept the reality, the Ministry reminds them that:
-having inherited in 2015 the social security system with a deficit of 186€ million, EFKA was launched in 2017 with a budgeted deficit of over 1€ billion. The positive trajectory of EFKA revenues in the eight months January-August 2017 showed this prediction of its budget to be in error and in fact led to a surplus of more than 400€ million with record-breaking contributions to the National Health Service Organization [ΕΟΠΥΥ] and the Labour Force Employment Organisation [ΟΑΕΔ]. The positive results, despite initial estimates to the contrary, are a result of increasing employment and contribution collecting, and wiser fund management. This result will be reflected in the final review of the EFKA budget for the whole of 2017 as required by law.
- The disbursement of 395€ million from the Generation Solidarity Insurance Fund was anticipated from December 2016 and had been included in the original budgets of both the Generation Solidarity Insurance Fund [ΑΚΑΓΕ] and EFKA for the whole of 2017. The decision to disburse this regular and known expenditure does not constitute "extra" funding.
"The interventions being implemented to promote employment and the restoration of the public social security system are yielding results - and give the best answer to all those who, constantly and consciously, are trying to undermine it."
Journalists’ Pension Fund Rescue
On Wednesday, the Minister for Digital Policy, Telecommunications and the Media, Nikos Pappas met with the Press trade unions. The goal of the meeting was to inform the Minister about the progress of negotiations with the owners of the channels in connection with the rescue of the Pension Fund.
After the meeting, Nick Pappas said: “The Journalists’ Unified Advocacy and Retirement Organization (ΕΔΟΕΑΠ) must be supported. We have been informed about the reasonable solutions which have been drawn up in the course of the discussions. We have reiterated our willingness to rethink the amount of advertising tax in the event that ΕΔΟΕΑΠ is supported with resources resulting from an agreement between employers and employees. It is clear that there is the possibility both for the Fund to be supported, and for the levy to be prevented which will jeopardize jobs and the level of remuneration of employees in the Media. "The owners of the TV channels must face up to their responsibilities and stop playing hide and seek."
Greece joins challenge to fake Chinese Trademarks
A Greek Minister has warned China to cancel fake trademarks of two Greek products including feta cheese in order for a future deal with Brussels on geographical indications to move on.
In June the EU and China agreed to publish a list of 200 geographical indications (GIs) – 100 from each side – that would be protected under an agreement to be signed later this year.
Nevertheless, according to a document from the Greek Ministry of the Economy and Development, Italy, Spain, France, Greece, Portugal, Germany, Hungary and Romania have agreed to jointly file a lawsuit – to share the legal costs – against China over 25 trademarks with fake geographical indications which are homonymous with EU geographical indications.
The eight EU member states will take legal action against China over the 25 counterfeit trademarks on the Chinese market that mislead consumers on the origin of products protected by the EU’s geographical indications.
Gis - food products with a certified geographic origin - are a central part of the EU’s food quality mechanisms, giving consumers certainty over the authenticity and quality of their food.
For Greece, feta cheese and Samos wine have been wrongly marketed as “feta” and “Samos”, written in Chinese.
“If these registrations are not rejected by the court, the Chinese holders will have the right to either produce these products for the domestic market or import homonymous counterfeit products from all over the world,” the Government document warned.
Speaking at the Greece-China Joint Ministerial Committee on Wednesday (20th September), Deputy Minister of Rural Development and Food Vasilis Kokkalis told the Chinese that the two products are of “crucial importance” for the conclusion of the negotiations between the European Union and China.
The Greek minister emphasised the importance of feta for the Greek economy, claiming that it supports the lives of thousands of families.
Feta cheese is considered the “white gold” of Greece’s economy. The country produces around 120,000 tonnes of feta every year, while the total domestic production of sheep and goat milk is about 1,100,000 tonnes.
Farmers in Greece are also concerned about the fate of feta cheese in EU trade agreements with third countries after the EU failed to fully protect the iconic product in the free trade deal with Canada [CETA EU-Canada Comprehensive Economic and Trade Agreement]
The Greek Minister pointed out that these two fake Chinese trademarks are an “insurmountable obstacle” for the effective protection of both Greek products.
He noted that there are extremely adverse consequences for Greek producers and exporters as well as Chinese consumers, who are entitled to make choices “on the basis of sound information and guarantees of quality and origin of products, to enjoy genuine food products”.
“The Chinese side should take all necessary administrative measures to cancel these trademarks, given the long tradition and respect of your country in traditional food products, which are known worldwide,” the Greek Minister concluded.
“Crete is a very good example for us to define what we mean when we talk about reconstruction, about a new productive model”
Alexis Tsipras in Heraklion
23.9.2017
Alexis Tsipras, speaking at a regional Conference on the Restructuring of Production in Heraklion, on Thursday said “The experience so far of all these regional conferences aimed at putting together our plan for the reconstruction of production and regional planning in the 13 Regions and together with all these with whom we are drawing up the national plan, is something more than positive.
“Crete is a place large enough to accommodate a wide range of productive activities.
"Some people try to justify their policy choices which represent the interests of the few and the powerful, by telling us that inequality is in the nature of human society
"I don’t know where they have found that written down. What I do know is that the redistribution of wealth, social protection, support for the small against the big, for the powerless in the face of the strong constitute gains of our modern civilisation."
"These are gains much more recent than the primitive neoliberalism of the jungle, in which the stronger eats the weaker. This primitive neoliberalism is passed of by the leader of the official opposition as a perspective for development and a stable model for the country."
"So, we are here to move the wheel of history forward. To fight against inequalities.
The Region of Crete is a very good example for us to define what we mean when we talk about reconstruction, about a new productive model.
"Reconstruction is, first and foremost, the increase in productive capacity and the growth in employment, stable and permanent employment.
"The goal is to restore a decent standard of living for working people and to ensure the adequate supply of social services. This describes the term "Equitable Development", namely, development, whose benefits are diffused into society and it does not function as a tool of accumulating wealth for some few and powerful people.
" The more effect combining of the rural sector with the tourism sector could result in much more, the will exists and it is a matter of better organisation and planning which we must resolve.
"To this end, the Animal Husbandry-Manufacturing -Tourism Forum set up by the Ministry of Development, aiming to combine with specific policies and incentives the Animal Husbandry sector with manufacturing industry and the tourism cluster.
"The qualitative growth of agricultural production mainly relates to the improvement of the quality of exports, standardization and certification.
"In the new Development Law being implemented by the Government, industry, manufacturing and animal husbandry are priority sectors, a trend that is confirmed by investors.
The sector of the economy this year gave so much impetus to growth, that today the OECD has been forced to revise its predictions and to talk about percentages that will touch and will exceed 3% growth in the third and fourth quarter of the year.
These are among the four highest quarterly rates of growth across the eurozone.
"For us, equitable tourism development also means a substantial improvement in working conditions. For us tourism development and investment means jobs".
An issue of concern for working people in Crete also is undeclared work and particularly in apprenticeships in tourist enterprises.
From 2010 the arrangements had been in force specified by a Joint Ministerial Decision which allows for the employment of apprentices in tourist enterprises, at the rate of 17% up to a maximum of 40 employees. Furthermore the employment of apprentices from schools in other EU countries or even from third countries had been legislated on, since there are bilateral conventions.
Today the Government is preparing a new Joint Ministerial Decision which will redefine the proportions of workers to apprentices, and which will involves the review of the level of apprentice pay, at 60% of the minimum wage in the country. In addition, it will look at a ban on overtime.
"We are not in favour of entrepreneurship in general, but we are in favour of the entrepreneurship that respects workers’ rights and the natural environment.
We are not in favour of the sort of extortionists, nor of the Government-funded entrepreneurs who looted public wealth and exploited the labour force. We make a gift of those people to the governments of yesterday, whose interests they represented.
In contrast, this Government supports and encourages healthy entrepreneurship and those investors who come not to loot but to support the country, its people and its values.
Today the Government is in a position to present its plan that will result in the commencement of work on the Northern Axis Highway of Crete (BOAK), before the current term of Government is completed.
The study for BOAK which ensures a unified project design from Kastelli Kissamos to Siteia, will be put out to tender in October 2017. In particular, for the part of BOAK, from Chania to Agios Nikolaos, the tender for its construction will take place early in 2018, with the competitive dialogue procedure.
"We expect that the work will start at the beginning of 2019. And we'll be here, with the Regional Governor to find ourselves at the commencement of the work. The project will be completed in 4 to 5 years from its start.
With regard to the new airport at Kastelli, Heraklion, the form of the company that will take it over has been chosen as have the fees for local government and the Ministry of Infrastructure.
Also, an area of 1000 sqm has been defined that will be arranged appropriately for conducting conferences and exhibitions of local products. The realization of these projects and their operation will lead to considerable increase in employment.
Also in progress are other infrastructure projects, such as the junction at Agia Pelagia, the water project on the Lasithi Plateau, and improvements at Heraklion airport. Projects relating to routes to BOAK and also improvements at the airport of Chania.
Crete’s energy connectivity, which will turn it into an energy hub, increasing jobs and reducing households’s costs, is underway.
It is important for us to establish the role of Crete as an intermediate station along energy projects. Specifically, the Eurasia Interconnector cable which will link the electricity networks of Israel, Cyprus and Crete, but also the Eastmed pipeline that will transport natural gas from deposits in the Southeastern Mediterranean to Europe via Cyprus , Greece and Italy. A joint declaration between Greece, Cyprus and Israel has been signed for its promotion.
The exploitation of hydrocarbon deposits in the Southeastern Mediterranean, has placed Crete at the centre of the interest of oil companies.
"All these projects together will increase the importance of Crete, they will create jobs. Their construction will proceed under the strictest standards of international practice for the protection of the environment.
Within the framework of the Regional Conference, it has been agreed between the Ministry of education, the University, the Polytechnic, the Technological Education Institute of Crete and the Foundation for Technology and Research, for there to be a joint workshop, in order to determine the specific two-year programmes that will be implemented in Crete for High School graduates. The programmes that have been established by law for higher education, will give issue professional certificates of European qualifications.
[The workshop will be held in the last week of October and will be the first in the countryEd.]
The reform that will change the map of public health across the country is one that the Government is currently promoting this time and relates to Primary Health Care.
As part of this reform and in the first phase, Crete will be strengthened with 25 Local Health Units.
"There will be immediate results for the better functioning of the public health system as a whole, but also for the quality of life of local communities and to serve visitors to the island.
PM Tsipras closed by mentioning the project for the integrated management of urban waste in the Chania area, at a total cost of 9.1€ million which is being co-financed from public spending.
While visiting Iraklio…
The Government has placed special emphasis on research and technology, Prime Minister Alexis Tsipras said, during a visit to the Cretan premises of the Foundation for Research and Technology-Hellas (FORTH) on Thursday.
“Alexis Tsipras has stressed that the government has chosen – from the very beginning of his leadership of Greece and despite the economic conditions – to support research and young scientists, increasing funding by 200€ million, to start with, and creating a favorable institutional framework,” a statement from the Prime Minister’s office said.
It is the first time in Greece that expenditures for research accounted for 1% of the GDP, the position of alternate minister focusing on research and technology has been established, and the Hellenic Centre of Research and Innovation (ELIDEK) has been founded, PM Tsipras said. He also added that new funding tools were being used, like the superfund for holding companies to fund innovative technology.
“Our country’s comparative advantage is its human capital,” the PM noted, “and we must invest in young people and in infrastructures,” adding that “for the next five years, the national target is ‘brain gain’, something we can achieve step by step.”
[FORTH was founded in 1983 and is one of the largest and best-equipped research institutions in Greece. It is overseen by the general secretariat of research and technology (Ministry of Culture), it is headquartered in Iraklio, and it consists of six research centres throughout Greece.Ed]
“Crete is a place large enough to accommodate a wide range of productive activities.
"Some people try to justify their policy choices which represent the interests of the few and the powerful, by telling us that inequality is in the nature of human society
"I don’t know where they have found that written down. What I do know is that the redistribution of wealth, social protection, support for the small against the big, for the powerless in the face of the strong constitute gains of our modern civilisation."
"These are gains much more recent than the primitive neoliberalism of the jungle, in which the stronger eats the weaker. This primitive neoliberalism is passed of by the leader of the official opposition as a perspective for development and a stable model for the country."
"So, we are here to move the wheel of history forward. To fight against inequalities.
The Region of Crete is a very good example for us to define what we mean when we talk about reconstruction, about a new productive model.
"Reconstruction is, first and foremost, the increase in productive capacity and the growth in employment, stable and permanent employment.
"The goal is to restore a decent standard of living for working people and to ensure the adequate supply of social services. This describes the term "Equitable Development", namely, development, whose benefits are diffused into society and it does not function as a tool of accumulating wealth for some few and powerful people.
" The more effect combining of the rural sector with the tourism sector could result in much more, the will exists and it is a matter of better organisation and planning which we must resolve.
"To this end, the Animal Husbandry-Manufacturing -Tourism Forum set up by the Ministry of Development, aiming to combine with specific policies and incentives the Animal Husbandry sector with manufacturing industry and the tourism cluster.
"The qualitative growth of agricultural production mainly relates to the improvement of the quality of exports, standardization and certification.
"In the new Development Law being implemented by the Government, industry, manufacturing and animal husbandry are priority sectors, a trend that is confirmed by investors.
The sector of the economy this year gave so much impetus to growth, that today the OECD has been forced to revise its predictions and to talk about percentages that will touch and will exceed 3% growth in the third and fourth quarter of the year.
These are among the four highest quarterly rates of growth across the eurozone.
"For us, equitable tourism development also means a substantial improvement in working conditions. For us tourism development and investment means jobs".
An issue of concern for working people in Crete also is undeclared work and particularly in apprenticeships in tourist enterprises.
From 2010 the arrangements had been in force specified by a Joint Ministerial Decision which allows for the employment of apprentices in tourist enterprises, at the rate of 17% up to a maximum of 40 employees. Furthermore the employment of apprentices from schools in other EU countries or even from third countries had been legislated on, since there are bilateral conventions.
Today the Government is preparing a new Joint Ministerial Decision which will redefine the proportions of workers to apprentices, and which will involves the review of the level of apprentice pay, at 60% of the minimum wage in the country. In addition, it will look at a ban on overtime.
"We are not in favour of entrepreneurship in general, but we are in favour of the entrepreneurship that respects workers’ rights and the natural environment.
We are not in favour of the sort of extortionists, nor of the Government-funded entrepreneurs who looted public wealth and exploited the labour force. We make a gift of those people to the governments of yesterday, whose interests they represented.
In contrast, this Government supports and encourages healthy entrepreneurship and those investors who come not to loot but to support the country, its people and its values.
Today the Government is in a position to present its plan that will result in the commencement of work on the Northern Axis Highway of Crete (BOAK), before the current term of Government is completed.
The study for BOAK which ensures a unified project design from Kastelli Kissamos to Siteia, will be put out to tender in October 2017. In particular, for the part of BOAK, from Chania to Agios Nikolaos, the tender for its construction will take place early in 2018, with the competitive dialogue procedure.
"We expect that the work will start at the beginning of 2019. And we'll be here, with the Regional Governor to find ourselves at the commencement of the work. The project will be completed in 4 to 5 years from its start.
With regard to the new airport at Kastelli, Heraklion, the form of the company that will take it over has been chosen as have the fees for local government and the Ministry of Infrastructure.
Also, an area of 1000 sqm has been defined that will be arranged appropriately for conducting conferences and exhibitions of local products. The realization of these projects and their operation will lead to considerable increase in employment.
Also in progress are other infrastructure projects, such as the junction at Agia Pelagia, the water project on the Lasithi Plateau, and improvements at Heraklion airport. Projects relating to routes to BOAK and also improvements at the airport of Chania.
Crete’s energy connectivity, which will turn it into an energy hub, increasing jobs and reducing households’s costs, is underway.
It is important for us to establish the role of Crete as an intermediate station along energy projects. Specifically, the Eurasia Interconnector cable which will link the electricity networks of Israel, Cyprus and Crete, but also the Eastmed pipeline that will transport natural gas from deposits in the Southeastern Mediterranean to Europe via Cyprus , Greece and Italy. A joint declaration between Greece, Cyprus and Israel has been signed for its promotion.
The exploitation of hydrocarbon deposits in the Southeastern Mediterranean, has placed Crete at the centre of the interest of oil companies.
"All these projects together will increase the importance of Crete, they will create jobs. Their construction will proceed under the strictest standards of international practice for the protection of the environment.
Within the framework of the Regional Conference, it has been agreed between the Ministry of education, the University, the Polytechnic, the Technological Education Institute of Crete and the Foundation for Technology and Research, for there to be a joint workshop, in order to determine the specific two-year programmes that will be implemented in Crete for High School graduates. The programmes that have been established by law for higher education, will give issue professional certificates of European qualifications.
[The workshop will be held in the last week of October and will be the first in the countryEd.]
The reform that will change the map of public health across the country is one that the Government is currently promoting this time and relates to Primary Health Care.
As part of this reform and in the first phase, Crete will be strengthened with 25 Local Health Units.
"There will be immediate results for the better functioning of the public health system as a whole, but also for the quality of life of local communities and to serve visitors to the island.
PM Tsipras closed by mentioning the project for the integrated management of urban waste in the Chania area, at a total cost of 9.1€ million which is being co-financed from public spending.
While visiting Iraklio…
The Government has placed special emphasis on research and technology, Prime Minister Alexis Tsipras said, during a visit to the Cretan premises of the Foundation for Research and Technology-Hellas (FORTH) on Thursday.
“Alexis Tsipras has stressed that the government has chosen – from the very beginning of his leadership of Greece and despite the economic conditions – to support research and young scientists, increasing funding by 200€ million, to start with, and creating a favorable institutional framework,” a statement from the Prime Minister’s office said.
It is the first time in Greece that expenditures for research accounted for 1% of the GDP, the position of alternate minister focusing on research and technology has been established, and the Hellenic Centre of Research and Innovation (ELIDEK) has been founded, PM Tsipras said. He also added that new funding tools were being used, like the superfund for holding companies to fund innovative technology.
“Our country’s comparative advantage is its human capital,” the PM noted, “and we must invest in young people and in infrastructures,” adding that “for the next five years, the national target is ‘brain gain’, something we can achieve step by step.”
[FORTH was founded in 1983 and is one of the largest and best-equipped research institutions in Greece. It is overseen by the general secretariat of research and technology (Ministry of Culture), it is headquartered in Iraklio, and it consists of six research centres throughout Greece.Ed]
Eldorado Gold
Last Thursday the arbitration process was initiated after the finding by the Greek Government that Eldorado Gold’s subsidiary Hellas Gold is in violation of agreed obligations (2004) and environmental conditions (2011).
The case of the Greek Government (the Ministries of Finance and Environment & Energy) at the State Legal Council against Hellas Gold, the subsidiary of the Canadian multinational Eldorado Gold, documents fundamental breaches of the Contract of Transfer in 2003 of the mines of Cassandras, which was ratified by law in January 2004, and also records the trampling underfoot of environmental conditions that were adopted by a Joint Ministerial Decision in 2011.
The main breach and the focus of the conflict is a metal production technique known as "flash smelting." Despite the fact that the company was required to do so by the end of 2015, it has failed to demonstrate the appropriateness of this "flash smelting". "Flash smelting is only suitable for raw material with a low arsenic content," explains physicist Maria Kadoglou. "But in the case of the two mines in Skouries and Olympiada, the arsenic concentration is over 9%." "Flash smelting" is a metallurgical process designed to operate with an arsenic threshold below 0.4%.
During the flash smelting process, arsenic dust is released into the air – as much as 20,000 tons a year. The maximum permitted level is 20 kilos. There are no technologies to purify the air, says Ms. Kadoglou.
The mine is situated directly on top of a seismic fault. Were there to be an earthquake, millions of tons of poisonous waste could be released into the environment.
"To operate a mine like this you need a dry environment. So the groundwater has to be lowered. Yet the mountain in question is the most important water source in otherwise arid Chalkidiki, " she says.
Specifically, in the Appeal it is pointed out that the purpose of the Contract of Transfer was the exploitation of the national mining wealth and of the added value of this through the domestic production of pure metals manufactured on site at Μαντέμ Λάκκος the metalworking factory fed by concentrates from the mines of Olympiadas and Skouries.
The company’s technical study as submitted on 22.12.2014 “does not contain evidence of the implementation of the integrated metallurgical processing method, on which the licencing (both technical and environmental) of the construction and operation of the metalworking factory essentially relied.”
Other serious irregularities and gaps have been identified. There is no evidence that the final stages of production of pure metals - gold, copper and silver - are being undertaken and the fulfilment of its commitment to a vertically integrated production process is not reflected in company reports
Arbitration
Last Thursday the arbitration process was initiated after the finding by the Greek Government that Eldorado Gold’s subsidiary Hellas Gold is in violation of agreed obligations (2004) and environmental conditions (2011).
The decision will be issued within three months from the appointment of the arbitrator, is final and conclusive and enforceable immediately. It is not subject to any appeal and is binding on both parties.
Eldorado postpones decision
Eldorado Gold issued an announcement on Thursday saying it has entered “constructive dialogue” with the Greek Government and is postponing its decision.
“Eldorado Gold Corporation… has entered into constructive dialogue with Greece's Ministry of Energy and Environment with respect to the development of the company's subsidiary, Hellas Gold SA’s Kassandra Mine assets in Halkidiki, northern Greece,” the statement said.
“We are very pleased with the constructive dialogue that is underway with the Ministry of Energy and Environment,” said Eldorado President and CEO George Burns. “Furthermore, last week the Ministry issued a number of long overdue routine permits for our Olympias project. As a result of these developments we have decided to temporarily postpone our decision to place our assets in Halkidiki on care and maintenance.”
Last Thursday the arbitration process was initiated after the finding by the Greek Government that Eldorado Gold’s subsidiary Hellas Gold is in violation of agreed obligations (2004) and environmental conditions (2011).
The case of the Greek Government (the Ministries of Finance and Environment & Energy) at the State Legal Council against Hellas Gold, the subsidiary of the Canadian multinational Eldorado Gold, documents fundamental breaches of the Contract of Transfer in 2003 of the mines of Cassandras, which was ratified by law in January 2004, and also records the trampling underfoot of environmental conditions that were adopted by a Joint Ministerial Decision in 2011.
The main breach and the focus of the conflict is a metal production technique known as "flash smelting." Despite the fact that the company was required to do so by the end of 2015, it has failed to demonstrate the appropriateness of this "flash smelting". "Flash smelting is only suitable for raw material with a low arsenic content," explains physicist Maria Kadoglou. "But in the case of the two mines in Skouries and Olympiada, the arsenic concentration is over 9%." "Flash smelting" is a metallurgical process designed to operate with an arsenic threshold below 0.4%.
During the flash smelting process, arsenic dust is released into the air – as much as 20,000 tons a year. The maximum permitted level is 20 kilos. There are no technologies to purify the air, says Ms. Kadoglou.
The mine is situated directly on top of a seismic fault. Were there to be an earthquake, millions of tons of poisonous waste could be released into the environment.
"To operate a mine like this you need a dry environment. So the groundwater has to be lowered. Yet the mountain in question is the most important water source in otherwise arid Chalkidiki, " she says.
Specifically, in the Appeal it is pointed out that the purpose of the Contract of Transfer was the exploitation of the national mining wealth and of the added value of this through the domestic production of pure metals manufactured on site at Μαντέμ Λάκκος the metalworking factory fed by concentrates from the mines of Olympiadas and Skouries.
The company’s technical study as submitted on 22.12.2014 “does not contain evidence of the implementation of the integrated metallurgical processing method, on which the licencing (both technical and environmental) of the construction and operation of the metalworking factory essentially relied.”
Other serious irregularities and gaps have been identified. There is no evidence that the final stages of production of pure metals - gold, copper and silver - are being undertaken and the fulfilment of its commitment to a vertically integrated production process is not reflected in company reports
Arbitration
Last Thursday the arbitration process was initiated after the finding by the Greek Government that Eldorado Gold’s subsidiary Hellas Gold is in violation of agreed obligations (2004) and environmental conditions (2011).
The decision will be issued within three months from the appointment of the arbitrator, is final and conclusive and enforceable immediately. It is not subject to any appeal and is binding on both parties.
Eldorado postpones decision
Eldorado Gold issued an announcement on Thursday saying it has entered “constructive dialogue” with the Greek Government and is postponing its decision.
“Eldorado Gold Corporation… has entered into constructive dialogue with Greece's Ministry of Energy and Environment with respect to the development of the company's subsidiary, Hellas Gold SA’s Kassandra Mine assets in Halkidiki, northern Greece,” the statement said.
“We are very pleased with the constructive dialogue that is underway with the Ministry of Energy and Environment,” said Eldorado President and CEO George Burns. “Furthermore, last week the Ministry issued a number of long overdue routine permits for our Olympias project. As a result of these developments we have decided to temporarily postpone our decision to place our assets in Halkidiki on care and maintenance.”
New Democracy President Mitsotakis in Thessaloniki
New Democracy Leader, Kyriacos Mitsotakis, held his customary press conference at the Thessaloniki International Fair (TIF) on Sunday in which he outlined the set of policies he will implement if he succeeds in becoming Prime Minister at the next general election.
Mr.Mitsotakis pledged less taxes, a smaller public sector, a business-friendly environment, the promotion of investment and job creation for the country’s youth.
He vowed to negotiate with international creditors a reduction of Primary Surplus targets in order to cut taxes. To this end, he revealed that he plans to offer Greece’s creditors a programme of sweeping State spending cuts in exchange for lower taxation and lower social security contributions.
“I will demand and achieve a reduction in Primary Surpluses, because I will propose a set of reforms, and we will convince our partners that this is the right strategy for the country.”
“I am committed to a 20% reduction in business taxation within two months,” Mr. Mitsotakis said, adding that he is also committed to “a simplified licencing framework” for enterprises.
Specifically, Mitsotakis said, an ND government would reduce the hugely unpopular property tax, known as ENFIA, by 30 percent over two years. He also pledged a drastic simplification of tax laws, promising that the final framework would remain in place for five years in an attempt to reassure investors wary about frequent changes to tax regulations.
Referring to Eldorado Gold, Mr. Mitsotakis said "No country would leave mineral wealth untapped in the name of so-called environmental protection.""This kind of investment is positive for employment and Government revenue."
SYRIZA’s comment
"Mr. Mitsotakis has nothing new to say. His "rusty" policy proposal is well-known and proven to have dire consequences for the country and its citizens." That was the verdict of the SYRIZA press office on Mr. Mitsotakis’speech. The statement said:
"The President of New Democracy’s only plan remains exactly the same: to continue the disastrous neoliberal policy that bankrupted the country and the economy.
In Mr. Mitsotakis’s plan, the evaluation and the reconstruction of the public sector amounts to layoffs and the privatisation of public assets. In his new language, the sackings of public servants are called "liberalisation"! It is no secret that he wants to give schools and hospitals to the private sector. For Mr. Mitsotakis, the promotion of investment equals looting and the dissolving of labour rights, tax reductions mean new burdens on the middle and weaker social strata.
The funniest, yet most dangerous element of his speech is that it is his distinctive "seriousness" and "reliability" that he says will convince the creditors to reduce surpluses, with him promising new "reforms" in exchange – reforms which he does not specify – for after 2018!
In essence, Mr. Mitsotakis has pledged from the platform of the TIF a new memorandum-fortunately he will remain permanently in opposition!
It is certain that the country deserves better than the unrepentant neoliberal and dangerously populist Mr. Mitsotakis. Mr. Mitsotakis is convincing only as business salesman and not as a political leader, let alone as a candidate for Prime Minister."
New Democracy Leader, Kyriacos Mitsotakis, held his customary press conference at the Thessaloniki International Fair (TIF) on Sunday in which he outlined the set of policies he will implement if he succeeds in becoming Prime Minister at the next general election.
Mr.Mitsotakis pledged less taxes, a smaller public sector, a business-friendly environment, the promotion of investment and job creation for the country’s youth.
He vowed to negotiate with international creditors a reduction of Primary Surplus targets in order to cut taxes. To this end, he revealed that he plans to offer Greece’s creditors a programme of sweeping State spending cuts in exchange for lower taxation and lower social security contributions.
“I will demand and achieve a reduction in Primary Surpluses, because I will propose a set of reforms, and we will convince our partners that this is the right strategy for the country.”
“I am committed to a 20% reduction in business taxation within two months,” Mr. Mitsotakis said, adding that he is also committed to “a simplified licencing framework” for enterprises.
Specifically, Mitsotakis said, an ND government would reduce the hugely unpopular property tax, known as ENFIA, by 30 percent over two years. He also pledged a drastic simplification of tax laws, promising that the final framework would remain in place for five years in an attempt to reassure investors wary about frequent changes to tax regulations.
Referring to Eldorado Gold, Mr. Mitsotakis said "No country would leave mineral wealth untapped in the name of so-called environmental protection.""This kind of investment is positive for employment and Government revenue."
SYRIZA’s comment
"Mr. Mitsotakis has nothing new to say. His "rusty" policy proposal is well-known and proven to have dire consequences for the country and its citizens." That was the verdict of the SYRIZA press office on Mr. Mitsotakis’speech. The statement said:
"The President of New Democracy’s only plan remains exactly the same: to continue the disastrous neoliberal policy that bankrupted the country and the economy.
In Mr. Mitsotakis’s plan, the evaluation and the reconstruction of the public sector amounts to layoffs and the privatisation of public assets. In his new language, the sackings of public servants are called "liberalisation"! It is no secret that he wants to give schools and hospitals to the private sector. For Mr. Mitsotakis, the promotion of investment equals looting and the dissolving of labour rights, tax reductions mean new burdens on the middle and weaker social strata.
The funniest, yet most dangerous element of his speech is that it is his distinctive "seriousness" and "reliability" that he says will convince the creditors to reduce surpluses, with him promising new "reforms" in exchange – reforms which he does not specify – for after 2018!
In essence, Mr. Mitsotakis has pledged from the platform of the TIF a new memorandum-fortunately he will remain permanently in opposition!
It is certain that the country deserves better than the unrepentant neoliberal and dangerously populist Mr. Mitsotakis. Mr. Mitsotakis is convincing only as business salesman and not as a political leader, let alone as a candidate for Prime Minister."
“We must show our determination to conclude the Third Assessment as soon as possible.”
The greatest possible speed is expected to be made by the Government in the coming period in order to have implemented 80% of the required measures before November to conclude the Third Assessment.
The Prime Minister told his Cabinet, “We must show our determination to conclude the third review as soon as possible.” “I would like us to have completed most of the reforms demanded under the Third Assessment by November, to avoid giving anyone excuses, at home or abroad.”
The Cabinet was briefed by Euclid Tsakalotos on the outcomes of the Eurogroup, with the Finance Minister describing as positive the meeting of Eurozone Finance Ministers. Minister Tsakalotos said that no further fiscal measures were discussed, however, he did ask for the speedy implementation of the required measures to conclude the Third Assessment on time.
In televised remarks, the Greek Prime Ministers said that the country was on course to outperform budget targets set by creditors, for the second year running.
He said that Greece’s surplus, before debt servicing costs has been taken into account, will be higher than the 1.75% of GDP required by the Agreement.
He said that exiting the bailout programme was not just a calendar milestone, but a process of transition from a state of economic crisis to dynamic growth, a reorganisation of production, job recovery and the foundation for a strong welfare state.
He stressed that the steps taken in this direction are significant, and that the country has returned to positive growth rates.
Referring to the economy and investments, Tsipras stressed that “we are working to make the most of this positive momentum for the Greek economy.”
European Investment in Greece planned
European Investment Bank (EIB) plans to invest around 7€ billion in Greece in the period 2018-2020. The EIB’s Deputy Managing Director and Head of the Investment Group for Greece, Nicholas Jennett said last week that “Greece is one of the top countries which has benefited so far from a Juncker Plan, with projects approved worth 1.2€ billion, leading to investments of 3.7€ billion through private leverage”. This positive climate is expected to be confirmed during the inauguration of EIB’s new offices in Athens, September 29, by the bank’s head Werner Hoyer.
The press report said that EIB will approve investment projects worth more than 7€ billion over the next three years and noted that this money could double or even triple with the leverage process.
Greece signed funding agreements worth 1.516€ billion as part of the so-called Juncker Plan in 2016 and disbursements totaled 1.420€ billion. For 2017, agreements and disbursements are expected to exceed 2€ billion euros putting Greece at the sixth place for absorption rates after Italy, France, Spain, Germany and the UK.
Labour Inspectorate at work
184 companies have been called upon to provide written explanations for identified breaches of labour legislation and sanctions are pending.
Under the programme of targeted inspections of companies operating in the tourism sector, Inspectors from the Labour Inspectorate (ΣΕΠΕ) conducted 4,209 checks on island and mainland regions between May 1st and 30th August.
In 751 cases of fines were imposed for infringements of labour legislation totalling 4,683,392.90€, while 39 reports recommending charges were submitted.
ΣΕΠΕ announced that the programme of checks in the tourism industry will continue over the next period. At the same time it is calling on workers to bring forward named or anonymous accusations about violations of labour legislation using the phone number 15512 or at the local office of the Labour Inspectorate.
Greece backs “Equalisation Tax”
Greece is among ten countries which have signed a statement calling on the European Commission to examine the feasibility of the so-called equalisation tax, a tax of large internet companies on their turnover in each EU state, rather than their profits, proposed by France.
The letter – signed by the finance ministers of Italy, Spain, Greece, Portugal, Bulgaria, Slovenia, Romania, Austria, France and Germany – proposes internet companies should pay a tax on their turnover that would “reflect some of what these companies should be paying in terms of corporation tax”.
France wants to tax companies like Google and Facebook on their turnover, rather than profits, to increase revenue from global online groups, accused of paying too little in Europe.
Six countries opposed the idea, while the rest say there is a problem, but question if equalisation tax is the way to deal with it. According to one diplomat, the strongest level of opposition came from Ireland, Malta and Cyprus.
Others, including the UK argued caution, as the proposal could antagonise other non-EU countries, in particular the United States, and urged continuing work through the G20 and OECD process to reform the global corporation tax regime.
The greatest possible speed is expected to be made by the Government in the coming period in order to have implemented 80% of the required measures before November to conclude the Third Assessment.
The Prime Minister told his Cabinet, “We must show our determination to conclude the third review as soon as possible.” “I would like us to have completed most of the reforms demanded under the Third Assessment by November, to avoid giving anyone excuses, at home or abroad.”
The Cabinet was briefed by Euclid Tsakalotos on the outcomes of the Eurogroup, with the Finance Minister describing as positive the meeting of Eurozone Finance Ministers. Minister Tsakalotos said that no further fiscal measures were discussed, however, he did ask for the speedy implementation of the required measures to conclude the Third Assessment on time.
In televised remarks, the Greek Prime Ministers said that the country was on course to outperform budget targets set by creditors, for the second year running.
He said that Greece’s surplus, before debt servicing costs has been taken into account, will be higher than the 1.75% of GDP required by the Agreement.
He said that exiting the bailout programme was not just a calendar milestone, but a process of transition from a state of economic crisis to dynamic growth, a reorganisation of production, job recovery and the foundation for a strong welfare state.
He stressed that the steps taken in this direction are significant, and that the country has returned to positive growth rates.
Referring to the economy and investments, Tsipras stressed that “we are working to make the most of this positive momentum for the Greek economy.”
European Investment in Greece planned
European Investment Bank (EIB) plans to invest around 7€ billion in Greece in the period 2018-2020. The EIB’s Deputy Managing Director and Head of the Investment Group for Greece, Nicholas Jennett said last week that “Greece is one of the top countries which has benefited so far from a Juncker Plan, with projects approved worth 1.2€ billion, leading to investments of 3.7€ billion through private leverage”. This positive climate is expected to be confirmed during the inauguration of EIB’s new offices in Athens, September 29, by the bank’s head Werner Hoyer.
The press report said that EIB will approve investment projects worth more than 7€ billion over the next three years and noted that this money could double or even triple with the leverage process.
Greece signed funding agreements worth 1.516€ billion as part of the so-called Juncker Plan in 2016 and disbursements totaled 1.420€ billion. For 2017, agreements and disbursements are expected to exceed 2€ billion euros putting Greece at the sixth place for absorption rates after Italy, France, Spain, Germany and the UK.
Labour Inspectorate at work
184 companies have been called upon to provide written explanations for identified breaches of labour legislation and sanctions are pending.
Under the programme of targeted inspections of companies operating in the tourism sector, Inspectors from the Labour Inspectorate (ΣΕΠΕ) conducted 4,209 checks on island and mainland regions between May 1st and 30th August.
In 751 cases of fines were imposed for infringements of labour legislation totalling 4,683,392.90€, while 39 reports recommending charges were submitted.
ΣΕΠΕ announced that the programme of checks in the tourism industry will continue over the next period. At the same time it is calling on workers to bring forward named or anonymous accusations about violations of labour legislation using the phone number 15512 or at the local office of the Labour Inspectorate.
Greece backs “Equalisation Tax”
Greece is among ten countries which have signed a statement calling on the European Commission to examine the feasibility of the so-called equalisation tax, a tax of large internet companies on their turnover in each EU state, rather than their profits, proposed by France.
The letter – signed by the finance ministers of Italy, Spain, Greece, Portugal, Bulgaria, Slovenia, Romania, Austria, France and Germany – proposes internet companies should pay a tax on their turnover that would “reflect some of what these companies should be paying in terms of corporation tax”.
France wants to tax companies like Google and Facebook on their turnover, rather than profits, to increase revenue from global online groups, accused of paying too little in Europe.
Six countries opposed the idea, while the rest say there is a problem, but question if equalisation tax is the way to deal with it. According to one diplomat, the strongest level of opposition came from Ireland, Malta and Cyprus.
Others, including the UK argued caution, as the proposal could antagonise other non-EU countries, in particular the United States, and urged continuing work through the G20 and OECD process to reform the global corporation tax regime.
China is the honoured country
at the 82nd Thessaloniki International Fair (TIF)
16.9.2017
Greek Prime Minister Alexis Tsipras and Chinese Ambassador to Greece Zou Xiaoli cut the ribbon for the opening ceremony of the 82nd Thessaloniki International Fair (TIF) on September 9th 2017.
Prime Minister Alexis Tsipras hailed Sino-Greek cooperation last Saturday, expressing confidence for the further deepening of bilateral ties, during the opening of China's pavilion at Greece's top annual trade fair in Thessaloniki.
China is the honoured country at the 82nd Thessaloniki International Fair (TIF) which is the largest in terms of participants and visitors in the past decade, according to the Greek organizers. 250,000 visitors from 17 countries are expected to visit the Fair with its 1,500 exhibitors.
Addressing the event, the PM praised China's One Belt, One Road initiative, reiterated Greece's strong support and underlined the key role of Chinese investments in Greece's efforts to overcome the debt crisis and restore growth.
China’s honourary status at the 82nd Thessaloniki International Fair (TIF) this year is the culmination of a relationship that has strengthened in recent years and has much to offer in the years to come, PM Tsipras said.
"The Chinese Government’s strategic initiative to invest more than one trillion dollars globally with the ‘New Silk Road’ finds Greece in a phase of recovery from the economic crisis, at a time when it must use its most important comparative advantage, which is that our country is at the convergence point of three continents, to become a global transit, trade and energy hub. It will also broaden the prospects for development and give a boost to economic progress throughout the Balkans and the southeastern Mediterranean."
The Prime Minister called on Chinese companies to invest in Greece. “COSCO’s large investment at the port of Piraeus was followed by an important expression of interest for a series of investments at a moment when the Greek economy is eager for investments. The presence of Chinese companies is particularly important and it is welcome,” he added.
PM Tsipras said there is also great potential for cooperation in tourism and welcomed the introduction of a direct airline service from Athens to Beijing on September 30th. He welcomed Chinese companies exhibiting their products at the 82nd TIF and remarked: "I wish their participation in the 82nd TIF to mean further strengthening of relationships and for Thessaloniki and Northern Greece, following Piraeus, to play a stand-out role in strengthening relationships and attracting investment."
He stressed also the need for the peoples and the civilizations of Greece and China to tread together the path to a vision for a better world.
Addressing the ceremony, the Chinese Ambassador to Greece, Zou Xiaoli, noted that it was the first time after 19 years that China is the honoured country at Greece's most prestigious trade fair.
"This is a clear sign of the progress achieved in mutual understanding and trust between the two countries and peoples and of the joint efforts we make to address challenges to the benefit of all sides."
Ambassador Zou Xiaoli spoke about PM Tsipras’ recent visit to Beijing describing it as a “milestone” for the two countries which allowed the creation of a mutually beneficial relationship.
After the opening, accompanied by several Greek ministers, the Greek PM toured the Fair including China's exhibition hall which occupies an area of six acres, with about 170 companies including those representing major sectors of the Chinese economy.
The entire exhibition site, as well as the streets of Thessaloniki, had been decorated with 5,000 traditional Chinese red lanterns by the Municipality of Thessaloniki this year.
The Greek Prime Minister was welcomed with enthusiasm, informed about the products on display and in some cases offered to him as gifts.
At the start he saw an ultramodern model of a high-speed train, at the booth of COSCO, they offered him two animatronics (of the company's mascot) for his children; he visited the pavilions of high-tech companies, where they offered him a mobile phone; he examined a robot that brings articles to people and he tasted Chinese tea.
He also visited the booth of Chinese Telecommunications Company ZTE with which Digital Policy Minister Nikos Pappas signed an agreement of cooperation when he visited Beijing with the Prime Minister.
China is the honoured country at the 82nd Thessaloniki International Fair (TIF) which is the largest in terms of participants and visitors in the past decade, according to the Greek organizers. 250,000 visitors from 17 countries are expected to visit the Fair with its 1,500 exhibitors.
Addressing the event, the PM praised China's One Belt, One Road initiative, reiterated Greece's strong support and underlined the key role of Chinese investments in Greece's efforts to overcome the debt crisis and restore growth.
China’s honourary status at the 82nd Thessaloniki International Fair (TIF) this year is the culmination of a relationship that has strengthened in recent years and has much to offer in the years to come, PM Tsipras said.
"The Chinese Government’s strategic initiative to invest more than one trillion dollars globally with the ‘New Silk Road’ finds Greece in a phase of recovery from the economic crisis, at a time when it must use its most important comparative advantage, which is that our country is at the convergence point of three continents, to become a global transit, trade and energy hub. It will also broaden the prospects for development and give a boost to economic progress throughout the Balkans and the southeastern Mediterranean."
The Prime Minister called on Chinese companies to invest in Greece. “COSCO’s large investment at the port of Piraeus was followed by an important expression of interest for a series of investments at a moment when the Greek economy is eager for investments. The presence of Chinese companies is particularly important and it is welcome,” he added.
PM Tsipras said there is also great potential for cooperation in tourism and welcomed the introduction of a direct airline service from Athens to Beijing on September 30th. He welcomed Chinese companies exhibiting their products at the 82nd TIF and remarked: "I wish their participation in the 82nd TIF to mean further strengthening of relationships and for Thessaloniki and Northern Greece, following Piraeus, to play a stand-out role in strengthening relationships and attracting investment."
He stressed also the need for the peoples and the civilizations of Greece and China to tread together the path to a vision for a better world.
Addressing the ceremony, the Chinese Ambassador to Greece, Zou Xiaoli, noted that it was the first time after 19 years that China is the honoured country at Greece's most prestigious trade fair.
"This is a clear sign of the progress achieved in mutual understanding and trust between the two countries and peoples and of the joint efforts we make to address challenges to the benefit of all sides."
Ambassador Zou Xiaoli spoke about PM Tsipras’ recent visit to Beijing describing it as a “milestone” for the two countries which allowed the creation of a mutually beneficial relationship.
After the opening, accompanied by several Greek ministers, the Greek PM toured the Fair including China's exhibition hall which occupies an area of six acres, with about 170 companies including those representing major sectors of the Chinese economy.
The entire exhibition site, as well as the streets of Thessaloniki, had been decorated with 5,000 traditional Chinese red lanterns by the Municipality of Thessaloniki this year.
The Greek Prime Minister was welcomed with enthusiasm, informed about the products on display and in some cases offered to him as gifts.
At the start he saw an ultramodern model of a high-speed train, at the booth of COSCO, they offered him two animatronics (of the company's mascot) for his children; he visited the pavilions of high-tech companies, where they offered him a mobile phone; he examined a robot that brings articles to people and he tasted Chinese tea.
He also visited the booth of Chinese Telecommunications Company ZTE with which Digital Policy Minister Nikos Pappas signed an agreement of cooperation when he visited Beijing with the Prime Minister.
PM Tsipras’ Annual Policy Speech at TIF
The Greek Government is friendly toward healthy entrepreneurship. Greece can converse with Russia, China and the Arab world. These were two of the themes of Prime Minister Alexis Tsipras’ in his annual policy speech at the 82nd Thessaloniki International Fair.
"The timing of the completion of the Assessment is a very crucial issue. We are determined to move forward with great speed as part of the agreement," he stressed, disclosing that he would very soon convene the Cabinet so that the Government can make the necessary interventions in relation to the completion of the Assessment.
"We firmly believe that the European side will have a clear position against possible obstructions to the completion of the Third Assessment."
At the same time he requested the IMF to show its cards and decide its position in relation to the programme, putting forward the timescale as the end of the year.
"The aim is to promote the Greece of creativity and the Greece of hard work. Only with reforms and a change of the policy mix in favour of the most vulnerable, can we leave behind seven years of the Stewardship," he stressed, pointing out that in a year from now, the 83rd TIF will be held with the country out of Memoranda.
At the same time he estimated that with the targets for years 2016 and 2017 being exceeded and by the reduction of tax evasion and smuggling, it is possible to meet the targets and also to again give a dividend to the financially weakest.
But he conceded that signs of economic growth had not been felt so far by the majority of Greeks.
PM Tsipras added that around 500,000 jobs have been created since 2015 - "a record for the last 16 years".
Greece’s economy is expected to grow by about 2% in 2018, a sign that sacrifices are bearing fruit, Alexis Tsipras said outlining initiatives to boost employment and fight a brain drain.
PM Tsipras said the state would give financial incentives to employers to hire more younger workers and spend 156€ million to subsidise social security contributions of employers who will turn contractors into full-time staff. Unregistered work and contract jobs have increased during the debt crisis, as businesses are desperate to cut costs.
The Government will also pay 100€ million euros to subsidise unpaid workers in struggling sectors and businesses, he said, promising to fight labour law violations.
"A French businessman who came to Greece with my French counterpart this week approached me and told me that we have managed to transform Grexit to Grinvest not only for the French but for the rest of Europe," he said.
"The heightened interest for investments in Greece is not something that has happened by chance," he said recalling recent visits by French President Emmanuel Macron and Russian leader Vladimir Putin.
"We will have the fiscal space of a 3.5% Primary Surplus to make the necessary adjustments from 2019 and beyond. In addition to those that we have already made, I am referring to the adoption of the so-called countermeasures for 2019 and 2018 which is 1% of GDP for areas of social support in 2019 and in 2020 a further 1% in tax reductions. In 2016 we achieved a fantastic over-performance and that was one of the reasons that we were able to meet certain requirements of our lenders.
And in 2017 we had a positive over-achievement close to 1€ billion in the first seven months. We must be prudent during the next period but the overall picture is that we are over target, and we will again this year see to it that there is a dividend to the weakest."
"I see a creative Greece that, if it invests in innovation and in new technologies, can work wonders."
He reiterated again that for the Government, entrepreneurship and equitable development go hand in hand with the protection of the environment and of labour.
"2016 was a record for direct foreign investments with the highest rate since 2009. in 2017 it is expected that we will make an even bigger record."
"We are making a very great effort to combat pathologies such as the bureaucracy and the delay in issuing legal judgments that happened before our term of office. The difference we have with the neoliberal view is that we want a healthy business environment so we can protect labour relations and the environment. If we destroy the environment and human capital we will not have productivity in the country."
"Inertia and fear in the face of responsibility are pervasive in the Public Sector. Fear of signing anything." said Prime Minister Alexis Tsipras answering a question about his choice to put himself at the head of the investment Task Force.
"We want to create a climate and show the determination to move ahead with certain plans, of course, within the legal framework.", he stressed and added that there is a big discussion about the simplification of the legal framework and the acceleration of procedures to be announced by the Finance Ministry."
"We will only have won when Greece becomes bone of contention between investment strategies", he commented in response to a question about the investments from China and the increased European investment interest supported by President Macron’s initiative.
Greece has a unique advantage in its strategic location between three continents. Greece must become the country that will have its roots in the Eurozone but which will be able to spread its branches both to the East and to the North and to the South. And that is what we are trying to make a doctrine of a multidimensional and pro-active foreign policy. Greece is within the Eurozone, a pillar of European policy but at the same time a country that, as much as any other, can communicate and converse with Russia and with China and with the Arab world. Few countries can do this."
The Greek Government is friendly toward healthy entrepreneurship. Greece can converse with Russia, China and the Arab world. These were two of the themes of Prime Minister Alexis Tsipras’ in his annual policy speech at the 82nd Thessaloniki International Fair.
"The timing of the completion of the Assessment is a very crucial issue. We are determined to move forward with great speed as part of the agreement," he stressed, disclosing that he would very soon convene the Cabinet so that the Government can make the necessary interventions in relation to the completion of the Assessment.
"We firmly believe that the European side will have a clear position against possible obstructions to the completion of the Third Assessment."
At the same time he requested the IMF to show its cards and decide its position in relation to the programme, putting forward the timescale as the end of the year.
"The aim is to promote the Greece of creativity and the Greece of hard work. Only with reforms and a change of the policy mix in favour of the most vulnerable, can we leave behind seven years of the Stewardship," he stressed, pointing out that in a year from now, the 83rd TIF will be held with the country out of Memoranda.
At the same time he estimated that with the targets for years 2016 and 2017 being exceeded and by the reduction of tax evasion and smuggling, it is possible to meet the targets and also to again give a dividend to the financially weakest.
But he conceded that signs of economic growth had not been felt so far by the majority of Greeks.
PM Tsipras added that around 500,000 jobs have been created since 2015 - "a record for the last 16 years".
Greece’s economy is expected to grow by about 2% in 2018, a sign that sacrifices are bearing fruit, Alexis Tsipras said outlining initiatives to boost employment and fight a brain drain.
PM Tsipras said the state would give financial incentives to employers to hire more younger workers and spend 156€ million to subsidise social security contributions of employers who will turn contractors into full-time staff. Unregistered work and contract jobs have increased during the debt crisis, as businesses are desperate to cut costs.
The Government will also pay 100€ million euros to subsidise unpaid workers in struggling sectors and businesses, he said, promising to fight labour law violations.
"A French businessman who came to Greece with my French counterpart this week approached me and told me that we have managed to transform Grexit to Grinvest not only for the French but for the rest of Europe," he said.
"The heightened interest for investments in Greece is not something that has happened by chance," he said recalling recent visits by French President Emmanuel Macron and Russian leader Vladimir Putin.
"We will have the fiscal space of a 3.5% Primary Surplus to make the necessary adjustments from 2019 and beyond. In addition to those that we have already made, I am referring to the adoption of the so-called countermeasures for 2019 and 2018 which is 1% of GDP for areas of social support in 2019 and in 2020 a further 1% in tax reductions. In 2016 we achieved a fantastic over-performance and that was one of the reasons that we were able to meet certain requirements of our lenders.
And in 2017 we had a positive over-achievement close to 1€ billion in the first seven months. We must be prudent during the next period but the overall picture is that we are over target, and we will again this year see to it that there is a dividend to the weakest."
"I see a creative Greece that, if it invests in innovation and in new technologies, can work wonders."
He reiterated again that for the Government, entrepreneurship and equitable development go hand in hand with the protection of the environment and of labour.
"2016 was a record for direct foreign investments with the highest rate since 2009. in 2017 it is expected that we will make an even bigger record."
"We are making a very great effort to combat pathologies such as the bureaucracy and the delay in issuing legal judgments that happened before our term of office. The difference we have with the neoliberal view is that we want a healthy business environment so we can protect labour relations and the environment. If we destroy the environment and human capital we will not have productivity in the country."
"Inertia and fear in the face of responsibility are pervasive in the Public Sector. Fear of signing anything." said Prime Minister Alexis Tsipras answering a question about his choice to put himself at the head of the investment Task Force.
"We want to create a climate and show the determination to move ahead with certain plans, of course, within the legal framework.", he stressed and added that there is a big discussion about the simplification of the legal framework and the acceleration of procedures to be announced by the Finance Ministry."
"We will only have won when Greece becomes bone of contention between investment strategies", he commented in response to a question about the investments from China and the increased European investment interest supported by President Macron’s initiative.
Greece has a unique advantage in its strategic location between three continents. Greece must become the country that will have its roots in the Eurozone but which will be able to spread its branches both to the East and to the North and to the South. And that is what we are trying to make a doctrine of a multidimensional and pro-active foreign policy. Greece is within the Eurozone, a pillar of European policy but at the same time a country that, as much as any other, can communicate and converse with Russia and with China and with the Arab world. Few countries can do this."
President Macron in Athens
On Thursday, France's President Macrond warned the International Monetary Fund to refrain from demanding cuts beyond those already agreed, in upcoming talks.
“The IMF’s role in these talks must be in good faith and without adding further conditions,” Macron told journalists in a joint news conference with Greek Prime Minister Alexis Tsipras.
“We should not exhaust our Ministers and officials with nights and weeks of talks about the (Greek) growth rate over the next 20-25 years down to the last decimal point,” he added.
In an exchange with Greek President Prokopis Pavlopoulos also on Thursday, Macron suggested that the IMF should not “intervene” in European affairs and looked towards the creation of a European Monetary Fund.
In a speech on Pnyx Hill on Thursday night, President Macron proposed the creation of a “road map” to “rebuild the European Union” and attributed Greece’s crisis partly to a lack of European solidarity, calling it “a failure of Europe.”
Completing his two-day visit to Athens on Friday, French President Emmanuel Macron expressed his support for further French investments in Greece and encouraged authorities to press on with economic reforms.
“I personally guarantee French support,” President Macron said at the Stavros Niarchos Foundation Cultural Centre, where he and Greek Prime Minister Alexis Tsipras co-chaired a meeting of Greek and French entrepreneurs.
He urged European firms to step up their investments in Greece to “help reduce the country’s growing reliance on non-European countries, notably China”.
Addressing a round-table of Greek and French business leaders on Friday, Macron said Greece was “forced” to choose non-European investors “because the Europeans were not there.”
“We want Korean, Chinese and American investments, these are very important,” he said. “But if there are no European investors, then we are forced to select non-European investors.”
A failure to respond, he said, would show that Europeans have “no faith in Europe.”
President Macron called on French companies that have had a presence in the country for years to “give new energy, new dynamism to investments in Greece.”
He also underlined the importance of European solidarity in Greece. “We pushed Greece toward non-European investments and that does not gratify me,” he said.
PM Tsipras for his part, noted that Greece was finally “turning a page” after seven years of recession and was open for investments, describing the country as “an attractive destination for investors.”
He added that his Government was intent on creating a healthier environment for investments “by means of a plan for constant reforms” with the ultimate goal of generating much-needed jobs.
Greek government sources indicated that they were satisfied with the visit by Macron, noting that his references to the need for more democracy in Europe pointed to a close alignment with positions that have been expressed by PM Tsipras.
On Thursday, France's President Macrond warned the International Monetary Fund to refrain from demanding cuts beyond those already agreed, in upcoming talks.
“The IMF’s role in these talks must be in good faith and without adding further conditions,” Macron told journalists in a joint news conference with Greek Prime Minister Alexis Tsipras.
“We should not exhaust our Ministers and officials with nights and weeks of talks about the (Greek) growth rate over the next 20-25 years down to the last decimal point,” he added.
In an exchange with Greek President Prokopis Pavlopoulos also on Thursday, Macron suggested that the IMF should not “intervene” in European affairs and looked towards the creation of a European Monetary Fund.
In a speech on Pnyx Hill on Thursday night, President Macron proposed the creation of a “road map” to “rebuild the European Union” and attributed Greece’s crisis partly to a lack of European solidarity, calling it “a failure of Europe.”
Completing his two-day visit to Athens on Friday, French President Emmanuel Macron expressed his support for further French investments in Greece and encouraged authorities to press on with economic reforms.
“I personally guarantee French support,” President Macron said at the Stavros Niarchos Foundation Cultural Centre, where he and Greek Prime Minister Alexis Tsipras co-chaired a meeting of Greek and French entrepreneurs.
He urged European firms to step up their investments in Greece to “help reduce the country’s growing reliance on non-European countries, notably China”.
Addressing a round-table of Greek and French business leaders on Friday, Macron said Greece was “forced” to choose non-European investors “because the Europeans were not there.”
“We want Korean, Chinese and American investments, these are very important,” he said. “But if there are no European investors, then we are forced to select non-European investors.”
A failure to respond, he said, would show that Europeans have “no faith in Europe.”
President Macron called on French companies that have had a presence in the country for years to “give new energy, new dynamism to investments in Greece.”
He also underlined the importance of European solidarity in Greece. “We pushed Greece toward non-European investments and that does not gratify me,” he said.
PM Tsipras for his part, noted that Greece was finally “turning a page” after seven years of recession and was open for investments, describing the country as “an attractive destination for investors.”
He added that his Government was intent on creating a healthier environment for investments “by means of a plan for constant reforms” with the ultimate goal of generating much-needed jobs.
Greek government sources indicated that they were satisfied with the visit by Macron, noting that his references to the need for more democracy in Europe pointed to a close alignment with positions that have been expressed by PM Tsipras.
Eldorado Gold : “The issue is to have rules, to have tools and targeting, about what investments you want, what kind of conditions you apply”
On Monday Canadian Multinational Eldorado Gold Corporation announced plans to suspend investment at its operating mines, development projects and exploration assets in Greece.
In a press conference, George Burns, President and CEO of Eldorado Gold stressed that if the company is not granted the licenses it is entitled to by September 21st, it will cease investment in Greece. CEO Burns said that the licences had not been granted for “unknown bureaucratic reasons.”
Eldorado, which is targeting copper, gold, lead, silver and zinc, bought the Greek assets for nearly $2 billion in 2012. SYRIZA opposed Eldorado’s investment before taking office in 2015. The Government now says it wants it as long as it is “environmentally and economically sound”.
Eldorado’s plans to develop its mining operations in Halkidiki have also provoked protests by locals who fear it will ruin a landscape of pristine beaches and lush forests and destroy the region’s tourism.
Differences have dragged on for years, especially over compliance with environmental regulations.
Defence Minister, Panos Kammenos said “The country doesn’t need investment that leads to environmental catastrophes”, adding that he hoped the company would sit down for talks in order for its investment to continue.
On Monday Finance Minister Euclid Tsakalotos pointed to New Democracy as the possible instigator of Eldorado’s decision in order to create problems for the Government after Prime Minister Alexis Tsipras’ pro-business speech at the Thessaloniki International Fair on Saturday. Referring to the announcement by the Canadian multinational, he said: "For the third time in the last two years, Eldorado Gold is threatening an investment “freeze”. Four days before the start of the appeal to arbitration at the State Legal Council this coming Friday, Eldorado Gold is threatening to suspend its operations in Halkidiki on the 22nd of September, unless in the meantime the Government has issued "routine" licenses needed for it to proceed unhindered in its work. For the third time it is also obvious that the motivation is to use the employees as hostages, threatening them with dismissal if Eldorado Gold’s operation does not come off. They are also reaching the point, completely in tune with New Democracy, of posing the question of a change of Government! The correct thing is to have rules and tools about what investments you want."
Government spokesman Dimitris Tzanakopoulos told Skai TV that the Eldorado management had a meeting a few days earlier with Mr. Mitsotakis.
"New Democracy insists on identifying itself with business interests, an act that does not fit with a liberal-oriented party. They do not know the crux of the case or the issues at stake. The company has not submitted the clarifications requested by the Ministry for a technical study. We suggested that we go to arbitration and Eldorado does not accept that perhaps because they fear that they will be defeated. It is the third time that the company has announced the end of its investment activities. We want investment to be made on the basis of national and European legislation. The Greek Government can not accept ultimatums. For issues on which we have different perspectives with the company there is the institutional process of arbitration.
"It is not just a matter of a big investor coming, seeing a Minister and saying what they want to do. The issue is to have rules, to have tools and targeting, about what investments you want, what kind of conditions you apply so that the country can leave the crisis without returning to the period before 2009."
"Eldorado Gold is probably not used to working in European countries," Energy and Environment Minister George Stathakis commented bitingly. He sent Eldorado Gold a message in response to its ultimatum. "The licensing process is at just the stage that I announced yesterday [Monday Ed], Skouries is at 60% of completion and Olympiada is at 100%...
"It should be clear to all that this investment should abide by the two inviolate rules in the basic contract it has with the Greek State.
"Firstly, to be environmentally safe - and this has immense importance because the process of producing an ore also generates quantities of arsenic tens of times above the permissible limits means the highest environmental security is needed for us not to experience an ecological disaster. The highest environmental standards must be guaranteed as stipulated by the European and Greek legislation firstly and secondly the company must vertically integrate all its activities, that is to say it must do the metallurgy in Greece. This is a key issue and the subject of controversy because the method they are proposing to use has not yet been licensed, so as to benefit the Greek economy ... [the Greek Supreme Court currently rejects the precise methodology that deals with the arsenic produced by the mining method Ed.]
So our position is simple, these are the two conditions. There are issues that still have not been resolved by the company and by the State. Instead of the technical dialogue proposed by the company to resolve them, we suggested arbitration. The arbitration takes place this week, the State Legal Council is responsible, so we have proceeded in a co-ordinated way to the best solution."
"New Democracy and its satellites are insisting on the turbulent development model that is shaped by business interests at the expense of the public interest, indifference to the environment and the full deregulation of the labour market."
“Is New Democracy interested in how the investment of millions of euros in tourism infrastructure in Halkidiki will be affected if the company does not comply with the environmental rules? Or is it just about creating impressions at the expense of the public interest?”
SYRIZA’s Director of Economic Policy and Deputy Finance Minister, Trifon Alexiadis told SKAI TV that "The Contract states that when there is a dispute, the parties will go to arbitration. The company cannot say “no” to arbitration."
On Thursday Canada's Eldorado Gold Corporation said it had received formal notice of arbitration.
The arbitration notice alleges the company’s technical study for the Madem Lakkos metallurgical plant, for treating Olympias and Skouries oress is deficient and therefore violates the project's environmental terms. The Government says the ores to be processed will contain arsenic well above accepted levels, and the Government has to make sure the company fully conforms to environmental standards.
Eldorado said it is confident that its study meets the contractual requirements.
On Monday Canadian Multinational Eldorado Gold Corporation announced plans to suspend investment at its operating mines, development projects and exploration assets in Greece.
In a press conference, George Burns, President and CEO of Eldorado Gold stressed that if the company is not granted the licenses it is entitled to by September 21st, it will cease investment in Greece. CEO Burns said that the licences had not been granted for “unknown bureaucratic reasons.”
Eldorado, which is targeting copper, gold, lead, silver and zinc, bought the Greek assets for nearly $2 billion in 2012. SYRIZA opposed Eldorado’s investment before taking office in 2015. The Government now says it wants it as long as it is “environmentally and economically sound”.
Eldorado’s plans to develop its mining operations in Halkidiki have also provoked protests by locals who fear it will ruin a landscape of pristine beaches and lush forests and destroy the region’s tourism.
Differences have dragged on for years, especially over compliance with environmental regulations.
Defence Minister, Panos Kammenos said “The country doesn’t need investment that leads to environmental catastrophes”, adding that he hoped the company would sit down for talks in order for its investment to continue.
On Monday Finance Minister Euclid Tsakalotos pointed to New Democracy as the possible instigator of Eldorado’s decision in order to create problems for the Government after Prime Minister Alexis Tsipras’ pro-business speech at the Thessaloniki International Fair on Saturday. Referring to the announcement by the Canadian multinational, he said: "For the third time in the last two years, Eldorado Gold is threatening an investment “freeze”. Four days before the start of the appeal to arbitration at the State Legal Council this coming Friday, Eldorado Gold is threatening to suspend its operations in Halkidiki on the 22nd of September, unless in the meantime the Government has issued "routine" licenses needed for it to proceed unhindered in its work. For the third time it is also obvious that the motivation is to use the employees as hostages, threatening them with dismissal if Eldorado Gold’s operation does not come off. They are also reaching the point, completely in tune with New Democracy, of posing the question of a change of Government! The correct thing is to have rules and tools about what investments you want."
Government spokesman Dimitris Tzanakopoulos told Skai TV that the Eldorado management had a meeting a few days earlier with Mr. Mitsotakis.
"New Democracy insists on identifying itself with business interests, an act that does not fit with a liberal-oriented party. They do not know the crux of the case or the issues at stake. The company has not submitted the clarifications requested by the Ministry for a technical study. We suggested that we go to arbitration and Eldorado does not accept that perhaps because they fear that they will be defeated. It is the third time that the company has announced the end of its investment activities. We want investment to be made on the basis of national and European legislation. The Greek Government can not accept ultimatums. For issues on which we have different perspectives with the company there is the institutional process of arbitration.
"It is not just a matter of a big investor coming, seeing a Minister and saying what they want to do. The issue is to have rules, to have tools and targeting, about what investments you want, what kind of conditions you apply so that the country can leave the crisis without returning to the period before 2009."
"Eldorado Gold is probably not used to working in European countries," Energy and Environment Minister George Stathakis commented bitingly. He sent Eldorado Gold a message in response to its ultimatum. "The licensing process is at just the stage that I announced yesterday [Monday Ed], Skouries is at 60% of completion and Olympiada is at 100%...
"It should be clear to all that this investment should abide by the two inviolate rules in the basic contract it has with the Greek State.
"Firstly, to be environmentally safe - and this has immense importance because the process of producing an ore also generates quantities of arsenic tens of times above the permissible limits means the highest environmental security is needed for us not to experience an ecological disaster. The highest environmental standards must be guaranteed as stipulated by the European and Greek legislation firstly and secondly the company must vertically integrate all its activities, that is to say it must do the metallurgy in Greece. This is a key issue and the subject of controversy because the method they are proposing to use has not yet been licensed, so as to benefit the Greek economy ... [the Greek Supreme Court currently rejects the precise methodology that deals with the arsenic produced by the mining method Ed.]
So our position is simple, these are the two conditions. There are issues that still have not been resolved by the company and by the State. Instead of the technical dialogue proposed by the company to resolve them, we suggested arbitration. The arbitration takes place this week, the State Legal Council is responsible, so we have proceeded in a co-ordinated way to the best solution."
"New Democracy and its satellites are insisting on the turbulent development model that is shaped by business interests at the expense of the public interest, indifference to the environment and the full deregulation of the labour market."
“Is New Democracy interested in how the investment of millions of euros in tourism infrastructure in Halkidiki will be affected if the company does not comply with the environmental rules? Or is it just about creating impressions at the expense of the public interest?”
SYRIZA’s Director of Economic Policy and Deputy Finance Minister, Trifon Alexiadis told SKAI TV that "The Contract states that when there is a dispute, the parties will go to arbitration. The company cannot say “no” to arbitration."
On Thursday Canada's Eldorado Gold Corporation said it had received formal notice of arbitration.
The arbitration notice alleges the company’s technical study for the Madem Lakkos metallurgical plant, for treating Olympias and Skouries oress is deficient and therefore violates the project's environmental terms. The Government says the ores to be processed will contain arsenic well above accepted levels, and the Government has to make sure the company fully conforms to environmental standards.
Eldorado said it is confident that its study meets the contractual requirements.
Safeguards for Working People now State Law
"The Ministry of Labour, Social Security and Social Solidarity’s Bill which puts in place the necessary safeguards for working people, was passed on Thursday and is now state law", said the Minister Effie Achtsioglou.
At the same time, the Minister noted that the necessary conditions are now in place to deal effectively with the phenomenon of undeclared, of under-declared and unpaid work. "The Law also includes regulations about national insurance and very important regulations about the rights of people with disabilities, which should help them substantially in their daily lives."
The Minister also gave special emphasis to the regulation in the Law, according to which no employer and no business that violates labour laws, will have access to public money either national resources or EU funds or to any other sort of grant. "This is now the law of the State," she said.
It is now State Law that, employee, who have not been paid, may be considered as sacked, so they can immediately take unemployment benefit. The Law includes the provision for a summary judgment against an employer for wages due to employees and makes a drastic reduction in the cost of the procedures for employees to claiming pay arrears.
These settings are accompanied by a strenthened Labour Inspectorate (ΣΕΠΕ). "Over the last period, we have strengthened the ΣΕΠΕ with more staff, the key control mechanism, which intervenes in the labour market. There has been some recruitment and there will be more. Its tools have also been strengthened. Now it has an informational system that allows it to make targeted and effective checks. Furthermore, it has also been strengthened financially, as approved a short time ago, using an ESPA stream by 7.5€ million, in order to implement pilot checks and strengthen the provision of legal advice to working people".
"This law is a further step in an overall strategy being developed by the Ministry of Labour. The regulations place a very serious incentive and priority on consistent employers and on consistent businesses."
"The Ministry of Labour, Social Security and Social Solidarity’s Bill which puts in place the necessary safeguards for working people, was passed on Thursday and is now state law", said the Minister Effie Achtsioglou.
At the same time, the Minister noted that the necessary conditions are now in place to deal effectively with the phenomenon of undeclared, of under-declared and unpaid work. "The Law also includes regulations about national insurance and very important regulations about the rights of people with disabilities, which should help them substantially in their daily lives."
The Minister also gave special emphasis to the regulation in the Law, according to which no employer and no business that violates labour laws, will have access to public money either national resources or EU funds or to any other sort of grant. "This is now the law of the State," she said.
It is now State Law that, employee, who have not been paid, may be considered as sacked, so they can immediately take unemployment benefit. The Law includes the provision for a summary judgment against an employer for wages due to employees and makes a drastic reduction in the cost of the procedures for employees to claiming pay arrears.
These settings are accompanied by a strenthened Labour Inspectorate (ΣΕΠΕ). "Over the last period, we have strengthened the ΣΕΠΕ with more staff, the key control mechanism, which intervenes in the labour market. There has been some recruitment and there will be more. Its tools have also been strengthened. Now it has an informational system that allows it to make targeted and effective checks. Furthermore, it has also been strengthened financially, as approved a short time ago, using an ESPA stream by 7.5€ million, in order to implement pilot checks and strengthen the provision of legal advice to working people".
"This law is a further step in an overall strategy being developed by the Ministry of Labour. The regulations place a very serious incentive and priority on consistent employers and on consistent businesses."
Alexis Tsipras welcomes
President Macron
9.9.2017
At an event held on the Pnyx Hill on Thursday to welcome French President Emmanuel Macron to Athens on an official two-day visit, both leaders delivered key note speeches.
"Your Prime Minister and your Government always wanted to keep Greece in Europe, despite all the pressure" he said, and announced that he is planning initiatives that will lead to "a more social Europe".
He went on to explain that the aim is for Greece to regain its economic sovereignty and live through growth. "The time has come for Greece to look towards the future, and not implement rules decided by others,” he said.
President Macron also urged the International Monetary Fund to step back from its role in European bailouts. “I don’t think it was the right method for the IMF to supervise European programmes and intervene in the way it did,” he said. “Let’s work within Europe and not turn to outside agencies.”
He said the European Stability Mechanism should play the lead role in financial support within the eurozone. “We must rediscover the enthusiasm that the Union was founded upon and change, not with technocrats and not with bureaucracy.” He backed Germany’s idea of a European Monetary Fund (EMF) to counter economic shocks in euro zone member states but stressed the ultimate goal of deeper integration should remain a euro zone budget.
The visit includes a significant business delegation consisting of approximately 100 executives and representatives of enterprises and organisations. Approximately sixty executives representing Greek businesses and organizations of both the private and public sectors will participate in a working round-table meeting with the French business leaders at Stavros Niarchos Cultural Center on Friday.
Shipping, banking, energy, constructions, food, telecom, tourism and pharmaceuticals are among the Greek industries to be represented.
During his speech, Greek Prime Minister Alexis Tsipras stressed the need to promote a dialogue for “a new democratic contract in Europe”, to restore solidarity and equality between states and among citizens. “We can achieve fiscal unification if we achieve political and economic integration,” he said, adding he supports President Macron’s proposal for the appointment of a Eurozone Finance Mminister. He added however that Eurozone will also need a Social Justice Minister.
Optimism at Euro Working Group
EU Finance Ministers (EWG) met on Monday afternoon in Brussels. They sent out optimistic signals as regards the course of the Greek economy and endorsed the European Commission's proposal for Greece to exit the excessive deficit procedure, taking the first step towards its final approval in the course of September by the Committee of the Permanent Representatives of the EU Governments (COREPER).
As the Bailout Programme enters its last months and in view of the informal Eurogroup next Friday in Tallinn, the EWG examined the implementation of the reforms and the prospects for the Third Assessment. The technical teams are expected to return to Athens next week, while the Institutions’ chiefs are expected in mid-October. Well-informed sources estimated that the cooperation of all parties in the next Assessment will be close and take place in a positive atmosphere.
Improving the image
The EWG found that the economic situation in Greece has improved. Achieving a Primary Surplus of about 1.75% is possible, bank deposits are recovering and growth this year could exceed 1.8%. With regard to the next Assessment, this will include 95 requirements, most of which relate to the implementation of the reforms already legislated.
When it comes to the repayment of the arrears of Government debts to individuals, amounting to 800€ million, pending since the previous Assessment, the Greek side is next week expected to send further data about what has been cleared up until now. Following the audit of that data, the European Stability Mechanism is expected to approve the staged repayments.
Problem with the IMF
It seems, both the Greek and the European sides want Greece to exit the Memoranda. There is concern that the IMF could still put forward further unreasonable demands, such as the reduction of tax-free allowances being applied from 2019 and not 2020, or the deferral of the countermeasures until 2023 or the auditing of the capital adequacy of Greek banks.
Already, the Governor of the Bank of Greece Yannis Stournaras seems worried by the prevailing atmosphere and was quick to declare in Sunday’s “To Bema”: “If the IMF wants to leave [the Bailout Programme Ed], let it leave. We don't need them anymore”.
"Your Prime Minister and your Government always wanted to keep Greece in Europe, despite all the pressure" he said, and announced that he is planning initiatives that will lead to "a more social Europe".
He went on to explain that the aim is for Greece to regain its economic sovereignty and live through growth. "The time has come for Greece to look towards the future, and not implement rules decided by others,” he said.
President Macron also urged the International Monetary Fund to step back from its role in European bailouts. “I don’t think it was the right method for the IMF to supervise European programmes and intervene in the way it did,” he said. “Let’s work within Europe and not turn to outside agencies.”
He said the European Stability Mechanism should play the lead role in financial support within the eurozone. “We must rediscover the enthusiasm that the Union was founded upon and change, not with technocrats and not with bureaucracy.” He backed Germany’s idea of a European Monetary Fund (EMF) to counter economic shocks in euro zone member states but stressed the ultimate goal of deeper integration should remain a euro zone budget.
The visit includes a significant business delegation consisting of approximately 100 executives and representatives of enterprises and organisations. Approximately sixty executives representing Greek businesses and organizations of both the private and public sectors will participate in a working round-table meeting with the French business leaders at Stavros Niarchos Cultural Center on Friday.
Shipping, banking, energy, constructions, food, telecom, tourism and pharmaceuticals are among the Greek industries to be represented.
During his speech, Greek Prime Minister Alexis Tsipras stressed the need to promote a dialogue for “a new democratic contract in Europe”, to restore solidarity and equality between states and among citizens. “We can achieve fiscal unification if we achieve political and economic integration,” he said, adding he supports President Macron’s proposal for the appointment of a Eurozone Finance Mminister. He added however that Eurozone will also need a Social Justice Minister.
Optimism at Euro Working Group
EU Finance Ministers (EWG) met on Monday afternoon in Brussels. They sent out optimistic signals as regards the course of the Greek economy and endorsed the European Commission's proposal for Greece to exit the excessive deficit procedure, taking the first step towards its final approval in the course of September by the Committee of the Permanent Representatives of the EU Governments (COREPER).
As the Bailout Programme enters its last months and in view of the informal Eurogroup next Friday in Tallinn, the EWG examined the implementation of the reforms and the prospects for the Third Assessment. The technical teams are expected to return to Athens next week, while the Institutions’ chiefs are expected in mid-October. Well-informed sources estimated that the cooperation of all parties in the next Assessment will be close and take place in a positive atmosphere.
Improving the image
The EWG found that the economic situation in Greece has improved. Achieving a Primary Surplus of about 1.75% is possible, bank deposits are recovering and growth this year could exceed 1.8%. With regard to the next Assessment, this will include 95 requirements, most of which relate to the implementation of the reforms already legislated.
When it comes to the repayment of the arrears of Government debts to individuals, amounting to 800€ million, pending since the previous Assessment, the Greek side is next week expected to send further data about what has been cleared up until now. Following the audit of that data, the European Stability Mechanism is expected to approve the staged repayments.
Problem with the IMF
It seems, both the Greek and the European sides want Greece to exit the Memoranda. There is concern that the IMF could still put forward further unreasonable demands, such as the reduction of tax-free allowances being applied from 2019 and not 2020, or the deferral of the countermeasures until 2023 or the auditing of the capital adequacy of Greek banks.
Already, the Governor of the Bank of Greece Yannis Stournaras seems worried by the prevailing atmosphere and was quick to declare in Sunday’s “To Bema”: “If the IMF wants to leave [the Bailout Programme Ed], let it leave. We don't need them anymore”.
Looking Forward to the 82nd Thessaloniki International Fair (TIF)
At least 200 Chinese companies will participate in the 82nd Thessaloniki International Fair (TIF) to be held on September 9th -17th , with the participation of China as an “honoured country”.
A series of meetings between Greek and Chinese companies have been planned in an effort to attract investments, strengthen economic ties and enhance cooperation between the two countries.
A key event of the 82nd TIF will be the Memorandum of Understanding (MoU) to be signed between the China Development Bank (CDB) and the Public Power Corporation (PPC) during a conference organised within the framework of the fair.
Environment and Energy Minister Giorgos Stathakis, Chinese Ambassador Zou Xiaoli, the Head of the European Commission Representation in Greece Panos Karvounis, as well as representatives of companies and banks from China and SE Europe will speak at the conference.
On its part, China Development Bank is planning investments involving more than 900 projects in the 64 countries along the route of Silk Road.
The participation of COSCO, which is planning to invest around 600€ million in the port of Piraeus over the next decade, is also expected to attract the interest of visitors. Its decision to choose Piraeus as a gateway for Chinese products to enter the EU market is an important initiative for both the Greek economy and for relations between China and the EU.
Other companies that have registered to hold meetings within the framework of the fair are CEFC China Energy Company Limited, China Corporate United Investment Holding, ΙNESA, Shanghai Feilo Acoustics, Shanghai Electric Group Shanghai Building Materials, Ezi Surg Medical, Shenda International Trade, Shanghai Silk Group Culture Development and Shanghai Rainbowfish Ocean Technology.
This follows an initiative of TIF and Enterprise Greek Invest and Trade in order to identify companies that share common features and facilitate them in their efforts to plan their meetings.
Chinese companies are mostly interested in the sectors of energy, food, tourism, scientific innovation, culture, real estate and health care.
Another important development to be announced is the launch by Air China of new direct flights linking Athens and Beijing, starting September 30th.
In total, more than 1,500 exhibitors are expected to participate in the conference, the managing director of TIF-Helexpo Kyriakos Pozrikidis told the Athens-Macedonian News Agency.
“The economic indicators are positive”
At a meeting with the leadership of the Hellenic Bank Association (HBA) on Friday, Prime Minister Alexis Tsipras said the economic indicators are positive and the figures released by the Hellenic Statistical Authority are encouraging,
ELSTAT’s second quarter provisional figures showed a strong recovery even before the conclusion of the Second Programme Assessment. The Greek economy grew by 0.5% compared to the first quarter of 2017 and by 0.8% compared to the second quarter of 2016.
Announcing these figures, the Government Statement said “This trend was further reinforced after the conclusion of the Second Programme Assessment, Greece’s successful return to the [bond Ed]markets and the upgrades of the Greek economy by the international rating agencies. We continue to strive for equitable growth with protection of the labour market and for building a new production model.”
“If we continue to have the same positive rates as we have had in the first two quarters and especially the third, we can reach growth rates in 2017 that approach 2%, which the Greek economy has not seen in more than a decade,” Alexis Tsipras said.
“What is needed,” he said, “is to maintain the fiscal balance, provide liquidity tools and increase demand to help the Greek economy grow.” Banks can play a very useful role in this effort, the Prime Minister added, while noting that trust in Greek banks must be rebuilt, both among investors and among depositors.
The talks also focused on conditions in the banking sector and the improvements made there, with banks returning to profit after almost a decade of losses, a gradual recovery of deposits and a slow but steady reduction of bad loans. On the other side, the banks noted slow credit expansion due to low demand by households, the continuing restrictions imposed by capital controls, and the challenge still posed by the reduction of Non-Productive Loans (NPLs).
Later that day the PM received the leadership of the Hellenic Confederation of Professionals, Craftsmen & Merchants (GSEVEE).
“The main issue is to have a convergence between good macroeconomic indicators and growth rates and the real situation, as experienced by SMEs, merchants and craftspeople, because sometimes we can get carried away,” he said.
GSEVEE President Giorgos Kavvathas referred to a survey carried out in July 2017, which showed a real improvement in indicators by about 10%, though he did say this was not enough.
After the meeting, Mr. Kavvathas said that he had raised the key problems facing GSEVEE members, including overtaxation, social insurance issues, financing and the need for a development bank focused on SMEs and micro-businesses, the need for “unseizable” business bank accounts and the outstanding debts of some 300,000 entrepreneurs.
In an earlier meeting with the leadership of the Hellenic Confederation of Commerce and Entrepreneurship (ESEE), PM Tsipras noted that Greece needs a new production model, a new development model and has to rebuild small and medium-sized enterprise on a healthier foundation.
According to the President of ESEE Vassilis Korkidkis, the Prime Minister told them that there is still hope and he would continue to work with the Government’s economic staff in order to persuade Greece’s creditors to agree to “unseizable” business bank accounts.
Greek Manufacturing
Growth in Greek manufacturing activity accelerated in August for the third consecutive month as rising demand at home and abroad led firms to add jobs and increase production, a survey showed on Friday. Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about 10% of the economy, rose to 52.2 from 50.5 in July, its highest print since August 2008.
Readings above 50 denote expansion in activity. The pickup in growth was driven by a solid increase in new business, the sharpest since May 2014, with export orders also rising for the first time in a year. “Having endured years of economic malaise, the latest data will be music to the ears of many concerned with Greek manufacturing,” said IHS Markit economist Alex Gill.
To keep pace with rising client demand, companies increased staffing numbers for the fourth straight month in August, at the most marked pace in more than 17 years. “Underlying the expansion were robust increases in new business, contributing to the sharpest round of job creation since January 2000. This will buoy hopes for a reduction in the country’s high unemployment,” Gill said. While input price inflation remained solid, strong client demand boosted manufacturers’ pricing power, leading to higher factory gate prices on average, the survey showed.
As production grew, manufacturers increased purchasing activity at a rate that hit a nine-year high. “The strong degree of optimism can at least partially account for the rise in demand and is indicative of a more positive narrative surrounding the Greek economy, spurred on by the country’s return to bond markets in July,” Mr. Gill said.
The Numbers
* GDP increased by 0.8%
* Consumption increased by 1.2%
* Exports grew by 9.5%
* Imports rose by 3.1% rise
* Manufacturing recorded a 9 year high (since
August 2008) of increased exports.
* There was a 17 year record (since January 2000)
of increased Jobs
Data supplied by ELSTAT and Markit (a global financial information and services company)
Public Sector Reform
Speaking on television, Olga Gerovasili, the Minister for Administrative Reconstruction, stressed that "just with the digital signature [The Digital Signature is a mathematical system used to prove the authenticity of a digital message or document Ed], the State is saving 200€ million. That is how we will get the rationalization of the public sector and not with redundancies."
On the reform of the Public Administration, she stressed that the Government has adopted a system of evaluation in the Public Sector that has objective and transparent criteria. The evaluation, she said, "must be objective and merit-based and must do away with the system of clientelism".
The reform of the Public Administration, she continued, "comes to improve relationships between the state, society, the citizen, undertaking a series of measures such as reducing bureaucracy, speeding up procedures, using the digital signature, etc."
"We are streamlining the State to make it friendly to the citizen and to business. The National Strategy for Administrative Reform aims to make the public administration a tool for development".
As an example of removing party political influence, she spoke of the upcoming competition in September for the posts of Ministerial General Secretaries.
As regards contracted staff, she reported that, within the framework of the financial obligations and commitments of the country, “appointments must be targeted and involve employees who have for years covered for fixed and permanent needs in the context of supporting the welfare State and the citizen.
Finally she underlined that "we want to rationalise the public sector and not to the increase it, so that it can serve as a tool for development".
Labour Legislation
The Bill on the Protection of Working People was adopted in principle by Parliamentary Committee. The parties of the Government Coalition voted in favour of the Bill, the Communist Party voted "present" [i.e. abstained Ed], while all the other parties reserved their positions for the Plenary meeting of Parliament when the Bill will be introduced for final voting.
Presenting the Articles of the Bill, Labour Minister Effie Achtsioglou spoke about the legislation being a positive sign for the society, "the Ministry of Labour’s first purely protective Bill since the beginning of the crisis until today" and she made specific reference to the three central principles, which are moving in that direction.
She referred to the Social Insurance system, which, as she said, is solving some chronic problems and is responding to legitimate demands of specific social groups.
Also, she focused on the reforms on labour issues, with separate provisions for undeclared, unpaid and underdeclared work and an extension of employment rights to groups which have not enjoyed them as they should have, as well as on provisions for the expansion of the rights of people with disabilities, which constitute the third axis of the Bill.
"Behind every one of the reforms in the Bill there are real stories of workers who need support," Minister Achtsioglou said. She announced that the Labour Inspectorate will be strengthened by a further 150 people, while under New Democracy, staff had been reduced by 200. She noted that rules existed in current employment law but previous Governments had not applied them.
"Those employers who have property but do not pay wages, after 15 days the employees will be able to claim part of that property".
Referring to the funding of the reforms, she said that a tranche of 7.5€ million had been authorised in order to strengthen a mixed range of checks but also to provide services where citizens can be informed of their rights.
She added that the EFKA [The Unified Social Security Service which is being formed by the merging of all former social insurance funds Ed] is in surplus and will support the effort of the Government.
Minister Achtsioglou noted that if a worker remains unpaid for months, they will be able to bring to the Labour Force Employment Organisation [ΟΑΕΔ Ed] an out-of-court statement against the employer and will receive unemployment pay, while it is expected that the trial date will be set a maximum period of 6 months ahead.
Referring to the financial burden on the OAED, the Minister said that the Government has decided to shift the risk to the Agency. "The OAED protects the employee and not the worker the OAED."
For the mentally ill who get an allowance or pension and who find work, she said they will continue to receive it.
PM Tsipras opens Ionian Highway
Officially inaugurating the Ionian Highway, a brand new road running across northwestern Greece, the PM Tsipras described it as “a strategic project for all Greece and the Epirus region, which upgrades the country’s role in the wider region.” “Projects such as this will help usher in a new era of equitable growth, whose benefits will spread all the way to the weakest members of society. The Ionian Highway which links up to the Egnatia Highway,he said, would help upgrade trade, tourism and transport for all western Greece and Epirus, lifting the region out of its present isolation.
The benefits from the Ionian Highway will be maximized if it is included in a wider plan, which includes the construction of a new port in Igoumenitsa, a connection linking the Ionian Highway with Preveza and Agrinio and its extension to Kakavia on the Greek-Albanian border, PM Tsipras stated.
The Prime Minister underlined that with the Ionian Highway, the airport of Ioannina is being upgraded into a hub airport for tourists. “The country is well on its way out of the economic crisis,” he stressed, adding that Greece is turning a page.
“A project of historic significance and enormous economic, commercial and geopolitical value”
On Wednesday (6th September) Greece and Bulgaria signed a Memorandum of Understanding for the construction of a high-speed railway, a project which aims to attract foreign investment and establish strong links in a region historically known for divisions and antagonism between neighbours.
Bulgaria’s Prime Minister Bouko Borissov met Alexis Tsipras in Kavala, northern Greece, and signed the agreement on a railway line that will connect three ports in Greece (Thessaloniki, Kavala, Alexandroupolis) with three Bulgarian ports (Burgas and Varna on the Black Sea and Ruse on the Danube).
The Bulgarian Government said the project, named “Sea2Sea”, was expected to attract huge investor interest from the Middle East, China, Russia and other major markets.
Speaking at a joint press conference after their meeting, Tsipras said it was a project of historic significance and enormous economic, commercial and geopolitical value.
“We are opening new commercial routes and extending the trans-European transport network linking the Aegean Sea to the Danube and the Black Sea,” he said, noting that the project was a “big step” that allows the Balkan countries to be transformed into an area of economic prosperity.
Bulgaria’s PM Borissov said the region was starting with smaller things, referring to the infrastructure projects at the level of motorways and rail connections that are in progress. “If this plan is implemented, Kavala will be able to develop trade relations with the port of Ruse, and a large inland economy.” Ruse is the largest Bulgarian city on the Danube, with a road and railway bridge to Romania. Bucharest is only 60 km away. “We are looking at our [forthcoming EU Ed]presidency as a Balkan presidency. We have a rare chance to prove that there are reasonable people who will put an end to the contradictions, and from a powder keg, the region will become an area of prosperity”, PM Borissov said. He added: “With Alexis Tsipras we can play an important role in shaping a Balkan policy within the framework of the EU”.
Speaking on television, Olga Gerovasili, the Minister for Administrative Reconstruction, stressed that "just with the digital signature [The Digital Signature is a mathematical system used to prove the authenticity of a digital message or document Ed], the State is saving 200€ million. That is how we will get the rationalization of the public sector and not with redundancies."
On the reform of the Public Administration, she stressed that the Government has adopted a system of evaluation in the Public Sector that has objective and transparent criteria. The evaluation, she said, "must be objective and merit-based and must do away with the system of clientelism".
The reform of the Public Administration, she continued, "comes to improve relationships between the state, society, the citizen, undertaking a series of measures such as reducing bureaucracy, speeding up procedures, using the digital signature, etc."
"We are streamlining the State to make it friendly to the citizen and to business. The National Strategy for Administrative Reform aims to make the public administration a tool for development".
As an example of removing party political influence, she spoke of the upcoming competition in September for the posts of Ministerial General Secretaries.
As regards contracted staff, she reported that, within the framework of the financial obligations and commitments of the country, “appointments must be targeted and involve employees who have for years covered for fixed and permanent needs in the context of supporting the welfare State and the citizen.
Finally she underlined that "we want to rationalise the public sector and not to the increase it, so that it can serve as a tool for development".
Labour Legislation
The Bill on the Protection of Working People was adopted in principle by Parliamentary Committee. The parties of the Government Coalition voted in favour of the Bill, the Communist Party voted "present" [i.e. abstained Ed], while all the other parties reserved their positions for the Plenary meeting of Parliament when the Bill will be introduced for final voting.
Presenting the Articles of the Bill, Labour Minister Effie Achtsioglou spoke about the legislation being a positive sign for the society, "the Ministry of Labour’s first purely protective Bill since the beginning of the crisis until today" and she made specific reference to the three central principles, which are moving in that direction.
She referred to the Social Insurance system, which, as she said, is solving some chronic problems and is responding to legitimate demands of specific social groups.
Also, she focused on the reforms on labour issues, with separate provisions for undeclared, unpaid and underdeclared work and an extension of employment rights to groups which have not enjoyed them as they should have, as well as on provisions for the expansion of the rights of people with disabilities, which constitute the third axis of the Bill.
"Behind every one of the reforms in the Bill there are real stories of workers who need support," Minister Achtsioglou said. She announced that the Labour Inspectorate will be strengthened by a further 150 people, while under New Democracy, staff had been reduced by 200. She noted that rules existed in current employment law but previous Governments had not applied them.
"Those employers who have property but do not pay wages, after 15 days the employees will be able to claim part of that property".
Referring to the funding of the reforms, she said that a tranche of 7.5€ million had been authorised in order to strengthen a mixed range of checks but also to provide services where citizens can be informed of their rights.
She added that the EFKA [The Unified Social Security Service which is being formed by the merging of all former social insurance funds Ed] is in surplus and will support the effort of the Government.
Minister Achtsioglou noted that if a worker remains unpaid for months, they will be able to bring to the Labour Force Employment Organisation [ΟΑΕΔ Ed] an out-of-court statement against the employer and will receive unemployment pay, while it is expected that the trial date will be set a maximum period of 6 months ahead.
Referring to the financial burden on the OAED, the Minister said that the Government has decided to shift the risk to the Agency. "The OAED protects the employee and not the worker the OAED."
For the mentally ill who get an allowance or pension and who find work, she said they will continue to receive it.
PM Tsipras opens Ionian Highway
Officially inaugurating the Ionian Highway, a brand new road running across northwestern Greece, the PM Tsipras described it as “a strategic project for all Greece and the Epirus region, which upgrades the country’s role in the wider region.” “Projects such as this will help usher in a new era of equitable growth, whose benefits will spread all the way to the weakest members of society. The Ionian Highway which links up to the Egnatia Highway,he said, would help upgrade trade, tourism and transport for all western Greece and Epirus, lifting the region out of its present isolation.
The benefits from the Ionian Highway will be maximized if it is included in a wider plan, which includes the construction of a new port in Igoumenitsa, a connection linking the Ionian Highway with Preveza and Agrinio and its extension to Kakavia on the Greek-Albanian border, PM Tsipras stated.
The Prime Minister underlined that with the Ionian Highway, the airport of Ioannina is being upgraded into a hub airport for tourists. “The country is well on its way out of the economic crisis,” he stressed, adding that Greece is turning a page.
“A project of historic significance and enormous economic, commercial and geopolitical value”
On Wednesday (6th September) Greece and Bulgaria signed a Memorandum of Understanding for the construction of a high-speed railway, a project which aims to attract foreign investment and establish strong links in a region historically known for divisions and antagonism between neighbours.
Bulgaria’s Prime Minister Bouko Borissov met Alexis Tsipras in Kavala, northern Greece, and signed the agreement on a railway line that will connect three ports in Greece (Thessaloniki, Kavala, Alexandroupolis) with three Bulgarian ports (Burgas and Varna on the Black Sea and Ruse on the Danube).
The Bulgarian Government said the project, named “Sea2Sea”, was expected to attract huge investor interest from the Middle East, China, Russia and other major markets.
Speaking at a joint press conference after their meeting, Tsipras said it was a project of historic significance and enormous economic, commercial and geopolitical value.
“We are opening new commercial routes and extending the trans-European transport network linking the Aegean Sea to the Danube and the Black Sea,” he said, noting that the project was a “big step” that allows the Balkan countries to be transformed into an area of economic prosperity.
Bulgaria’s PM Borissov said the region was starting with smaller things, referring to the infrastructure projects at the level of motorways and rail connections that are in progress. “If this plan is implemented, Kavala will be able to develop trade relations with the port of Ruse, and a large inland economy.” Ruse is the largest Bulgarian city on the Danube, with a road and railway bridge to Romania. Bucharest is only 60 km away. “We are looking at our [forthcoming EU Ed]presidency as a Balkan presidency. We have a rare chance to prove that there are reasonable people who will put an end to the contradictions, and from a powder keg, the region will become an area of prosperity”, PM Borissov said. He added: “With Alexis Tsipras we can play an important role in shaping a Balkan policy within the framework of the EU”.
"The overriding focus of our strategy is the freeing of public administration from political party influence."
Alexis Tsipras
2.9.2017
"The national strategy for administrative reform is part of the overall plan for post-Memorandum Greece," said the Prime Minister in his speech at the Benaki Museum, in Athens. He added that "the ultimate goal of this plan is a Greece with its national sovereignty fully recovered ".
"The Administrative Reform will lay the foundations for a State that provides a real service to the citizen, a State that will bear no relationship to what we have experienced to date and with what we know today," he stressed.
"The concept of the State as loot and as a tool of clientelist management has continued for decades until the years of the crisis. This perception of the State as loot is shown today by the cunning and supposedly liberal cries of some for the application to the State of the constitutional protection of permanent unchangeability."
At the same time, he added, "in the years of crisis the State from being a "child of the system" became its "stepson", onto which some people tried to off-load their own sins. We saw the culmination of the attempt to incriminate the Public Administration collectively in 2015 when the current leader of New Democracy was the Minister when we learned that reform does not mean meritocracy but redundancies."
There have been positive steps, despite their being piecemeal, such as the establishment of the Supreme Council for Civil Personnel Selection (ΑΣΕΠ), the National School of Public Administration, of KEP and the establishment of Διαύγεια [the Government Information Website Ed].
"The overriding focus of our strategy is the freeing of public administration from political party influence."
"In the coming months Greece will become one of the first countries worldwide in which the process of licencing businesses will be fully digitized [computerised Ed]."
"From mid-2018 we will bring forward the announcement of written competitions through ΑΣΕΠ to attract young professionals to the Public Sector. We are seriously considering putting in place additional incentives for the repatriation of young graduates. By 2020 all transactions with the Public will be made electronically.
"With the reform which we are presenting for the first time with a holistic vision for the Administration and with the valuable contribution of France, we are on the way to laying the foundations for a structural reform of a historic character.
"Perhaps it constitutes a new beginning for the Greek State or, to put it more ambitiously, the beginning of a new Greek State.
"I don't want to say “why didn’t it happen for so many years”, but I will say that we believe in this, we will try and we will make it happen."
"The Administrative Reform will lay the foundations for a State that provides a real service to the citizen, a State that will bear no relationship to what we have experienced to date and with what we know today," he stressed.
"The concept of the State as loot and as a tool of clientelist management has continued for decades until the years of the crisis. This perception of the State as loot is shown today by the cunning and supposedly liberal cries of some for the application to the State of the constitutional protection of permanent unchangeability."
At the same time, he added, "in the years of crisis the State from being a "child of the system" became its "stepson", onto which some people tried to off-load their own sins. We saw the culmination of the attempt to incriminate the Public Administration collectively in 2015 when the current leader of New Democracy was the Minister when we learned that reform does not mean meritocracy but redundancies."
There have been positive steps, despite their being piecemeal, such as the establishment of the Supreme Council for Civil Personnel Selection (ΑΣΕΠ), the National School of Public Administration, of KEP and the establishment of Διαύγεια [the Government Information Website Ed].
"The overriding focus of our strategy is the freeing of public administration from political party influence."
"In the coming months Greece will become one of the first countries worldwide in which the process of licencing businesses will be fully digitized [computerised Ed]."
"From mid-2018 we will bring forward the announcement of written competitions through ΑΣΕΠ to attract young professionals to the Public Sector. We are seriously considering putting in place additional incentives for the repatriation of young graduates. By 2020 all transactions with the Public will be made electronically.
"With the reform which we are presenting for the first time with a holistic vision for the Administration and with the valuable contribution of France, we are on the way to laying the foundations for a structural reform of a historic character.
"Perhaps it constitutes a new beginning for the Greek State or, to put it more ambitiously, the beginning of a new Greek State.
"I don't want to say “why didn’t it happen for so many years”, but I will say that we believe in this, we will try and we will make it happen."
The national strategy for Administrative Reform 2017-2019
The Minister for Administrative Reconstruction, Olga Gerovasili presented "The National Strategy for Administrative Reform 2017-2019".
“Our policy is to combat every instance of clientelist logic and today we are giving answers as to how we see things and what we are doing to reform the present and the future of public administration.
So that the public administration is not an opaque mesh of bureaucratic mechanisms which for years has served the few. But, instead, to be an efficient, friendly, orderly, modern, productive and unbiased public institution, with its gaze exclusively directed to the needs of the many and to the public interest".
At a crucial turning point for the Greek economy, at a time when international rating agencies are certifying our upward trajectory, the administrative reorganisation comes to cure chronic pathologies, participating actively in the effort to achieve the reconstruction of the productive capacity of the country.
Believing deeply that human resources are crucial for the success of any national plan for the Public Administration, we have put in place and are implementing, with open and objective procedures, a set of actions which relate to the internal functioning of the public sector, such as Mobility, Assessment, the Registry of Staff Remuneration, the Selection of Senior Managers, Job Descriptions and Target-setting … We are investing in the promotion of the appropriate employee to the appropriate job.
The new reality in the operation of the State in 2020 will help to improve State-Citizen relations, gradually putting a collective, social stamp on the work of civil servants with an emphasis on efficiency, helpfulness, kindness, fairness and the protection of the dignity of those dealing with the public services.
The reform of the public sector does not pretend to be another spurious reform, nor a reform of a reform. We have all heard about reform many times and we have become addicted to doubt as a reflex when the political leadership proclaims reforms relating to the Public Administration. It is one of the worst residues left to us by the political system that ruled our country in previous years.
The same political system bequeathed to us rigid commitments and a suffocating stewardship, anticipating that we would not cope with the Assessments and that we would be a small left hiccup in modern political life. Anticipating that we would lose our social moorings, spreading propaganda that we are all the same.
As they were shown to be wrong in their planning for a left hiccup - and the era of Memoranda is ending once and for all as a result of our Government’s political handling - so they will be shown to be wrong also about us all being the same.”
The Minister for Administrative Reconstruction, Olga Gerovasili presented "The National Strategy for Administrative Reform 2017-2019".
“Our policy is to combat every instance of clientelist logic and today we are giving answers as to how we see things and what we are doing to reform the present and the future of public administration.
So that the public administration is not an opaque mesh of bureaucratic mechanisms which for years has served the few. But, instead, to be an efficient, friendly, orderly, modern, productive and unbiased public institution, with its gaze exclusively directed to the needs of the many and to the public interest".
At a crucial turning point for the Greek economy, at a time when international rating agencies are certifying our upward trajectory, the administrative reorganisation comes to cure chronic pathologies, participating actively in the effort to achieve the reconstruction of the productive capacity of the country.
Believing deeply that human resources are crucial for the success of any national plan for the Public Administration, we have put in place and are implementing, with open and objective procedures, a set of actions which relate to the internal functioning of the public sector, such as Mobility, Assessment, the Registry of Staff Remuneration, the Selection of Senior Managers, Job Descriptions and Target-setting … We are investing in the promotion of the appropriate employee to the appropriate job.
The new reality in the operation of the State in 2020 will help to improve State-Citizen relations, gradually putting a collective, social stamp on the work of civil servants with an emphasis on efficiency, helpfulness, kindness, fairness and the protection of the dignity of those dealing with the public services.
The reform of the public sector does not pretend to be another spurious reform, nor a reform of a reform. We have all heard about reform many times and we have become addicted to doubt as a reflex when the political leadership proclaims reforms relating to the Public Administration. It is one of the worst residues left to us by the political system that ruled our country in previous years.
The same political system bequeathed to us rigid commitments and a suffocating stewardship, anticipating that we would not cope with the Assessments and that we would be a small left hiccup in modern political life. Anticipating that we would lose our social moorings, spreading propaganda that we are all the same.
As they were shown to be wrong in their planning for a left hiccup - and the era of Memoranda is ending once and for all as a result of our Government’s political handling - so they will be shown to be wrong also about us all being the same.”
Forest Fires on Zakynthos
The recent wildfires on Zakynthos island were the work of arsonists, the Deputy Citizen Protection Minister Nikos Toskas said on Tuesday. Speaking on radio Real FM, he said that the number of fires that broke out simultaneously in different parts of the island indicated that there was an arson plan being carried out. He suggested that the arsonists may have being trying to create space for hotels in protected forest areas.
Specifically, the Deputy Minister said, 22 fires were recorded simultaneously on Zakynthos, the Ionian island, over the weekend, and that there had been 84 fires in total on the island this summer. The 18 fires that were burning on Tuesday were under control, with 200 firefighters remaining on alert.
He noted that most of the fires occurred in the northern part of the island, where, he said, there are plots that can be very profitable if they are built on.
The Deputy Minister revealed that firefighting helicopter pilots had reported seeing people trying to set fires. “In most cases the fires appear to have been the result of arson – this is what everything points to,” he said. However, he added, some of the fires were accidental.
The recent wildfires on Zakynthos island were the work of arsonists, the Deputy Citizen Protection Minister Nikos Toskas said on Tuesday. Speaking on radio Real FM, he said that the number of fires that broke out simultaneously in different parts of the island indicated that there was an arson plan being carried out. He suggested that the arsonists may have being trying to create space for hotels in protected forest areas.
Specifically, the Deputy Minister said, 22 fires were recorded simultaneously on Zakynthos, the Ionian island, over the weekend, and that there had been 84 fires in total on the island this summer. The 18 fires that were burning on Tuesday were under control, with 200 firefighters remaining on alert.
He noted that most of the fires occurred in the northern part of the island, where, he said, there are plots that can be very profitable if they are built on.
The Deputy Minister revealed that firefighting helicopter pilots had reported seeing people trying to set fires. “In most cases the fires appear to have been the result of arson – this is what everything points to,” he said. However, he added, some of the fires were accidental.
Preparing for the 82nd Thessaloniki Trade Fair
In his meeting with the Business Leaders of Thessaloniki, Prime Minister Alexis Tsipras made extensive reference to the positive course of the Greek economy.
He referred to the prospects of the country, especially in Northern Greece, after the completion of the Second Assessment, ahead of his speech at the opening of the 82nd Thessaloniki Trade Fair (TIF).
The PM reported on the positive situation of the Greek economy, the successful return to the Bond Markets, the upgrade of Greece by the Ratings Agencies, the improvement of the indicators of confidence in the Greek economy, as well as the improved macroeconomic indicators, improvements which are expected to be confirmed by the very positive trends of economic growth in the second and third quarter of 2017.
The Prime Minister described the current year as critical, while he also referred to the Greek Government’s objectives for the next period, after leaving the strict Stewardship. He picked out as significant the continuation of reforms in the public administration, in health, in education, in the markets and in services, while he also referred to the Government's efforts to attract capital and support Greek enterprises, in order to stimulate private investment, but also to strengthen public investment in the area of infrastructure.
With regard to the reduction of corporate and personal taxation, that was put forward by the Business Leaders’ representatives, the Prime Minister said that this is included in the countermeasures that the Government has already voted on. He added that the fiscal space, expected on the basis of the medium-term programme forecasts, after 2019, will be important and will be used for a further reduction of the rates of direct and indirect taxes.
He went on to refer to the measures to improve the business climate by opening up markets and services, further simplifying procedures for setting up companies, reducing bureaucracy and the beneficial effects of out-of-court settlements [of debts Ed].
On the key issue of financing business, he said the establishment of a Development Bank was extremely important as are the new tools for the financing of small and medium-sized enterprises.
Especially for Northern Greece and Thessaloniki, he stressed that the Government has changed the way it deals with the city, bringing forward projects that had become a joke, like the Thessaloniki Metro, the completion of the Tempe tunnel and the changes in the Thessaloniki Urban Transport Organization (ΟΑΣΘ). He pointed out that the resolution of chronic problems has been set in train and is being implemented, such as the extension of the runway of the airport, the northern links of the Egnatia Highway and the development of the city’s port.
More Positive Signs
The Greek Finance Ministry announced that on Wednesday the Government raised 1.138€ billion during the latest six-month Treasury Bill sale. The T-bills were sold at a 2.4% interest rate [The interest the Government must pay Ed], down from the 2.5% in the previous similar sale held a few weeks ago, according to the Public Debt Management Agency (PDMA).
Greece runs a monthly treasury bill auction in parallel with the three bailout programs launched between 2010 and 2015, in order to cover its financing needs.
On July 25th, the country made a successful first test return to bond markets in three years.
Greece has been shut out of international bond markets since 2010, and the Greek Government and foreign lenders expect it to fully return to those markets in 2018 when the current bailout programme ends.
Property Taxes
ΕΝΦΙΑ
The total amount of the Property Tax to be levied by the Treasury on a monthly basis from September 2017 to January 2018 is around 630€ million.
Statements showing each taxpayer’s Property Tax liability (ΕΝΦΙΑ) for 2017 have been posted on the Taxisnet website ( https://login.gsis.gr/sso/pages/login.jsp ).
Taxpayers will pay the tax in five instalments, the first at the end of September 2017 and the last by the end of January 2018.
Legalisation: Building Legalisations raise 1.9€ billion
More than a million applications have been submitted to legitimise infractions of zoning and building regulations since 2011, according to data from the Technical Chamber.
Legislation passed in 2011 and 2013 has led to the legalisation of violations, such as the conversion of balconies into rooms and a host of other infractions, concerning slightly more than a million properties.
The total revenue generated from the fees to legalize these constructions and additions currently stands at more than 1.9€ billion.
Under the present law, property owners can submit applications to legalize their buildings or additions made to them until September 23rd 2017.
Most of these legalizations – 274,111 – were in the Attica region and concern a total of 21 million square metres of property. Taking the average size of a home as 80 square meters, the total amount of violations would represent 267,500 homes. The lion’s share of infractions in Attica are in Eastern Attica, with 76,612 illegal constructions. Thessaloniki follows with 66,911 property owners having broken the rules, representing a total area of 6.2 million square metres. The neighboring popular holiday resort area of Halikidiki is also a bastion of zoning violations, with 27,232 recorded, representing a total area of 2.1 million square metres.
Larissa and Corinth are the other two mainland areas where zoning violations are rampant.
With regard to the islands, most infractions were reported on Crete, with 41,418 recorded zoning violations, representing 6 million square metres.
The island’s capital, Iraklion, is where the most – 16,338 – violations occurred, covering almost 3 million square metres.
The island of Evia follows close behind with 23,783 violations, ahead of the region covering Rhodes, Symi, Tilos, Halki and Kastelorizo in the southeastern Aegean.
A BREXIT Note
British pensioners who have retired to other EU countries will continue to have their healthcare paid for by the NHS post-Brexit, after a deal in principle was agreed by negotiators in Brussels.
In one of the few advances made in discussions about EU citizens’ future rights, the Brexit secretary, David Davis, said there had been agreement on reciprocal healthcare for British and EU retirees affected by BREXIT.
The agreement will also allow a British pensioner who has retired in another EU country to travel to other EU countries on holiday and use the existing European Health Insurance Card should they need medical attention.
In his meeting with the Business Leaders of Thessaloniki, Prime Minister Alexis Tsipras made extensive reference to the positive course of the Greek economy.
He referred to the prospects of the country, especially in Northern Greece, after the completion of the Second Assessment, ahead of his speech at the opening of the 82nd Thessaloniki Trade Fair (TIF).
The PM reported on the positive situation of the Greek economy, the successful return to the Bond Markets, the upgrade of Greece by the Ratings Agencies, the improvement of the indicators of confidence in the Greek economy, as well as the improved macroeconomic indicators, improvements which are expected to be confirmed by the very positive trends of economic growth in the second and third quarter of 2017.
The Prime Minister described the current year as critical, while he also referred to the Greek Government’s objectives for the next period, after leaving the strict Stewardship. He picked out as significant the continuation of reforms in the public administration, in health, in education, in the markets and in services, while he also referred to the Government's efforts to attract capital and support Greek enterprises, in order to stimulate private investment, but also to strengthen public investment in the area of infrastructure.
With regard to the reduction of corporate and personal taxation, that was put forward by the Business Leaders’ representatives, the Prime Minister said that this is included in the countermeasures that the Government has already voted on. He added that the fiscal space, expected on the basis of the medium-term programme forecasts, after 2019, will be important and will be used for a further reduction of the rates of direct and indirect taxes.
He went on to refer to the measures to improve the business climate by opening up markets and services, further simplifying procedures for setting up companies, reducing bureaucracy and the beneficial effects of out-of-court settlements [of debts Ed].
On the key issue of financing business, he said the establishment of a Development Bank was extremely important as are the new tools for the financing of small and medium-sized enterprises.
Especially for Northern Greece and Thessaloniki, he stressed that the Government has changed the way it deals with the city, bringing forward projects that had become a joke, like the Thessaloniki Metro, the completion of the Tempe tunnel and the changes in the Thessaloniki Urban Transport Organization (ΟΑΣΘ). He pointed out that the resolution of chronic problems has been set in train and is being implemented, such as the extension of the runway of the airport, the northern links of the Egnatia Highway and the development of the city’s port.
More Positive Signs
The Greek Finance Ministry announced that on Wednesday the Government raised 1.138€ billion during the latest six-month Treasury Bill sale. The T-bills were sold at a 2.4% interest rate [The interest the Government must pay Ed], down from the 2.5% in the previous similar sale held a few weeks ago, according to the Public Debt Management Agency (PDMA).
Greece runs a monthly treasury bill auction in parallel with the three bailout programs launched between 2010 and 2015, in order to cover its financing needs.
On July 25th, the country made a successful first test return to bond markets in three years.
Greece has been shut out of international bond markets since 2010, and the Greek Government and foreign lenders expect it to fully return to those markets in 2018 when the current bailout programme ends.
Property Taxes
ΕΝΦΙΑ
The total amount of the Property Tax to be levied by the Treasury on a monthly basis from September 2017 to January 2018 is around 630€ million.
Statements showing each taxpayer’s Property Tax liability (ΕΝΦΙΑ) for 2017 have been posted on the Taxisnet website ( https://login.gsis.gr/sso/pages/login.jsp ).
Taxpayers will pay the tax in five instalments, the first at the end of September 2017 and the last by the end of January 2018.
Legalisation: Building Legalisations raise 1.9€ billion
More than a million applications have been submitted to legitimise infractions of zoning and building regulations since 2011, according to data from the Technical Chamber.
Legislation passed in 2011 and 2013 has led to the legalisation of violations, such as the conversion of balconies into rooms and a host of other infractions, concerning slightly more than a million properties.
The total revenue generated from the fees to legalize these constructions and additions currently stands at more than 1.9€ billion.
Under the present law, property owners can submit applications to legalize their buildings or additions made to them until September 23rd 2017.
Most of these legalizations – 274,111 – were in the Attica region and concern a total of 21 million square metres of property. Taking the average size of a home as 80 square meters, the total amount of violations would represent 267,500 homes. The lion’s share of infractions in Attica are in Eastern Attica, with 76,612 illegal constructions. Thessaloniki follows with 66,911 property owners having broken the rules, representing a total area of 6.2 million square metres. The neighboring popular holiday resort area of Halikidiki is also a bastion of zoning violations, with 27,232 recorded, representing a total area of 2.1 million square metres.
Larissa and Corinth are the other two mainland areas where zoning violations are rampant.
With regard to the islands, most infractions were reported on Crete, with 41,418 recorded zoning violations, representing 6 million square metres.
The island’s capital, Iraklion, is where the most – 16,338 – violations occurred, covering almost 3 million square metres.
The island of Evia follows close behind with 23,783 violations, ahead of the region covering Rhodes, Symi, Tilos, Halki and Kastelorizo in the southeastern Aegean.
A BREXIT Note
British pensioners who have retired to other EU countries will continue to have their healthcare paid for by the NHS post-Brexit, after a deal in principle was agreed by negotiators in Brussels.
In one of the few advances made in discussions about EU citizens’ future rights, the Brexit secretary, David Davis, said there had been agreement on reciprocal healthcare for British and EU retirees affected by BREXIT.
The agreement will also allow a British pensioner who has retired in another EU country to travel to other EU countries on holiday and use the existing European Health Insurance Card should they need medical attention.
Lessons from the Wildfires:
“The essential point and the primary issue is not the emphasis on formalism and bureaucratic appearances but effectiveness”
26.8.2017
Rena Dourou, the Regional Governor of Attica, issued this statement:
“Over the last forty years we have experienced a particular "normality", which puts our country bottom in the ranking of EU countries in terms of its response to natural disasters. Now there has taken shape a singular, informal calendar on the basis of snowfall, fires and floods that acts as a catalyst to the detriment of local societies, undermining the present and future of citizens, destroying property and damaging the environment. The fact that we lament fewer and fewer fatalities is of course a positive – but constant alertness is a must, to start with by maintaining it and, secondly for the inclusion of the country in the real normality, that of effective interventions aimed at minimizing their negative consequences and preventing the repetition of mistakes. A common goal, for which the Region of Attica is working systematically with actions and proposals, must be the emergence from the vicious circle that citizens and the environment have been condemned to, the so-called "predetermined"- in winter or summer - snowfalls or forest fires.
Because the consequences of forest fires (as well as other natural disasters) can be prevented and limited provided there exists serious planning, preparedness, coordination and effective action. Obvious things, solved decades ago in other countries, but in our homeland they are part of a wider time lag and of the malfunctions of a Public Sector which for many years was used as a tool for the development of patronage of the parties in power and not as a mechanism for the healthy development of the country.
Overlapping responsibilities for taking action and of roles between the public bodies involved, whether it is about Central Government or the Local Authorities (the Regions, the Municipalities), the bureaucratic obstacles which act as a brake on the immediate implementation of decisions of the Administration, the unclear legal framework – these are the characteristics of this ailing State, characteristics which exist, on a small scale, when I it comes to tackling fires. This is the situation we need to correct. Already, this year the circular (2132/17.3.2017) of the General Secretariat for Civil Protection has attempted to clarify the roles and responsibilities of each institution concerned (Central Government, Regional Administrations, Local Authorities, Government Bodies). This is the starting point of a long-term serious and systematic course of action aimed at the effective cooperation of all agencies involved, whether it be Central Government bodies or decentralized institutions of Civil Protection of the Regions and the Municipalities, in connection with the existing institutional framework and with available fire protection resources.
In the Attica Region we are systematically implementing these statutory obligations with regard to prevention, preparedness, response and recovery from the consequences and damage from forest fires.
A key responsibility is the assistance of the Fire Department on the basis of its demands for the allocation of the necessary resources and equipment in the Region. So, in the recent fire in Eastern Attica, the Attica Region assisted the fire-fighting forces, at the request of the Fire Service, with 26 water wagons, 10 heavy earth-moving machines while tracked heavy earthmoving machinery of the army with special platforms transferred them to the frontline of the fires. Already the first decision to cover the related expenditure stands at 850,000€.
A responsibility of the Region is also to propose to the General Secretariat of Civil Protection the declaring of a state of emergency in an area – which the Region of Attica has done twice this summer (in the cases of Kythera and Oropos).
At the same time the level of prevention, the Attica Region has brought forward the establishment and operation, in each Regional Entity, the Coordinating Civil Protection Institutions (ΣΟΠΠ), for the deployment and coordinated action of the necessary resources and equipments for the prevention, preparedness, response and recovery from disasters - in the planning and implementation of projects for the prevention of fires along the road networks of its area of responsibility, in the preventive clearing of vegetation in forests and parks of its area, on the provision of information on civil protection activities for preventing forest fires, etc.
In terms of the damage to businesses and business premises (the responsibility for destroyed houses lies with the Municipalities), the Region of Attica has launched with effect from 14th August the relevant procedures of recording and valuing losses from the recent fire. At the same time it is the Region that submits a related request to the Ministry responsible for the demarcation of the affected areas (with the use of the data sent by the Municipalities).
Is this sufficient?
Despite the fact that Attica is moving both preventively, (e.g. is in process, as requested by the Fire Department, of supplying 35 fire vehicles of various types, following our decision to include the relevant Act, with a 5€ million budget, in the Operational Programme of Attica 2014 – 2020), the response cannot be positive because we must go beyond the formal approach that ignores the substance. The essential point and the primary issue is not the emphasis on formalism and bureaucratic appearances but effectiveness. Effectiveness achieved through the demonstration of the role of the Regions, on the basis of harmonised cooperation with other services involved, in dealing with a natural disaster like fires, which does not forgive incomplete prevention, negligence in decision-making, or lack of implementation.
So for the effective prevention and management of forest fires, the Attica Region submits for public debate these specific proposals/interventions.
For example:
1. The institutional clarification, with the publication of a relevant circular by the General Secretariat for Civil Protection, of the role and responsibilities of each service involved (the Fire Brigade, Civil Protection Volunteer Groups, the Regions, the Municipalities, Forest Authorities,the Police, the Armed Forces) in relation to the decision and implementation of preventive exclusion of traffic and the exclusion of citizens from woodlands, forests and "vulnerable areas".
2. The activation, either with a relevant Presidential Decree or by a normal decision of the Minister of the Interior, of the operation of the Metropolitan Coordinating Institution of Civil Protection, already provided for in article 210 of the Kallikrates Law (N. 3852/2010) the appropriate operating standards and competences of which, given the metropolitan scope of the Attica Region’s operations are pending publication by the Ministry.
Also:
3. The implementation, with special legislation, of the long-standing demand by voluntary organisations of Civil Protection for the elimination or reduction of the road tax for fire-fighting vehicles used in emergency situations, since the assistance of volunteers in tackling fires is a social contribution for the protection of the environment and of the property of citizens.
4. The activation, by a normal decision of the Ministry of the Interior, of the legislated provision (Article 115 of Law 4249/2014), that exists for funding of the Regions during the fire season
5. The activation, by decision of the Ministry responsible, of the provision of Article 118 of Law 4249/2014 on the establishment and functioning of the National School of Civil Protection for the training of Civil Protection volunteers and officers based on European standards,
6. The establishment, with special legislation, of the obligation to support voluntary organisations of civil protection which are included in the a register of the General Secretariat for Civil Protection.
These are some suggestions that might help, not just to solve a "problem", but to lay the groundwork for overcoming a chronic malaise of the Public Service. Because tackling forest fires has a twofold meaning. It presents both a significant challenge to the environment and the very functioning of public administration. It relates to the future of our country. Precisely for these reasons we cannot afford to lose this challenge.”
“Over the last forty years we have experienced a particular "normality", which puts our country bottom in the ranking of EU countries in terms of its response to natural disasters. Now there has taken shape a singular, informal calendar on the basis of snowfall, fires and floods that acts as a catalyst to the detriment of local societies, undermining the present and future of citizens, destroying property and damaging the environment. The fact that we lament fewer and fewer fatalities is of course a positive – but constant alertness is a must, to start with by maintaining it and, secondly for the inclusion of the country in the real normality, that of effective interventions aimed at minimizing their negative consequences and preventing the repetition of mistakes. A common goal, for which the Region of Attica is working systematically with actions and proposals, must be the emergence from the vicious circle that citizens and the environment have been condemned to, the so-called "predetermined"- in winter or summer - snowfalls or forest fires.
Because the consequences of forest fires (as well as other natural disasters) can be prevented and limited provided there exists serious planning, preparedness, coordination and effective action. Obvious things, solved decades ago in other countries, but in our homeland they are part of a wider time lag and of the malfunctions of a Public Sector which for many years was used as a tool for the development of patronage of the parties in power and not as a mechanism for the healthy development of the country.
Overlapping responsibilities for taking action and of roles between the public bodies involved, whether it is about Central Government or the Local Authorities (the Regions, the Municipalities), the bureaucratic obstacles which act as a brake on the immediate implementation of decisions of the Administration, the unclear legal framework – these are the characteristics of this ailing State, characteristics which exist, on a small scale, when I it comes to tackling fires. This is the situation we need to correct. Already, this year the circular (2132/17.3.2017) of the General Secretariat for Civil Protection has attempted to clarify the roles and responsibilities of each institution concerned (Central Government, Regional Administrations, Local Authorities, Government Bodies). This is the starting point of a long-term serious and systematic course of action aimed at the effective cooperation of all agencies involved, whether it be Central Government bodies or decentralized institutions of Civil Protection of the Regions and the Municipalities, in connection with the existing institutional framework and with available fire protection resources.
In the Attica Region we are systematically implementing these statutory obligations with regard to prevention, preparedness, response and recovery from the consequences and damage from forest fires.
A key responsibility is the assistance of the Fire Department on the basis of its demands for the allocation of the necessary resources and equipment in the Region. So, in the recent fire in Eastern Attica, the Attica Region assisted the fire-fighting forces, at the request of the Fire Service, with 26 water wagons, 10 heavy earth-moving machines while tracked heavy earthmoving machinery of the army with special platforms transferred them to the frontline of the fires. Already the first decision to cover the related expenditure stands at 850,000€.
A responsibility of the Region is also to propose to the General Secretariat of Civil Protection the declaring of a state of emergency in an area – which the Region of Attica has done twice this summer (in the cases of Kythera and Oropos).
At the same time the level of prevention, the Attica Region has brought forward the establishment and operation, in each Regional Entity, the Coordinating Civil Protection Institutions (ΣΟΠΠ), for the deployment and coordinated action of the necessary resources and equipments for the prevention, preparedness, response and recovery from disasters - in the planning and implementation of projects for the prevention of fires along the road networks of its area of responsibility, in the preventive clearing of vegetation in forests and parks of its area, on the provision of information on civil protection activities for preventing forest fires, etc.
In terms of the damage to businesses and business premises (the responsibility for destroyed houses lies with the Municipalities), the Region of Attica has launched with effect from 14th August the relevant procedures of recording and valuing losses from the recent fire. At the same time it is the Region that submits a related request to the Ministry responsible for the demarcation of the affected areas (with the use of the data sent by the Municipalities).
Is this sufficient?
Despite the fact that Attica is moving both preventively, (e.g. is in process, as requested by the Fire Department, of supplying 35 fire vehicles of various types, following our decision to include the relevant Act, with a 5€ million budget, in the Operational Programme of Attica 2014 – 2020), the response cannot be positive because we must go beyond the formal approach that ignores the substance. The essential point and the primary issue is not the emphasis on formalism and bureaucratic appearances but effectiveness. Effectiveness achieved through the demonstration of the role of the Regions, on the basis of harmonised cooperation with other services involved, in dealing with a natural disaster like fires, which does not forgive incomplete prevention, negligence in decision-making, or lack of implementation.
So for the effective prevention and management of forest fires, the Attica Region submits for public debate these specific proposals/interventions.
For example:
1. The institutional clarification, with the publication of a relevant circular by the General Secretariat for Civil Protection, of the role and responsibilities of each service involved (the Fire Brigade, Civil Protection Volunteer Groups, the Regions, the Municipalities, Forest Authorities,the Police, the Armed Forces) in relation to the decision and implementation of preventive exclusion of traffic and the exclusion of citizens from woodlands, forests and "vulnerable areas".
2. The activation, either with a relevant Presidential Decree or by a normal decision of the Minister of the Interior, of the operation of the Metropolitan Coordinating Institution of Civil Protection, already provided for in article 210 of the Kallikrates Law (N. 3852/2010) the appropriate operating standards and competences of which, given the metropolitan scope of the Attica Region’s operations are pending publication by the Ministry.
Also:
3. The implementation, with special legislation, of the long-standing demand by voluntary organisations of Civil Protection for the elimination or reduction of the road tax for fire-fighting vehicles used in emergency situations, since the assistance of volunteers in tackling fires is a social contribution for the protection of the environment and of the property of citizens.
4. The activation, by a normal decision of the Ministry of the Interior, of the legislated provision (Article 115 of Law 4249/2014), that exists for funding of the Regions during the fire season
5. The activation, by decision of the Ministry responsible, of the provision of Article 118 of Law 4249/2014 on the establishment and functioning of the National School of Civil Protection for the training of Civil Protection volunteers and officers based on European standards,
6. The establishment, with special legislation, of the obligation to support voluntary organisations of civil protection which are included in the a register of the General Secretariat for Civil Protection.
These are some suggestions that might help, not just to solve a "problem", but to lay the groundwork for overcoming a chronic malaise of the Public Service. Because tackling forest fires has a twofold meaning. It presents both a significant challenge to the environment and the very functioning of public administration. It relates to the future of our country. Precisely for these reasons we cannot afford to lose this challenge.”
Fitch Ratings – “Outlook for the Greek economy positive”
Credit Rating Agency, Fitch Ratings - a company that assigns credit ratings on the basis of a debtor's ability to make timely interest payments to repay debt and the likelihood of their default, upgraded Greece’s credit rating from CCC to B- on Friday [18.8.2017].
Greece’s Third Bailout Programme Assessment is due in the autumn and Fitch Ratings said that the outlook for the Greek economy was positive and that it expects talks with the country’s international creditors to be concluded “without creating instability.”
According to Fitch, the Eurogroup is expected to grant Greece substantial debt relief next year. That would boost market confidence and help Greece finance itself directly by issuing bonds after its current bailout programme ends in August 2018.
Furthermore, Fitch said Greece’s political situation had become more stable and that there was “limited” risk that the government would not implement the necessary austerity reforms.
Fitch predicts that Greek debt sustainability would improve as the country is complying to the European Stability Mechanism rules. Furthermore, the ESM will take over the more expensive loans from the IMF. It also considers positive the “development clause” that links Greek economic growth with debt relief measures.
Fitch noted that Greece’s public finances are improving, with a Primary Surplus of 3.9% of GDP in 2016 versus an ESM programme target of 0.5%. Fitch is projecting that the Greek Government will have an average Primary Surplus of 2.8% of GDP from 2017 to 2019. Other positives were also cited. These included pent-up investment demand and a declining unemployment rate. A continued clearance of government arrears are also said to be setting the stage to support domestic demand. Externally, growth recovery in the Euro zone is expected to support Greece’s export performance.
The yield [ie the interest Greece must pay Ed] on Greek Government bonds fell to 3.25%, close to its lowest level since 2009, following the announcement.
The Finance Ministry issued a statement: "The Government is continuing to work at a steady pace and with the aim of achieving equitable growth, so that the world of work, which bore the brunt of the crisis, shares in the benefits of development."
Dealing with Tax Evasion
Managers and staff at a taverna in the Cretan port of Iraklion on Tuesday threatened and heckled tax inspectors from the Independent Authority for Public Revenue (IAPR) who visited the premises to conduct an on-the-spot check. The inspectors reported the incident to the local police who escorted them on a second visit to the premises which resulted in the imposition of a fine for failing to issue receipts.
The restaurant will remain closed until the penalty is paid.
The incident came just days after IAPR chief Giorgos Pitsilis announced that laws aimed at protecting Greek tax inspectors will be tightened following a spate of cases involving business owners threatening officials.
Credit Rating Agency, Fitch Ratings - a company that assigns credit ratings on the basis of a debtor's ability to make timely interest payments to repay debt and the likelihood of their default, upgraded Greece’s credit rating from CCC to B- on Friday [18.8.2017].
Greece’s Third Bailout Programme Assessment is due in the autumn and Fitch Ratings said that the outlook for the Greek economy was positive and that it expects talks with the country’s international creditors to be concluded “without creating instability.”
According to Fitch, the Eurogroup is expected to grant Greece substantial debt relief next year. That would boost market confidence and help Greece finance itself directly by issuing bonds after its current bailout programme ends in August 2018.
Furthermore, Fitch said Greece’s political situation had become more stable and that there was “limited” risk that the government would not implement the necessary austerity reforms.
Fitch predicts that Greek debt sustainability would improve as the country is complying to the European Stability Mechanism rules. Furthermore, the ESM will take over the more expensive loans from the IMF. It also considers positive the “development clause” that links Greek economic growth with debt relief measures.
Fitch noted that Greece’s public finances are improving, with a Primary Surplus of 3.9% of GDP in 2016 versus an ESM programme target of 0.5%. Fitch is projecting that the Greek Government will have an average Primary Surplus of 2.8% of GDP from 2017 to 2019. Other positives were also cited. These included pent-up investment demand and a declining unemployment rate. A continued clearance of government arrears are also said to be setting the stage to support domestic demand. Externally, growth recovery in the Euro zone is expected to support Greece’s export performance.
The yield [ie the interest Greece must pay Ed] on Greek Government bonds fell to 3.25%, close to its lowest level since 2009, following the announcement.
The Finance Ministry issued a statement: "The Government is continuing to work at a steady pace and with the aim of achieving equitable growth, so that the world of work, which bore the brunt of the crisis, shares in the benefits of development."
Dealing with Tax Evasion
Managers and staff at a taverna in the Cretan port of Iraklion on Tuesday threatened and heckled tax inspectors from the Independent Authority for Public Revenue (IAPR) who visited the premises to conduct an on-the-spot check. The inspectors reported the incident to the local police who escorted them on a second visit to the premises which resulted in the imposition of a fine for failing to issue receipts.
The restaurant will remain closed until the penalty is paid.
The incident came just days after IAPR chief Giorgos Pitsilis announced that laws aimed at protecting Greek tax inspectors will be tightened following a spate of cases involving business owners threatening officials.
Henry Dunant Hospital Scandal
Anti-corruption investigator M.Tsironis, who ordered Andreas Martinis, the former Chairman of the "Henry Dunant" Hospital to be detained in prison, reversed his previous decision and instead imposed restrictions forbidding him to leave the country and his compulsory appearance twice a month at the Police Department of the region of his residence.
Mr. Martinis was released after 15 months in prison because he is suffering from serious health problems. In a request for bail presented on 31st July, the former President of the Henry Dunant referred again to his serious health problems which were confirmed by documents from the Disability Verification Centre (ΚΕΠΑ), according to which he has more than a 75% disability.
Andreas Martinis has twice been remanded in custody, once standing accused of bribery in a case involving “Hospitalia International” and then again for malpractice in providing hospitalization services at the “Henry Dunant” to prominent politicians, Media figures and others either with "unprofitable" discounts on the cost or completely free, practices which according to the indictment cost the Foundation 1.75€ million.
Mr. Martinis maintains that the millions of euros which he had allegedly taken in bribes from the company “Hospitalia International” is legal money and came from his wife's assets.
Anti-corruption investigator M.Tsironis, who ordered Andreas Martinis, the former Chairman of the "Henry Dunant" Hospital to be detained in prison, reversed his previous decision and instead imposed restrictions forbidding him to leave the country and his compulsory appearance twice a month at the Police Department of the region of his residence.
Mr. Martinis was released after 15 months in prison because he is suffering from serious health problems. In a request for bail presented on 31st July, the former President of the Henry Dunant referred again to his serious health problems which were confirmed by documents from the Disability Verification Centre (ΚΕΠΑ), according to which he has more than a 75% disability.
Andreas Martinis has twice been remanded in custody, once standing accused of bribery in a case involving “Hospitalia International” and then again for malpractice in providing hospitalization services at the “Henry Dunant” to prominent politicians, Media figures and others either with "unprofitable" discounts on the cost or completely free, practices which according to the indictment cost the Foundation 1.75€ million.
Mr. Martinis maintains that the millions of euros which he had allegedly taken in bribes from the company “Hospitalia International” is legal money and came from his wife's assets.
Prime Minister Tsipras expresses gratitude to firefighters
on behalf of Greek society
19.08.2017
Prime Minister Alexis Tsipras visited the areas in eastern Attica affected by the major fires.
He flew over the burnt areas in a military helicopter. He then visited the fire ravaged area where he spoke with Fire Department representatives as well as EMAK forces – the Special Rescue Unit.
By radio, the Prime Minister addressed all the firefighters who are on stand by across the wider region in case other fires occur due to the wind. He expressed thanks and gratitude on behalf of Greek society as a whole.
Afterwards, PM Tsipras convened a meeting at the Maximos Mansion where support, in the form of compensation and tax relief, was decided for the victims. Flood protection works and initiatives for the restoration of the burned forest areas were also decided.
The meeting, chaired by the Prime Minister, was attended by the Ministers of Interior, Digital Policy, Infrastructure and Transport, Panos Skourletis, Nikos Pappas, Christos Spirtzis, the Deputy Ministers for the Protection of the Citizen and the Environment, Nikos Toskas and Socrates Famelos respectively, as well as the Ministers of State Alekos Flambouraris and Dimitris Tzanakopoulos. Rena Dourou, Attica Regional Governor, was also present.
Deputy Minister of Environment and Energy Socrates Fammelos made a statement to morning radio in which he stressed that the forest maps are not affected by the fires, the burned areas are declared readily re-developable and their potential use is not changed. The goal - he added - is to prevent all causes of the fires.
“All findings of the Fire Brigade will be evaluated to give a full picture of the causes of the fires. Fires are not only a natural phenomenon, but to a large extent they are due to people and we must take into account both of these points. We are alert to abuses of forested areas”, the Deputy Minister said.
He flew over the burnt areas in a military helicopter. He then visited the fire ravaged area where he spoke with Fire Department representatives as well as EMAK forces – the Special Rescue Unit.
By radio, the Prime Minister addressed all the firefighters who are on stand by across the wider region in case other fires occur due to the wind. He expressed thanks and gratitude on behalf of Greek society as a whole.
Afterwards, PM Tsipras convened a meeting at the Maximos Mansion where support, in the form of compensation and tax relief, was decided for the victims. Flood protection works and initiatives for the restoration of the burned forest areas were also decided.
The meeting, chaired by the Prime Minister, was attended by the Ministers of Interior, Digital Policy, Infrastructure and Transport, Panos Skourletis, Nikos Pappas, Christos Spirtzis, the Deputy Ministers for the Protection of the Citizen and the Environment, Nikos Toskas and Socrates Famelos respectively, as well as the Ministers of State Alekos Flambouraris and Dimitris Tzanakopoulos. Rena Dourou, Attica Regional Governor, was also present.
Deputy Minister of Environment and Energy Socrates Fammelos made a statement to morning radio in which he stressed that the forest maps are not affected by the fires, the burned areas are declared readily re-developable and their potential use is not changed. The goal - he added - is to prevent all causes of the fires.
“All findings of the Fire Brigade will be evaluated to give a full picture of the causes of the fires. Fires are not only a natural phenomenon, but to a large extent they are due to people and we must take into account both of these points. We are alert to abuses of forested areas”, the Deputy Minister said.
The Government returns to work next week with preparations for two key events at the top of its agenda: a visit by French President Emmanuel Macron scheduled for September 7th and 8th and Prime Minister Alexis Tsipras’s speech at the Thessaloniki International Fair (TIF) a few days after that.
For the first time in more than two years, the focus of those meetings will not be economic reforms being demanded by creditors but will be an attempt to shape a new narrative of opening the country up to investment.
A scheduled visit by Macron to Athens in the first week of September, which was confirmed by his office on Thursday, is expected to bolster that narrative as the French President and his administration have supported Greek calls for debt relief and the easing of austerity policies championed by the German Government.
According to sources at the Elysee Palace quoted by Reuters, Macron is aiming to build momentum behind a drive to deepen European integration. His aides said the French leader has a “very European” agenda starting next week with scheduled trips to Austria, Romania and Bulgaria before plans to host the leaders of Germany, Spain and Italy the week after.
On the weekend of September 9th and 10th, PM Tsipras will address the country’s political and business leaders elite at the Thessaloniki International Fair (TIF).
Sources close to the PM have indicated that he will announce investment plans, either during Macron’s visit or in his Thessaloniki speech. It is likely that Tsipras will be in a position to unveil concrete details about the interest of French companies in the Thessaloniki Port Authority by that time.
Meanwhile, the next series of regional conferences are being planned which aim to assess the economic priorities of different regions as part of a broader goal to boost growth. The first two events were held in recent weeks in Kozani, northern Greece, and the central town of Lamia. Next on the agenda will be Crete, followed by Thrace and Thessaly.
Debts to the Greek State pursued
In an effort to catch up with some 3.8 million taxpayers who owe an estimated total of 95€ billion in overdue debts to the Greek state, the Independent Authority for Public Revenue is intensifying inspections on all those whose arrears exceed 500€, accessing their bank accounts and Land Registry details.
To collect much-needed revenue, the Finance Ministry is planning a new crackdown on debtors – both individuals and companies. The Ministry’s will focus its efforts first on those who clearly have the money to pay their debts but are choosing not to, before moving on to those who are in financial difficulties.
The Ministry is sending out notices as soon as a debt becomes overdue. The scheme aims to link the Ministry’s public revenue service to the Land Register to ensure that inspectors have an overview of the properties owned by debtors. In the event that there are no available deposits in bank accounts, tax authorities will have the option of seizing debtors’ properties.
“For the first time, we will have a full picture of the properties of taxpayers which could potentially lead to the imposition of taxes for those who have forgotten to declare them on the tax office’s E9 form,” the revenue authority said in a statement.
Authorities will also have access to insurance company data.
In the second phase of the scheme, Greek authorities will seek to exchange information with their counterparts in other countries about debtors’ foreign bank accounts.
For the first time in more than two years, the focus of those meetings will not be economic reforms being demanded by creditors but will be an attempt to shape a new narrative of opening the country up to investment.
A scheduled visit by Macron to Athens in the first week of September, which was confirmed by his office on Thursday, is expected to bolster that narrative as the French President and his administration have supported Greek calls for debt relief and the easing of austerity policies championed by the German Government.
According to sources at the Elysee Palace quoted by Reuters, Macron is aiming to build momentum behind a drive to deepen European integration. His aides said the French leader has a “very European” agenda starting next week with scheduled trips to Austria, Romania and Bulgaria before plans to host the leaders of Germany, Spain and Italy the week after.
On the weekend of September 9th and 10th, PM Tsipras will address the country’s political and business leaders elite at the Thessaloniki International Fair (TIF).
Sources close to the PM have indicated that he will announce investment plans, either during Macron’s visit or in his Thessaloniki speech. It is likely that Tsipras will be in a position to unveil concrete details about the interest of French companies in the Thessaloniki Port Authority by that time.
Meanwhile, the next series of regional conferences are being planned which aim to assess the economic priorities of different regions as part of a broader goal to boost growth. The first two events were held in recent weeks in Kozani, northern Greece, and the central town of Lamia. Next on the agenda will be Crete, followed by Thrace and Thessaly.
Debts to the Greek State pursued
In an effort to catch up with some 3.8 million taxpayers who owe an estimated total of 95€ billion in overdue debts to the Greek state, the Independent Authority for Public Revenue is intensifying inspections on all those whose arrears exceed 500€, accessing their bank accounts and Land Registry details.
To collect much-needed revenue, the Finance Ministry is planning a new crackdown on debtors – both individuals and companies. The Ministry’s will focus its efforts first on those who clearly have the money to pay their debts but are choosing not to, before moving on to those who are in financial difficulties.
The Ministry is sending out notices as soon as a debt becomes overdue. The scheme aims to link the Ministry’s public revenue service to the Land Register to ensure that inspectors have an overview of the properties owned by debtors. In the event that there are no available deposits in bank accounts, tax authorities will have the option of seizing debtors’ properties.
“For the first time, we will have a full picture of the properties of taxpayers which could potentially lead to the imposition of taxes for those who have forgotten to declare them on the tax office’s E9 form,” the revenue authority said in a statement.
Authorities will also have access to insurance company data.
In the second phase of the scheme, Greek authorities will seek to exchange information with their counterparts in other countries about debtors’ foreign bank accounts.
Action on Plastic Bags
From January 1st 2018, 3 cents will be charged for lightweight plastic bags such as those currently given away at supermarkets and other stores. The charge will rise to 7 cents from January 1st 2019.
The aim of the measure is to drastically reduce the number of plastic bags in Greece. At the moment each person in Greece uses an average of nearly 400 plastic bags per year. Authorities want to reduce this number to 90 by 2020.
The special charge that will apply from next year will be collected by the Independent Authority for Public Revenue (AADE) and the funds will then be transferred to the Hellenic Recycling Agency (EOAN). If there are problems meeting the targets that have been set, the sale of some types of bags may be banned completely.
The measure, agreed by the Finance Ministry and AADE, relates to polythene bags whose thickness is no more than 50 microns. Businesses will be allowed to charge customers for thicker carrier bags, measuring between 50 and 70 microns. Retailers will be allowed to provide customers with free reusable bags as long as this is part of a scheme to collect lightweight plastic bags so they can be recycled.
The decision taken by authorities also bans the use of oxo-degradable bags as these are deemed to contribute to pollution when they break up into smaller particles. Biodegradable bags can continue to be supplied to customers free of charge.
Kiosks and other outdoor businesses, such as produce sellers at open-air markets, will be able to continue to provide their customers with lightweight plastic bags free of charge after January 1st next year. However, the carrier bags that they provide will have to have a serial number and a sign that displays the place and time of production, as well as the producer’s ID number from the national registry.
If businesses are found to be ignoring the new regulation, they face fines of between 200€ and 5,000€. Producers of plastic bags can be fined between 1,000€ and 10,000€ if they do not comply.
The funds raised by the environmental charge, as well as any fines collected, will be used by EOAN to provide incentives for the wider use of reusable bags and to run awareness programmes in association with the Municipalities.
From January 1st 2018, 3 cents will be charged for lightweight plastic bags such as those currently given away at supermarkets and other stores. The charge will rise to 7 cents from January 1st 2019.
The aim of the measure is to drastically reduce the number of plastic bags in Greece. At the moment each person in Greece uses an average of nearly 400 plastic bags per year. Authorities want to reduce this number to 90 by 2020.
The special charge that will apply from next year will be collected by the Independent Authority for Public Revenue (AADE) and the funds will then be transferred to the Hellenic Recycling Agency (EOAN). If there are problems meeting the targets that have been set, the sale of some types of bags may be banned completely.
The measure, agreed by the Finance Ministry and AADE, relates to polythene bags whose thickness is no more than 50 microns. Businesses will be allowed to charge customers for thicker carrier bags, measuring between 50 and 70 microns. Retailers will be allowed to provide customers with free reusable bags as long as this is part of a scheme to collect lightweight plastic bags so they can be recycled.
The decision taken by authorities also bans the use of oxo-degradable bags as these are deemed to contribute to pollution when they break up into smaller particles. Biodegradable bags can continue to be supplied to customers free of charge.
Kiosks and other outdoor businesses, such as produce sellers at open-air markets, will be able to continue to provide their customers with lightweight plastic bags free of charge after January 1st next year. However, the carrier bags that they provide will have to have a serial number and a sign that displays the place and time of production, as well as the producer’s ID number from the national registry.
If businesses are found to be ignoring the new regulation, they face fines of between 200€ and 5,000€. Producers of plastic bags can be fined between 1,000€ and 10,000€ if they do not comply.
The funds raised by the environmental charge, as well as any fines collected, will be used by EOAN to provide incentives for the wider use of reusable bags and to run awareness programmes in association with the Municipalities.
"The Organisation and Functioning of Higher Education, Arrangements for Research"
12.8.2017
Following the successful passing of the Government’s Higher Education Bill by Parliament, Minister of Education, Research & Religious Affairs, Kostas Gavroglou gave this interview last week.
"When all is said and done, is the Left opposed to excellence? On the occasion of the decision for the standard bearer [in parades on National Days Ed] to be identified in Primary Schools by lottery, from the first moment, New Democracy spoke about "the leadership of the Ministry of Education being faithful to the dogma of levelling downwards"; the River party talked about an ideological allergy to any form of recognition and excellence etc.
These are the words of those who really fear excellence and so they trivialize it. How many times we have called on them to take a position publicly about a phenomenon that every Greek family knows: are there or are not parents who oppressively pressurise teachers to give their children grades which they do not qualify for? A few parents, but enough to create many problems for teachers. The result is to have a large number of "Ariston" [“Excellent” Ed] and today there is a lottery to distinguish between them. Is this excellence? Why don't the Opposition denounce these phenomena? Why don’t they protect teachers? Why may a child with a disability not be able to become a standard-bearer? And why should the responsibility not be shared and in that way respect for the flag shared by all the children of the class, tomorrow's citizens with the same rights and the same obligations? The Left is primarily in favour of social justice and equal opportunities for all, especially when talking about a social good like education. A sense of fair play must be cultivated but in terms of a moral code of values rather than in terms of market forces. Our school system is not Darwinian. And it does not have to be."
Our aim must be to discover the different interests and skills of each student and in this framework to strive for excellence.
Education aims to cultivate learning in all citizens. This is our basic starting difference with the neoliberalism of today’s New Democracy of Mr. Mitsotakis.
Excellence for us is for all children to be able to get an education at school, whichever one suits them, and above all, for them to be able to get the experience of the joy of knowledge."
What is the most important change in relation to the existing law for the universities?
"The change in philosophy. It is the first law since the 1974 law that goes into not just administrative arrangements, but establishes new institutions and sets up procedures that ensure a genuine accessibility of Higher Education. The creation of Regional Academic Councils with the participation in them of representatives of the Universities, Institutions of Technical Education (ΤΕΙs) and Research Centres, the establishment in each Higher Educational Institution of a Training Centre and a Centre for Life-Long Learning, the possibility of establishing biennial structures for providing accreditation for professional European certificate qualifications and the route-map of procedures for sorting out the professional rights of Higher Education graduates are some of the innovations in the law to ensure the further strengthening of relationships between Higher Education and the society. The image of deregulation brought by the previous law has led the Universities to the brink of dissolution. It had to change. And this we have done by legislating academic rules.
There are many important changes relating to the Higher Education and therefore society. I don't want to single out any single one of these important changes, since together all constitute a single whole with which our policy is marked. We are establishing academic rules restoring once more the significance of the public University and barring the way for those who off their own bat use the institution of the University for their own benefit. The law gives for the first time the ability to register for Postgraduate Programmes without the economically disadvantaged students paying tuition fees. At the same time it obliges those graduate programmes needing additional staff to first approach young scientists. It satisfies a decades’ old demand by Polytechnics for the academic upgrading of their five-year degrees and it creates the conditions for the definitive arrangement of the professional rights of Engineering graduates of Higher Education. It provides university departments with the possibility of setting up undergraduate foreign language studies in collaboration with the International University, where they meet certain academic criteria. It restores the democratic achievement of the University asylum for ideas and the student representation on governing bodies, the establishment of the Chancellor’s Council and the participation of all sections in the University Senate. It introduces for the first time the Regional Academic Councils in which the representatives of the Universities, the Institutions of Technical Education (ΤΕΙs) and the Research Centres will participate together in every region of the country.
It is the first law that launches the gradual creation of a Single Sector of Higher Education and Research. It establishes, in every University and Institute of Technical Education (TEI), Training and Lifelong Learning Centres. Lifelong learning is for the first time normalized under the scientific supervision of Higher Education Institutions. It sets down the election of Chancellors and Vice-Chancellors on separate ballots, ensuring the widest representatiion on the University body.
New Democracy has said a lot - and inexcusably so in certain cases - during the whole time the public debate on the Bill was going on. And unfortunately they also said it in Parliament. No one understood what New Democracy wanted. Don’t they want to change anything in the Postgraduate Studies Programme? Don’t they want to change anything in the way it is administered? Don’t they want the new institutions that we are establishing to ensure outward orientation, institutions like the Regional Academic Councils and the biennial structures that will provide professional accreditation? Don’t they want the National Council for Education and Human Resources? Do they want everyone regardless of their financial situation to pay tuition fees? Do they want the tuition fees on Postgraduate Programmes at a public University to be determined on the basis of demand rather than on cost as we are proposing? And New Democracy accuses us of being backward-looking? Have they understood exactly what they are defending?
Let's be very clear and let New Democracy understand. We will do our utmost to upgrade the public universities. And we will demonstrate every kinds of resistance to their gradual privatisation.
Declare a champion of consensus in the area of Education.
It is difficult but we will strive for a consensus. I have said many times and on each occasion that consensus does not mean complete unanimity. But on all those educational issues on which we can agree, let us agree and take a step forward. Unfortunately, I see that in this political bloc of New Democracy, the Democratic Coalition [PASOK, the Democratic Left and the Movement of Democratic Socialists (KIDISO) ] and the River, an extreme nationalist-populist and neoliberal discourse is dominating.
With such extreme cries that we are hearing, unfortunately consensus cannot be achieved. Of course, because these parties are not in a position to enter into all-out conflict with academia, apart from the bullies that would repeal the law etc, they voted for a remarkably large number of the Articles!
You come from academia. What is your view of the Greek universities and the level of education that they provide?
My personal opinion coincides fully with what the reality tells us: the Greek students who complete Greek University are highly sought after not only by all of the major universities of the world but also in the global labour market. This says it all. Furthermore, as you know the Greek universities hold high positions in global institutional assessment lists. It is very high in relation to their success in securing research programmes. And because we're in the seventh year of economic crisis, let's point out that this was not due to the assistance provided by the State during these years to academics and researchers. It is the feat of the vast majority of my fellow teachers, of the young researchers and all those who silently decided that the responsibility was theirs for the Universities and our Research Centres not to buckle. The State owes them a generous thank you. We owe it to them because it is very difficult in a bankrupt country to manage, with less money, to maintain a high level of university education. However, this recognition of the decisive role of professors and researchers, goes hand in hand with with the public commitment that we will do everything to establish an everyday life that is governed by academic rules. We undertook this with the law that was passed. We have also strengthened the Universities with additional funding.
What is the next step in the changes that you want to bring to education?
We are committed to change in the High School and the system of access to Higher Education. The intention of the Ministry of Education is for the system that is totally anti-education to soon become a thing of the past. A system of access to Further Education will be brought in based on a rigorous National Baccalaureate. The current system of Panhellenic Examinations, even if it is fair, has run its course and is one of the biggest thorns that undermines the educational and pedagogic functioning of the Lyceum as an autonomous Secondary School level of education. That is why it is imperative for the Examinations to be removed to restore the educational autonomy of the Lyceum. Everyone agrees that today we do not have a High School. Don't we want a High School? I don't think anyone can support the proposition of us being the only European country without a High School. The serious debate is exactly this and already the Educational Policy Institute has submitted its proposals, which the Ministry will process and will arrive at final decisions. Students are not going to be caught unawares. However it will be a system with pedagogical characteristics as sovereign and, certainly, a more humane one and more friendly to young people than the current system can be categorised.
On the issues of the Church ... regarding the utilization of its assets, is there any progress?
We have created together with the Deputy Minister of Development, Mr. Alexis Haritsis, a joint committee with the Church to record the property of the Church, and we are starting from the Metropolises that have already completed this project. Immediately after that we will see what the problems are that exist as to the status of experiences of each property and we will embark on a process to unravel the cases’ legal tangle. And then we proceed. Already, though, the first two steps are very time consuming but also very important.
Minister Gavroglou studied Physics at the Universities of Lancaster, Cambridge and London
where he received his doctorate . He has taught Physics at the National Technical University of Athens , the Universities of Patras , Cambridge, Harvard , MIT , Boston and the Polytechnic of Constantinople. He was Emeritus Professor of History of Science in the Department of Methodology, History and Theory of Science (MITE) of the National and Kapodistrian University of Athens.
"When all is said and done, is the Left opposed to excellence? On the occasion of the decision for the standard bearer [in parades on National Days Ed] to be identified in Primary Schools by lottery, from the first moment, New Democracy spoke about "the leadership of the Ministry of Education being faithful to the dogma of levelling downwards"; the River party talked about an ideological allergy to any form of recognition and excellence etc.
These are the words of those who really fear excellence and so they trivialize it. How many times we have called on them to take a position publicly about a phenomenon that every Greek family knows: are there or are not parents who oppressively pressurise teachers to give their children grades which they do not qualify for? A few parents, but enough to create many problems for teachers. The result is to have a large number of "Ariston" [“Excellent” Ed] and today there is a lottery to distinguish between them. Is this excellence? Why don't the Opposition denounce these phenomena? Why don’t they protect teachers? Why may a child with a disability not be able to become a standard-bearer? And why should the responsibility not be shared and in that way respect for the flag shared by all the children of the class, tomorrow's citizens with the same rights and the same obligations? The Left is primarily in favour of social justice and equal opportunities for all, especially when talking about a social good like education. A sense of fair play must be cultivated but in terms of a moral code of values rather than in terms of market forces. Our school system is not Darwinian. And it does not have to be."
Our aim must be to discover the different interests and skills of each student and in this framework to strive for excellence.
Education aims to cultivate learning in all citizens. This is our basic starting difference with the neoliberalism of today’s New Democracy of Mr. Mitsotakis.
Excellence for us is for all children to be able to get an education at school, whichever one suits them, and above all, for them to be able to get the experience of the joy of knowledge."
What is the most important change in relation to the existing law for the universities?
"The change in philosophy. It is the first law since the 1974 law that goes into not just administrative arrangements, but establishes new institutions and sets up procedures that ensure a genuine accessibility of Higher Education. The creation of Regional Academic Councils with the participation in them of representatives of the Universities, Institutions of Technical Education (ΤΕΙs) and Research Centres, the establishment in each Higher Educational Institution of a Training Centre and a Centre for Life-Long Learning, the possibility of establishing biennial structures for providing accreditation for professional European certificate qualifications and the route-map of procedures for sorting out the professional rights of Higher Education graduates are some of the innovations in the law to ensure the further strengthening of relationships between Higher Education and the society. The image of deregulation brought by the previous law has led the Universities to the brink of dissolution. It had to change. And this we have done by legislating academic rules.
There are many important changes relating to the Higher Education and therefore society. I don't want to single out any single one of these important changes, since together all constitute a single whole with which our policy is marked. We are establishing academic rules restoring once more the significance of the public University and barring the way for those who off their own bat use the institution of the University for their own benefit. The law gives for the first time the ability to register for Postgraduate Programmes without the economically disadvantaged students paying tuition fees. At the same time it obliges those graduate programmes needing additional staff to first approach young scientists. It satisfies a decades’ old demand by Polytechnics for the academic upgrading of their five-year degrees and it creates the conditions for the definitive arrangement of the professional rights of Engineering graduates of Higher Education. It provides university departments with the possibility of setting up undergraduate foreign language studies in collaboration with the International University, where they meet certain academic criteria. It restores the democratic achievement of the University asylum for ideas and the student representation on governing bodies, the establishment of the Chancellor’s Council and the participation of all sections in the University Senate. It introduces for the first time the Regional Academic Councils in which the representatives of the Universities, the Institutions of Technical Education (ΤΕΙs) and the Research Centres will participate together in every region of the country.
It is the first law that launches the gradual creation of a Single Sector of Higher Education and Research. It establishes, in every University and Institute of Technical Education (TEI), Training and Lifelong Learning Centres. Lifelong learning is for the first time normalized under the scientific supervision of Higher Education Institutions. It sets down the election of Chancellors and Vice-Chancellors on separate ballots, ensuring the widest representatiion on the University body.
New Democracy has said a lot - and inexcusably so in certain cases - during the whole time the public debate on the Bill was going on. And unfortunately they also said it in Parliament. No one understood what New Democracy wanted. Don’t they want to change anything in the Postgraduate Studies Programme? Don’t they want to change anything in the way it is administered? Don’t they want the new institutions that we are establishing to ensure outward orientation, institutions like the Regional Academic Councils and the biennial structures that will provide professional accreditation? Don’t they want the National Council for Education and Human Resources? Do they want everyone regardless of their financial situation to pay tuition fees? Do they want the tuition fees on Postgraduate Programmes at a public University to be determined on the basis of demand rather than on cost as we are proposing? And New Democracy accuses us of being backward-looking? Have they understood exactly what they are defending?
Let's be very clear and let New Democracy understand. We will do our utmost to upgrade the public universities. And we will demonstrate every kinds of resistance to their gradual privatisation.
Declare a champion of consensus in the area of Education.
It is difficult but we will strive for a consensus. I have said many times and on each occasion that consensus does not mean complete unanimity. But on all those educational issues on which we can agree, let us agree and take a step forward. Unfortunately, I see that in this political bloc of New Democracy, the Democratic Coalition [PASOK, the Democratic Left and the Movement of Democratic Socialists (KIDISO) ] and the River, an extreme nationalist-populist and neoliberal discourse is dominating.
With such extreme cries that we are hearing, unfortunately consensus cannot be achieved. Of course, because these parties are not in a position to enter into all-out conflict with academia, apart from the bullies that would repeal the law etc, they voted for a remarkably large number of the Articles!
You come from academia. What is your view of the Greek universities and the level of education that they provide?
My personal opinion coincides fully with what the reality tells us: the Greek students who complete Greek University are highly sought after not only by all of the major universities of the world but also in the global labour market. This says it all. Furthermore, as you know the Greek universities hold high positions in global institutional assessment lists. It is very high in relation to their success in securing research programmes. And because we're in the seventh year of economic crisis, let's point out that this was not due to the assistance provided by the State during these years to academics and researchers. It is the feat of the vast majority of my fellow teachers, of the young researchers and all those who silently decided that the responsibility was theirs for the Universities and our Research Centres not to buckle. The State owes them a generous thank you. We owe it to them because it is very difficult in a bankrupt country to manage, with less money, to maintain a high level of university education. However, this recognition of the decisive role of professors and researchers, goes hand in hand with with the public commitment that we will do everything to establish an everyday life that is governed by academic rules. We undertook this with the law that was passed. We have also strengthened the Universities with additional funding.
What is the next step in the changes that you want to bring to education?
We are committed to change in the High School and the system of access to Higher Education. The intention of the Ministry of Education is for the system that is totally anti-education to soon become a thing of the past. A system of access to Further Education will be brought in based on a rigorous National Baccalaureate. The current system of Panhellenic Examinations, even if it is fair, has run its course and is one of the biggest thorns that undermines the educational and pedagogic functioning of the Lyceum as an autonomous Secondary School level of education. That is why it is imperative for the Examinations to be removed to restore the educational autonomy of the Lyceum. Everyone agrees that today we do not have a High School. Don't we want a High School? I don't think anyone can support the proposition of us being the only European country without a High School. The serious debate is exactly this and already the Educational Policy Institute has submitted its proposals, which the Ministry will process and will arrive at final decisions. Students are not going to be caught unawares. However it will be a system with pedagogical characteristics as sovereign and, certainly, a more humane one and more friendly to young people than the current system can be categorised.
On the issues of the Church ... regarding the utilization of its assets, is there any progress?
We have created together with the Deputy Minister of Development, Mr. Alexis Haritsis, a joint committee with the Church to record the property of the Church, and we are starting from the Metropolises that have already completed this project. Immediately after that we will see what the problems are that exist as to the status of experiences of each property and we will embark on a process to unravel the cases’ legal tangle. And then we proceed. Already, though, the first two steps are very time consuming but also very important.
Minister Gavroglou studied Physics at the Universities of Lancaster, Cambridge and London
where he received his doctorate . He has taught Physics at the National Technical University of Athens , the Universities of Patras , Cambridge, Harvard , MIT , Boston and the Polytechnic of Constantinople. He was Emeritus Professor of History of Science in the Department of Methodology, History and Theory of Science (MITE) of the National and Kapodistrian University of Athens.
"A new vision for Higher Education"
Two different worlds: The Higher Education Institutions of knowledge as against neoliberal competition
5.8.2017
e model of the democratic university of knowledge on Tuesday found itself in Parliament pitted against the model of neoliberal university of competition. The two basic directions which exist for Higher Education were outlined clearly in Prime Minister Alexis Tsipras’ introduction of the Bill relating to universities.
The political confrontation between the Government and the Οpposition was clear. Prime Minister Alexis Tsipras stressed that it is "a day of effort at restarting the country’s universities and Higher Technical Institues" and described "a new vision for education". "The philosophy of the Bill is more democracy, the establishment of educational standards, opening up Universities to the economically weaker sections of the population and linking institutions with the reconstruction of economic production," he said.
The new measures are designed to strengthen the role of students in the management of universities while making it more difficult for police to enter university grounds. Another provision foresees 40% of students enrolled in postgraduate programme being exempt from having to pay university and college fees.
Article 3 of the new law restored older provisions that prevent police interventions on university campuses except in cases of serious offences. “We must safeguard free access to all ideas and free expression in the universities with respect to the democratic procedures. The only way to solve the problem is dialogue in the universities and not by police interventions that remind us of other historical periods”, said Prime Minister Alexis Tsipras alluding to the repression of students protesting against the military dictatorship.
The Bill, as the Prime Minister said, removed the administration councils "to restore democracy and the self-management of university foundations".
“Evaluation ‘yes’, jungle ‘no’: the model of “destructive assessment” that promotes "University Darwinism" and the "academic survivor" is rejected. "Progress can come from solidarity and cooperation and not from destructive competition, not from one trying to gouge out the eye of the other and the survival of the strongest with the best connections."
"At Postgraduate level we have put a stop to the very high level of tuition costs. There will be strict conditions for setting the amount of tuition fees "and above all, we set out that no student who has been accepted as a Postgraduate will be excluded if there is a proven inability to pay tuition fees."
"On this occasion, New Democracy had an alternative: for everything to be private and, if possible, at a cost. Private schools. Private universities. Private hospitals. Private insurance. Private cleaning services and private prisons. We do not favour this option which feeds on the holes in public policy and in the end results in costing citizens more."
Finance Minister, Euclid Tsakalotos, intervening in the debate of the Bill "The Organisation and Functioning of Higher Education, Arrangements for Research" said "The new law does not provide all the answers, but it does set the stage for us to discuss the sort of university we want."
He also referred to the dark sides of institutions abroad, highlighting the debt problem that has been created for many students because they take out loans to cover the costs of their studies, including high tuition fees.
"Do we want a business model with competitive fees? Do we want the commercialisation of higher education? The one who pays, influences the course content and methodology. This means that knowledge is not open to everyone."
He made particular reference to the issue of evaluation: "in England, university academics are leaving because they are fed up with filling out evaluation forms instead of teaching." He also talked about "little tricks" which American and European universities resort to in order to achieve better performance in their assessment. He pointed out the need to protect higher education from private interests. "Competitiveness has no place in the University. Education has nothing to do with competition. Education is a public undertaking."
The political confrontation between the Government and the Οpposition was clear. Prime Minister Alexis Tsipras stressed that it is "a day of effort at restarting the country’s universities and Higher Technical Institues" and described "a new vision for education". "The philosophy of the Bill is more democracy, the establishment of educational standards, opening up Universities to the economically weaker sections of the population and linking institutions with the reconstruction of economic production," he said.
The new measures are designed to strengthen the role of students in the management of universities while making it more difficult for police to enter university grounds. Another provision foresees 40% of students enrolled in postgraduate programme being exempt from having to pay university and college fees.
Article 3 of the new law restored older provisions that prevent police interventions on university campuses except in cases of serious offences. “We must safeguard free access to all ideas and free expression in the universities with respect to the democratic procedures. The only way to solve the problem is dialogue in the universities and not by police interventions that remind us of other historical periods”, said Prime Minister Alexis Tsipras alluding to the repression of students protesting against the military dictatorship.
The Bill, as the Prime Minister said, removed the administration councils "to restore democracy and the self-management of university foundations".
“Evaluation ‘yes’, jungle ‘no’: the model of “destructive assessment” that promotes "University Darwinism" and the "academic survivor" is rejected. "Progress can come from solidarity and cooperation and not from destructive competition, not from one trying to gouge out the eye of the other and the survival of the strongest with the best connections."
"At Postgraduate level we have put a stop to the very high level of tuition costs. There will be strict conditions for setting the amount of tuition fees "and above all, we set out that no student who has been accepted as a Postgraduate will be excluded if there is a proven inability to pay tuition fees."
"On this occasion, New Democracy had an alternative: for everything to be private and, if possible, at a cost. Private schools. Private universities. Private hospitals. Private insurance. Private cleaning services and private prisons. We do not favour this option which feeds on the holes in public policy and in the end results in costing citizens more."
Finance Minister, Euclid Tsakalotos, intervening in the debate of the Bill "The Organisation and Functioning of Higher Education, Arrangements for Research" said "The new law does not provide all the answers, but it does set the stage for us to discuss the sort of university we want."
He also referred to the dark sides of institutions abroad, highlighting the debt problem that has been created for many students because they take out loans to cover the costs of their studies, including high tuition fees.
"Do we want a business model with competitive fees? Do we want the commercialisation of higher education? The one who pays, influences the course content and methodology. This means that knowledge is not open to everyone."
He made particular reference to the issue of evaluation: "in England, university academics are leaving because they are fed up with filling out evaluation forms instead of teaching." He also talked about "little tricks" which American and European universities resort to in order to achieve better performance in their assessment. He pointed out the need to protect higher education from private interests. "Competitiveness has no place in the University. Education has nothing to do with competition. Education is a public undertaking."
Greece’s return to the Bond Market
In an interview with Kathimerini newspaper, Greek Finance Minister Euclid Tsakalotos said the Government must prove its credibility by fully implementing the reforms agreed with its international creditors. Commenting on the recent return to bond markets, he said “it was a successful foray, as was seen in the statements by the Institutions [the European Central Bank, European Commission and European Stability Mechanism] and the media.”
“Our future target is not just to reduce the cost of borrowing but to return Greece to normalcy with regards to market access, which will force borrowing rates in the private sector downwards and allow banks and businesses to borrow again on better terms.”
Prime Minister Alexis Tsipras last week hailed Tuesday’s sale of Greek bonds, the first in three years, as a milestone on the country's way to exiting the crisis and international bailouts. The bond issue, which raised 3€ billion, is “the most important message and the most significant step in order to finish this unpleasant adventure of the Memorandum,” he said.
Addressing SYRIZA's Central Committee on Friday, he Tsipras outlined the strategy: "To implement the Agreement, to restore conditions of stability that will allow a rapid recovery of the economy, to reestablish the social state and to confront the "state within the state" – that is the state of corruption and graft."
"Greece's credibility and prestige has been restored, not only because of the wide-ranging reforms to the state, public administration and tax mechanisms but also through the battles that the Government has fought, its determination during both its first and its second term."
New Auction for TV Licences
The National Council of Radio and Television (ESR) has set the starting price for each of seven national terrestrial television licences to be put up for auction at 35€ million.
In a letter sent to Digital Policy and Media Minister Nikos Pappas, the ESR said the decision was taken unanimously and takes into account the tendering process held in 2016.
It also noted that the television broadcasting spectrum i.e. the number of licences possible, was not “unlimited”.
Alternate Finance Minister George Chouliarakis on Friday signed a Joint Ministerial Decision setting the starting price for each of the seven national television content broadcasting licences to be offered by the Greek state. The licences are for the provision of national-range terrestrial digital broadband free reception television content.
Πόθεν έσχες for Channel Owners too!
Owners of private television stations will have to submit declarations listing the provenance of all of their assets, a form known as “pothen esches” in Greek [Literally “Where did you get that from?” Ed], after the Council of State on Wednesday rejected a request by their union, EITISEE, that they should be exempt from the obligation. These declarations are part of the Government’s drive to stop money laundering and capital flight.The country’s Supreme Court said that there were no grounds for the union’s argument that businesspeople involved in broadcasting would be exposed to damage if the provenance of their wealth is made public
The Struggle against Corruption continues
Former PASOK Transport Minister, Tassos Mantelis was found guilty on Friday of money laundering over contracts between Siemens Hellas and the then state-controlled telecomms group OTE.
Allegations that Greek politicians and political parties received bribes during successive administrations to grant German industrial giant Siemens lucrative contracts in the run-up to the 2004 Olympics have dominated local media for years.
The Court ruled that Mr. Mantelis had concealed a 450,000 deutsche mark back-hander he had demanded of Siemens via a third party to approve a contract with OTE. The money, which was received in two instalments in 1998 and 2000, was deposited in a Swiss bank.
Mantelis, who was alleged to have committed the offence while he was transport minister from 1996-2000 in the PASOK Government of Costas Simitis, was found guilty of money laundering and given an eight-year suspended sentence.
In 2010, Mr. Mantelis had told an investigating parliamentary committee that he had accepted the money from Siemens while in office as a "campaign donation."
In the same case, a former Executive at Siemens Hellas, Ilias Georgiou was found guilty of bribery and money laundering and handed a 12-year suspended prison sentence with orders not to leave the country.
Siemens ended one of the biggest corporate corruption probes in history when it agreed in 2008 to pay about 1€ billion in fines and penalties after investigations by U.S. and German authorities into bribes it paid to win contracts.
In an interview with Kathimerini newspaper, Greek Finance Minister Euclid Tsakalotos said the Government must prove its credibility by fully implementing the reforms agreed with its international creditors. Commenting on the recent return to bond markets, he said “it was a successful foray, as was seen in the statements by the Institutions [the European Central Bank, European Commission and European Stability Mechanism] and the media.”
“Our future target is not just to reduce the cost of borrowing but to return Greece to normalcy with regards to market access, which will force borrowing rates in the private sector downwards and allow banks and businesses to borrow again on better terms.”
Prime Minister Alexis Tsipras last week hailed Tuesday’s sale of Greek bonds, the first in three years, as a milestone on the country's way to exiting the crisis and international bailouts. The bond issue, which raised 3€ billion, is “the most important message and the most significant step in order to finish this unpleasant adventure of the Memorandum,” he said.
Addressing SYRIZA's Central Committee on Friday, he Tsipras outlined the strategy: "To implement the Agreement, to restore conditions of stability that will allow a rapid recovery of the economy, to reestablish the social state and to confront the "state within the state" – that is the state of corruption and graft."
"Greece's credibility and prestige has been restored, not only because of the wide-ranging reforms to the state, public administration and tax mechanisms but also through the battles that the Government has fought, its determination during both its first and its second term."
New Auction for TV Licences
The National Council of Radio and Television (ESR) has set the starting price for each of seven national terrestrial television licences to be put up for auction at 35€ million.
In a letter sent to Digital Policy and Media Minister Nikos Pappas, the ESR said the decision was taken unanimously and takes into account the tendering process held in 2016.
It also noted that the television broadcasting spectrum i.e. the number of licences possible, was not “unlimited”.
Alternate Finance Minister George Chouliarakis on Friday signed a Joint Ministerial Decision setting the starting price for each of the seven national television content broadcasting licences to be offered by the Greek state. The licences are for the provision of national-range terrestrial digital broadband free reception television content.
Πόθεν έσχες for Channel Owners too!
Owners of private television stations will have to submit declarations listing the provenance of all of their assets, a form known as “pothen esches” in Greek [Literally “Where did you get that from?” Ed], after the Council of State on Wednesday rejected a request by their union, EITISEE, that they should be exempt from the obligation. These declarations are part of the Government’s drive to stop money laundering and capital flight.The country’s Supreme Court said that there were no grounds for the union’s argument that businesspeople involved in broadcasting would be exposed to damage if the provenance of their wealth is made public
The Struggle against Corruption continues
Former PASOK Transport Minister, Tassos Mantelis was found guilty on Friday of money laundering over contracts between Siemens Hellas and the then state-controlled telecomms group OTE.
Allegations that Greek politicians and political parties received bribes during successive administrations to grant German industrial giant Siemens lucrative contracts in the run-up to the 2004 Olympics have dominated local media for years.
The Court ruled that Mr. Mantelis had concealed a 450,000 deutsche mark back-hander he had demanded of Siemens via a third party to approve a contract with OTE. The money, which was received in two instalments in 1998 and 2000, was deposited in a Swiss bank.
Mantelis, who was alleged to have committed the offence while he was transport minister from 1996-2000 in the PASOK Government of Costas Simitis, was found guilty of money laundering and given an eight-year suspended sentence.
In 2010, Mr. Mantelis had told an investigating parliamentary committee that he had accepted the money from Siemens while in office as a "campaign donation."
In the same case, a former Executive at Siemens Hellas, Ilias Georgiou was found guilty of bribery and money laundering and handed a 12-year suspended prison sentence with orders not to leave the country.
Siemens ended one of the biggest corporate corruption probes in history when it agreed in 2008 to pay about 1€ billion in fines and penalties after investigations by U.S. and German authorities into bribes it paid to win contracts.
Registered - Cleaning - use of Manta Net - Sea Bed Camera - Sampling
Plastic Pollution in Greek Seas – new research
Sampling of microscopic plastics has been carried out in the Ionian, Cretan and Aegean Seas. There have been visits to remote and inaccessible beaches, as well as video inspections of the sea bed in the caldera of Santorini and north of Mykonos.
Telltale evidence of the magnitude of the problem of plastic pollution in Greek seas was published by Greenpeace. "Distress signals are being sent out by our seas, according to the findings of the survey, both from the beaches of caretta caretta turtles in Zakynthos to the more secluded beaches of Irakleia and Mykonos, and from the bottom of the Caldera of Santorini to the open sea, plastics are found everywhere, driving the delicate ecosystem of the Mediterranean close to the point of no return", the Organization announced.
Upon completion of the tour of the legendary ship, the Rainbow Warrior to Greece, Greenpeace is publishing the preliminary results of the scientific research which it conducted with the Hellenic Centre for Marine Research (ΕΛΚΕΘΕ), during its 12 day tour.
The first pictures [of the sea bed Ed.] showed that plastics are found everywhere and are broken down into tiny pieces, even to a size that is not visible to the human eye. They never leave the environment and remain in terrestrial and marine ecosystems, while they get into the food chain through marine organisms that ingest them.
"Plastic has invaded everywhere, even where no human being sets foot. Plastic pollution is a disease that has spread, literally, to every corner of our seas, and, as with any disease, the best solution is prevention, i.e. the drastic reduction in the use of plastic,"said Alkis Kafetzis, campaign manager of Greenpeace for the marine environment.
"The problem of the appearance of plastics in Greek seas started to be recorded only in the last five years," said the researcher of the ΕΛΚΕΘΕ, Vassilis Gerovassiliou, who participated in the surveys. "Within the framework of the current cooperation between Greenpeace and the ΕΛΚΕΘΕ, but also from previous research, large concentrations of plastics have been recorded in protected habitats with rich biodiversity and important areas of conservation.
A huge variety of rubbish, particularly of plastics, has been observed at the bottom of the Greek seas, often far away from the source of the pollution, while pieces of plastic bags and other objects even end up inside underwater caves,"he added.
Specifically, at a depth of 317 metres the underwater camera in the Caldera of Santorini recorded 84 items of rubbish, which, for the most part, were plastic bags, cups and lids for cups of coffee and other single-use objects.
In two small inaccessible beaches of Irakleia, inside the bay of the North Cave, a total of 514 plastic objects were counted. In a small secluded beach between Armenisti and Avlemona of Mykonos 821 plastic objects were counted.
In the vast majority of the 13 samples collected from the surface of the sea were found plastic fragments and plastic fibres visible with the naked eye. The analyses which the ΕΛΚΕΘΕ will conduct will reveal more information, especially about those that require special procedures to identify them.
During the cleanup of beaches Brontonero, Laganas (inside the Zakynthos National Park) and Kryoneri on Zakynthos, over 50 60-litre bags were collected, with the majority of rubbish being plastic single-use objects.
"What the example of Syros shows us is that a major change in the daily practices of the citizens can be achieved with simultaneous information campaigns among the public and shops. This can be achieved in other places. Supportive measures from the Government, as well as voluntary agreements with big supermarket chains have a direct affect and act as a guide for behaviour change at the national level, making change easier for the citizen" commented Antigone Dalamagka, Director of Ecological Recycling Company.
Greenpeace is calling on the State to ensure that the evolving European legislation will reduce the major causes of plastic pollution and will take steps in our country to drasticly reduce the production of single-use plastic objects disposable, and to change consumer behaviours and foster innovation.
Sampling of microscopic plastics has been carried out in the Ionian, Cretan and Aegean Seas. There have been visits to remote and inaccessible beaches, as well as video inspections of the sea bed in the caldera of Santorini and north of Mykonos.
Telltale evidence of the magnitude of the problem of plastic pollution in Greek seas was published by Greenpeace. "Distress signals are being sent out by our seas, according to the findings of the survey, both from the beaches of caretta caretta turtles in Zakynthos to the more secluded beaches of Irakleia and Mykonos, and from the bottom of the Caldera of Santorini to the open sea, plastics are found everywhere, driving the delicate ecosystem of the Mediterranean close to the point of no return", the Organization announced.
Upon completion of the tour of the legendary ship, the Rainbow Warrior to Greece, Greenpeace is publishing the preliminary results of the scientific research which it conducted with the Hellenic Centre for Marine Research (ΕΛΚΕΘΕ), during its 12 day tour.
The first pictures [of the sea bed Ed.] showed that plastics are found everywhere and are broken down into tiny pieces, even to a size that is not visible to the human eye. They never leave the environment and remain in terrestrial and marine ecosystems, while they get into the food chain through marine organisms that ingest them.
"Plastic has invaded everywhere, even where no human being sets foot. Plastic pollution is a disease that has spread, literally, to every corner of our seas, and, as with any disease, the best solution is prevention, i.e. the drastic reduction in the use of plastic,"said Alkis Kafetzis, campaign manager of Greenpeace for the marine environment.
"The problem of the appearance of plastics in Greek seas started to be recorded only in the last five years," said the researcher of the ΕΛΚΕΘΕ, Vassilis Gerovassiliou, who participated in the surveys. "Within the framework of the current cooperation between Greenpeace and the ΕΛΚΕΘΕ, but also from previous research, large concentrations of plastics have been recorded in protected habitats with rich biodiversity and important areas of conservation.
A huge variety of rubbish, particularly of plastics, has been observed at the bottom of the Greek seas, often far away from the source of the pollution, while pieces of plastic bags and other objects even end up inside underwater caves,"he added.
Specifically, at a depth of 317 metres the underwater camera in the Caldera of Santorini recorded 84 items of rubbish, which, for the most part, were plastic bags, cups and lids for cups of coffee and other single-use objects.
In two small inaccessible beaches of Irakleia, inside the bay of the North Cave, a total of 514 plastic objects were counted. In a small secluded beach between Armenisti and Avlemona of Mykonos 821 plastic objects were counted.
In the vast majority of the 13 samples collected from the surface of the sea were found plastic fragments and plastic fibres visible with the naked eye. The analyses which the ΕΛΚΕΘΕ will conduct will reveal more information, especially about those that require special procedures to identify them.
During the cleanup of beaches Brontonero, Laganas (inside the Zakynthos National Park) and Kryoneri on Zakynthos, over 50 60-litre bags were collected, with the majority of rubbish being plastic single-use objects.
"What the example of Syros shows us is that a major change in the daily practices of the citizens can be achieved with simultaneous information campaigns among the public and shops. This can be achieved in other places. Supportive measures from the Government, as well as voluntary agreements with big supermarket chains have a direct affect and act as a guide for behaviour change at the national level, making change easier for the citizen" commented Antigone Dalamagka, Director of Ecological Recycling Company.
Greenpeace is calling on the State to ensure that the evolving European legislation will reduce the major causes of plastic pollution and will take steps in our country to drasticly reduce the production of single-use plastic objects disposable, and to change consumer behaviours and foster innovation.
Greece makes a successful return to Money Markets
29.07.2017
Οn Monday the Government began the process of issuing a government bond. The notes were to be issued on Tuesday, and the target was a yield below 4.95%.
Athens had mandated BNP Paribas, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and HSBC as joint lead managers for a five-year euro bond. At the same time, Greece invited holders of its current 4.75% percent bonds maturing in 2019 to tender them for cash, along with a plan to offer new five-year paper.
The bond sale – Greece’s first since 2014 - followed an upgrade of the country’s sovereign credit rating outlook to positive from stable by Standard & Poor’s last Friday.
On Tuesday Greece’s return to the financial markets after three years was a success. The country sold 3€ billion worth of a new five-year bond, at a yield of 4.625%, lower than the targeted 4.95% of its last five-year bond sale in 2014.
Greek Government sources called the sale an "absolute success" which confirms the positive course of the Greek economy and leads to the step-by-step exit from the economic crisis.
The same source revealed that there were more than 200 official offers for the new paper, worth 6.5€ billion euros, saying the majority were "real investors" and not speculation funds.
Speaking during a meeting with Europe’s Economics Commissioner, Pierre Moscovici, in Athens on Tuesday, Prime Minister Alexis Tsipras said that “investors were welcoming the Greek bond sale.”
“It is now time to talk about the future of Greece, about how we shall work together so that the programme can come to a successful conclusion next year,” PM Tsipras said. “We must make plans about Greece in the post-programme period.”
Finance Minister Euclid Tsakalotos stated that the sale was satisfactory, adding that it proved doubters wrong. He also revealed that Greece will go back to the market for a second and a third time before the bailout programme ends in 2018.
Finance Minister Euclid Tsakalotos said after meeting with Prime Minister Alexis Tsipras:
“It was something more than we expected,” while putting emphasis on the “quality” of the investors that had shown an interest.
“We came out with a coupon of 4.375%, which is roughly 0.3% less than the last time we tried to access the markets.” he noted. The number and quality of the investors that had shown an interest in the issue “shows us that there are the first steady steps of confidence in the Greek economy,” he added.
Minister Tsakalotos was critical of the Opposition’s reaction to the bond issue, saying the Opposition parties had been proved wrong. According to the Minister, what had happened on Tuesday was not the end but a beginning “that we discussed at length…with responsibility, in order to find the right time to return to the markets. We decided that the conditions were right today and we returned in this satisfactory way.”
“We know that the Greek people have suffered greatly, have suffered more than they deserved, but I think also that we have laid the first stone, the first process for accessing the markets. There will be a second and third, so that we can approach August 2018 with confidence and exit the memoranda on different terms, so that our Government can do the things it has promised.”
Athens had mandated BNP Paribas, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and HSBC as joint lead managers for a five-year euro bond. At the same time, Greece invited holders of its current 4.75% percent bonds maturing in 2019 to tender them for cash, along with a plan to offer new five-year paper.
The bond sale – Greece’s first since 2014 - followed an upgrade of the country’s sovereign credit rating outlook to positive from stable by Standard & Poor’s last Friday.
On Tuesday Greece’s return to the financial markets after three years was a success. The country sold 3€ billion worth of a new five-year bond, at a yield of 4.625%, lower than the targeted 4.95% of its last five-year bond sale in 2014.
Greek Government sources called the sale an "absolute success" which confirms the positive course of the Greek economy and leads to the step-by-step exit from the economic crisis.
The same source revealed that there were more than 200 official offers for the new paper, worth 6.5€ billion euros, saying the majority were "real investors" and not speculation funds.
Speaking during a meeting with Europe’s Economics Commissioner, Pierre Moscovici, in Athens on Tuesday, Prime Minister Alexis Tsipras said that “investors were welcoming the Greek bond sale.”
“It is now time to talk about the future of Greece, about how we shall work together so that the programme can come to a successful conclusion next year,” PM Tsipras said. “We must make plans about Greece in the post-programme period.”
Finance Minister Euclid Tsakalotos stated that the sale was satisfactory, adding that it proved doubters wrong. He also revealed that Greece will go back to the market for a second and a third time before the bailout programme ends in 2018.
Finance Minister Euclid Tsakalotos said after meeting with Prime Minister Alexis Tsipras:
“It was something more than we expected,” while putting emphasis on the “quality” of the investors that had shown an interest.
“We came out with a coupon of 4.375%, which is roughly 0.3% less than the last time we tried to access the markets.” he noted. The number and quality of the investors that had shown an interest in the issue “shows us that there are the first steady steps of confidence in the Greek economy,” he added.
Minister Tsakalotos was critical of the Opposition’s reaction to the bond issue, saying the Opposition parties had been proved wrong. According to the Minister, what had happened on Tuesday was not the end but a beginning “that we discussed at length…with responsibility, in order to find the right time to return to the markets. We decided that the conditions were right today and we returned in this satisfactory way.”
“We know that the Greek people have suffered greatly, have suffered more than they deserved, but I think also that we have laid the first stone, the first process for accessing the markets. There will be a second and third, so that we can approach August 2018 with confidence and exit the memoranda on different terms, so that our Government can do the things it has promised.”
PM Tsipras: Alpha TV Interview
In his first interview after the return of Greece to the financial markets on Alpha TV, Prime Minister Tsipras said "The completion of the Assessment, the decision about the debt and the return to the financial markets constitute a steady journey for the end of the Memoranda." "We are working with a plan to build a new, sustainable and fair productive model."
"This will be a quieter summer, but we should not be complacent," he said, stressing that it had been many years since the world press had such positive comments about Greece.
According to the Prime Minister, the return to the financial markets has opened a new road, "a chink of hope". "The test return must be repeated successfully for us to go permanently to the markets in the summer of 2018," he said, for us to have a gradual reduction of interest rates, so that in a year from now the country can finance its needs.
"We have taken an important step which is the beginning of the end of an adventure," "The biggest difficulties we have left behind us"
"We have all begun to see a recovery of confidence in investments and in jobs. In the last two years more than 300,000 jobs have been created, while in the years of crisis we had lost 900,000. We have covered one third of the destruction." "The road is long".
"There is no need to celebrate. What we are saying is that we have made a start; we are not complacent "The foundations have been laid" and the PM expressed the view that after the German elections the measures for debt relief will be quantified.
"The IMF is insisting on further debt relief" he pointed out, noting that the process was not complete and underlining that the Eurogroup of 15th June secured not only the growth clause for Greece but also and the “locking-in” of the algorithm for the sustainability of the public debt.
He stressed that "we are in uncharted waters," - "the objective of inclusion in the quantitative easing programme remains and, indeed, after returning to the financial markets, this possibility comes closer.
"If our partners deliver on their commitments, and we will deliver on ours"
The PM explained that he expects the measures for debt relief to be implemented before the country’s obligations regarding the measures and countermeasures. " These are of equal weight and will start on 1.1.2019. But the measures on the debt will begin immediately after the end of the programme in August 2018. So, first we see if our partners fulfill their commitments partners and after that we will implement what we have pledged, having, however, exited the Programme and having regained degrees of our freedom."
"The next day will not be worse. We have an obligation to reduce the tax-free allowance, but what we collect will be given in tax deductions at the same time. Exactly what we take is what we will give."
In addition, he noted that the positive growth rates will give the possibility of creating some financial leeway. "We will return it to society and to the economy. In the budget for 2019 we will have the possibility of giving relief to those who have borne the greatest brunt."
"We are building a surplus in EFKA"
Referring to National Insurance, he stated that 80% of the insured and 90% of farmers are paying less contributions while underlined that "we are building a surplus in EFKA," noting however that "there is a percentage of workers who are being squeezed by insurance contributions and taxes". "Some economically strong in the previous period were keeping a low profile," he added.
On tax evasion, he recalled the Bill for the voluntary declaration of incomes while he underlined that controls have been stepped up and he stressed that the political will exists to combat it.
"I did not expect the struggle of an entire people to be dealt with with such cynicism," stressed the Prime Minister referring to the European partners. "I waged this battle with all my strength to vindicate the people's mandate to negotiate. The opposition accuses us of being liars. If we were liars, we would not have go on to the end to see that there is no tomorrow," he commented about the first half of 2015.
Referring to Yannis Varoufakis, he was tight lipped, wishing him "good sales with his book". "Mr. Varoufakis has written a book three months ago. I am struck how three newspapers on the same Sunday decided to have the same subject. It is an attempt by the Opposition and the media which support it to change the agenda." "We are the ones who are leading the country out of the Stewardship and many do not want that."
"An independent judiciary is one thing, an unscrutinised judiciary is another"
"There is no Government-Judiciary confrontation, there are problems in the Judiciary, which I discussed with the judges," said the Prime Minister, noting that he could not blame all the judges and stressing that there are some "who commit perjury" and there are decisions that are inconsistent with the society’s common legal sense.
"The separation of powers is not disputed by anyone and should not be questioned. The fact that justice must be independent is not disputed and nor should it be. "An independent judiciary is one thing, an unscrutinised judiciary is another"
"Greece is a security pillar"
"We are the safest capital in Europe. Greece is a pillar of security"said the Prime Minister referring to security and crime, stressing that the problems observed in Exarchia and in other areas, such as Menidi, won't be solved with repression and police interventions. "Civil society, the inhabitants, the Municipality have a role to play," he stressed, pointing to the millions of tourists who enjoy safe holidays in our country.
On foreign policy and the challenges of Turkey, PM Tsipras replied that our country has a multi-dimensional foreign policy and a pragmatic approach. "To protect the country's security, you must take care of peace" Prime Minister stressed and stressed that "Greece is a country that, despite the economic crisis, holds an important geopolitical position, which has been enhanced." He reiterated that "we are ready to defend the national interests of the country".
In his first interview after the return of Greece to the financial markets on Alpha TV, Prime Minister Tsipras said "The completion of the Assessment, the decision about the debt and the return to the financial markets constitute a steady journey for the end of the Memoranda." "We are working with a plan to build a new, sustainable and fair productive model."
"This will be a quieter summer, but we should not be complacent," he said, stressing that it had been many years since the world press had such positive comments about Greece.
According to the Prime Minister, the return to the financial markets has opened a new road, "a chink of hope". "The test return must be repeated successfully for us to go permanently to the markets in the summer of 2018," he said, for us to have a gradual reduction of interest rates, so that in a year from now the country can finance its needs.
"We have taken an important step which is the beginning of the end of an adventure," "The biggest difficulties we have left behind us"
"We have all begun to see a recovery of confidence in investments and in jobs. In the last two years more than 300,000 jobs have been created, while in the years of crisis we had lost 900,000. We have covered one third of the destruction." "The road is long".
"There is no need to celebrate. What we are saying is that we have made a start; we are not complacent "The foundations have been laid" and the PM expressed the view that after the German elections the measures for debt relief will be quantified.
"The IMF is insisting on further debt relief" he pointed out, noting that the process was not complete and underlining that the Eurogroup of 15th June secured not only the growth clause for Greece but also and the “locking-in” of the algorithm for the sustainability of the public debt.
He stressed that "we are in uncharted waters," - "the objective of inclusion in the quantitative easing programme remains and, indeed, after returning to the financial markets, this possibility comes closer.
"If our partners deliver on their commitments, and we will deliver on ours"
The PM explained that he expects the measures for debt relief to be implemented before the country’s obligations regarding the measures and countermeasures. " These are of equal weight and will start on 1.1.2019. But the measures on the debt will begin immediately after the end of the programme in August 2018. So, first we see if our partners fulfill their commitments partners and after that we will implement what we have pledged, having, however, exited the Programme and having regained degrees of our freedom."
"The next day will not be worse. We have an obligation to reduce the tax-free allowance, but what we collect will be given in tax deductions at the same time. Exactly what we take is what we will give."
In addition, he noted that the positive growth rates will give the possibility of creating some financial leeway. "We will return it to society and to the economy. In the budget for 2019 we will have the possibility of giving relief to those who have borne the greatest brunt."
"We are building a surplus in EFKA"
Referring to National Insurance, he stated that 80% of the insured and 90% of farmers are paying less contributions while underlined that "we are building a surplus in EFKA," noting however that "there is a percentage of workers who are being squeezed by insurance contributions and taxes". "Some economically strong in the previous period were keeping a low profile," he added.
On tax evasion, he recalled the Bill for the voluntary declaration of incomes while he underlined that controls have been stepped up and he stressed that the political will exists to combat it.
"I did not expect the struggle of an entire people to be dealt with with such cynicism," stressed the Prime Minister referring to the European partners. "I waged this battle with all my strength to vindicate the people's mandate to negotiate. The opposition accuses us of being liars. If we were liars, we would not have go on to the end to see that there is no tomorrow," he commented about the first half of 2015.
Referring to Yannis Varoufakis, he was tight lipped, wishing him "good sales with his book". "Mr. Varoufakis has written a book three months ago. I am struck how three newspapers on the same Sunday decided to have the same subject. It is an attempt by the Opposition and the media which support it to change the agenda." "We are the ones who are leading the country out of the Stewardship and many do not want that."
"An independent judiciary is one thing, an unscrutinised judiciary is another"
"There is no Government-Judiciary confrontation, there are problems in the Judiciary, which I discussed with the judges," said the Prime Minister, noting that he could not blame all the judges and stressing that there are some "who commit perjury" and there are decisions that are inconsistent with the society’s common legal sense.
"The separation of powers is not disputed by anyone and should not be questioned. The fact that justice must be independent is not disputed and nor should it be. "An independent judiciary is one thing, an unscrutinised judiciary is another"
"Greece is a security pillar"
"We are the safest capital in Europe. Greece is a pillar of security"said the Prime Minister referring to security and crime, stressing that the problems observed in Exarchia and in other areas, such as Menidi, won't be solved with repression and police interventions. "Civil society, the inhabitants, the Municipality have a role to play," he stressed, pointing to the millions of tourists who enjoy safe holidays in our country.
On foreign policy and the challenges of Turkey, PM Tsipras replied that our country has a multi-dimensional foreign policy and a pragmatic approach. "To protect the country's security, you must take care of peace" Prime Minister stressed and stressed that "Greece is a country that, despite the economic crisis, holds an important geopolitical position, which has been enhanced." He reiterated that "we are ready to defend the national interests of the country".
Nikos Pappas, the Minister for Digital Policy, Media and Telecommunication gave a wide-ranging interview to EURACTIV.com
The Second Assessment of the bailout programme was successfully concluded. What is your next step?
From now on, a growth plan must be implemented that does not repeat the mistakes of the past. These mistakes are related to excessive borrowing on both public and household accounts, but also the huge inequalities that arose from a model of economic policy that put both European societies and political leaderships to the test.
Greece is at a unique point on the map, regaining its role internationally and taking advantage of its geostrategic position. It can be a telecommunications, commerce and transport hub, but in order to do that in a compact and reliable way, it needs modern networks.
We have already completed major motorways and we are now entering the process of building modern internet networks. The high-speed internet networks for all Greeks will bring the country into a new phase. These technologies can make all sectors of the Greek economy more efficient and productive. They are in a position to revolutionise the way in which Greek producers produce, the way consumers consume and the way the Greek businesses operate.
Is Europe convinced that Greece has turned the page? There are still voices which claim the opposite.
You are right to point it out, but I think the pessimists that see the glass half-empty are becoming ever smaller in number as time passes, under the unbearable weight of a growing economic reality.
This reality says that Greece has increased employment by 320,000 jobs in two-and-a-half years, while unemployment has dropped 5.5% compared to the previous coalition Government of centre-right New Democracy and the Pan-Hellenic Socialist Movement. In addition, the budget is in order and exports and investments have increased.
Industrial production, for example, according to official statistics, has risen this month by 19% compared to last year. Consequently, the signs of economic recovery are strengthening and I think whatever solution is chosen and should be pursued, it should not undermine these growth prospects.
What could be a major obstacle to the continuation of the country’s recovery?
I think any new delay, but it does not seem that will be the case. Because all sides have understood that it is in everyone’s interest to complete the negotiations about the medium-term debt relief measures that will be implemented after the end of the programme.
We need to note that, with the Eurogroup decision, two very important steps have been taken.
Firstly, it’s the provision for the implementation of the Greek debt growth clause and its repayment. The economic logic changes. In the two previous programmes, we had to restrain the economy to service the debt, even at the cost of recession. Now the debt is serviced by growth, so we become partners with our partners in the prospect of economic growth.
The second important issue is the final paragraph of the decision, which provides for the creation of the proper reserves that will guarantee Greece’s return to the financial markets without any other conditions. The European Stability Mechanism (ESM), Europe’s financial arm and its political leaderships, guarantee the smooth financing of a country in a programme. This is a huge step.
The first successful return to the markets shows that the country is on the rise.
We have difficult and complicated negotiations for Brexit ahead. Some believe that Europeans will have one voice; others claim that there will be significant divisions. How does Greece see it?
Europe is faced with some choices that have long been leading to these deadlocks. There is a governance problem.
Europe has lost its ability to persuade people that it works in their interest. Of course, we must say that the critical political developments of the last year, a year that some looked at with curiosity and others with horror – the British Referendum, a French and a Dutch election – has come and gone without the European project being dismantled. Therefore, it has to be recognised that the EU project has more stamina than anyone could have believed.
The solution, in my opinion, lies in a progressive federalism; this is the road that Europe has to take. The progressive ones who perceive this as a priority need to consolidate their initiatives so that policies can be implemented in this direction.
At what stage is the issue of the tender for TV licenses?
Here we have made some positive steps in the last few weeks. Greece’s independent regulatory authority, the National Council for Radio and Television (NCRTV), which was set up last October, seems to be determined to make progress.
We will soon have the notice for a new TV licence auction. The first necessary steps have been taken, the number of licences has been set and there seems to be a willingness to complete this process and to close a wound for the country, which has been open for decades.
What often makes it difficult for our negotiating team or the Greek Prime Minister himself during discussions at European level is that the negotiating counterparts do not understand why there may be some special categories of citizens who do not meet their obligations.
What do you mean exactly?
Apart from the owners of the television stations, who for 30 years have been doing business without a licence, we also have the example of some lawyers who feel that their profession cannot be subject to the Electronic Transactions Act, because, as they claim, privacy issues arise from the cases they undertake. The same opinion is shared by some “high-ranking” doctors. Let’s not forget that some judges have also claimed the right not to file a wealth statement, as most civil servants do.
This is a distortion that dates back to the period when New Democracy and PASOK were in power, but I am optimistic that we will make a breakthrough.
We all have to understand this. Such wounds cannot be left open in a Greece that is trying and ultimately emerging from the crisis, slowly but surely. The current Government will not allow these wounds to remain open. We should show our partners and ourselves and send a message to society that we will not repeat these mistakes.
Recently, a TV station (Star Channel) filed a lawsuit against the State for “loss of profits” due to the loss of its television programming. Specifically, it blamed last year’s television licence auction. How do you comment on this legal move?
It is clear now. After this lawsuit and the announcements of the owners of the television stations, they [the TV channel owners] do not want a new auction to take place in order to get legal licences for their operations. And above all, they do not want to put their hands in their pockets to pay for their use of public property.
Our answer is clear. The implementation of the laws and the Constitution will not accept any exemptions. No matter how many attacks we receive, we do not back down.
As for the actions of the channels, you should also ask the Opposition parties. Can a television station, which for many years has broadcast without a legal licence, seek compensation – after 30 years – for the first auction for television licences? Can it demand the preservation of this lawlessness, taking advantage of the irresponsibility of New Democracy and PASOK which did not enforce the licencing of the channels?
A response from these political parties would also be interesting in the sense that the owners of the TV stations recently claimed to have been ‘hostages to insecurity’ for decades. What does this mean and how exactly did the two parties behave when they were in power?
They should finally take a position. Mr Mitsotakis [leader of New Democracy] and Ms Gennimata [Leader of PASOK] should not bury statements suggesting that their parties ‘kept the Press hostage’.
TV channel owners have now opened a new row with the Government when they asked the country’s Supreme Court to exempt their top executives from filing a wealth statement, citing privacy concerns.
What has been happening with the Greek justice system lately? The opposition blames you for attacking its independence.
There was a judicial decision recently which asserted that the non-payment of employees’ salaries does not constitute an unfavorable change in the employment contract. This goes beyond what we consider to be the European norm.
We are entitled to judge it, even in public. Justice representatives’ assessments are not beyond criticism.
If this is seen as an attack on the independence of the institution, we should also look at the cases of interference, as perhaps – according to press reports – we had in the past.
The opposition also accuses you of having imposed excessive taxation; that the state’s debt to individuals is huge and calls for elections to follow a different policy mix.
The elections will be held at the end of our term. Alexis Tsipras will be the first Prime Minister since the country joined the bailout programme to stay until the end of the four-year mandate. Such a development would be a signal of stability and recovery. We challenge the main Opposition party to stop focusing on nonsense and talk about the essence of politics. It should come to the table and discuss the hard core of policy and the results we bring. But because it cannot stand this debate, as the reality is clear and resounding, it brings up other issues that provoke ridicule and mockery among the Greek people.
The Second Assessment of the bailout programme was successfully concluded. What is your next step?
From now on, a growth plan must be implemented that does not repeat the mistakes of the past. These mistakes are related to excessive borrowing on both public and household accounts, but also the huge inequalities that arose from a model of economic policy that put both European societies and political leaderships to the test.
Greece is at a unique point on the map, regaining its role internationally and taking advantage of its geostrategic position. It can be a telecommunications, commerce and transport hub, but in order to do that in a compact and reliable way, it needs modern networks.
We have already completed major motorways and we are now entering the process of building modern internet networks. The high-speed internet networks for all Greeks will bring the country into a new phase. These technologies can make all sectors of the Greek economy more efficient and productive. They are in a position to revolutionise the way in which Greek producers produce, the way consumers consume and the way the Greek businesses operate.
Is Europe convinced that Greece has turned the page? There are still voices which claim the opposite.
You are right to point it out, but I think the pessimists that see the glass half-empty are becoming ever smaller in number as time passes, under the unbearable weight of a growing economic reality.
This reality says that Greece has increased employment by 320,000 jobs in two-and-a-half years, while unemployment has dropped 5.5% compared to the previous coalition Government of centre-right New Democracy and the Pan-Hellenic Socialist Movement. In addition, the budget is in order and exports and investments have increased.
Industrial production, for example, according to official statistics, has risen this month by 19% compared to last year. Consequently, the signs of economic recovery are strengthening and I think whatever solution is chosen and should be pursued, it should not undermine these growth prospects.
What could be a major obstacle to the continuation of the country’s recovery?
I think any new delay, but it does not seem that will be the case. Because all sides have understood that it is in everyone’s interest to complete the negotiations about the medium-term debt relief measures that will be implemented after the end of the programme.
We need to note that, with the Eurogroup decision, two very important steps have been taken.
Firstly, it’s the provision for the implementation of the Greek debt growth clause and its repayment. The economic logic changes. In the two previous programmes, we had to restrain the economy to service the debt, even at the cost of recession. Now the debt is serviced by growth, so we become partners with our partners in the prospect of economic growth.
The second important issue is the final paragraph of the decision, which provides for the creation of the proper reserves that will guarantee Greece’s return to the financial markets without any other conditions. The European Stability Mechanism (ESM), Europe’s financial arm and its political leaderships, guarantee the smooth financing of a country in a programme. This is a huge step.
The first successful return to the markets shows that the country is on the rise.
We have difficult and complicated negotiations for Brexit ahead. Some believe that Europeans will have one voice; others claim that there will be significant divisions. How does Greece see it?
Europe is faced with some choices that have long been leading to these deadlocks. There is a governance problem.
Europe has lost its ability to persuade people that it works in their interest. Of course, we must say that the critical political developments of the last year, a year that some looked at with curiosity and others with horror – the British Referendum, a French and a Dutch election – has come and gone without the European project being dismantled. Therefore, it has to be recognised that the EU project has more stamina than anyone could have believed.
The solution, in my opinion, lies in a progressive federalism; this is the road that Europe has to take. The progressive ones who perceive this as a priority need to consolidate their initiatives so that policies can be implemented in this direction.
At what stage is the issue of the tender for TV licenses?
Here we have made some positive steps in the last few weeks. Greece’s independent regulatory authority, the National Council for Radio and Television (NCRTV), which was set up last October, seems to be determined to make progress.
We will soon have the notice for a new TV licence auction. The first necessary steps have been taken, the number of licences has been set and there seems to be a willingness to complete this process and to close a wound for the country, which has been open for decades.
What often makes it difficult for our negotiating team or the Greek Prime Minister himself during discussions at European level is that the negotiating counterparts do not understand why there may be some special categories of citizens who do not meet their obligations.
What do you mean exactly?
Apart from the owners of the television stations, who for 30 years have been doing business without a licence, we also have the example of some lawyers who feel that their profession cannot be subject to the Electronic Transactions Act, because, as they claim, privacy issues arise from the cases they undertake. The same opinion is shared by some “high-ranking” doctors. Let’s not forget that some judges have also claimed the right not to file a wealth statement, as most civil servants do.
This is a distortion that dates back to the period when New Democracy and PASOK were in power, but I am optimistic that we will make a breakthrough.
We all have to understand this. Such wounds cannot be left open in a Greece that is trying and ultimately emerging from the crisis, slowly but surely. The current Government will not allow these wounds to remain open. We should show our partners and ourselves and send a message to society that we will not repeat these mistakes.
Recently, a TV station (Star Channel) filed a lawsuit against the State for “loss of profits” due to the loss of its television programming. Specifically, it blamed last year’s television licence auction. How do you comment on this legal move?
It is clear now. After this lawsuit and the announcements of the owners of the television stations, they [the TV channel owners] do not want a new auction to take place in order to get legal licences for their operations. And above all, they do not want to put their hands in their pockets to pay for their use of public property.
Our answer is clear. The implementation of the laws and the Constitution will not accept any exemptions. No matter how many attacks we receive, we do not back down.
As for the actions of the channels, you should also ask the Opposition parties. Can a television station, which for many years has broadcast without a legal licence, seek compensation – after 30 years – for the first auction for television licences? Can it demand the preservation of this lawlessness, taking advantage of the irresponsibility of New Democracy and PASOK which did not enforce the licencing of the channels?
A response from these political parties would also be interesting in the sense that the owners of the TV stations recently claimed to have been ‘hostages to insecurity’ for decades. What does this mean and how exactly did the two parties behave when they were in power?
They should finally take a position. Mr Mitsotakis [leader of New Democracy] and Ms Gennimata [Leader of PASOK] should not bury statements suggesting that their parties ‘kept the Press hostage’.
TV channel owners have now opened a new row with the Government when they asked the country’s Supreme Court to exempt their top executives from filing a wealth statement, citing privacy concerns.
What has been happening with the Greek justice system lately? The opposition blames you for attacking its independence.
There was a judicial decision recently which asserted that the non-payment of employees’ salaries does not constitute an unfavorable change in the employment contract. This goes beyond what we consider to be the European norm.
We are entitled to judge it, even in public. Justice representatives’ assessments are not beyond criticism.
If this is seen as an attack on the independence of the institution, we should also look at the cases of interference, as perhaps – according to press reports – we had in the past.
The opposition also accuses you of having imposed excessive taxation; that the state’s debt to individuals is huge and calls for elections to follow a different policy mix.
The elections will be held at the end of our term. Alexis Tsipras will be the first Prime Minister since the country joined the bailout programme to stay until the end of the four-year mandate. Such a development would be a signal of stability and recovery. We challenge the main Opposition party to stop focusing on nonsense and talk about the essence of politics. It should come to the table and discuss the hard core of policy and the results we bring. But because it cannot stand this debate, as the reality is clear and resounding, it brings up other issues that provoke ridicule and mockery among the Greek people.
43rd Anniversary of end of Military Dictatorship
In a message on Monday marking the toppling of the seven-year military junta in 1974, Prime Minister Alexis Tsipras said the 43rd anniversary since democracy was restored in Greece coincides with the final restoration of economic stability and the recovery of the country.
“This is a day to honour the thousands of citizens that resisted the dictatorship and our people’s struggles for popular rule, independence and social justice,” PM Tsipras said, while noting that the country’s path toward realizing these goals in the years that followed “was not always easy, nor straight.”
“In the distant 1974, the issue was national independence, popular sovereignty and social justice. This fight is ongoing, despite the setbacks of the Memoranda.
Today's anniversary is overshadowed by the jarring chords of an extreme opposition which in defiance of reality maintains that the Government is circumventing democracy.
“The extensive intertwining of powerful economic interests with centres and ‘circles’ of power, the lack of accountability and social control and, of course, the multiple repercussions of the economic crisis have raised serious obstacles, especially in recent years,” he noted.
It was now everyone’s collective duty to avoid the mistakes of the past in order to build Greece anew, he added, into a country freed of the games of major interests, petty politics and intolerance. “A Greece of democracy, productive reorganization and social solidarity. A Greece of justice,” he added.
This will require determination and a political will for major reforms and clashes with established interests, he said, “in order to restore a sense of justice to the Greek people.” He called for more active participation by citizens in decision-making centres, restoring the lost credibility of the political system and “giving content to the concept of democracy,” while noting that this was owed not only to the younger generations “but also to those that have devoted their lives to democracy and freedom in our country.”
In a message on Monday marking the toppling of the seven-year military junta in 1974, Prime Minister Alexis Tsipras said the 43rd anniversary since democracy was restored in Greece coincides with the final restoration of economic stability and the recovery of the country.
“This is a day to honour the thousands of citizens that resisted the dictatorship and our people’s struggles for popular rule, independence and social justice,” PM Tsipras said, while noting that the country’s path toward realizing these goals in the years that followed “was not always easy, nor straight.”
“In the distant 1974, the issue was national independence, popular sovereignty and social justice. This fight is ongoing, despite the setbacks of the Memoranda.
Today's anniversary is overshadowed by the jarring chords of an extreme opposition which in defiance of reality maintains that the Government is circumventing democracy.
“The extensive intertwining of powerful economic interests with centres and ‘circles’ of power, the lack of accountability and social control and, of course, the multiple repercussions of the economic crisis have raised serious obstacles, especially in recent years,” he noted.
It was now everyone’s collective duty to avoid the mistakes of the past in order to build Greece anew, he added, into a country freed of the games of major interests, petty politics and intolerance. “A Greece of democracy, productive reorganization and social solidarity. A Greece of justice,” he added.
This will require determination and a political will for major reforms and clashes with established interests, he said, “in order to restore a sense of justice to the Greek people.” He called for more active participation by citizens in decision-making centres, restoring the lost credibility of the political system and “giving content to the concept of democracy,” while noting that this was owed not only to the younger generations “but also to those that have devoted their lives to democracy and freedom in our country.”
"The most significant positive news in recent years is the steady decline in unemployment rates and the growth in full-time employment"
Prime Minister Alexis Tsipras at the Ministry of Labour
22.7.2017
The Prime Minister, Alexis Tsipras described his visit to the Ministry of Labour as a special moment, noting that it is the most crucial Ministry with regard to the outcome of the battle to tackle the crisis.
He unveiled a programme that will see the Government subsidize social security payments providing that employers switch freelance contracts with permanent ones for their employees. The programme will aim to correct the current situation where thousands of salaried employees appear to be self-employed.
In a joint press conference with Labour Minister Effi Achtsioglou, the PM said employers will be required to register their staff with the special platform of the EFKA social security fund. Those who employ uninsured staff will face strict penalties as the Government seeks to crack down on the rampant “undeclared” labour market.
The new programme will run for 12 months per employee with 350€ per month subsidized by the State. It will initially affect 40,000 employees. Employers will be obliged to keep staff on the books for a certain amount of time after the 12-month period expires.
According to the Prime Minister, the recently established EFKA fund is performing well, allaying fears and doomsday scenarios that it has already run into huge debt. “In 2015 we were handed a 1.5€ billion cash deficit… the Fund now has a surplus of approximately 150€ million.”
PM Tsipras went on to point out that social security spending increased from 780€ million in 2015 to 1.57€ billion in 2017 while in 2019 it is expected to exceed 2.5€ billion.
"My visit today may help us understand the difference between the supposed success story of the governments of New Democracy and PASOK and the real success which is leading to recovery which can be felt in people's daily lives," he said, adding that unemployment in Greece will drop by 2.5% annually in the next few years, while State programmes will help 120,000 jobless Greeks by the end of this year alone.
“The most significant positive news in recent years is the steady decline in unemployment rates and the growth in employment. This is the most important success of the Government.”
The Prime Minister talked about the effort being made to recover jobs and to build the new social State; he noted in his speech that the unemployment level fell to 21.7% at the end of April compared to 27.2% two years earlier. He said that the unemployment rate would fall by 2.5 percentage points per year over the coming years. He also said the Government will spend 100€ million on a retraining programme for some 50,000 people.
Programmes to address unemployment, all in all by the end of the year, will cover 120,000 unemployed people, he said.
“To tackle unemployment we are implementing programmes that don't waste money on middlemen and perpetual training. Over the 1/3 of the people participating in the community service programmes which provide training, are finding work after the end of the programmes and this is one of the highest rates in Europe.”
“It is no exaggeration for me to say that most important national goal is the recovery of jobs and the creation of a new social state that can respond to the needs of citizens.
“When there exists the political will, you are not afraid of conflicts with “names” with great political influence or banks which refuse to pay their fines.
We are promoting legislation which will exclude businesses that systematically break the law from any kind of State funding.
The National Insurance reform addresses the enduring lack of transparency, the irrationality and fragmentation that characterised the insurance system.”
“According to official figures, over the last period, we have seen in the private sector a 9.34% increase in the average monthly salary.
As regards the protection of employees, he said "From the first moment, we upgraded the Labour Inspectorate which is a critical authority with regard to workers' protection. We are not afraid to deal with employers who took the crisis as an opportunity to violate labour legislation."
"Soon, we will bring forward for legislation in Parliament a set of arrangements for dealing with violations of labour legislation, a comprehensive action plan to combat undeclared, under-declared work and unpaid work, a framework which will set rules in agriculture as well, putting a definitive end to repetitions of the Manolada incident.[In April 2013, farmers in Manolada on the Peloponnesos shot and wounded 28 Bangladeshi strawberry pickers when they asked to be paid. The case highlighted issues of human trafficking and the enslavement of migrant workers in Greece Ed.]
He unveiled a programme that will see the Government subsidize social security payments providing that employers switch freelance contracts with permanent ones for their employees. The programme will aim to correct the current situation where thousands of salaried employees appear to be self-employed.
In a joint press conference with Labour Minister Effi Achtsioglou, the PM said employers will be required to register their staff with the special platform of the EFKA social security fund. Those who employ uninsured staff will face strict penalties as the Government seeks to crack down on the rampant “undeclared” labour market.
The new programme will run for 12 months per employee with 350€ per month subsidized by the State. It will initially affect 40,000 employees. Employers will be obliged to keep staff on the books for a certain amount of time after the 12-month period expires.
According to the Prime Minister, the recently established EFKA fund is performing well, allaying fears and doomsday scenarios that it has already run into huge debt. “In 2015 we were handed a 1.5€ billion cash deficit… the Fund now has a surplus of approximately 150€ million.”
PM Tsipras went on to point out that social security spending increased from 780€ million in 2015 to 1.57€ billion in 2017 while in 2019 it is expected to exceed 2.5€ billion.
"My visit today may help us understand the difference between the supposed success story of the governments of New Democracy and PASOK and the real success which is leading to recovery which can be felt in people's daily lives," he said, adding that unemployment in Greece will drop by 2.5% annually in the next few years, while State programmes will help 120,000 jobless Greeks by the end of this year alone.
“The most significant positive news in recent years is the steady decline in unemployment rates and the growth in employment. This is the most important success of the Government.”
The Prime Minister talked about the effort being made to recover jobs and to build the new social State; he noted in his speech that the unemployment level fell to 21.7% at the end of April compared to 27.2% two years earlier. He said that the unemployment rate would fall by 2.5 percentage points per year over the coming years. He also said the Government will spend 100€ million on a retraining programme for some 50,000 people.
Programmes to address unemployment, all in all by the end of the year, will cover 120,000 unemployed people, he said.
“To tackle unemployment we are implementing programmes that don't waste money on middlemen and perpetual training. Over the 1/3 of the people participating in the community service programmes which provide training, are finding work after the end of the programmes and this is one of the highest rates in Europe.”
“It is no exaggeration for me to say that most important national goal is the recovery of jobs and the creation of a new social state that can respond to the needs of citizens.
“When there exists the political will, you are not afraid of conflicts with “names” with great political influence or banks which refuse to pay their fines.
We are promoting legislation which will exclude businesses that systematically break the law from any kind of State funding.
The National Insurance reform addresses the enduring lack of transparency, the irrationality and fragmentation that characterised the insurance system.”
“According to official figures, over the last period, we have seen in the private sector a 9.34% increase in the average monthly salary.
As regards the protection of employees, he said "From the first moment, we upgraded the Labour Inspectorate which is a critical authority with regard to workers' protection. We are not afraid to deal with employers who took the crisis as an opportunity to violate labour legislation."
"Soon, we will bring forward for legislation in Parliament a set of arrangements for dealing with violations of labour legislation, a comprehensive action plan to combat undeclared, under-declared work and unpaid work, a framework which will set rules in agriculture as well, putting a definitive end to repetitions of the Manolada incident.[In April 2013, farmers in Manolada on the Peloponnesos shot and wounded 28 Bangladeshi strawberry pickers when they asked to be paid. The case highlighted issues of human trafficking and the enslavement of migrant workers in Greece Ed.]
Effie Achtsioglou the Minister of Labour
“In conditions of financial stringency and the trusteeship, this Ministry is supporting as a priority the Welfare State on four pillars: the Labour Inspectorate (ΣΕΠΕ) –the Social Security Office (ΕΦΚΑ) – a revamped Farmers’ National Insurance Scheme (νέος ΟΓΑ) – the Employment Service (ΟΑΕΔ).”
Labour Minister, Effie Achtsiogloy, as part of her speech during the PM’s visit to the Ministry announced:
"On the basis of these institutional interventions, there will be a strengthening and updating of the Labour Inspectorate (ΣΕΠΕ) as the key institutional mechanism for intervention in the labour market and improving working relations."
In the area of social solidarity, she stressed that a nationwide network for social protection is being established. "This is a huge reorganization of the sector of social solidarity, which removes the clientelist relationships of the past and gives the weakest social strata the dignity they deserve in their contacts with the State."
"From the moment this Government took office, the Labour Ministry set specific key objectives: To deal with the rapid impact of the crisis, the unemployment that had jumped to a huge percentage and the humanitarian crisis that swept through Greek society in the 2010-2014 period, and to lay the foundations of the Welfare State, which historically our country has been without. An extremely difficult undertaking, because we have been called upon to make it happen not in normal circumstances, not in conditions of normality, but in conditions of strict budgetary constraints and, many times, asphyxiating supervision. I think, that with collective work and a plan, we are getting ever closer to these objectives."
"The primary central political commitment undertaken by this Government was the immediate response to the humanitarian crisis and the sharp impoverishment suffered by a large proportion of the population in the period 2010-2014. And to this commitment our Government responded with absolute consistency. With the first law that we brought to Parliament, Law 4320/2015, in early 2015, a lattice of measures was put in place to meet the pressing needs of 405,000 people: prepaid cards for basic necessities, free electricity and a rent subsidy to households that were in a precarious housing situation.
This intervention was not temporary, but has evolved into a structural programme, the Social Solidarity Income (ΚΕΑ), which more than 570,000 of our fellow citizens currently receive. In asphyxiating financial circumstances, we created a programme that is something much more than a subsistence allowance. It seeks to be the tool for impoverished people to return to a social life, - and here is the qualitative difference, - the connection of this programme with the return to work. Because, already within 2017, a significant proportion of unemployed beneficiaries of the Social Solidarity Income will be absorbed into work programmes. This is the main goal, the inclusion in work and not trapping them in poverty. It is about a huge social relief intervention and a hallmark of the reorganization of the Welfare State and of public policy in the field of social protection.
"Our second central political commitment was to make an effective intervention to reduce unemployment," said Labour Minister, expressing the view that on this front "things are going quite well".
According to ELSTAT, she said, the unemployment rate in April 2017 was 21.7%, about five percentage points down from the beginning of 2015, when this Government started its work. "And I must say that this outcome did not just happen nor was it easy. The positive data recorded in the last period are the result of a complex effort with many factors contributing; they are the result of the great effort that this Government is making to stabilize the economy; they are the result of integrated plans of programmes of work, based on labour market needs, programmes that are being implemented by the upgraded Employment Service (ΟΑΕΔ); they are, in the end, the result of both the systematic work being done to tackle undeclared work and to end a situation of widespread lawlessness and arbitrariness in the labour market, a situation that peaked in the 2010-2014 period, due not only to the complete collapse of the whole framework of labour protection, but also the policy choices of the previous Governments to tolerate the phenomena of arbitrary employer behaviour."
"And this brings me to the third central commitment: a basic commitment of our Government and of the political leadership of this Ministry was not just to create new jobs, but also to intervene in industrial relations themselves for the benefit of working people, imposing legality in the workplace, so that gradually quality jobs are taking shape. Because a strategic objective of this Government is not the achievement of a development in terms of simply numerical growth, returning to a model of development that we have seen in previous decades, a development that exacerbated social inequalities and did not respect the labour relations, but the achievement of a development, with labour placed at its core. And to meet this commitment we have been working hard and in a coordinated way from the first moment. In particular, recently, through the intensification of SEPE's interventions, we targeted undeclared, under-declared and unpaid work. Already, since the beginning of 2015 until today, trilateral conciliatory meetings have been held at the Ministry of Labour, between employers, workers and the State, in the presence of the political leadership, on more than 300 employment issues, when in the previous three years not even half that number had been held. In the vast majority of them, these meetings resulted in satisfying the demands of workers whether they related to revoking dismissals, or the payment of accrued earnings."
"From the first moment of this Government’s term of office, and despite the restrictive financial conditions, we put into operation the contingency allowance of economic support for workers, giving out more than 4€ million in the two-year period 2015-2016, (a tool that previous Governments kept inactive). At the same time, in the two-year period 2015-2016, thanks to the interventions of SEPE, more than 24€ million have been paid out of the accrued amounts owed to employees. The imposition of fines on banks for labour rights breaches, amounting to 1.9€ million, demonstrates our political will and determination to combat law-breaking. We are demonstrating that there is no more immunity, there are no “no-go areas” for control mechanisms."
"And it was precisely the combination of all of these pathogens that we have opposed over the last two and a half years and which previous political forces chose not to address, that led the public social security system to the verge of collapse. A system that we are committed to get back on its feet, making a truly titanic effort.
"The fact is that in the first stage of its operation were revealed all the mistakes and the bad management of the past. The insurance system was characterized from time immemorial by red-tape, clientelist arrangements, variations and inequalities. The utter lack of information and computerised systems and of an organized registry of insured persons had led to huge delays in the payment of pensions, with the result that in January 2015 there were piled up 160,000 retirement requests pending, while there were many cases of widespread mismanagement. We imposed rules on the system, we paid overdue payments, we closed the wounds of the past and today we are working to go to the next level to upgrade the public social security system and to recover its lost credibility. And, more significantly, a positive outlook is opening up. The reduction of unemployment and the ending of the dismantling of labour relations constitute the missing link in the connection between work and social security."
"In addition, however, to these central interventions, at the Ministry of Labour, we have concerned ourselves from the first moment also with a set of issues that remained 'unseen' to the previous Governments, such as resolving the issue of social housing, which concerns 36,000 of our fellow citizens, the substantive use of the fixed assets of the insurance funds using social benefit criteria, creating a node for information and service to citizens on labour issues, and the substantial upgrading of audits and of the framework for health and safety at work. Initiatives that may seem small, but which will have a substantial effect on the everyday life of thousands of citizens."
"From the first moment this Government took office, we set specific goals in the Labour Ministry. In the previous period, we concentrated on the first goal, social relief, flagging up, however, at the same time, the second objective, the reorganization of the Welfare State and public policy in the area of social protection. On this pillar we are now focussing with institutional interventions which we are implementing today and which we are striving for them to be the solid foundations of the Welfare State, interventions which will rolled out by 2019. In conditions of financial stringency and the trusteeship, this Ministry is supporting as a priority the Welfare State on four pillars: the Labour Inspectorate (ΣΕΠΕ) –the Social Security Office (ΕΦΚΑ) – a revamped Farmers’ National Insurance Scheme (νέος ΟΓΑ) – the Employment Service (ΟΑΕΔ). It is a great investment at work and in social protection, an investment in social cohesion, an investment in the credibility of institutions and of democracy. We hope that in the next period our efforts here will be felt in the everyday lives of citizens."
Primary Health Care Units
Speaking at a workshop about Primary Public Health Care, organized in Heraklion by the 7th Health Region of Crete, Health Minister Andreas Xanthos announced that 1,700 doctors and 1,300 ancillary workers will staff the new structure that will operate in the second half of 2017.
He said that Primary Care is one of the key objectives of the political leadership of the Ministry and the Government.
"We have got agreement with the Institutions and by August 5th we will legislate for the first Local Health Units."
"The necessary resources have been found from European funds, and funding is guaranteed for four years.
"In public health policies a new model is being applied, we are not talking about miserly management. And obviously it is not privatization, as many critics maintain."
The universal and free health coverage of the population, the provision of high quality health services, the outward looking functioning of Primary Health Care Structures and the whole person approach with the emphasis on prevention and health education in the community, are the key elements of this reform.
Germany Profits…
Germany’s Finance Ministry has published details of the profits Germany has made on loans to Greece and its debt buying programmes: €1.34bn since 2009, according to a report in the German newspaper Süddeutsche Zeitung.
The German development bank KfW has taken some €393m in interest payments on a loan of €15.2bn that it made to Athens in 2010. Between 2010 and 2012, a state debt-buying scheme by the Eurozone’s central banks brought the Bundesbank a profit of €952m. The European Central Bank collected more than €1.1 billion in 2016 in interest payments on the nearly €20 billion-worth of Greek bonds it holds.
Eurozone members had agreed to hand any profits back to the Greek central bank as a point of EU solidarity. But this pay-back operation was brought to a halt in 2015 when the SYRIZA-ANEL Government took office.
“It may be legal the way Germany deals with the crisis in Greece. It is not legitimate in the moral sense of solidarity,” the speaker for budgetary affairs in the Bundestag for the Green Party, Sven Christian Kindler said.
“ Finally the interest gained must be paid to Greece. It can not be that (German Finance Minister) Wolfgang Schaeuble wants to rehabilitate the German budget using Greek interest,” said the Greens’ EU expert in the Bundestag, Manuel Sarrazin.
IMF
The International Monetary Fund on Thursday approved in principle a $1.8 billion standby loan arrangement for Greece, making a conditional commitment to help underpin the country's long-running bailout programme for the first time in two years.
But the IMF's approval-in-principle means the Fund will not make any money available until after it receives "specific and credible assurances" from Greece's European lenders that ensure the sustainability of the country's debt. The current bailout funds are currently provided exclusively by European institutions.
“In conditions of financial stringency and the trusteeship, this Ministry is supporting as a priority the Welfare State on four pillars: the Labour Inspectorate (ΣΕΠΕ) –the Social Security Office (ΕΦΚΑ) – a revamped Farmers’ National Insurance Scheme (νέος ΟΓΑ) – the Employment Service (ΟΑΕΔ).”
Labour Minister, Effie Achtsiogloy, as part of her speech during the PM’s visit to the Ministry announced:
"On the basis of these institutional interventions, there will be a strengthening and updating of the Labour Inspectorate (ΣΕΠΕ) as the key institutional mechanism for intervention in the labour market and improving working relations."
In the area of social solidarity, she stressed that a nationwide network for social protection is being established. "This is a huge reorganization of the sector of social solidarity, which removes the clientelist relationships of the past and gives the weakest social strata the dignity they deserve in their contacts with the State."
"From the moment this Government took office, the Labour Ministry set specific key objectives: To deal with the rapid impact of the crisis, the unemployment that had jumped to a huge percentage and the humanitarian crisis that swept through Greek society in the 2010-2014 period, and to lay the foundations of the Welfare State, which historically our country has been without. An extremely difficult undertaking, because we have been called upon to make it happen not in normal circumstances, not in conditions of normality, but in conditions of strict budgetary constraints and, many times, asphyxiating supervision. I think, that with collective work and a plan, we are getting ever closer to these objectives."
"The primary central political commitment undertaken by this Government was the immediate response to the humanitarian crisis and the sharp impoverishment suffered by a large proportion of the population in the period 2010-2014. And to this commitment our Government responded with absolute consistency. With the first law that we brought to Parliament, Law 4320/2015, in early 2015, a lattice of measures was put in place to meet the pressing needs of 405,000 people: prepaid cards for basic necessities, free electricity and a rent subsidy to households that were in a precarious housing situation.
This intervention was not temporary, but has evolved into a structural programme, the Social Solidarity Income (ΚΕΑ), which more than 570,000 of our fellow citizens currently receive. In asphyxiating financial circumstances, we created a programme that is something much more than a subsistence allowance. It seeks to be the tool for impoverished people to return to a social life, - and here is the qualitative difference, - the connection of this programme with the return to work. Because, already within 2017, a significant proportion of unemployed beneficiaries of the Social Solidarity Income will be absorbed into work programmes. This is the main goal, the inclusion in work and not trapping them in poverty. It is about a huge social relief intervention and a hallmark of the reorganization of the Welfare State and of public policy in the field of social protection.
"Our second central political commitment was to make an effective intervention to reduce unemployment," said Labour Minister, expressing the view that on this front "things are going quite well".
According to ELSTAT, she said, the unemployment rate in April 2017 was 21.7%, about five percentage points down from the beginning of 2015, when this Government started its work. "And I must say that this outcome did not just happen nor was it easy. The positive data recorded in the last period are the result of a complex effort with many factors contributing; they are the result of the great effort that this Government is making to stabilize the economy; they are the result of integrated plans of programmes of work, based on labour market needs, programmes that are being implemented by the upgraded Employment Service (ΟΑΕΔ); they are, in the end, the result of both the systematic work being done to tackle undeclared work and to end a situation of widespread lawlessness and arbitrariness in the labour market, a situation that peaked in the 2010-2014 period, due not only to the complete collapse of the whole framework of labour protection, but also the policy choices of the previous Governments to tolerate the phenomena of arbitrary employer behaviour."
"And this brings me to the third central commitment: a basic commitment of our Government and of the political leadership of this Ministry was not just to create new jobs, but also to intervene in industrial relations themselves for the benefit of working people, imposing legality in the workplace, so that gradually quality jobs are taking shape. Because a strategic objective of this Government is not the achievement of a development in terms of simply numerical growth, returning to a model of development that we have seen in previous decades, a development that exacerbated social inequalities and did not respect the labour relations, but the achievement of a development, with labour placed at its core. And to meet this commitment we have been working hard and in a coordinated way from the first moment. In particular, recently, through the intensification of SEPE's interventions, we targeted undeclared, under-declared and unpaid work. Already, since the beginning of 2015 until today, trilateral conciliatory meetings have been held at the Ministry of Labour, between employers, workers and the State, in the presence of the political leadership, on more than 300 employment issues, when in the previous three years not even half that number had been held. In the vast majority of them, these meetings resulted in satisfying the demands of workers whether they related to revoking dismissals, or the payment of accrued earnings."
"From the first moment of this Government’s term of office, and despite the restrictive financial conditions, we put into operation the contingency allowance of economic support for workers, giving out more than 4€ million in the two-year period 2015-2016, (a tool that previous Governments kept inactive). At the same time, in the two-year period 2015-2016, thanks to the interventions of SEPE, more than 24€ million have been paid out of the accrued amounts owed to employees. The imposition of fines on banks for labour rights breaches, amounting to 1.9€ million, demonstrates our political will and determination to combat law-breaking. We are demonstrating that there is no more immunity, there are no “no-go areas” for control mechanisms."
"And it was precisely the combination of all of these pathogens that we have opposed over the last two and a half years and which previous political forces chose not to address, that led the public social security system to the verge of collapse. A system that we are committed to get back on its feet, making a truly titanic effort.
"The fact is that in the first stage of its operation were revealed all the mistakes and the bad management of the past. The insurance system was characterized from time immemorial by red-tape, clientelist arrangements, variations and inequalities. The utter lack of information and computerised systems and of an organized registry of insured persons had led to huge delays in the payment of pensions, with the result that in January 2015 there were piled up 160,000 retirement requests pending, while there were many cases of widespread mismanagement. We imposed rules on the system, we paid overdue payments, we closed the wounds of the past and today we are working to go to the next level to upgrade the public social security system and to recover its lost credibility. And, more significantly, a positive outlook is opening up. The reduction of unemployment and the ending of the dismantling of labour relations constitute the missing link in the connection between work and social security."
"In addition, however, to these central interventions, at the Ministry of Labour, we have concerned ourselves from the first moment also with a set of issues that remained 'unseen' to the previous Governments, such as resolving the issue of social housing, which concerns 36,000 of our fellow citizens, the substantive use of the fixed assets of the insurance funds using social benefit criteria, creating a node for information and service to citizens on labour issues, and the substantial upgrading of audits and of the framework for health and safety at work. Initiatives that may seem small, but which will have a substantial effect on the everyday life of thousands of citizens."
"From the first moment this Government took office, we set specific goals in the Labour Ministry. In the previous period, we concentrated on the first goal, social relief, flagging up, however, at the same time, the second objective, the reorganization of the Welfare State and public policy in the area of social protection. On this pillar we are now focussing with institutional interventions which we are implementing today and which we are striving for them to be the solid foundations of the Welfare State, interventions which will rolled out by 2019. In conditions of financial stringency and the trusteeship, this Ministry is supporting as a priority the Welfare State on four pillars: the Labour Inspectorate (ΣΕΠΕ) –the Social Security Office (ΕΦΚΑ) – a revamped Farmers’ National Insurance Scheme (νέος ΟΓΑ) – the Employment Service (ΟΑΕΔ). It is a great investment at work and in social protection, an investment in social cohesion, an investment in the credibility of institutions and of democracy. We hope that in the next period our efforts here will be felt in the everyday lives of citizens."
Primary Health Care Units
Speaking at a workshop about Primary Public Health Care, organized in Heraklion by the 7th Health Region of Crete, Health Minister Andreas Xanthos announced that 1,700 doctors and 1,300 ancillary workers will staff the new structure that will operate in the second half of 2017.
He said that Primary Care is one of the key objectives of the political leadership of the Ministry and the Government.
"We have got agreement with the Institutions and by August 5th we will legislate for the first Local Health Units."
"The necessary resources have been found from European funds, and funding is guaranteed for four years.
"In public health policies a new model is being applied, we are not talking about miserly management. And obviously it is not privatization, as many critics maintain."
The universal and free health coverage of the population, the provision of high quality health services, the outward looking functioning of Primary Health Care Structures and the whole person approach with the emphasis on prevention and health education in the community, are the key elements of this reform.
Germany Profits…
Germany’s Finance Ministry has published details of the profits Germany has made on loans to Greece and its debt buying programmes: €1.34bn since 2009, according to a report in the German newspaper Süddeutsche Zeitung.
The German development bank KfW has taken some €393m in interest payments on a loan of €15.2bn that it made to Athens in 2010. Between 2010 and 2012, a state debt-buying scheme by the Eurozone’s central banks brought the Bundesbank a profit of €952m. The European Central Bank collected more than €1.1 billion in 2016 in interest payments on the nearly €20 billion-worth of Greek bonds it holds.
Eurozone members had agreed to hand any profits back to the Greek central bank as a point of EU solidarity. But this pay-back operation was brought to a halt in 2015 when the SYRIZA-ANEL Government took office.
“It may be legal the way Germany deals with the crisis in Greece. It is not legitimate in the moral sense of solidarity,” the speaker for budgetary affairs in the Bundestag for the Green Party, Sven Christian Kindler said.
“ Finally the interest gained must be paid to Greece. It can not be that (German Finance Minister) Wolfgang Schaeuble wants to rehabilitate the German budget using Greek interest,” said the Greens’ EU expert in the Bundestag, Manuel Sarrazin.
IMF
The International Monetary Fund on Thursday approved in principle a $1.8 billion standby loan arrangement for Greece, making a conditional commitment to help underpin the country's long-running bailout programme for the first time in two years.
But the IMF's approval-in-principle means the Fund will not make any money available until after it receives "specific and credible assurances" from Greece's European lenders that ensure the sustainability of the country's debt. The current bailout funds are currently provided exclusively by European institutions.
“The Greek economy is improving and very soon it will return to competitive and sustainable levels in terms of its borrowing.”
8.7.2017
Speaking in Parliament on Monday, PM Alexis Tsipras defended the recent Eurogroup agreement and expressed optimism on the prospects for the economy. He attacked the Opposition who have criticized the agreement saying that they are “prophets of disaster”.
“The Greek economy is improving and very soon it will return to competitive and sustainable levels in terms of its borrowing.” “The agreement is a positive landmark towards the conclusion of the programme because it includes, for the first time, commitments not just promises about the settlement of the Greek debt.”
“The debt settlement measures will start to be implemented immediately after the conclusion of the programme.”
He also said that investors know how to read the agreement and for this reason they “throw any attempts at scaremongering in the dustbin.”
Greece’s return to the money markets would not be feasible without the debt settlement, Tsipras stated adding that in the negotiations the Government had secured lower Primary Surplus targets and had made the creditors commit to the alleviation of the debt.
He also said that the terms and conditions for a sustainable and definitive return to the money markets have been given shape adding that the Government’s plan for reducing unemployment is bearing fruit.
PM Tsipras referred to the re-building of the social state by reminding Parliament of the offset measures voted by the Government which will start to be implemented from 2019.
"Greece will not become either the Chile of Pinochet nor the Britain of Thatcher"
Referring to the economy, the Prime Minister spoke of "accessing the money markets without haste and above all not for publicity purposes".
"Our analysis is not confined to accessing the money markets. We think the country needs a plan of reconstruction with work at its core and not with the aim of crushing labour." "Greece will not become either the Chile of Pinochet nor the Britain of Thatcher". "We have brought forward an effective model of economic strength and high value with emphasis on the quality of the product and not on the reduction of production costs." The Prime Minister recalled some of the "fruits" of the programme: " In the period of Papandreou’s Government 500,000 jobs were lost, under Papademos 93,000 and under Samaras 293,000. Under SYRIZA, 230,000 jobs have been gained.
"For the first time we have a positive indicator of an increase in wages. For the first time the balance is tilting in favour of full-time employment. The proportion of flexible employment to full-time employment from being 60%-40% is 45%-55%."
"We have an economy that "is turning the page". "A fabrication of doom-mongering with dystopias and false predictions had been erected. But now … events have intervened to contradict them:
-"the Greek Government Bonds are at their lowest levels since 2009 and the Stock Market shows that it is returning to stability".
-"Moody's [the Bond Credit Rating Agency Ed.] which constitutes the most rigorous evaluation has upgraded the economy. The economy is correcting its position and soon enough will have recovered from the moment when the absence of the political factors shaped its image. The fundamental economic indicators do not reflect the current level of the bonds."
"We have positive trends of economic growth; indicators of production, employment, consumption and work are positive."
As regards the decision by the Eurogroup, Alexis Tsipras noted that " it is a convincing response to the reservations of the markets concerning the sustainability of the debt in stark contrast Mitsotakis’ view that we gave everything and got nothing."
"The facts about what we obtained from the Eurogroup are
(a) The Borrowing Requirements of the Treasury are not to exceed 15% of GDP. "We have a ceiling as to the annual financing needs of the debt which we will not exceed whatever happens."
b) As to the Primary Surpluses over the medium term, we have agreed on 2% after 2022. "Greece will be the only country in the Eurozone that will be a positive exception to the Stability Pact." "New Democracy have got a nerve talking about Primary Surpluses. New Democracy had committed the country to a Primary Surplus of 4% up to 2030."
(c)) the final quantification of the medium-term measures [“reforms” Ed]
d) "We have a locked algorithm for the reduction of the debt. Anyone who wants to can study the algorithm and calculate the reduction. The financial investors want to be able to do this and that's why they have thrown the doom-mongering in the rubbish bin."
Addressing the President of New Democracy Kyriakos Mitsotakis, he said "The people will compare your actions with our actions, our proposals with your proposals."
Responding to Mr. Mitsotakis’ reference to the "institutional crudeness" of the Government, he said "You are not some troll on social media; you are the leader of the official opposition. I was expecting you to have something of substance to say but you have a poverty of arguments about the economy. You spoke about the institutional crudeness of the Government. It is not institutional crudeness when someone makes a criticism about respected Judicial decisions. Institutional crudeness is when you talk about tax evasion and lists that you had in your drawer while offering immunity to the Big Shots, the sea of debt, the SIEMENS kickbacks that ended up in the coffers of your party. Institutional crudeness is making a gift of the Dunant Hospital to private interests but not before you took care to have members of your family treated for free or for your family members to “work” there in sinecures that required little or no work, and not before taking care to get personal or business loans borrowed and not repaid…Institutional crudeness is to turn your party into the servant of business interests.
Referring to the fight against tax evasion, Alexis Tsipras pointed out to New Democracy that "from the joy you got from the decision of the Council of State (ΣτΕ) [which stated that debts to the Greek State were constitutionally subject to a Statute of Limitations, thereby threatening to make it impossible for the Government to recover unpaid taxes from those on the Lagarde and Borgian Lists of wealthy Greeks banking abroad Ed] I understand that probably you are siding with those who want to avoid paying up". PM Tsipras announced these confirmed fines
- for fuel and tobacco smuggling: as from January 1st 2015 the fines total 711€ million. (in the previous period they were approximately 150€ million).
-on the Lagarde list, the fines are up from 26€ million in the period of Samaras to 267€ million.
-on the Borgian list: fines have reached 12,710,000€.
-from the voluntary disclosure of undisclosed income: we managed, with our approach, to get 3.7€ billion declared. We expect you to support us to collect these fines and not to rejoice that there might be a small institutional delay – because “the good lad knows another path”.
NOTES:
Unemployment
Greece's unemployment rate dropped to 21.7% in April from 22.0% in the previous month, statistics agency ELSTAT said on Thursday, but remains the Eurozone's highest. Unemployment in the 19 countries sharing the euro stood at an average of 9.3% in April.
Greece's jobless rate hit a record high of 27.9% in September 2013. Greece's economy expanded in the first three months of 2017. Economic output grew 0.4% compared to the final quarter of 2016.
The seasonally adjusted data showed that the number of officially unemployed people reached 1.04 million. The unemployment rate among young people aged 15 to 24 years dropped to 45.5% from 49.9% in April last year.
Graduate Unemployment
A recent study by the Foundation for Economic and Industrial Research (IOBE) on the situation of university graduates in Greece found that 36% of those who received their degrees after 2011 are currently unemployed and 57% are earning salaries ranging between 400€ and 800€ a month.
Overall, the percentage of university or college graduates who have jobs is the lowest in the European Union at 65%. This percentage was double in 2016 compared with 2011.
Tax Arrears
Greece’s tax office has had to resort to confiscations, auctions and criminal prosecutions in order to collect outstanding debts to the State which were almost 4.75€ billion in the first five months of this year.
According to Independent Public Revenue Authority (AADE) data, 91,104 seizures from bank accounts of wages, pensions and savings have been made since the beginning of the year. 24,059 seizures were made in May.
“The debt settlement measures will start to be implemented immediately after the conclusion of the programme.”
He also said that investors know how to read the agreement and for this reason they “throw any attempts at scaremongering in the dustbin.”
Greece’s return to the money markets would not be feasible without the debt settlement, Tsipras stated adding that in the negotiations the Government had secured lower Primary Surplus targets and had made the creditors commit to the alleviation of the debt.
He also said that the terms and conditions for a sustainable and definitive return to the money markets have been given shape adding that the Government’s plan for reducing unemployment is bearing fruit.
PM Tsipras referred to the re-building of the social state by reminding Parliament of the offset measures voted by the Government which will start to be implemented from 2019.
"Greece will not become either the Chile of Pinochet nor the Britain of Thatcher"
Referring to the economy, the Prime Minister spoke of "accessing the money markets without haste and above all not for publicity purposes".
"Our analysis is not confined to accessing the money markets. We think the country needs a plan of reconstruction with work at its core and not with the aim of crushing labour." "Greece will not become either the Chile of Pinochet nor the Britain of Thatcher". "We have brought forward an effective model of economic strength and high value with emphasis on the quality of the product and not on the reduction of production costs." The Prime Minister recalled some of the "fruits" of the programme: " In the period of Papandreou’s Government 500,000 jobs were lost, under Papademos 93,000 and under Samaras 293,000. Under SYRIZA, 230,000 jobs have been gained.
"For the first time we have a positive indicator of an increase in wages. For the first time the balance is tilting in favour of full-time employment. The proportion of flexible employment to full-time employment from being 60%-40% is 45%-55%."
"We have an economy that "is turning the page". "A fabrication of doom-mongering with dystopias and false predictions had been erected. But now … events have intervened to contradict them:
-"the Greek Government Bonds are at their lowest levels since 2009 and the Stock Market shows that it is returning to stability".
-"Moody's [the Bond Credit Rating Agency Ed.] which constitutes the most rigorous evaluation has upgraded the economy. The economy is correcting its position and soon enough will have recovered from the moment when the absence of the political factors shaped its image. The fundamental economic indicators do not reflect the current level of the bonds."
"We have positive trends of economic growth; indicators of production, employment, consumption and work are positive."
As regards the decision by the Eurogroup, Alexis Tsipras noted that " it is a convincing response to the reservations of the markets concerning the sustainability of the debt in stark contrast Mitsotakis’ view that we gave everything and got nothing."
"The facts about what we obtained from the Eurogroup are
(a) The Borrowing Requirements of the Treasury are not to exceed 15% of GDP. "We have a ceiling as to the annual financing needs of the debt which we will not exceed whatever happens."
b) As to the Primary Surpluses over the medium term, we have agreed on 2% after 2022. "Greece will be the only country in the Eurozone that will be a positive exception to the Stability Pact." "New Democracy have got a nerve talking about Primary Surpluses. New Democracy had committed the country to a Primary Surplus of 4% up to 2030."
(c)) the final quantification of the medium-term measures [“reforms” Ed]
d) "We have a locked algorithm for the reduction of the debt. Anyone who wants to can study the algorithm and calculate the reduction. The financial investors want to be able to do this and that's why they have thrown the doom-mongering in the rubbish bin."
Addressing the President of New Democracy Kyriakos Mitsotakis, he said "The people will compare your actions with our actions, our proposals with your proposals."
Responding to Mr. Mitsotakis’ reference to the "institutional crudeness" of the Government, he said "You are not some troll on social media; you are the leader of the official opposition. I was expecting you to have something of substance to say but you have a poverty of arguments about the economy. You spoke about the institutional crudeness of the Government. It is not institutional crudeness when someone makes a criticism about respected Judicial decisions. Institutional crudeness is when you talk about tax evasion and lists that you had in your drawer while offering immunity to the Big Shots, the sea of debt, the SIEMENS kickbacks that ended up in the coffers of your party. Institutional crudeness is making a gift of the Dunant Hospital to private interests but not before you took care to have members of your family treated for free or for your family members to “work” there in sinecures that required little or no work, and not before taking care to get personal or business loans borrowed and not repaid…Institutional crudeness is to turn your party into the servant of business interests.
Referring to the fight against tax evasion, Alexis Tsipras pointed out to New Democracy that "from the joy you got from the decision of the Council of State (ΣτΕ) [which stated that debts to the Greek State were constitutionally subject to a Statute of Limitations, thereby threatening to make it impossible for the Government to recover unpaid taxes from those on the Lagarde and Borgian Lists of wealthy Greeks banking abroad Ed] I understand that probably you are siding with those who want to avoid paying up". PM Tsipras announced these confirmed fines
- for fuel and tobacco smuggling: as from January 1st 2015 the fines total 711€ million. (in the previous period they were approximately 150€ million).
-on the Lagarde list, the fines are up from 26€ million in the period of Samaras to 267€ million.
-on the Borgian list: fines have reached 12,710,000€.
-from the voluntary disclosure of undisclosed income: we managed, with our approach, to get 3.7€ billion declared. We expect you to support us to collect these fines and not to rejoice that there might be a small institutional delay – because “the good lad knows another path”.
NOTES:
Unemployment
Greece's unemployment rate dropped to 21.7% in April from 22.0% in the previous month, statistics agency ELSTAT said on Thursday, but remains the Eurozone's highest. Unemployment in the 19 countries sharing the euro stood at an average of 9.3% in April.
Greece's jobless rate hit a record high of 27.9% in September 2013. Greece's economy expanded in the first three months of 2017. Economic output grew 0.4% compared to the final quarter of 2016.
The seasonally adjusted data showed that the number of officially unemployed people reached 1.04 million. The unemployment rate among young people aged 15 to 24 years dropped to 45.5% from 49.9% in April last year.
Graduate Unemployment
A recent study by the Foundation for Economic and Industrial Research (IOBE) on the situation of university graduates in Greece found that 36% of those who received their degrees after 2011 are currently unemployed and 57% are earning salaries ranging between 400€ and 800€ a month.
Overall, the percentage of university or college graduates who have jobs is the lowest in the European Union at 65%. This percentage was double in 2016 compared with 2011.
Tax Arrears
Greece’s tax office has had to resort to confiscations, auctions and criminal prosecutions in order to collect outstanding debts to the State which were almost 4.75€ billion in the first five months of this year.
According to Independent Public Revenue Authority (AADE) data, 91,104 seizures from bank accounts of wages, pensions and savings have been made since the beginning of the year. 24,059 seizures were made in May.
"We will win the battle for the public health system"
PM Tsipras at the Ministry of Health
"We will win the battle for the public health system," stressed the Prime Minister and he announced recruitment and the establishment of new positions at health units.
For Health to stand on its own feet was and still is one of the key priorities of Government policy.
"It is a Herculean struggle, in very difficult circumstances, which despite that has already yielded excellent results. However, it is not feasible to have completely transformed the image of public hospitals."
The Prime Minister said he knows that the picture isn't pleasant and that there is a lot more to be done. "Both the leadership of the Ministry of Health and the medical, nursing, paramedical and other hospital staff are waging a great battle, a difficult struggle to put the public hospitals back on their feet. And this fight we will support as much as we can and I believe that we will win. "
The Prime Minister referred to the Government's priorities for public health. These are “the universal access of the population to health services and health coverage for uninsured citizens, the strengthening of the public health system with resources and staff and finally, to eliminate chronic distortions and deal with the phenomena of waste and corruption.”
"The state of Public Health, when we took office in 2015 was beyond critical. It was on the verge of collapse. Not from being weakened by obligations of the Memoranda nor as a result of either incompetence or indifference. "It had been consciously targeted by choices of an ideological nature to open the sector to private interests.”
"Long before the crisis, Health was a privileged space for squandering resources, for the temptation of overpricing medicines and supplies, and for dirty dealings. A long-term pillaging of the public interest on an outrageous scale, with the national insurance funds and the State budget as the prime victims.”
He stressed that despite the dramatic cuts, imposed on the health sector, by the Memoranda, "this jamboree that continued as normal up until January 2015. He said that the objective of the Memorandum cuts in the period 2010-2014 wasn't to deal with the lack of transparency and the vested interests, but it was the level of health services which were squeezed even more. "The business interests and corruption remained untouched, but the staff shortages and lack of basic materials proliferated, the suffering of patients and their families grew, our hospitals were driven to the brink of bankruptcy and operational collapse.”
" Changes have been promoted in matters of private contracts in security, cleaning and catering, with significant economic benefits for the functioning of hospitals and substantial savings for the public purse.”
The Prime Minister stated that a systematic effort has been started and is on-going to support the National Health Service with the necessary staff. He also stressed that in the framework of the new medium-term 2015-2018 plan, the operating costs of hospitals and Primary Health Care units have been cumulatively supported with over 600€ million.
At the same time, the Prime Minister said that there is underway in Parliament an investigation process of large health scandals, scandals involving the well-known case of KEELPNO, the bankruptcy and disposal of the Dunant hospital, the widespread bribery by Novartis.
He noted that the revelations “indicate the impoverishment and the defilement of an entire political system that had turned the public health service into a field of interest for making profit and squandering public money.”
“The immediate goal is, by the end of 2017, for 239 Health Units in 80 areas of the country to be up and running.” “In the next period there will be faster steps in order to secure a Public Health System that is suited to a normal European country.
After meeting with Alexis Tsipras, during the PM’s visit to his Ministry, Health Minister Andreas Xanthos said that this Government, when it took over, had said it would do three major things in Health.
-It said it would address the issue of the exclusion from the National Health Service of millions of uninsured citizens. This it has done with absolute consistency.
-The second central political commitment was that the public health system would be supported as an absolute priority. Every citizen is gradually coming to realize that this has been implemented or is in hand.
-The third main political commitment was that we would raise the ethical level of the Health system, with interventions of consolidation, control, institutional reorganization and reduction of well- known vast problems of waste and corruption and the exploitation of the patient.”
The Minister said that with all the interventions that have been made, and with the related Inquiry into the Health Scandals at the forefront, the Government has given the political signal that there will be no more immunity, no more political cover-ups and no more tolerance of the corrupt policies of the previous period.
"We will win the battle for the public health system," stressed the Prime Minister and he announced recruitment and the establishment of new positions at health units.
For Health to stand on its own feet was and still is one of the key priorities of Government policy.
"It is a Herculean struggle, in very difficult circumstances, which despite that has already yielded excellent results. However, it is not feasible to have completely transformed the image of public hospitals."
The Prime Minister said he knows that the picture isn't pleasant and that there is a lot more to be done. "Both the leadership of the Ministry of Health and the medical, nursing, paramedical and other hospital staff are waging a great battle, a difficult struggle to put the public hospitals back on their feet. And this fight we will support as much as we can and I believe that we will win. "
The Prime Minister referred to the Government's priorities for public health. These are “the universal access of the population to health services and health coverage for uninsured citizens, the strengthening of the public health system with resources and staff and finally, to eliminate chronic distortions and deal with the phenomena of waste and corruption.”
"The state of Public Health, when we took office in 2015 was beyond critical. It was on the verge of collapse. Not from being weakened by obligations of the Memoranda nor as a result of either incompetence or indifference. "It had been consciously targeted by choices of an ideological nature to open the sector to private interests.”
"Long before the crisis, Health was a privileged space for squandering resources, for the temptation of overpricing medicines and supplies, and for dirty dealings. A long-term pillaging of the public interest on an outrageous scale, with the national insurance funds and the State budget as the prime victims.”
He stressed that despite the dramatic cuts, imposed on the health sector, by the Memoranda, "this jamboree that continued as normal up until January 2015. He said that the objective of the Memorandum cuts in the period 2010-2014 wasn't to deal with the lack of transparency and the vested interests, but it was the level of health services which were squeezed even more. "The business interests and corruption remained untouched, but the staff shortages and lack of basic materials proliferated, the suffering of patients and their families grew, our hospitals were driven to the brink of bankruptcy and operational collapse.”
" Changes have been promoted in matters of private contracts in security, cleaning and catering, with significant economic benefits for the functioning of hospitals and substantial savings for the public purse.”
The Prime Minister stated that a systematic effort has been started and is on-going to support the National Health Service with the necessary staff. He also stressed that in the framework of the new medium-term 2015-2018 plan, the operating costs of hospitals and Primary Health Care units have been cumulatively supported with over 600€ million.
At the same time, the Prime Minister said that there is underway in Parliament an investigation process of large health scandals, scandals involving the well-known case of KEELPNO, the bankruptcy and disposal of the Dunant hospital, the widespread bribery by Novartis.
He noted that the revelations “indicate the impoverishment and the defilement of an entire political system that had turned the public health service into a field of interest for making profit and squandering public money.”
“The immediate goal is, by the end of 2017, for 239 Health Units in 80 areas of the country to be up and running.” “In the next period there will be faster steps in order to secure a Public Health System that is suited to a normal European country.
After meeting with Alexis Tsipras, during the PM’s visit to his Ministry, Health Minister Andreas Xanthos said that this Government, when it took over, had said it would do three major things in Health.
-It said it would address the issue of the exclusion from the National Health Service of millions of uninsured citizens. This it has done with absolute consistency.
-The second central political commitment was that the public health system would be supported as an absolute priority. Every citizen is gradually coming to realize that this has been implemented or is in hand.
-The third main political commitment was that we would raise the ethical level of the Health system, with interventions of consolidation, control, institutional reorganization and reduction of well- known vast problems of waste and corruption and the exploitation of the patient.”
The Minister said that with all the interventions that have been made, and with the related Inquiry into the Health Scandals at the forefront, the Government has given the political signal that there will be no more immunity, no more political cover-ups and no more tolerance of the corrupt policies of the previous period.
Finance Minister Tsakalotos takes on critics
The Memorandum records the obligation to “de-politicise” the state sector, moving away from a politicisation “that existed in a bad sense, and it is the reason the Public Enterprises and Organizations (ΔΕΚΟ) have got to where they are". “This “dishwater” of favouritism will stop,” said Minister Tsakalotos.
Responding to the criticisms of New Democracy and the Democratic Coalition MPs, who spoke "about the selling-off of public property by a left-wing Government," Minister Tsakalotos argued that the agreement with Greece’s creditors had nothing to do with New Democracy’s previous policy choices: with regard to the Hellenic Republic Asset Development Fund S.A. (ΤΑΙΠΕΔ), "the difference is that you proposed a Fund just for privatisation, while we are creating a Fund that will also deal with regional and sectoral policy,which will include both privatisation and the utilisation of public property for the social good."
"We went with this compromise to the Greek people, and it is clear that if we had not had that pressure from the creditors, this Fund would not be in our programme. We neither celebrate neither are we overjoyed. " He stressed the Fund won't get its income just from the privatisations, but also from other ways of utilising public property. From these revenues, half will go to the creditors and the rest will be for investment and development.
"The Fund will work independently, and no Minister will be able to make it their own fiefdom. It will operate according to criteria of merit." He added that the Government's strategy is to cut political ties and to find ways for any business included in the Fund to develop and grow. In contrast, he said, "you had no plan for the Public Enterprises and Organizations (ΔΕΚΟ)."
"The Government's Strategy is to finish with the debt and to have public enterprises. I don't think you wanted to negotiate this solution. And the Public Sector against which your leader makes these attacks, is not to blame. We will protect this Public Sector and this is the huge difference between us that you can't hide."
The Memorandum records the obligation to “de-politicise” the state sector, moving away from a politicisation “that existed in a bad sense, and it is the reason the Public Enterprises and Organizations (ΔΕΚΟ) have got to where they are". “This “dishwater” of favouritism will stop,” said Minister Tsakalotos.
Responding to the criticisms of New Democracy and the Democratic Coalition MPs, who spoke "about the selling-off of public property by a left-wing Government," Minister Tsakalotos argued that the agreement with Greece’s creditors had nothing to do with New Democracy’s previous policy choices: with regard to the Hellenic Republic Asset Development Fund S.A. (ΤΑΙΠΕΔ), "the difference is that you proposed a Fund just for privatisation, while we are creating a Fund that will also deal with regional and sectoral policy,which will include both privatisation and the utilisation of public property for the social good."
"We went with this compromise to the Greek people, and it is clear that if we had not had that pressure from the creditors, this Fund would not be in our programme. We neither celebrate neither are we overjoyed. " He stressed the Fund won't get its income just from the privatisations, but also from other ways of utilising public property. From these revenues, half will go to the creditors and the rest will be for investment and development.
"The Fund will work independently, and no Minister will be able to make it their own fiefdom. It will operate according to criteria of merit." He added that the Government's strategy is to cut political ties and to find ways for any business included in the Fund to develop and grow. In contrast, he said, "you had no plan for the Public Enterprises and Organizations (ΔΕΚΟ)."
"The Government's Strategy is to finish with the debt and to have public enterprises. I don't think you wanted to negotiate this solution. And the Public Sector against which your leader makes these attacks, is not to blame. We will protect this Public Sector and this is the huge difference between us that you can't hide."
“The reforms and macroeconomic stability will play the crucial role.”
At a conference organised by the Economist magazine in Attica on Wednesday, representing the Greek Government, Alternate Finance Minister, Giorgos Chouliarakis said that cutting red tape, exiting the supervision and speeding up privatizations are of the utmost importance. He also spoke of the need to communicate the results of the reforms more effectively in order to attract investment.
On the issue of Quantitative Easing, the Minister said that remains a target but it is not essential in order to tap the markets. “It is the implementation of the reforms and macroeconomic stability that will play the crucial role.”
Mr. Chouliarakis also offered some insight on how the Government plans to increase revenues without stifling growth. “We need to do more regarding redistribution and the management of tax revenue in order to make the budget more growth-friendly.”
Touching upon the controversial issue of Greek debt relief, the Minister said “we all knew that the debt relief measures would be clarified towards the end of the programme”.
Speaking at the same event, the European Commission's mission chief to Greece, Declan Costello, complemented Greece on exceeding the fiscal targets for 2016 and said he firmly believed the country has the opportunity to successfully conclude the programme as long as it is committed to its targets.
POVERTY
Poverty data from the Hellenic Statistical Authority (ELSTAT) illustrate the significance of pensions when it comes to containing poverty risk in Greece, and the protection pensions provide for the retired when compared with other social groups such as the unemployed or women.
Social benefits in Greece contribute just four percentage points toward helping reduce the poverty risk, while pensions contribute 27.7 percentage points, from a total of 31.7 percent for all social handouts.
ELSTAT data show that 35.6% of the Greek population was at risk of poverty last year, marginally lower than in 2015 (35.7%).
The poverty line was set at an annual income of 4,500€ per person and 9,450€ for a four-member family in 2016. The poverty risk for people aged up to 17 amounts to 26.3% (down 0.3% from 2015), meaning that more than one in four Greek children is classified as poor. The poverty risk for over-65s was at 12.4% last year (down 1.3% from the year before).
There was a 1.3-percentage point increase in the rate of women at risk of poverty to 12.3%, while that for the unemployed rose 2.3 percentage points to 47.1% and of households with two adults and three or more dependent children 2.4 percentage points to 32%.
At a conference organised by the Economist magazine in Attica on Wednesday, representing the Greek Government, Alternate Finance Minister, Giorgos Chouliarakis said that cutting red tape, exiting the supervision and speeding up privatizations are of the utmost importance. He also spoke of the need to communicate the results of the reforms more effectively in order to attract investment.
On the issue of Quantitative Easing, the Minister said that remains a target but it is not essential in order to tap the markets. “It is the implementation of the reforms and macroeconomic stability that will play the crucial role.”
Mr. Chouliarakis also offered some insight on how the Government plans to increase revenues without stifling growth. “We need to do more regarding redistribution and the management of tax revenue in order to make the budget more growth-friendly.”
Touching upon the controversial issue of Greek debt relief, the Minister said “we all knew that the debt relief measures would be clarified towards the end of the programme”.
Speaking at the same event, the European Commission's mission chief to Greece, Declan Costello, complemented Greece on exceeding the fiscal targets for 2016 and said he firmly believed the country has the opportunity to successfully conclude the programme as long as it is committed to its targets.
POVERTY
Poverty data from the Hellenic Statistical Authority (ELSTAT) illustrate the significance of pensions when it comes to containing poverty risk in Greece, and the protection pensions provide for the retired when compared with other social groups such as the unemployed or women.
Social benefits in Greece contribute just four percentage points toward helping reduce the poverty risk, while pensions contribute 27.7 percentage points, from a total of 31.7 percent for all social handouts.
ELSTAT data show that 35.6% of the Greek population was at risk of poverty last year, marginally lower than in 2015 (35.7%).
The poverty line was set at an annual income of 4,500€ per person and 9,450€ for a four-member family in 2016. The poverty risk for people aged up to 17 amounts to 26.3% (down 0.3% from 2015), meaning that more than one in four Greek children is classified as poor. The poverty risk for over-65s was at 12.4% last year (down 1.3% from the year before).
There was a 1.3-percentage point increase in the rate of women at risk of poverty to 12.3%, while that for the unemployed rose 2.3 percentage points to 47.1% and of households with two adults and three or more dependent children 2.4 percentage points to 32%.
“a clear corridor to exit the crisis and the Memoranda has opened up with the Eurogroup's decision.”
On Wednesday Prime Minister Alexis Tsipras chaired a cabinet meeting to discuss the results of the Eurogroup meeting and the Government’s work over the next few weeks.
PM Tsipras argued that “a clear corridor to exit the crisis and the Memoranda has opened up with the Eurogroup's decision.” However, “we must not relax”, he told Ministers.
PM Tsipras argued that “a clear corridor to exit the crisis and the Memoranda has opened up with the Eurogroup's decision.” However, “we must not relax”, he told Ministers.
PM Tsipras in Cabinet
He explained why the agreement reached with creditors to conclude the Second Assessment meets the targets the Government had set beforehand. He said one of the most important aspects of the agreement is that it clarifies the mid-term measures to address the country’s debt after the end of the programme.
He noted that the agreement incorporated a French proposal for a growth clause to be factored into decisions for debt relief while a commitment was expressed to assist Greece in boosting growth and establishing a new Development Bank. The agreement commits Greece’s EU partners to the successful conclusion of the programme in August 2018 and ensures support for Greece’s return to the bond markets.
The PM urged Ministers to step up their efforts and keep working hard for Greece’s return to the money markets and the end of the bailout programme. He added that regardless of what critics say, the result of the agreement reached with creditors will be judged by the number of investors in Greece and the cost of the country’s bonds.
The Greek PM cautioned cabinet members that there was no room for complacency and that efforts had to intensify. He criticised opposition parties for pointing the finger at the SYRIZA-ANEL coalition Government, despite the fact that New Democracy and PASOK Governments had led Greece to economic catastrophe. “We still have not managed to make up all the lost ground of the catastrophic 2010-2015 period”.
Addressing the nation last Friday, PM Tsipras said Greece got what it wanted from the Institutions, which was an agreement that will point the way for the country’s exit from supervision.
“The road is now open for a return to the money markets, for the definitive end, one year from now, of the aid programmes and the Memoranda accompanying them,” he said. Alexis Tsipras said Thursday was a “good day for Greece,” noting the Government had “mobilized its alliances and common sense in Europe”. “We got what we wanted, but also what we deserved,” he continued, adding that this is the first time since the difficult compromise of July 2015 when “we feel vindicated.” He then expressed his satisfaction with the Government’s negotiating line : the Government had been right not to take what it was offered three weeks earlier.
He mentioned the main elements of the deal, noting the most important of all was the commitment included in the Eurogroup statement concerning the pledge to “end the Memoranda” in August 2018.
“After yesterday’s development, a clear road opens ahead of us for an exit [from the programme],” he said, adding he is aware of the difficulties and sacrifices of the Greek people all these years, noting however it is “one thing to endure without a ray of light and another to see before you the road towards the exit.”
Describing as the targets for the next phase for the country, he named fair growth for all, employment and egalitarianism. “Now is not the time for complacency, for rest, but for determination,” he said.
“Now is the time to push for the great changes that the Greek economy and society needs, to leave behind the Greece of unreliability, corruption, clientelism, tax evasion, scandals large and small.”
"This sends a signal out abroad, to investors and to the markets that they can trust Greece again. Trust has been put in Greece and that trust is very strong. However the signal is also for here at home and that signal must be even stronger. Yes we can. We can stand on our own two feet, by our own strength, to regain our sovereignty and our future. We can and we will succeed."
In an interview on Saturday,Thomas Wieser, the head of the Euro Working Group, said “Greece could return to the markets soon […] subject to proper handling and good economic policy”. He also said he expects talks on debt relief measures to start in mid-2018. “There’s political will to look at the framework of relief at the end of the programme and if it is necessary to provide the agreed relief.”
He explained why the agreement reached with creditors to conclude the Second Assessment meets the targets the Government had set beforehand. He said one of the most important aspects of the agreement is that it clarifies the mid-term measures to address the country’s debt after the end of the programme.
He noted that the agreement incorporated a French proposal for a growth clause to be factored into decisions for debt relief while a commitment was expressed to assist Greece in boosting growth and establishing a new Development Bank. The agreement commits Greece’s EU partners to the successful conclusion of the programme in August 2018 and ensures support for Greece’s return to the bond markets.
The PM urged Ministers to step up their efforts and keep working hard for Greece’s return to the money markets and the end of the bailout programme. He added that regardless of what critics say, the result of the agreement reached with creditors will be judged by the number of investors in Greece and the cost of the country’s bonds.
The Greek PM cautioned cabinet members that there was no room for complacency and that efforts had to intensify. He criticised opposition parties for pointing the finger at the SYRIZA-ANEL coalition Government, despite the fact that New Democracy and PASOK Governments had led Greece to economic catastrophe. “We still have not managed to make up all the lost ground of the catastrophic 2010-2015 period”.
Addressing the nation last Friday, PM Tsipras said Greece got what it wanted from the Institutions, which was an agreement that will point the way for the country’s exit from supervision.
“The road is now open for a return to the money markets, for the definitive end, one year from now, of the aid programmes and the Memoranda accompanying them,” he said. Alexis Tsipras said Thursday was a “good day for Greece,” noting the Government had “mobilized its alliances and common sense in Europe”. “We got what we wanted, but also what we deserved,” he continued, adding that this is the first time since the difficult compromise of July 2015 when “we feel vindicated.” He then expressed his satisfaction with the Government’s negotiating line : the Government had been right not to take what it was offered three weeks earlier.
He mentioned the main elements of the deal, noting the most important of all was the commitment included in the Eurogroup statement concerning the pledge to “end the Memoranda” in August 2018.
“After yesterday’s development, a clear road opens ahead of us for an exit [from the programme],” he said, adding he is aware of the difficulties and sacrifices of the Greek people all these years, noting however it is “one thing to endure without a ray of light and another to see before you the road towards the exit.”
Describing as the targets for the next phase for the country, he named fair growth for all, employment and egalitarianism. “Now is not the time for complacency, for rest, but for determination,” he said.
“Now is the time to push for the great changes that the Greek economy and society needs, to leave behind the Greece of unreliability, corruption, clientelism, tax evasion, scandals large and small.”
"This sends a signal out abroad, to investors and to the markets that they can trust Greece again. Trust has been put in Greece and that trust is very strong. However the signal is also for here at home and that signal must be even stronger. Yes we can. We can stand on our own two feet, by our own strength, to regain our sovereignty and our future. We can and we will succeed."
In an interview on Saturday,Thomas Wieser, the head of the Euro Working Group, said “Greece could return to the markets soon […] subject to proper handling and good economic policy”. He also said he expects talks on debt relief measures to start in mid-2018. “There’s political will to look at the framework of relief at the end of the programme and if it is necessary to provide the agreed relief.”
Greece and China
On Sunday it was reported that Greece has vetoed an EU condemnation of China’s human rights record at the UN. Greece refused to endorse an EU statement criticising the crackdown on activists and dissidents under the Chinese president, Xi Jinping. The statement was due to be submitted to the UN’s human rights council in Geneva last Thursday.
“We acted from a position of principle,” an official at the Greek Foreign Ministry told reporters on Sunday. “There is an upcoming dialogue between the EU and China on human rights and we think that could be a more efficient and constructive way of delivering better results.”
"Greece's position is that unproductive and in many cases, selective criticism against specific countries does not facilitate the promotion of human rights in these states, nor the development of their relation with the EU."
Human Rights Groups including Amnesty International said it was the first time the EU had failed to make such a statement at the UN.
Despite modest improvements in some areas, Beijing has faced criticism for what Human Rights Watch has described as “the Government’s systematic efforts to silence independent civil society voices”.
China and some European countries have a different criteria for the evaluation of human rights, Chang Jian, director of the Center for the Study of Human Rights in Nankai University, told the official Chinese Government Foreign Affairs newspaper The Global Times on Sunday. "China pays more attention to people's survival and development rights, while European or Western countries focus more on citizens' political rights and freedoms."
The Greek foreign ministry spokesperson said that "during the formulation of the common statement there were also other countries that expressed similar reservations" and that “Greece participates on an equal footing in establishing the EU's common foreign policy”.
It also underscores the EU's awkward ties with China, its second-largest trade partner, diplomats said.
Brussels has welcomed Beijing as an ally against U.S. President Donald Trump in the fight against climate change and trade protectionism. But as business ties grow, the bloc is struggling to speak out against a Chinese Government crackdown on human rights lawyers and other activists since 2015.
On Sunday it was reported that Greece has vetoed an EU condemnation of China’s human rights record at the UN. Greece refused to endorse an EU statement criticising the crackdown on activists and dissidents under the Chinese president, Xi Jinping. The statement was due to be submitted to the UN’s human rights council in Geneva last Thursday.
“We acted from a position of principle,” an official at the Greek Foreign Ministry told reporters on Sunday. “There is an upcoming dialogue between the EU and China on human rights and we think that could be a more efficient and constructive way of delivering better results.”
"Greece's position is that unproductive and in many cases, selective criticism against specific countries does not facilitate the promotion of human rights in these states, nor the development of their relation with the EU."
Human Rights Groups including Amnesty International said it was the first time the EU had failed to make such a statement at the UN.
Despite modest improvements in some areas, Beijing has faced criticism for what Human Rights Watch has described as “the Government’s systematic efforts to silence independent civil society voices”.
China and some European countries have a different criteria for the evaluation of human rights, Chang Jian, director of the Center for the Study of Human Rights in Nankai University, told the official Chinese Government Foreign Affairs newspaper The Global Times on Sunday. "China pays more attention to people's survival and development rights, while European or Western countries focus more on citizens' political rights and freedoms."
The Greek foreign ministry spokesperson said that "during the formulation of the common statement there were also other countries that expressed similar reservations" and that “Greece participates on an equal footing in establishing the EU's common foreign policy”.
It also underscores the EU's awkward ties with China, its second-largest trade partner, diplomats said.
Brussels has welcomed Beijing as an ally against U.S. President Donald Trump in the fight against climate change and trade protectionism. But as business ties grow, the bloc is struggling to speak out against a Chinese Government crackdown on human rights lawyers and other activists since 2015.
Greece and Turkey
“The relations of trust and cooperation between Greece and Turkey can only benefit the peoples of both countries,” PM Tsipras said on Monday, welcoming Turkish Prime Minister Binali Yildirim to Athens, adding that people should support their neighbors in hard times, something that both countries had faced in the past year.
“I look forward to the opportunity to face challenges in a constructive way in order to provide solutions, I am looking forward to the opportunity to approach the issues in a positive way,” he said.
“We are neighbours, we share the same fate and we have to face the issues with calmness,” said the Turkish Prime Minister. He also said there should be a positive way of dealing with issues without prejudice or misunderstandings.
“We have a saying in Turkish, that the neighbour needs even the ash of the wood his neighbour is burning. We need each other and on everything we depend on each other,” PM Yildirim said.
PM Tsipras said “The Aegean must remain a sea of peace and stability”
In the joint press conference after their meeting, the Greek PM said that Turkish provocations in the Aegean are not helping the building of good relations. He was referring to the frequent Turkish aircraft violations of Greek airspace. To that, PM Yildirim replied that Greek fighter jets violate Turkish airspace as well.
Alexis Tsipras spoke of the importance of a “positive agenda” between the two countries in areas such as energy, transport, counter-terrorism and the refugee-migration crisis. He stressed that the Turkish provocations do not help in that direction.
However, the Greek PM said, Greece supports Turkey’s accession to the European Union and good neighbourly relations and mutual respect can contribute to the country’s quicker inclusion in the EU.
Turkish Prime Minister Binali Yildirim said that Turkey respects Greece’s decision not to extradite eight soldiers who fled to Greece after last July’s attempted coup. “We would like Greece to extradite those who clearly staged a coup against our nation. However, we respect the judiciary’s decision, and we do not want these putschists to strike a blow at Turkish-Greek relations.”
Mr.Tsipras added that they [the soldiers] are not welcome in Greece, while stressing that his is a political stance. The issue of the eight Turkish soldiers is a matter for the Greek Judiciary and its decisions must be fully respected, PM Tsipras said.
Henry Dunant Hospital Scandal
The Parliamentary Commission of Inquiry into Health Scandals this week heard how leaders and top executives of the two political parties bankrupted the hospital and set up a clientelist State
That New Democracy and PASOK for decades set themselves up as the pinnacle of state patronage and of the system of corruption and that was one of the major reasons that ultimately led to the country’s bankruptcy is finally being demonstrated by the case of the Henry Dunant Hospital scandal.
After the disclosure of the 17,000 "free" hospital admissions, it was revealed to the Parliamentary Select Committee on Health that the hospital was used for years for rewarding the clan loyalties of ND and PASOK, on many occasions and unnecessarily.
Mitsotakis, Bakoyannis, Samaras, Simitis, Venizelos, Protopapas, are just some of those “involved” among the more than 500 paid staff taken on in a single year.
TV Channels
In full plenary Parliament passed into law Minister of Digital Policy, Telecommunications and Information Nikos Pappas’ Amendment which repeals Article 2A of law 4339/2015 on the licensing of private television stations.
The Ministry has noted that the application of this article had been suspended until the publication of the the Council of State’s decision, which was taken in January 2017, and in view of efforts to form a new all-party National Broadcasting Council (ESR).
The Ministry of Digital Policy announced "after the passing of the Amendment, the ESR will be asked to submit its opinion on the number of television licenses which should be auctioned, as well as the minimum starting price for each one of them" and "in this way, the road opens to conducting a new auction".
Tourism
The tourism sector is showing genuine signs of growth this year that suggest it will be the main driver of the Greek recovery, as it will help state revenues, the private economy, the country’s current accounts and employment. The Government is for the first time speaking of 30 million arrivals in 2017.
Bank of Greece data show that in the first four months of the year travel receipts increased by 2.4% or 23€ million year-on-year, reaching 997€ million. This increase was thanks to the 3.2% rise in arrivals and not on average spending per trip, which posted a 0.8% decline. This means the 4.8% drop in travel receipts during the first quarter was offset in April, when arrivals rose 12% and receipts 11.3% compared to 2016. This positive picture is expected to have continued in May.
Retail sector representatives are looking forward to cashing in on the increase in arrivals, to offset the losses resulting from Greek households’ ever shrinking disposable incomes. Based on the bookings picture, turnover in retail commerce could rise by up to 5% this year.
Addressing a conference organized by the Panhellenic Exporters Federation, Tourism Minister Elena Kountoura said that the data of the first five months point to an increase in arrivals, revenues, nights stayed and occupancy rates. They also show an increase in bookings for the summer ranging between 15% and 70%, depending on area, which led to her conclusion that Greece will have more then 30 million tourists this year after welcoming 28 million in 2016 and 26 million in 2015.
The growth in tourism is also reflected in employment and commerce. The number of unemployed registered with the Manpower Organization (OAED) last month dropped by 56,820 people from April to 913,518, mainly thanks to the rise in seasonal employment in tourism and commerce.
In May seven out of 10 new jobs were in the tourism sector, the Ergani hirings database of the Labour Ministry shows: Of the 89,534 new jobs in tourism, 42,871 concerned the accommodation sector, 19,952 were in food service and 2,389 in leasing and renting activities.
“The relations of trust and cooperation between Greece and Turkey can only benefit the peoples of both countries,” PM Tsipras said on Monday, welcoming Turkish Prime Minister Binali Yildirim to Athens, adding that people should support their neighbors in hard times, something that both countries had faced in the past year.
“I look forward to the opportunity to face challenges in a constructive way in order to provide solutions, I am looking forward to the opportunity to approach the issues in a positive way,” he said.
“We are neighbours, we share the same fate and we have to face the issues with calmness,” said the Turkish Prime Minister. He also said there should be a positive way of dealing with issues without prejudice or misunderstandings.
“We have a saying in Turkish, that the neighbour needs even the ash of the wood his neighbour is burning. We need each other and on everything we depend on each other,” PM Yildirim said.
PM Tsipras said “The Aegean must remain a sea of peace and stability”
In the joint press conference after their meeting, the Greek PM said that Turkish provocations in the Aegean are not helping the building of good relations. He was referring to the frequent Turkish aircraft violations of Greek airspace. To that, PM Yildirim replied that Greek fighter jets violate Turkish airspace as well.
Alexis Tsipras spoke of the importance of a “positive agenda” between the two countries in areas such as energy, transport, counter-terrorism and the refugee-migration crisis. He stressed that the Turkish provocations do not help in that direction.
However, the Greek PM said, Greece supports Turkey’s accession to the European Union and good neighbourly relations and mutual respect can contribute to the country’s quicker inclusion in the EU.
Turkish Prime Minister Binali Yildirim said that Turkey respects Greece’s decision not to extradite eight soldiers who fled to Greece after last July’s attempted coup. “We would like Greece to extradite those who clearly staged a coup against our nation. However, we respect the judiciary’s decision, and we do not want these putschists to strike a blow at Turkish-Greek relations.”
Mr.Tsipras added that they [the soldiers] are not welcome in Greece, while stressing that his is a political stance. The issue of the eight Turkish soldiers is a matter for the Greek Judiciary and its decisions must be fully respected, PM Tsipras said.
Henry Dunant Hospital Scandal
The Parliamentary Commission of Inquiry into Health Scandals this week heard how leaders and top executives of the two political parties bankrupted the hospital and set up a clientelist State
That New Democracy and PASOK for decades set themselves up as the pinnacle of state patronage and of the system of corruption and that was one of the major reasons that ultimately led to the country’s bankruptcy is finally being demonstrated by the case of the Henry Dunant Hospital scandal.
After the disclosure of the 17,000 "free" hospital admissions, it was revealed to the Parliamentary Select Committee on Health that the hospital was used for years for rewarding the clan loyalties of ND and PASOK, on many occasions and unnecessarily.
Mitsotakis, Bakoyannis, Samaras, Simitis, Venizelos, Protopapas, are just some of those “involved” among the more than 500 paid staff taken on in a single year.
TV Channels
In full plenary Parliament passed into law Minister of Digital Policy, Telecommunications and Information Nikos Pappas’ Amendment which repeals Article 2A of law 4339/2015 on the licensing of private television stations.
The Ministry has noted that the application of this article had been suspended until the publication of the the Council of State’s decision, which was taken in January 2017, and in view of efforts to form a new all-party National Broadcasting Council (ESR).
The Ministry of Digital Policy announced "after the passing of the Amendment, the ESR will be asked to submit its opinion on the number of television licenses which should be auctioned, as well as the minimum starting price for each one of them" and "in this way, the road opens to conducting a new auction".
Tourism
The tourism sector is showing genuine signs of growth this year that suggest it will be the main driver of the Greek recovery, as it will help state revenues, the private economy, the country’s current accounts and employment. The Government is for the first time speaking of 30 million arrivals in 2017.
Bank of Greece data show that in the first four months of the year travel receipts increased by 2.4% or 23€ million year-on-year, reaching 997€ million. This increase was thanks to the 3.2% rise in arrivals and not on average spending per trip, which posted a 0.8% decline. This means the 4.8% drop in travel receipts during the first quarter was offset in April, when arrivals rose 12% and receipts 11.3% compared to 2016. This positive picture is expected to have continued in May.
Retail sector representatives are looking forward to cashing in on the increase in arrivals, to offset the losses resulting from Greek households’ ever shrinking disposable incomes. Based on the bookings picture, turnover in retail commerce could rise by up to 5% this year.
Addressing a conference organized by the Panhellenic Exporters Federation, Tourism Minister Elena Kountoura said that the data of the first five months point to an increase in arrivals, revenues, nights stayed and occupancy rates. They also show an increase in bookings for the summer ranging between 15% and 70%, depending on area, which led to her conclusion that Greece will have more then 30 million tourists this year after welcoming 28 million in 2016 and 26 million in 2015.
The growth in tourism is also reflected in employment and commerce. The number of unemployed registered with the Manpower Organization (OAED) last month dropped by 56,820 people from April to 913,518, mainly thanks to the rise in seasonal employment in tourism and commerce.
In May seven out of 10 new jobs were in the tourism sector, the Ergani hirings database of the Labour Ministry shows: Of the 89,534 new jobs in tourism, 42,871 concerned the accommodation sector, 19,952 were in food service and 2,389 in leasing and renting activities.
Eurogroup :
“an agreement on all elements”
17.6.2017
On Thursday, the Eurogroup agreed to conclude the Second Assessment so paving the way for the release of 8.5€ billion support loans and put in place a mechanism for future debt relief.
German Finance Minister Wolfgang Schaeuble, left, speaks with from right, European Commissioner for Economy Pierre Moscovici, Greek Finance Minister Euclid Tsakalotos, and French Finance Minister Bruno Le Maire during the meeting of eurogroup finance ministers at the European Council building in Luxembourg on Thursday.
The key to breaking the deadlock was the French proposal to link debt relief measures to the country’s growth rate. To bridge the wide differences in assumptions about Greek growth rates over the next decades, French Finance Minister Bruno Le Maire proposed to link the extent of the debt relief to Greek economic growth.
The conclusion of the Second Assessment comes with the granting of a 8.5€ billion support loan, while the mechanism of linking debt repayment to growth - the so-called "development clause" of the French proposal, will be further clarified before the end of the Programme, when the medium-term measures will be implemented.
The IMF's involvement with funding and the European commitment to support the Greek effort to enter the money markets also marks the countdown for an exit from the so-called Greek drama. After today "there is light at the end of the tunnel," said Euclid Tsakalotos, while Alexis Tsipras spoke about "turning the page".
"Today the Greece turns the page. We have an agreement that corresponds to the sacrifices of the Greek people. With unity and determination we are moving forward towards equitable growth and the healing of the wounds of the crisis."
A Government Briefing on the outcome of the Eurogroup meeting stated:
"For the first time there is a clear commitment by the Eurogroup to support Greece’s entry into the money markets and its successful completion of the Programme.
The French proposal essentially bridged the gap between the different growth estimates of the IMF and the European Institutions. The Eurogroup is committed to ensuring that the measures for debt relief will correspond to any variation of growth rates. This converts Greece’s European partners into allies in pursuit of its objective of growth, since the more the Greek economy grows, the less debt relief will be required.
A period of grace and an extension of the terms of loan maturity, certainly by 15 years, and possibly for longer, were agreed if high growth rates are not achieved. This ensured the adoption of the development clause. Also the agreement established Primary Surpluses targets of 2% from 2023 and an average of approximately 2% up to 2060.
There is provision for the gradual reduction of surpluses under 2%. This is a very important commitment, as it determines the amount of debt relief required, which can be calculated by the markets and the Institutions. In addition to these Primary Surpluses, Greece will be the only EU country that will be a positive exception to the Stability Pact, on the basis of which Greece would have been obliged to have a Primary Surplus of 2.6% in the long term rather than the 2% as finally agreed.
There is a commitment to an ambitious development package from European funds that will give the prospect of high rates of growth in the Greek economy in the medium term (2018-2022).
The standing Government request for the establishment of a Development Bank was accepted.
The IMF's assessment was positive with regard to the sustainability of debt unlike its forecast of 22nd May, when the IMF believed that the Greek debt was not on track to viability.
An instalment greater than the financing needs of the Greek Treasury was agreed since that provides the possibility of paying off arrears amounting to approximately 1.6€ billion."
Eurogroup President, Jeroen Dijsselbloem, said Greece will receive 8.5€ billion, allowing it to meet a big repayment on July 19th. The funds are to be released once European Parliaments ratify the deal.
“I am pleased to announce that we have achieved an agreement on all elements,” He also said the IMF was ready to provide more financial assistance to Greece via a stand-by arrangement. IMF Managing Director, Christine Lagarde, said in a statement that it was her “intention to propose to the IMF’s Executive Board the approval in principle of a new IMF Stand-By Arrangement for Greece”.
“We have recently seen significant progress by the Greek Government on policy reforms, with a staff-level agreement followed by supportive legislation from the Greek Parliament. We have also seen progress on debt relief, although further discussions are needed on the scope and type of measures to be provided by Greece’s European creditors” Mrs. Lagarde added.
Finance Minister Euclid Tsakalotos welcomed the decision, highlighting the importance of further clarity on debt re-profiling. He said the country can “look forward with much greater confidence.” “We didn’t want the perfect to be the enemy of the good.”
He went on to say that one big benefit from the deal was that future debt repayments would be linked to Greece’s growth. In essence that could mean payments could be postponed in the event of an adverse shock.
"It's a big step forward from what was on the table at the last Eurogroup meeting," he said. "It gives much greater clarity to the markets and the Greek people."
European Stability Mechanism (ESM) head Klaus Regling said Greece should be able to return to the money markets late this year or early next year.
The conclusion of the Second Assessment comes with the granting of a 8.5€ billion support loan, while the mechanism of linking debt repayment to growth - the so-called "development clause" of the French proposal, will be further clarified before the end of the Programme, when the medium-term measures will be implemented.
The IMF's involvement with funding and the European commitment to support the Greek effort to enter the money markets also marks the countdown for an exit from the so-called Greek drama. After today "there is light at the end of the tunnel," said Euclid Tsakalotos, while Alexis Tsipras spoke about "turning the page".
"Today the Greece turns the page. We have an agreement that corresponds to the sacrifices of the Greek people. With unity and determination we are moving forward towards equitable growth and the healing of the wounds of the crisis."
A Government Briefing on the outcome of the Eurogroup meeting stated:
"For the first time there is a clear commitment by the Eurogroup to support Greece’s entry into the money markets and its successful completion of the Programme.
The French proposal essentially bridged the gap between the different growth estimates of the IMF and the European Institutions. The Eurogroup is committed to ensuring that the measures for debt relief will correspond to any variation of growth rates. This converts Greece’s European partners into allies in pursuit of its objective of growth, since the more the Greek economy grows, the less debt relief will be required.
A period of grace and an extension of the terms of loan maturity, certainly by 15 years, and possibly for longer, were agreed if high growth rates are not achieved. This ensured the adoption of the development clause. Also the agreement established Primary Surpluses targets of 2% from 2023 and an average of approximately 2% up to 2060.
There is provision for the gradual reduction of surpluses under 2%. This is a very important commitment, as it determines the amount of debt relief required, which can be calculated by the markets and the Institutions. In addition to these Primary Surpluses, Greece will be the only EU country that will be a positive exception to the Stability Pact, on the basis of which Greece would have been obliged to have a Primary Surplus of 2.6% in the long term rather than the 2% as finally agreed.
There is a commitment to an ambitious development package from European funds that will give the prospect of high rates of growth in the Greek economy in the medium term (2018-2022).
The standing Government request for the establishment of a Development Bank was accepted.
The IMF's assessment was positive with regard to the sustainability of debt unlike its forecast of 22nd May, when the IMF believed that the Greek debt was not on track to viability.
An instalment greater than the financing needs of the Greek Treasury was agreed since that provides the possibility of paying off arrears amounting to approximately 1.6€ billion."
Eurogroup President, Jeroen Dijsselbloem, said Greece will receive 8.5€ billion, allowing it to meet a big repayment on July 19th. The funds are to be released once European Parliaments ratify the deal.
“I am pleased to announce that we have achieved an agreement on all elements,” He also said the IMF was ready to provide more financial assistance to Greece via a stand-by arrangement. IMF Managing Director, Christine Lagarde, said in a statement that it was her “intention to propose to the IMF’s Executive Board the approval in principle of a new IMF Stand-By Arrangement for Greece”.
“We have recently seen significant progress by the Greek Government on policy reforms, with a staff-level agreement followed by supportive legislation from the Greek Parliament. We have also seen progress on debt relief, although further discussions are needed on the scope and type of measures to be provided by Greece’s European creditors” Mrs. Lagarde added.
Finance Minister Euclid Tsakalotos welcomed the decision, highlighting the importance of further clarity on debt re-profiling. He said the country can “look forward with much greater confidence.” “We didn’t want the perfect to be the enemy of the good.”
He went on to say that one big benefit from the deal was that future debt repayments would be linked to Greece’s growth. In essence that could mean payments could be postponed in the event of an adverse shock.
"It's a big step forward from what was on the table at the last Eurogroup meeting," he said. "It gives much greater clarity to the markets and the Greek people."
European Stability Mechanism (ESM) head Klaus Regling said Greece should be able to return to the money markets late this year or early next year.
Changing the European Game: Momentum for Growth
Prime Minister Alexis Tsipras wrote this article which earlier in the week was published in Le Monde and Die Welt
“The European ideal must not fade. But there is more to it than its mere survival. It will take more than that: the European ideal must inspire people again. It needs to become stronger, today more than ever. The voices, which call for a new governance of the Eurozone, are increasing, as well as those who demand a new impetus for growth across Europe and these voices must prevail again.
These are the voices of European people. Among them, a new European identity has emerged, as well as the expectation for a new course of equality and social justice. For a new era, away from the mistakes and exaggerations of the past. An era of sustainable development and prosperity for all.
Europeans as well as Greeks have suffered a lot during the financial crisis. Although Greece has been affected by the crisis more than any other country, we have not asked for any exceptions or favour. We have instead made, probably harder than anybody else, efforts to restore our dignity at the international and European levels. And that is why today we are striving to rebuild our lives, to create jobs and to regain our status in the European economy.
The Greek people and Government have been working in this direction over the past two years. The facts speak by themselves:
The country has been going through a lot since 2010. The implementation of fiscal adjustment programmes skyrocketed unemployment to as much as 30% in 2013, shrinking GDP by 25%. They have pushed large parts of the population into social exclusion and undermined the economic recovery of our country. But today we do not want to talk about the past. Today there is an urgency to talk about the future.
In favour of that future, the Greek Government made tough decisions in the summer of 2015. Ever since, it has implemented a programme of structural adjustment and reforms that has led to expenditure reduction and increased revenue amid an already shrunk economy. We have liberalized regulated professions, implemented a VAT reform, reformed the energy market, and implemented reforms for depoliticizing the public administration. We have put forward an agreement on a privatisation programme, while passing legislation for improving the framework for investment.
Over the two years of our governance, Greece has implemented more reforms than all other European countries combined. Additionally, we have taken a step further; we agreed on changing our fiscal policy mix in 2019 and 2020, and we have already passed the proper legislation, so as to reduce the reservations of all our lenders regarding our ability to achieve consistently the agreed budgetary goals; yet another difficult decision for Greece for the sake of a common European future.
We have undertaken all this effort in order not to shift the burden onto the coming generations; neither in Greece nor in Germany. The outcomes are obvious: OECD projects a growth rate of 1.1% for 2017. In 2016, we achieved a Primary Surplus of 4.2% of GDP, astonishingly far beyond the target of 0.5% for the whole of Europe. And in 2017, too, it is expected to exceed the targets and to be higher than 2%.
Greek debt, however, constitutes a constant impediment to growth. Currently, it amounts to 320€ billion approximately, equivalent to 180% of our country’s GDP. Why is that? Because the GDP has shrunk by almost 50€ billion since 2010.
Therefore, the answer to the problem of Greek debt sustainability is, above all, growth. A just, viable and sustainable economic growth.
The first prerequisite is a solution on the debt issue. So that the Greek economy can breathe again and to restore market credibility towards our country. The debt measures that need to be agreed cannot be considered just as a reward for reforms implemented by Greece, but mainly as a rational choice to the benefit of growth and Greece’s capability to continuously meet its debt obligations. This is not about lending more money to Greece, but on the contrary, to prevent the necessity of new loans.
The second element of the answer is none other than an ambitious growth programme. A programme that will not be based on new loans but it will be focused on actions to promote and attract private investment to Greece. A strong reform dynamism can be observed across the Eurozone. Whereas Europe seeks to champion energy transition, we should jointly invest in a growth model focusing on people and climate change. Let us invest in a real, job-generating European growth policy. Let us invest in education and research, creating future industries and the jobs of tomorrow.
For Frenchmen, Germans or Italians, the Greek debt is hardly more than a headline in the newspapers. For my fellow citizens, however, it is a daily agony amid an effort to change their country, to stand on its own two feet again, to start-up businesses that create jobs and growth.
While the British and the EU begin negotiations regarding a historic break, our task, as members of the Eurozone, is to make a historic decision to the benefit of growth and employment.
In the next days, a substantial meeting will take place. It will be of historic importance for democracy and growth. We look forward to that Eurogroup meeting with hope and expectation. Because we have implemented our commitments and remain committed to our European course. With respect for the rules of our common European home, we expect the same from our creditors; to respect the very rules they have made — to respect Greece.
Let us not allow prejudice, stereotypes and resentment to continue the damage they have already done in Europe. Let us trust reason, let us trust the facts. Europe must re-inspire us and we must re-inspire the people of Europe. They need it, just like we need it!”
Prime Minister Alexis Tsipras wrote this article which earlier in the week was published in Le Monde and Die Welt
“The European ideal must not fade. But there is more to it than its mere survival. It will take more than that: the European ideal must inspire people again. It needs to become stronger, today more than ever. The voices, which call for a new governance of the Eurozone, are increasing, as well as those who demand a new impetus for growth across Europe and these voices must prevail again.
These are the voices of European people. Among them, a new European identity has emerged, as well as the expectation for a new course of equality and social justice. For a new era, away from the mistakes and exaggerations of the past. An era of sustainable development and prosperity for all.
Europeans as well as Greeks have suffered a lot during the financial crisis. Although Greece has been affected by the crisis more than any other country, we have not asked for any exceptions or favour. We have instead made, probably harder than anybody else, efforts to restore our dignity at the international and European levels. And that is why today we are striving to rebuild our lives, to create jobs and to regain our status in the European economy.
The Greek people and Government have been working in this direction over the past two years. The facts speak by themselves:
The country has been going through a lot since 2010. The implementation of fiscal adjustment programmes skyrocketed unemployment to as much as 30% in 2013, shrinking GDP by 25%. They have pushed large parts of the population into social exclusion and undermined the economic recovery of our country. But today we do not want to talk about the past. Today there is an urgency to talk about the future.
In favour of that future, the Greek Government made tough decisions in the summer of 2015. Ever since, it has implemented a programme of structural adjustment and reforms that has led to expenditure reduction and increased revenue amid an already shrunk economy. We have liberalized regulated professions, implemented a VAT reform, reformed the energy market, and implemented reforms for depoliticizing the public administration. We have put forward an agreement on a privatisation programme, while passing legislation for improving the framework for investment.
Over the two years of our governance, Greece has implemented more reforms than all other European countries combined. Additionally, we have taken a step further; we agreed on changing our fiscal policy mix in 2019 and 2020, and we have already passed the proper legislation, so as to reduce the reservations of all our lenders regarding our ability to achieve consistently the agreed budgetary goals; yet another difficult decision for Greece for the sake of a common European future.
We have undertaken all this effort in order not to shift the burden onto the coming generations; neither in Greece nor in Germany. The outcomes are obvious: OECD projects a growth rate of 1.1% for 2017. In 2016, we achieved a Primary Surplus of 4.2% of GDP, astonishingly far beyond the target of 0.5% for the whole of Europe. And in 2017, too, it is expected to exceed the targets and to be higher than 2%.
Greek debt, however, constitutes a constant impediment to growth. Currently, it amounts to 320€ billion approximately, equivalent to 180% of our country’s GDP. Why is that? Because the GDP has shrunk by almost 50€ billion since 2010.
Therefore, the answer to the problem of Greek debt sustainability is, above all, growth. A just, viable and sustainable economic growth.
The first prerequisite is a solution on the debt issue. So that the Greek economy can breathe again and to restore market credibility towards our country. The debt measures that need to be agreed cannot be considered just as a reward for reforms implemented by Greece, but mainly as a rational choice to the benefit of growth and Greece’s capability to continuously meet its debt obligations. This is not about lending more money to Greece, but on the contrary, to prevent the necessity of new loans.
The second element of the answer is none other than an ambitious growth programme. A programme that will not be based on new loans but it will be focused on actions to promote and attract private investment to Greece. A strong reform dynamism can be observed across the Eurozone. Whereas Europe seeks to champion energy transition, we should jointly invest in a growth model focusing on people and climate change. Let us invest in a real, job-generating European growth policy. Let us invest in education and research, creating future industries and the jobs of tomorrow.
For Frenchmen, Germans or Italians, the Greek debt is hardly more than a headline in the newspapers. For my fellow citizens, however, it is a daily agony amid an effort to change their country, to stand on its own two feet again, to start-up businesses that create jobs and growth.
While the British and the EU begin negotiations regarding a historic break, our task, as members of the Eurozone, is to make a historic decision to the benefit of growth and employment.
In the next days, a substantial meeting will take place. It will be of historic importance for democracy and growth. We look forward to that Eurogroup meeting with hope and expectation. Because we have implemented our commitments and remain committed to our European course. With respect for the rules of our common European home, we expect the same from our creditors; to respect the very rules they have made — to respect Greece.
Let us not allow prejudice, stereotypes and resentment to continue the damage they have already done in Europe. Let us trust reason, let us trust the facts. Europe must re-inspire us and we must re-inspire the people of Europe. They need it, just like we need it!”
Greek Prime Minister Alexis Tsipras and Han Zheng, a member of the Political Bureau of the Central Committee of the Communist Party of China (CPC) and secretary of the CPC Shanghai Municipal Committee during their meeting in Athens, Greece on June 12, 2017.
Greece – China Relations Growing
Two Chinese officials were in Piraeus on Monday to sign a memorandum of cooperation between Piraeus Port Authority (OLP), its owner Cosco, and the port of Shanghai, concerning the increase in incoming cargo from China to Europe. The deal will be signed by China Cosco Shipping Corporation Limited head Xu Lirong and the Shanghai International Port Group (SIPG) chairman Chen Xuyuan. The agreement highlights the significance of Piraeus for Beijing’s “One Belt, One Road” initiative.
An agreement will also be signed by Athanasios Liagos, a senior OLP official, and by SIPG’s Chen. It will concern cooperation on funding and port works, and on programmes for training, technical assistance and information exchange. Crucially, it consolidates the joint planning for promotion campaigns “toward strengthening the use of the two ports that could lead to a greater utilization of cargo handling, trade and business opportunities for both ports,” according to the Chinese. The two sides will “explore more business opportunities and be able to jointly negotiate with shipping companies on the increase of regular routes linking Shanghai with Piraeus.”
On Tuesday, China and Greece agreed to boost cooperation through the One Belt One Road Initiative.
China-Greece relations have witnessed steady progress in recent years with frequent high-level visits, substantial economic and trade cooperation and increasing people-to-people exchanges, Chinese official Han Zheng told Greek Prime Minister Alexis Tsipras on Monday.
Han, a member of the Political Bureau of the Central Committee of the Communist Party of China (CPC) and secretary of the CPC Shanghai Municipal Committee, said this year marks the 45th anniversary for the establishment of diplomatic relations between the two countries and China is willing to work with Greece to bring the comprehensive strategic partnership to a new level.
Han said China is willing to align the two countries' development strategies and promote practical cooperation in all fields through the One Belt, One Road Initiative.
He said the CPC attaches great importance to the development of relations with PM Tsipras' Syriza party and wishes to strengthen exchanges and cooperation between the two parties, contributing to Sino-Greek ties.
Alexis Tsipras said Greece attaches great importance to its relations with China and wish to take the One Belt, One Road Initiative as an opportunity to further advance dialogue and cooperation with China in fields such as development and global governance.
Han led a Chinese delegation for a visit to Greece from Sunday to Tuesday at the invitation of the country's ruling Syriza party.
During the visit, Han also held talks with Greek Parliamentary Speaker Nikos Voutsis and Athens Mayor Yiorgos Kaminis, and oversaw the signing of a memorandum of understanding on friendly cooperation between Athens and Shanghai.
He also attended New Oriental Chinese Music Scene concert dedicated to the 45th anniversary of Greece-China diplomatic relations and visited the Piraeus port project managed by China COSCO Shipping.
Two Chinese officials were in Piraeus on Monday to sign a memorandum of cooperation between Piraeus Port Authority (OLP), its owner Cosco, and the port of Shanghai, concerning the increase in incoming cargo from China to Europe. The deal will be signed by China Cosco Shipping Corporation Limited head Xu Lirong and the Shanghai International Port Group (SIPG) chairman Chen Xuyuan. The agreement highlights the significance of Piraeus for Beijing’s “One Belt, One Road” initiative.
An agreement will also be signed by Athanasios Liagos, a senior OLP official, and by SIPG’s Chen. It will concern cooperation on funding and port works, and on programmes for training, technical assistance and information exchange. Crucially, it consolidates the joint planning for promotion campaigns “toward strengthening the use of the two ports that could lead to a greater utilization of cargo handling, trade and business opportunities for both ports,” according to the Chinese. The two sides will “explore more business opportunities and be able to jointly negotiate with shipping companies on the increase of regular routes linking Shanghai with Piraeus.”
On Tuesday, China and Greece agreed to boost cooperation through the One Belt One Road Initiative.
China-Greece relations have witnessed steady progress in recent years with frequent high-level visits, substantial economic and trade cooperation and increasing people-to-people exchanges, Chinese official Han Zheng told Greek Prime Minister Alexis Tsipras on Monday.
Han, a member of the Political Bureau of the Central Committee of the Communist Party of China (CPC) and secretary of the CPC Shanghai Municipal Committee, said this year marks the 45th anniversary for the establishment of diplomatic relations between the two countries and China is willing to work with Greece to bring the comprehensive strategic partnership to a new level.
Han said China is willing to align the two countries' development strategies and promote practical cooperation in all fields through the One Belt, One Road Initiative.
He said the CPC attaches great importance to the development of relations with PM Tsipras' Syriza party and wishes to strengthen exchanges and cooperation between the two parties, contributing to Sino-Greek ties.
Alexis Tsipras said Greece attaches great importance to its relations with China and wish to take the One Belt, One Road Initiative as an opportunity to further advance dialogue and cooperation with China in fields such as development and global governance.
Han led a Chinese delegation for a visit to Greece from Sunday to Tuesday at the invitation of the country's ruling Syriza party.
During the visit, Han also held talks with Greek Parliamentary Speaker Nikos Voutsis and Athens Mayor Yiorgos Kaminis, and oversaw the signing of a memorandum of understanding on friendly cooperation between Athens and Shanghai.
He also attended New Oriental Chinese Music Scene concert dedicated to the 45th anniversary of Greece-China diplomatic relations and visited the Piraeus port project managed by China COSCO Shipping.
“The only thing that ultimately everyone is waiting for is a signal from the political leadership of Europe and the Institutions that investors can trust Greece again”
PM Tsipras
10.6.2017
The week was spent preparing the ground for a successful Eurogroup Meeting on June 15th.
Parliament completes the “Prior Actions”
On Friday the Greek Government tabled legislation containing “prior actions” in Parliament ahead of the Eurogroup meeting on June 15th during which it is hoped that the Second Assessment will be officially signed off. These constitute the final group of the 140 prior actions agreed by Greece and its creditors which must be implemented to conclude the Assessment.
One of the “prior actions” makes provision to balance the 250€ million resulting from a “freeze” on pensions in 2022 required by the Institutions. Further clauses cover the restoration of collective bargaining, the bringing forward to 2019 of the cut in the income tax-free threshold and the arrangements for the compulsory auctioning-off of properties belonging to serial defaulters to be administered online. There are also provisions redefining political party funding rules with the aim of increasing transparency and reducing political parties’ dependency on bank loans.
In a roll-call vote requested by New Democracy, the new legislation passed into law with the support of the 153 MPs of SYRIZA and Independent Greeks (AN-EL) while 84 were against (ND, Golden Dawn, Potami, Centrists’ Union). There were 63 absences - the Democratic Coalition and the Communist Party left the session before the vote.
Intense Activity to make June 15th Eurogroup a success
Greek President Prokopis Pavlopoulos urged German Finance Minister Wolfgang Schaeuble not to let domestic politics influence his decision on providing debt relief to Greece. He told Die Welt newspaper in an interview published on Friday that Greece had implemented pension cuts and tax reforms as promised, and Germany should also keep its promises and approve debt relief measures.
"I appeal to Wolfgang Schaeuble not to let the German election influence his decision on debt relief. This is about something bigger; it's about Europe," the Greek President said.
"I know that Mr. Schaeuble is a role model when it comes to sticking to the rules ... Now my chance has come to demand that the German Finance Ministry sticks to the rules," he said. "Wolfgang Schaeuble is strict, but just, and that is why he will find a formula that allows us to reduce the mountain of debt."
He said Greece's request would not result in any problems for Germany, noting that German Foreign Minister Sigmar Gabriel, a member of the Social Democrats, junior partners in the ruling coalition, also believed Greece had lived up to its reform promises and was acting in good faith.
He said he did not believe that German voters would cast their election votes on the basis of Greece debt relief, noting that perhaps the German Government should remind its citizens that Greece had made huge sacrifices to get a grip on the debt crisis, and it had not cost Germany a single euro.
Euclid Tsakalotos held meetings with Mario Draghi, and with the ECB’s Benoit Coeure, the EU’s Declan Costello and the ESM’s Nicola Giammarioli, on the sidelines of the Economist conference.
The fact that Christine Lagarde will now participate in the 15th June Eurogroup meeting suggests that these efforts have met with some success.
"The European Commission and I do not want there to be any doubt about the sustainability of the Greek debt" said European Commissioner Pierre Moscovici and went on to say "I'd really like to get a very clear message across to Greece’s creditors not to play with fire in a decisive week during which the Eurogroup will meet on the issue of Greece's debt."
Speaking at the Concordia Europe Summit 2017, Alexis Tsipras stated the Greek Government’s request for a political solution to the question of closing the Second Assessment so that Greece can move forward. “The only thing that ultimately everyone is waiting for is a signal from the political leadership of Europe, and the Institutions, that investors can trust Greece again”, the Greek PM noted.
PM Tsipras congratulates Jeremy Corbyn
Prime Minister Alexis Tsipras sent congratulations to Jeremy Corbyn, the Leader of the British Labour Party on the result achieved in the British General Election.
"The result achieved by my friend Jeremy Corbyn shows that the Left, which dares, can inspire and mobilize the people. Two months ago the opinion polls had decided he would be crushed. But in elections it is the voters who decide, especially young people.
The Left who dares can inspire and mobilize the people. Neither the proponents of neoliberalism and of austerity nor rightwing populism can give the people hope."
Tax Avoidance
On Wednesday Greece joined 76 other countries and territories in signing the “Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting” (BEPS), on the sidelines of the Organisation for Economic Co-operation and Development’s annual Ministerial Council Meeting and Forum in Paris. The Convention was signed by Deputy Finance Minister Katerina Papanatsiou.
The Convention modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also contributes to the reduction of tax avoidance by multinational companies and avoids double taxation, while creating a “more stable and well-functioning global tax system”.
It includes agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms.
The Finance Ministry said in a press release “the signing of the Convention by Greece shows the Government’s will to limit tax avoidance by modernising taxation and participating actively in the international effort in this direction”.
On Friday the Greek Government tabled legislation containing “prior actions” in Parliament ahead of the Eurogroup meeting on June 15th during which it is hoped that the Second Assessment will be officially signed off. These constitute the final group of the 140 prior actions agreed by Greece and its creditors which must be implemented to conclude the Assessment.
One of the “prior actions” makes provision to balance the 250€ million resulting from a “freeze” on pensions in 2022 required by the Institutions. Further clauses cover the restoration of collective bargaining, the bringing forward to 2019 of the cut in the income tax-free threshold and the arrangements for the compulsory auctioning-off of properties belonging to serial defaulters to be administered online. There are also provisions redefining political party funding rules with the aim of increasing transparency and reducing political parties’ dependency on bank loans.
In a roll-call vote requested by New Democracy, the new legislation passed into law with the support of the 153 MPs of SYRIZA and Independent Greeks (AN-EL) while 84 were against (ND, Golden Dawn, Potami, Centrists’ Union). There were 63 absences - the Democratic Coalition and the Communist Party left the session before the vote.
Intense Activity to make June 15th Eurogroup a success
Greek President Prokopis Pavlopoulos urged German Finance Minister Wolfgang Schaeuble not to let domestic politics influence his decision on providing debt relief to Greece. He told Die Welt newspaper in an interview published on Friday that Greece had implemented pension cuts and tax reforms as promised, and Germany should also keep its promises and approve debt relief measures.
"I appeal to Wolfgang Schaeuble not to let the German election influence his decision on debt relief. This is about something bigger; it's about Europe," the Greek President said.
"I know that Mr. Schaeuble is a role model when it comes to sticking to the rules ... Now my chance has come to demand that the German Finance Ministry sticks to the rules," he said. "Wolfgang Schaeuble is strict, but just, and that is why he will find a formula that allows us to reduce the mountain of debt."
He said Greece's request would not result in any problems for Germany, noting that German Foreign Minister Sigmar Gabriel, a member of the Social Democrats, junior partners in the ruling coalition, also believed Greece had lived up to its reform promises and was acting in good faith.
He said he did not believe that German voters would cast their election votes on the basis of Greece debt relief, noting that perhaps the German Government should remind its citizens that Greece had made huge sacrifices to get a grip on the debt crisis, and it had not cost Germany a single euro.
Euclid Tsakalotos held meetings with Mario Draghi, and with the ECB’s Benoit Coeure, the EU’s Declan Costello and the ESM’s Nicola Giammarioli, on the sidelines of the Economist conference.
The fact that Christine Lagarde will now participate in the 15th June Eurogroup meeting suggests that these efforts have met with some success.
"The European Commission and I do not want there to be any doubt about the sustainability of the Greek debt" said European Commissioner Pierre Moscovici and went on to say "I'd really like to get a very clear message across to Greece’s creditors not to play with fire in a decisive week during which the Eurogroup will meet on the issue of Greece's debt."
Speaking at the Concordia Europe Summit 2017, Alexis Tsipras stated the Greek Government’s request for a political solution to the question of closing the Second Assessment so that Greece can move forward. “The only thing that ultimately everyone is waiting for is a signal from the political leadership of Europe, and the Institutions, that investors can trust Greece again”, the Greek PM noted.
PM Tsipras congratulates Jeremy Corbyn
Prime Minister Alexis Tsipras sent congratulations to Jeremy Corbyn, the Leader of the British Labour Party on the result achieved in the British General Election.
"The result achieved by my friend Jeremy Corbyn shows that the Left, which dares, can inspire and mobilize the people. Two months ago the opinion polls had decided he would be crushed. But in elections it is the voters who decide, especially young people.
The Left who dares can inspire and mobilize the people. Neither the proponents of neoliberalism and of austerity nor rightwing populism can give the people hope."
Tax Avoidance
On Wednesday Greece joined 76 other countries and territories in signing the “Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting” (BEPS), on the sidelines of the Organisation for Economic Co-operation and Development’s annual Ministerial Council Meeting and Forum in Paris. The Convention was signed by Deputy Finance Minister Katerina Papanatsiou.
The Convention modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also contributes to the reduction of tax avoidance by multinational companies and avoids double taxation, while creating a “more stable and well-functioning global tax system”.
It includes agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms.
The Finance Ministry said in a press release “the signing of the Convention by Greece shows the Government’s will to limit tax avoidance by modernising taxation and participating actively in the international effort in this direction”.
“The country’s creditors - including the European Central Bank - must now assume their responsibilities. They have a moral and legal obligation.”
3.6.2017
Greece has done its part and this is recognised by the majority of the lenders, Prime Minister Alexis Tsipras told Greek Business Leaders at the Hellenic Federation of Enterprises (SEV) annual General Assembly on Wednesday, marking the 100th anniversary of SEV’s foundation.
"Our demand is for an acceptable overall debt solution which will bring about a number of positive consequences, such as the reduction of interest rates, the boosting of the country's creditworthiness and the recovery of the banking system’s vitality to finance the economy"
"Greece will accept only a solution that guarantees the country's access to the financial markets, immediately and under sustainable conditions - a solution that secures stability, guarantees a dynamic for economic recovery and opens the way for Greece to enter the money markets - initially, and swiftly, through trial issues, that will allow the country to cover its borrowing needs from markets after its bailout programme ends in September 2018 - that is the measure of success."
“The country’s creditors - including the European Central Bank - must now assume their responsibilities. “They have a moral and legal obligation to do this.”
The Prime Minister called on what he called the “healthy” forces in the country to assist in achieving the exit from the crisis and the Memoranda, urging a dialogue based on mutual respect and the principles of democracy, “in spite of our known disagreements and views.”
“The future of the economy for many decades will be judged at this time. We must be united as we face a goal of national importance.”
“A clear solution for the Greek side is one that does not create insecurity for investors. At this time, both Greece and Europe have the capability to provide such a solution.”
PM Tsipras called on the productive forces of the country to “come together in our common struggle for the next day in Greece – for a Greece that is fair and productive. At all costs - we have no other choice but to succeed.”
He said that from the beginning of this Government channels of communication had been established with both the Ministries and the Prime Minister's Office directly, so that the exchange of views and proposals is prompt and effective.
In another part of his speech he said “I will not hide the fact that we have ideological differences and different approaches but these do not count in the situation in which the country and the economy find themselves.
He invited all parties to enter into a dialogue in good faith, without deceit or falsehood - with scientific arguments, without concealing important data and without denigrating efforts and achievements and above all without extreme characterisations.
“We must with a sense of urgency make up for lost time, planning the country’s next day.
“These days are critical for the future of the economy for many decades to come. We must unite in the face of a national importance goal.
“A pre-requisite of equitable and sustainable development in the modern world economic environment is the transformation to a new productive model based on openness and on human capital.
The share of exports in GDP reached 30% in 2016, when in 2009 exports stood at 19%. The fiscal consolidation that we have achieved has put State finances on a solid basis.
Measures such as electronic transactions and electronic invoicing, the technological and digital upgrade of public services are bringing revenue to the State and creating the necessary fiscal space for the reducing the burdens borne by enterprises and households. Bureaucratic barriers are being removed, licensing is being made easier and incentives for investments are being provided. At the same time the redesign of social programmes ensures that more support is being given to those who really need it.
As regards the public investment programme, liquidity is being increased and strengthened with new financial instruments.
We have shown that Greece is not "incapable" of change, transformations and reforms, including as some in a lecturing style accuse us. We have made choices with significant costs, using the criterion of extricating us as quickly as possible from the Memoranda.The great effort made is now recognised as much by our partner Institutions, as by authoritative international organisations like the OECD and the World Bank.”
PM Tsipras said the Government was currently working hard so that differences with all the lenders can be bridged and everyone can arrive at a positive analysis for achieving the sustainability of Greece’s debt. He also pointed to the heightened interest currently being displayed by investors, who he said were waiting for a clear signal that the Greek Programme will be successfully concluded.
He stressed, however, that any solution put forward must be commensurate to the sacrifices of the Greek people.
Other Reactions ahead of June 15th Eurogroup
Earlier Wednesday, the European Union's Finance Commissioner urged the Lenders to "act responsibly" and reach an agreement with Greece. Pierre Moscovici said Greece had "delivered on its commitments" on reforms and budget cuts. "We will do everything to conclude as soon as possible." he said. "I will continue in the name of the European Commission to urge that all players act responsibly."
Greek Finance Minister Euclid Tsakalotos told reporters on Monday that the ideal scenario for the next meeting of Eurozone finance ministers on June 15th would be to ensure the IMF’s involvement in the program, something that would certify that the Greek debt is sustainable, thereby integrating Greece into the quantitative easing (QE) programme of the European Central Bank.
European Central Bank President Mario Draghi clarified that although independent, the ECB can not accept what the IMF refuses to accept on the Greek issue, meaning that Greece can not be in the QE programme without the IMF approval. The approval will be given only when the Fund’s Board is convinced that the Greek debt is sustainable.
In an interview with Spiegel magazine, Minister Tsakalotos said that postponing the solution to the Greek debt problem until after the German elections in September would increase the risk of Greece’s failure in the third rescue programme. He estimates that Greece will be supported by France and Italy, who were in favour of a clear decision on the measures to ease the Greek debt at the May 22nd Eurogroup.
"The Greek government feels it's done its part of what it promised," Finance Minister Euclid Tsakalotos said, referring to parliamentary approval this month on a package of reforms to be implemented in 2019-20, when its existing bailout expires.
"We feel that the ball is very much on the side of our creditors and the IMF, that there are no excuses for not getting this overall deal that the Greek economy so desperately needs in its efforts to access the markets."
"There is very little point in entering a programme if the goal is not to leave the programme and leaving the programme should not only be the responsibility of the debtor country but also of the creditor countries as well," he told reporters.
"Greece will accept only a solution that guarantees the country's access to the financial markets, immediately and under sustainable conditions - a solution that secures stability, guarantees a dynamic for economic recovery and opens the way for Greece to enter the money markets - initially, and swiftly, through trial issues, that will allow the country to cover its borrowing needs from markets after its bailout programme ends in September 2018 - that is the measure of success."
“The country’s creditors - including the European Central Bank - must now assume their responsibilities. “They have a moral and legal obligation to do this.”
The Prime Minister called on what he called the “healthy” forces in the country to assist in achieving the exit from the crisis and the Memoranda, urging a dialogue based on mutual respect and the principles of democracy, “in spite of our known disagreements and views.”
“The future of the economy for many decades will be judged at this time. We must be united as we face a goal of national importance.”
“A clear solution for the Greek side is one that does not create insecurity for investors. At this time, both Greece and Europe have the capability to provide such a solution.”
PM Tsipras called on the productive forces of the country to “come together in our common struggle for the next day in Greece – for a Greece that is fair and productive. At all costs - we have no other choice but to succeed.”
He said that from the beginning of this Government channels of communication had been established with both the Ministries and the Prime Minister's Office directly, so that the exchange of views and proposals is prompt and effective.
In another part of his speech he said “I will not hide the fact that we have ideological differences and different approaches but these do not count in the situation in which the country and the economy find themselves.
He invited all parties to enter into a dialogue in good faith, without deceit or falsehood - with scientific arguments, without concealing important data and without denigrating efforts and achievements and above all without extreme characterisations.
“We must with a sense of urgency make up for lost time, planning the country’s next day.
“These days are critical for the future of the economy for many decades to come. We must unite in the face of a national importance goal.
“A pre-requisite of equitable and sustainable development in the modern world economic environment is the transformation to a new productive model based on openness and on human capital.
The share of exports in GDP reached 30% in 2016, when in 2009 exports stood at 19%. The fiscal consolidation that we have achieved has put State finances on a solid basis.
Measures such as electronic transactions and electronic invoicing, the technological and digital upgrade of public services are bringing revenue to the State and creating the necessary fiscal space for the reducing the burdens borne by enterprises and households. Bureaucratic barriers are being removed, licensing is being made easier and incentives for investments are being provided. At the same time the redesign of social programmes ensures that more support is being given to those who really need it.
As regards the public investment programme, liquidity is being increased and strengthened with new financial instruments.
We have shown that Greece is not "incapable" of change, transformations and reforms, including as some in a lecturing style accuse us. We have made choices with significant costs, using the criterion of extricating us as quickly as possible from the Memoranda.The great effort made is now recognised as much by our partner Institutions, as by authoritative international organisations like the OECD and the World Bank.”
PM Tsipras said the Government was currently working hard so that differences with all the lenders can be bridged and everyone can arrive at a positive analysis for achieving the sustainability of Greece’s debt. He also pointed to the heightened interest currently being displayed by investors, who he said were waiting for a clear signal that the Greek Programme will be successfully concluded.
He stressed, however, that any solution put forward must be commensurate to the sacrifices of the Greek people.
Other Reactions ahead of June 15th Eurogroup
Earlier Wednesday, the European Union's Finance Commissioner urged the Lenders to "act responsibly" and reach an agreement with Greece. Pierre Moscovici said Greece had "delivered on its commitments" on reforms and budget cuts. "We will do everything to conclude as soon as possible." he said. "I will continue in the name of the European Commission to urge that all players act responsibly."
Greek Finance Minister Euclid Tsakalotos told reporters on Monday that the ideal scenario for the next meeting of Eurozone finance ministers on June 15th would be to ensure the IMF’s involvement in the program, something that would certify that the Greek debt is sustainable, thereby integrating Greece into the quantitative easing (QE) programme of the European Central Bank.
European Central Bank President Mario Draghi clarified that although independent, the ECB can not accept what the IMF refuses to accept on the Greek issue, meaning that Greece can not be in the QE programme without the IMF approval. The approval will be given only when the Fund’s Board is convinced that the Greek debt is sustainable.
In an interview with Spiegel magazine, Minister Tsakalotos said that postponing the solution to the Greek debt problem until after the German elections in September would increase the risk of Greece’s failure in the third rescue programme. He estimates that Greece will be supported by France and Italy, who were in favour of a clear decision on the measures to ease the Greek debt at the May 22nd Eurogroup.
"The Greek government feels it's done its part of what it promised," Finance Minister Euclid Tsakalotos said, referring to parliamentary approval this month on a package of reforms to be implemented in 2019-20, when its existing bailout expires.
"We feel that the ball is very much on the side of our creditors and the IMF, that there are no excuses for not getting this overall deal that the Greek economy so desperately needs in its efforts to access the markets."
"There is very little point in entering a programme if the goal is not to leave the programme and leaving the programme should not only be the responsibility of the debtor country but also of the creditor countries as well," he told reporters.
New Loans & Debt Relief - More Delay
27.5.2017
Eurozone Finance Ministers failed to agree on debt relief for Greece with the International Monetary Fund on Monday and did not release new loans.
Greece needs the next tranche of bailout funds from the Eurozone to avoid a default in July when it has to repay some 7.3€ billion worth of maturing loans. To get the money, the Greek Parliament approved further austerity measures last Thursday.
For the disbursement to take place, Greece needs to implement some 140 "prior actions". Most of them had been done; some still remained to be completed. According to European Commissioner, Pierre Moscovici: “We are talking about a range of very considerable commitments… these prior actions involve 140 measures, and they are not minor reforms. I briefed the Eurogroup that 104 of the 140 mentioned could already be regarded as done. Indeed today the number was increased slightly because further progress was achieved so we stand now at 115 completed actions.”
After the eight-hour meeting in Brussels on Monday, Eurogroup Chairman Jeroen Dijsselbloem said Greece had made progress and that a broad settlement to unfreeze money including progress on debt relief was “close,” but decisions were then deferred to the next meeting of the 19 Eurozone Finance Ministers on June 15th.
Mr.Dijsselbloem said the IMF had welcomed the progress made by Greece, and was "impressed" by the reforms undertaken by Greece and that it stands ready to go to the Board to get involved financially.
"Overall, positive developments from Greece, lots of work done tonight, I think we are very close to that agreement, but tonight we are unable to close a possible gap between what could be done and what some of us expected should be done or could be done," he said. "We need to close that gap by looking at additional options or by adjusting our expectations. Both are possible and perhaps both should be done and that I think should bring us to a more definite conclusion at the next Eurogroup in June."
The other reason why no new loans could be agreed was the lack of agreement between the Eurozone and the IMF on debt relief for Greece.
Countries including Germany and the Netherlands have said they will refuse to lend more money to Greece unless the IMF participates in the programme.
A German proposal at the Eurogroup stipulated the IMF should join the bailout programme now, without having to lend money to Greece until 2018. The proposal, which was rejected, also suggested that the discussion of debt relief measures should be deferred until after the German elections in September.
On Tuesday Poul Thomsen, the IMF's European Department head said the Fund wanted to see 'specificity'. Lenders agreed in principle in 2016 to consider debt relief but have not specified how.
Government spokesman Dimitris Tzanakopoulos said on Tuesday “If it is not possible to bridge the differences between Germany and the IMF, then a decision should be taken immediately for the IMF’s non-participation in the Greek programme,”. In light of this eventuality, he added that Greece and its European partners should discuss how to move forward with the current programme. "It was clear .. that a decision for a short postponement giving us time to prepare and work on a better solution is preferable to taking a decision which just defers the problem," he told reporters.
After the meeting, the Eurozone Ministers said in a statement "The Eurogroup held an in-depth discussion on the sustainability of Greece's public debt but did not reach an overall agreement". "Work will continue in the coming weeks within the framework agreed in May 2016 with a view to reaching a definitive conclusion at the next Eurogroup meeting. This includes an ambitious and economically sound medium-term Primary Surplus path for Greece," the statement said.
Greek Finance Minister Euclid Tsakalotos said "The feeling was.... more work was needed to be able to have that kind of clarity that the financial markets understood and the Greek people understood about what to expect at the end of the programme period in terms of debt relief". He also said he was optimistic that a definitive deal could be brokered by the time of the next formal meeting in June.
While the Eurozone has ruled out any debt write off, it has indicated that extending Greece's repayment periods or reducing the interest rates on its loans are possible at the conclusion of the bailout next year.
On Monday, Emmanuel Macron, France's new President spoke to PM Tsipras and stressed "his determination to find an accord soon to lighten the burden of Greek debt over the long term."
For the disbursement to take place, Greece needs to implement some 140 "prior actions". Most of them had been done; some still remained to be completed. According to European Commissioner, Pierre Moscovici: “We are talking about a range of very considerable commitments… these prior actions involve 140 measures, and they are not minor reforms. I briefed the Eurogroup that 104 of the 140 mentioned could already be regarded as done. Indeed today the number was increased slightly because further progress was achieved so we stand now at 115 completed actions.”
After the eight-hour meeting in Brussels on Monday, Eurogroup Chairman Jeroen Dijsselbloem said Greece had made progress and that a broad settlement to unfreeze money including progress on debt relief was “close,” but decisions were then deferred to the next meeting of the 19 Eurozone Finance Ministers on June 15th.
Mr.Dijsselbloem said the IMF had welcomed the progress made by Greece, and was "impressed" by the reforms undertaken by Greece and that it stands ready to go to the Board to get involved financially.
"Overall, positive developments from Greece, lots of work done tonight, I think we are very close to that agreement, but tonight we are unable to close a possible gap between what could be done and what some of us expected should be done or could be done," he said. "We need to close that gap by looking at additional options or by adjusting our expectations. Both are possible and perhaps both should be done and that I think should bring us to a more definite conclusion at the next Eurogroup in June."
The other reason why no new loans could be agreed was the lack of agreement between the Eurozone and the IMF on debt relief for Greece.
Countries including Germany and the Netherlands have said they will refuse to lend more money to Greece unless the IMF participates in the programme.
A German proposal at the Eurogroup stipulated the IMF should join the bailout programme now, without having to lend money to Greece until 2018. The proposal, which was rejected, also suggested that the discussion of debt relief measures should be deferred until after the German elections in September.
On Tuesday Poul Thomsen, the IMF's European Department head said the Fund wanted to see 'specificity'. Lenders agreed in principle in 2016 to consider debt relief but have not specified how.
Government spokesman Dimitris Tzanakopoulos said on Tuesday “If it is not possible to bridge the differences between Germany and the IMF, then a decision should be taken immediately for the IMF’s non-participation in the Greek programme,”. In light of this eventuality, he added that Greece and its European partners should discuss how to move forward with the current programme. "It was clear .. that a decision for a short postponement giving us time to prepare and work on a better solution is preferable to taking a decision which just defers the problem," he told reporters.
After the meeting, the Eurozone Ministers said in a statement "The Eurogroup held an in-depth discussion on the sustainability of Greece's public debt but did not reach an overall agreement". "Work will continue in the coming weeks within the framework agreed in May 2016 with a view to reaching a definitive conclusion at the next Eurogroup meeting. This includes an ambitious and economically sound medium-term Primary Surplus path for Greece," the statement said.
Greek Finance Minister Euclid Tsakalotos said "The feeling was.... more work was needed to be able to have that kind of clarity that the financial markets understood and the Greek people understood about what to expect at the end of the programme period in terms of debt relief". He also said he was optimistic that a definitive deal could be brokered by the time of the next formal meeting in June.
While the Eurozone has ruled out any debt write off, it has indicated that extending Greece's repayment periods or reducing the interest rates on its loans are possible at the conclusion of the bailout next year.
On Monday, Emmanuel Macron, France's new President spoke to PM Tsipras and stressed "his determination to find an accord soon to lighten the burden of Greek debt over the long term."
Health Scandals
A secret Memorandum of Understanding between the then President of the Henry Dunant [Hospital ed.], Andreas Martinis of the Bank of Piraeus Bank and the then Minister of Health Adonis Georgiades [currently Vice-President of New Democracy Ed], concerning the arrangements for the transfer of the Dunant Hospital to the Bank, which took place six months later, is included the file of the case. Up until now this Memorandum has not seen the light of day.
Tax Evasion
Finance Ministry inspectors are about to start seeking out the owners of undeclared properties, while the law will be amended to allow for financial assets and the content of safe deposit boxes to be confiscated electronically.
The plan for the identification of taxpayers who have “forgotten” to declare their properties to the tax authorities is expected to be ready by the end of the year, according to the timetable released by the Independent Authority for Public Revenue (IAPR).
The Tax Authorities by the end of September are set to obtain access to the Land Registry database. Any taxpayers identified as having omitted the complete declaration of all their assets will be required to comply and declare them, along with paying the tax and fines dictated by law.
The IAPR is also waiting for Parliament to pass regulations permitting the mass confiscation electronically of safe deposit box contents and financial assets such as securities. To date the process has been conducted in handwriting and has therefore been particularly slow in locating the assets of taxpayers who have either concealed incomes or have major debts to the state.
Once the necessary regulations are in place for the operation of an automatic system to collect debts, the tax authorities will be able to issue online confiscation notices and immediately access the contents of safe deposit boxes, confiscating cash, precious stones, jewelry and so on. They will also be able to confiscate shares and other securities.
This year the tax authorities will focus their efforts on confiscations as they try to reduce the mountain of outstanding debts to the state. In this context the Independent Authority for Public Revenue will auction 27 properties belonging to state debtors by the end of next month, with the aim of collecting 2.7€ billion by the end of the 2017 from old debts and another 690€ million of new debts from major debtors.
A secret Memorandum of Understanding between the then President of the Henry Dunant [Hospital ed.], Andreas Martinis of the Bank of Piraeus Bank and the then Minister of Health Adonis Georgiades [currently Vice-President of New Democracy Ed], concerning the arrangements for the transfer of the Dunant Hospital to the Bank, which took place six months later, is included the file of the case. Up until now this Memorandum has not seen the light of day.
Tax Evasion
Finance Ministry inspectors are about to start seeking out the owners of undeclared properties, while the law will be amended to allow for financial assets and the content of safe deposit boxes to be confiscated electronically.
The plan for the identification of taxpayers who have “forgotten” to declare their properties to the tax authorities is expected to be ready by the end of the year, according to the timetable released by the Independent Authority for Public Revenue (IAPR).
The Tax Authorities by the end of September are set to obtain access to the Land Registry database. Any taxpayers identified as having omitted the complete declaration of all their assets will be required to comply and declare them, along with paying the tax and fines dictated by law.
The IAPR is also waiting for Parliament to pass regulations permitting the mass confiscation electronically of safe deposit box contents and financial assets such as securities. To date the process has been conducted in handwriting and has therefore been particularly slow in locating the assets of taxpayers who have either concealed incomes or have major debts to the state.
Once the necessary regulations are in place for the operation of an automatic system to collect debts, the tax authorities will be able to issue online confiscation notices and immediately access the contents of safe deposit boxes, confiscating cash, precious stones, jewelry and so on. They will also be able to confiscate shares and other securities.
This year the tax authorities will focus their efforts on confiscations as they try to reduce the mountain of outstanding debts to the state. In this context the Independent Authority for Public Revenue will auction 27 properties belonging to state debtors by the end of next month, with the aim of collecting 2.7€ billion by the end of the 2017 from old debts and another 690€ million of new debts from major debtors.
Parliament Agrees
Bill of Measures and Counter Measures
20.5.2017
The multi-bill containing the latest austerity measures, reform obligations and countermeasures agreed with International Creditors was approved late on Thursday night by the Greek Parliament.
Speaking after the vote, Prime Minister Alexis Tsipras said Greece had met its commitments on reforms and now expected lenders to agree to debt relief.
"It's their [the Lenders'] turn to fulfil their commitments, just as we have done," he told reporters. "We deserve and we expect from Monday's Eurogroup a decision regulating debt relief which will correspond to the sacrifices of the Greek people."
Speaking after the vote, Prime Minister Alexis Tsipras said Greece had met its commitments on reforms and now expected lenders to agree to debt relief.
"It's their [the Lenders'] turn to fulfil their commitments, just as we have done," he told reporters. "We deserve and we expect from Monday's Eurogroup a decision regulating debt relief which will correspond to the sacrifices of the Greek people."
Addressing Parliament’s Economic Affairs Committee ahead of Parliament’s Plenary, Finance Minister Euclid Tsakalotos admitted that the multi-bill was far from ideal but indicated that it was a step in the right direction.
“We are not in the world we want right now,” he said. “Our basic struggle is to reduce the oversight, our key aim is to emerge from tough stewardship,” he said.
“The positive countermeasures amount to 7.6€ billion over the period 2018-2021 at the time the negative measures amount to 4.9€ billion.” said Finance Minister, Euclid Tsakalotos, in his presentation to Parliamentary Committees processing the Bill for the completion of the Second Assessment. Minister Tsakalotos commented that the Bill made compromises, but also "opens some avenues", while he berated the opposition for its insistence on muddying the water over the possibility of the non-implementation of the positive counter measures.
He pointed out that the Government does not buy into the logic of the “success story”, as did the previous Government did, but did emphasise that there are things in the agreement with which "we are delighted", such as the reintroduction of collective bargaining, the foundations for building a modern social State and measures for attracting investment. He recalled that if the agreement had been finalised in December as called for by the opposition then the result would have been measures amounting to 2% of GDP without the corresponding countermeasures.
On the necessity of the measures, Minister Tsakalotos also observed that in the Memorandum of summer 2015 which the opposition voted for, the participation of the IMF was envisaged. He noted that the main battle is the battle over the Stewardship, which is what the Government is trying to reduce.
As regards the effort to build a modern welfare State, he remarked that the lowest economic strata can be confident that in the growth they would not be in the same position that they found themselves in under previous Governments, when strong growth made no improvement to their position at all. He put a special emphasis on the countermeasures and on the first attempt to build a social State with serious provisions and not through favouritism, redeployment and permanent tax evasion, that is to say not a welfare state as previous Governments understood it.
Minister Tsakalotos added that the countermeasures, proposing social benefits for lower-income Greeks, would basically offset the new austerity. He spent much of his speech focusing on the issue of child poverty in Greece and noting that the Government planned to increase free school meal coverage and subsidise the rents of poor families.
In response to the Opposition’s attempted belittling of the countermeasures, he cited a series of statistics on the increase in the already high levels of child poverty during the period of crisis. He referred also to the start of the counter measures to lighten the burden on the middle strata of the population, pointing to the examples of the countermeasures on rental subsidies and nursery/infant daycare.
“We are not in the world we want right now,” he said. “Our basic struggle is to reduce the oversight, our key aim is to emerge from tough stewardship,” he said.
“The positive countermeasures amount to 7.6€ billion over the period 2018-2021 at the time the negative measures amount to 4.9€ billion.” said Finance Minister, Euclid Tsakalotos, in his presentation to Parliamentary Committees processing the Bill for the completion of the Second Assessment. Minister Tsakalotos commented that the Bill made compromises, but also "opens some avenues", while he berated the opposition for its insistence on muddying the water over the possibility of the non-implementation of the positive counter measures.
He pointed out that the Government does not buy into the logic of the “success story”, as did the previous Government did, but did emphasise that there are things in the agreement with which "we are delighted", such as the reintroduction of collective bargaining, the foundations for building a modern social State and measures for attracting investment. He recalled that if the agreement had been finalised in December as called for by the opposition then the result would have been measures amounting to 2% of GDP without the corresponding countermeasures.
On the necessity of the measures, Minister Tsakalotos also observed that in the Memorandum of summer 2015 which the opposition voted for, the participation of the IMF was envisaged. He noted that the main battle is the battle over the Stewardship, which is what the Government is trying to reduce.
As regards the effort to build a modern welfare State, he remarked that the lowest economic strata can be confident that in the growth they would not be in the same position that they found themselves in under previous Governments, when strong growth made no improvement to their position at all. He put a special emphasis on the countermeasures and on the first attempt to build a social State with serious provisions and not through favouritism, redeployment and permanent tax evasion, that is to say not a welfare state as previous Governments understood it.
Minister Tsakalotos added that the countermeasures, proposing social benefits for lower-income Greeks, would basically offset the new austerity. He spent much of his speech focusing on the issue of child poverty in Greece and noting that the Government planned to increase free school meal coverage and subsidise the rents of poor families.
In response to the Opposition’s attempted belittling of the countermeasures, he cited a series of statistics on the increase in the already high levels of child poverty during the period of crisis. He referred also to the start of the counter measures to lighten the burden on the middle strata of the population, pointing to the examples of the countermeasures on rental subsidies and nursery/infant daycare.
The 153 SYRIZA-ANEL Coalition Government MPs voted in favour of the multi-bill while 128 opposition party MPs voted against it. A total of 281 deputies out of the 300 in Greece's Parliament attended the debate and voted in the process, with all 19 absent MPs belonging to the opposition.
Golden Dawn did not participate in the vote. The party was expelled from the debate after one of the party’s MPs allegedly assaulted a New Democracy MP during the debate.
The vast majority of deputies – 280 in total – approved articles 70 and 71 which provide a reduction of VAT from 24% to 13% for agricultural supplies and the abolition of tax breaks for MPs.
The Government now hopes that a Eurogroup meeting scheduled for 22nd May will approve the conclusion of the Second Assessment of the bailout programme and the disbursement of €7.5bn in bailout loans. The IMF and its international creditors must now reach a deal on debt relief measures. This in turn will allow Greece to be included in the European Central Bank's asset-buying programme and for the country to return to bond markets in the coming months.
"The counter-measures will provide relief to thousands," Alexis Tsipras said, adding that the entire package presented to Parliament would open the way to a strong economic recovery and an end to Greece's supervision by its creditors.
Deputy Finance Minister George Houliarakis said the austerity measures are a "necessary compromise" between meeting creditors' demands and extending the uncertainty over the country's economic recovery.
"This is the only road map that guarantees ... the country's exit from the great Greek recession," Mr. Houliarakis told MPs.
Finance Minister Euclid Tsakalotos said he expects it to be possible to lift restrictions on bank cash withdrawals and capital flows imposed in 2015 by the end of this year.
Speaking after the vote, Prime Minister Alexis Tsipras said Greece had met its commitments on reforms and now expected lenders to agree to debt relief.
Golden Dawn did not participate in the vote. The party was expelled from the debate after one of the party’s MPs allegedly assaulted a New Democracy MP during the debate.
The vast majority of deputies – 280 in total – approved articles 70 and 71 which provide a reduction of VAT from 24% to 13% for agricultural supplies and the abolition of tax breaks for MPs.
The Government now hopes that a Eurogroup meeting scheduled for 22nd May will approve the conclusion of the Second Assessment of the bailout programme and the disbursement of €7.5bn in bailout loans. The IMF and its international creditors must now reach a deal on debt relief measures. This in turn will allow Greece to be included in the European Central Bank's asset-buying programme and for the country to return to bond markets in the coming months.
"The counter-measures will provide relief to thousands," Alexis Tsipras said, adding that the entire package presented to Parliament would open the way to a strong economic recovery and an end to Greece's supervision by its creditors.
Deputy Finance Minister George Houliarakis said the austerity measures are a "necessary compromise" between meeting creditors' demands and extending the uncertainty over the country's economic recovery.
"This is the only road map that guarantees ... the country's exit from the great Greek recession," Mr. Houliarakis told MPs.
Finance Minister Euclid Tsakalotos said he expects it to be possible to lift restrictions on bank cash withdrawals and capital flows imposed in 2015 by the end of this year.
Speaking after the vote, Prime Minister Alexis Tsipras said Greece had met its commitments on reforms and now expected lenders to agree to debt relief.
"One Belt – One Road"
"Greece - after many years of serious crisis – is returning to the path of growth, opening up great opportunities for investment and trade"
A "sustainable initiative for the 21st century, built on the wisdom of the idea of ancient China, the Silk Road," is how Prime Minister Alexis Tsipras characterised the "One Belt – One Road" plan, speaking in China from the platform of the Forum of that name. He congratulated China and President Xi Jinping personally for his vision and his warm hospitality as the host of the Forum.
The Greek Prime Minister stressed "the great importance of such a vision in our time, especially at a time when everybody around this table is facing growing challenges at international and regional level - the economic and financial system, the movement of people and migration, security and regional stability. In these times-where the great temptation is to respond to the crises of globalization with greater isolationism, protectionism, raising walls - this initiative comes along to bring forth a vision of coherence, cooperation and dialogue across the length of Europe and Asia, but also in other regions of the world.
"Therefore, this initiative is a critical instrument for the expansion of economic development, trade and investment - with partnerships in investment and the boosting of trade, transport, energy and telecommunications networks through projects that can have a big impact on national economies. And so, on this basis, the Greek Government will actively support the countries participating in this initiative in their paying attention to fostering scientific and technological innovation, including the integration of small and medium-sized enterprises in global chains of value."
The Prime Minister said he was convinced that coordination with other regional frameworks such as the ASEM, EU-China Interface platform or the China Europe Land Sea Express Route will add further value to the Initiative. While all the time promoting an international trading system based on rules, it will be transparent and open to all, with the World Trade Organization at its core.
"What is particularly positive for us is that the objectives of the Initiative of "One Belt – One Road" are compatible with our own economic objectives at the regional level. And our dynamic, comprehensive, strategic cooperation with China sets a firm basis for us to work in that direction."
"Greece - after many years of serious crisis – is returning to the path of growth, opening up great opportunities for investment and trade"
"My country once again is in a position to take full advantage of its unique geopolitical identity, as a country of Europe, the Mediterranean, the Balkans and the wider Black Sea region as well as a maritime nation with the capabilities to promote its connections far beyond its neighborhood. In this context, Greece is expanding its role as an important regional hub in the areas of trade, transport, energy, telecommunications, security, culture and tourism.
"Greek citizens have been living at the crossroads of three continents for thousands of years, trading, working and migrating across the globe." "Greece is a country with a rich cultural heritage and dynamic leadership globally in the tourism industry. It places particular value on the importance of this Initiative, through people-to-people contacts, cultural exchanges and tourism. This year is the year of cultural exchanges between Greece and China. A few weeks ago there was close cooperation in the holding of the first Conference at Ministerial level of the Forum of Ancient Civilizations, while in the tourism sector, the direct air link between Greece and China will start very soon.
"As a leading maritime nation, seeking new avenues of commerce, Greece sees major Greek shipowners building their ships in China, while the largest port, the port of Piraeus saw a very significant investment by COSCO and is emerging as a global gateway to Europe for products originating from Chinese and other Asian ports, including those coming via the Suez Canal.
From the port of Piraeus, the goods can easily be transported by rail to numerous destinations in the Balkans and Central Europe. In this spirit, 2015 was the year of shipping between Greece and China, and China will be the main guest country at the International Exhibition of Thessaloniki this year, while great efforts have also been made for the development of new infrastructure projects in the region. "
Finally, on a diplomatic level, "this multilateral Forum lays the groundwork for significant new initiatives. Greece in every case is actively promoting ambitious diplomatic initiatives aimed at cooperation and dialogue, on the basis of international law, with all the countries in the wider region. And there are major opportunities for the establishment of tripartite relations around infrastructure projects in the Balkans and the Eastern Mediterranean.
In this context, Mr President, I would like once again to thank for today's very important forum and to stress the importance that Greece attaches to the development of the initiative of "One Belt – One Road"."
Greece-China Three -Year Investment Plan
Greece and China signed a “three-year action plan” for joint projects last weekend that will see Greece sharing in Beijing’s 100€ billion investment programme in the countries along the New Silk Road – the initiative entitled "One Belt – One Road".
The plan was a signed statement of intent concerning investments in transport, energy and telecommunications, “whose successful implementation could bring investments running into billions of euros,” according to Deputy Economy Minister Stergios Pitsiorlas, who signed the action plan on Greece’s behalf.
“There are investment plans on the table concerning the rail network, ports and airports, and stretching to telecom and energy network interconnections and investment in power plants, including those using renewable energy sources,” added Deputy Minister Pitsiorlas.
In his meeting with Greek Prime Minister Alexis Tsipras on Saturday, Chinese President Xi Jinping issued a call to Greek and Chinese enterprises to expand cooperation between the two countries in the domains of infrastructure, shipping and telecoms.
"Greece - after many years of serious crisis – is returning to the path of growth, opening up great opportunities for investment and trade"
A "sustainable initiative for the 21st century, built on the wisdom of the idea of ancient China, the Silk Road," is how Prime Minister Alexis Tsipras characterised the "One Belt – One Road" plan, speaking in China from the platform of the Forum of that name. He congratulated China and President Xi Jinping personally for his vision and his warm hospitality as the host of the Forum.
The Greek Prime Minister stressed "the great importance of such a vision in our time, especially at a time when everybody around this table is facing growing challenges at international and regional level - the economic and financial system, the movement of people and migration, security and regional stability. In these times-where the great temptation is to respond to the crises of globalization with greater isolationism, protectionism, raising walls - this initiative comes along to bring forth a vision of coherence, cooperation and dialogue across the length of Europe and Asia, but also in other regions of the world.
"Therefore, this initiative is a critical instrument for the expansion of economic development, trade and investment - with partnerships in investment and the boosting of trade, transport, energy and telecommunications networks through projects that can have a big impact on national economies. And so, on this basis, the Greek Government will actively support the countries participating in this initiative in their paying attention to fostering scientific and technological innovation, including the integration of small and medium-sized enterprises in global chains of value."
The Prime Minister said he was convinced that coordination with other regional frameworks such as the ASEM, EU-China Interface platform or the China Europe Land Sea Express Route will add further value to the Initiative. While all the time promoting an international trading system based on rules, it will be transparent and open to all, with the World Trade Organization at its core.
"What is particularly positive for us is that the objectives of the Initiative of "One Belt – One Road" are compatible with our own economic objectives at the regional level. And our dynamic, comprehensive, strategic cooperation with China sets a firm basis for us to work in that direction."
"Greece - after many years of serious crisis – is returning to the path of growth, opening up great opportunities for investment and trade"
"My country once again is in a position to take full advantage of its unique geopolitical identity, as a country of Europe, the Mediterranean, the Balkans and the wider Black Sea region as well as a maritime nation with the capabilities to promote its connections far beyond its neighborhood. In this context, Greece is expanding its role as an important regional hub in the areas of trade, transport, energy, telecommunications, security, culture and tourism.
"Greek citizens have been living at the crossroads of three continents for thousands of years, trading, working and migrating across the globe." "Greece is a country with a rich cultural heritage and dynamic leadership globally in the tourism industry. It places particular value on the importance of this Initiative, through people-to-people contacts, cultural exchanges and tourism. This year is the year of cultural exchanges between Greece and China. A few weeks ago there was close cooperation in the holding of the first Conference at Ministerial level of the Forum of Ancient Civilizations, while in the tourism sector, the direct air link between Greece and China will start very soon.
"As a leading maritime nation, seeking new avenues of commerce, Greece sees major Greek shipowners building their ships in China, while the largest port, the port of Piraeus saw a very significant investment by COSCO and is emerging as a global gateway to Europe for products originating from Chinese and other Asian ports, including those coming via the Suez Canal.
From the port of Piraeus, the goods can easily be transported by rail to numerous destinations in the Balkans and Central Europe. In this spirit, 2015 was the year of shipping between Greece and China, and China will be the main guest country at the International Exhibition of Thessaloniki this year, while great efforts have also been made for the development of new infrastructure projects in the region. "
Finally, on a diplomatic level, "this multilateral Forum lays the groundwork for significant new initiatives. Greece in every case is actively promoting ambitious diplomatic initiatives aimed at cooperation and dialogue, on the basis of international law, with all the countries in the wider region. And there are major opportunities for the establishment of tripartite relations around infrastructure projects in the Balkans and the Eastern Mediterranean.
In this context, Mr President, I would like once again to thank for today's very important forum and to stress the importance that Greece attaches to the development of the initiative of "One Belt – One Road"."
Greece-China Three -Year Investment Plan
Greece and China signed a “three-year action plan” for joint projects last weekend that will see Greece sharing in Beijing’s 100€ billion investment programme in the countries along the New Silk Road – the initiative entitled "One Belt – One Road".
The plan was a signed statement of intent concerning investments in transport, energy and telecommunications, “whose successful implementation could bring investments running into billions of euros,” according to Deputy Economy Minister Stergios Pitsiorlas, who signed the action plan on Greece’s behalf.
“There are investment plans on the table concerning the rail network, ports and airports, and stretching to telecom and energy network interconnections and investment in power plants, including those using renewable energy sources,” added Deputy Minister Pitsiorlas.
In his meeting with Greek Prime Minister Alexis Tsipras on Saturday, Chinese President Xi Jinping issued a call to Greek and Chinese enterprises to expand cooperation between the two countries in the domains of infrastructure, shipping and telecoms.
Government begins to implement its strategic plan
13.5.2017
Education Reform
“We believe that all Greek people have the right to a modern public education system,” Prime Minister Alexis Tsipras said on visiting the Ministry of Education.
“We believe that all Greek people have the right to a modern public education system,” Prime Minister Alexis Tsipras said on visiting the Ministry of Education.
He was visiting the Ministry in order to announce the changes in the education system that will be applied within the next three years. He said that education will be centered on learning and not examinations.
The changes in the education system are based on five pillars:
1. Strengthening elementary schools.
2. Upgrading the importance of high school
3. Improving the examination system for admission to universities
4. Improving junior and technical colleges with more resources and changes
5. Investing in research and technical knowledge
“Starting in September, the all-day school system will apply in all elementary schools, all 830 of them in every corner of our country,” he said. He also announced that the new system will have 14 years of compulsory education starting with pre-nursery school and nursery school. “No child age 4 and up will be left out of school, even in the most remote village.”
Furthermore, he said that the number of pupils in each class will be reduced and in two years there will be no class with more than 22 students.
He also reiterated a recent statement by Education Minister Costas Gavroglou that there will be major changes in the curriculum, particularly in History, Religion and Technical courses.
There will be major change in the university and college entry examination system: “We are going through a radical upgrading of the last two grades of high school that will lead to the abolition of entry exams.”
The Prime Minister also announced that in the coming days the Government will bring to Parliament a bill on higher education, which will enable students who have no financial means to attend free postgraduate programmes. In addition, he referred to changes in university administration management, with “increased participation” by students.
Also the Ministry will establish the University of Western Attica through the merger of the Technological Educational Institutions of Athens and Piraeus, which will provide two-year European professional qualification programmes for graduates of vocational high schools.
The changes in the education system are based on five pillars:
1. Strengthening elementary schools.
2. Upgrading the importance of high school
3. Improving the examination system for admission to universities
4. Improving junior and technical colleges with more resources and changes
5. Investing in research and technical knowledge
“Starting in September, the all-day school system will apply in all elementary schools, all 830 of them in every corner of our country,” he said. He also announced that the new system will have 14 years of compulsory education starting with pre-nursery school and nursery school. “No child age 4 and up will be left out of school, even in the most remote village.”
Furthermore, he said that the number of pupils in each class will be reduced and in two years there will be no class with more than 22 students.
He also reiterated a recent statement by Education Minister Costas Gavroglou that there will be major changes in the curriculum, particularly in History, Religion and Technical courses.
There will be major change in the university and college entry examination system: “We are going through a radical upgrading of the last two grades of high school that will lead to the abolition of entry exams.”
The Prime Minister also announced that in the coming days the Government will bring to Parliament a bill on higher education, which will enable students who have no financial means to attend free postgraduate programmes. In addition, he referred to changes in university administration management, with “increased participation” by students.
Also the Ministry will establish the University of Western Attica through the merger of the Technological Educational Institutions of Athens and Piraeus, which will provide two-year European professional qualification programmes for graduates of vocational high schools.
Health Service Reforms
239 Urban Health Centres to provide Primary Health Care
On Wednesday during his visit to Thessaloniki, the Prime Minister announced the creation of 239 Urban Health Centres to provide Primary Health Care. The aim is to set up the Health Centres by the end of the year, employing 3,000 family doctors and nursing staff. The first 60 are to start operating by the summer; poorer areas will be prioritized.
"For too many years, Governments have forgotten to visit those districts, have forgotten they exist. When I said that I would come to Thessaloniki I did not mean the city centre but I find myself in those areas so I can at the side of citizens so that we can struggle together with them."
"These Health Centres should have been created in the period of the Olympic Games, of the stock market, of armament spending, all of which let us not forget bankrupted the country. They are being created today despite the fact that we are governing in conditions of strict budgetary adjustment."
He spoke of "revolutionary movement in the area of health" that changes the map of primary care and is designed solely with the protection of the public interest in mind.
"When people hear about “reforms”, they are worried instead of being enthusiastic. Primary health care is a reform with social imprint."
"What I would like to be the legacy of the SYRIZA-ANEL Government is a very substantial flagship reform in health - primary health care. Announcing the establishment of 14 Health Centre in Thessaloniki, the Prime Minister said that by the end of the year 239 such units will be in operation throughout the country.
Some have emerged as beneficiaries of the absence of primary health care provision, and today we are waging huge battles to keep the public hospitals working. The hospital in Santorini was kept closed by those who wanted to subsidise private clinics. Today, the hospital in Zakynthos does not accept surgeons who seek to work privately.
There is no rejoicing at these reforms by those who have an interest in the development of private diagnostic centres which have developed rapidly in the country in recent years, as the demand for drugs has rapidly grown … We have no bias against the private sector, we want to work with rules, as in every states in the world. Our commitment is unfettered access to the Health system and for every last citizen.
Alexis Tsipras mentioned the "draining away" of young scientists abroad, saying that "we are waging a battle to stop it" and addressing young doctors, he said: I want to take this opportunity to address the doctors who are finishing their training and are now taking up their specialisms to put their faith in this important health reform and to stay here.
The conditions are difficult; our predecessors bequeathed us a country with empty coffers, planning for a leftwing blip. We took their budgets and we managed to increase spending on health." "No one is saying that we are in paradise, but we fought against the vested interests and we managed it and I want to thank the political leadership of the Ministry but mainly the doctors the nurses the hospital workers put up a fierce battle."
"When we hear that the primary health reform's is Soviet-style, when we hear from New Democracy’s sector chief that will change everything and will lay people off , we ignore them, because lately everything they hear is fake, fake countermeasures, the Cup to PAOK’s Cup win fake, fake health centers. What is fake is their sensitivity towards the people". He spoke about the "great jamboree in the health sector," adding that "everything will come to light".
"Our priority are the working-class areas of great need. Living there are those workers who do not have the ability to go to a private diagnostic Centre. 25 local health units will operate, 14 in Evosmos and in Kordelio, 7 in Tuba."
In closing Mr. Tsipras stressed: "There is no doubt, for two years we have been waging a difficult battle with the old system inside the country, but also outside. But I am convinced that in these days we have passed the last difficult headland, we know the major sacrifices, but, after 7 years, everyone of us can see where this hard road is leading. There is a horizon, there is a future perspective. Let the mass media carry on, our vision of concern and support for the Welfare State which they looted during the years of growth and did away with in the years of crisis, will succeed."
In 2014 Health Service expenditure on “advertising” was 6€ million.
"How much of the mass media have referred to the evidence which I tabled in Parliament about the jamboree in health and the “black” money?" wondered Mr.Polakis saying, The Deputy Minister of Health Pavlos Polakis underlined the fact that "one quarter of the public debt is the “black money” in health. The mass media did not speak about it because they have been bought off "' and he explained in detail how the triangle of vested interests operated.
"Some of the media are regularly bought off by the month "that is why today they present everything in Health as negative and say everything has been destroyed in the last two years when this Government has been in power," he added. "There are news sites in the health sector that only exist because they take advertising revenue from certain companies".
"Public bodies poured advertising money into a number of media organisations to give adulation to those companies." Mr. Polakis denounced specific sites and channels that were "fed" and mentioned particular journalists’ names, specific names which were uncovered by the General Accounts Office during a management audit of the Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ). "In 2014 6€ million went on advertising expenses. The reason they see destruction is that we have cut off their “grub”."
"On the other hand, no one speaks about the fact that the budget expenditure for health has been increased by 300€ million or that we brought the uninsured back into the health care system or that since October 2015, 7,500 people have been employed and another 11,000 are in the process of being appointed to the National Health Service (ΕΣΥ). "
Health Scandals' Commission of Inquiry
The Commission of Inquiry for the investigation of scandals in the health service during the period 1997-2014 is moving towards the opening of politicians’ bank accounts.
Following a proposal by SYRIZA MPs, members of the Commission will not take any payment for their participation in the meetings.
The work of the Commission will start with the scandal of the privatization of the Henry Dunant hospital, while the issue of "soaring expenditure on pharmaceuticals" will be examined after the complaints about the Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ). "Every act that directly or indirectly caused harm to the public" will be investigated, underlined Commission Chairman Antonis Balomenakis, pointing out that each witness will be called on a specific issue and the Commission will have the power to call them back.
The list of witnesses will be drawn up on Monday, but already former Health Minister and current PASOK MP Dimitris Kremastinos has asked to testify first. Among the witnesses will also be the former Health Minister Alekos Papadopoulos.
239 Urban Health Centres to provide Primary Health Care
On Wednesday during his visit to Thessaloniki, the Prime Minister announced the creation of 239 Urban Health Centres to provide Primary Health Care. The aim is to set up the Health Centres by the end of the year, employing 3,000 family doctors and nursing staff. The first 60 are to start operating by the summer; poorer areas will be prioritized.
"For too many years, Governments have forgotten to visit those districts, have forgotten they exist. When I said that I would come to Thessaloniki I did not mean the city centre but I find myself in those areas so I can at the side of citizens so that we can struggle together with them."
"These Health Centres should have been created in the period of the Olympic Games, of the stock market, of armament spending, all of which let us not forget bankrupted the country. They are being created today despite the fact that we are governing in conditions of strict budgetary adjustment."
He spoke of "revolutionary movement in the area of health" that changes the map of primary care and is designed solely with the protection of the public interest in mind.
"When people hear about “reforms”, they are worried instead of being enthusiastic. Primary health care is a reform with social imprint."
"What I would like to be the legacy of the SYRIZA-ANEL Government is a very substantial flagship reform in health - primary health care. Announcing the establishment of 14 Health Centre in Thessaloniki, the Prime Minister said that by the end of the year 239 such units will be in operation throughout the country.
Some have emerged as beneficiaries of the absence of primary health care provision, and today we are waging huge battles to keep the public hospitals working. The hospital in Santorini was kept closed by those who wanted to subsidise private clinics. Today, the hospital in Zakynthos does not accept surgeons who seek to work privately.
There is no rejoicing at these reforms by those who have an interest in the development of private diagnostic centres which have developed rapidly in the country in recent years, as the demand for drugs has rapidly grown … We have no bias against the private sector, we want to work with rules, as in every states in the world. Our commitment is unfettered access to the Health system and for every last citizen.
Alexis Tsipras mentioned the "draining away" of young scientists abroad, saying that "we are waging a battle to stop it" and addressing young doctors, he said: I want to take this opportunity to address the doctors who are finishing their training and are now taking up their specialisms to put their faith in this important health reform and to stay here.
The conditions are difficult; our predecessors bequeathed us a country with empty coffers, planning for a leftwing blip. We took their budgets and we managed to increase spending on health." "No one is saying that we are in paradise, but we fought against the vested interests and we managed it and I want to thank the political leadership of the Ministry but mainly the doctors the nurses the hospital workers put up a fierce battle."
"When we hear that the primary health reform's is Soviet-style, when we hear from New Democracy’s sector chief that will change everything and will lay people off , we ignore them, because lately everything they hear is fake, fake countermeasures, the Cup to PAOK’s Cup win fake, fake health centers. What is fake is their sensitivity towards the people". He spoke about the "great jamboree in the health sector," adding that "everything will come to light".
"Our priority are the working-class areas of great need. Living there are those workers who do not have the ability to go to a private diagnostic Centre. 25 local health units will operate, 14 in Evosmos and in Kordelio, 7 in Tuba."
In closing Mr. Tsipras stressed: "There is no doubt, for two years we have been waging a difficult battle with the old system inside the country, but also outside. But I am convinced that in these days we have passed the last difficult headland, we know the major sacrifices, but, after 7 years, everyone of us can see where this hard road is leading. There is a horizon, there is a future perspective. Let the mass media carry on, our vision of concern and support for the Welfare State which they looted during the years of growth and did away with in the years of crisis, will succeed."
In 2014 Health Service expenditure on “advertising” was 6€ million.
"How much of the mass media have referred to the evidence which I tabled in Parliament about the jamboree in health and the “black” money?" wondered Mr.Polakis saying, The Deputy Minister of Health Pavlos Polakis underlined the fact that "one quarter of the public debt is the “black money” in health. The mass media did not speak about it because they have been bought off "' and he explained in detail how the triangle of vested interests operated.
"Some of the media are regularly bought off by the month "that is why today they present everything in Health as negative and say everything has been destroyed in the last two years when this Government has been in power," he added. "There are news sites in the health sector that only exist because they take advertising revenue from certain companies".
"Public bodies poured advertising money into a number of media organisations to give adulation to those companies." Mr. Polakis denounced specific sites and channels that were "fed" and mentioned particular journalists’ names, specific names which were uncovered by the General Accounts Office during a management audit of the Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ). "In 2014 6€ million went on advertising expenses. The reason they see destruction is that we have cut off their “grub”."
"On the other hand, no one speaks about the fact that the budget expenditure for health has been increased by 300€ million or that we brought the uninsured back into the health care system or that since October 2015, 7,500 people have been employed and another 11,000 are in the process of being appointed to the National Health Service (ΕΣΥ). "
Health Scandals' Commission of Inquiry
The Commission of Inquiry for the investigation of scandals in the health service during the period 1997-2014 is moving towards the opening of politicians’ bank accounts.
Following a proposal by SYRIZA MPs, members of the Commission will not take any payment for their participation in the meetings.
The work of the Commission will start with the scandal of the privatization of the Henry Dunant hospital, while the issue of "soaring expenditure on pharmaceuticals" will be examined after the complaints about the Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ). "Every act that directly or indirectly caused harm to the public" will be investigated, underlined Commission Chairman Antonis Balomenakis, pointing out that each witness will be called on a specific issue and the Commission will have the power to call them back.
The list of witnesses will be drawn up on Monday, but already former Health Minister and current PASOK MP Dimitris Kremastinos has asked to testify first. Among the witnesses will also be the former Health Minister Alekos Papadopoulos.
Debt Relief
Greek Prime Minister Alexis Tsipras kept up his demand for debt relief from international lenders on Tuesday, saying Athens was close to securing a solution to ease its debt mountain but that creditors must meet their commitments.
"We are closer than ever to a substantial solution on debt relief," said PM Tsipras reiterating that Greece had already agreed to apply more austerity after its current bailout expires and it was the Lenders' turn to fulfill their promises of discussions about debt relief. "Τhe ball is no longer in our court."
The Government wants Eurozone Finance Ministers to approve the Second Assessment at a scheduled Eurogroup meeting on May 22nd - a key condition for unlocking vital loans - but also agree on a formula to make Greece’s debt sustainable in the medium-term and long term.
Debt sustainability is key for the European Central Bank and the IMF which has yet to announce whether it will join Greece's current programme.
The new measures agreed with Greece’s creditors in order to complete the Second bailout programme Assessment will be legislated on May 18th, the President of the Greek Parliament Nikos Voutsis announced on Monday.
Mr.Voutsis said that the measures and countermeasures will be tabled for debate on May 15th and the voting process by the full meeting of Parliament will be completed in two sessions on May 17th and 18th.
He said he is certain that all SYRIZA and ANEL MPs will vote for the measures and countermeasures. As for the countermeasures, he said that Opposition MPs will vote for some of them. He also said that, “The main opposition, New Democracy, will have a very big problem if they don’t vote for some countermeasures, especially those that have to do with [reducing Ed.] taxes.”
“When MP’s are called to vote they will have a clear picture of the measures and the debt,” Mr.Voutsis said. “Four days later the Eurogroup will be called upon to decide.”
Parliament is expected to vote on the new package of measures and counter measures by May 18th in time for the Eurozone meeting.
During his briefing of SYRIZA MPs on the multi-bill containing the reforms from the agreement with the Lenders, Euclid Tsakalotos announced a VAT reduction from 24% to 13% on agricultural supplies such as fertilizers, seeds, plants, etc. that are a significant cost of agricultural production. This has been a persistent demand of the farmers.
This change will take effect from 1st July this year.
As regards the planned tax arrangements, the Finance Minister pointed out that the reduction of the tax rate from 22% to 20% for individuals, it is essentially as if the tax-free allowance increases to 6,250€. "The agreement is neither white nor black." "We're not like New Democracy who brought back Memoranda without any countermeasures, Memoranda that ravaged the weaker sections."
"The official Opposition will find itself in a very difficult position with the countermeasures. How is it possible for New Democracy to complain about a 3.5% Primary Surplus target, when they had agreed to 4.5%?"
Greek Prime Minister Alexis Tsipras kept up his demand for debt relief from international lenders on Tuesday, saying Athens was close to securing a solution to ease its debt mountain but that creditors must meet their commitments.
"We are closer than ever to a substantial solution on debt relief," said PM Tsipras reiterating that Greece had already agreed to apply more austerity after its current bailout expires and it was the Lenders' turn to fulfill their promises of discussions about debt relief. "Τhe ball is no longer in our court."
The Government wants Eurozone Finance Ministers to approve the Second Assessment at a scheduled Eurogroup meeting on May 22nd - a key condition for unlocking vital loans - but also agree on a formula to make Greece’s debt sustainable in the medium-term and long term.
Debt sustainability is key for the European Central Bank and the IMF which has yet to announce whether it will join Greece's current programme.
The new measures agreed with Greece’s creditors in order to complete the Second bailout programme Assessment will be legislated on May 18th, the President of the Greek Parliament Nikos Voutsis announced on Monday.
Mr.Voutsis said that the measures and countermeasures will be tabled for debate on May 15th and the voting process by the full meeting of Parliament will be completed in two sessions on May 17th and 18th.
He said he is certain that all SYRIZA and ANEL MPs will vote for the measures and countermeasures. As for the countermeasures, he said that Opposition MPs will vote for some of them. He also said that, “The main opposition, New Democracy, will have a very big problem if they don’t vote for some countermeasures, especially those that have to do with [reducing Ed.] taxes.”
“When MP’s are called to vote they will have a clear picture of the measures and the debt,” Mr.Voutsis said. “Four days later the Eurogroup will be called upon to decide.”
Parliament is expected to vote on the new package of measures and counter measures by May 18th in time for the Eurozone meeting.
During his briefing of SYRIZA MPs on the multi-bill containing the reforms from the agreement with the Lenders, Euclid Tsakalotos announced a VAT reduction from 24% to 13% on agricultural supplies such as fertilizers, seeds, plants, etc. that are a significant cost of agricultural production. This has been a persistent demand of the farmers.
This change will take effect from 1st July this year.
As regards the planned tax arrangements, the Finance Minister pointed out that the reduction of the tax rate from 22% to 20% for individuals, it is essentially as if the tax-free allowance increases to 6,250€. "The agreement is neither white nor black." "We're not like New Democracy who brought back Memoranda without any countermeasures, Memoranda that ravaged the weaker sections."
"The official Opposition will find itself in a very difficult position with the countermeasures. How is it possible for New Democracy to complain about a 3.5% Primary Surplus target, when they had agreed to 4.5%?"
Second Assessment
Technical Level Agreement!
6.5.2017
On Tuesday at 6am, after the last round of negotiations with the heads of the Institutions’s Teams that lasted for 12 hours, Finance Minister Euclid Tsakalotos told reporters on Tuesday "There was white smoke. The negotiations for a technical deal were concluded on all issues... the way has now been paved for debt relief talks."
The 22nd May meeting of Eurozone Finance Ministers is required to approve the agreement. Reducing Greece's debt will also be discussed at that meeting.
Minister of Finance Euclid Tsakalotos noted that the technical agreement means that "on the one hand what the Greek Government has to do now is to implement it - either by primary or by secondary legislation - and on the other hand, in order to complete the agreement, the discussion must start on the sustainability of the debt".
"From tomorrow [Wednesday] the Government will be working at all levels both for the implementation of the programme, but also on its contribution to the second leg of the agreement. I am certain that there will now be a discussion about the debt. Because there is no excuse whatsoever that there is no agreement on the measures and countermeasures."
He said that there were compromises on both sides during the negotiations and that "with some things we're happy, with some things we are less happy". He added that "There were also positives, at one level they did not ask us for additional measures for 2018." "Obviously the countermeasures are positive."
According to the Minister, the issue of primary surpluses after 2018 "is in abeyance because in the context of the debate on debt, the primary surpluses are "the other side of the coin".
The Bills for the agreement and measures-countermeasures will be tabled in Parliament next week, in order for them to have been voted on by 13th May. Then the Bills will be translated and will be sent to the European Commission, in order for them to draw up the ' compliance report ' for the Euro Working Group and then the Eurogroup of 22nd May.
On Thursday the Euro Working Group (EWG) met to prepare for the Eurogroup meeting of Eurozone Finance Ministers on May 22nd. At the conclusion of the meeting, a joint statement was issued:
“The EWG evaluated the Second Assessment of the Greek European Stability Mechanism (ESM) programme. The EWG welcomes the preliminary agreement between the Greek Authorities and the Institutions on a policy package that will form the basis for completing the Second Assessment. Once the prerequisites have been implemented by Greece, the Eurogroup will be able to approve the policy package and the conditions for the next disbursement, and to resolve the viability of the Greek debt in the immediate future on the basis of the May 2016 agreement.”
Regarding the debt issue, Germany seems reluctant to agree on medium term debt relief measures before the bailout programme is completed in August 2018. The differences between Berlin and the International Monetary Fund remain as the IMF insists on immediate debt restructuring. Germany, however, does not want to commit to debt relief before its upcoming elections in September.
Minister of Finance Euclid Tsakalotos noted that the technical agreement means that "on the one hand what the Greek Government has to do now is to implement it - either by primary or by secondary legislation - and on the other hand, in order to complete the agreement, the discussion must start on the sustainability of the debt".
"From tomorrow [Wednesday] the Government will be working at all levels both for the implementation of the programme, but also on its contribution to the second leg of the agreement. I am certain that there will now be a discussion about the debt. Because there is no excuse whatsoever that there is no agreement on the measures and countermeasures."
He said that there were compromises on both sides during the negotiations and that "with some things we're happy, with some things we are less happy". He added that "There were also positives, at one level they did not ask us for additional measures for 2018." "Obviously the countermeasures are positive."
According to the Minister, the issue of primary surpluses after 2018 "is in abeyance because in the context of the debate on debt, the primary surpluses are "the other side of the coin".
The Bills for the agreement and measures-countermeasures will be tabled in Parliament next week, in order for them to have been voted on by 13th May. Then the Bills will be translated and will be sent to the European Commission, in order for them to draw up the ' compliance report ' for the Euro Working Group and then the Eurogroup of 22nd May.
On Thursday the Euro Working Group (EWG) met to prepare for the Eurogroup meeting of Eurozone Finance Ministers on May 22nd. At the conclusion of the meeting, a joint statement was issued:
“The EWG evaluated the Second Assessment of the Greek European Stability Mechanism (ESM) programme. The EWG welcomes the preliminary agreement between the Greek Authorities and the Institutions on a policy package that will form the basis for completing the Second Assessment. Once the prerequisites have been implemented by Greece, the Eurogroup will be able to approve the policy package and the conditions for the next disbursement, and to resolve the viability of the Greek debt in the immediate future on the basis of the May 2016 agreement.”
Regarding the debt issue, Germany seems reluctant to agree on medium term debt relief measures before the bailout programme is completed in August 2018. The differences between Berlin and the International Monetary Fund remain as the IMF insists on immediate debt restructuring. Germany, however, does not want to commit to debt relief before its upcoming elections in September.
PM Tsipras in Cabinet
Prime Minister Alexis Tsipras used Thursday’s cabinet meeting as an opportunity to defend the agreement, which he called “balanced and sustainable,” but also to make it clear that the coalition did not agree with many of the policies it will have to implement.
"The day after the formal completion of the Assessment, we begin the implementation of our strategic plan - a plan that unfolds over a six year timescale, the two years up to the next elections, in September 2019, and the four years which will follow that reckoning. That will be the first period for a decade that a Greek Government will be able to implement its project outside the vice of the Stewardship."
"September 2018 will mark the definitive implementation of the mandate that the Government received in September 2015: Let us be the ones who ensure a smooth and irreversible exit of the country from the period of Memoranda and of Stewardship."
The Government negotiated hard rather than adopt the demands of those who said it should sign whatever agreement the Institutions brought to it. In fact the Government sent a message to its partners that Greece has done its part and now expects them to comply with the decisions on solving the debt problem.
"Despite the IMF’s absurd demand for additional financial burdens after the end of the programme amounting to €4.5 billion, we reached an agreement which has zero fiscal impact."
"The Lenders are no friends of ours."
"However, let us not forget, the current agreement does not cease to be part of the framework from which we are struggling to extricate ourselves."
He noted that he is very aware of his responsibilities and fully aware of the situation: "The Lenders are no friends of ours. Neither were they in July of 2015, nor in May 2016, nor are they now. The Lenders, on the one hand, are trying to safeguard the money they lent to Greece and, on the other hand, have a particular model and strategy for how our economy and society should be organised. A single model that many times is in conflict with what the Government seeks for the country, for the economy and to meet social needs."
"We have, however, prioritized the fundamental objective. To take the country out of the Memoranda. To permanently end the period of humiliating Stewardship. This objective constitutes the foremost left, progressive and patriotic duty."
PM Tsipras said that the Government is not prepared to pursue this goal at any cost. "We never were devotees of the logic of "at all costs". We never listened to the voices that repeatedly called upon us to sign whatever agreement the Institutions brought. For this reason, we negotiated hard. In some places we retreated, but in many other, we managed to gain things that will give a breathing space to millions of our fellow citizens."
The Prime Minister explained why the technical agreement is balanced, referring to the restrictive measures and to the counter-measures. "The overall effect will be neutral, i.e. there won't be a single penny more austerity, always provided that we are within the targets of the programme."
As to the content of the Agreement, he noted:
-For 2019 the restrictive measures aim for the reduction of pension expenditure by 1%.
-For 2020 it was agreed to save 1% of GDP by reducing the tax-free threshold which will be re-configured so in 2020 it is on average 5,900€.
"In contrast to these, for the first time in concluding the Assessment, countermeasures of equal value are described for 2019 and 2020, provided that in 2018 the 3.5% primary surplus goal is achieved."
What the Government achieved in the negotiations
First and foremost on the question of energy, where we managed to keep the ΔΕΗ under public control and limited the sale of units to 40% of the lignite operations, i.e. approximately 10% of total production.
On the issue of contracted staff, on the one hand we managed to not cut down the number of those charged to the State budget and and on the other hand we managed to get exemption clauses introduced covering those recruited to meet the needs of the refugee crisis.
On the issue of public property, public companies and estate belonging to the Hellenic Republic Asset Development Fund (ΤΑΙΠΕΔ) have finally been included in Greek Holding and Property Company so we can now look at their use over and above selling them off.
The opening of shops on Sundays, where the demand was for a complete liberalisation, but we have ended up with a framework of Sunday opening in certain tourist areas.
Regarding the saving of 0.2% of GDP, which will take place in 2018, this had been agreed since last November and is to be accomplished without any negative social impact.
PM Tsipras explained that the Government reached this agreement, by providing, in essence, a statutory commitment to fiscal measures in 2019 and 2020, "because it was the best possible solution to break the deadlock caused by the attitude of the IMF".
"We made this difficult political choice, basically to get a discharge from the Stewardship and end the era of Memoranda that has left huge wounds in the country."
Achieving a technical agreement is the first crucial step to concluding the other important unfinished business, first and foremost the debt. It stands as a a whole - without a solution for the debt, the measures do not exist. By the meeting of the Eurogroup on May 22nd the medium-term measures for the debt must have been clearly specified."
"Greece has done its part and now it is up to everyone to assume their responsibilities and to comply with the decisions of last May".
PM Tsipras said that the specification of the medium-term measures on the debt is also the basic condition for Greece to gain access to the ECB's quantitative easing programme, noting that "already, delays, due to the unreasonable requirements mainly from the IMF in the negotiations, have cost the Greek economy dearly and we must quickly make up for lost ground."
Prime Minister Alexis Tsipras used Thursday’s cabinet meeting as an opportunity to defend the agreement, which he called “balanced and sustainable,” but also to make it clear that the coalition did not agree with many of the policies it will have to implement.
"The day after the formal completion of the Assessment, we begin the implementation of our strategic plan - a plan that unfolds over a six year timescale, the two years up to the next elections, in September 2019, and the four years which will follow that reckoning. That will be the first period for a decade that a Greek Government will be able to implement its project outside the vice of the Stewardship."
"September 2018 will mark the definitive implementation of the mandate that the Government received in September 2015: Let us be the ones who ensure a smooth and irreversible exit of the country from the period of Memoranda and of Stewardship."
The Government negotiated hard rather than adopt the demands of those who said it should sign whatever agreement the Institutions brought to it. In fact the Government sent a message to its partners that Greece has done its part and now expects them to comply with the decisions on solving the debt problem.
"Despite the IMF’s absurd demand for additional financial burdens after the end of the programme amounting to €4.5 billion, we reached an agreement which has zero fiscal impact."
"The Lenders are no friends of ours."
"However, let us not forget, the current agreement does not cease to be part of the framework from which we are struggling to extricate ourselves."
He noted that he is very aware of his responsibilities and fully aware of the situation: "The Lenders are no friends of ours. Neither were they in July of 2015, nor in May 2016, nor are they now. The Lenders, on the one hand, are trying to safeguard the money they lent to Greece and, on the other hand, have a particular model and strategy for how our economy and society should be organised. A single model that many times is in conflict with what the Government seeks for the country, for the economy and to meet social needs."
"We have, however, prioritized the fundamental objective. To take the country out of the Memoranda. To permanently end the period of humiliating Stewardship. This objective constitutes the foremost left, progressive and patriotic duty."
PM Tsipras said that the Government is not prepared to pursue this goal at any cost. "We never were devotees of the logic of "at all costs". We never listened to the voices that repeatedly called upon us to sign whatever agreement the Institutions brought. For this reason, we negotiated hard. In some places we retreated, but in many other, we managed to gain things that will give a breathing space to millions of our fellow citizens."
The Prime Minister explained why the technical agreement is balanced, referring to the restrictive measures and to the counter-measures. "The overall effect will be neutral, i.e. there won't be a single penny more austerity, always provided that we are within the targets of the programme."
As to the content of the Agreement, he noted:
-For 2019 the restrictive measures aim for the reduction of pension expenditure by 1%.
-For 2020 it was agreed to save 1% of GDP by reducing the tax-free threshold which will be re-configured so in 2020 it is on average 5,900€.
"In contrast to these, for the first time in concluding the Assessment, countermeasures of equal value are described for 2019 and 2020, provided that in 2018 the 3.5% primary surplus goal is achieved."
What the Government achieved in the negotiations
First and foremost on the question of energy, where we managed to keep the ΔΕΗ under public control and limited the sale of units to 40% of the lignite operations, i.e. approximately 10% of total production.
On the issue of contracted staff, on the one hand we managed to not cut down the number of those charged to the State budget and and on the other hand we managed to get exemption clauses introduced covering those recruited to meet the needs of the refugee crisis.
On the issue of public property, public companies and estate belonging to the Hellenic Republic Asset Development Fund (ΤΑΙΠΕΔ) have finally been included in Greek Holding and Property Company so we can now look at their use over and above selling them off.
The opening of shops on Sundays, where the demand was for a complete liberalisation, but we have ended up with a framework of Sunday opening in certain tourist areas.
Regarding the saving of 0.2% of GDP, which will take place in 2018, this had been agreed since last November and is to be accomplished without any negative social impact.
PM Tsipras explained that the Government reached this agreement, by providing, in essence, a statutory commitment to fiscal measures in 2019 and 2020, "because it was the best possible solution to break the deadlock caused by the attitude of the IMF".
"We made this difficult political choice, basically to get a discharge from the Stewardship and end the era of Memoranda that has left huge wounds in the country."
Achieving a technical agreement is the first crucial step to concluding the other important unfinished business, first and foremost the debt. It stands as a a whole - without a solution for the debt, the measures do not exist. By the meeting of the Eurogroup on May 22nd the medium-term measures for the debt must have been clearly specified."
"Greece has done its part and now it is up to everyone to assume their responsibilities and to comply with the decisions of last May".
PM Tsipras said that the specification of the medium-term measures on the debt is also the basic condition for Greece to gain access to the ECB's quantitative easing programme, noting that "already, delays, due to the unreasonable requirements mainly from the IMF in the negotiations, have cost the Greek economy dearly and we must quickly make up for lost ground."
The Positive Counter Measures
After the conclusion of the agreement with the Institutions, Government circles announced the Government’s positive countermeasures to be applied from 1st January 2019 and 2020.
These measures fall into two categories, spending and reducing taxes.
As regards expenditure, rent subsidies and increases in family allowances are included while on tax cuts, the reduction of rates for businesses and individuals, and also the reduction of the Property Tax (ΕΝΦΙΑ).
Specifically, it is envisaged a rental subsidy of an average grant approximately 1,000€ a year to 600,000 families.
In the list of counter-measures also included the creation of over 30,000 new jobs and a significant reduction of Solidarity Levy, which on incomes up to 30,000€ will be zero.
On child poverty, the aim is to enhance the benefit for the first and second child, at the same time strengthening support for three child and large families.
There will be an extension of the school meals programme in primary and secondary schools in areas with high unemployment and poverty. The aim is to cover 50% of the students of elementary and high school.
On nurseries, the target is to increase by 50% the total number of children of pre-school age (0-4) who will be able to enroll in free kindergartens.
Today 90,000 children benefit. In 2019 places will grow to 120,000 and to 135,000 in 2020. 1,200 new units will be created in 2019 and 600 new units in 2020, in addition to 2,800 units operating today.
Each unit accommodates up to 25 children.
Contributions to Medicine Expenditure
Currently the patient covers a percentage of the prescribed medicine, depending on their illness, at percentages amounting to 0%, 10% or 25%.
Currently there is a discount, across the population, depending on a person’s income:
-For incomes up to 700€ per month, contributions will be zero, regardless of the illness.
-For incomes from 700€ up to 1,200€ the contribution is reduced by 50%.
Over 30,000 new jobs will be created. The goal of the Programme is the reconstruction of the productive base and the halting of the flight of young scientists, the brain drain. The Programme will be addressed to the public and the private sector. The enterprise is committed to maintain the employee for six months after the end of the programme.
Free collective bargaining will be restored from September 1st 2018
Public Investment Programmes will be increased in agricultural production infrastructure (water supply, rural roads, irrigation channels, etc.) as well as programmes for energy saving buildings.
With regard to revenue, the tax rate for businesses will be reduced from 29% to 26%. Rates of taxation of individuals will be reduced from 22% to 20%.
The Property Tax will be reduced by 200€ million and there will be a redefinition, in the immediate future, of property prices on the basis of their commercial values.
The Solidarity Levy will be reduced. Annual contributions as a percentage of income will be
0-12,000€ 0% (0%) , 12,000-20,000€ 0% (down from 2.2%) , 20,001-30,000€ 0% (down from 5.0%)
30,001-40,000€ 5.0% (from 6.5%), 40,001-65,000€ 7.0% (from 7.5%) , 65,001-220,000€ 9.0% (same) 220,000€ and over 10% (same).
Tax Evasion
Greek Deputy Finance Minister Katerina Papanatsiou announced on Sunday that the Finance Ministry is currently arranging the introduction of mechanisms that will prevent tax evaders from erasing records of sales from their cash registers at the end of the day.
Deputy Minister Papanatsiou recently visited the German state of Brandenburg, whose government has developed a mechanism that does precisely that, and the Brandenburg authorities agreed to share the technical specifications of the mechanism with Greece.
The device is attached to cash registers and records all transactions, preventing all forms of tampering. Brandenburg state developed the system to combat high rates of tax evasion among freelance professionals, such as doctors and lawyers.
The Finance Ministry’s next step will be to link all wholesale trade transactions with the TAXIS system. The aim is to to implement the measure in 2018 and it will give tax authorities a picture of all wholesale transactions between businesses in real-time. This will allow extensive cross-checking of such transactions, thus tracing undeclared revenue and unpaid VAT.
Once this system is in place, it is intended to introduce a similar system linking cash registers in retail outlets directly to the TAXIS system, so all retail transactions can be monitored in real-time.
After the conclusion of the agreement with the Institutions, Government circles announced the Government’s positive countermeasures to be applied from 1st January 2019 and 2020.
These measures fall into two categories, spending and reducing taxes.
As regards expenditure, rent subsidies and increases in family allowances are included while on tax cuts, the reduction of rates for businesses and individuals, and also the reduction of the Property Tax (ΕΝΦΙΑ).
Specifically, it is envisaged a rental subsidy of an average grant approximately 1,000€ a year to 600,000 families.
In the list of counter-measures also included the creation of over 30,000 new jobs and a significant reduction of Solidarity Levy, which on incomes up to 30,000€ will be zero.
On child poverty, the aim is to enhance the benefit for the first and second child, at the same time strengthening support for three child and large families.
There will be an extension of the school meals programme in primary and secondary schools in areas with high unemployment and poverty. The aim is to cover 50% of the students of elementary and high school.
On nurseries, the target is to increase by 50% the total number of children of pre-school age (0-4) who will be able to enroll in free kindergartens.
Today 90,000 children benefit. In 2019 places will grow to 120,000 and to 135,000 in 2020. 1,200 new units will be created in 2019 and 600 new units in 2020, in addition to 2,800 units operating today.
Each unit accommodates up to 25 children.
Contributions to Medicine Expenditure
Currently the patient covers a percentage of the prescribed medicine, depending on their illness, at percentages amounting to 0%, 10% or 25%.
Currently there is a discount, across the population, depending on a person’s income:
-For incomes up to 700€ per month, contributions will be zero, regardless of the illness.
-For incomes from 700€ up to 1,200€ the contribution is reduced by 50%.
Over 30,000 new jobs will be created. The goal of the Programme is the reconstruction of the productive base and the halting of the flight of young scientists, the brain drain. The Programme will be addressed to the public and the private sector. The enterprise is committed to maintain the employee for six months after the end of the programme.
Free collective bargaining will be restored from September 1st 2018
Public Investment Programmes will be increased in agricultural production infrastructure (water supply, rural roads, irrigation channels, etc.) as well as programmes for energy saving buildings.
With regard to revenue, the tax rate for businesses will be reduced from 29% to 26%. Rates of taxation of individuals will be reduced from 22% to 20%.
The Property Tax will be reduced by 200€ million and there will be a redefinition, in the immediate future, of property prices on the basis of their commercial values.
The Solidarity Levy will be reduced. Annual contributions as a percentage of income will be
0-12,000€ 0% (0%) , 12,000-20,000€ 0% (down from 2.2%) , 20,001-30,000€ 0% (down from 5.0%)
30,001-40,000€ 5.0% (from 6.5%), 40,001-65,000€ 7.0% (from 7.5%) , 65,001-220,000€ 9.0% (same) 220,000€ and over 10% (same).
Tax Evasion
Greek Deputy Finance Minister Katerina Papanatsiou announced on Sunday that the Finance Ministry is currently arranging the introduction of mechanisms that will prevent tax evaders from erasing records of sales from their cash registers at the end of the day.
Deputy Minister Papanatsiou recently visited the German state of Brandenburg, whose government has developed a mechanism that does precisely that, and the Brandenburg authorities agreed to share the technical specifications of the mechanism with Greece.
The device is attached to cash registers and records all transactions, preventing all forms of tampering. Brandenburg state developed the system to combat high rates of tax evasion among freelance professionals, such as doctors and lawyers.
The Finance Ministry’s next step will be to link all wholesale trade transactions with the TAXIS system. The aim is to to implement the measure in 2018 and it will give tax authorities a picture of all wholesale transactions between businesses in real-time. This will allow extensive cross-checking of such transactions, thus tracing undeclared revenue and unpaid VAT.
Once this system is in place, it is intended to introduce a similar system linking cash registers in retail outlets directly to the TAXIS system, so all retail transactions can be monitored in real-time.
Alexis Tsipras on May Day
Despite the economic straitjacket imposed on Greece by its foreign creditors, the Government has made significant steps in enforcing labour regulations and clamping down on undeclared work, Prime Minister Alexis Tsipras said Monday in a statement to mark May Day.
“The economic bankruptcy and the crisis, resulting from the recessionary policies of the bailout agreements that followed, resulted in sky-high unemployment, growing insecurity and increasing labour flexibility,” PM Tsipras said.
"Let us bring back our young people, let us restore hope to Greek society" - that Prime Minister Alexis Tsipras’ message for May 1st Labour Day.
The new grand national objective for a Post-Memorandum era in our homeland is to heal the social wounds of the crisis, to win back work that has dignity and a future perspective, to bring back our young people looking for work abroad, to restore hope and a future perspective to Greek society and especially to the new generation.
"Just as 130 years ago, so today the struggles of the world of work are struggles for social progress and the prosperity of society. In Chicago, USA, in 1886, the workers struggled for the eight hour work day and for better conditions. Today at the global level, the world of work is under attack from the hegemony of neo-liberalism that worships profit and at its altar, demands policies that shrink labour costs in every way."
"In our country bankruptcy and crisis, with the recessional policies of the Memoranda that followed, resulted in unemployment, the spread of precarious employment and work flexibility.
The Government in the last two years, despite the suffocating Stewardship and blackmail, in striving for the implementation of labour legislation and the combating of undeclared work, having accomplished significant results.
We successfully waged the most difficult negotiating battle with our Lenders to restore free collective bargaining and the regulation of employment."
"Thanks to our alliances at the European political and trade union level and despite the opposition of the Parliamentary Opposition in Greece, which characterised our persistence as "obsessive ", as well as the remarkable indifference of the domestic trade union bureaucracy, we managed to win this battle for the benefit of working people.
We staved off the unreasonable demands for increasing the proportion of workers threatened by collective redundancies [before Government intervention Ed], demands for the right of employers to lock workers out. Soon we shall restore the principle of the expansion and more favourable arrangement of sectoral collective agreements, while we wage a coordinated daily battle against undeclared work, so all working people find themselves within the framework of the guarantees of the State.
The struggle, however, for the safeguarding of acquired labour rights and the protection of working people continues."
"After the conclusion of the Second Assessment, which brings us closer than ever to the exit from the Memoranda, we set as a strategic goal of our governance, equitable development. We set down, in this way, the foundations for reducing unemployment and creating new decently paid and high-quality jobs.
This will be the new great national goal of the Post Memoranda era in our country: To heal the social wounds of the crisis, to win back the world of work in terms of dignity and perspective for the future, to bring back our young people who are seeking work abroad, to restore hope and a future perspective to Greek society and especially to the new generation.
Have a good Labour Day and have good struggles!"
Despite the economic straitjacket imposed on Greece by its foreign creditors, the Government has made significant steps in enforcing labour regulations and clamping down on undeclared work, Prime Minister Alexis Tsipras said Monday in a statement to mark May Day.
“The economic bankruptcy and the crisis, resulting from the recessionary policies of the bailout agreements that followed, resulted in sky-high unemployment, growing insecurity and increasing labour flexibility,” PM Tsipras said.
"Let us bring back our young people, let us restore hope to Greek society" - that Prime Minister Alexis Tsipras’ message for May 1st Labour Day.
The new grand national objective for a Post-Memorandum era in our homeland is to heal the social wounds of the crisis, to win back work that has dignity and a future perspective, to bring back our young people looking for work abroad, to restore hope and a future perspective to Greek society and especially to the new generation.
"Just as 130 years ago, so today the struggles of the world of work are struggles for social progress and the prosperity of society. In Chicago, USA, in 1886, the workers struggled for the eight hour work day and for better conditions. Today at the global level, the world of work is under attack from the hegemony of neo-liberalism that worships profit and at its altar, demands policies that shrink labour costs in every way."
"In our country bankruptcy and crisis, with the recessional policies of the Memoranda that followed, resulted in unemployment, the spread of precarious employment and work flexibility.
The Government in the last two years, despite the suffocating Stewardship and blackmail, in striving for the implementation of labour legislation and the combating of undeclared work, having accomplished significant results.
We successfully waged the most difficult negotiating battle with our Lenders to restore free collective bargaining and the regulation of employment."
"Thanks to our alliances at the European political and trade union level and despite the opposition of the Parliamentary Opposition in Greece, which characterised our persistence as "obsessive ", as well as the remarkable indifference of the domestic trade union bureaucracy, we managed to win this battle for the benefit of working people.
We staved off the unreasonable demands for increasing the proportion of workers threatened by collective redundancies [before Government intervention Ed], demands for the right of employers to lock workers out. Soon we shall restore the principle of the expansion and more favourable arrangement of sectoral collective agreements, while we wage a coordinated daily battle against undeclared work, so all working people find themselves within the framework of the guarantees of the State.
The struggle, however, for the safeguarding of acquired labour rights and the protection of working people continues."
"After the conclusion of the Second Assessment, which brings us closer than ever to the exit from the Memoranda, we set as a strategic goal of our governance, equitable development. We set down, in this way, the foundations for reducing unemployment and creating new decently paid and high-quality jobs.
This will be the new great national goal of the Post Memoranda era in our country: To heal the social wounds of the crisis, to win back the world of work in terms of dignity and perspective for the future, to bring back our young people who are seeking work abroad, to restore hope and a future perspective to Greek society and especially to the new generation.
Have a good Labour Day and have good struggles!"
Second Assessment:
Technical Level Talks resume
29.04.2017
There was no mention of Greece in the press conference held on the second day of the IMF Spring Meeting in Washington last weekend. The IMF appears to be continuing to refuse to sign up to the debt bailout deal. IMF top officials reportedly repeated the standing position of the IMF that the programme must be based on two legs – credible reforms and debt relief – in order for the Fund to participate in the programme.
"It is urgent that we agree on a programme and that we conclude these discussions because it's taking a toll on the Greek economy," Poul Thomsen, head of the IMF's European department, said. "There is no doubt about that, it's serious," he told reporters.
Officials representing Greece’s lenders returned to in Athens last week to resume direct talks with the Government. The latest “unofficial deadline” for a Staff Level Agreement is the Eurogroup meeting on May 22nd. Greek Government sources point out that Athens will not implement any austerity measures agreed unless debt relief is offered in the medium-term.
The IMF and the European Lenders appear to have moved closer on the debt issue during talks in Washington, but a comprehensive agreement has not yet been reached. Eurogroup chief Jeroen Dijsselbloem told Bloomberg in an interview that “debt talks are tough” because of political constraints in Europe, but “I can see the solution ahead”. He added that “we are very close, it is really the last stretch before we have a full agreement on the major reforms, how they are to be designed and when they are to be implemented and the size of them, with the IMF”.
Although there was a broad agreement between the government and the creditors at the Eurogroup in Malta earlier this month over what needs to be done, there are several details that need to be ironed out. Once the SLA has been secured, the Government will have to pass, including pension cuts and a reduction to the tax-free threshold, through Parliament.
The Government’s spokesman, Dimitris Tzanakopoulos, indicated last week that the vote would take place on the new measures and the Government’s counter measures in the first half of May. He said that the Government wants everything, including the debt relief scheme, to be wrapped up by May 22nd for the next Eurogroup.
With Greece burdened by a debt load of more than €300 billion, the IMF insists on debt forgiveness by European institutions as the only way to put Greece on a sustainable path. Germany, however, has rejected calls for outright debt forgiveness, saying such a step would violate European rules and create a dangerous precedent. Under its guidelines, the IMF can’t commit any resources to a bailout programme until it is convinced of the country’s medium-term prospects. Non-European members of the IMF’s board are reluctant to do more without debt relief.
Germany remains the biggest obstacle. With national elections set for late September, fear of electoral repercussions means the German Government is refusing to back down and agree to a debt deal.
At the same time, German Chancellor Angela Merkel’s Government needs to get the IMF on board. When Germany endorsed Greece’s latest bailout in 2015, it did so on the condition that the IMF would join at some point. Mrs. Merkel’s conservative backbenchers want IMF oversight and IMF money involved. Other countries, including the Netherlands and Finland, also want the IMF to participate.
During the IMF Spring Meeting, Finance Minister Euclid Tsakalotos held talks with key figures, IMF Managing Director Christine Lagarde and his German counterpart Wolfgang Schaeuble, in Washington. Sources said that during the meeting, Mrs. Lagarde acknowledged that the Greek Government had agreed to the measures the IMF wanted and that it is now time for Greece to get something back with regards to debt.
Following his 40-minute meeting with Minister Tsakalotos, German Finance Minister Schaeuble stressed again that Greece will have to adopt more measures if it does not meet its fiscal targets in the future.
Primary Surplus reached 3.9% of GDP in 2016
After months of claim and counter-claim, the Hellenic Statistical Authority (ELSTAT) announced that the general government primary surplus reached 3.9% of GDP last year. The target agreed with the lenders for 2016 was 0.5%.
This figure is regarded as impressive, especially when continuing capital controls hindered economic activity and that an economic growth spurt faltered as a result of the uncertainty over whether there would be an agreement between Greece and its creditors on how to conclude the Second Assessment of the Greek programme.
One of the key disagreements in those protracted negotiations was over fiscal targets. The IMF doubted that Greece could reach the 3.5% of GDP goal it was set for 2018 and the medium-term beyond without additional measures. The IMF also argued that such a high target should not be kept for too long because it is unrealistic and damaging for the economy.
The compromise “Agreement in Principle” saw Greece adopt another 2% of GDP (or 3.6€ billion) in new fiscal measures, half in 2019 and the rest in 2020, to ensure that the 3.5% primary surplus target is attainable, while, for its part, the Eurozone will provide medium-term debt relief and limit the high fiscal targets demanded to just a few years (less than five, it is thought) before they drop to levels that the IMF considers more sustainable.
The figures published by ELSTAT on Friday suggest that there was little basis in economic reality for the IMF to dispute the Eurozone lenders’ fiscal forecasts for Greece.
A day before the 2016 primary surplus figure was made public, the IMF issued its Fiscal Monitor report, in which the Washington-based organisation made a timely revision of its forecast for last year. In the previous Fiscal Monitor, published last October, the IMF had predicted that Greece’s primary surplus in 2016 would reach just 0.1% of GDP. On Thursday, it put the same number at 3.3%, which represented a huge revision and one that was much closer to the figure produced by ELSTAT.
In comments to journalists in Washington on Friday, the Director of the IMF’s European Department, Poul Thomsen, suggested that the IMF may have overestimated the impact that capital controls would have on the Greek economy, causing its fiscal forecasts to be much more pessimistic than the ones made by the European creditors.
However, there is concern that pursuing these large surpluses is a severe obstacle to economic development. Enduring such extreme fiscal adjustment since 2010, against the backdrop of a deep recession, for Greece to still be producing a primary surplus of 3.9% of GDP seven years later is seen as an incredible achievement. It has also been immensely damaging.
Greece’s public finances have been brought under control but at the cost of choking the life out of the local economy. The fiscal targets have been met and exceeded by paring back public spending and piling more taxes onto individuals and businesses that have seen their wealth and resources dwindle over the last seven years.
Recent data released by the Independent Authority for Public Revenue provided an insight into the changes in personal income tax declarations and payments over recent years. Despite a 9% increase in the number of taxpayers between 2010 and 2016, and taxes due increased by 10%, declared income during this period fell by 23.3%. The average income registered with tax authorities in 2010 was 17,241€ euros but by 2015, it had dropped to 12,133€, with all types of income-earners, from salaried employees to pensioners and farmers, deeply affected.
Officials representing Greece’s lenders returned to in Athens last week to resume direct talks with the Government. The latest “unofficial deadline” for a Staff Level Agreement is the Eurogroup meeting on May 22nd. Greek Government sources point out that Athens will not implement any austerity measures agreed unless debt relief is offered in the medium-term.
The IMF and the European Lenders appear to have moved closer on the debt issue during talks in Washington, but a comprehensive agreement has not yet been reached. Eurogroup chief Jeroen Dijsselbloem told Bloomberg in an interview that “debt talks are tough” because of political constraints in Europe, but “I can see the solution ahead”. He added that “we are very close, it is really the last stretch before we have a full agreement on the major reforms, how they are to be designed and when they are to be implemented and the size of them, with the IMF”.
Although there was a broad agreement between the government and the creditors at the Eurogroup in Malta earlier this month over what needs to be done, there are several details that need to be ironed out. Once the SLA has been secured, the Government will have to pass, including pension cuts and a reduction to the tax-free threshold, through Parliament.
The Government’s spokesman, Dimitris Tzanakopoulos, indicated last week that the vote would take place on the new measures and the Government’s counter measures in the first half of May. He said that the Government wants everything, including the debt relief scheme, to be wrapped up by May 22nd for the next Eurogroup.
With Greece burdened by a debt load of more than €300 billion, the IMF insists on debt forgiveness by European institutions as the only way to put Greece on a sustainable path. Germany, however, has rejected calls for outright debt forgiveness, saying such a step would violate European rules and create a dangerous precedent. Under its guidelines, the IMF can’t commit any resources to a bailout programme until it is convinced of the country’s medium-term prospects. Non-European members of the IMF’s board are reluctant to do more without debt relief.
Germany remains the biggest obstacle. With national elections set for late September, fear of electoral repercussions means the German Government is refusing to back down and agree to a debt deal.
At the same time, German Chancellor Angela Merkel’s Government needs to get the IMF on board. When Germany endorsed Greece’s latest bailout in 2015, it did so on the condition that the IMF would join at some point. Mrs. Merkel’s conservative backbenchers want IMF oversight and IMF money involved. Other countries, including the Netherlands and Finland, also want the IMF to participate.
During the IMF Spring Meeting, Finance Minister Euclid Tsakalotos held talks with key figures, IMF Managing Director Christine Lagarde and his German counterpart Wolfgang Schaeuble, in Washington. Sources said that during the meeting, Mrs. Lagarde acknowledged that the Greek Government had agreed to the measures the IMF wanted and that it is now time for Greece to get something back with regards to debt.
Following his 40-minute meeting with Minister Tsakalotos, German Finance Minister Schaeuble stressed again that Greece will have to adopt more measures if it does not meet its fiscal targets in the future.
Primary Surplus reached 3.9% of GDP in 2016
After months of claim and counter-claim, the Hellenic Statistical Authority (ELSTAT) announced that the general government primary surplus reached 3.9% of GDP last year. The target agreed with the lenders for 2016 was 0.5%.
This figure is regarded as impressive, especially when continuing capital controls hindered economic activity and that an economic growth spurt faltered as a result of the uncertainty over whether there would be an agreement between Greece and its creditors on how to conclude the Second Assessment of the Greek programme.
One of the key disagreements in those protracted negotiations was over fiscal targets. The IMF doubted that Greece could reach the 3.5% of GDP goal it was set for 2018 and the medium-term beyond without additional measures. The IMF also argued that such a high target should not be kept for too long because it is unrealistic and damaging for the economy.
The compromise “Agreement in Principle” saw Greece adopt another 2% of GDP (or 3.6€ billion) in new fiscal measures, half in 2019 and the rest in 2020, to ensure that the 3.5% primary surplus target is attainable, while, for its part, the Eurozone will provide medium-term debt relief and limit the high fiscal targets demanded to just a few years (less than five, it is thought) before they drop to levels that the IMF considers more sustainable.
The figures published by ELSTAT on Friday suggest that there was little basis in economic reality for the IMF to dispute the Eurozone lenders’ fiscal forecasts for Greece.
A day before the 2016 primary surplus figure was made public, the IMF issued its Fiscal Monitor report, in which the Washington-based organisation made a timely revision of its forecast for last year. In the previous Fiscal Monitor, published last October, the IMF had predicted that Greece’s primary surplus in 2016 would reach just 0.1% of GDP. On Thursday, it put the same number at 3.3%, which represented a huge revision and one that was much closer to the figure produced by ELSTAT.
In comments to journalists in Washington on Friday, the Director of the IMF’s European Department, Poul Thomsen, suggested that the IMF may have overestimated the impact that capital controls would have on the Greek economy, causing its fiscal forecasts to be much more pessimistic than the ones made by the European creditors.
However, there is concern that pursuing these large surpluses is a severe obstacle to economic development. Enduring such extreme fiscal adjustment since 2010, against the backdrop of a deep recession, for Greece to still be producing a primary surplus of 3.9% of GDP seven years later is seen as an incredible achievement. It has also been immensely damaging.
Greece’s public finances have been brought under control but at the cost of choking the life out of the local economy. The fiscal targets have been met and exceeded by paring back public spending and piling more taxes onto individuals and businesses that have seen their wealth and resources dwindle over the last seven years.
Recent data released by the Independent Authority for Public Revenue provided an insight into the changes in personal income tax declarations and payments over recent years. Despite a 9% increase in the number of taxpayers between 2010 and 2016, and taxes due increased by 10%, declared income during this period fell by 23.3%. The average income registered with tax authorities in 2010 was 17,241€ euros but by 2015, it had dropped to 12,133€, with all types of income-earners, from salaried employees to pensioners and farmers, deeply affected.
PM Tsipras: Greece Ready to Legislate Reforms Depending on Debt Relief
During a television interview on Tuesday, PM Alexis Tsipras underlined the Government’s willingness to legislate the additional reforms demanded by its lenders but their implementation in 2019 and 2020 depends on securing debt relief.
“We will obviously legislate the measures in order to secure a deal on debt relief,” he stated, saying that he wanted a solution to Greece’s debt burden by the end of May.
“They won’t be implemented… unless we get a solution on debt,” he said, adding that “a sovereign government can take back something it has voted on if an agreement is not honored,” he said, noting that the only reason coalition MPs will approve a new agreement is to secure debt relief.
During the interview, Mr. Tsipras pointed out that there is a substantial discrepancy between the reality and the IMF’s forecasts in October 2016, when the Second Assessment should have been completed. He stressed that the final figure for the primary surplus published in April was 42 times higher than the 0.1% of GDP forecast made by the IMF.
“This means that they were asking us for 42 times more measures [than necessary Ed]. This is the pressure we were up against all this time,” the Prime Minister said.
When asked about countermeasures, and how “these don’t mean anything to the pensioner”, he said:
"Let’s not undermine the countermeasures. They are 2% of GDP, as much as the burden. They have to do with the non-existence of the welfare state, with a reduction in tax rates, a reduction in the solidarity levy and with support for the welfare state, for rent, childcare, and so on. It is also about a reduction in ENFIA (Single Property Tax)". PM Tsipras added that everything that is being discussed “is always on the assumption that we will be within our [fiscal] targets”.
When asked about the seizure of bank deposits for debts to the state, he admitted that this was a serious problem. He pointed out that the General Secretariat for Public Revenues was an independent authority with which the Government “has good cooperation and discusses matters, so that there is moderation and those that are unable are protected.”
The Prime Minister agreed that tax rates are high, but noted that this was true under the previous Government and added: "I thank God that we were able to reach this surplus; if we had not achieved it, we would have been a ping pong ball going back and forth between IMF chief Christine Lagarde and German Finance Minister Wolfgang Schaeuble."
PM Tsipras defended his Government’s performance in the negotiations despite vehement criticism by the Opposition, which, he insisted, has offered no viable alternative.
"We inherited a bankrupt country," he said. "We had a negotiation. We lost on some points, but we also won on others, such as the countermeasures and labour relations," he said, adding: "They asked us for an increase in mass redundancies and lock-outs. We managed to isolate the IMF through the mechanism of politicizing the deal."
"I have said that we were a guinea pig and I am not saying that Greek Governments were not to blame, but it is not the fault of the Greek people. It was imperative for the political forces to put an end to the country’s misadventure following 2010."
Finally, regarding the completion of the Second Assessment, the Prime Minister said that Greece had already achieved a political agreement and expressed his firm conviction that there would also be a Staff-Level Agreement by May 22nd followed by an agreement for alleviating Greece’s debt burden.
"SYRIZA is a force that could not stand up for a minute if it did not have social acceptance. We did not accept bribes. We did not take out high risk, high interest loans. We are not the descendants of Byzantine Emperors”, he said.
During a television interview on Tuesday, PM Alexis Tsipras underlined the Government’s willingness to legislate the additional reforms demanded by its lenders but their implementation in 2019 and 2020 depends on securing debt relief.
“We will obviously legislate the measures in order to secure a deal on debt relief,” he stated, saying that he wanted a solution to Greece’s debt burden by the end of May.
“They won’t be implemented… unless we get a solution on debt,” he said, adding that “a sovereign government can take back something it has voted on if an agreement is not honored,” he said, noting that the only reason coalition MPs will approve a new agreement is to secure debt relief.
During the interview, Mr. Tsipras pointed out that there is a substantial discrepancy between the reality and the IMF’s forecasts in October 2016, when the Second Assessment should have been completed. He stressed that the final figure for the primary surplus published in April was 42 times higher than the 0.1% of GDP forecast made by the IMF.
“This means that they were asking us for 42 times more measures [than necessary Ed]. This is the pressure we were up against all this time,” the Prime Minister said.
When asked about countermeasures, and how “these don’t mean anything to the pensioner”, he said:
"Let’s not undermine the countermeasures. They are 2% of GDP, as much as the burden. They have to do with the non-existence of the welfare state, with a reduction in tax rates, a reduction in the solidarity levy and with support for the welfare state, for rent, childcare, and so on. It is also about a reduction in ENFIA (Single Property Tax)". PM Tsipras added that everything that is being discussed “is always on the assumption that we will be within our [fiscal] targets”.
When asked about the seizure of bank deposits for debts to the state, he admitted that this was a serious problem. He pointed out that the General Secretariat for Public Revenues was an independent authority with which the Government “has good cooperation and discusses matters, so that there is moderation and those that are unable are protected.”
The Prime Minister agreed that tax rates are high, but noted that this was true under the previous Government and added: "I thank God that we were able to reach this surplus; if we had not achieved it, we would have been a ping pong ball going back and forth between IMF chief Christine Lagarde and German Finance Minister Wolfgang Schaeuble."
PM Tsipras defended his Government’s performance in the negotiations despite vehement criticism by the Opposition, which, he insisted, has offered no viable alternative.
"We inherited a bankrupt country," he said. "We had a negotiation. We lost on some points, but we also won on others, such as the countermeasures and labour relations," he said, adding: "They asked us for an increase in mass redundancies and lock-outs. We managed to isolate the IMF through the mechanism of politicizing the deal."
"I have said that we were a guinea pig and I am not saying that Greek Governments were not to blame, but it is not the fault of the Greek people. It was imperative for the political forces to put an end to the country’s misadventure following 2010."
Finally, regarding the completion of the Second Assessment, the Prime Minister said that Greece had already achieved a political agreement and expressed his firm conviction that there would also be a Staff-Level Agreement by May 22nd followed by an agreement for alleviating Greece’s debt burden.
"SYRIZA is a force that could not stand up for a minute if it did not have social acceptance. We did not accept bribes. We did not take out high risk, high interest loans. We are not the descendants of Byzantine Emperors”, he said.
The Forum of Ancient Civilizations
"The cooperation of cultures is of the utmost necessity today against the darkness of those who want to plunge humanity into paranoia and hatred"
Prime Minister Alexis Tsipras characterised the Forum of Ancient Civilizations held in Athens as an important initiative launched by Greece with the participation of cultures which have left a significant footprint in history.
"Our pride unites us, but so also does the responsibility of a great cultural heritage, which does not belong to us exclusively, but it is the heritage of the whole of humanity," he said.
Our responsibility to build on the past, underlined Alexis Tsipras.
The Prime Minister went on to say "it is our steadfast belief that history, religion and culture can serve as bridges of understanding and communication, not as tools of oppression and extremism, not as well springs of hatred and conflict."
"It is of the utmost necessity to carry over to today the light of humanity’s greatness of spirit which our ancient civilizations radiated in the past. From Athens, under the shadow of the Acropolis, we send a very strong, very powerful message to humanity. It is a message of cooperation for world peace, mutual respect and mutual understanding."
"Our responsibility is not to stay stuck in the glorious past because in that way we are unable to build a vision for the future."
"The roots of Hellenism are deep," he noted and went on to stress that Greek foreign policy is predicated on dialogue, "we have a positive agenda in our bilateral relations".
Referring to the current situation with the war in Syria and the terrorist attacks to the fore, PM Tsipras stated: "Today we are completely inundated with negative developments. The solution, however, is not in retrenchment and isolationism, the solution lies in cooperation and collective action."
Health Scandals Inquiry
The health scandals over the period 1997-2015 are the first concern of the Commission of Inquiry that was formally established on Friday. The Commission is to consist of 23 members -11 SYRIZA, 5 New Democracy and one each from the remaining parties and the group of independent MPs.
There are three "sections" to be investigated in accordance with the decision of Parliament:
The second section to be looked at is expected to be the Centre for Disease Control & Prevention (ΚΕΕΛΠΝΟ) and after the issue of medicine pricing will be looked at.
This order of business will give extra time to the Judiciary to complete its investigation of the scandal of Novartis.
Action on Debts to the State
Tax Office confiscations for those who owe money to the Greek State are increasing rapidly. In the first two months of this year 33,933 taxpayers with debts over 500€ euros had money withheld from their salaries, pensions, bank accounts or had their real estate property seized.
According to data from the newly established Independent Public Revenue Authority (AADE), in 2016, there were 140,000 confiscations for debts to the state. AADE figures show that more and more Greek taxpayers are unable to meet their tax obligations. In the first two months of 2017, Greeks failed to pay taxes amounting to 2.6€ billion. In total, 4 million taxpayers owe about 94€ billion to the Greek State.
"The cooperation of cultures is of the utmost necessity today against the darkness of those who want to plunge humanity into paranoia and hatred"
Prime Minister Alexis Tsipras characterised the Forum of Ancient Civilizations held in Athens as an important initiative launched by Greece with the participation of cultures which have left a significant footprint in history.
"Our pride unites us, but so also does the responsibility of a great cultural heritage, which does not belong to us exclusively, but it is the heritage of the whole of humanity," he said.
Our responsibility to build on the past, underlined Alexis Tsipras.
The Prime Minister went on to say "it is our steadfast belief that history, religion and culture can serve as bridges of understanding and communication, not as tools of oppression and extremism, not as well springs of hatred and conflict."
"It is of the utmost necessity to carry over to today the light of humanity’s greatness of spirit which our ancient civilizations radiated in the past. From Athens, under the shadow of the Acropolis, we send a very strong, very powerful message to humanity. It is a message of cooperation for world peace, mutual respect and mutual understanding."
"Our responsibility is not to stay stuck in the glorious past because in that way we are unable to build a vision for the future."
"The roots of Hellenism are deep," he noted and went on to stress that Greek foreign policy is predicated on dialogue, "we have a positive agenda in our bilateral relations".
Referring to the current situation with the war in Syria and the terrorist attacks to the fore, PM Tsipras stated: "Today we are completely inundated with negative developments. The solution, however, is not in retrenchment and isolationism, the solution lies in cooperation and collective action."
Health Scandals Inquiry
The health scandals over the period 1997-2015 are the first concern of the Commission of Inquiry that was formally established on Friday. The Commission is to consist of 23 members -11 SYRIZA, 5 New Democracy and one each from the remaining parties and the group of independent MPs.
There are three "sections" to be investigated in accordance with the decision of Parliament:
- The Centre for Disease Control & Prevention (ΚΕΕΛΠΝΟ)
- The pricing of medicines and
- The privatisation of the Henry Dynant Hospital Centre
The second section to be looked at is expected to be the Centre for Disease Control & Prevention (ΚΕΕΛΠΝΟ) and after the issue of medicine pricing will be looked at.
This order of business will give extra time to the Judiciary to complete its investigation of the scandal of Novartis.
Action on Debts to the State
Tax Office confiscations for those who owe money to the Greek State are increasing rapidly. In the first two months of this year 33,933 taxpayers with debts over 500€ euros had money withheld from their salaries, pensions, bank accounts or had their real estate property seized.
According to data from the newly established Independent Public Revenue Authority (AADE), in 2016, there were 140,000 confiscations for debts to the state. AADE figures show that more and more Greek taxpayers are unable to meet their tax obligations. In the first two months of 2017, Greeks failed to pay taxes amounting to 2.6€ billion. In total, 4 million taxpayers owe about 94€ billion to the Greek State.
IMF to discuss participation
in Greek Bailout
22.04.2017
Attention this week-end is focussed on the IMF’ Spring Meeting at which it is anticipated that decisions will be made regarding the participation of the IMF in the next Greek bailout programme.
Greek Finance Minister Euclid Tsakalotos and his deputy George Chouliarakis will attend the annual meeting in Washington (21st-23rd April). They will hold discussions, on the sidelines of the Summit, at which a compromise is expected between Europeans and the Fund over the debt issue, something that will bring the IMF back into the Greek programme.
Included in the “armoury” of the Greek Mission will be the level of the Primary Surplus reached in 2016 announced by ELSTAT on Friday. The Greek statistics office data showed that the country far exceeded its international lenders' budget demands, with a primary surplus of 3.9% of GDP last year. The target was 0.5%. This will create a positive carry over for the following years.
European Commissioner Pierre Moscovici welcomed the primary surplus data. “This should contribute to the will to take the steps that lie ahead to find a lasting and comprehensive solution,” he said on the sidelines of the IMF spring meeting.
French Economy Minister Michel Sapin was also optimistic. “I am quite confident that we will find, with the IMF and Germany, a solution that will help Greece and thus the EU to stabilize the situation.”
THE IMF’s View
"The number that came out this morning is well above what we have been projecting, what anybody has been projecting," said Poul Thomsen, the head of the IMF's European department.
The latest assessment has been delayed partly because the Eurozone and the IMF have been unable to agree on a common set of economic forecasts for Greece. Mr.Thomsen conceded that the IMF had been too pessimistic of late. "The reality is that for the first five years we were constantly wrong on one side - we constantly overestimated the fiscal reforms," he said. "It is true that in the last one-and-a-half years we have been consistently wrong on the other side. It is clear we did not fully understand, we were more wrong on assessing the impact of capital controls in 2015 and 2016 on the economy, we were too conservative about this, no doubt," he said.
[The IMF’s Fiscal Monitor report, prepared for its Spring Meeting, estimates that Greece will miss its Primary Surplus target for 2018 by 1.5%, opening a 2.7€ billion “gap” in the budget. The Greek Statistical Authority and Eurostat are forecasting a much better financial performance. Greek Government sources pointed out on Wednesday that the IMF has made wrong projections about Greece before. “There will be no additional measures for 2018,” stated the Greek Government spokesman regarding the IMF forecast for the primary surplus.
The IMF Fiscal Monitor report forecast a 3.3% Primary Surplus for 2016. ELSTAT on Friday announced a Primary Surplus of 3.9% of GDP.]
Mr. Thomsen continued "The issue is not the [current Ed.]targets but the credibility of targets being maintained over the medium term while the economy is growing."
He said the IMF would send experts to Athens next week to help finalise the reform package agreed in principle between Eurozone finance ministers and Greece two weeks ago in Malta.
However, he said, before the IMF would join the latest bailout programme for Greece, now shouldered by the Eurozone alone, Eurozone governments would have to give the Fund an idea of how long they expected Greece to maintain a primary surplus of 3.5% of GDP and what kind of debt relief Greece could expect after 2018. "We will not disburse before we have a deal on policies and on a credible debt strategy," Mr. Thomsen said.
IMF Managing Director Christine Lagarde said this week that the Greek economy could achieve a Primary Surplus of 1.5% of GDP in the long run rather than 3.5% as the EU institutions believe. “If the Europeans deem differently, then we need to take this into account. But we cannot adopt unreasonable predictions or build upon unjustified macroeconomic frameworks,” she said.
The USA will keep an “open mind” regarding the participation of the IMF in the Greek bailout programme, a senior US Treasury official said.
The Government’s "road map":
1. Completion of the technical agreement (SLA) that includes within a single reform programme both the positive and negative measures in 2019-2020.
2. Specification at the forthcoming Eurogroup of the medium-term measures on the debt, which will be applied after the end of the programme (September 2018). The specification of the measures on the debt and the feasibility study (DSA) by the IMF is a precondition for the participation of the Fund in the programme.
3. After the implementation of medium-term measures on the debt, both the measures and the countermeasures will be implemented as provided for in the agreement of Malta on 1st April.
The aim of the Government is to have completed everything by the Eurogroup on 22nd May (including medium-term debt measures) in order to pave the way for the inclusion of the country in the ECB's quantitative easing programme (QE). An extraordinary Eurogroup will have been called at the beginning of May, at which the go-ahead will be given for the completion of the technical level agreement and the specifying of the medium-term measures on the debt. Between the two meetings of Eurozone Finance Ministers, the package of the measures-countermeasures to be implemented in 2019 and 2020 will have been legislated on.
The Government has maintained that it will not bring new measures to parliament if an agreement on Greek debt relief is not reached.
Included in the “armoury” of the Greek Mission will be the level of the Primary Surplus reached in 2016 announced by ELSTAT on Friday. The Greek statistics office data showed that the country far exceeded its international lenders' budget demands, with a primary surplus of 3.9% of GDP last year. The target was 0.5%. This will create a positive carry over for the following years.
European Commissioner Pierre Moscovici welcomed the primary surplus data. “This should contribute to the will to take the steps that lie ahead to find a lasting and comprehensive solution,” he said on the sidelines of the IMF spring meeting.
French Economy Minister Michel Sapin was also optimistic. “I am quite confident that we will find, with the IMF and Germany, a solution that will help Greece and thus the EU to stabilize the situation.”
THE IMF’s View
"The number that came out this morning is well above what we have been projecting, what anybody has been projecting," said Poul Thomsen, the head of the IMF's European department.
The latest assessment has been delayed partly because the Eurozone and the IMF have been unable to agree on a common set of economic forecasts for Greece. Mr.Thomsen conceded that the IMF had been too pessimistic of late. "The reality is that for the first five years we were constantly wrong on one side - we constantly overestimated the fiscal reforms," he said. "It is true that in the last one-and-a-half years we have been consistently wrong on the other side. It is clear we did not fully understand, we were more wrong on assessing the impact of capital controls in 2015 and 2016 on the economy, we were too conservative about this, no doubt," he said.
[The IMF’s Fiscal Monitor report, prepared for its Spring Meeting, estimates that Greece will miss its Primary Surplus target for 2018 by 1.5%, opening a 2.7€ billion “gap” in the budget. The Greek Statistical Authority and Eurostat are forecasting a much better financial performance. Greek Government sources pointed out on Wednesday that the IMF has made wrong projections about Greece before. “There will be no additional measures for 2018,” stated the Greek Government spokesman regarding the IMF forecast for the primary surplus.
The IMF Fiscal Monitor report forecast a 3.3% Primary Surplus for 2016. ELSTAT on Friday announced a Primary Surplus of 3.9% of GDP.]
Mr. Thomsen continued "The issue is not the [current Ed.]targets but the credibility of targets being maintained over the medium term while the economy is growing."
He said the IMF would send experts to Athens next week to help finalise the reform package agreed in principle between Eurozone finance ministers and Greece two weeks ago in Malta.
However, he said, before the IMF would join the latest bailout programme for Greece, now shouldered by the Eurozone alone, Eurozone governments would have to give the Fund an idea of how long they expected Greece to maintain a primary surplus of 3.5% of GDP and what kind of debt relief Greece could expect after 2018. "We will not disburse before we have a deal on policies and on a credible debt strategy," Mr. Thomsen said.
IMF Managing Director Christine Lagarde said this week that the Greek economy could achieve a Primary Surplus of 1.5% of GDP in the long run rather than 3.5% as the EU institutions believe. “If the Europeans deem differently, then we need to take this into account. But we cannot adopt unreasonable predictions or build upon unjustified macroeconomic frameworks,” she said.
The USA will keep an “open mind” regarding the participation of the IMF in the Greek bailout programme, a senior US Treasury official said.
The Government’s "road map":
1. Completion of the technical agreement (SLA) that includes within a single reform programme both the positive and negative measures in 2019-2020.
2. Specification at the forthcoming Eurogroup of the medium-term measures on the debt, which will be applied after the end of the programme (September 2018). The specification of the measures on the debt and the feasibility study (DSA) by the IMF is a precondition for the participation of the Fund in the programme.
3. After the implementation of medium-term measures on the debt, both the measures and the countermeasures will be implemented as provided for in the agreement of Malta on 1st April.
The aim of the Government is to have completed everything by the Eurogroup on 22nd May (including medium-term debt measures) in order to pave the way for the inclusion of the country in the ECB's quantitative easing programme (QE). An extraordinary Eurogroup will have been called at the beginning of May, at which the go-ahead will be given for the completion of the technical level agreement and the specifying of the medium-term measures on the debt. Between the two meetings of Eurozone Finance Ministers, the package of the measures-countermeasures to be implemented in 2019 and 2020 will have been legislated on.
The Government has maintained that it will not bring new measures to parliament if an agreement on Greek debt relief is not reached.
"We need a
major political counterattack"
These are the key points from the Government Cabinet meeting on Thursday
“Tearing the Government machine, but also public debate, away from the topic of the negotiations on the Second Assessment is the Prime Minister’s first priority with the aim of reversing the negative climate in the political, economic and social life of the country over the next two years. In the Cabinet on Thursday the Prime Minister’s said "The Government, after the Second Assessment, is recovering the initiative within the country." "We need a major political counterattack" on the basis of four pillars: (a) economic growth –reduction of unemployment, (b) Changes to the State and institutions, c) Radical reforms with a progressive imprint, d) Perseverance in investigating all cases of previous years which continue to “overshadow” the country. Government projects are to be accelerated and their coordination improved; an action plan for the coming 3-5 months, which extend to Ministry level is being put in place.
This reorientation of the Government is due to two main reasons.
Firstly, there seems to be more than a little glimmer of hope for a successful conclusion of the negotiations, whose outcome is evaluated under the title "a defensible agreement". In addition, the overall agreement which is being shaped (the Assessment, the debt, the path of public finances after 2018, the stabilization of how the IMF will participate) is creating optimism that the country will not find itself again facing a completely new negotiation about the Greek programme, but rather assessments more akin to performance management.
Secondly, the Government knows well that it is not enough for the economy and society for there to be an end to the uncertainty posed by the negotiations, even if the compromise achieved is "tolerable". On the contrary, there is the need for very profound changes that will establish new foundations for the country. Indeed, this direction was expressed very intensely and publicly by all wings inside SYRIZA. The "Parallel Programme" as its title suggests, continues to express exactly this need.
The most crucial area is considered to be development, with the Government wanting to use all available tools: attracting major foreign investments (which give an immediate boost to the growth of GDP), incentives and financing for small and medium-sized enterprises (which give higher added value in the medium term), the continuation of infrastructure projects (which will assist development, particularly in rural areas).
At the meeting Alexis Tsipras asked that there should be no stonewalling and that all bureaucratic obstacles should be overcome to accelerate the large investment projects, as well as the ESPA programmes. A list of projects should be created in energy, transportation, infrastructure, networks, tourism, and agricultural production.
In parallel with this development policy, the Government is moving forward in the sector of employment, aiming to speed up community programmes and programmes to combat structural unemployment. In addition, it wants to change the conditions of work, limiting the excesses on the part of employers.
Priorities as regards the social State ...
Also, it is expecting the acceleration of reforms in Health, Education and social solidarity, which are the three areas where the Government aspires to make the interventions most characteristic of its nature in the everyday life of citizens.
In health, a Bill for the reform of primary care has already been filed and in June the first decentralised centres are expected to start operating. Also a new law is in the pipeline for the procurement system and changes in medicine provision policy, while planning for the protection of patients' rights (measures about the “envelope” [see below. Ed], the list of surgical operations etc.) is going ahead.
In Education, before June it is expected that the relevant consultation will be completed and the new system of university entrance will be introduced, while in the coming weeks changes in the management of Institutions of Higher Education and Postgraduate Studies will be introduced in Parliament.
In the area of social solidarity, the work continues with the measures for the protection of children and young people, while there is a very important legislative intervention which paves the way for adoption services. Also, the unification of all policies of support through the designation of ΟΓΑ [the Agricultural Insurance Body] as a single support service and through the establishment of a framework for institutions and NGOs operating in the sector. Furthermore, the information system is being completed which will cover all beneficiaries, institutions and programmes in the sector and which will serve citizens through 254 community centres.
... and the Institutions
Major changes are pending also in Local Government, where a multi-Bill has already been filed various provisions. Also, in May a Bill will be lodged concerning gender equality and between June and September it is expected that the review of the "Kallikratis" Law (the institutional framework, the responsibilities, relations with Local Government), which will include the introduction of straightforward proportional representation will be completed.
Finally, in the coming months the consultation will intensify on the review of the Constitution. Already many open discussions are planned by the regions and other social and scientific bodies and movements.
major political counterattack"
These are the key points from the Government Cabinet meeting on Thursday
“Tearing the Government machine, but also public debate, away from the topic of the negotiations on the Second Assessment is the Prime Minister’s first priority with the aim of reversing the negative climate in the political, economic and social life of the country over the next two years. In the Cabinet on Thursday the Prime Minister’s said "The Government, after the Second Assessment, is recovering the initiative within the country." "We need a major political counterattack" on the basis of four pillars: (a) economic growth –reduction of unemployment, (b) Changes to the State and institutions, c) Radical reforms with a progressive imprint, d) Perseverance in investigating all cases of previous years which continue to “overshadow” the country. Government projects are to be accelerated and their coordination improved; an action plan for the coming 3-5 months, which extend to Ministry level is being put in place.
This reorientation of the Government is due to two main reasons.
Firstly, there seems to be more than a little glimmer of hope for a successful conclusion of the negotiations, whose outcome is evaluated under the title "a defensible agreement". In addition, the overall agreement which is being shaped (the Assessment, the debt, the path of public finances after 2018, the stabilization of how the IMF will participate) is creating optimism that the country will not find itself again facing a completely new negotiation about the Greek programme, but rather assessments more akin to performance management.
Secondly, the Government knows well that it is not enough for the economy and society for there to be an end to the uncertainty posed by the negotiations, even if the compromise achieved is "tolerable". On the contrary, there is the need for very profound changes that will establish new foundations for the country. Indeed, this direction was expressed very intensely and publicly by all wings inside SYRIZA. The "Parallel Programme" as its title suggests, continues to express exactly this need.
The most crucial area is considered to be development, with the Government wanting to use all available tools: attracting major foreign investments (which give an immediate boost to the growth of GDP), incentives and financing for small and medium-sized enterprises (which give higher added value in the medium term), the continuation of infrastructure projects (which will assist development, particularly in rural areas).
At the meeting Alexis Tsipras asked that there should be no stonewalling and that all bureaucratic obstacles should be overcome to accelerate the large investment projects, as well as the ESPA programmes. A list of projects should be created in energy, transportation, infrastructure, networks, tourism, and agricultural production.
In parallel with this development policy, the Government is moving forward in the sector of employment, aiming to speed up community programmes and programmes to combat structural unemployment. In addition, it wants to change the conditions of work, limiting the excesses on the part of employers.
Priorities as regards the social State ...
Also, it is expecting the acceleration of reforms in Health, Education and social solidarity, which are the three areas where the Government aspires to make the interventions most characteristic of its nature in the everyday life of citizens.
In health, a Bill for the reform of primary care has already been filed and in June the first decentralised centres are expected to start operating. Also a new law is in the pipeline for the procurement system and changes in medicine provision policy, while planning for the protection of patients' rights (measures about the “envelope” [see below. Ed], the list of surgical operations etc.) is going ahead.
In Education, before June it is expected that the relevant consultation will be completed and the new system of university entrance will be introduced, while in the coming weeks changes in the management of Institutions of Higher Education and Postgraduate Studies will be introduced in Parliament.
In the area of social solidarity, the work continues with the measures for the protection of children and young people, while there is a very important legislative intervention which paves the way for adoption services. Also, the unification of all policies of support through the designation of ΟΓΑ [the Agricultural Insurance Body] as a single support service and through the establishment of a framework for institutions and NGOs operating in the sector. Furthermore, the information system is being completed which will cover all beneficiaries, institutions and programmes in the sector and which will serve citizens through 254 community centres.
... and the Institutions
Major changes are pending also in Local Government, where a multi-Bill has already been filed various provisions. Also, in May a Bill will be lodged concerning gender equality and between June and September it is expected that the review of the "Kallikratis" Law (the institutional framework, the responsibilities, relations with Local Government), which will include the introduction of straightforward proportional representation will be completed.
Finally, in the coming months the consultation will intensify on the review of the Constitution. Already many open discussions are planned by the regions and other social and scientific bodies and movements.
Prime Minister Tsipras in Corfu
"Let's learn from the resourceful Odysseus, to close our ears to the sirens’ voices, and to overcome the final stormy waters. It is perhaps symbolic that the island of Corfu was his last stop before Ithaca. We just have to believe that Ithaca exists and we'll get there soon"
In Corfu to join in the local Easter celebrations, Prime Minister Tsipras wished “good resurrection, health and happiness to all” saying that it is a day of joy for all Greek men and women. “It is a day on which the Holy Spirit should warm the hearts of us all and give us courage to move forward.”
Tackling the Envelope
This week the Greek Government announced that it will be tackling the problem of corruption in the health care system in Greece by introducing an electronic, or e-platform to monitor the “envelope system”.
This is the first time that the “envelope” system in Greece is being addressed, Health Minister Andreas Ksanthos said at a conference. The system is one of corruption where patients who are about to undergo surgery or spend a specific amount of time in a public hospital hand over an envelope of additional money to their doctors in order to receive better care.
“We must examine the causes. The system’s weaknesses and delays should be taken into account but they are not the main causes. It has always existed, but it has got worse during the economic crisis period,” He said.
He added that the creation of an electronic anti-corruption platform will allow patients to report such incidences and that the allegations will then be investigated by the appropriate monitoring authorities.
“We believe that a new culture is needed, another style of the social health system, to convince patients that they can be offered services with dignity without seeking connections with people in charge or making financial transactions.”
"Let's learn from the resourceful Odysseus, to close our ears to the sirens’ voices, and to overcome the final stormy waters. It is perhaps symbolic that the island of Corfu was his last stop before Ithaca. We just have to believe that Ithaca exists and we'll get there soon"
In Corfu to join in the local Easter celebrations, Prime Minister Tsipras wished “good resurrection, health and happiness to all” saying that it is a day of joy for all Greek men and women. “It is a day on which the Holy Spirit should warm the hearts of us all and give us courage to move forward.”
Tackling the Envelope
This week the Greek Government announced that it will be tackling the problem of corruption in the health care system in Greece by introducing an electronic, or e-platform to monitor the “envelope system”.
This is the first time that the “envelope” system in Greece is being addressed, Health Minister Andreas Ksanthos said at a conference. The system is one of corruption where patients who are about to undergo surgery or spend a specific amount of time in a public hospital hand over an envelope of additional money to their doctors in order to receive better care.
“We must examine the causes. The system’s weaknesses and delays should be taken into account but they are not the main causes. It has always existed, but it has got worse during the economic crisis period,” He said.
He added that the creation of an electronic anti-corruption platform will allow patients to report such incidences and that the allegations will then be investigated by the appropriate monitoring authorities.
“We believe that a new culture is needed, another style of the social health system, to convince patients that they can be offered services with dignity without seeking connections with people in charge or making financial transactions.”
Agreement in Principle - has "both positive and negative implications"
15.04.2017
Addressing the Syriza Central Committee on Sunday, Prime Minister Alexis Tsipras said the compromise agreement with the country’s bailout monitors will allow Greece to better plan and determine its own future without the supervision of international creditors.
Explaining the results of last Friday’s Eurogroup meeting in Malta, PM Tsipras said there were both positive and negative implications, adding that the Government had to compromise and accept measures that it would not have chosen.
Labour relations was a policy area with which the PM was satisfied as demands for easier routes to mass redundancies and the removal of restrictions on employer lock-outs had been successfully resisted. Furthermore the Government had also secured the prospect of the reinstatement of collective bargaining in the “agreement in principle” with creditors.
Greek PM says debt relief is a condition for more austerity
Greece will implement additional austerity measures agreed with its official creditors on condition of further debt relief that will enable the country to be included in the ECB's bond buying scheme, Prime Minister Alexis Tsipras said on Sunday.
Alexis Tsipras spoke about the new austerity measures his administration has agreed to with creditors. He spoke of the compromise that had to be made and pledged that these measures would be counter-balanced by social relief measures of equal fiscal value.
“There are measures that are neither necessary, nor are they the ones we would ever choose, but the compromise achieved includes counter-measures that will counterbalance the fiscal impact and generate a zero fiscal balance, and both will be legislated and implemented simultaneously.”
“After Malta the way for the identification of the medium-term measures for the debt is open. This will send a clear message to the markets that the uncertainty is over.”
“Now we will be the ones to decide the fiscal path the country will follow after the end of the programme.” He stressed that without medium-term measures for debt relief that would allow Greece to enter the QE programme, he would not implement the new measures.
The Prime Minister also unleashed an indirect attack against New Democracy claiming that, “Some were scheming so that the evaluation would not close, because they didn’t want us to be the ones who will pull Greece out of the crisis.” He accused ND leader Kyriakos Mitsotakis of “rushing to meet with the German Finance Minister [Wolfgang Schoeble] to get his blessing and undermine the negotiations.” He also said that New Democracy espouses extreme neoliberalism.
PM Tsipras concluded by putting forward the four main pillars for Government policy over the next two years.
a) Equitable Development (reducing unemployment and ensuring labour rights),
b) Institutional Reconstruction (constitutional reform),
c) Progressive reforms (primary health, change the system of entrance to higher education, changes in local government),
d) Restoring to health the political life of the country.
In the package of post 2019 Countermeasures
To be included in the package of countermeasures that will be legislated on now in return for a cut of 1% of the pension expenditure from 2019 will be zero medicine prescription charges for pensioners who receive less than 700€ (that is, 40% of all pensioners).
The same reform also includes tiered reduction of prescription charges, depending on the amount of the pension, for other retirees: 50% reduction for pensions of 700€ up to 1,200€ euros and a 25% reduction for pensions over 1,200€.
THE IMF persists
"Debt restructuring will be needed," if the International Monetary Fund (IMF) is to lend to Greece, the fund's Managing Director Christine Lagarde said on Wednesday. She said the IMF was still working out under what terms it will lend to Greece. "We are not there yet, but what I have seen in the last couple of weeks is heading in the right direction. We are only half-way through the discussion that needs to be had," Lagarde told a conference in Brussels.
She reiterated Greece's debt - now 178% of GDP - will need to be restructured to guarantee the stability of the country's finances.
The Malta “Road Map”
Following the “agreement in principle” reached by the Greek Government and its Creditors, a Government spokesman made a statement early last week repeating the main points of the Malta agreement ‘roadmap’ in order to “avoid misinterpretations.”
This called firstly for the completion of the Staff-Level Agreement on the measures included in the current programme and the positive compensatory measures and reforms for the years 2019 and 2020. Following this, the medium-term measures for easing Greek debt, which will be implemented after the end of the current programme (September 2018), will be made specific by a subsequent Eurogroup in order for the IMF to be able to draw up a positive report on the sustainability of Greece’s debt and thus be able to participate in the Greek Programme. The third step after the implementation of the medium-term measures on the debt (in September 2018) will be the implementation of the reforms and positive measures in the Malta Agreement as of January 1st, 2019. “This is the road map and it is not questioned by anyone: not even Mr. Wolfgang Schaeuble, who described exactly this agreement in his statement today.”
The Greek government is looking for an extraordinary Eurogroup in early May to conclude the agreement, in order to meet the deadline to participate in the European Central Bank quantitative easing (QE) programme. The issue of Greece will be discussed at the ECB board meeting that will take place on June 22nd.
Greece has loan repayments of almost 7€ billion due in July.
Labour relations was a policy area with which the PM was satisfied as demands for easier routes to mass redundancies and the removal of restrictions on employer lock-outs had been successfully resisted. Furthermore the Government had also secured the prospect of the reinstatement of collective bargaining in the “agreement in principle” with creditors.
Greek PM says debt relief is a condition for more austerity
Greece will implement additional austerity measures agreed with its official creditors on condition of further debt relief that will enable the country to be included in the ECB's bond buying scheme, Prime Minister Alexis Tsipras said on Sunday.
Alexis Tsipras spoke about the new austerity measures his administration has agreed to with creditors. He spoke of the compromise that had to be made and pledged that these measures would be counter-balanced by social relief measures of equal fiscal value.
“There are measures that are neither necessary, nor are they the ones we would ever choose, but the compromise achieved includes counter-measures that will counterbalance the fiscal impact and generate a zero fiscal balance, and both will be legislated and implemented simultaneously.”
“After Malta the way for the identification of the medium-term measures for the debt is open. This will send a clear message to the markets that the uncertainty is over.”
“Now we will be the ones to decide the fiscal path the country will follow after the end of the programme.” He stressed that without medium-term measures for debt relief that would allow Greece to enter the QE programme, he would not implement the new measures.
The Prime Minister also unleashed an indirect attack against New Democracy claiming that, “Some were scheming so that the evaluation would not close, because they didn’t want us to be the ones who will pull Greece out of the crisis.” He accused ND leader Kyriakos Mitsotakis of “rushing to meet with the German Finance Minister [Wolfgang Schoeble] to get his blessing and undermine the negotiations.” He also said that New Democracy espouses extreme neoliberalism.
PM Tsipras concluded by putting forward the four main pillars for Government policy over the next two years.
a) Equitable Development (reducing unemployment and ensuring labour rights),
b) Institutional Reconstruction (constitutional reform),
c) Progressive reforms (primary health, change the system of entrance to higher education, changes in local government),
d) Restoring to health the political life of the country.
In the package of post 2019 Countermeasures
To be included in the package of countermeasures that will be legislated on now in return for a cut of 1% of the pension expenditure from 2019 will be zero medicine prescription charges for pensioners who receive less than 700€ (that is, 40% of all pensioners).
The same reform also includes tiered reduction of prescription charges, depending on the amount of the pension, for other retirees: 50% reduction for pensions of 700€ up to 1,200€ euros and a 25% reduction for pensions over 1,200€.
THE IMF persists
"Debt restructuring will be needed," if the International Monetary Fund (IMF) is to lend to Greece, the fund's Managing Director Christine Lagarde said on Wednesday. She said the IMF was still working out under what terms it will lend to Greece. "We are not there yet, but what I have seen in the last couple of weeks is heading in the right direction. We are only half-way through the discussion that needs to be had," Lagarde told a conference in Brussels.
She reiterated Greece's debt - now 178% of GDP - will need to be restructured to guarantee the stability of the country's finances.
The Malta “Road Map”
Following the “agreement in principle” reached by the Greek Government and its Creditors, a Government spokesman made a statement early last week repeating the main points of the Malta agreement ‘roadmap’ in order to “avoid misinterpretations.”
This called firstly for the completion of the Staff-Level Agreement on the measures included in the current programme and the positive compensatory measures and reforms for the years 2019 and 2020. Following this, the medium-term measures for easing Greek debt, which will be implemented after the end of the current programme (September 2018), will be made specific by a subsequent Eurogroup in order for the IMF to be able to draw up a positive report on the sustainability of Greece’s debt and thus be able to participate in the Greek Programme. The third step after the implementation of the medium-term measures on the debt (in September 2018) will be the implementation of the reforms and positive measures in the Malta Agreement as of January 1st, 2019. “This is the road map and it is not questioned by anyone: not even Mr. Wolfgang Schaeuble, who described exactly this agreement in his statement today.”
The Greek government is looking for an extraordinary Eurogroup in early May to conclude the agreement, in order to meet the deadline to participate in the European Central Bank quantitative easing (QE) programme. The issue of Greece will be discussed at the ECB board meeting that will take place on June 22nd.
Greece has loan repayments of almost 7€ billion due in July.
The 3rd Summit of the South took place in Madrid on 10th April. At the end of the meeting, the Declaration below was signed by all the participants.
The Greek Government on Monday declared itself very satisfied with the Declaration adopted by the seven southern EU leaders meeting in Madrid. It noted the clear references to the continued commitment to European social and labour rights on the basis of the Communautare Aquis.
The Declaration also included positions on the refugee and migration crisis, especially in relation to revising the European asylum system on the basis of solidarity, that are in line with the Greek Government’s views. It was further agreed there should be new impetus to economic convergence between member-states, noting that this was a political priority in the fight against unemployment.
On Syria the Madrid Declaration stated that the solution to the conflict in Syria cannot be military and that only a credible political solution, as outlined by UNSCR 2254 [The United Nations Security Council Resolution 2254 was unanimously adopted on 18 December 2015, calling for a ceasefire and political settlement in Syria] when the roadmap to the Syria peace process was unanimously accepted.
The Declaration [Full Text]
1. We, the heads of State and Government of Cyprus, France, Greece, Italy, Malta, Portugal and Spain met in Madrid for the 3rd Summit of the countries of the South of the European Union on 10th April 2017.
Following the 1st Summit held on 9th September 2016 in Athens, and the 2nd Summit in Lisbon on 28th January 2017, we have met again, this time in Madrid, in order to confirm our commitment to work for a strong and united European Union. Together, we would like to reflect on our common project and contribute to the current debate about our common future. We declare our commitment to continue this process in a new meeting in Cyprus.
2. We welcome the outcome of the Rome Summit on 25th March. From the Declaration, signed in Rome, we underline the unswerving defence of the united action of the Union, its institutions, its shared values -freedom, democracy, human rights, solidarity and the rule of law and the support of our system for social protection and welfare. We fully support the agenda contained in the Rome Declaration, and its priorities: a safe and secure Europe, a prosperous and sustainable Europe, a social Europe and a stronger Europe on the world stage. As stated in the Declaration, we reaffirm our commitment to cooperation within the European Council and among our institutions for the implementation of this agenda.
3. In the context of the debate on the future of the Union, the Commission's White Paper is a valuable contribution. We await the Commission’s presentation of the discussion documents, as announced in the White Paper. These documents should contribute to the debate about alternative possibilities that lie ahead as we move forward together in the process of integration.
4. We reaffirm the statement made by the European Council on 29th March 2017, after the United Kingdom gave notice of its intention to withdraw from the Union. We regret the decision of the United Kingdom, but we respect its wish. In view of the imminent opening of negotiations, we stress the importance of the common principles on which the 27 agreed in accordance with the Declarations of 29th June and 15th December 2016. We reaffirm the importance of preserving the unity of the 27 and of safeguarding the interests of the European Union in the negotiations, which must be based on a gradual approach. We reiterate our support for and our confidence in the negotiator Mr Michel Barnier. In the future, we hope the United Kingdom will become a close partner of the EU.
5. In accordance with the Declarations of Athens and Lisbon, we reaffirm the importance of strengthening cooperation across the whole Mediterranean basin and the African countries. We affirm that migration requires a global approach. This includes:
-Strengthening dialogue and cooperation with countries of origin, transit and destination of migration, mainly with African and Mediterranean countries, in accordance with the principles of the joint action plan of Valletta, and also with the countries of Asia,
-Intensifying the fight against people traffickers and smugglers,
-Promoting of the return of irregular (illegal) migrants,
-Promoting a truly European return policy and the full operation of the European Border and Coast Guard Agency (FRONTEX),
-Strengthening controls at the external borders,
-Improving supervision and the utilization of new technological tools, such as the entry-exit system and the European information system and the licensing of travel to the EU and
-Ensuring international protection for individuals who fulfil the conditions for being granted asylum.
EU migration policy must be based on shared responsibility and solidarity towards countries affected by migratory pressures due to their location on the Union's external borders, in particular with regard to the ongoing reform of the Common European Asylum System. Currently, the Central Mediterranean route is receiving extreme migratory pressure, as described in the Declaration concerning the external aspects of migration, adopted at the Summit held in Malta in February. Migratory routes, such as those through the Eastern and Western Mediterranean also require our full attention. Indeed, the situation in the Eastern Mediterranean remains volatile and the continuous, complete, sustained and non-discriminatory implementation of the EU-Turkey Statement of 18th March 2016 is vital.
6. We agree on the need to promote sustainable growth and employment and for the maintenance and further development of our social welfare state models. Economic convergence between Member States deserves a new impetus. Combating unemployment and particularly long-term unemployment and unemployment among young people is a political priority for us. The internal market and the euro are powerful tools for economic development and social progress. We must ensure that they operate efficiently and that the benefits reach all citizens.
In the short term, in accordance with the agenda of Bratislava, we reaffirm our commitment to complete the single market, in particular in the energy and digital domain to promote growth and investment and enhance competitiveness. We reiterate our support for the investment plan for Europe and the expansion of European Fund Investment Strategies. We are also fully committed to a trade policy that is open and rules-based - free and fair trade is an essential factor for competitiveness, employment and prosperity.
The social dimension of the European Union requires that citizens remain at the heart of integration plans. To enable Europeans to make the most of the advantages of the single market, labour mobility must be enhanced in a context that ensures full respect for social and labour rights, as well as national responsibilities. To promote social convergence, options for strengthening the coordination of education and social security systems can be explored, as well as ways of improving the portability of social benefits and rights. A European pillar of social rights, on the basis of the European social and employment acquis can contribute towards this end. The proper functioning of national labour markets with adequate levels of social protection and the European policy of cohesion play a central role in reducing inequality and poverty and the promotion of social inclusion, in particular through the creation of jobs. In addition, investments in education and training is of vital importance for reducing the risk of unemployment and for preparing workers for the challenges ahead, in particular through the development of skills, especially computer skills.
Further, the decisive progress on the completion of Economic and Monetary Union in accordance with the Rome Declaration should be noted. We call for the speedy completion of the Banking Union, together with the creation of a European System of Insurance of Bank Deposits. Economic policy coordination should promote convergence in the long term, towards further integration, in particular financial integration, while ensuring full respect for national competences, something which is also vital for the effective development of the social dimension of the European Union.
7. The security of our citizens is our main priority and largely depends on peace and stability beyond our borders. Of crucial importance is the cooperation between law enforcement authorities of the countries of the European Union and, where appropriate, with third countries, particularly in our immediate neighbourhood. We welcome the prompt entry into force of a series of new European Union rules that contribute to achieving this objective, as the new directive for combating terrorism, the Directive on firearms, and the reform of the Schengen borders code, which extends the systematic checks also European citizens crossing external borders.
It is imperative to strengthen the measures for curbing terrorist financing and to stem the flow of revenue to terrorist groups. Our countries have called for the strengthening of the international framework for the fight against the illegal destruction of cultural heritage, religious sites and monuments, and the illegal trafficking of cultural goods from terrorist groups during armed conflicts. We welcome the recent adoption of resolution 2347 (2017) of the UN Security Council on this issue.
Efforts to prevent radicalisation must be strengthened. At the same time, more and urgent attention should be given to the issue of foreign terrorists/militants, especially those who are returning. EU measures to combat financing of terrorism and the prevention of radicalisation must be strengthened. Victims of terrorism deserve special attention from the EU. In this context, we strongly condemn the recent terrorist attacks in Russia, Sweden and Egypt and we express our solidarity with their peoples.
8. We want the EU to become a real security and defence provider, a reliable power for addressing security challenges. In this context, we express our commitment to implement fully the conclusions of the European Council of 15th December 2016 and the conclusions of the President of the European Council of 9th March 2017, - upgrading the EU's strategic autonomy and ability to take action, to participate more and more in the protection of Europe and its citizens, to share more responsibility with NATO, with full respect for the decision-making autonomy of both Organizations, and to strengthen cooperation in enhancing the effectiveness of the ESDP (Common Security and Defence Policy of the EU) and the development of defence capabilities of the Member States, supported by the creation of a European Defence Fund. In addition, economic stability, economic development and the convergence arising from the reform of the Economic & Monetary Union could also contribute to the strengthening of European defence capabilities. We are convinced that the increasing resilience of Europe and the transition towards real common security and defence cooperation will enable Europe to contribute to peace and stability in its neighbourhood and beyond, especially in the Mediterranean region and in Africa, including through the intensification of support in the area of capacity building for security and development.
9. We believe that the Union for the Mediterranean (UFM) plays a central role in the consolidation of Euro-Mediterranean regional cooperation as an expression of shared responsibility in managing the common regional agenda in order to address collectively and effectively our current problems. In addition, the review of the European neighbourhood policy stressed the EU's political will to proceed in the further strengthening of the Union for the Mediterranean. We express our satisfaction at the success of the second Regional Forum held in Barcelona in January, and we maintain our support for the Union for the Mediterranean and to the Secretary-General.
10. We are watching closely and we reiterate our support for the reunification process of Cyprus without guarantees, in accordance with the decisions of the UN Security Council and of the EU acquis. We recall that the Republic of Cyprus is and will remain a member of our Union, after the settlement, and that EU membership is the best guarantee for a reunified Cyprus.
11. The countries of the South of the European Union unequivocally condemn the air strikes with chemical weapons on 4th April in Idlib (Syria). The repeated use of chemical weapons in Syria, both by the Assad regime from 2013, and by Daesh constitute war crimes. All perpetrators must be held accountable for this violation of international law and should be punished under the auspices of the United Nations. The attack carried out by the United States military airbase on al-Shayrat in Syria had the understood intent to forestall and to prevent the spread and use of chemical weapons and was limited and focused on this goal. We will continue to support the efforts and the work of the OPCW (Organisation for the Prohibition of Chemical Weapons) and the UN regarding the investigation of the use of chemical weapons. The countries of the South of the European Union, reiterate that there can be no military solution to the conflict in Syria. Only a credible political solution, as defined in UN Security Council resolution 2254 and the Geneva communiqué of 2012, will ensure peace and stability in Syria and will allow a decisive fight against Daesh and others designated by the UN as terrorist groups in Syria. We reiterate our support for the United Nations talks in Geneva to find a political solution in Syria.
*****************
Alexis Tsipras in a joint press conference after the meeting of the countries of southern Europe said "It's time to have a solution for the issue of debt so there can be an exit from the crisis," stated the Prime Minister. "We discussed the need for Europe to overcome the economic crisis. And to overcome it Europe must overcome the inequalities. We have all agreed to observe the rules. Flexibility is needed but everyone must observe them. We must understand that the surpluses of some are the deficits of others. The deficits of the South are the surpluses of the European North. This contradiction must be resolved."
The Greek Government on Monday declared itself very satisfied with the Declaration adopted by the seven southern EU leaders meeting in Madrid. It noted the clear references to the continued commitment to European social and labour rights on the basis of the Communautare Aquis.
The Declaration also included positions on the refugee and migration crisis, especially in relation to revising the European asylum system on the basis of solidarity, that are in line with the Greek Government’s views. It was further agreed there should be new impetus to economic convergence between member-states, noting that this was a political priority in the fight against unemployment.
On Syria the Madrid Declaration stated that the solution to the conflict in Syria cannot be military and that only a credible political solution, as outlined by UNSCR 2254 [The United Nations Security Council Resolution 2254 was unanimously adopted on 18 December 2015, calling for a ceasefire and political settlement in Syria] when the roadmap to the Syria peace process was unanimously accepted.
The Declaration [Full Text]
1. We, the heads of State and Government of Cyprus, France, Greece, Italy, Malta, Portugal and Spain met in Madrid for the 3rd Summit of the countries of the South of the European Union on 10th April 2017.
Following the 1st Summit held on 9th September 2016 in Athens, and the 2nd Summit in Lisbon on 28th January 2017, we have met again, this time in Madrid, in order to confirm our commitment to work for a strong and united European Union. Together, we would like to reflect on our common project and contribute to the current debate about our common future. We declare our commitment to continue this process in a new meeting in Cyprus.
2. We welcome the outcome of the Rome Summit on 25th March. From the Declaration, signed in Rome, we underline the unswerving defence of the united action of the Union, its institutions, its shared values -freedom, democracy, human rights, solidarity and the rule of law and the support of our system for social protection and welfare. We fully support the agenda contained in the Rome Declaration, and its priorities: a safe and secure Europe, a prosperous and sustainable Europe, a social Europe and a stronger Europe on the world stage. As stated in the Declaration, we reaffirm our commitment to cooperation within the European Council and among our institutions for the implementation of this agenda.
3. In the context of the debate on the future of the Union, the Commission's White Paper is a valuable contribution. We await the Commission’s presentation of the discussion documents, as announced in the White Paper. These documents should contribute to the debate about alternative possibilities that lie ahead as we move forward together in the process of integration.
4. We reaffirm the statement made by the European Council on 29th March 2017, after the United Kingdom gave notice of its intention to withdraw from the Union. We regret the decision of the United Kingdom, but we respect its wish. In view of the imminent opening of negotiations, we stress the importance of the common principles on which the 27 agreed in accordance with the Declarations of 29th June and 15th December 2016. We reaffirm the importance of preserving the unity of the 27 and of safeguarding the interests of the European Union in the negotiations, which must be based on a gradual approach. We reiterate our support for and our confidence in the negotiator Mr Michel Barnier. In the future, we hope the United Kingdom will become a close partner of the EU.
5. In accordance with the Declarations of Athens and Lisbon, we reaffirm the importance of strengthening cooperation across the whole Mediterranean basin and the African countries. We affirm that migration requires a global approach. This includes:
-Strengthening dialogue and cooperation with countries of origin, transit and destination of migration, mainly with African and Mediterranean countries, in accordance with the principles of the joint action plan of Valletta, and also with the countries of Asia,
-Intensifying the fight against people traffickers and smugglers,
-Promoting of the return of irregular (illegal) migrants,
-Promoting a truly European return policy and the full operation of the European Border and Coast Guard Agency (FRONTEX),
-Strengthening controls at the external borders,
-Improving supervision and the utilization of new technological tools, such as the entry-exit system and the European information system and the licensing of travel to the EU and
-Ensuring international protection for individuals who fulfil the conditions for being granted asylum.
EU migration policy must be based on shared responsibility and solidarity towards countries affected by migratory pressures due to their location on the Union's external borders, in particular with regard to the ongoing reform of the Common European Asylum System. Currently, the Central Mediterranean route is receiving extreme migratory pressure, as described in the Declaration concerning the external aspects of migration, adopted at the Summit held in Malta in February. Migratory routes, such as those through the Eastern and Western Mediterranean also require our full attention. Indeed, the situation in the Eastern Mediterranean remains volatile and the continuous, complete, sustained and non-discriminatory implementation of the EU-Turkey Statement of 18th March 2016 is vital.
6. We agree on the need to promote sustainable growth and employment and for the maintenance and further development of our social welfare state models. Economic convergence between Member States deserves a new impetus. Combating unemployment and particularly long-term unemployment and unemployment among young people is a political priority for us. The internal market and the euro are powerful tools for economic development and social progress. We must ensure that they operate efficiently and that the benefits reach all citizens.
In the short term, in accordance with the agenda of Bratislava, we reaffirm our commitment to complete the single market, in particular in the energy and digital domain to promote growth and investment and enhance competitiveness. We reiterate our support for the investment plan for Europe and the expansion of European Fund Investment Strategies. We are also fully committed to a trade policy that is open and rules-based - free and fair trade is an essential factor for competitiveness, employment and prosperity.
The social dimension of the European Union requires that citizens remain at the heart of integration plans. To enable Europeans to make the most of the advantages of the single market, labour mobility must be enhanced in a context that ensures full respect for social and labour rights, as well as national responsibilities. To promote social convergence, options for strengthening the coordination of education and social security systems can be explored, as well as ways of improving the portability of social benefits and rights. A European pillar of social rights, on the basis of the European social and employment acquis can contribute towards this end. The proper functioning of national labour markets with adequate levels of social protection and the European policy of cohesion play a central role in reducing inequality and poverty and the promotion of social inclusion, in particular through the creation of jobs. In addition, investments in education and training is of vital importance for reducing the risk of unemployment and for preparing workers for the challenges ahead, in particular through the development of skills, especially computer skills.
Further, the decisive progress on the completion of Economic and Monetary Union in accordance with the Rome Declaration should be noted. We call for the speedy completion of the Banking Union, together with the creation of a European System of Insurance of Bank Deposits. Economic policy coordination should promote convergence in the long term, towards further integration, in particular financial integration, while ensuring full respect for national competences, something which is also vital for the effective development of the social dimension of the European Union.
7. The security of our citizens is our main priority and largely depends on peace and stability beyond our borders. Of crucial importance is the cooperation between law enforcement authorities of the countries of the European Union and, where appropriate, with third countries, particularly in our immediate neighbourhood. We welcome the prompt entry into force of a series of new European Union rules that contribute to achieving this objective, as the new directive for combating terrorism, the Directive on firearms, and the reform of the Schengen borders code, which extends the systematic checks also European citizens crossing external borders.
It is imperative to strengthen the measures for curbing terrorist financing and to stem the flow of revenue to terrorist groups. Our countries have called for the strengthening of the international framework for the fight against the illegal destruction of cultural heritage, religious sites and monuments, and the illegal trafficking of cultural goods from terrorist groups during armed conflicts. We welcome the recent adoption of resolution 2347 (2017) of the UN Security Council on this issue.
Efforts to prevent radicalisation must be strengthened. At the same time, more and urgent attention should be given to the issue of foreign terrorists/militants, especially those who are returning. EU measures to combat financing of terrorism and the prevention of radicalisation must be strengthened. Victims of terrorism deserve special attention from the EU. In this context, we strongly condemn the recent terrorist attacks in Russia, Sweden and Egypt and we express our solidarity with their peoples.
8. We want the EU to become a real security and defence provider, a reliable power for addressing security challenges. In this context, we express our commitment to implement fully the conclusions of the European Council of 15th December 2016 and the conclusions of the President of the European Council of 9th March 2017, - upgrading the EU's strategic autonomy and ability to take action, to participate more and more in the protection of Europe and its citizens, to share more responsibility with NATO, with full respect for the decision-making autonomy of both Organizations, and to strengthen cooperation in enhancing the effectiveness of the ESDP (Common Security and Defence Policy of the EU) and the development of defence capabilities of the Member States, supported by the creation of a European Defence Fund. In addition, economic stability, economic development and the convergence arising from the reform of the Economic & Monetary Union could also contribute to the strengthening of European defence capabilities. We are convinced that the increasing resilience of Europe and the transition towards real common security and defence cooperation will enable Europe to contribute to peace and stability in its neighbourhood and beyond, especially in the Mediterranean region and in Africa, including through the intensification of support in the area of capacity building for security and development.
9. We believe that the Union for the Mediterranean (UFM) plays a central role in the consolidation of Euro-Mediterranean regional cooperation as an expression of shared responsibility in managing the common regional agenda in order to address collectively and effectively our current problems. In addition, the review of the European neighbourhood policy stressed the EU's political will to proceed in the further strengthening of the Union for the Mediterranean. We express our satisfaction at the success of the second Regional Forum held in Barcelona in January, and we maintain our support for the Union for the Mediterranean and to the Secretary-General.
10. We are watching closely and we reiterate our support for the reunification process of Cyprus without guarantees, in accordance with the decisions of the UN Security Council and of the EU acquis. We recall that the Republic of Cyprus is and will remain a member of our Union, after the settlement, and that EU membership is the best guarantee for a reunified Cyprus.
11. The countries of the South of the European Union unequivocally condemn the air strikes with chemical weapons on 4th April in Idlib (Syria). The repeated use of chemical weapons in Syria, both by the Assad regime from 2013, and by Daesh constitute war crimes. All perpetrators must be held accountable for this violation of international law and should be punished under the auspices of the United Nations. The attack carried out by the United States military airbase on al-Shayrat in Syria had the understood intent to forestall and to prevent the spread and use of chemical weapons and was limited and focused on this goal. We will continue to support the efforts and the work of the OPCW (Organisation for the Prohibition of Chemical Weapons) and the UN regarding the investigation of the use of chemical weapons. The countries of the South of the European Union, reiterate that there can be no military solution to the conflict in Syria. Only a credible political solution, as defined in UN Security Council resolution 2254 and the Geneva communiqué of 2012, will ensure peace and stability in Syria and will allow a decisive fight against Daesh and others designated by the UN as terrorist groups in Syria. We reiterate our support for the United Nations talks in Geneva to find a political solution in Syria.
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Alexis Tsipras in a joint press conference after the meeting of the countries of southern Europe said "It's time to have a solution for the issue of debt so there can be an exit from the crisis," stated the Prime Minister. "We discussed the need for Europe to overcome the economic crisis. And to overcome it Europe must overcome the inequalities. We have all agreed to observe the rules. Flexibility is needed but everyone must observe them. We must understand that the surpluses of some are the deficits of others. The deficits of the South are the surpluses of the European North. This contradiction must be resolved."
“The roots of the shadow economy and tax evasion have spread”
Commenting on the statistics of the 2016 tax returns ( relating to income in 2015) published by the Independent Public Revenue Authority (AADE), a Government spokesman said that it showed how deep the roots of the shadow economy and tax evasion have spread. 7€ out of the 10€ paid in income tax come from - employees and retirees, while out of a total of 6.1 million households who submitted a tax return, just 24,695 declared an income over 100,000€.
According to AADE, 26.3% pay no tax at all, 17.7% pay up to 15 euros, while overall 52.5% pay less than 150€ tax. Nine out of ten Greeks declared incomes below 20,000€ last year.
According to figures based on the 8,645,596 tax returns filed in 2016, one in seven taxpayers (1.263 million or 14.6%) declared zero income, while 32% (2.767 million) of taxpayers declared incomes below 5,000€.
Farmers showed significantly lower incomes in 2016 compared to 2015, as 435,908 taxpayers in rural areas declared annual incomes averaging 2,822€ compared to average income of 3,103€ in 2015.
Despite EU fines, Greece struggling to promote recycling
A steady stream of EU fines and two decades of trying have failed to get recycling off the ground in Greece, where eco-awareness is only half-heartedly promoted by authorities.
According the European environment agency, only 16% of household waste is recycled across the country, compared to a 50% target by 2020 under EU directives. In contrast, the European recycling average is 28%, with Slovenia leading at 49% and Latvia bringing up the rear at 3%.
In Athens, with nearly four million inhabitants out of the country's 11 million, only 13% of eligible waste is recycled, town hall figures show.
"We don't have a clear strategy and then we don't have the political will to materialise this strategy," notes Dimitris Ibrahim, a spokesman for the Greek branch of Greenpeace.
In June 2014, Greece was ordered to pay a fine of nearly 15€ million every six months over the continued operation of illegal landfills. The European Court of Justice has repeatedly condemned Greece on this score, levelling fines amounting to millions of euros with the latest ruling in September 2016.
"The mentality needs to change, and urgently," says Antigone Dalamaga, head of the Ecological Recycling Society association. It takes "incentives and counter incentives... you need to convince your citizens of the necessity and of the positive affect of recycling," she notes. "But even today, Greeks are only encouraged to sort out their household waste on a voluntary basis. No fines are involved. "
And Mary Krimnanioti, who runs the EU-funded "Zero Waste" programme in Greece, says the logic behind the municipal waste collection - which charges residents depending on property size - is flawed.
"It is not calculated according to the waste you throw away, it's according to the square metres of your house. Therefore, a small house with 10 people, which every day throws out 10 bags of rubbish, pays the same as one person living in an equivalent home."
Commission of Inquiry to investigate Health Scandals
On Wednesday evening the proposal of the SYRIZA-ANEL coalition to establish a 21 member Commission of Inquiry to investigate health scandals [including medicine price-fixing and fraud] during the years 1997-2014 achieved an absolute majority of those present in the plenary session of Parliament session, with 187 votes in favour and 71 against. It will begin its work after Easter and complete its work within three months. The political parties have until 21st April to submit the names of their members who will participate in the Commission.
New Democracy MPs voted against. Members of the Democratic (which includes PASOK) recorded “present” i.e. abstained.
Commenting on the statistics of the 2016 tax returns ( relating to income in 2015) published by the Independent Public Revenue Authority (AADE), a Government spokesman said that it showed how deep the roots of the shadow economy and tax evasion have spread. 7€ out of the 10€ paid in income tax come from - employees and retirees, while out of a total of 6.1 million households who submitted a tax return, just 24,695 declared an income over 100,000€.
According to AADE, 26.3% pay no tax at all, 17.7% pay up to 15 euros, while overall 52.5% pay less than 150€ tax. Nine out of ten Greeks declared incomes below 20,000€ last year.
According to figures based on the 8,645,596 tax returns filed in 2016, one in seven taxpayers (1.263 million or 14.6%) declared zero income, while 32% (2.767 million) of taxpayers declared incomes below 5,000€.
Farmers showed significantly lower incomes in 2016 compared to 2015, as 435,908 taxpayers in rural areas declared annual incomes averaging 2,822€ compared to average income of 3,103€ in 2015.
Despite EU fines, Greece struggling to promote recycling
A steady stream of EU fines and two decades of trying have failed to get recycling off the ground in Greece, where eco-awareness is only half-heartedly promoted by authorities.
According the European environment agency, only 16% of household waste is recycled across the country, compared to a 50% target by 2020 under EU directives. In contrast, the European recycling average is 28%, with Slovenia leading at 49% and Latvia bringing up the rear at 3%.
In Athens, with nearly four million inhabitants out of the country's 11 million, only 13% of eligible waste is recycled, town hall figures show.
"We don't have a clear strategy and then we don't have the political will to materialise this strategy," notes Dimitris Ibrahim, a spokesman for the Greek branch of Greenpeace.
In June 2014, Greece was ordered to pay a fine of nearly 15€ million every six months over the continued operation of illegal landfills. The European Court of Justice has repeatedly condemned Greece on this score, levelling fines amounting to millions of euros with the latest ruling in September 2016.
"The mentality needs to change, and urgently," says Antigone Dalamaga, head of the Ecological Recycling Society association. It takes "incentives and counter incentives... you need to convince your citizens of the necessity and of the positive affect of recycling," she notes. "But even today, Greeks are only encouraged to sort out their household waste on a voluntary basis. No fines are involved. "
And Mary Krimnanioti, who runs the EU-funded "Zero Waste" programme in Greece, says the logic behind the municipal waste collection - which charges residents depending on property size - is flawed.
"It is not calculated according to the waste you throw away, it's according to the square metres of your house. Therefore, a small house with 10 people, which every day throws out 10 bags of rubbish, pays the same as one person living in an equivalent home."
Commission of Inquiry to investigate Health Scandals
On Wednesday evening the proposal of the SYRIZA-ANEL coalition to establish a 21 member Commission of Inquiry to investigate health scandals [including medicine price-fixing and fraud] during the years 1997-2014 achieved an absolute majority of those present in the plenary session of Parliament session, with 187 votes in favour and 71 against. It will begin its work after Easter and complete its work within three months. The political parties have until 21st April to submit the names of their members who will participate in the Commission.
New Democracy MPs voted against. Members of the Democratic (which includes PASOK) recorded “present” i.e. abstained.
Second Assessment:
“Agreement in Principle”
8.4.2017
Yesterday, Friday, an agreement in principle was reached between Greece and its Creditors to conclude the Second Assessment.
The Government and its Creditors reached the compromise that includes difficult fiscal measures for the 2019-20 but also commitments to action to be taken directly on the primary surplus targets and debt sustainability
From September 2018 the European norms of collective bargaining and collective agreements will be restored. Further Budgetary measures are agreed - 1% of GDP in pension savings and 1% of GDP in adjustments to the tax system to broaden the tax base in 2019 and 2020. The Government has pledged equivalent financial and social compensation.
Finance Minister Euclid Tsakalotos after the end of the Eurogroup announced there will be simultaneous legislation on the measures and counter-measures in the next few weeks. He stated that the measures for the 2019-2020 period would only come into force if there are measures on debt relief. The countervailing-positive measures will be implemented provided Greece meets its fiscal targets.
He stated that “the unreasonable demands of the IMF on labour issues” – allowing employer lock-outs, making mass redundancies easier and preventing the restoration of the European norms of collective bargaining are off the table. There will be a return to collective bargaining and collective agreements by September 2018.
Euclid Tsakalotos reported that the agreement lays the foundations for a social State. He noted that the agreement in principle is the result of a compromise. “Like all compromises it includes elements that are not satisfactory and other elements which satisfy the Greek side and especially the Greek people.”
The Finance Minister referred to a package of positive measures, which in 2019 will be on the expenditure side, speaking about a 1.8€ billion package to address child poverty, the problem of housing, the problems of the younger generation regarding employment and measures for political development.
At the same time, he noted, there will be a reduction in pensioners’ prescription charges. In 2020 there will be changes to the Property Tax (ΕΝΦΙΑ) and Income Tax.
Reactions and Observations
The IMF is seeking assurances about a credible strategy to ensure the sustainability of the Greek debt.
In a written statement after the Eurogroup, the Fund's spokesman Jerry Rice said "There are good prospects for the successful conclusion of the negotiations on the outstanding issues of the Second Assessment” but he pointed out the need to manage the debt. "The agreement on reforms should be followed by a discussion with the eurozone countries to secure assurances for a credible strategy to ensure debt sustainability".
The overall agreement on the Greek programme will be presented to the Executive Board of the IMF for its final decision.
President of the Eurogroup, Jeroen Dijsselbloem after the conclusion of the meeting of eurozone finance ministers in Valletta of Malta announced: "The major issues have been resolved. Small details remain, so now we will move forward quickly."
He said that the heads of Mission will return to Athens "as soon as possible" in order to reach a "comprehensive technical agreement". He added "I couldn't speak in favour of the agreement, if it had not also been endorsed by the IMF".
“This agreement will allow the Eurogroup to proceed to a discussion on the budgetary targets after the end of the programme and the sustainability of the debt in order to achieve a "comprehensive political agreement", which was "very important" for Greece. He stressed that today's decision will enable him to "speed up" procedures in this direction.
Mr. Dijsselbloem stressed that the final assessment of the programme in the summer of 2018 is the "most important" because, depending on the performance of the economy and the extent to which the objectives have been met, that will eventually determine when and how the totality of the measures, including the positive counter-measures will be implemented.”
In conclusion, he said that the "ambition" is to have achieved the overall political agreement long before the summer, noting that any delays are negatively affecting the Greek economy, as the positive "momentum" of recent months "is being lost".
Pierre Moscovici, EU Finance Commissioner said: “Let that be an end to the uncertainty”
“I want to welcome the agreement in principle reached after several months of difficult negotiations. This agreement will enable the faster return of the Institutions to Athens to complete the agreement.” He described the agreement as "balanced" since, “as well as the additional fiscal effort that Greece is required to make in 2019 and 2020, there is the prospect of a package of compensatory measures that are important for the support of social groups that have been hit by the crisis.”
From September 2018 the European norms of collective bargaining and collective agreements will be restored. Further Budgetary measures are agreed - 1% of GDP in pension savings and 1% of GDP in adjustments to the tax system to broaden the tax base in 2019 and 2020. The Government has pledged equivalent financial and social compensation.
Finance Minister Euclid Tsakalotos after the end of the Eurogroup announced there will be simultaneous legislation on the measures and counter-measures in the next few weeks. He stated that the measures for the 2019-2020 period would only come into force if there are measures on debt relief. The countervailing-positive measures will be implemented provided Greece meets its fiscal targets.
He stated that “the unreasonable demands of the IMF on labour issues” – allowing employer lock-outs, making mass redundancies easier and preventing the restoration of the European norms of collective bargaining are off the table. There will be a return to collective bargaining and collective agreements by September 2018.
Euclid Tsakalotos reported that the agreement lays the foundations for a social State. He noted that the agreement in principle is the result of a compromise. “Like all compromises it includes elements that are not satisfactory and other elements which satisfy the Greek side and especially the Greek people.”
The Finance Minister referred to a package of positive measures, which in 2019 will be on the expenditure side, speaking about a 1.8€ billion package to address child poverty, the problem of housing, the problems of the younger generation regarding employment and measures for political development.
At the same time, he noted, there will be a reduction in pensioners’ prescription charges. In 2020 there will be changes to the Property Tax (ΕΝΦΙΑ) and Income Tax.
Reactions and Observations
The IMF is seeking assurances about a credible strategy to ensure the sustainability of the Greek debt.
In a written statement after the Eurogroup, the Fund's spokesman Jerry Rice said "There are good prospects for the successful conclusion of the negotiations on the outstanding issues of the Second Assessment” but he pointed out the need to manage the debt. "The agreement on reforms should be followed by a discussion with the eurozone countries to secure assurances for a credible strategy to ensure debt sustainability".
The overall agreement on the Greek programme will be presented to the Executive Board of the IMF for its final decision.
President of the Eurogroup, Jeroen Dijsselbloem after the conclusion of the meeting of eurozone finance ministers in Valletta of Malta announced: "The major issues have been resolved. Small details remain, so now we will move forward quickly."
He said that the heads of Mission will return to Athens "as soon as possible" in order to reach a "comprehensive technical agreement". He added "I couldn't speak in favour of the agreement, if it had not also been endorsed by the IMF".
“This agreement will allow the Eurogroup to proceed to a discussion on the budgetary targets after the end of the programme and the sustainability of the debt in order to achieve a "comprehensive political agreement", which was "very important" for Greece. He stressed that today's decision will enable him to "speed up" procedures in this direction.
Mr. Dijsselbloem stressed that the final assessment of the programme in the summer of 2018 is the "most important" because, depending on the performance of the economy and the extent to which the objectives have been met, that will eventually determine when and how the totality of the measures, including the positive counter-measures will be implemented.”
In conclusion, he said that the "ambition" is to have achieved the overall political agreement long before the summer, noting that any delays are negatively affecting the Greek economy, as the positive "momentum" of recent months "is being lost".
Pierre Moscovici, EU Finance Commissioner said: “Let that be an end to the uncertainty”
“I want to welcome the agreement in principle reached after several months of difficult negotiations. This agreement will enable the faster return of the Institutions to Athens to complete the agreement.” He described the agreement as "balanced" since, “as well as the additional fiscal effort that Greece is required to make in 2019 and 2020, there is the prospect of a package of compensatory measures that are important for the support of social groups that have been hit by the crisis.”
Alexis Tsipras on the Anniversary of the 1821 Revolution
1.4.2017
"With today’s peace efforts, the struggle to put the country back on its feet, with the broadening of democracy and social achievements, we are honouring the Greek Revolution of 1821," stressed the Prime Minister on the occasion of the celebration of 25th March.
"The Greek Revolution of 1821 is not simply the Modern Greek State’s date of birth. It encapsulates a lengthy journey, where national ideals combined with the ideas of freedom, equality and social justice, such as those expressed by the Enlightenment. It meant that now the world could become, through the struggles of human beings, a world of equality, fraternity and freedom and this message inspired the peoples."
"This is the birthday we are celebrating today. Celebration, of course, does not mean fine words about the glory of their ancestors, but real actions."
He talked about "scientific reflection, without ornamentation and blinkers - and on this we can be proud of the achievements of modern Greek historiography and of our universities. Secondly, it means that with today’s peace efforts, the struggle to put the country back on its feet, with the broadening of democracy and social achievements, we are honouring the Greek Revolution of 1821."
"The Greek people are in the front line and are waging the struggle for the defence of dignity, democracy, social solidarity, for support for the persecuted, as evidenced by the refugee effort. All of us feel proud about it."
"Despite the great difficulties, we are proceeding down the road of social solidarity, democracy, culture and national and social dignity - with the ideals of the Revolution of 1821 and the Enlightenment to inspire us, in the conditions of the 21st century, for Greece and for Europe."
"This is the birthday we are celebrating today. Celebration, of course, does not mean fine words about the glory of their ancestors, but real actions."
He talked about "scientific reflection, without ornamentation and blinkers - and on this we can be proud of the achievements of modern Greek historiography and of our universities. Secondly, it means that with today’s peace efforts, the struggle to put the country back on its feet, with the broadening of democracy and social achievements, we are honouring the Greek Revolution of 1821."
"The Greek people are in the front line and are waging the struggle for the defence of dignity, democracy, social solidarity, for support for the persecuted, as evidenced by the refugee effort. All of us feel proud about it."
"Despite the great difficulties, we are proceeding down the road of social solidarity, democracy, culture and national and social dignity - with the ideals of the Revolution of 1821 and the Enlightenment to inspire us, in the conditions of the 21st century, for Greece and for Europe."
The Second Assessment remains stalled despite “intensified talks”
Late on Thursday night negotiations to complete the Second Assessment remained stalled over key issues of further pension reductions, labour market “reforms” and the operation of the power supply sector (by reducing the market share of the publicly owned Public Power Corporation through the sale of some coal-fired plants).
Earlier in the week, agreement had seemed close until the IMF called for yet further cuts to pensions.
Then the IMF insisted that economic measures scheduled for implementation in 2020 be brought forward to 2019. Apparently the IMF is concerned that general elections scheduled to take place in Greece in 2019 could bring in a new government that may refuse to honour reforms agreed to by the current administration.
It is still being projected that the framework for an agreement could be presented at the next Eurogroup meeting on April 7th. This would allow officials to draft all the measures that Greek MPs must legislate by the next scheduled Eurogroup on May 22nd when the IMF is expected to indicate whether it will join Greece’s third international bailout programme.
On Thursday Finance Minister Euclid Tsakalotos confirmed in a meeting with MPs of Independent Greeks (ANEL) that so far the two sides have managed to agree to the reduction of the tax-free threshold to 5,900€ from the current 8,636€ and to reduce further the pensions of some 900,000 retirees.
“The IMF has made it clear that it will not participate in the programme without guarantees of debt relief measures. This will be an important signal for the markets, as it will give the green light for medium term debt relief measures and for Greece to enter the quantitative easing programme of the European Central Bank, which means a lot for the liquidity of Greek banks,” Finance Minister Euclid Tsakalotos said.
Furthermore, he said that the measures that the Greek negotiating team has agreed on will have zero fiscal impact because there will be counter measures to balance them. Regarding privatizations, he said that the sale of public assets will go as planned and that the new privatization “super fund” will be a vehicle that will increase public wealth.
Greek Government spokesman Dimitris Tzanakopoulos stated on Wednesday that “The aim of the Government is to have a comprehensive agreement. This means that if there is no agreement on all issues, nothing has been agreed”.
“First is the staff level agreement, followed by the negotiation on the medium-term measures on debt and the primary surpluses for 2019 and then the legislation of the main part of the agreed issues. Meanwhile, there is a possibility to legislate some secondary issues that have already been agreed with the Institutions.”
Late on Thursday night negotiations to complete the Second Assessment remained stalled over key issues of further pension reductions, labour market “reforms” and the operation of the power supply sector (by reducing the market share of the publicly owned Public Power Corporation through the sale of some coal-fired plants).
Earlier in the week, agreement had seemed close until the IMF called for yet further cuts to pensions.
Then the IMF insisted that economic measures scheduled for implementation in 2020 be brought forward to 2019. Apparently the IMF is concerned that general elections scheduled to take place in Greece in 2019 could bring in a new government that may refuse to honour reforms agreed to by the current administration.
It is still being projected that the framework for an agreement could be presented at the next Eurogroup meeting on April 7th. This would allow officials to draft all the measures that Greek MPs must legislate by the next scheduled Eurogroup on May 22nd when the IMF is expected to indicate whether it will join Greece’s third international bailout programme.
On Thursday Finance Minister Euclid Tsakalotos confirmed in a meeting with MPs of Independent Greeks (ANEL) that so far the two sides have managed to agree to the reduction of the tax-free threshold to 5,900€ from the current 8,636€ and to reduce further the pensions of some 900,000 retirees.
“The IMF has made it clear that it will not participate in the programme without guarantees of debt relief measures. This will be an important signal for the markets, as it will give the green light for medium term debt relief measures and for Greece to enter the quantitative easing programme of the European Central Bank, which means a lot for the liquidity of Greek banks,” Finance Minister Euclid Tsakalotos said.
Furthermore, he said that the measures that the Greek negotiating team has agreed on will have zero fiscal impact because there will be counter measures to balance them. Regarding privatizations, he said that the sale of public assets will go as planned and that the new privatization “super fund” will be a vehicle that will increase public wealth.
Greek Government spokesman Dimitris Tzanakopoulos stated on Wednesday that “The aim of the Government is to have a comprehensive agreement. This means that if there is no agreement on all issues, nothing has been agreed”.
“First is the staff level agreement, followed by the negotiation on the medium-term measures on debt and the primary surpluses for 2019 and then the legislation of the main part of the agreed issues. Meanwhile, there is a possibility to legislate some secondary issues that have already been agreed with the Institutions.”
The Future of the EU – PM Tsipras’s Letter – the Acquis Communautaire
European leaders remain committed to upholding the European Union’s social acquis throughout Europe, including Greece, European Council President Donald Tusk said on Saturday, in a press conference after the EU’s 60th anniversary summit.
Replying to questions, Tusk referred to a letter sent to him by Greek Prime Minister Alexis Tsipras on this issue and expressed confidence that “together with the social partners we will continue to uphold a very high level of social protection and the best practices in labour relations across all Europe, as embodied already in the EU social acquis.”
[The Acquis Communautaire is the accumulated body of European Union (EU) law and obligations from 1958 to the present day. It comprises all the EU's treaties and laws (directives, regulations, decisions), declarations and resolutions, international agreements and the judgments of the Court of Justice. Ed]
“This point is often discussed amongst leaders and it is a position that we all share – and, of course, that includes Greece,” he added."We should not to try to change Greek legislation with regard to strikes"
European leaders are one after the other lining up in favour of the protection of the European acquis, following the letter of Alexis Tsipras. In the Rome Declaration, after the intervention of Athens, the piece of the text about "Social Europe" has been kept in - despite objections from many countries - and there has even been added a reference to the fight against unemployment, which was absent from the first drafts.
European Commission President Jean Claude Juncker noted in a statement that "publicly, with Prime Minister Tsipras, since May 2015 I have already expressed my support for a fair and effective collective bargaining system" and maintained that there should be a "commitment from creditors to give Greece the desired and necessary room for manoeuvre to create its own future. All this while respecting the acquis communautaire, of which we are the custodians."
Mr. Juncker also referred to the negotiations about the agreement, stressing that "all the actors need to work responsibly to reach an agreement on a technical level as quickly as possible" and that "the next appointment should be at Eurogroup on 7th April". He added that "ideally, we should be in a position to present a technical level agreement by then and we'll continue to support you in this aim.
Meanwhile, Mr Juncker, speaking at a meeting of the social partners and European trade unions with the European institutions, reiterated that "the social acquis applies to all", and stressed that "Greece needs us, but we also need Greece."
Mr Juncker in his speech said that the Commission has started a process of reflection on the pillar of social rights. "I've always been in favour of this, I want to achieve this during my tenure." He added that this cannot be achieved without both parties, both the trade unions and the employers.
"Legislation concerning strikes is a national competence, not the IMF’s, not the EU’s. We should not try to change the Greek legislation concerning strikes."
PM Alexis Tsipras's proposal on the safeguarding of the European social acquis and in particular the safeguarding of labour rights was supported by the Italian Prime Minister Paulo Tzentiloni. " Let us protect the social acquis in all EU Member States without exception, as you rightly noted in his letter my dear Greek Prime Minister", said the Italian Prime Minister in his speech.
PM Tzentiloni said: "We know that the crisis has triggered equally serious social crises in many Member States. We know that the EU is a system of values and norms, including the social achievements, the so-called social acquis, one of the most important elements achieved in the 60 years of integration. And I believe that we must do everything in our power to protect the social acquis, in all Member States, without exception, as my dear friend the Greek Prime Minister rightly noted in his letter. I am absolutely convinced that the social dimension can be the start of a new impetus in the process of integration."
“There can be no doubt that this Europe is not the Europe we dreamed of, it is not the Europe we want. There is also no doubt, however, that no other path is open than to fight from within to change it,” Greece’s Prime Minister Alexis Tsipras said on Saturday, after the 27 European leaders concluded an anniversary summit by signing a declaration of unity.
PM Tsipras said that he had put at the centre of the discussion the crucial issue of the EU’s social acquis and whether this was to be equally accessible to all EU member-states. “Obviously, the answer I was given was positive but it remains to be seen whether rhetoric and the action continue to diverge. We will see this very soon,” he added.
“The reply given by the heads of European institutional bodies, saying that Greece is no exception to Europe’s social acquis encourages us to continue in a struggle that concerns the workers and people of Greece as much as the workers and all the peoples of Europe.”
Alexis Tsipras was also critical of the trade unions in Greece, which he said were “in the rear guard and not on the front lines, as in other countries in Europe.”
Brexit Repercussions Costly to Greece
Britain’s departure from the EU will have direct and indirect repercussions for Greece, the Hellenic Federation of Enterprises (SEV) said in a statement calling on the EU to negotiate a deal that would ensure effective access to the British market for Greek products.
Britain ranks 7th in Greece’s export destinations. Greek exports to the United Kingdom amount to over 1€ billion annually. According to SEV, Greece exports to Britain 350€ million in industrial products, 200€ million in chemical products, 350€ million in food products and about 100€ million in other products.
The Federation believes Greece should expect a decrease in British tourist arrivals as the depreciation of the sterling against the euro will reduce the purchasing power of the British and limit their travel options. It is estimated that currently over two million British tourists arrive in Greece each year.
At the same time, there are concerns about the 60,000 Greeks who live and work in Britain. Deputy Prime Minister Yiannis Dragasakis met with the British Ambassador to Athens, Kate Smith, on March 15th to discuss the issue, namely, the legal framework as regards the residential status of Greeks in Britain.
Greek employees in the UK may find themselves facing very strict bureaucratic procedures, limited access to welfare benefits and less favourable working conditions than their British colleagues. Greek students in British universities are likely to face increases of up to 40% in tuition fees.
European leaders remain committed to upholding the European Union’s social acquis throughout Europe, including Greece, European Council President Donald Tusk said on Saturday, in a press conference after the EU’s 60th anniversary summit.
Replying to questions, Tusk referred to a letter sent to him by Greek Prime Minister Alexis Tsipras on this issue and expressed confidence that “together with the social partners we will continue to uphold a very high level of social protection and the best practices in labour relations across all Europe, as embodied already in the EU social acquis.”
[The Acquis Communautaire is the accumulated body of European Union (EU) law and obligations from 1958 to the present day. It comprises all the EU's treaties and laws (directives, regulations, decisions), declarations and resolutions, international agreements and the judgments of the Court of Justice. Ed]
“This point is often discussed amongst leaders and it is a position that we all share – and, of course, that includes Greece,” he added."We should not to try to change Greek legislation with regard to strikes"
European leaders are one after the other lining up in favour of the protection of the European acquis, following the letter of Alexis Tsipras. In the Rome Declaration, after the intervention of Athens, the piece of the text about "Social Europe" has been kept in - despite objections from many countries - and there has even been added a reference to the fight against unemployment, which was absent from the first drafts.
European Commission President Jean Claude Juncker noted in a statement that "publicly, with Prime Minister Tsipras, since May 2015 I have already expressed my support for a fair and effective collective bargaining system" and maintained that there should be a "commitment from creditors to give Greece the desired and necessary room for manoeuvre to create its own future. All this while respecting the acquis communautaire, of which we are the custodians."
Mr. Juncker also referred to the negotiations about the agreement, stressing that "all the actors need to work responsibly to reach an agreement on a technical level as quickly as possible" and that "the next appointment should be at Eurogroup on 7th April". He added that "ideally, we should be in a position to present a technical level agreement by then and we'll continue to support you in this aim.
Meanwhile, Mr Juncker, speaking at a meeting of the social partners and European trade unions with the European institutions, reiterated that "the social acquis applies to all", and stressed that "Greece needs us, but we also need Greece."
Mr Juncker in his speech said that the Commission has started a process of reflection on the pillar of social rights. "I've always been in favour of this, I want to achieve this during my tenure." He added that this cannot be achieved without both parties, both the trade unions and the employers.
"Legislation concerning strikes is a national competence, not the IMF’s, not the EU’s. We should not try to change the Greek legislation concerning strikes."
PM Alexis Tsipras's proposal on the safeguarding of the European social acquis and in particular the safeguarding of labour rights was supported by the Italian Prime Minister Paulo Tzentiloni. " Let us protect the social acquis in all EU Member States without exception, as you rightly noted in his letter my dear Greek Prime Minister", said the Italian Prime Minister in his speech.
PM Tzentiloni said: "We know that the crisis has triggered equally serious social crises in many Member States. We know that the EU is a system of values and norms, including the social achievements, the so-called social acquis, one of the most important elements achieved in the 60 years of integration. And I believe that we must do everything in our power to protect the social acquis, in all Member States, without exception, as my dear friend the Greek Prime Minister rightly noted in his letter. I am absolutely convinced that the social dimension can be the start of a new impetus in the process of integration."
“There can be no doubt that this Europe is not the Europe we dreamed of, it is not the Europe we want. There is also no doubt, however, that no other path is open than to fight from within to change it,” Greece’s Prime Minister Alexis Tsipras said on Saturday, after the 27 European leaders concluded an anniversary summit by signing a declaration of unity.
PM Tsipras said that he had put at the centre of the discussion the crucial issue of the EU’s social acquis and whether this was to be equally accessible to all EU member-states. “Obviously, the answer I was given was positive but it remains to be seen whether rhetoric and the action continue to diverge. We will see this very soon,” he added.
“The reply given by the heads of European institutional bodies, saying that Greece is no exception to Europe’s social acquis encourages us to continue in a struggle that concerns the workers and people of Greece as much as the workers and all the peoples of Europe.”
Alexis Tsipras was also critical of the trade unions in Greece, which he said were “in the rear guard and not on the front lines, as in other countries in Europe.”
Brexit Repercussions Costly to Greece
Britain’s departure from the EU will have direct and indirect repercussions for Greece, the Hellenic Federation of Enterprises (SEV) said in a statement calling on the EU to negotiate a deal that would ensure effective access to the British market for Greek products.
Britain ranks 7th in Greece’s export destinations. Greek exports to the United Kingdom amount to over 1€ billion annually. According to SEV, Greece exports to Britain 350€ million in industrial products, 200€ million in chemical products, 350€ million in food products and about 100€ million in other products.
The Federation believes Greece should expect a decrease in British tourist arrivals as the depreciation of the sterling against the euro will reduce the purchasing power of the British and limit their travel options. It is estimated that currently over two million British tourists arrive in Greece each year.
At the same time, there are concerns about the 60,000 Greeks who live and work in Britain. Deputy Prime Minister Yiannis Dragasakis met with the British Ambassador to Athens, Kate Smith, on March 15th to discuss the issue, namely, the legal framework as regards the residential status of Greeks in Britain.
Greek employees in the UK may find themselves facing very strict bureaucratic procedures, limited access to welfare benefits and less favourable working conditions than their British colleagues. Greek students in British universities are likely to face increases of up to 40% in tuition fees.
Second Assessment:
Eurozone Finance Ministers agree to “intensify” talks
25.3.2017
Monday’s Eurogroup in Brussels made no progress on the Second Assessment. Finance Minister Euclid Tsakalotos, his Deputy, Giorgos Houliarakis, and Labour Minister Effie Achtsioglou remained in Brussels as Eurozone Finance Ministers did agree to “intensify” talks – which will also include International Monetary Fund monitors – over the following few days in a bid to bridge the gap dividing Greece and its creditors, namely over labour and pension reforms. A Government spokesman said “The two crucial issues are not technical questions, they are deeply political. And they must be resolved at a higher level.”
n his press statement after the meeting, Finance Minister Euclid Tsakalotos said “We have seen substantive progress. At the suggestion of the Institutions, the Greek Government and Mr Dijsselbloem it was decided to have an intensification of the process and so I will remain both myself, Mrs. Achtsioglou and Mr. Houliarakis to discuss the issues that remain, basically on labour issues and pensions. I think we can make progress on these issues, as the Chairman of the Eurogroup himself said."
"The idea is that many times you need to change the order, leave the technical level and find the key issues where there are differences, and then resolve the final details of the agreement.
So our strategy is to stay here and make substantive progress, leave aside the smallest problems and if possible get a deal on those afterwards when the Institutions return to Athens, a package of measures that we and the Institutions agree on before the Eurogroup on 7th April in Malta.
From there on, the process can accelerate much more and we can go to the IMF at its Spring meeting on April 22nd to add the finishing touches to the whole package."
Labour Issues
Collective bargaining is a European best practice and should be restored in Greece, Eurogroup President Jeroen Dijsselbloem said on Tuesday.
Speaking during a discussion with MEPs on the European Parliament’s Economic and Financial Affairs Committee, Mr. Dijsselbloem referred back to the agreement in the summer of 2015. He said that the advice of a group of experts was sought on the “best practices” that Greece’s labour market should follow in the future.
This group of experts had reached the conclusion that collective bargaining was a European best practice and must be restored in Greece, he said. At the same time, Mr. Dijsselbloem noted, in some countries there were criteria of representativeness in collective bargaining and these criteria were now under discussion between Greek authorities and the Institutions. “The opinion of the experts’ group was absolutely clear.”
Greece as a “paradigm”
Minister of Labour, Social Security, and Welfare, Effie Achtsioglou, said it was clear that neoliberal forces view the issue of labour relations in Greece as a “new paradigm that must be generalised”.
“In this sense, the end of labour deregulation and the restoration of labour regularity in Greece will be a victory for all European workers,” she emphasised.
On Thursday Prime Minister Alexis Tsipras sent a letter to Donald Tusk, the President of the European Council, to Jean-Claude Juncker the President of the European Commission and to the Chairpersons of Summit in Rome Joseph Muscat and Paolo Gentiloni, requesting a clear answer to whether the European social model, especially in terms of labour relations and collective bargaining, applies to all member states without exception, or does it apply to all with the exception of Greece.
The Prime Minister’s complete letter:
Dear President,
Dear Donald,
In a few days, in Rome, we will celebrate 60 years from the signing of the founding Treaties of today’s European Union.
In these 60 years, the EU consolidated – at an institutional level – the achievements of its peoples.
Achievements whose goal is to ensure progress, prosperity and peace.
Achievements that aim towards the protection of the fundamental rights of the peoples of Europe, including the freedom of expression and movement, as well as the right to employment and social protection.
Unfortunately, though, in the last few years, many of these achievements are threatened despite the fact that they have been consolidated at an institutional level. It is, nevertheless, a matter of democratic choice of the peoples of Europe and the will of their governments, to protect these achievements and broaden them.
In all cases? Unfortunately not in all cases. This right is restricted in my country. Greece has been in programmes of economic adjustment for the last 7 years, in the name of which a situation of exception from our common European acquis communautaire, [The Acquis Communautaire is the accumulated body of European Union (EU) law and obligations from 1958 to the present day. It comprises all the EU's treaties and laws (directives, regulations, decisions), declarations and resolutions, international agreements and the judgments of the Court of Justice. Ed]
has been implicitly imposed. Most notably this relates to the exception from the European acquis communautaire on social rights and specifically the exception from “best practices” on labour relations and collective bargaining.
The Greek government, for the last two years, has been trying to return Greece to the standards of the European social model and to overturn the status of exception in the case of labour relations.
We fully respect the commitments we undertook for the necessary budgetary adjustment and the restructuring of the economy and the labour market which we have followed strictly.
Nevertheless, we cannot understand demands that go beyond these commitments, like the prolongation of the exception of Greece from the European acquis communautaire.
This demand, after all, leads to an unjustified delay of the conclusion of the Second Assessment of the Greek economic programme, denying from the Greek economy its great potential for recovery, at a crucial moment.
It is evident that the responsibility for defining the policy framework and its institutional boundaries within the EU, does not belong to non-european supranational organizations, but exclusively to European institutions and the intergovernmental bodies of the European Union.
As we move towards the Rome Summit, I assure you that Greece would like to celebrate, together with its partners, this 60 year anniversary and more specifically the great common achievements of our peoples.
For this reason we intend to support the Rome Declaration, a document which moves in a positive direction.
Nevertheless, in order to be able to celebrate these achievements, it has to be made clear, on an official level, whether they apply also to Greece. Whether, in other words, the European acquis communautaire is valid for all member states without exception, or for all except Greece.
Therefore I ask for your support in order to protect, together, the right of Greece to return to the standards of the European social model.”
Dijsselbloem’s “stupid remarks”
Jeroen Dijsselbloem, President of the Eurogroup, referring to “crisis countries in southern Europe” in an interview early last week with the German newspaper Frankfurter Allgemeine Zeitung, said "I cannot spend all my money on liquour and women and then ask for support."
Speaking on Thursday, Alexis Tsipras said that the crisis had widened the gap between the European north and south, but also deepened the divisions in Europe through “aggressive and irrational stereotypes”. Referring to Mr. Dijsselbloem’s “stupid” remarks, he stressed, “Fortunately there are only a few who want to hide the economic inequality that neoliberalism has caused behind a nonexistent cultural distinction […] They do it by resorting to ridiculous stereotypes and a biased rhetoric of prudent north and irresponsible south”. “Instead of stupid statements about ‘drinks and women’, Mr. Dijsselbloem would do better to ask Germany to increase its public expenditure,” PM Tsipras said.
"The idea is that many times you need to change the order, leave the technical level and find the key issues where there are differences, and then resolve the final details of the agreement.
So our strategy is to stay here and make substantive progress, leave aside the smallest problems and if possible get a deal on those afterwards when the Institutions return to Athens, a package of measures that we and the Institutions agree on before the Eurogroup on 7th April in Malta.
From there on, the process can accelerate much more and we can go to the IMF at its Spring meeting on April 22nd to add the finishing touches to the whole package."
Labour Issues
Collective bargaining is a European best practice and should be restored in Greece, Eurogroup President Jeroen Dijsselbloem said on Tuesday.
Speaking during a discussion with MEPs on the European Parliament’s Economic and Financial Affairs Committee, Mr. Dijsselbloem referred back to the agreement in the summer of 2015. He said that the advice of a group of experts was sought on the “best practices” that Greece’s labour market should follow in the future.
This group of experts had reached the conclusion that collective bargaining was a European best practice and must be restored in Greece, he said. At the same time, Mr. Dijsselbloem noted, in some countries there were criteria of representativeness in collective bargaining and these criteria were now under discussion between Greek authorities and the Institutions. “The opinion of the experts’ group was absolutely clear.”
Greece as a “paradigm”
Minister of Labour, Social Security, and Welfare, Effie Achtsioglou, said it was clear that neoliberal forces view the issue of labour relations in Greece as a “new paradigm that must be generalised”.
“In this sense, the end of labour deregulation and the restoration of labour regularity in Greece will be a victory for all European workers,” she emphasised.
On Thursday Prime Minister Alexis Tsipras sent a letter to Donald Tusk, the President of the European Council, to Jean-Claude Juncker the President of the European Commission and to the Chairpersons of Summit in Rome Joseph Muscat and Paolo Gentiloni, requesting a clear answer to whether the European social model, especially in terms of labour relations and collective bargaining, applies to all member states without exception, or does it apply to all with the exception of Greece.
The Prime Minister’s complete letter:
Dear President,
Dear Donald,
In a few days, in Rome, we will celebrate 60 years from the signing of the founding Treaties of today’s European Union.
In these 60 years, the EU consolidated – at an institutional level – the achievements of its peoples.
Achievements whose goal is to ensure progress, prosperity and peace.
Achievements that aim towards the protection of the fundamental rights of the peoples of Europe, including the freedom of expression and movement, as well as the right to employment and social protection.
Unfortunately, though, in the last few years, many of these achievements are threatened despite the fact that they have been consolidated at an institutional level. It is, nevertheless, a matter of democratic choice of the peoples of Europe and the will of their governments, to protect these achievements and broaden them.
In all cases? Unfortunately not in all cases. This right is restricted in my country. Greece has been in programmes of economic adjustment for the last 7 years, in the name of which a situation of exception from our common European acquis communautaire, [The Acquis Communautaire is the accumulated body of European Union (EU) law and obligations from 1958 to the present day. It comprises all the EU's treaties and laws (directives, regulations, decisions), declarations and resolutions, international agreements and the judgments of the Court of Justice. Ed]
has been implicitly imposed. Most notably this relates to the exception from the European acquis communautaire on social rights and specifically the exception from “best practices” on labour relations and collective bargaining.
The Greek government, for the last two years, has been trying to return Greece to the standards of the European social model and to overturn the status of exception in the case of labour relations.
We fully respect the commitments we undertook for the necessary budgetary adjustment and the restructuring of the economy and the labour market which we have followed strictly.
Nevertheless, we cannot understand demands that go beyond these commitments, like the prolongation of the exception of Greece from the European acquis communautaire.
This demand, after all, leads to an unjustified delay of the conclusion of the Second Assessment of the Greek economic programme, denying from the Greek economy its great potential for recovery, at a crucial moment.
It is evident that the responsibility for defining the policy framework and its institutional boundaries within the EU, does not belong to non-european supranational organizations, but exclusively to European institutions and the intergovernmental bodies of the European Union.
As we move towards the Rome Summit, I assure you that Greece would like to celebrate, together with its partners, this 60 year anniversary and more specifically the great common achievements of our peoples.
For this reason we intend to support the Rome Declaration, a document which moves in a positive direction.
Nevertheless, in order to be able to celebrate these achievements, it has to be made clear, on an official level, whether they apply also to Greece. Whether, in other words, the European acquis communautaire is valid for all member states without exception, or for all except Greece.
Therefore I ask for your support in order to protect, together, the right of Greece to return to the standards of the European social model.”
Dijsselbloem’s “stupid remarks”
Jeroen Dijsselbloem, President of the Eurogroup, referring to “crisis countries in southern Europe” in an interview early last week with the German newspaper Frankfurter Allgemeine Zeitung, said "I cannot spend all my money on liquour and women and then ask for support."
Speaking on Thursday, Alexis Tsipras said that the crisis had widened the gap between the European north and south, but also deepened the divisions in Europe through “aggressive and irrational stereotypes”. Referring to Mr. Dijsselbloem’s “stupid” remarks, he stressed, “Fortunately there are only a few who want to hide the economic inequality that neoliberalism has caused behind a nonexistent cultural distinction […] They do it by resorting to ridiculous stereotypes and a biased rhetoric of prudent north and irresponsible south”. “Instead of stupid statements about ‘drinks and women’, Mr. Dijsselbloem would do better to ask Germany to increase its public expenditure,” PM Tsipras said.
The Future of the EU
Nikos Voutsis, the President of the Greek Parliament, characterised as "full of generalisations and inconsistencies" the White Paper put forward by the EU Commission leadership. He pointed out that "the Eurozone needs great clarity: for strengthened unity, the turn towards development, social and regional cohesion, the reducing of inequalities, the equal allocation of resources between the strong European Centre and weak periphery, the boosting of democratic accountability and social justice.
He warned that "extreme neoliberal conservative circles in the EU envision a Europe that is à la carte". "It is a development that is lending its ear to the increased social pressure for substantive changes to the economic and social policy of the EU that have as their horizon also the corresponding radical changes to the norms we have had up until now."
"The EU should:
* follow policies which will not neglect its founding principles that recognize the equality and equal rights of Member States.
* prevent the process that leads to making permanent and institutionalising existing differences in levels of development.
* take on the risk on a pro rata basis for the shaping of mechanisms to tackle the problem of over-indebtedness, the financing of investment in infrastructure and the guaranteeing of deposits, on the basis of a logic that is different from the architecture and functioning of the EU that is today extending the existing inequalities.
* recognise that a common security policy can exist only on the basis of a common policy for a social Europe.
* strengthen the Community budget and the structural funds.
* deepen democratic institutions and for legislative and control procedures in the design and workings of a progressive social agenda."
Nikos Voutsis, the President of the Greek Parliament, characterised as "full of generalisations and inconsistencies" the White Paper put forward by the EU Commission leadership. He pointed out that "the Eurozone needs great clarity: for strengthened unity, the turn towards development, social and regional cohesion, the reducing of inequalities, the equal allocation of resources between the strong European Centre and weak periphery, the boosting of democratic accountability and social justice.
He warned that "extreme neoliberal conservative circles in the EU envision a Europe that is à la carte". "It is a development that is lending its ear to the increased social pressure for substantive changes to the economic and social policy of the EU that have as their horizon also the corresponding radical changes to the norms we have had up until now."
"The EU should:
* follow policies which will not neglect its founding principles that recognize the equality and equal rights of Member States.
* prevent the process that leads to making permanent and institutionalising existing differences in levels of development.
* take on the risk on a pro rata basis for the shaping of mechanisms to tackle the problem of over-indebtedness, the financing of investment in infrastructure and the guaranteeing of deposits, on the basis of a logic that is different from the architecture and functioning of the EU that is today extending the existing inequalities.
* recognise that a common security policy can exist only on the basis of a common policy for a social Europe.
* strengthen the Community budget and the structural funds.
* deepen democratic institutions and for legislative and control procedures in the design and workings of a progressive social agenda."
Second Assessment : Still Delayed
18.3.2017
On Friday, an EU official in Brussels appeared to insist that current negotiations over the Second Assessment will not be concluded without changes to labour laws. He also confirmed that there is not enough time in April to reach a comprehensive settlement that will include the participation of the International Monetary Fund and a deal on the midterm debt relief measures. The Easter holidays and the IMF’s spring meeting in Washington on April 21-23 were cited as the main reasons for the delay, as well as differences on various issues including the measures the Government needs to implement to achieve a 3.5% primary surplus in 2019.
Nevertheless Finance Minister Euclid Tsakalotos maintained also on Friday that an agreement could be reached by the April 7th Eurogroup.
Nevertheless Finance Minister Euclid Tsakalotos maintained also on Friday that an agreement could be reached by the April 7th Eurogroup.
On Wednesday Finance Minister Euclid Tsakalotos and Labour Minister Efi Achtsioglou briefed SYRIZA MPs on the party’s committees for monitoring the government’s work on economic and labour issues. The briefing was held ahead of the Eurogroup on March 20th. They reiterated the Government’s position that there will be simultaneous legislation of the reforms and the positive measures to offset them and that both will be implemented at the same time.
Measures and Counter Measures
Dimitris Tzanakopoylos, the Government’s spokesman, responded to a document tabled in the Dutch Parliament by the President of the Eurogroup Jeroen Dijsselbloem in which it was suggested that the counter measures would only be made law if there was “fiscal space”.
Dimitris Tzanakopoylos stated “The countermeasures will be legislated on simultaneously with the measures of burden and will be implemented in the certain event that in 2018 we will have achieved the goal of a Primary Surplus of 3.5% of GDP.”
Mr. Tzanakopoylos stated that both the Prime Minister and the Finance Minister and Mr. Dijsselbloem himself have pointed out that “the financial space” involves predictions and not actual results. Specifically, in December 2018 – with the tabling of the budget for 2019 there must be a mechanism that certifies that at the end of that year the Primary Surplus target of 3.5% will have been achieved. This mechanism is a matter for negotiation with the partners, given that the official certification of the 2018 fiscal outcome is made by Eurostat in April 2019.
Collective labour agreements and collective bargaining
One key outstanding issue – collective labour agreements and collective bargaining – was raised by European Parliament Vice President Dimitris Papadimoulis during a debate in the European Parliament on Wednesday. He asked the European Commissioner for Economic and Financial Affairs Pierre Moscovici to state the position of the European Commission on the matter and make it clear whether he supports the restoration of the EU norm in Greece as regards labour relations. He underlined that the group of experts, formed by ESM, IMF, EU, ECB and the Greek government’s unanimous decision, tabled its report in December. The report requested the restoration of the collective negotiations in Greece.
Commissioner Moscovici answered that the European Commission defends the European social model and foresees collective contracts and believes that Greece should be included in this model, adding that “The group of experts’ report is clear. The way we should move is according to the principles of the International Labour Organisation and the European framework.”
The Future of the EU
On Sunday, President of the Hellenic Republic, Prokopis Pavlopoulos voiced his disagreement with the idea of a “multiple-speed Europe,” stressing that Europe needs to protect its unity and that this “does not have speeds.”
President Pavlopoulos noted that Greece’s history had repeatedly shown that “the great and important things we achieved united, while all disunity has resulted in painful injury, striking right to our national core.”
“So now we have an obligation, always with respect for the ideological and political individuality of each of the democratic political forces, to proceed united to deal with the deep crisis for our country and our people,” President Pavlopoulos added.
“Greece’s progress has been defined by an unswerving dedication to the country’s European path, given that this path leads to the defence of both the country and of the entire European edifice, thus by extension to the European ideal “whose roots are by general admission Greek,” he said.
“In this framework I should like to conclude by stressing the following: the best way to honour the 60th year since the start of the European Union, especially with the opportunity of the emblematic summit meeting in Rome on March 25th, is to protect its unity. And sticking to proclamations is not enough,” he said.
At this critical time, the President added, the EU needed real will and bold decisions for the defence of its future. “On this path and in this direction Greece can and must play a leading role — and it will,” he added.
As part of the debate on the future of the European Union, the Prime Minister Alexis Tsipras stressed that “progressive Europe, the trade unions and the social forces, the political terrain of the Left, of Social Democracy and Ecology must seek a new hegemonic role in developments. Let us prevent the weakening of the European policies of cohesion and convergence.”
“In any event, this debate must have at its heart the re-orientation of the European strategy towards development and solidarity. Otherwise, the rift between the European Institutions and European societies will continuously grow, not just in the least, but also in the more economically strong countries.”
Measures and Counter Measures
Dimitris Tzanakopoylos, the Government’s spokesman, responded to a document tabled in the Dutch Parliament by the President of the Eurogroup Jeroen Dijsselbloem in which it was suggested that the counter measures would only be made law if there was “fiscal space”.
Dimitris Tzanakopoylos stated “The countermeasures will be legislated on simultaneously with the measures of burden and will be implemented in the certain event that in 2018 we will have achieved the goal of a Primary Surplus of 3.5% of GDP.”
Mr. Tzanakopoylos stated that both the Prime Minister and the Finance Minister and Mr. Dijsselbloem himself have pointed out that “the financial space” involves predictions and not actual results. Specifically, in December 2018 – with the tabling of the budget for 2019 there must be a mechanism that certifies that at the end of that year the Primary Surplus target of 3.5% will have been achieved. This mechanism is a matter for negotiation with the partners, given that the official certification of the 2018 fiscal outcome is made by Eurostat in April 2019.
Collective labour agreements and collective bargaining
One key outstanding issue – collective labour agreements and collective bargaining – was raised by European Parliament Vice President Dimitris Papadimoulis during a debate in the European Parliament on Wednesday. He asked the European Commissioner for Economic and Financial Affairs Pierre Moscovici to state the position of the European Commission on the matter and make it clear whether he supports the restoration of the EU norm in Greece as regards labour relations. He underlined that the group of experts, formed by ESM, IMF, EU, ECB and the Greek government’s unanimous decision, tabled its report in December. The report requested the restoration of the collective negotiations in Greece.
Commissioner Moscovici answered that the European Commission defends the European social model and foresees collective contracts and believes that Greece should be included in this model, adding that “The group of experts’ report is clear. The way we should move is according to the principles of the International Labour Organisation and the European framework.”
The Future of the EU
On Sunday, President of the Hellenic Republic, Prokopis Pavlopoulos voiced his disagreement with the idea of a “multiple-speed Europe,” stressing that Europe needs to protect its unity and that this “does not have speeds.”
President Pavlopoulos noted that Greece’s history had repeatedly shown that “the great and important things we achieved united, while all disunity has resulted in painful injury, striking right to our national core.”
“So now we have an obligation, always with respect for the ideological and political individuality of each of the democratic political forces, to proceed united to deal with the deep crisis for our country and our people,” President Pavlopoulos added.
“Greece’s progress has been defined by an unswerving dedication to the country’s European path, given that this path leads to the defence of both the country and of the entire European edifice, thus by extension to the European ideal “whose roots are by general admission Greek,” he said.
“In this framework I should like to conclude by stressing the following: the best way to honour the 60th year since the start of the European Union, especially with the opportunity of the emblematic summit meeting in Rome on March 25th, is to protect its unity. And sticking to proclamations is not enough,” he said.
At this critical time, the President added, the EU needed real will and bold decisions for the defence of its future. “On this path and in this direction Greece can and must play a leading role — and it will,” he added.
As part of the debate on the future of the European Union, the Prime Minister Alexis Tsipras stressed that “progressive Europe, the trade unions and the social forces, the political terrain of the Left, of Social Democracy and Ecology must seek a new hegemonic role in developments. Let us prevent the weakening of the European policies of cohesion and convergence.”
“In any event, this debate must have at its heart the re-orientation of the European strategy towards development and solidarity. Otherwise, the rift between the European Institutions and European societies will continuously grow, not just in the least, but also in the more economically strong countries.”
Nikos Kotzias offers an Overview
On a visit to Washington, DC last week Nikos Kotzias, the Greek Foreign Minister gave a wide-ranging interview. These are some excerpts.
“In the EU, we have a deficit of leadership. There is not enough democratic discussion on what type of Europe we want for the twenty-first century. The EU has some useful tools, but not all of them are useful for the future. There are many young people going to school and hearing that the EU can sanction nations, then they hear it can impose an embargo on nations, then they hear that Greece is facing austerity. When you see the whole picture, the EU is not so attractive, if it is reduced to only these instruments. This is why we need to discuss the vision of the EU, to focus on our values and democracy. The populist movements are on the rise because this discussion has never taken place.
“A second issue pertains to the multiple crises in the union: Brexit, the eurozone crisis, refugee problems. I believe that these are individual crises, but they all stem from a leadership crisis in the EU. If we tried to create a system based on rules and European values, things would be much better.
Third, the European leadership needs to realize that there are losers in the globalization process. The political forces need to focus more on the problems of the workers, on the concerns of the middle class. The members of the middle class are scared they will lose their jobs and need reassurance and answers. The problem is that politicians are not answering the people’s questions. The longer we delay the answers to the people, the more they will turn to populists or far right groups. We also underestimated the future. We thought the U.S. would decline and that the twenty-first century would be a European century. America is not in decline. Southeast Asia is also rising. Europe is not as important as the Europeans thought it would be, and its leadership is not happy. There is also too much bureaucracy and not enough investment in people, in the Second Machine Age and in the future.”
In response to a question about relations with Russia, specifically his stance on the future of sanctions against Russia, the Minister said “We are taking a decision on sanctions, but that is the easy game. The hard game is to take one essential decision: Does Russia belong within the European security architecture, or is the European security architecture shaped against Russia? Also, is Russia like the Soviet Union? If not, then we need to look at the Helsinki Treaty and rethink things. We need to look in the long term about how to engage with Russia and ask them to decide if they want to be part of the European security architecture. If so, they need to respect the rule of law. I hope America will ask Russia this as well, but at the end of the day, the Russians need to answer that question. My view is that there can be compromise if there is discussion.
On Turkey, he said “Since I became Minister of Foreign Affairs of Greece, I’ve been dealing constantly with issues related to Turkey. There are many political and social contradictions in Turkey, many different religions and many economic contradictions. One side in the Turkish Government seems to be insecure. The other side in the Government is arrogant. This combination of fear and arrogance is making the regime even more nervous. They need though to respect other nations. With regard to the Nazi comments, I must say that the killings that Nazis organized were beyond genocide. It was like an industrial process. That is unique in human history. When you start dealing with every problem with this mentality—that is, calling everyone you don’t like “Nazi”—then you are underestimating what the Nazis did and downgrading their crimes. Very frankly, you are normalizing what they did.
He was asked what he considered to be Germany’s role in the EU at the moment. Did he think Berlin is still too bent on austerity and that its policies are crippling the economies of the south?
He responded: “We have been arguing in the negotiations about the future of the EU since the 1990s about the need to upgrade democracy in the EU and to enhance the role of the European Parliament. After the euro crisis, the parliament lost power to the informal institutions of the EU that are not democratic: the eurozone and the eurogroup. The parliament is not participating in the decision making in these fields, so in reality there is a formal structure that is democratic, and an informal system where the parliament has no power. The structure of power is based on economic, not political or democratic power. Thus, the Germans are the strongest; they have a leadership role and they call for more and more austerity in Greece. They believe that Greece must be punished because of the behaviour of its elites.
The big question is: what do the Germans themselves think? Germans had accumulated a massive debt after both World Wars. After the London Conference in the 1950s, the Americans realized that the creditors and Germans needed to find a compromise. They realized that Germany could only pay back her debt if there was growth. That was a win-win situation. If Germany grows, then creditors can get their money back. Now people talk about how good the German economy is, but forget that they had debt relief by the Americans because of Washington’s good will. Although the Germans committed many crimes during the war, the Americans were generous to them afterwards so that there could be growth.
But the Germans have not been so kind to us and haven’t treated us the way the Americans treated them. Germany does not want growth; they just want to suck Greece dry. Germans are not paying high interest rates for their own loans; there are companies that are getting very low rates in the country. Making it easier only for Germans. Germany is part of the problem since they have interests in the EU, but they fail to think constructively about the common interest of the EU member states.
On a visit to Washington, DC last week Nikos Kotzias, the Greek Foreign Minister gave a wide-ranging interview. These are some excerpts.
“In the EU, we have a deficit of leadership. There is not enough democratic discussion on what type of Europe we want for the twenty-first century. The EU has some useful tools, but not all of them are useful for the future. There are many young people going to school and hearing that the EU can sanction nations, then they hear it can impose an embargo on nations, then they hear that Greece is facing austerity. When you see the whole picture, the EU is not so attractive, if it is reduced to only these instruments. This is why we need to discuss the vision of the EU, to focus on our values and democracy. The populist movements are on the rise because this discussion has never taken place.
“A second issue pertains to the multiple crises in the union: Brexit, the eurozone crisis, refugee problems. I believe that these are individual crises, but they all stem from a leadership crisis in the EU. If we tried to create a system based on rules and European values, things would be much better.
Third, the European leadership needs to realize that there are losers in the globalization process. The political forces need to focus more on the problems of the workers, on the concerns of the middle class. The members of the middle class are scared they will lose their jobs and need reassurance and answers. The problem is that politicians are not answering the people’s questions. The longer we delay the answers to the people, the more they will turn to populists or far right groups. We also underestimated the future. We thought the U.S. would decline and that the twenty-first century would be a European century. America is not in decline. Southeast Asia is also rising. Europe is not as important as the Europeans thought it would be, and its leadership is not happy. There is also too much bureaucracy and not enough investment in people, in the Second Machine Age and in the future.”
In response to a question about relations with Russia, specifically his stance on the future of sanctions against Russia, the Minister said “We are taking a decision on sanctions, but that is the easy game. The hard game is to take one essential decision: Does Russia belong within the European security architecture, or is the European security architecture shaped against Russia? Also, is Russia like the Soviet Union? If not, then we need to look at the Helsinki Treaty and rethink things. We need to look in the long term about how to engage with Russia and ask them to decide if they want to be part of the European security architecture. If so, they need to respect the rule of law. I hope America will ask Russia this as well, but at the end of the day, the Russians need to answer that question. My view is that there can be compromise if there is discussion.
On Turkey, he said “Since I became Minister of Foreign Affairs of Greece, I’ve been dealing constantly with issues related to Turkey. There are many political and social contradictions in Turkey, many different religions and many economic contradictions. One side in the Turkish Government seems to be insecure. The other side in the Government is arrogant. This combination of fear and arrogance is making the regime even more nervous. They need though to respect other nations. With regard to the Nazi comments, I must say that the killings that Nazis organized were beyond genocide. It was like an industrial process. That is unique in human history. When you start dealing with every problem with this mentality—that is, calling everyone you don’t like “Nazi”—then you are underestimating what the Nazis did and downgrading their crimes. Very frankly, you are normalizing what they did.
He was asked what he considered to be Germany’s role in the EU at the moment. Did he think Berlin is still too bent on austerity and that its policies are crippling the economies of the south?
He responded: “We have been arguing in the negotiations about the future of the EU since the 1990s about the need to upgrade democracy in the EU and to enhance the role of the European Parliament. After the euro crisis, the parliament lost power to the informal institutions of the EU that are not democratic: the eurozone and the eurogroup. The parliament is not participating in the decision making in these fields, so in reality there is a formal structure that is democratic, and an informal system where the parliament has no power. The structure of power is based on economic, not political or democratic power. Thus, the Germans are the strongest; they have a leadership role and they call for more and more austerity in Greece. They believe that Greece must be punished because of the behaviour of its elites.
The big question is: what do the Germans themselves think? Germans had accumulated a massive debt after both World Wars. After the London Conference in the 1950s, the Americans realized that the creditors and Germans needed to find a compromise. They realized that Germany could only pay back her debt if there was growth. That was a win-win situation. If Germany grows, then creditors can get their money back. Now people talk about how good the German economy is, but forget that they had debt relief by the Americans because of Washington’s good will. Although the Germans committed many crimes during the war, the Americans were generous to them afterwards so that there could be growth.
But the Germans have not been so kind to us and haven’t treated us the way the Americans treated them. Germany does not want growth; they just want to suck Greece dry. Germans are not paying high interest rates for their own loans; there are companies that are getting very low rates in the country. Making it easier only for Germans. Germany is part of the problem since they have interests in the EU, but they fail to think constructively about the common interest of the EU member states.
Constitutional Review: Citizens invited to complete questionnaire
8.03.2017
In July 2016, Alexis Tsipras, taking the podium in front of three slogans — “A New Constitution” “A New Post-Junta Environment” and “A New Greece,” unveiled his vision for “Greece 2021.” He called for “a wide, open and fruitful dialogue on the Constitution of a new Greece”
On Tuesday Prime Minister Alexis Tsipras addressed the special parliamentary committee, the Committee on the Constitutional Review, which is overseeing the government initiative for a review of the Greek Constitution. The meeting signalled the beginning of the key phase to encourage the participation of citizens in the process including through the Commission’s website http://www.syntagma-dialogos.gov.gr
Participation in the online consultation is through the website of TAXIS NET.
Citizens need to log on through the Taxis Net system to complete the questionnaire, which takes an estimated 20 minutes and covers topics such as institutional reform, transparency and oversight, relations between church and state, collective freedoms and rights, and issues like environment, culture, etc. All information regarding gender, age and place of resident will be used by the committee for statistical purposes and will remain confidential.
Once the public consultation process has been completed, the Committee will be turning to scientific and social representatives from around the country in order to hear their views on the issues.
The Committee is expected to present its recommendations in September.
Constitutional Review: 53 Questions for Citizens
The total estimated time to complete the questionnaire (six modules) is 20 minutes.
“With the online consultation, the Committee on the Constitutional Review looks forward to the participation of society, so breaking the "embargo" that wants the process, namely the revision of the Constitution, to be a subject just for experts and MPs.
After the online consultation, the Commission has planned a consultation with scientific and social institutions nationwide, and in the headquarters of the 13 Regions of the country. Phase 2 of consultation is to be completed in September.
The six thematic sections of the consultation
The public consultation relates to the following thematic areas:
* An Institutional reconstruction of the State and the system’s architecture
* Institutions of transparency, accountability and direct democracy
* The State-Church Relationship
* The rule of law and individual freedoms
* Collective freedoms and social rights
* Matters of public interest, the environment, public spaces, culture
The Questionnaire
The public consultation questionnaire includes fifty-three questions in six thematic sections.
First, the role of the President of the Republic.
For example, whether their election should be by an increased majority of Parliament (as the Constitution has it) or directly by the people without Parliament’s dissolution if the increased majority in it is not achieved. Should scrutiny of the President of the Republic be exercised by Parliament or by the people or by both? Again, what of these powers should be available to the President of the Republic? (there are multiple choice answers) To dissolve Parliament prematurely? To convene the Cabinet? To convene the Council of political leaders? To call a referendum on critical national issues according to his own judgement? To issue proclamations to the people?
Next there are the questions about the role of Parliament. First, about the maximum number of MPs: To stay as stipulated by the current Constitution (300) or to restrict it to 250 or to restrict it to 200? Should Members of the State Council stay as defined by the current Constitution (maximum 15) or should they be increased or should they be removed as an institution? Should expatriate Greeks vote from abroad in national elections and should they be represented by distinct parliamentary seats or should they vote from abroad in national elections without specific representation or should they not vote from abroad? Another theme is the MP's term of Office: Should the Constitution provide for unlimited parliamentary terms (as applies now) or should the parliamentary term be broken up (so an MP may not be elected for more than 2 consecutive terms or should there be an absolute limit to parliamentary terms of office?
In the consultation there is also a matter of incompatibility, as there is a question about whether the Constitution should provide for existing incompatibilities with parliamentary status or the extension of incompatibilities with the parliamentary status or incompatibility with parliamentary and ministerial status.
On the question of parliamentary immunity, the question is put as follows: Should MPs only be prosecuted with the permission of Parliament for any criminal offence or only for political offences or should they be prosecuted without the permission of Parliament for all their criminal acts? Next question is the electoral system: Should the Constitution not provide for any particular form of electoral system or should it provide for the system of proportional representation?
There follows the set of questions about the Government. Should the Prime Minister be: in every case an MP or either an MP or an extra-Parliamentary figure? Also, should it be possible for Parliament in any event to withdraw its confidence from the Government or should it only be able to withdraw its confidence in the Government if it has ensured the selection of a new Prime Minister? Should those competent to hear offences committed by members of the Government be the plenary of the Areopagus or a Special Court (as is currently the case)? Should the criminal prosecution and the normal questioning of members of the Government be exercised in each case by the Supreme Court (without the permission of Parliament) or by the Supreme Court with the permission of Parliament in any case or with the permission of Parliament only for the offences directly related to the exercise of their functions?
In terms of Local and Regional Government, the citizen is asked whether the way the system of elected single representatives and collective bodies of local government at the first and second levels ' 2nd degree should be enshrined in the Constitution or should it be left as the responsibility of the public legislature. May powers that belong to the central State be delegated to the local authorities with their consent or regardless of their consent or with their consent and always with the granting of the corresponding financial resources?
The next set of questions concerns the "Institutions of transparency, accountability and participation of citizens". For example, which types of referenda should be enshrined in the constitution? (There are multiple choice answers)
On the issue of the state funding of political parties, the question is Yes or No. In the event of an affirmative answer, the citizen is invited to clarify whether the financing must cover the total expenditure or only electoral expenditure or a particular programme of social, political, and research activities. Also whether the funding should be proportional to electoral strength or inversely proportional, or equal. Again, whether the funding of political parties is allowed only from named and transparent contributions without financial limit or only from named and transparent contributions with a financial limit or from any private individual or body anonymously and without financial limit. Finally, should the ensuring of transparency and pluralism in the broadcasting media be subject to the exclusive control of the Independent Authorities or is it a matter of concern for all state institutions (Parliament, the Government, Independent Authorities).
Then the questionnaire lists the questions about the relationship of Church and State. Should the Constitution specify the prevailing religion, without producing any adverse consequence to the detriment of other religions or should it not specify the prevailing religion. Should the teaching and the language of texts with religious content lie exclusively within the competence of the organs of the State or should it belong exclusively to the competence of the institutions of the State with the consent of the Greek Orthodox Church and other official religious doctrines. Should the financial auditing and the financial obligations of all the recognized religious denominations be exercised by the organs of the State as well as other legal persons or should it be regulated as defined by the relevant law?
In the chapter on "Individual Freedoms", the question is as follows: should citizens and the institutions of the State be required to swear a political oath (on their honour and reputation) or swear either a political or religious oath or swear a political oath and then afterwards a religious oath according to their religious beliefs? In the organisation and functioning of the Judiciary, should senior judges be chosen by the Council of Ministers as provided for in the current Constitution or should they be elected by the Court itself from among its members or should they be chosen by the Council of Ministers after specific proposals by the Supreme Courts or should they be selected by the President of the Republic after specific proposals by the Supreme Courts?
In the chapter, "Collective Freedoms and Social Rights", these questions are raised: given the legal provision for the safety of the individual, do you believe certain categories of workers should be excluded from the right to strike? Yes or No. If Yes, which men and women from which of the following categories should be forbidden this right? a. conscripts in the armed forces b. those serving in the security forces? c. the Judiciary. Should the right to strike be guaranteed for workers solely for the safeguarding of the immediate economic and labour interests or should it be guaranteed for the preservation of all kinds of their interests? Should the Constitution explicitly prohibit the right to lock-out or should it allow the right to lock-out? Should collective bargaining, collective agreements, their content and, in particular, wages, be explicitly enshrined in the Constitution? Yes or No. Should the political commandeering of services as a measure of dealing with the consequences of the strike be expressly prohibited by the Constitution? Yes or No. Should there be a constitutional provision for the recognition, safeguarding and promotion of social cooperatives and other social economy structures? Yes or No. In addition, which of the following basic social goods and social services do you believe the Constitution should guarantee the universal right of access: (multiple choice answers) a. Water b. Energy c. Shelter d. Education e.Health f. None of the above.
Should Higher Education be provided exclusively by Public Entities or should it be provided by non-profit organisations under the supervision of the State under the same conditions as the public university or should it be provided by any entity without restrictions as to its purpose? Should access to higher education should be free for all fields of study or just for undergraduate studies or for any course of study?
In the last module, the citizen is asked whether they believe the privatisation and management of networks for providing electricity and water should be constitutionally forbidden. Yes or No. Do they believe that the Constitution should include a provision that will bind the State to take measures to protect against the effects of climate change? Yes or No. Do they believe that the absolute claim of the Greek State for the return of antiquities that were removed illegally from the country should be enshrined in the Constitution? Yes or No. To all questions the opportunity is given to reply, "I Don’t Know / I choose not to answer".
Participation in the online consultation is through the website of TAXIS NET.
Citizens need to log on through the Taxis Net system to complete the questionnaire, which takes an estimated 20 minutes and covers topics such as institutional reform, transparency and oversight, relations between church and state, collective freedoms and rights, and issues like environment, culture, etc. All information regarding gender, age and place of resident will be used by the committee for statistical purposes and will remain confidential.
Once the public consultation process has been completed, the Committee will be turning to scientific and social representatives from around the country in order to hear their views on the issues.
The Committee is expected to present its recommendations in September.
Constitutional Review: 53 Questions for Citizens
The total estimated time to complete the questionnaire (six modules) is 20 minutes.
“With the online consultation, the Committee on the Constitutional Review looks forward to the participation of society, so breaking the "embargo" that wants the process, namely the revision of the Constitution, to be a subject just for experts and MPs.
After the online consultation, the Commission has planned a consultation with scientific and social institutions nationwide, and in the headquarters of the 13 Regions of the country. Phase 2 of consultation is to be completed in September.
The six thematic sections of the consultation
The public consultation relates to the following thematic areas:
* An Institutional reconstruction of the State and the system’s architecture
* Institutions of transparency, accountability and direct democracy
* The State-Church Relationship
* The rule of law and individual freedoms
* Collective freedoms and social rights
* Matters of public interest, the environment, public spaces, culture
The Questionnaire
The public consultation questionnaire includes fifty-three questions in six thematic sections.
First, the role of the President of the Republic.
For example, whether their election should be by an increased majority of Parliament (as the Constitution has it) or directly by the people without Parliament’s dissolution if the increased majority in it is not achieved. Should scrutiny of the President of the Republic be exercised by Parliament or by the people or by both? Again, what of these powers should be available to the President of the Republic? (there are multiple choice answers) To dissolve Parliament prematurely? To convene the Cabinet? To convene the Council of political leaders? To call a referendum on critical national issues according to his own judgement? To issue proclamations to the people?
Next there are the questions about the role of Parliament. First, about the maximum number of MPs: To stay as stipulated by the current Constitution (300) or to restrict it to 250 or to restrict it to 200? Should Members of the State Council stay as defined by the current Constitution (maximum 15) or should they be increased or should they be removed as an institution? Should expatriate Greeks vote from abroad in national elections and should they be represented by distinct parliamentary seats or should they vote from abroad in national elections without specific representation or should they not vote from abroad? Another theme is the MP's term of Office: Should the Constitution provide for unlimited parliamentary terms (as applies now) or should the parliamentary term be broken up (so an MP may not be elected for more than 2 consecutive terms or should there be an absolute limit to parliamentary terms of office?
In the consultation there is also a matter of incompatibility, as there is a question about whether the Constitution should provide for existing incompatibilities with parliamentary status or the extension of incompatibilities with the parliamentary status or incompatibility with parliamentary and ministerial status.
On the question of parliamentary immunity, the question is put as follows: Should MPs only be prosecuted with the permission of Parliament for any criminal offence or only for political offences or should they be prosecuted without the permission of Parliament for all their criminal acts? Next question is the electoral system: Should the Constitution not provide for any particular form of electoral system or should it provide for the system of proportional representation?
There follows the set of questions about the Government. Should the Prime Minister be: in every case an MP or either an MP or an extra-Parliamentary figure? Also, should it be possible for Parliament in any event to withdraw its confidence from the Government or should it only be able to withdraw its confidence in the Government if it has ensured the selection of a new Prime Minister? Should those competent to hear offences committed by members of the Government be the plenary of the Areopagus or a Special Court (as is currently the case)? Should the criminal prosecution and the normal questioning of members of the Government be exercised in each case by the Supreme Court (without the permission of Parliament) or by the Supreme Court with the permission of Parliament in any case or with the permission of Parliament only for the offences directly related to the exercise of their functions?
In terms of Local and Regional Government, the citizen is asked whether the way the system of elected single representatives and collective bodies of local government at the first and second levels ' 2nd degree should be enshrined in the Constitution or should it be left as the responsibility of the public legislature. May powers that belong to the central State be delegated to the local authorities with their consent or regardless of their consent or with their consent and always with the granting of the corresponding financial resources?
The next set of questions concerns the "Institutions of transparency, accountability and participation of citizens". For example, which types of referenda should be enshrined in the constitution? (There are multiple choice answers)
On the issue of the state funding of political parties, the question is Yes or No. In the event of an affirmative answer, the citizen is invited to clarify whether the financing must cover the total expenditure or only electoral expenditure or a particular programme of social, political, and research activities. Also whether the funding should be proportional to electoral strength or inversely proportional, or equal. Again, whether the funding of political parties is allowed only from named and transparent contributions without financial limit or only from named and transparent contributions with a financial limit or from any private individual or body anonymously and without financial limit. Finally, should the ensuring of transparency and pluralism in the broadcasting media be subject to the exclusive control of the Independent Authorities or is it a matter of concern for all state institutions (Parliament, the Government, Independent Authorities).
Then the questionnaire lists the questions about the relationship of Church and State. Should the Constitution specify the prevailing religion, without producing any adverse consequence to the detriment of other religions or should it not specify the prevailing religion. Should the teaching and the language of texts with religious content lie exclusively within the competence of the organs of the State or should it belong exclusively to the competence of the institutions of the State with the consent of the Greek Orthodox Church and other official religious doctrines. Should the financial auditing and the financial obligations of all the recognized religious denominations be exercised by the organs of the State as well as other legal persons or should it be regulated as defined by the relevant law?
In the chapter on "Individual Freedoms", the question is as follows: should citizens and the institutions of the State be required to swear a political oath (on their honour and reputation) or swear either a political or religious oath or swear a political oath and then afterwards a religious oath according to their religious beliefs? In the organisation and functioning of the Judiciary, should senior judges be chosen by the Council of Ministers as provided for in the current Constitution or should they be elected by the Court itself from among its members or should they be chosen by the Council of Ministers after specific proposals by the Supreme Courts or should they be selected by the President of the Republic after specific proposals by the Supreme Courts?
In the chapter, "Collective Freedoms and Social Rights", these questions are raised: given the legal provision for the safety of the individual, do you believe certain categories of workers should be excluded from the right to strike? Yes or No. If Yes, which men and women from which of the following categories should be forbidden this right? a. conscripts in the armed forces b. those serving in the security forces? c. the Judiciary. Should the right to strike be guaranteed for workers solely for the safeguarding of the immediate economic and labour interests or should it be guaranteed for the preservation of all kinds of their interests? Should the Constitution explicitly prohibit the right to lock-out or should it allow the right to lock-out? Should collective bargaining, collective agreements, their content and, in particular, wages, be explicitly enshrined in the Constitution? Yes or No. Should the political commandeering of services as a measure of dealing with the consequences of the strike be expressly prohibited by the Constitution? Yes or No. Should there be a constitutional provision for the recognition, safeguarding and promotion of social cooperatives and other social economy structures? Yes or No. In addition, which of the following basic social goods and social services do you believe the Constitution should guarantee the universal right of access: (multiple choice answers) a. Water b. Energy c. Shelter d. Education e.Health f. None of the above.
Should Higher Education be provided exclusively by Public Entities or should it be provided by non-profit organisations under the supervision of the State under the same conditions as the public university or should it be provided by any entity without restrictions as to its purpose? Should access to higher education should be free for all fields of study or just for undergraduate studies or for any course of study?
In the last module, the citizen is asked whether they believe the privatisation and management of networks for providing electricity and water should be constitutionally forbidden. Yes or No. Do they believe that the Constitution should include a provision that will bind the State to take measures to protect against the effects of climate change? Yes or No. Do they believe that the absolute claim of the Greek State for the return of antiquities that were removed illegally from the country should be enshrined in the Constitution? Yes or No. To all questions the opportunity is given to reply, "I Don’t Know / I choose not to answer".
“In a year from now, everyone will be able to discern which parties and which Governments put the country on the adventure of the Memoranda and which Government is the one that has managed to pull it out.”
“We are not just negotiating the completion of the Second Assessment but also how we will reach a comprehensive agreement that will mark the prospect of Greece’s definitive exit from the programmes of Trusteeship and the removal of its sovereignty”
“We are closer than ever" to the prospect of Greece's discharge from the regime of Trusteeship, stressed the Prime Minister Alexis Tsipras, in a newspaper interview.
“We are not simply negotiating the completion of the Second Assessment but also how we can reach a comprehensive agreement that includes the necessary debt relief measures that will make the debt viable and will pave the way for the inclusion of Greece in the ECB's quantitative easing programme.
“The great issue of the age is the bypassing of the will of the people through the mechanism of the economic Trusteeship of the country. And this mechanism in its basic concept is very simple: Borrowing in exchange for reforms, otherwise bankruptcy. Even when this rhetoric is downplayed on the part of the Lenders, the threat is always real even though it is dormant. Therefore our big objective cannot be other than deliverance from this regime of Trusteeship. And we are now closer than ever before to such a prospect.”
“Our job is to do everything in our power to conclude the Second Assessment as soon as possible and in the best possible way for the Greek economy and Greek society. However in my opinion a political association has been formed which understandably makes us feel that, especially after the agreement in principle of 20th February, things have gone in a positive direction. Everyone understands that the progress of the Greek economy must not be halted by further delays. At this moment nobody wants a hitch in the negotiations, neither by the Institutions nor by the Member States of the Eurozone ".
Making reference to the balance of measures and countermeasures, he noted that "the compromise that we have accepted is socially sustainable. And this means that for each euro of burden there will be corresponding relief, always provided that in 2018 we will have managed to achieve the agreed objectives, which today seems certain given the course of the Greek economy and the positive projections of everyone. Our goal is for the positive measures agreed upon to be targeted just at those social groups that are bearing the burdens. It is of course a difficult exercise but I think we have the technical ability to get very close to that goal. '
Prime Minister Alexis Tsipras underlined the great goal of this Government, which is none other than the reduction of unemployment. After referring to the policies which “were favoured by the previous Governments of PASOK and New Democracy which have led to today’s salaries of 200€ and 300€ but which also have led to a rapid increase in part-time employment,” the Prime Minister focused on the policy of this Government: “In these negotiations but also in the future, we will continue to fight to reverse this course. Because we know very well that an incentive for new investment and a reduction in unemployment - which is the great goal – cannot be the reduction of labour costs, the unaccountability of employers, the lack of an institutional framework for the protection of labour, the abolition of trade union rights of workers, the eventual conversion of the country into a “Special Economic Zone”.
In the interview PM Tsipras also takes stock of the Government project. So, although "at some point we need to discuss that what this means for democracy in a country within a Programme is that it is a form of suspension of popular sovereignty", nevertheless: "This does not mean that there that there are no possibilities for the exercise of policy and given the budget constraints, nor that we are not making tremendous efforts which are certainly getting results. I am talking about health, education, the fight against corruption, the protection of the weak, combating extreme poverty, the enhancement of individual rights. I remind you about the Government initiatives to give access to the national health service to 2.5 million uninsured people, the recruitment of medical and nursing staff, the support of schools and the recruitment of teachers, combating major fraud and the disclosure of major scandals that have taken the road to Justice (KEELPNO, Novartis), the 13th pension, the programmes for combating the humanitarian crisis, the upgraded programmes for tackling unemployment, the cohabitation for same-sex couples, the law on nationality for second-generation immigrants. And there are many smaller and bigger problems that we are trying every day to solve given the chronic pathologies of the Greek administrative machine,”
The Prime Minister's belief is that "the restoration of normality, the end of trusteeship, will gradually restore the traditional base-line of political confrontation: Right versus Left”.
However, I think, it is very superficial the approach of those who believe that because we too were forced to implement a Memorandum, we are the same. No we're not the same. We did not take bribes from weapon sales. We were not on the "black" payrolls of Siemens. We did not participate in the party of squandering public money in KELPNO or in the case of Novartis, at the time when wages and pensions fell by half. You know we're not from the aristocracy. Nor do we think the people are agents or our servants. We are part of the people and not part of the elite. And this difference everyone understands. Even those who disagree with us, recognize our honesty and our intentions. For this, and despite the daily and unprecedented propaganda of the media system, the world is not taking the bait.
“In a year from now, everyone will be able to discern which parties and which Governments put the country on the adventure of the Memoranda and which Government is one that has managed to pull it out.”
“We are not just negotiating the completion of the Second Assessment but also how we will reach a comprehensive agreement that will mark the prospect of Greece’s definitive exit from the programmes of Trusteeship and the removal of its sovereignty”
“We are closer than ever" to the prospect of Greece's discharge from the regime of Trusteeship, stressed the Prime Minister Alexis Tsipras, in a newspaper interview.
“We are not simply negotiating the completion of the Second Assessment but also how we can reach a comprehensive agreement that includes the necessary debt relief measures that will make the debt viable and will pave the way for the inclusion of Greece in the ECB's quantitative easing programme.
“The great issue of the age is the bypassing of the will of the people through the mechanism of the economic Trusteeship of the country. And this mechanism in its basic concept is very simple: Borrowing in exchange for reforms, otherwise bankruptcy. Even when this rhetoric is downplayed on the part of the Lenders, the threat is always real even though it is dormant. Therefore our big objective cannot be other than deliverance from this regime of Trusteeship. And we are now closer than ever before to such a prospect.”
“Our job is to do everything in our power to conclude the Second Assessment as soon as possible and in the best possible way for the Greek economy and Greek society. However in my opinion a political association has been formed which understandably makes us feel that, especially after the agreement in principle of 20th February, things have gone in a positive direction. Everyone understands that the progress of the Greek economy must not be halted by further delays. At this moment nobody wants a hitch in the negotiations, neither by the Institutions nor by the Member States of the Eurozone ".
Making reference to the balance of measures and countermeasures, he noted that "the compromise that we have accepted is socially sustainable. And this means that for each euro of burden there will be corresponding relief, always provided that in 2018 we will have managed to achieve the agreed objectives, which today seems certain given the course of the Greek economy and the positive projections of everyone. Our goal is for the positive measures agreed upon to be targeted just at those social groups that are bearing the burdens. It is of course a difficult exercise but I think we have the technical ability to get very close to that goal. '
Prime Minister Alexis Tsipras underlined the great goal of this Government, which is none other than the reduction of unemployment. After referring to the policies which “were favoured by the previous Governments of PASOK and New Democracy which have led to today’s salaries of 200€ and 300€ but which also have led to a rapid increase in part-time employment,” the Prime Minister focused on the policy of this Government: “In these negotiations but also in the future, we will continue to fight to reverse this course. Because we know very well that an incentive for new investment and a reduction in unemployment - which is the great goal – cannot be the reduction of labour costs, the unaccountability of employers, the lack of an institutional framework for the protection of labour, the abolition of trade union rights of workers, the eventual conversion of the country into a “Special Economic Zone”.
In the interview PM Tsipras also takes stock of the Government project. So, although "at some point we need to discuss that what this means for democracy in a country within a Programme is that it is a form of suspension of popular sovereignty", nevertheless: "This does not mean that there that there are no possibilities for the exercise of policy and given the budget constraints, nor that we are not making tremendous efforts which are certainly getting results. I am talking about health, education, the fight against corruption, the protection of the weak, combating extreme poverty, the enhancement of individual rights. I remind you about the Government initiatives to give access to the national health service to 2.5 million uninsured people, the recruitment of medical and nursing staff, the support of schools and the recruitment of teachers, combating major fraud and the disclosure of major scandals that have taken the road to Justice (KEELPNO, Novartis), the 13th pension, the programmes for combating the humanitarian crisis, the upgraded programmes for tackling unemployment, the cohabitation for same-sex couples, the law on nationality for second-generation immigrants. And there are many smaller and bigger problems that we are trying every day to solve given the chronic pathologies of the Greek administrative machine,”
The Prime Minister's belief is that "the restoration of normality, the end of trusteeship, will gradually restore the traditional base-line of political confrontation: Right versus Left”.
However, I think, it is very superficial the approach of those who believe that because we too were forced to implement a Memorandum, we are the same. No we're not the same. We did not take bribes from weapon sales. We were not on the "black" payrolls of Siemens. We did not participate in the party of squandering public money in KELPNO or in the case of Novartis, at the time when wages and pensions fell by half. You know we're not from the aristocracy. Nor do we think the people are agents or our servants. We are part of the people and not part of the elite. And this difference everyone understands. Even those who disagree with us, recognize our honesty and our intentions. For this, and despite the daily and unprecedented propaganda of the media system, the world is not taking the bait.
“In a year from now, everyone will be able to discern which parties and which Governments put the country on the adventure of the Memoranda and which Government is one that has managed to pull it out.”
Future of the EU
On Wednesday March 1st, the European Commission published a White Paper on the future of Europe that is the Commission's contribution to the Summit of Rome of 25th March 2017. Introducing the White Paper to the plenary of the European Parliament, in Brussels, Chairman Jean-Claude Juncker presented five scenarios for the way in which the EU could be developed between now and 2025, depending on the choices made.
On Monday the leaders of France, Germany, Spain and Italy, after the mini Summit at Versailles, were arguing in favour of a multi-speed Europe.
"Unity does not mean uniformity," stressed French President Francois Hollande before the meeting attended by German Chancellor Angela Merkel, Marian Rajoy PM Spain and Paolo Gentiloni PM Italy at Versailles. The French President went on "certain countries could proceed faster and stronger"
"That is why I am in favour of the existence of new forms of cooperation, in favour of new projects, in favour of what we call “differentiated cooperation”, explained the French President.
"That way," he continued, "some countries could move faster and farther in areas such as defence, the Eurozone through the deepening of economic and monetary union, such as fiscal and social harmonisation, such as the culture."
Some countries could "go faster and stronger without the others being excluded and without them being able to object," explained President Hollande.
According to Angela Merkel, Europeans should "have the courage to accept that some countries are progressing faster than others." She added that does this does not close the road “for those which have been delayed.” “But it must be possible for us to move forward,” she noted.
“We need a social Europe, which is aimed at investment and development, which offers answers to anyone who is left behind. We haven't yet reached that level,” added Paulo Gentiloni, at the end of the meeting.
“Progress is needed on common defence,” he continued, “to protect our security,” adding that "France, Italy, Germany and Spain agree".
The Italian Prime Minister has advocated "an EU with greater integration and different levels of integration" with the rationale that "Member States may have different aspirations and the Union has to offer, to those different aspirations, different answers. Keeping, of course, the single project.”
He said that at the session on the anniversary of the Treaties of Rome, on 25th March, the Union will start again - from the European people ". Finally, he called on all 27 Member States to make their own choices, within the framework of the Commission's White Paper, without those choices we risk endangering the very future of the European project ".
Spanish PM, Mariano Rajoy, said simply that “Spain is prepared to proceed to integration with all those who will want to pursue it.”
*****
This link will take you to an article by Paul Mason in which he puts forward some ideas for a sixth option https://www.socialeurope.eu/2017/03/option-six-a-europe-of-democracy-and-social-justice/
On Wednesday March 1st, the European Commission published a White Paper on the future of Europe that is the Commission's contribution to the Summit of Rome of 25th March 2017. Introducing the White Paper to the plenary of the European Parliament, in Brussels, Chairman Jean-Claude Juncker presented five scenarios for the way in which the EU could be developed between now and 2025, depending on the choices made.
On Monday the leaders of France, Germany, Spain and Italy, after the mini Summit at Versailles, were arguing in favour of a multi-speed Europe.
"Unity does not mean uniformity," stressed French President Francois Hollande before the meeting attended by German Chancellor Angela Merkel, Marian Rajoy PM Spain and Paolo Gentiloni PM Italy at Versailles. The French President went on "certain countries could proceed faster and stronger"
"That is why I am in favour of the existence of new forms of cooperation, in favour of new projects, in favour of what we call “differentiated cooperation”, explained the French President.
"That way," he continued, "some countries could move faster and farther in areas such as defence, the Eurozone through the deepening of economic and monetary union, such as fiscal and social harmonisation, such as the culture."
Some countries could "go faster and stronger without the others being excluded and without them being able to object," explained President Hollande.
According to Angela Merkel, Europeans should "have the courage to accept that some countries are progressing faster than others." She added that does this does not close the road “for those which have been delayed.” “But it must be possible for us to move forward,” she noted.
“We need a social Europe, which is aimed at investment and development, which offers answers to anyone who is left behind. We haven't yet reached that level,” added Paulo Gentiloni, at the end of the meeting.
“Progress is needed on common defence,” he continued, “to protect our security,” adding that "France, Italy, Germany and Spain agree".
The Italian Prime Minister has advocated "an EU with greater integration and different levels of integration" with the rationale that "Member States may have different aspirations and the Union has to offer, to those different aspirations, different answers. Keeping, of course, the single project.”
He said that at the session on the anniversary of the Treaties of Rome, on 25th March, the Union will start again - from the European people ". Finally, he called on all 27 Member States to make their own choices, within the framework of the Commission's White Paper, without those choices we risk endangering the very future of the European project ".
Spanish PM, Mariano Rajoy, said simply that “Spain is prepared to proceed to integration with all those who will want to pursue it.”
*****
This link will take you to an article by Paul Mason in which he puts forward some ideas for a sixth option https://www.socialeurope.eu/2017/03/option-six-a-europe-of-democracy-and-social-justice/
Institutions
return to Athens
4.3.2017
On Tuesday, at the first day of negotiations on the Second Assessment, the Greek side was represented by Minister of Finance Euclid Tsakalotos and Deputy Minister Giorgos Chouliarakis, Labour Minister Efi Achtsioglou, Environment and Energy Minister Giorgos Stathakis and Economy and Development Minister Dimitris Papadimitriou. The meetings ended at 10 pm. The Ministers left without making any comments to the press.
Creditors are reported to have asked for new austerity measures of as much as 2% of gross domestic product to come into force in 2019 if Greece misses its budget targets. The Greek Government believes that this number could fall to between 1.7% and 1.8% because of an improved budget performance in 2016 and its carry-over effect for the coming years.
The IMF is reported to be demanding the legislation of 3.6€ billion worth of austerity measures. It is reported that pension cuts were demanded by IMF envoy Delia Velculescu, further reducing the national pension. The 3.6€ billion are expected to be raised by pension cuts (1.8€ bln) and by reducing the tax-free threshold (1.8€ bln). All these measures need to be pre-legislated. Parliament will vote on them now and they will come into effect from January 1st, 2019.
Greek Prime Minister Alexis Tsipras’ Government last Monday agreed to legislate on the structural reforms demanded by the IMF that will lower the threshold of tax-free income and amend the pension system by 2019. The Government says the deal won’t increase austerity since the new legislation will include stimulus measures in addition to the “reforms”.
"Some may lose, of course, but some will gain. That is to say, some who we are not currently helping, who need our help, we will help. Some may lose, we will do everything we can in the negotiations to limit what they lose and get something in compensation" Minister Tsakalotos said, emphasising that the package had not been finalized. "We never said that the tax system over the last 40 years was the best possible. We never said that through the system of patronage we had reached a social system, nor that its restructuring was the best outcome and so we are always open to discussion, now that there will be zero financial impact [on citizens. Ed.], but we will have restructuring."
Regarding the Public Holding Company (EDIS), creditors pointed to a delay in the appointment of the Board and the evaluation of the assets of the 11 public utility companies that EDIS will be managing.
Furthermore, the Finance Minister was criticized for the delay in the establishment and operation of the Privatisation Fund, since there is still no board appointed or rules and procedures set, while there is still no discussion of the properties and relations of the four companies (HRADF, FSF, ETAS, EDIS) the super fund will be managing.
Also, the Lenders are seeking the immediate sale of 17% of the Public Power Corporation (DEH) and the acceleration by the end of March of the sale of another part of the power grid (ADMIE) until 24% of it is privatised.
At a press briefing on Thursday government spokesman Dimitris Tzanakopoulos stated “At this particular phase of the negotiation at a technical level, it is necessary for all sides to be cautious regarding the information they leak to the press. The negotiation should take place in the “battlefield” and not through leaks that cause confusion to the Greek citizens.” Moreover, he said that reforms of 2% of GDP are being examined. Regarding the measures to be implemented as of 2019, he said that there will be no fiscal impact. The aim of the Government is to take the country out of the Memoranda.”
On Friday it was reported that Greece has requested a loan from the World Bank.
“The Government of Greece has asked the World Bank to provide technical and financial assistance to address pressing challenges including: long-term unemployment, economic competitiveness and growth and social protection,” a spokesperson from the World Bank reported.
“In accordance with World Bank procedures, any final decision on providing loans would be subject to approval by the bank’s board of executive directors.” The World Bank declined to specify how much money Greece is purported to have requested.
The World Bank (WB) is a component of the World Bank Group, which is part of the United Nations. It provides loans to developing countries for capital programmes. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
The World Bank’s stated official goal is the reduction of poverty. According to its Articles of Agreement, all its decisions must be guided by a commitment to the promotion of foreign investment and international trade and to the facilitation of capital investment.
The IMF is reported to be demanding the legislation of 3.6€ billion worth of austerity measures. It is reported that pension cuts were demanded by IMF envoy Delia Velculescu, further reducing the national pension. The 3.6€ billion are expected to be raised by pension cuts (1.8€ bln) and by reducing the tax-free threshold (1.8€ bln). All these measures need to be pre-legislated. Parliament will vote on them now and they will come into effect from January 1st, 2019.
Greek Prime Minister Alexis Tsipras’ Government last Monday agreed to legislate on the structural reforms demanded by the IMF that will lower the threshold of tax-free income and amend the pension system by 2019. The Government says the deal won’t increase austerity since the new legislation will include stimulus measures in addition to the “reforms”.
"Some may lose, of course, but some will gain. That is to say, some who we are not currently helping, who need our help, we will help. Some may lose, we will do everything we can in the negotiations to limit what they lose and get something in compensation" Minister Tsakalotos said, emphasising that the package had not been finalized. "We never said that the tax system over the last 40 years was the best possible. We never said that through the system of patronage we had reached a social system, nor that its restructuring was the best outcome and so we are always open to discussion, now that there will be zero financial impact [on citizens. Ed.], but we will have restructuring."
Regarding the Public Holding Company (EDIS), creditors pointed to a delay in the appointment of the Board and the evaluation of the assets of the 11 public utility companies that EDIS will be managing.
Furthermore, the Finance Minister was criticized for the delay in the establishment and operation of the Privatisation Fund, since there is still no board appointed or rules and procedures set, while there is still no discussion of the properties and relations of the four companies (HRADF, FSF, ETAS, EDIS) the super fund will be managing.
Also, the Lenders are seeking the immediate sale of 17% of the Public Power Corporation (DEH) and the acceleration by the end of March of the sale of another part of the power grid (ADMIE) until 24% of it is privatised.
At a press briefing on Thursday government spokesman Dimitris Tzanakopoulos stated “At this particular phase of the negotiation at a technical level, it is necessary for all sides to be cautious regarding the information they leak to the press. The negotiation should take place in the “battlefield” and not through leaks that cause confusion to the Greek citizens.” Moreover, he said that reforms of 2% of GDP are being examined. Regarding the measures to be implemented as of 2019, he said that there will be no fiscal impact. The aim of the Government is to take the country out of the Memoranda.”
On Friday it was reported that Greece has requested a loan from the World Bank.
“The Government of Greece has asked the World Bank to provide technical and financial assistance to address pressing challenges including: long-term unemployment, economic competitiveness and growth and social protection,” a spokesperson from the World Bank reported.
“In accordance with World Bank procedures, any final decision on providing loans would be subject to approval by the bank’s board of executive directors.” The World Bank declined to specify how much money Greece is purported to have requested.
The World Bank (WB) is a component of the World Bank Group, which is part of the United Nations. It provides loans to developing countries for capital programmes. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
The World Bank’s stated official goal is the reduction of poverty. According to its Articles of Agreement, all its decisions must be guided by a commitment to the promotion of foreign investment and international trade and to the facilitation of capital investment.
Commission presents White Paper on the future of Europe: Avenues for unity for the EU of 27
On Wednesday March 1st, the European Commission published a White Paper on the future of Europe that is the Commission's contribution to the Summit of Rome of 25th March 2017.
The EU Press Statement states “The White Paper looks at how Europe will change in the next decade, from the impact of new technologies on society and jobs, to doubts about globalisation, security concerns and the rise of populism. It spells out the choice we face: being swept along by those trends, or embracing them and seizing the new opportunities they bring. Europe's population and economic weight is falling as other parts of the world grow. By 2060, none of our Member States will account for even 1% of the world's population – a compelling reason for sticking together to achieve more. A positive global force, Europe's prosperity will continue to depend on its openness and strong links with its partners” and goes on to set the background:
“Sixty years ago, inspired by a dream of a peaceful, common future, the EU's founding members embarked on an ambitious journey of European integration, with the signing of the Treaties of Rome. They agreed to settle their conflicts around a table rather than in battlefields. As a result, the painful experience of Europe's troubled past has given way to a peace spanning seven decades and to a Union of 500 million citizens living in freedom and opportunity in one of the world's most prosperous economies.
The 60th anniversary of the Treaties of Rome on 25 March 2017 will be an important occasion for EU27 leaders to reflect on the state of play of our European project, to consider its achievements and strengths as well as areas for further improvement, and to show common resolve to shape a stronger future together at 27.”
Introducing the White Paper to the plenary of the European Parliament, in Brussels, Chairman Jean-Claude Juncker presented five scenarios for the way in which the EU could be developed between now and 2025, depending on the choices made.
The scenarios cover a range of possibilities and are indicative. "They are neither mutually exclusive nor are they the only ones possible."
These scenarios presented are the following:
* Scenario 1: "we continue as usual"- the EU 27 to focus its attention on the successful completion of the programme of positive reforms in the spirit of the guidelines of the Commission and of the Declaration which was signed by all 27 States in 2016 in Bratislava.
* Scenario 2: "Nothing beyond the single market"- the EU of 27 to concentrate once more step by step on the single market, as the 27 Member States are not successful in finding common ground on more and more policy areas.
* Scenario 3: "those who want more to do more"- the EU of 27 proceeds like today, but allows those Member States who wish to develop more action in specific areas, such as defence, internal security or social issues to do so. One or more "alliances of willing States" could be formed."
* Scenario 4: "Doing less more efficiently"- the European Union focuses on achieving better and faster results in selected policy areas, doing less in areas where it is considered that there is no added value. The interest and the limited resources to be focused on selected policy areas.
* Scenario 5: "Do a lot more together"- Member States decide to share more responsibilities, resources and decision-making in all policy areas. Decisions are to be adopted more rapidly at the European level and also to be implemented more quickly.
Finally the President of the European Commission in a written statement said:
"60 years ago, the founding fathers of Europe chose to unite the continent using the force of law in place of the force of arms. We can be proud of what we have accomplished since then. Even our bleakest day in 2017 will continue to be much brighter than any day our ancestors had on the battlefield. As we celebrate the 60th anniversary of the Treaties of Rome, it is time for the united Europe of 27 to shape a vision for its future. It is time for leadership, unity and a common resolve. The Commission’s White Paper presents a series of different routes which this united European Union of 27 could choose to follow. It is the beginning of the process, not the end, and I hope that we will now conduct an honest and wide-ranging dialogue. The form of the dialogue must correspond to the work. We hold the future of Europe in our hands."
President Juncker's State of the Union speech in September 2017 will take these ideas forward before first conclusions could be drawn at the December 2017 European Council. This will help to decide on a course of action to be rolled out in time for the European Parliament elections in June 2019.
Prime Minister Tsipras said “The 60th anniversary of the Rome Treaty finds Europe facing serious dangers, such as euroscepticism, which is largely in due to the fact that the EU has stopped being attractive to its citizens because of the austerity policies. On the other hand there is a democratic deficit and citizens don’t feel they are participating in political developments.
“If these concerns are not taken into account, Europe will be left watching developments and the powers of euroscepticism will take the lead.
“The anniversary must not be commemorative, but one of reflection and redefinition of the direction that will make the European project attractive to its citizens again.”
On Wednesday March 1st, the European Commission published a White Paper on the future of Europe that is the Commission's contribution to the Summit of Rome of 25th March 2017.
The EU Press Statement states “The White Paper looks at how Europe will change in the next decade, from the impact of new technologies on society and jobs, to doubts about globalisation, security concerns and the rise of populism. It spells out the choice we face: being swept along by those trends, or embracing them and seizing the new opportunities they bring. Europe's population and economic weight is falling as other parts of the world grow. By 2060, none of our Member States will account for even 1% of the world's population – a compelling reason for sticking together to achieve more. A positive global force, Europe's prosperity will continue to depend on its openness and strong links with its partners” and goes on to set the background:
“Sixty years ago, inspired by a dream of a peaceful, common future, the EU's founding members embarked on an ambitious journey of European integration, with the signing of the Treaties of Rome. They agreed to settle their conflicts around a table rather than in battlefields. As a result, the painful experience of Europe's troubled past has given way to a peace spanning seven decades and to a Union of 500 million citizens living in freedom and opportunity in one of the world's most prosperous economies.
The 60th anniversary of the Treaties of Rome on 25 March 2017 will be an important occasion for EU27 leaders to reflect on the state of play of our European project, to consider its achievements and strengths as well as areas for further improvement, and to show common resolve to shape a stronger future together at 27.”
Introducing the White Paper to the plenary of the European Parliament, in Brussels, Chairman Jean-Claude Juncker presented five scenarios for the way in which the EU could be developed between now and 2025, depending on the choices made.
The scenarios cover a range of possibilities and are indicative. "They are neither mutually exclusive nor are they the only ones possible."
These scenarios presented are the following:
* Scenario 1: "we continue as usual"- the EU 27 to focus its attention on the successful completion of the programme of positive reforms in the spirit of the guidelines of the Commission and of the Declaration which was signed by all 27 States in 2016 in Bratislava.
* Scenario 2: "Nothing beyond the single market"- the EU of 27 to concentrate once more step by step on the single market, as the 27 Member States are not successful in finding common ground on more and more policy areas.
* Scenario 3: "those who want more to do more"- the EU of 27 proceeds like today, but allows those Member States who wish to develop more action in specific areas, such as defence, internal security or social issues to do so. One or more "alliances of willing States" could be formed."
* Scenario 4: "Doing less more efficiently"- the European Union focuses on achieving better and faster results in selected policy areas, doing less in areas where it is considered that there is no added value. The interest and the limited resources to be focused on selected policy areas.
* Scenario 5: "Do a lot more together"- Member States decide to share more responsibilities, resources and decision-making in all policy areas. Decisions are to be adopted more rapidly at the European level and also to be implemented more quickly.
Finally the President of the European Commission in a written statement said:
"60 years ago, the founding fathers of Europe chose to unite the continent using the force of law in place of the force of arms. We can be proud of what we have accomplished since then. Even our bleakest day in 2017 will continue to be much brighter than any day our ancestors had on the battlefield. As we celebrate the 60th anniversary of the Treaties of Rome, it is time for the united Europe of 27 to shape a vision for its future. It is time for leadership, unity and a common resolve. The Commission’s White Paper presents a series of different routes which this united European Union of 27 could choose to follow. It is the beginning of the process, not the end, and I hope that we will now conduct an honest and wide-ranging dialogue. The form of the dialogue must correspond to the work. We hold the future of Europe in our hands."
President Juncker's State of the Union speech in September 2017 will take these ideas forward before first conclusions could be drawn at the December 2017 European Council. This will help to decide on a course of action to be rolled out in time for the European Parliament elections in June 2019.
Prime Minister Tsipras said “The 60th anniversary of the Rome Treaty finds Europe facing serious dangers, such as euroscepticism, which is largely in due to the fact that the EU has stopped being attractive to its citizens because of the austerity policies. On the other hand there is a democratic deficit and citizens don’t feel they are participating in political developments.
“If these concerns are not taken into account, Europe will be left watching developments and the powers of euroscepticism will take the lead.
“The anniversary must not be commemorative, but one of reflection and redefinition of the direction that will make the European project attractive to its citizens again.”
The Agreement -
“an honourable compromise”
25.02.2017
At Monday’s Eurogroup meeting in Brussels, there was no “political agreement” to conclude the Second Assessment. Instead, the agreement focussed on the pre-conditions for the Institutions’ Technical Team to return to Athens early next week. By agreeing on a set of additional reforms to improve the country’s economic performance, without increasing taxes or requiring further budget cuts, the lenders and Greece agreed on a way forward in the negotiation.
President of the Eurogroup, Jeroen Dijsselbloem announced the return of the Technical Team to Athens in the coming days with a view to reaching an agreement on a technical level (Staff Level Agreement) for a new package of reforms covering the tax, pensions and the labour market. He confirmed that the agreement was reached on the basis of shifting the emphasis from the economic policies of austerity in the direction of deep structural reforms.
In April 2019, Eurostat will announce its report on the Greek economy for 2018. If the primary surplus posted is below the 3.5% target the “fiscal cutter” will kick in, bringing in the new measures.
He explained that Greece has made considerable progress in consolidating public finances and no longer has need of “substantive policies of austerity but now required structural reforms that would ensure their sustainability and support the recovery and satisfy the demands of the IMF.”
Economic Affairs Commissioner Pierre Moscovici reiterated after the Eurogroup meeting that Greece “significantly over performed” its fiscal targets.
If the fiscal surplus of at least 2% of GDP registered in 2016 is confirmed by Eurostat in April, the country will have not only reached its target for 2016 (0.5% of GDP) but also for 2017 (1.75% of GDP), the Commissioner explained.
“If there is a will there is a way, and today we have seen clearly that the will is there,” Commissioner Moscovici said.
Government spokesman Dimitris Tzanakopoulos on Tuesday said no specifics could be provided as the reforms were subject to negotiation and agreement with the country's creditors. "Yesterday’s Eurogroup agreement is the most crucial step for the completion of the Second Assessment." He underlined the basic message that of "restoring stability, the final end to scenarios of emergencies and doom and the consolidation of confidence in the Greek economy". He accused New Democracy of trying to keep up "a doomsday frenzy". He pointed out that Monday’s agreement was reached because all sides had made steps to reconcile differences concerning the financial projections for after the end of the programme period. He stressed that now we are entering an equally critical phase of negotiation, for medium-term actions for debt alleviation and for the determination of primary surpluses. In this context he noted that following Monday's advances, with concessions from all sides, "now is the time, for Germany also to embark on the road of realism". "We expect the German Finance Ministry also to take a step back from the absurd requirement for a decade of primary surpluses amounting to 3.5% of GDP and to adopt a constructive attitude in order to make possible an agreement on medium-term debt relief."
He pointed out that this is the way for the definitive consolidation of stability and confidence in the Greek economy and would open the way for the country's accession to the ECB's quantitative easing programme.
"The Government's goal remains an overall agreement that will give the necessary impetus to the economy so that Greece can get out of the cycle of fiscal adjustment programmes, to return gradually to the money markets and to acquire the ability at the end of the programme in August 2018 to refinance its debt without borrowing from the official sector."
If agreement can be reached at the technical level and medium-term measures for the debt identified, the European Central Bank will be able to include Greece in its quantitative easing programme (QE). This would mean, said Panagiotis Liargovas, the head of the Budget Office of Parliament, the cheapest and most convenient way to finance the Greek economy, phasing out capital controls, the possibility of entry into the Bond Markets and the strengthening of confidence in Greece and its economic policy.
Finance Minister Euclid Tsakalotos, said in a statement on Thursday: "Now it requires work to finalise the Second Assessment, with the best possible conditions, in order for the Greek economy to definitively turn the page. The agreement is better than expected a month ago." He told Parliament that he would brief the House’s economic affairs committee on the progress of negotiations next Tuesday.
In April 2019, Eurostat will announce its report on the Greek economy for 2018. If the primary surplus posted is below the 3.5% target the “fiscal cutter” will kick in, bringing in the new measures.
He explained that Greece has made considerable progress in consolidating public finances and no longer has need of “substantive policies of austerity but now required structural reforms that would ensure their sustainability and support the recovery and satisfy the demands of the IMF.”
Economic Affairs Commissioner Pierre Moscovici reiterated after the Eurogroup meeting that Greece “significantly over performed” its fiscal targets.
If the fiscal surplus of at least 2% of GDP registered in 2016 is confirmed by Eurostat in April, the country will have not only reached its target for 2016 (0.5% of GDP) but also for 2017 (1.75% of GDP), the Commissioner explained.
“If there is a will there is a way, and today we have seen clearly that the will is there,” Commissioner Moscovici said.
Government spokesman Dimitris Tzanakopoulos on Tuesday said no specifics could be provided as the reforms were subject to negotiation and agreement with the country's creditors. "Yesterday’s Eurogroup agreement is the most crucial step for the completion of the Second Assessment." He underlined the basic message that of "restoring stability, the final end to scenarios of emergencies and doom and the consolidation of confidence in the Greek economy". He accused New Democracy of trying to keep up "a doomsday frenzy". He pointed out that Monday’s agreement was reached because all sides had made steps to reconcile differences concerning the financial projections for after the end of the programme period. He stressed that now we are entering an equally critical phase of negotiation, for medium-term actions for debt alleviation and for the determination of primary surpluses. In this context he noted that following Monday's advances, with concessions from all sides, "now is the time, for Germany also to embark on the road of realism". "We expect the German Finance Ministry also to take a step back from the absurd requirement for a decade of primary surpluses amounting to 3.5% of GDP and to adopt a constructive attitude in order to make possible an agreement on medium-term debt relief."
He pointed out that this is the way for the definitive consolidation of stability and confidence in the Greek economy and would open the way for the country's accession to the ECB's quantitative easing programme.
"The Government's goal remains an overall agreement that will give the necessary impetus to the economy so that Greece can get out of the cycle of fiscal adjustment programmes, to return gradually to the money markets and to acquire the ability at the end of the programme in August 2018 to refinance its debt without borrowing from the official sector."
If agreement can be reached at the technical level and medium-term measures for the debt identified, the European Central Bank will be able to include Greece in its quantitative easing programme (QE). This would mean, said Panagiotis Liargovas, the head of the Budget Office of Parliament, the cheapest and most convenient way to finance the Greek economy, phasing out capital controls, the possibility of entry into the Bond Markets and the strengthening of confidence in Greece and its economic policy.
Finance Minister Euclid Tsakalotos, said in a statement on Thursday: "Now it requires work to finalise the Second Assessment, with the best possible conditions, in order for the Greek economy to definitively turn the page. The agreement is better than expected a month ago." He told Parliament that he would brief the House’s economic affairs committee on the progress of negotiations next Tuesday.
The Agreement - “an honourable compromise”
In the Greek equivalent of Prime Minister’s Question Time in Parliament on Friday PM Alexis Tsipras made a statement on the “agreement in principle” reached at the Eurogroup on Monday.
PM Tsipras explained the content of the agreement in the Eurogroup, with emphasis on how the measures and countermeasures will work.
At the Eurogroup, he stressed "basic principles were agreed" and "we agreed to leave behind the principle of permanent austerity". "What we have in our hands is this. First, the technical teams are returning to close the Assessment. Secondly, from the beginning the Government insisted that the progress of the economy makes further measures unnecessary because they would be a barrier to development."
"This stance - that we will not accept a single euro more of austerity - was respected by all. There was a shift of all the Institutions away from the direction of austerity and to change the mix of fiscal policy that should be followed by Greece ".
He congratulated the negotiating team but was adamant that not everything is rosy. "If you ask me if I agree with the proposals for the measures, I will tell you "no". But if you go into a negotiation, you must also make concessions. From 2010 onwards, the result of the negotiations was to lose continuously and today for the first time we have an honourable compromise."
"One important fact is that now there is no longer the absurd requirement for additional austerity measures to the tune of 2% of GDP, i.e. 3.6€ billion. On the contrary any reforms implemented will come into force from 1st January 2019. For every euro burden of the reforms suggested by our lenders and insisted upon by the IMF – about which we are not satisfied – there will be a euro of relief in the reforms that we are proposing."
"The finalisation of the Second Assessment is to speed up the impressive progress the economy. We are not overjoyed, but nor are we hiding our satisfaction at the fact that for the first time we are hearing from the heads of the Institutions the need to stop the policy of austerity in Greece."
In the Greek equivalent of Prime Minister’s Question Time in Parliament on Friday PM Alexis Tsipras made a statement on the “agreement in principle” reached at the Eurogroup on Monday.
PM Tsipras explained the content of the agreement in the Eurogroup, with emphasis on how the measures and countermeasures will work.
At the Eurogroup, he stressed "basic principles were agreed" and "we agreed to leave behind the principle of permanent austerity". "What we have in our hands is this. First, the technical teams are returning to close the Assessment. Secondly, from the beginning the Government insisted that the progress of the economy makes further measures unnecessary because they would be a barrier to development."
"This stance - that we will not accept a single euro more of austerity - was respected by all. There was a shift of all the Institutions away from the direction of austerity and to change the mix of fiscal policy that should be followed by Greece ".
He congratulated the negotiating team but was adamant that not everything is rosy. "If you ask me if I agree with the proposals for the measures, I will tell you "no". But if you go into a negotiation, you must also make concessions. From 2010 onwards, the result of the negotiations was to lose continuously and today for the first time we have an honourable compromise."
"One important fact is that now there is no longer the absurd requirement for additional austerity measures to the tune of 2% of GDP, i.e. 3.6€ billion. On the contrary any reforms implemented will come into force from 1st January 2019. For every euro burden of the reforms suggested by our lenders and insisted upon by the IMF – about which we are not satisfied – there will be a euro of relief in the reforms that we are proposing."
"The finalisation of the Second Assessment is to speed up the impressive progress the economy. We are not overjoyed, but nor are we hiding our satisfaction at the fact that for the first time we are hearing from the heads of the Institutions the need to stop the policy of austerity in Greece."
SYRIZA agrees approach to negotiations
18.2.2017
“The final decisions concerning the negotiations will be taken after discussion in the Central Committee respecting the collective democratic processes as defined by the Statute of our party.”
Excerpt from the SYRIZA Central Committee Policy Statement
11th -12th February 2017
The Negotiations
“Now it is commonly accepted that the debt must be reduced despite some circles in Central Europe refusing to discuss it because of their forthcoming national elections. Greece, however, is no longer alone; it has allies on the basis of the past. SYRIZA from 2012, appealing to the Greek people, asked to be given the responsibility of governance, proclaiming the need to change Europe, for Europe to continue to exist. The need to defeat the neoliberal policies that currently dominate in Europe and the changing balance of forces, shaped the negotiating tactics of SYRIZA. Today the Greek economy shows signs of recovery despite the problems that middle and low income groups continue to suffer. The recession is over and unemployment has fallen by 4 percentage points.
The political forces that ruled the country until the end of 2014 identified their political choices with the dominant neo-liberal norms, even if these were and are devastating. They continue even today to give "land and water", behaving subserviently, criminally indifferent to the destruction that they have brought to the country. Mr. Mitsotakis is calling for elections because he is in a hurry to restore the failed political system which is linked to the partisanship of the State, the scandals and the favouritism. Every day that passes, with the Left in power, this system loses ground in the State apparatus.
The rise of the left to power was not the result of chance circumstances, but rather it emerged as a historical necessity, expressed the collective expression of society for change in the government model, for a progressive response to the issue of an exit from the crisis. We must maintain the possibility of alternative response, of a left-wing exit as opposed to the anti-social right-wing policies. The unreasonable demands of the creditors and the IMF for pre-emptive legislation can not be accepted by our Government. The society cannot sustain further measures, even if they come into force three years down the road and on the understanding that the surpluses have not been achieved.
Instead, a total political project is judged to be necessary, aimed at strengthening the grassroots social strata, with the defence of the world of work in the forefront, restoring collective bargaining agreements and obviously our unequivocal stance against demands for massive layoffs. In any case the final decisions concerning the negotiations will be taken after discussion in the Central Committee respecting the collective democratic processes as defined by the Statute of our party.
The Government and the SYRIZA must repeat in every possible way and in all the EU institutions, that European solidarity is not provided on a pick-and-choose basis and they are required to implement the decision taken concerning the medium-term measures for debt relief and to declare their commitment to the smooth completion of the Greek programme without absurd claims for primary surpluses after 2018 and the legislating of preventive measures. Many in society understand the fight we are putting up and from a position of criticism are supporting us, despite the unethical attacks made on the Government from opposition parties and the mass media.”
11th -12th February 2017
The Negotiations
“Now it is commonly accepted that the debt must be reduced despite some circles in Central Europe refusing to discuss it because of their forthcoming national elections. Greece, however, is no longer alone; it has allies on the basis of the past. SYRIZA from 2012, appealing to the Greek people, asked to be given the responsibility of governance, proclaiming the need to change Europe, for Europe to continue to exist. The need to defeat the neoliberal policies that currently dominate in Europe and the changing balance of forces, shaped the negotiating tactics of SYRIZA. Today the Greek economy shows signs of recovery despite the problems that middle and low income groups continue to suffer. The recession is over and unemployment has fallen by 4 percentage points.
The political forces that ruled the country until the end of 2014 identified their political choices with the dominant neo-liberal norms, even if these were and are devastating. They continue even today to give "land and water", behaving subserviently, criminally indifferent to the destruction that they have brought to the country. Mr. Mitsotakis is calling for elections because he is in a hurry to restore the failed political system which is linked to the partisanship of the State, the scandals and the favouritism. Every day that passes, with the Left in power, this system loses ground in the State apparatus.
The rise of the left to power was not the result of chance circumstances, but rather it emerged as a historical necessity, expressed the collective expression of society for change in the government model, for a progressive response to the issue of an exit from the crisis. We must maintain the possibility of alternative response, of a left-wing exit as opposed to the anti-social right-wing policies. The unreasonable demands of the creditors and the IMF for pre-emptive legislation can not be accepted by our Government. The society cannot sustain further measures, even if they come into force three years down the road and on the understanding that the surpluses have not been achieved.
Instead, a total political project is judged to be necessary, aimed at strengthening the grassroots social strata, with the defence of the world of work in the forefront, restoring collective bargaining agreements and obviously our unequivocal stance against demands for massive layoffs. In any case the final decisions concerning the negotiations will be taken after discussion in the Central Committee respecting the collective democratic processes as defined by the Statute of our party.
The Government and the SYRIZA must repeat in every possible way and in all the EU institutions, that European solidarity is not provided on a pick-and-choose basis and they are required to implement the decision taken concerning the medium-term measures for debt relief and to declare their commitment to the smooth completion of the Greek programme without absurd claims for primary surpluses after 2018 and the legislating of preventive measures. Many in society understand the fight we are putting up and from a position of criticism are supporting us, despite the unethical attacks made on the Government from opposition parties and the mass media.”
Finance Minister Euclid Tsakalotos on Sunday said that IMF is not interested in the size of the primary surplus in 2019 but is using it to push Greece to make “reforms” on the tax-free ceiling and pensions. Last summer Greece completed two very important reforms in the pension system and with taxation” he said to reporters after his address to SYRIZA Central Committee. He also said that the IMF is using very questionable reports to strengthen its position.
He referred to IMF claims that 40% to 50% of the Greek population does not pay taxes adding that if the IMF used the same methodology in all European countries it would know that this percentage is 12%.
“The idea that Paul Tomsen keeps repeating that German pensioners are as well-off as Greeks is laughable and I have invited him to come to Greece and afterwards we will go to Germany and make the comparison.” [See below: Being Economical with the Truth Ed]
He attacked New Democracy saying the accusation that the Government is responsible for the delays in the negotiations is not a view shared by anyone, "neither by the Member States of the European Union, nor by the Institutions."
“The IMF should decide quickly what it wants to do”. “If it wants to participate in the programme it must respect the efforts of the Greek people in the last years as well as Europe’s institutional framework for labour. If it wants to apply pressure, it can put pressure on the countries that do not accept more reasonable primary surpluses for Greece”.
Referring to the course of the negotiation he was optimistic because “Everyone understands that due to the imminent elections in many European countries and to other problems such as the refugee problem the number of issues and the constraints are great.” “The time is difficult for a Grexit” he said and underlined that “all sides are trying to find a solution. With some goodwill from all sides we may reach an agreement very soon. We are negotiating very hard” he said, adding that “the negotiating group has not been given a blank cheque and the context of the negotiation always derives from collective decisions.”
He referred to IMF claims that 40% to 50% of the Greek population does not pay taxes adding that if the IMF used the same methodology in all European countries it would know that this percentage is 12%.
“The idea that Paul Tomsen keeps repeating that German pensioners are as well-off as Greeks is laughable and I have invited him to come to Greece and afterwards we will go to Germany and make the comparison.” [See below: Being Economical with the Truth Ed]
He attacked New Democracy saying the accusation that the Government is responsible for the delays in the negotiations is not a view shared by anyone, "neither by the Member States of the European Union, nor by the Institutions."
“The IMF should decide quickly what it wants to do”. “If it wants to participate in the programme it must respect the efforts of the Greek people in the last years as well as Europe’s institutional framework for labour. If it wants to apply pressure, it can put pressure on the countries that do not accept more reasonable primary surpluses for Greece”.
Referring to the course of the negotiation he was optimistic because “Everyone understands that due to the imminent elections in many European countries and to other problems such as the refugee problem the number of issues and the constraints are great.” “The time is difficult for a Grexit” he said and underlined that “all sides are trying to find a solution. With some goodwill from all sides we may reach an agreement very soon. We are negotiating very hard” he said, adding that “the negotiating group has not been given a blank cheque and the context of the negotiation always derives from collective decisions.”
Speaking to the SYRIZA Central Committee on Saturday, Prime Minister Alexis Tsipras said he believed the Second Assessment will be successfully completed but that the Government would not succumb to “illogical” demands. He said “We will not make concessions on matters of principle”.
P.M. Tsipras accused the IMF of being “cowardly,” and of coming up with “new demands for Greece; absurd, imaginary, unreal, it doesn’t matter, as long as it is made to look like Greece is to blame for the already agreed decision of the Fund not to finance the third Greek bailout.” He further said that the Fund has lost its credibility by “constantly making erroneous predictions and is unable to support a programme without a generous debt cut.”
Referring to the IMF and German Finance Minister Wolfgang Schaeuble, he said: “I don’t know if the Second Assessment will be completed with the IMF having a central funding role, or a different role, but the Second Assessment will be completed because Europe cannot afford to play games. Those who play games and speak of a euro zone of two speeds, of splits and divisions, must know that they are playing with fire.”
PM Tsipras sent an indirect message to German Chancellor Angela Merkel saying, “I want to beseech the Chancellor to discourage the Finance Minister from continuing his aggression against Greece and issuing press reports that Greeks are living beyond their means.”
“Europe, on the other side, are refusing to make a decision before their critical elections, fearing the rise of the extreme Right.”
Footnote
In an article entitled "The IMF buys time for Merkel in the matter of Greece" the German newspaper Die Welt reports that a few days ago the head of the IMF, Christine Lagarde promised German Chancellor Angela Merkel during their telephone communication that the International Monetary Fund will participate in the Greek programme.
Being Economical with the Truth
The Economist (February 16th 2017), commenting on the Greek situation, stated
“Essential spending has been cut even as pensions remain generous. A newly retired Greek receives 81% of average wages, compared with 43% for a German.”
Editor comments:This is supposed to sound profligate until we consider that 81% of the monthly Greek Average Wage which at 2016 Q2 was 947€ net of taxes (1127€ gross) amounts to 767€ while 43% of the monthly German average wage which at 2016 Q3 was 2275€ net (3716€ gross) is 978€.
Source https://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage]
[We set aside issues relating to “averages” of anything and the validity of comparing different societies with different social provision for people in retirement for example Ed]
P.M. Tsipras accused the IMF of being “cowardly,” and of coming up with “new demands for Greece; absurd, imaginary, unreal, it doesn’t matter, as long as it is made to look like Greece is to blame for the already agreed decision of the Fund not to finance the third Greek bailout.” He further said that the Fund has lost its credibility by “constantly making erroneous predictions and is unable to support a programme without a generous debt cut.”
Referring to the IMF and German Finance Minister Wolfgang Schaeuble, he said: “I don’t know if the Second Assessment will be completed with the IMF having a central funding role, or a different role, but the Second Assessment will be completed because Europe cannot afford to play games. Those who play games and speak of a euro zone of two speeds, of splits and divisions, must know that they are playing with fire.”
PM Tsipras sent an indirect message to German Chancellor Angela Merkel saying, “I want to beseech the Chancellor to discourage the Finance Minister from continuing his aggression against Greece and issuing press reports that Greeks are living beyond their means.”
“Europe, on the other side, are refusing to make a decision before their critical elections, fearing the rise of the extreme Right.”
Footnote
In an article entitled "The IMF buys time for Merkel in the matter of Greece" the German newspaper Die Welt reports that a few days ago the head of the IMF, Christine Lagarde promised German Chancellor Angela Merkel during their telephone communication that the International Monetary Fund will participate in the Greek programme.
Being Economical with the Truth
The Economist (February 16th 2017), commenting on the Greek situation, stated
“Essential spending has been cut even as pensions remain generous. A newly retired Greek receives 81% of average wages, compared with 43% for a German.”
Editor comments:This is supposed to sound profligate until we consider that 81% of the monthly Greek Average Wage which at 2016 Q2 was 947€ net of taxes (1127€ gross) amounts to 767€ while 43% of the monthly German average wage which at 2016 Q3 was 2275€ net (3716€ gross) is 978€.
Source https://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage]
[We set aside issues relating to “averages” of anything and the validity of comparing different societies with different social provision for people in retirement for example Ed]
Greece, the EU and the IMF deadlocked
11.2.2017
Prime Minister Alexis Tsipras is expected to set out his vision for a potential compromise with Greece’s international creditors during a meeting of SYRIZA’s Central Committee this weekend.
On Wednesday German Finance Minister Wolfgang Schaeuble revived the Grexit issue by saying that unless Greece implements further reforms it cannot stay in the Eurozone.
“The pressure on Greece to undertake reforms must be maintained so that it becomes competitive, otherwise they can’t remain in the currency area,” Minister Schaeuble said, referring to fiscal measures needed such as further pension and wage cuts and the widening of the tax base.
He reiterated his position that Greece’s problem is not the amount of the sovereign debt but the lack of competitiveness in Greek economy and the need for structural reforms. So a debt cut will not solve the country’s problems. He maintained that a debt haircut is not allowed within the euro zone.
“We can’t undertake a debt haircut for a member of the European single currency, it is ruled out by the Lisbon Treaty. For that, Greece would have to exit the currency area.”
George Katrougalos, Greece’s Europe Minister, voiced confidence that a deal was within reach: “I am optimistic that we can have such an agreement before the Eurogroup of 20 February.”
He told journalists in Brussels that Europe was not the problem. “If we had just to deal with the Europeans we would have already completed this review in December. All the delay is due to the ambivalence of the IMF to participate or not to participate.”
Katrougalos brushed aside the comments from Minister Schäuble, who has previously called for Greece to quit the eurozone. “Mr Schäuble is now an isolated voice in Europe, one of the last defenders of austerity,” he said, arguing that the German Minister was not supported even in his own country.
Eurogroup President Jeroen Dijsselbloem accused the IMF of being surprisingly pessimistic over the health of the Greek economy. "It's surprising because Greece is already doing better than that report describes," Dijsselbloem, who chairs meetings of eurozone finance ministers, told Dutch television.
He said Greece's creditors, which include both the IMF and eurozone states, would be prepared to ease the terms of debt repayments further if Athens continued to cooperate on reforms. But he ruled out any relief on principal debt.
Greek government spokesman Dimitris Tzannakopoulos said the country is opposed to IMF demands for a contingency austerity programme to the sum of 4.5€ billion after the current bailout programme ends next year.
IMF Report
Also on Wednesday, IMF Managing Director Christine Lagarde claimed the IMF were "ruthless truth tellers" in its assessment that Greece needs to pursue further “reforms” to its pension and tax systems.
Mrs. Lagarde said that the Fund would not back down from its views on Greece's economic prospects despite protests from the Greek Government that they were too pessimistic.
The IMF audit of Greece's economy concluded that Greece's debt was still unsustainable even after years of grinding austerity. It recommended that Greece's pension system be refocused on supporting the poor, the tax base be broadened and tax rates lowered to help jumpstart economic growth.
A Government spokesman said the Greek Government would not yield to "illogical demands" by the IMF for "precautionary" austerity measures in a European bailout programme that no longer includes IMF money. Greece's Central Bank also disputed the IMF's prescription that an additional $10 billion in bank capital reserves was needed.
Greece needs to reduce the proportion of its budget spent on "unaffordably high" pensions which are paid for by high tax rates in order to stimulate economic growth, the International Monetary Fund said on Tuesday.
The Greek Response
Responding to the IMF Report, Finance Minister Euclid Tsakalotos refuted the IMF's predictions about the course of the Greek economy. He considers that the forecasts do not reflect the real picture of the Greek economy and the improvements in performance that Greece has made in public expenditure and in development. "Despite the evidence and the analysis which has been presented, we note that the Report is not fair in a number of areas, while many of its findings are not consistent with the recent and well documented empirical evidence." "First, the Report presents an overview of the reform effort (in Greece) that is not representative of the actual effort expended by the Greek Government during the ESM (European Stability Mechanism). The implementation of structural reforms has been significantly accelerated, particularly in-depth reforms, such as the consolidation of insurance funds into a single fund, the overall pension reform, the creation of an independent fiscal authority, many product market reforms (including the significant progress in the introduction of OECD recommendations) and a broad programme of reforms. Instead, the report says there is a slowing momentum of reforms, which is not apparent from everything that has already been done in terms of fiscal policy, the financial sector and structural reforms in many areas ".
The Finance Minister noted that a consequence of the "misrepresentation of the reform effort" is that it doesn't take into account the results of relevant structural reforms in the section “Analysis of the Viability of the Debt”. “The increased effort should, in principle, lead to the increase of the rate of growth in the future.” On the contrary, he adds, the long-term rate of economic growth is reduced by the IMF in its debt analysis to 1% from the 1.25% in May 2016 and there is the second consecutive decrease in its forecasts for growth.
"The Budgetary outcome of 2015 and Budget results of 2016 are significantly better than the original estimates." The IMF had initially predicted a primary deficit of -0.5% of GDP in 2016 that would be converted into a surplus of 1.5% of GDP in 2018 with current legislated measures. "Initial indications suggest that, instead, the budget surplus for 2016 will be in the region of 2% of GDP." "Despite considerable financial over-performance, the analysis (of the IMF) does not put forward a significant revision of projected budget surpluses for 2018, and then, maintains it at the predicted level of 1.5%, despite overwhelming evidence to the contrary."
The Eurogroup Meeting on 20th February is being suggested as the deadline for an agreement. Greece must repay nearly 7€ billion euros in July 2017. Apart from BREXIT, the Dutch go to the polls in March; French presidential elections follow in April-May and German elections are in the autumn.
“The pressure on Greece to undertake reforms must be maintained so that it becomes competitive, otherwise they can’t remain in the currency area,” Minister Schaeuble said, referring to fiscal measures needed such as further pension and wage cuts and the widening of the tax base.
He reiterated his position that Greece’s problem is not the amount of the sovereign debt but the lack of competitiveness in Greek economy and the need for structural reforms. So a debt cut will not solve the country’s problems. He maintained that a debt haircut is not allowed within the euro zone.
“We can’t undertake a debt haircut for a member of the European single currency, it is ruled out by the Lisbon Treaty. For that, Greece would have to exit the currency area.”
George Katrougalos, Greece’s Europe Minister, voiced confidence that a deal was within reach: “I am optimistic that we can have such an agreement before the Eurogroup of 20 February.”
He told journalists in Brussels that Europe was not the problem. “If we had just to deal with the Europeans we would have already completed this review in December. All the delay is due to the ambivalence of the IMF to participate or not to participate.”
Katrougalos brushed aside the comments from Minister Schäuble, who has previously called for Greece to quit the eurozone. “Mr Schäuble is now an isolated voice in Europe, one of the last defenders of austerity,” he said, arguing that the German Minister was not supported even in his own country.
Eurogroup President Jeroen Dijsselbloem accused the IMF of being surprisingly pessimistic over the health of the Greek economy. "It's surprising because Greece is already doing better than that report describes," Dijsselbloem, who chairs meetings of eurozone finance ministers, told Dutch television.
He said Greece's creditors, which include both the IMF and eurozone states, would be prepared to ease the terms of debt repayments further if Athens continued to cooperate on reforms. But he ruled out any relief on principal debt.
Greek government spokesman Dimitris Tzannakopoulos said the country is opposed to IMF demands for a contingency austerity programme to the sum of 4.5€ billion after the current bailout programme ends next year.
IMF Report
Also on Wednesday, IMF Managing Director Christine Lagarde claimed the IMF were "ruthless truth tellers" in its assessment that Greece needs to pursue further “reforms” to its pension and tax systems.
Mrs. Lagarde said that the Fund would not back down from its views on Greece's economic prospects despite protests from the Greek Government that they were too pessimistic.
The IMF audit of Greece's economy concluded that Greece's debt was still unsustainable even after years of grinding austerity. It recommended that Greece's pension system be refocused on supporting the poor, the tax base be broadened and tax rates lowered to help jumpstart economic growth.
A Government spokesman said the Greek Government would not yield to "illogical demands" by the IMF for "precautionary" austerity measures in a European bailout programme that no longer includes IMF money. Greece's Central Bank also disputed the IMF's prescription that an additional $10 billion in bank capital reserves was needed.
Greece needs to reduce the proportion of its budget spent on "unaffordably high" pensions which are paid for by high tax rates in order to stimulate economic growth, the International Monetary Fund said on Tuesday.
The Greek Response
Responding to the IMF Report, Finance Minister Euclid Tsakalotos refuted the IMF's predictions about the course of the Greek economy. He considers that the forecasts do not reflect the real picture of the Greek economy and the improvements in performance that Greece has made in public expenditure and in development. "Despite the evidence and the analysis which has been presented, we note that the Report is not fair in a number of areas, while many of its findings are not consistent with the recent and well documented empirical evidence." "First, the Report presents an overview of the reform effort (in Greece) that is not representative of the actual effort expended by the Greek Government during the ESM (European Stability Mechanism). The implementation of structural reforms has been significantly accelerated, particularly in-depth reforms, such as the consolidation of insurance funds into a single fund, the overall pension reform, the creation of an independent fiscal authority, many product market reforms (including the significant progress in the introduction of OECD recommendations) and a broad programme of reforms. Instead, the report says there is a slowing momentum of reforms, which is not apparent from everything that has already been done in terms of fiscal policy, the financial sector and structural reforms in many areas ".
The Finance Minister noted that a consequence of the "misrepresentation of the reform effort" is that it doesn't take into account the results of relevant structural reforms in the section “Analysis of the Viability of the Debt”. “The increased effort should, in principle, lead to the increase of the rate of growth in the future.” On the contrary, he adds, the long-term rate of economic growth is reduced by the IMF in its debt analysis to 1% from the 1.25% in May 2016 and there is the second consecutive decrease in its forecasts for growth.
"The Budgetary outcome of 2015 and Budget results of 2016 are significantly better than the original estimates." The IMF had initially predicted a primary deficit of -0.5% of GDP in 2016 that would be converted into a surplus of 1.5% of GDP in 2018 with current legislated measures. "Initial indications suggest that, instead, the budget surplus for 2016 will be in the region of 2% of GDP." "Despite considerable financial over-performance, the analysis (of the IMF) does not put forward a significant revision of projected budget surpluses for 2018, and then, maintains it at the predicted level of 1.5%, despite overwhelming evidence to the contrary."
The Eurogroup Meeting on 20th February is being suggested as the deadline for an agreement. Greece must repay nearly 7€ billion euros in July 2017. Apart from BREXIT, the Dutch go to the polls in March; French presidential elections follow in April-May and German elections are in the autumn.
Two Years of a SYRIZA-led Government
02.02.2017
Two years after the elections that led to the first Left Government in Greece, SYRIZA has published a detailed account of the measures and decisions it has taken aimed at leading the country in a different direction, charting "the road to the country’s definitive exit from Trusteeship and the Memoranda in 2018".
“The Coalition Government of Samaras and Venizelos will go down in history as a social disaster and a period of political adventurism. Unemployment, during its days in power, touched 28%, in total, while for young people it leapt to 60%! The “flexible forms of employment” reached a 60% share of total employment. Cuts in health and education were continuous; pensions and wages collapsed. All this was the result of political choices, amazing adventurism, as well as the incompetence of the previous Government. We must not forget that Samaras and Venizelos rushed, after the panic that dominated the disintegrated political system as a result of the sharp increase in SYRIZA’s impact on the two elections of 2012, to set landmines along the country's path for the following years.
The New Democracy-PASOK Government agreed, at the end of 2012, to a Medium-Term Programme running until 2018 that anticipated hard-to-imagine surpluses, which only with blood could be made feasible. At the same time, seeking to earn political capital, they proceeded to the destructive solution of PSI [Private Sector Involvement], to make the plundering of the reserves of the insurance funds and holders of bank bonds look like the writing-off of the debt.
[Public debt prior to the PSI was 355€ billion in 2011. As a result of the “haircut” of 100€ billion in 2012 the debt only went down to €304 billion in that year before rising to €322 billion in 2013 because the Banks had to be recapitalised with 50€ billion - funds that the Government borrowed from the ESM - to compensate them for their PSI losses of 38€ billion. The PSI reduced debt in 2012 by 13.4% only to boost it again in 2013 by 19.3%! Ed.]
It was a move tantamount to setting a bomb under the foundations of the pension system for which even today all Greeks - pensioners and the insured – are still paying. On the destruction of the society they erected the extravagant notion of the “success story”, which, even now, has been enshrined as a phrase that evokes one of the most destructive and dangerous Governments that there has ever been in this country.
Their dangerous political opportunism intensified, even more, when they saw that their collapse was imminent. In view of the European elections and the Local Government elections in 2014, but also in view of the political developments that the election of the President of the Republic would inevitably bring, at the end of the year, they took the political decision to stop implementing the programme, leaving the Fifth Assessment in abeyance. Their goal was to present SYRIZA with a fait accompli: an economy that was derailed, fiscally and, of course, with an empty treasury. They even refused the proposal for a six-month extension of the then programme, betting on the much lauded "left hiccup".
The New Democracy-PASOK Government agreed, at the end of 2012, to a Medium-Term Programme running until 2018 that anticipated hard-to-imagine surpluses, which only with blood could be made feasible. At the same time, seeking to earn political capital, they proceeded to the destructive solution of PSI [Private Sector Involvement], to make the plundering of the reserves of the insurance funds and holders of bank bonds look like the writing-off of the debt.
[Public debt prior to the PSI was 355€ billion in 2011. As a result of the “haircut” of 100€ billion in 2012 the debt only went down to €304 billion in that year before rising to €322 billion in 2013 because the Banks had to be recapitalised with 50€ billion - funds that the Government borrowed from the ESM - to compensate them for their PSI losses of 38€ billion. The PSI reduced debt in 2012 by 13.4% only to boost it again in 2013 by 19.3%! Ed.]
It was a move tantamount to setting a bomb under the foundations of the pension system for which even today all Greeks - pensioners and the insured – are still paying. On the destruction of the society they erected the extravagant notion of the “success story”, which, even now, has been enshrined as a phrase that evokes one of the most destructive and dangerous Governments that there has ever been in this country.
Their dangerous political opportunism intensified, even more, when they saw that their collapse was imminent. In view of the European elections and the Local Government elections in 2014, but also in view of the political developments that the election of the President of the Republic would inevitably bring, at the end of the year, they took the political decision to stop implementing the programme, leaving the Fifth Assessment in abeyance. Their goal was to present SYRIZA with a fait accompli: an economy that was derailed, fiscally and, of course, with an empty treasury. They even refused the proposal for a six-month extension of the then programme, betting on the much lauded "left hiccup".
In these unprecedented circumstances of economic suffocation and political pressure, our Government was elected. From the first day we gave battle on two fronts. Inside the country, against the chaotic situation handed to us by New Democracy - PASOK, and abroad, against those who insisted on aggressive austerity. For the first time, however, since the beginning of the crisis, Greece had at last got a Government which began to negotiate seriously. It clashed at the negotiating table, putting on the agenda the rights of Greek society, and also the great potential of the economy, which for years had been languishing. The Opposition, over and above its dogmatic adherence to austerity, authoritarianism and the disintegration of the social fabric, wielded as a key argument the commitments of Samaras-Venizelos, which were, unfortunately, the country’s commitments.
After a fierce battle, taking to the limit the conflict with the followers of blind and vengeful austerity, our Government managed to reach an agreement. An agreement that doesn't reflect the political objectives of the present Government or of SYRIZA but which, at that moment, prevented catastrophe, while it gave a vision and opened up the path to the country’s definitive exit from the Trusteeship and the Memoranda in 2018.
A central point of the negotiations was the reduction of Primary Surpluses, which would ensure the necessary fiscal space for the Greek economy. Samaras-Venizelos’ previous agreement stipulated as Primary Surplus targets 3% for 2015, 4.5% for 2016, 4.5% for 2017 and 4.2% for 2018. Additionally, the notorious “success story” had left behind it yet another budget gap amounting to about 2€ billion. To cover that, new measures were needed, as the New Democracy-PASOK Government had not met the Primary Surplus target of 1.5% for 2014.
Instead, the agreement of July 2015 defines the targets -0.25% in 2015, 0.5% for 2016, 1.75% for 2017 and 3.5% for 2018. This means that 20€ billion will stay in the real economy, in the society, over this four-year period, rather than go to fuel the irrational measures that would be required to meet the objectives of the previous agreement of New Democracy-PASOK.
This was the basis on which we managed to tear down the commitments of the previous Government, and also to obtain the necessary fiscal space to implement necessary social interventions.
– We stopped the shrinking of all pensions, which the application of the clause of the zero deficit would have brought about, as well as the total collapse of the social security system.
– The 13th pension was granted, at Christmas in 2016, an amount totalling 630€ million, for 1.577.421 pensioners with incomes below 850€.
– We stopped the planned cuts to health and education, described in the budget for 2014.
– We stopped the definitive abolition of EKAS, which Samaras and Venizelos had agreed to begin implementing from the second quarter of 2015.
– We stopped the lifting of the protection of primary residences from being auctioned off, which after 1/1/2015 would have led to social chaos.
– We stopped the doubling of the tax on electricity and water, which was the Samaras-Venizelos Government’s commitment.
– We stopped the planned sell-off of public assets to finance the debt. We managed to find a solution that combines the use of public property and the securing of resources for the State coffers and for the debt as well.
At the same time, a significant breathing space has been given to citizens through a series of interventions in favour of the social fabric:
– We legislated for the arrangement of 100 instalments for debts to the State.
– We put an end once and for all to the continuous court sittings and to detention for millions of people owing money to the state. The level for prosecution that was once 5,000€, was first fixed at 50,000€ and now with a new decision lies at 100,000€, thus protecting the vast majority of debtors from the risk of imprisonment.
– The first phase of the programme to address the humanitarian crisis has been implemented and is now being extended.
After a fierce battle, taking to the limit the conflict with the followers of blind and vengeful austerity, our Government managed to reach an agreement. An agreement that doesn't reflect the political objectives of the present Government or of SYRIZA but which, at that moment, prevented catastrophe, while it gave a vision and opened up the path to the country’s definitive exit from the Trusteeship and the Memoranda in 2018.
A central point of the negotiations was the reduction of Primary Surpluses, which would ensure the necessary fiscal space for the Greek economy. Samaras-Venizelos’ previous agreement stipulated as Primary Surplus targets 3% for 2015, 4.5% for 2016, 4.5% for 2017 and 4.2% for 2018. Additionally, the notorious “success story” had left behind it yet another budget gap amounting to about 2€ billion. To cover that, new measures were needed, as the New Democracy-PASOK Government had not met the Primary Surplus target of 1.5% for 2014.
Instead, the agreement of July 2015 defines the targets -0.25% in 2015, 0.5% for 2016, 1.75% for 2017 and 3.5% for 2018. This means that 20€ billion will stay in the real economy, in the society, over this four-year period, rather than go to fuel the irrational measures that would be required to meet the objectives of the previous agreement of New Democracy-PASOK.
This was the basis on which we managed to tear down the commitments of the previous Government, and also to obtain the necessary fiscal space to implement necessary social interventions.
– We stopped the shrinking of all pensions, which the application of the clause of the zero deficit would have brought about, as well as the total collapse of the social security system.
– The 13th pension was granted, at Christmas in 2016, an amount totalling 630€ million, for 1.577.421 pensioners with incomes below 850€.
– We stopped the planned cuts to health and education, described in the budget for 2014.
– We stopped the definitive abolition of EKAS, which Samaras and Venizelos had agreed to begin implementing from the second quarter of 2015.
– We stopped the lifting of the protection of primary residences from being auctioned off, which after 1/1/2015 would have led to social chaos.
– We stopped the doubling of the tax on electricity and water, which was the Samaras-Venizelos Government’s commitment.
– We stopped the planned sell-off of public assets to finance the debt. We managed to find a solution that combines the use of public property and the securing of resources for the State coffers and for the debt as well.
At the same time, a significant breathing space has been given to citizens through a series of interventions in favour of the social fabric:
– We legislated for the arrangement of 100 instalments for debts to the State.
– We put an end once and for all to the continuous court sittings and to detention for millions of people owing money to the state. The level for prosecution that was once 5,000€, was first fixed at 50,000€ and now with a new decision lies at 100,000€, thus protecting the vast majority of debtors from the risk of imprisonment.
– The first phase of the programme to address the humanitarian crisis has been implemented and is now being extended.
These, among other things, were reference points of the battle that we waged in the first period of our governance - a battle waged in conditions of an adverse balance of forces within the European Union which is dominated by dogmatic neoliberalism. That Europe, however, is not staying the same. The core of these policies, which led Greece onto the rocks in the five year period 2010-14, are now in dispute in the light of events. Greece was and continues to constitute an organic piece of that side which is proposing the end of austerity and the shift to development policies with respect to social and labour rights. Now the voices calling for a change of course are multiplying. Voices are not drawn just from the Left, but are also heard from broader political forces, as well as leaders of countries that have experienced painfully the dead-end policies of austerity.
For this reason, just like our decision to take the conflict with blind austerity to the limit so with our commitment to European cooperation and inclusion, we are convinced that it is paying off. The case for the change of course of Europe is enduring, protracted and remains open.
This decision, however, is directly connected with the wishes and aspirations of the Greek people. Exactly on that basis, we chose after July-August 2015 to have recourse to our only master, the citizens of this country. We set out what we had done as well as the plan to get the country out of the maelstrom of the crisis. The people entrusted us again, as the only political force that has the ability to accomplish this Herculean task. The society reaffirmed the bankruptcy of the political system of the vested interests which, despite all its impertinence, is solely responsible for the collapse of the country in previous years.
So, having, a fresh mandate from the Greek people, we have implemented a programme which on the one hand respects the budgetary commitments (and the limitations arising from them), but on the other has as pivotal the rebuilding of the Welfare State, the protection of the lower strata and, of course, the planning of the growth of production in the country.
As regards the first, the financial commitments, we have managed, given the more lenient fiscal adjustment which is described in the programme, to get the Greek economy back on stable tracks.
The 2015 Primary Surplus goal was exceeded. 0.7% compared to the -0.25% that was the goal. And in 2016, the intended Primary Surplus goal was exceeded for the second consecutive year. According to the provisional figures on the implementation of the State budget, it shaped up at 4,437€ billion against a target of 1.983€ billion.
As regards the second, the pivotal issues concerning social policy, great efforts were made, particularly in health and education, to reverse the situation the Samaras-Venizelos Government left behind.
For this reason, just like our decision to take the conflict with blind austerity to the limit so with our commitment to European cooperation and inclusion, we are convinced that it is paying off. The case for the change of course of Europe is enduring, protracted and remains open.
This decision, however, is directly connected with the wishes and aspirations of the Greek people. Exactly on that basis, we chose after July-August 2015 to have recourse to our only master, the citizens of this country. We set out what we had done as well as the plan to get the country out of the maelstrom of the crisis. The people entrusted us again, as the only political force that has the ability to accomplish this Herculean task. The society reaffirmed the bankruptcy of the political system of the vested interests which, despite all its impertinence, is solely responsible for the collapse of the country in previous years.
So, having, a fresh mandate from the Greek people, we have implemented a programme which on the one hand respects the budgetary commitments (and the limitations arising from them), but on the other has as pivotal the rebuilding of the Welfare State, the protection of the lower strata and, of course, the planning of the growth of production in the country.
As regards the first, the financial commitments, we have managed, given the more lenient fiscal adjustment which is described in the programme, to get the Greek economy back on stable tracks.
The 2015 Primary Surplus goal was exceeded. 0.7% compared to the -0.25% that was the goal. And in 2016, the intended Primary Surplus goal was exceeded for the second consecutive year. According to the provisional figures on the implementation of the State budget, it shaped up at 4,437€ billion against a target of 1.983€ billion.
As regards the second, the pivotal issues concerning social policy, great efforts were made, particularly in health and education, to reverse the situation the Samaras-Venizelos Government left behind.
In Health
– The unacceptable of 5€ "ticket" in hospitals was removed.
– Access to health facilities for 2.5 million uninsured citizens was secured.
– The most important intervention, however, was and continues to be made in the area of staffing. In contrast to the disastrous five year period 2010-2014 and the 8,000 sackings, since October 2015 3,551 workers have entered the Health Service. At the same time, procedures for increasing staffing in the coming months by an extra 3,380 workers (doctors, nurses, other auxiliary staff, etc.) have already been initiated. In addition to these, there are still guaranteed appropriations in the budget to fund the staffing of an additional 8,200 employees in the health sector.
– Also 140€ million has been secured from ESPA for staffing 270 primary health care centres in 65 cities in the country.
– Through the July 2015 negotiations and agreement, the Government managed to lift restrictions on health spending, restrictions that had been agreed for the Medium-Term by the New Democracy- PASOK Coalition. Specifically, an increase in the spending limit was secured, cumulatively, for the period 2015-2018, to the tune of 1€ billion while the 150€ million to support primary health care was retained.
In Education
For the first time in many years, all primary and secondary schools opened on time with the necessary staff and their respective learning materials.
– For the first time in the years of the crisis, the budget for education rose to 2.85% of GDP. That was how the unacceptable commitment of New Democracy-PASOK, who on the basis of the previous agreement would have reduced the education budget by nearly 1€ billion, reducing it to 1.9% of GDP in 2018 was overturned.
– In Secondary Education, this year 23,000 assistant teachers were hired (23% more than last year), while in the sensitive area of Special Education there were more assistant teachers than ever before (50% more compared to last year).
– After 6 years, appointments were made at Universities and TEIs (500 faculty members in 2016, and there will be more in 2017).
– We moved to institutionalize the new all-day kindergarten and elementary school.
– We changed the anti-educational testing centre system in the High School and we are working on changing the means of access to higher education.
Development
The development of the Greek economy is a fact, it is not a prediction. The data itself throws into doubt the ugly picture that New Democracy is trying to cultivate in its petty politicking. The figures are revealing:
– 1.8% increase in the real GDP in the third quarter of 2016.
– 12.6% increase in the volume of gross fixed capital formation (private investment).
– 10.2% increase in exports of goods and services, generating a surplus in the Current Account for the first time since 1948.
– 5.1% increase in private consumption on an annual basis in real economic terms over the same period.
– 228% increase in direct foreign investment between January-October: from 703€ million in 2015 to 2.303€ billion in 2016.
– Employment growth to the tune of 232,000 people from 1st quarter of 2015 to the 3rd quarter of 2016, while the unemployment rate decreased correspondingly by 4 percentage points from 26.6% to 22.6%.
– A 2.3% rise on an annual basis in the General Industrial Production Index in the 11 month of 2016 as against 0.5% for the same period in 2015.
– A rise to 94.6 points on the economic climate index of the Foundation of Economic & Industrial Research from 92.4 points in November
The privatization programme is expected to bring additional investment of approximately 1.6€ billion in 2017, while in 2016 we had a record of arrivals in tourism. Also, investment interest in Greek hotels reached a peak with 140 investments.
With the new financial instruments and through the EU, the European Investment Bank, ESPA, the European Investment Fund, there are a large number of enterprises that want to invest in sectors such as tourism, manufacturing, products supporting agricultural production, start-ups.
– The unacceptable of 5€ "ticket" in hospitals was removed.
– Access to health facilities for 2.5 million uninsured citizens was secured.
– The most important intervention, however, was and continues to be made in the area of staffing. In contrast to the disastrous five year period 2010-2014 and the 8,000 sackings, since October 2015 3,551 workers have entered the Health Service. At the same time, procedures for increasing staffing in the coming months by an extra 3,380 workers (doctors, nurses, other auxiliary staff, etc.) have already been initiated. In addition to these, there are still guaranteed appropriations in the budget to fund the staffing of an additional 8,200 employees in the health sector.
– Also 140€ million has been secured from ESPA for staffing 270 primary health care centres in 65 cities in the country.
– Through the July 2015 negotiations and agreement, the Government managed to lift restrictions on health spending, restrictions that had been agreed for the Medium-Term by the New Democracy- PASOK Coalition. Specifically, an increase in the spending limit was secured, cumulatively, for the period 2015-2018, to the tune of 1€ billion while the 150€ million to support primary health care was retained.
In Education
For the first time in many years, all primary and secondary schools opened on time with the necessary staff and their respective learning materials.
– For the first time in the years of the crisis, the budget for education rose to 2.85% of GDP. That was how the unacceptable commitment of New Democracy-PASOK, who on the basis of the previous agreement would have reduced the education budget by nearly 1€ billion, reducing it to 1.9% of GDP in 2018 was overturned.
– In Secondary Education, this year 23,000 assistant teachers were hired (23% more than last year), while in the sensitive area of Special Education there were more assistant teachers than ever before (50% more compared to last year).
– After 6 years, appointments were made at Universities and TEIs (500 faculty members in 2016, and there will be more in 2017).
– We moved to institutionalize the new all-day kindergarten and elementary school.
– We changed the anti-educational testing centre system in the High School and we are working on changing the means of access to higher education.
Development
The development of the Greek economy is a fact, it is not a prediction. The data itself throws into doubt the ugly picture that New Democracy is trying to cultivate in its petty politicking. The figures are revealing:
– 1.8% increase in the real GDP in the third quarter of 2016.
– 12.6% increase in the volume of gross fixed capital formation (private investment).
– 10.2% increase in exports of goods and services, generating a surplus in the Current Account for the first time since 1948.
– 5.1% increase in private consumption on an annual basis in real economic terms over the same period.
– 228% increase in direct foreign investment between January-October: from 703€ million in 2015 to 2.303€ billion in 2016.
– Employment growth to the tune of 232,000 people from 1st quarter of 2015 to the 3rd quarter of 2016, while the unemployment rate decreased correspondingly by 4 percentage points from 26.6% to 22.6%.
– A 2.3% rise on an annual basis in the General Industrial Production Index in the 11 month of 2016 as against 0.5% for the same period in 2015.
– A rise to 94.6 points on the economic climate index of the Foundation of Economic & Industrial Research from 92.4 points in November
The privatization programme is expected to bring additional investment of approximately 1.6€ billion in 2017, while in 2016 we had a record of arrivals in tourism. Also, investment interest in Greek hotels reached a peak with 140 investments.
With the new financial instruments and through the EU, the European Investment Bank, ESPA, the European Investment Fund, there are a large number of enterprises that want to invest in sectors such as tourism, manufacturing, products supporting agricultural production, start-ups.
Simple Proportional Representation and interventions in the operation of the State
Simple Proportional Representation became the law of the State. It is a historic moment since it implemented the fixed and long-standing demand, not only of the Left, but also of wider progressive and democratic forces over decades in this country. The electoral system, which is based on the logic of parity of each vote, justifies the decades of struggles for real equality and democracy.
For the first time a single framework of reforms has been designed and implemented, with a view to creating a modern and efficient public administration. We have proceeded with the democratization and reconstruction of the public administration, put an end to the party patronage over jobs, while at the same time effectively combating bureaucracy with the introduction of Electronic Document Handling for the fastest service to the citizen and a reduction of costs in the order of 400€ million a year.
Everything into the Light
The Government made a pre-election commitment to root out the triangle of vested interests that bankrupted the country. Despite the rabid reactions, the Government is not backing off because it did not participate in the jamboree of armaments, kickbacks and the sea of debt, and it had no connections with Siemens.
– We proceeded to the establishment of a Committee of Inquiry about the loans to the mass media and the political parties. The conclusions its work confirm, by the admissions and confessions of the protagonists themselves, the existence and gigantic dimensions of the triangle of vested interests with the grave political responsibilities of New Democracy and PASOK for loans of 1.3€ billion to the mass media and 420€ million alone to the two political parties of the former government coalition. However, the battle against the vested interests does not stop here, as the Government initiative paved the way to Justice, which is indeed the outcome we are getting, for a full investigation into any criminal responsibilities of loan issuers, bankers, politicians and also possibly individuals whose activities fall within ambit of the law concerning the responsibility of Ministers.
– We opened the way for the investigation of the scandal of the Agricultural Bank, one of the biggest scandals of the period of the Restoration of the Republic. The illegal lending from 2000 to 2012, the money lent and not paid back, reached 5€ billion.
– All the data on The Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ), the incubator of corruption, has been filed with the Prosecutor. According to the audits by the competent bodies it is still not possible to determine where sums of up to 10€ million have been spent when A. Loverdos was the Minister.
– The case of Novartis is a leading financial and, in all likelihood, political scandal. This is currently an open case in progress at the preliminary stage of proceedings.
– The Lists of tax evaders is now being put to the best possible use. While the tax assessments from the lists from 2013 until 2014 amounted to just 26.6€ million, under the SYRIZA Government within a half year they have touched on 900€ million.
– The new list from the authorities of Rhine-Westphalia, from the Ministry of Mr Borgians is being made use of, with 475 major depositors in the European Central Bank, and this is the list about which the Samaras Government had shown a defiant lack of interest.
Addressing the Refugee Crisis
Greece saved the honour and dignity of the whole of Europe. From the inhumane policy of persecution and the violation of the rights of migrants and refugees which had been put into practice by the Samaras-Venizelos Government and brought such condemnation to our country, from that we moved to a new policy that puts humanity and solidarity first. Despite the conditions of deep crisis that plague our country, the Greek State and society embraced hundreds of thousands of human beings. The Greek people showed its reserves of hospitality and solidarity – and this of course could not have happened if the policy of the previous Government, the policy of xenophobia and hatred, had continued.
Other Progressive Institutional Interventions
– A Law on citizenship. This was voted into law, putting an end to the holding hostage of the children of second-generation immigrants. It is a step in line with the principles of equal rights, of equality before the law and of an open society, consistent with the country’s European outlook. It was a step that the Samaras Government stubbornly refused to take, caught as it was on the hooks of its extreme right wing. It is a law that ensures the inclusion of thousands of children, who will constitute a unique enrichment of Greek society.
– Voted into law was the wide acceptance of cohabitation for heterosexual and same-sex couples. It was something that not only was an obligation of the country (and its non-institutionalisation had been condemned by the European Court of Justice), but also a brave step towards an open and tolerant society for all.
– A start was made to bring order to the television scene, to bring an end to the situation of the unlicenced activity of all the previous years. That is why we had their rabid reaction, while New Democracy blatantly took their side.
– The living conditions in prisons have been significantly improved, with measures to relieve overcrowding, but also to improve care for the daily life of prisoners. These are measures that have benefitted the lives of thousands of our fellow citizens (prisoners, pre-trial detainees, their families, prison staff).
– The rights of citizens are respected once more after a black period with a pile of condemnations from international courts and bodies.”
*****************
Simple Proportional Representation became the law of the State. It is a historic moment since it implemented the fixed and long-standing demand, not only of the Left, but also of wider progressive and democratic forces over decades in this country. The electoral system, which is based on the logic of parity of each vote, justifies the decades of struggles for real equality and democracy.
For the first time a single framework of reforms has been designed and implemented, with a view to creating a modern and efficient public administration. We have proceeded with the democratization and reconstruction of the public administration, put an end to the party patronage over jobs, while at the same time effectively combating bureaucracy with the introduction of Electronic Document Handling for the fastest service to the citizen and a reduction of costs in the order of 400€ million a year.
Everything into the Light
The Government made a pre-election commitment to root out the triangle of vested interests that bankrupted the country. Despite the rabid reactions, the Government is not backing off because it did not participate in the jamboree of armaments, kickbacks and the sea of debt, and it had no connections with Siemens.
– We proceeded to the establishment of a Committee of Inquiry about the loans to the mass media and the political parties. The conclusions its work confirm, by the admissions and confessions of the protagonists themselves, the existence and gigantic dimensions of the triangle of vested interests with the grave political responsibilities of New Democracy and PASOK for loans of 1.3€ billion to the mass media and 420€ million alone to the two political parties of the former government coalition. However, the battle against the vested interests does not stop here, as the Government initiative paved the way to Justice, which is indeed the outcome we are getting, for a full investigation into any criminal responsibilities of loan issuers, bankers, politicians and also possibly individuals whose activities fall within ambit of the law concerning the responsibility of Ministers.
– We opened the way for the investigation of the scandal of the Agricultural Bank, one of the biggest scandals of the period of the Restoration of the Republic. The illegal lending from 2000 to 2012, the money lent and not paid back, reached 5€ billion.
– All the data on The Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ), the incubator of corruption, has been filed with the Prosecutor. According to the audits by the competent bodies it is still not possible to determine where sums of up to 10€ million have been spent when A. Loverdos was the Minister.
– The case of Novartis is a leading financial and, in all likelihood, political scandal. This is currently an open case in progress at the preliminary stage of proceedings.
– The Lists of tax evaders is now being put to the best possible use. While the tax assessments from the lists from 2013 until 2014 amounted to just 26.6€ million, under the SYRIZA Government within a half year they have touched on 900€ million.
– The new list from the authorities of Rhine-Westphalia, from the Ministry of Mr Borgians is being made use of, with 475 major depositors in the European Central Bank, and this is the list about which the Samaras Government had shown a defiant lack of interest.
Addressing the Refugee Crisis
Greece saved the honour and dignity of the whole of Europe. From the inhumane policy of persecution and the violation of the rights of migrants and refugees which had been put into practice by the Samaras-Venizelos Government and brought such condemnation to our country, from that we moved to a new policy that puts humanity and solidarity first. Despite the conditions of deep crisis that plague our country, the Greek State and society embraced hundreds of thousands of human beings. The Greek people showed its reserves of hospitality and solidarity – and this of course could not have happened if the policy of the previous Government, the policy of xenophobia and hatred, had continued.
Other Progressive Institutional Interventions
– A Law on citizenship. This was voted into law, putting an end to the holding hostage of the children of second-generation immigrants. It is a step in line with the principles of equal rights, of equality before the law and of an open society, consistent with the country’s European outlook. It was a step that the Samaras Government stubbornly refused to take, caught as it was on the hooks of its extreme right wing. It is a law that ensures the inclusion of thousands of children, who will constitute a unique enrichment of Greek society.
– Voted into law was the wide acceptance of cohabitation for heterosexual and same-sex couples. It was something that not only was an obligation of the country (and its non-institutionalisation had been condemned by the European Court of Justice), but also a brave step towards an open and tolerant society for all.
– A start was made to bring order to the television scene, to bring an end to the situation of the unlicenced activity of all the previous years. That is why we had their rabid reaction, while New Democracy blatantly took their side.
– The living conditions in prisons have been significantly improved, with measures to relieve overcrowding, but also to improve care for the daily life of prisoners. These are measures that have benefitted the lives of thousands of our fellow citizens (prisoners, pre-trial detainees, their families, prison staff).
– The rights of citizens are respected once more after a black period with a pile of condemnations from international courts and bodies.”
*****************
Note on Loans to the Mass Media
On Saturday 28th January 2016 the Lambrakis Press Group issued a statement: “To Vima weekly and Ta Nea daily are forced to cease their publication within days due to financial reasons. The Lambrakis Press Group (DOL) “is lacking any available resources and as a result it can’t support the printing of its newspapers and, of course, can’t guarantee the unhampered operation of the other media outlets it owns.”
The group has debts of 99€ million. DOL accused the creditor banks of putting the press group under a special management regime without providing for the continuation of its publications. DOL says the creditor banks are withholding all its earnings.
Besides the two newspapers, DOL owns numerous magazines, news sites and the Vima FM radio.
On Wednesday Antonis Karakoussis, director of the Vima newspaper and Vima FM radio, said that in December 2016, DOL had been unable to meet its debt re-payment obligations. Mr. Karakoussis said this situation was the result of the economic crisis in Greece.
Lambrakis Press Group, one of the shareholders of the Mega Channel TV station that is also heavily indebted, has also faced legal turmoil over the past months. Its President, Stavros Psycharis, is currently being prosecuted for tax evasion and money laundering.
On Saturday 28th January 2016 the Lambrakis Press Group issued a statement: “To Vima weekly and Ta Nea daily are forced to cease their publication within days due to financial reasons. The Lambrakis Press Group (DOL) “is lacking any available resources and as a result it can’t support the printing of its newspapers and, of course, can’t guarantee the unhampered operation of the other media outlets it owns.”
The group has debts of 99€ million. DOL accused the creditor banks of putting the press group under a special management regime without providing for the continuation of its publications. DOL says the creditor banks are withholding all its earnings.
Besides the two newspapers, DOL owns numerous magazines, news sites and the Vima FM radio.
On Wednesday Antonis Karakoussis, director of the Vima newspaper and Vima FM radio, said that in December 2016, DOL had been unable to meet its debt re-payment obligations. Mr. Karakoussis said this situation was the result of the economic crisis in Greece.
Lambrakis Press Group, one of the shareholders of the Mega Channel TV station that is also heavily indebted, has also faced legal turmoil over the past months. Its President, Stavros Psycharis, is currently being prosecuted for tax evasion and money laundering.
Second Assessment : more delays
28.01.2017
Eurogroup Meeting last Thursday
Despite agreeing that Greece has exceeded its 2016 fiscal targets, is likely to meet its targets this year, and is on track to hit the 2018 Primary Surplus target, the Eurogroup meeting in Brussels on Thursday evening ended without reaching an agreement on the crucial bailout programme Second Assessment and with no agreed schedule for the return of creditors’ negotiators to Athens.
Despite agreeing that Greece has exceeded its 2016 fiscal targets, is likely to meet its targets this year, and is on track to hit the 2018 Primary Surplus target, the Eurogroup meeting in Brussels on Thursday evening ended without reaching an agreement on the crucial bailout programme Second Assessment and with no agreed schedule for the return of creditors’ negotiators to Athens.
The official Eurogroup statement read: “The Eurogroup urged the Greek authorities and the Institutions to swiftly resume negotiations to agree on a policy reform package shared by all stakeholders. Such an agreement is a condition for the successful conclusion of the Second Assessment […] the reforms concern Greece’s labour and product markets, its energy sector and other areas. An agreement on Greece’s medium-term fiscal strategy, i.e. in 2018 and beyond, is also expected”.
A letter by Greek Finance Minister Euclid Tsakalotos had not been enough to convince his counterparts to sign off on the Second Assessment. Creditors seem adamant that Greece’s Primary Surplus targets should be kept at 3.8% beyond 2018.
Finance Minister, Euclid Tsakalotos asked for a "re-think" on the IMF's demand for legislating on pre-emptive measures for after 2018, saying that "after we have achieved such a performance, the new measures are not necessary." "We must reach a solution very quickly," he added.
Speaking at the conclusion of the Eurogroup meeting on Thursday, he expressed his opposition to the demands of the IMF, to legislating on additional measures for the Greek economy after the end of the programme, noting that this would be binding on the future Governments of a European country - something which is not consistent with European and democratic values.
Furthermore, he added that everyone was agreed that the over performance on public finances was impressive, since the [Primary Surplus] target had been 0.5% and it was now expected figure of 2% would be reached.
The Finance Minister said that all the participants in the meeting acknowledged that Greece had made "outstanding achievements" and that the Greek economy "can enter the stage of development. In all the meetings we found common ground. Greek development is going much better than many expected." In this context, he called for "a re-think" on the IMF's demand for legislating pre-emptive measures which relate to the period after 2018, saying that "after we have had such a performance, the new measures are not necessary."
Eurogroup President, Jeroen Dijsselbloem, said he had received assurances from the International Monetary Fund that it still wants to take part in the Greek bailout programme, calling its participation “non-negotiable”. The IMF says Greece will not achieve a Primary Surplus Target of 3.5% of GDP in the medium-term - a period which has yet to be defined - unless it adopts more austerity measures and is granted more debt relief.
German Finance Minister Wolfgang Schaeuble insisted that Greece must meet its obligations while EU Commissioner Pierre Moscovici appeared reassuring, referring to a “good discussion” in the Eurogroup that allowed for future steps with “optimism”, while merely adding that a decision on when negotiators will return to Athens will come soon.
Greece’s debt will be discussed in an IMF Executive Committee meeting on February 6th. The IMF’s political disagreement with Germany continues. A debt sustainability report will be presented at that meeting which says that the Greek debt can’t be considered sustainable even if Greece adopts the fiscal path proposed by German Finance Minister Wolfgang Schaeuble, namely Primary Surpluses of 3.5% of GDP for a 10-year period. IMF rules require that a country’s debt must be considered sustainable by the fund in order for a loan to be made.
The IMF’s insistence on this position, on the one hand, and on the German Finance Ministry’s adamant position, on the other hand, is the core of the political disagreement between the IMF and Germany for the period after the conclusion of the Greek programme in 2018. The Greek government has repeatedly maintained that it is this disagreement that it is responsible for delays in concluding the Second Assessment.
Footnote:
On Friday Standard & Poor re-affirmed Greece’s ‘B-/B’ ratings in its scheduled rating review. In its view, the outlook remains “stable”. It also said it expects economic growth over 2017-2020 to be supported by tourism and a gradually improving jobs market, but warned the economy remains fragile. A press release from S&P included a statement that the outlook for investment remains difficult, given challenges to Greece’s banks. [This is a reference to the importance of Greece gaining access to the EU’s Quantitative Easing Programme. Ed]
A letter by Greek Finance Minister Euclid Tsakalotos had not been enough to convince his counterparts to sign off on the Second Assessment. Creditors seem adamant that Greece’s Primary Surplus targets should be kept at 3.8% beyond 2018.
Finance Minister, Euclid Tsakalotos asked for a "re-think" on the IMF's demand for legislating on pre-emptive measures for after 2018, saying that "after we have achieved such a performance, the new measures are not necessary." "We must reach a solution very quickly," he added.
Speaking at the conclusion of the Eurogroup meeting on Thursday, he expressed his opposition to the demands of the IMF, to legislating on additional measures for the Greek economy after the end of the programme, noting that this would be binding on the future Governments of a European country - something which is not consistent with European and democratic values.
Furthermore, he added that everyone was agreed that the over performance on public finances was impressive, since the [Primary Surplus] target had been 0.5% and it was now expected figure of 2% would be reached.
The Finance Minister said that all the participants in the meeting acknowledged that Greece had made "outstanding achievements" and that the Greek economy "can enter the stage of development. In all the meetings we found common ground. Greek development is going much better than many expected." In this context, he called for "a re-think" on the IMF's demand for legislating pre-emptive measures which relate to the period after 2018, saying that "after we have had such a performance, the new measures are not necessary."
Eurogroup President, Jeroen Dijsselbloem, said he had received assurances from the International Monetary Fund that it still wants to take part in the Greek bailout programme, calling its participation “non-negotiable”. The IMF says Greece will not achieve a Primary Surplus Target of 3.5% of GDP in the medium-term - a period which has yet to be defined - unless it adopts more austerity measures and is granted more debt relief.
German Finance Minister Wolfgang Schaeuble insisted that Greece must meet its obligations while EU Commissioner Pierre Moscovici appeared reassuring, referring to a “good discussion” in the Eurogroup that allowed for future steps with “optimism”, while merely adding that a decision on when negotiators will return to Athens will come soon.
Greece’s debt will be discussed in an IMF Executive Committee meeting on February 6th. The IMF’s political disagreement with Germany continues. A debt sustainability report will be presented at that meeting which says that the Greek debt can’t be considered sustainable even if Greece adopts the fiscal path proposed by German Finance Minister Wolfgang Schaeuble, namely Primary Surpluses of 3.5% of GDP for a 10-year period. IMF rules require that a country’s debt must be considered sustainable by the fund in order for a loan to be made.
The IMF’s insistence on this position, on the one hand, and on the German Finance Ministry’s adamant position, on the other hand, is the core of the political disagreement between the IMF and Germany for the period after the conclusion of the Greek programme in 2018. The Greek government has repeatedly maintained that it is this disagreement that it is responsible for delays in concluding the Second Assessment.
Footnote:
On Friday Standard & Poor re-affirmed Greece’s ‘B-/B’ ratings in its scheduled rating review. In its view, the outlook remains “stable”. It also said it expects economic growth over 2017-2020 to be supported by tourism and a gradually improving jobs market, but warned the economy remains fragile. A press release from S&P included a statement that the outlook for investment remains difficult, given challenges to Greece’s banks. [This is a reference to the importance of Greece gaining access to the EU’s Quantitative Easing Programme. Ed]
Prospects for a successful
Second Assessment
21.1.2017
Greek Finance Minister, Euclid Tsakalotos, expressed optimism on Wednesday that Athens is on track to conclude the review of its bailout programme, despite negotiations currently being on hold due to the differences of opinion between the International Monetary Fund and European creditors over the goals of the programme. “If we continue to exceed targets as we have been and the IMF continues to make erroneous projections, the only thing left to us is to offer them technical assistance” was Minister Tsakalotos’ comment on data showing Greece exceeding its 2.4€ million Primary Surplus target.
Provisional end-of-year figures released by the Finance Ministry showed a Primary Surplus of approximately 4.4€ billion in 2016. The Institutions’ target was set at 1.8€ billion. In December revenues reached 6.026€ billion, exceeding that target by 114€ million.
Also on Wednesday, Prime Minister Alexis Tsipras told MPs that “the exit from the program in mid-2018 is in sight” adding that he expected the Second Assessment to be concluded without the need to legislate new austerity measures beyond 2018.
The Government hopes that the swift conclusion of the Second Assessment will allow it to be considered for inclusion in the European Central Bank’s Quantitative Easing (QE) programme, which would in turn put Greece in a position to test the Bond markets in 2017.
Clarity over the IMF’s role in the Greek bailout programme is not expected before February. The IMF remains adamant that the Greek Primary Surplus goal should be reduced from 3.5% to 1.5% of GDP. Greece’s European creditors strongly object. The alternative, according to the IMF, is for the Greek Government to adopt additional “measures” worth approximately 4.5€ billion. The Government opposes such measures and has reportedly suggested an extension of the so called “fiscal cutter” – the Automatic Fiscal Adjustment Mechanism of the Budget in the event that targets are in danger of being missed.
Divisions over labour reforms, fiscal targets and debt relief are preventing Greece and its foreign lenders from concluding a compliance review - the Second Assessment - of its current bailout programme.
Also on Wednesday a German Finance Ministry spokesman said “we still expect IMF participation. For us, this participation has been promised and is necessary.” Earlier a report by German newspaper, Bild, suggested that Finance Minister Wolfgang Schaeuble was making preparations in the event of the IMF exiting the Greek programme. The IMF says it will only join in if this rescue is the country's last and it includes significant debt relief.
Minister Schaeuble believes that debt relief would take the pressure off Greece to reform its economy. He has said he favours shifting some of the European Commission's task of enforcing euro zone budget rules to the non-political body the European Stability Mechanism (ESM).
An ESM spokesman told Reuters: "We continue to work hard so that the IMF remains engaged in Greece and pursues the work there with the European institutions."
Following the continuing position of the International Monetary Fund (IMF) saying that it will only consider being involved in the bailout programme for Greece if the agreement includes debt relief, the German Finance Minister, Wolfgang Schaeuble has started preparing to go ahead with presenting a modified programme on his own, Reuters has reported.
According to Germany’s Bild newspaper, the German Government is preparing to present a modified programme which would be voted on in the Bundestag lower house of parliament if the IMF refuses to take part. The vote would take place by September, before the elections, sources have said.
Unnamed sources in the report published by Bild said that since the IMF has repeatedly stated that it will only participate in the bailout if significant debt relief is granted to Greece and Berlin refuses to consider that, Minister, Schaeuble has come to the conclusion that the European Stability Mechanism (ESM) should step in to fill the gap left by the IMF.
In a Wall Street Journal interview published on Monday, German Finance Minister Schaeuble repeated a statement he made last week that the withdrawal of the IMF could mean that the Greek bailout programme would need to be renegotiated. More specifically he had said that any new programme would have to get German Parliament approval, a procedure that would take a long time. “Should the Second Assessment not come to a successful conclusion and should the IMF withdraw, then the current programme would be obsolete. The programme was agreed to only on the expectation that the IMF would participate,” he said.
“If it became obsolete, then we would have a situation in which one would need to come up with something new. I wouldn’t recommend this to the Greek Government,” Schaeuble added. “But I would be completely relaxed. The German Bundestag would first need to discuss and agree on whether or not it approves negotiating a new programme.”
The Greek bailout programme can proceed without the IMF’s participation, stated Interior Minister Panos Skourletis on Monday adding that a political intermediary is better than an inflexible technocrat that wants to implement recipes that did not have positive results in most of the countries where they have been applied.
Asked if the Fund is Greece’s ally on the debt issue, Minister Skourletis said “I don’t know if it is really our ally. If it was our real ally it wouldn’t ask for measures that make the [debt re- Ed] payment difficult. There is a contradiction here that leads us to the conclusion that we do not know what the IMF really wants.
Finance Ministry's Report : Economic Data for 2016
The development of the Greek economy is a fact, not a prediction, stated the Minister of the Economy and Development, Dimitris Papadimitriou citing in detail the magnitudes and data on the leaps forward of the year just passed.
“The Greek economy has returned to trends of growth, everyone says so, the numbers confirm it.”
* a 1.8% increase in real GDP in the third quarter of 2016
* a 12.6% increase in the volume of gross investment in fixed capital assets (private investment)
* a 10.2% increase in exports of goods and services, generating a surplus in the current account for the first time since 1948
* a 5.1% increase in private consumption on an annual basis in real economic terms over the same period
* a 228% increase in direct foreign investment between January-October from 703€ million in 2015 to 2.303€ billion in 2016.
* employment growth to the tune of 232,000 jobs from the first quarter of 2015 to the third quarter of 2016, while the unemployment rate was reduced by a corresponding 4 percentage points from 26.6% in 22.6%.
* a rise of 2.3% on an annual basis of the general index of industrial production in the eleven months of 2016 in comparison to 0.5% in the corresponding period in 2015.
Economic development both in 2017 and 2018 will further reduce unemployment, as predicted, while he reiterated that opposition claims about companies “putting up the shutters” or companies moving operations to countries such as neighbouring Bulgaria were unfounded.
Minister Papadimitriou emphasised that most of the cases that had happened related to tax instruments, in order for some to "write down" vehicles, buildings etc. As regards the “putting up the shutters”, most of these enterprises had been inactive for 2-3 years and again they closed their books for tax reasons. There is no new “putting up the shutters” in the market, he argued.
The Economy Minister estimated that this moment constituted a very friendly environment for investment, for both foreign and Greek investors. High taxation is being highlighted, but the more important issue is funding," he said. With the new financial instruments and through the EU, the European Investment Bank, the NSRF (The National Stronger Regions Fund), the European Investment Fund, there are a large number of enterprises that want to invest in tourism, in manufacturing, in products that support the agricultural sector, in start-ups, he added.
The return to growth of the Greek economy is confirmed by the Institutions, the IMF, the EU, the studies of many banks. "We're not the only ones who maintain this."
"I think we are in a good position to start negotiating again and conclude the Second Assessment either by the end of January, or by mid-February."
Footnote to the week!
Institutions’ Fresh Objections
Greece’s creditors – and particularly the International Monetary Fund – are raising fresh objections to the Government’s plans for financing its Social Solidarity Income.
Creditor representatives are demanding fresh cuts to welfare benefits if the Government wants to finance the measure for supporting vulnerable social groups in 2018, adding one more obstacle in the process for completing the second bailout review.
The Greek negotiating team regarded this issue as closed following the Government’s commitment to proceed with two severe “reforms” to benefits given to households and to the disabled, as well as to tax exemptions, to make a saving of between 200€ and 210€ million in 2018. The aim is for some 700,000 people to benefit from the Social Solidarity Income. The Government’s plan is for the measure to be financed in 2017 and in the coming years from the state budget.
Provisional end-of-year figures released by the Finance Ministry showed a Primary Surplus of approximately 4.4€ billion in 2016. The Institutions’ target was set at 1.8€ billion. In December revenues reached 6.026€ billion, exceeding that target by 114€ million.
Also on Wednesday, Prime Minister Alexis Tsipras told MPs that “the exit from the program in mid-2018 is in sight” adding that he expected the Second Assessment to be concluded without the need to legislate new austerity measures beyond 2018.
The Government hopes that the swift conclusion of the Second Assessment will allow it to be considered for inclusion in the European Central Bank’s Quantitative Easing (QE) programme, which would in turn put Greece in a position to test the Bond markets in 2017.
Clarity over the IMF’s role in the Greek bailout programme is not expected before February. The IMF remains adamant that the Greek Primary Surplus goal should be reduced from 3.5% to 1.5% of GDP. Greece’s European creditors strongly object. The alternative, according to the IMF, is for the Greek Government to adopt additional “measures” worth approximately 4.5€ billion. The Government opposes such measures and has reportedly suggested an extension of the so called “fiscal cutter” – the Automatic Fiscal Adjustment Mechanism of the Budget in the event that targets are in danger of being missed.
Divisions over labour reforms, fiscal targets and debt relief are preventing Greece and its foreign lenders from concluding a compliance review - the Second Assessment - of its current bailout programme.
Also on Wednesday a German Finance Ministry spokesman said “we still expect IMF participation. For us, this participation has been promised and is necessary.” Earlier a report by German newspaper, Bild, suggested that Finance Minister Wolfgang Schaeuble was making preparations in the event of the IMF exiting the Greek programme. The IMF says it will only join in if this rescue is the country's last and it includes significant debt relief.
Minister Schaeuble believes that debt relief would take the pressure off Greece to reform its economy. He has said he favours shifting some of the European Commission's task of enforcing euro zone budget rules to the non-political body the European Stability Mechanism (ESM).
An ESM spokesman told Reuters: "We continue to work hard so that the IMF remains engaged in Greece and pursues the work there with the European institutions."
Following the continuing position of the International Monetary Fund (IMF) saying that it will only consider being involved in the bailout programme for Greece if the agreement includes debt relief, the German Finance Minister, Wolfgang Schaeuble has started preparing to go ahead with presenting a modified programme on his own, Reuters has reported.
According to Germany’s Bild newspaper, the German Government is preparing to present a modified programme which would be voted on in the Bundestag lower house of parliament if the IMF refuses to take part. The vote would take place by September, before the elections, sources have said.
Unnamed sources in the report published by Bild said that since the IMF has repeatedly stated that it will only participate in the bailout if significant debt relief is granted to Greece and Berlin refuses to consider that, Minister, Schaeuble has come to the conclusion that the European Stability Mechanism (ESM) should step in to fill the gap left by the IMF.
In a Wall Street Journal interview published on Monday, German Finance Minister Schaeuble repeated a statement he made last week that the withdrawal of the IMF could mean that the Greek bailout programme would need to be renegotiated. More specifically he had said that any new programme would have to get German Parliament approval, a procedure that would take a long time. “Should the Second Assessment not come to a successful conclusion and should the IMF withdraw, then the current programme would be obsolete. The programme was agreed to only on the expectation that the IMF would participate,” he said.
“If it became obsolete, then we would have a situation in which one would need to come up with something new. I wouldn’t recommend this to the Greek Government,” Schaeuble added. “But I would be completely relaxed. The German Bundestag would first need to discuss and agree on whether or not it approves negotiating a new programme.”
The Greek bailout programme can proceed without the IMF’s participation, stated Interior Minister Panos Skourletis on Monday adding that a political intermediary is better than an inflexible technocrat that wants to implement recipes that did not have positive results in most of the countries where they have been applied.
Asked if the Fund is Greece’s ally on the debt issue, Minister Skourletis said “I don’t know if it is really our ally. If it was our real ally it wouldn’t ask for measures that make the [debt re- Ed] payment difficult. There is a contradiction here that leads us to the conclusion that we do not know what the IMF really wants.
Finance Ministry's Report : Economic Data for 2016
The development of the Greek economy is a fact, not a prediction, stated the Minister of the Economy and Development, Dimitris Papadimitriou citing in detail the magnitudes and data on the leaps forward of the year just passed.
“The Greek economy has returned to trends of growth, everyone says so, the numbers confirm it.”
* a 1.8% increase in real GDP in the third quarter of 2016
* a 12.6% increase in the volume of gross investment in fixed capital assets (private investment)
* a 10.2% increase in exports of goods and services, generating a surplus in the current account for the first time since 1948
* a 5.1% increase in private consumption on an annual basis in real economic terms over the same period
* a 228% increase in direct foreign investment between January-October from 703€ million in 2015 to 2.303€ billion in 2016.
* employment growth to the tune of 232,000 jobs from the first quarter of 2015 to the third quarter of 2016, while the unemployment rate was reduced by a corresponding 4 percentage points from 26.6% in 22.6%.
* a rise of 2.3% on an annual basis of the general index of industrial production in the eleven months of 2016 in comparison to 0.5% in the corresponding period in 2015.
Economic development both in 2017 and 2018 will further reduce unemployment, as predicted, while he reiterated that opposition claims about companies “putting up the shutters” or companies moving operations to countries such as neighbouring Bulgaria were unfounded.
Minister Papadimitriou emphasised that most of the cases that had happened related to tax instruments, in order for some to "write down" vehicles, buildings etc. As regards the “putting up the shutters”, most of these enterprises had been inactive for 2-3 years and again they closed their books for tax reasons. There is no new “putting up the shutters” in the market, he argued.
The Economy Minister estimated that this moment constituted a very friendly environment for investment, for both foreign and Greek investors. High taxation is being highlighted, but the more important issue is funding," he said. With the new financial instruments and through the EU, the European Investment Bank, the NSRF (The National Stronger Regions Fund), the European Investment Fund, there are a large number of enterprises that want to invest in tourism, in manufacturing, in products that support the agricultural sector, in start-ups, he added.
The return to growth of the Greek economy is confirmed by the Institutions, the IMF, the EU, the studies of many banks. "We're not the only ones who maintain this."
"I think we are in a good position to start negotiating again and conclude the Second Assessment either by the end of January, or by mid-February."
Footnote to the week!
Institutions’ Fresh Objections
Greece’s creditors – and particularly the International Monetary Fund – are raising fresh objections to the Government’s plans for financing its Social Solidarity Income.
Creditor representatives are demanding fresh cuts to welfare benefits if the Government wants to finance the measure for supporting vulnerable social groups in 2018, adding one more obstacle in the process for completing the second bailout review.
The Greek negotiating team regarded this issue as closed following the Government’s commitment to proceed with two severe “reforms” to benefits given to households and to the disabled, as well as to tax exemptions, to make a saving of between 200€ and 210€ million in 2018. The aim is for some 700,000 people to benefit from the Social Solidarity Income. The Government’s plan is for the measure to be financed in 2017 and in the coming years from the state budget.
Conclusion of Second Assessment further delayed
14.01.2017
On Tuesday Labour Minister Efi Achtsioglou accused the International Monetary Fund of taking a “negative stance” in the talks with the international creditors over labour relations.Besides reportedly pushing for further “reform” of the Greek pension system, the IMF is also demanding a lifting of restrictions on mass layoffs and is opposing the restoration of mandatory collective bargaining negotiations between trade unions and employers.
Greek government sources say the stalling is not down to “technical reasons” but a political solution must be sought. To this end, on Thursday, Greek Finance Minister Euclid Tsakalotos met with the European Commissioner for Economic and Financial Affairs, Pierre Moscovici.
At the press conference following that meeting, Commissioner Moscovici told reporters that the International Monetary Fund’s (IMF) participation in the Greek programme is regarded as reassuring for a number of EU member-states. He stated that several issues remain unresolved in the negotiations to conclude the Second Assessment of the Greek bailout programme. These include energy reforms, collective bargaining and labour reforms and arriving at an assessment of the fiscal gap. “We are moving in the right direction towards concluding the Second Assessment.”
Greek Finance Minister Euclid Tsakalotos said during the joint press conference that the IMF must make up its mind about the level of its participation in the Greek programme. He added that there are many issues to be resolved but this is natural when so many players are involved.
Gerry Rice, a spokesman for the IMF, told reporters later on Thursday that the IMF is still open to being part of the Greek bailout programme. Mr. Rice added that there is no clear timetable for the resumption of talks between Greece and its creditors.
The spokesman reiterated the long-standing IMF position that a 1.5% Primary Surplus target is a more realistic target for the Greek economy. According to the IMF, reducing the target will mean Greece will not require new fiscal measures. In order to achieve European creditors’ current demand for Primary Surplus targets of 3.5% of GDP after the current bailout programme ends, the IMF’s insists that additional measures worth four billion euros will be required after 2018.
Greek government spokesman Dimitris Tzanakopoulos said during his regular press briefing that the Second Assessment can only be successfully concluded if there is a political agreement. He stressed that the conclusion of the Assessment was being delayed due to “disagreements” between the IMF and the Eurozone about the prospects of the Greek economy. He added that currently there is no technical problem. He repeated that “irrational demands” – such as sharply reducing the tax-free threshold – will not be accepted by the Greek Government.
“It is not possible for Greece to be excluded from basic EU rights with regard to the regulation of labour relations,” noted SYRIZA spokeswoman Ranai Svingou, adding that “there is no room for the pre-election tactics of a Eurozone Member State” in the negotiations to conclude the Second Assessment. "The persistent demands from a certain section of the creditors, namely the IMF and Berlin, are behind the delay."
"There are currently no technical or economic reasons to merit any delay. Initiatives are being taken at all levels to complete the Assessment.”
“We have made it clear that measures after the expiry of the programme cannot be accepted and that, in fact, the will undermine the Greek economy itself and the need to turn the page.”
“It is the clear position of the IMF's attitude and we all know who insisted on the involvement of the IMF in the Greek programme and who continue to want it to stay in it. The Assessment and its completion is not only positive news for the country, but is positive news for Europe itself, because I cannot accept that currently it is in Europe’s interest for there to be an additional outbreak of uncertainty.”
"For this to happen there is no room at this moment for either obsessions or for new errors in their projections as we have grown accustomed with the IMF, nor indeed for the personal pre-election tactics of one Eurozone Member State to the detriment of another Member State, that is to say, to Greece's detriment especially when its consequences affect itself and the whole of Europe.”
“Relationships within the framework of the agreement have changed compared to a year ago. We are not in the same position. We are in a phase where the Greek economy has exceeded its targets in relation to the programme and at the same time we are trying to create a way out of the crisis without putting new burdens and new strains on Greek society. It will be to the detriment of the economy itself if there are new unbearable measures and precisely for this reason we cannot accept voting on preventive measures for after 2018, after the end of the programme.”
“The turning of the page and the optimism about a new phase on which the Greek economy must embark, turns on the completion of the Assessment. And this, as I said earlier, will be positive news and a positive signal for the whole of Europe.”
“Yet there is indeed a part of the European elite that has not understood anything at all about what has happened, not only in Greece and on the failed programmes which were designed and implemented. But they have not understood anything from what is happening in Europe.
At the moment Europe is suffocating from the politics of austerity and it cannot continue to have Greece and other countries as guinea pigs, for the implementation of the most destructive policies.”
At the press conference following that meeting, Commissioner Moscovici told reporters that the International Monetary Fund’s (IMF) participation in the Greek programme is regarded as reassuring for a number of EU member-states. He stated that several issues remain unresolved in the negotiations to conclude the Second Assessment of the Greek bailout programme. These include energy reforms, collective bargaining and labour reforms and arriving at an assessment of the fiscal gap. “We are moving in the right direction towards concluding the Second Assessment.”
Greek Finance Minister Euclid Tsakalotos said during the joint press conference that the IMF must make up its mind about the level of its participation in the Greek programme. He added that there are many issues to be resolved but this is natural when so many players are involved.
Gerry Rice, a spokesman for the IMF, told reporters later on Thursday that the IMF is still open to being part of the Greek bailout programme. Mr. Rice added that there is no clear timetable for the resumption of talks between Greece and its creditors.
The spokesman reiterated the long-standing IMF position that a 1.5% Primary Surplus target is a more realistic target for the Greek economy. According to the IMF, reducing the target will mean Greece will not require new fiscal measures. In order to achieve European creditors’ current demand for Primary Surplus targets of 3.5% of GDP after the current bailout programme ends, the IMF’s insists that additional measures worth four billion euros will be required after 2018.
Greek government spokesman Dimitris Tzanakopoulos said during his regular press briefing that the Second Assessment can only be successfully concluded if there is a political agreement. He stressed that the conclusion of the Assessment was being delayed due to “disagreements” between the IMF and the Eurozone about the prospects of the Greek economy. He added that currently there is no technical problem. He repeated that “irrational demands” – such as sharply reducing the tax-free threshold – will not be accepted by the Greek Government.
“It is not possible for Greece to be excluded from basic EU rights with regard to the regulation of labour relations,” noted SYRIZA spokeswoman Ranai Svingou, adding that “there is no room for the pre-election tactics of a Eurozone Member State” in the negotiations to conclude the Second Assessment. "The persistent demands from a certain section of the creditors, namely the IMF and Berlin, are behind the delay."
"There are currently no technical or economic reasons to merit any delay. Initiatives are being taken at all levels to complete the Assessment.”
“We have made it clear that measures after the expiry of the programme cannot be accepted and that, in fact, the will undermine the Greek economy itself and the need to turn the page.”
“It is the clear position of the IMF's attitude and we all know who insisted on the involvement of the IMF in the Greek programme and who continue to want it to stay in it. The Assessment and its completion is not only positive news for the country, but is positive news for Europe itself, because I cannot accept that currently it is in Europe’s interest for there to be an additional outbreak of uncertainty.”
"For this to happen there is no room at this moment for either obsessions or for new errors in their projections as we have grown accustomed with the IMF, nor indeed for the personal pre-election tactics of one Eurozone Member State to the detriment of another Member State, that is to say, to Greece's detriment especially when its consequences affect itself and the whole of Europe.”
“Relationships within the framework of the agreement have changed compared to a year ago. We are not in the same position. We are in a phase where the Greek economy has exceeded its targets in relation to the programme and at the same time we are trying to create a way out of the crisis without putting new burdens and new strains on Greek society. It will be to the detriment of the economy itself if there are new unbearable measures and precisely for this reason we cannot accept voting on preventive measures for after 2018, after the end of the programme.”
“The turning of the page and the optimism about a new phase on which the Greek economy must embark, turns on the completion of the Assessment. And this, as I said earlier, will be positive news and a positive signal for the whole of Europe.”
“Yet there is indeed a part of the European elite that has not understood anything at all about what has happened, not only in Greece and on the failed programmes which were designed and implemented. But they have not understood anything from what is happening in Europe.
At the moment Europe is suffocating from the politics of austerity and it cannot continue to have Greece and other countries as guinea pigs, for the implementation of the most destructive policies.”
TV Licences
In October, the Council of State ruled that the auction process which allotted four TV licences was unconstitutional. Now the Association of National Broadcasting Television Station Owners (EITHSEE) have asked the Supreme Court - the Council of State - to make a ruling to exempt its top executives from filing wealth statements [showing the origins of their money and by implication whether appropriate taxes have been paid Ed.].
Nikos Pappas, the Greek Minister of Digital Policy, Media and Telecommunications, expressed his surprise at the request and wondered “what the TV channel owners want to hide”.
“They have exceeded any reasonable boundary,” he said, calling the demand “a provocative action against the Greek people”. “It makes no sense to implement controls on the wealth (and its origins) of individual journalists while rich channel owners and well-paid executives are exempt.”
The Channel Owners Association is raising concerns about privacy and the sensitivity of commercial data to support its demand, citing fears that sensitive private data could be leaked. The EITHSEE also claims the legislative provision for such wealth declarations is illegal and unconstitutional.
In October 2015, the Greek Parliament approved a new media bill, delivering on promises made under the bailout agreement with its international creditor last July. According to the Government the law aimed to open up the media market to competition from new players.
In January Minister of State Nikos Pappas repeated that the Greek Government was determined to bring order and legality into the broadcasting business. “For 25 years Greece has been the only EU country that has never undertaken any licencing process for private TV channels, maintaining the lawless regime of temporary licences.”
In October, the Council of State ruled that the auction process which allotted four TV licences was unconstitutional. Now the Association of National Broadcasting Television Station Owners (EITHSEE) have asked the Supreme Court - the Council of State - to make a ruling to exempt its top executives from filing wealth statements [showing the origins of their money and by implication whether appropriate taxes have been paid Ed.].
Nikos Pappas, the Greek Minister of Digital Policy, Media and Telecommunications, expressed his surprise at the request and wondered “what the TV channel owners want to hide”.
“They have exceeded any reasonable boundary,” he said, calling the demand “a provocative action against the Greek people”. “It makes no sense to implement controls on the wealth (and its origins) of individual journalists while rich channel owners and well-paid executives are exempt.”
The Channel Owners Association is raising concerns about privacy and the sensitivity of commercial data to support its demand, citing fears that sensitive private data could be leaked. The EITHSEE also claims the legislative provision for such wealth declarations is illegal and unconstitutional.
In October 2015, the Greek Parliament approved a new media bill, delivering on promises made under the bailout agreement with its international creditor last July. According to the Government the law aimed to open up the media market to competition from new players.
In January Minister of State Nikos Pappas repeated that the Greek Government was determined to bring order and legality into the broadcasting business. “For 25 years Greece has been the only EU country that has never undertaken any licencing process for private TV channels, maintaining the lawless regime of temporary licences.”
China in Greece
Chinese enterprises are showing an increased interest in Greece, as not only does the country offer them an entry gate to the Eurozone and the rest of Europe, but it’s also a relatively new market for them.
Just weeks after the signing of a cooperation agreement between Greece’s Public Power Corporation and China’s Machinery Engineering Corporation (CMEC) on the development of joint infrastructure projects, and days after the acquisition of 24% in the Independent Power Transmission Operator (ADMIE) by China’s State Grid Corporation, the head of the Chinese Shenhua Group arrived in Athens with his staff.
According to press reports, the chief of one of the world’s biggest corporations in coal and energy trading “expressed his desire to understand in depth the Greek energy market and to promote cooperation with Greek enterprises on such projects as lignite-powered electricity units.”
After investments in infrastructure (e.g. COSCO in the Port of Piraeus) and energy, Chinese enterprises are now looking at the sectors of food, services, tourism (and its infrastructure), scientific innovation, culture, property market and healthcare. The next few weeks will see the arrival of Chinese business missions to Greece to that end. China will also be the country of honour at the 2017 Thessaloniki International Fair.
Chinese enterprises are showing an increased interest in Greece, as not only does the country offer them an entry gate to the Eurozone and the rest of Europe, but it’s also a relatively new market for them.
Just weeks after the signing of a cooperation agreement between Greece’s Public Power Corporation and China’s Machinery Engineering Corporation (CMEC) on the development of joint infrastructure projects, and days after the acquisition of 24% in the Independent Power Transmission Operator (ADMIE) by China’s State Grid Corporation, the head of the Chinese Shenhua Group arrived in Athens with his staff.
According to press reports, the chief of one of the world’s biggest corporations in coal and energy trading “expressed his desire to understand in depth the Greek energy market and to promote cooperation with Greek enterprises on such projects as lignite-powered electricity units.”
After investments in infrastructure (e.g. COSCO in the Port of Piraeus) and energy, Chinese enterprises are now looking at the sectors of food, services, tourism (and its infrastructure), scientific innovation, culture, property market and healthcare. The next few weeks will see the arrival of Chinese business missions to Greece to that end. China will also be the country of honour at the 2017 Thessaloniki International Fair.
"2017, as well as being a year of recovery, will also be the year of major institutional interventions and changes the country needs"
7.1.2017
Prime Minister Alexis Tsipras' New Year message delivered on 31st December 2016.
"I want to wish everyone a happy New Year and may the New Year find you with the people you love."
2017, as well as being a year of recovery, will also be the year of major institutional interventions and changes the country needs.
But I know that today many of our fellow citizens are not able to celebrate like the rest. It is to them that our thoughts go. To the people that the economic crisis led to the cliff edge. To the unemployed, to the low wage earners, to the poorest pensioners. The people who every day struggle for survival.
First of all about those giving battle to extricate our country from the stranglehold of the Memoranda and of Supervision.
In the year that is closing we achieved many things. Not everything we wanted, but many things. We have stabilised the Greek economy. We have finally moved on to positive economic growth. We have reduced unemployment by a further 3%. 2.5 million of our fellow citizens have gained access to the public health system. The programme for the humanitarian crisis widened. Greece from last position became the top country in the 28 EU states in absorbing resources from the structural funds.
With hard work we managed not only to achieve but also to go beyond the targets of the Programme. And this for the first time in six whole years. And this was the success that enabled us to do what we consider our minimum duty. For us to support the poorest pensioners giving for this year the 13th pension payment to 1.6 million beneficiaries.
Giving them the right to enjoy the festivities with dignity and optimism.
At the same time it also gave us the ability to keep fixed the VAT in our islands. Where they are taking on the burden of the refugee flows. So in order to support our Islanders who carry on their backs the whole of Europe’s burden. Our islanders, who teach humanism and solidarity, even to the rich nations of the North as well.
And we're proud of that. We are proud that small Greece is showing Europe the road of values, in contrast to the road of racism, intolerance and closed borders.
We know that this road, the only road to a United Europe, is difficult. It has obstacles. It has sworn opponents. The forces that feed the extreme right and isolationism. The forces of extended austerity. Precisely those forces that have led Europe to today's deadlock.
But at the same time we know from history, that if the people are united and determined, they can overcome even the greatest difficulties. That they can overcome even the most powerful opponents. The very history of our people is the most resounding example.
So we aspire, for 2017 to be the year that will confirm our history. The year that our country will make the great leap forward. On the economy, in society, but also on our national issues. Because Greece is succeeding, in a difficult period of uncertainty and insecurity, in being a pillar of stability and security in the wider region.
And to maintain this role, we will work hard: Both with our firm commitment to a just and viable solution to the Cyprus problem, and with the unwavering stance of solidarity to address the refugee crisis.
We aspire for 2017 to be the year that will confirm the irreplaceable role of Greece in the international and European firmament.
But also the year in which confidence and stability in the Greek economy will be consolidated. And this, for the first time after seven years of crisis, is not simply a mundane new year wish. But a realistic expectation. Because 2017 will be a year of high growth rates.
With the completion of the Second Assessment opens the road to quantitative easing and our recovery of access to the markets. It will be the first step towards regaining our economic independence.
2017 will also be the year of investment. The year that our economy will reap the fruits of the hard work of absorbing European funds. With the emphasis on small and medium-sized enterprises, research and innovation. Because this is the competitive advantage of the Greek economy. Knowledge and human capital.
2017 is also the year of the completion of major infrastructure projects that for years languished as accumulated burdens on state funds to the advantage of the vested interests.
So that is why this year, the word “development” is not just a pipedream.
However, I would like to point out that development is not enough. To be effective and to heal the wounds of the crisis, we need the development that is coming to be fair as well. And it is all of us who together will carve out the path of development, in terms of dignity, justice and social protection.
2017, however, over and above being the year of recovery, will also be the year of major institutional interventions and changes that the country needs.
In the 2017 we will conclude the dialogue and will bring forward proposals to Parliament concerning the great review of the Constitution. With a view to the broadening and deepening of democracy. But also the strengthening of democratic participation.
But the institutional interventions will not end with the Constitutional revision. In 2017, up until September, we will move towards a major intervention in our education system. To escape at last from the school as a testing centre. And to implement the frozen demand for free access to higher education.
In 2017, we will also proceed with the great reform in health. Apart from the substantial support, for the first time, in human resources, we will proceed to the establishment of a reliable System of Primary Health Care. Universal, public and free to all: workers and the unemployed, the Insured and the Uninsured.
But 2017 will also be a year of significant changes in local government. With the strengthening of its role, the Kallikrates reform, proportional representation of citizens at all its levels.
Finally 2017 we are fighting to make it a landmark year for workers in our country, with the reintroduction of collective bargaining agreements.
So that Greece stops being a sad exception in Europe.
I know well that the challenges are great. I also know that for many, the road is still uphill. But for the first time there is light at the end of the tunnel. We can now see a clearing. A clearing in the economy, in society and on the major national issues.
And I am certain that, together, we can succeed.
Let us bring our country to the position it deserves.
Happy New Year
I wish you happiness, peace and creativity for the year to come.
2017, as well as being a year of recovery, will also be the year of major institutional interventions and changes the country needs.
But I know that today many of our fellow citizens are not able to celebrate like the rest. It is to them that our thoughts go. To the people that the economic crisis led to the cliff edge. To the unemployed, to the low wage earners, to the poorest pensioners. The people who every day struggle for survival.
First of all about those giving battle to extricate our country from the stranglehold of the Memoranda and of Supervision.
In the year that is closing we achieved many things. Not everything we wanted, but many things. We have stabilised the Greek economy. We have finally moved on to positive economic growth. We have reduced unemployment by a further 3%. 2.5 million of our fellow citizens have gained access to the public health system. The programme for the humanitarian crisis widened. Greece from last position became the top country in the 28 EU states in absorbing resources from the structural funds.
With hard work we managed not only to achieve but also to go beyond the targets of the Programme. And this for the first time in six whole years. And this was the success that enabled us to do what we consider our minimum duty. For us to support the poorest pensioners giving for this year the 13th pension payment to 1.6 million beneficiaries.
Giving them the right to enjoy the festivities with dignity and optimism.
At the same time it also gave us the ability to keep fixed the VAT in our islands. Where they are taking on the burden of the refugee flows. So in order to support our Islanders who carry on their backs the whole of Europe’s burden. Our islanders, who teach humanism and solidarity, even to the rich nations of the North as well.
And we're proud of that. We are proud that small Greece is showing Europe the road of values, in contrast to the road of racism, intolerance and closed borders.
We know that this road, the only road to a United Europe, is difficult. It has obstacles. It has sworn opponents. The forces that feed the extreme right and isolationism. The forces of extended austerity. Precisely those forces that have led Europe to today's deadlock.
But at the same time we know from history, that if the people are united and determined, they can overcome even the greatest difficulties. That they can overcome even the most powerful opponents. The very history of our people is the most resounding example.
So we aspire, for 2017 to be the year that will confirm our history. The year that our country will make the great leap forward. On the economy, in society, but also on our national issues. Because Greece is succeeding, in a difficult period of uncertainty and insecurity, in being a pillar of stability and security in the wider region.
And to maintain this role, we will work hard: Both with our firm commitment to a just and viable solution to the Cyprus problem, and with the unwavering stance of solidarity to address the refugee crisis.
We aspire for 2017 to be the year that will confirm the irreplaceable role of Greece in the international and European firmament.
But also the year in which confidence and stability in the Greek economy will be consolidated. And this, for the first time after seven years of crisis, is not simply a mundane new year wish. But a realistic expectation. Because 2017 will be a year of high growth rates.
With the completion of the Second Assessment opens the road to quantitative easing and our recovery of access to the markets. It will be the first step towards regaining our economic independence.
2017 will also be the year of investment. The year that our economy will reap the fruits of the hard work of absorbing European funds. With the emphasis on small and medium-sized enterprises, research and innovation. Because this is the competitive advantage of the Greek economy. Knowledge and human capital.
2017 is also the year of the completion of major infrastructure projects that for years languished as accumulated burdens on state funds to the advantage of the vested interests.
So that is why this year, the word “development” is not just a pipedream.
However, I would like to point out that development is not enough. To be effective and to heal the wounds of the crisis, we need the development that is coming to be fair as well. And it is all of us who together will carve out the path of development, in terms of dignity, justice and social protection.
2017, however, over and above being the year of recovery, will also be the year of major institutional interventions and changes that the country needs.
In the 2017 we will conclude the dialogue and will bring forward proposals to Parliament concerning the great review of the Constitution. With a view to the broadening and deepening of democracy. But also the strengthening of democratic participation.
But the institutional interventions will not end with the Constitutional revision. In 2017, up until September, we will move towards a major intervention in our education system. To escape at last from the school as a testing centre. And to implement the frozen demand for free access to higher education.
In 2017, we will also proceed with the great reform in health. Apart from the substantial support, for the first time, in human resources, we will proceed to the establishment of a reliable System of Primary Health Care. Universal, public and free to all: workers and the unemployed, the Insured and the Uninsured.
But 2017 will also be a year of significant changes in local government. With the strengthening of its role, the Kallikrates reform, proportional representation of citizens at all its levels.
Finally 2017 we are fighting to make it a landmark year for workers in our country, with the reintroduction of collective bargaining agreements.
So that Greece stops being a sad exception in Europe.
I know well that the challenges are great. I also know that for many, the road is still uphill. But for the first time there is light at the end of the tunnel. We can now see a clearing. A clearing in the economy, in society and on the major national issues.
And I am certain that, together, we can succeed.
Let us bring our country to the position it deserves.
Happy New Year
I wish you happiness, peace and creativity for the year to come.
In a newspaper interview published last Sunday, Finance Minister Euclid Tsakalotos spoke about the Government’s pre-Christmas measures:
"The surplus is not only to pay off arrears and provide a cushion for the Treasury, but it is also for reducing taxes and for strengthening social protection," said Finance Minister, Euclid Tsakalotos in a newspaper interview, in which he also added that there is not a single thought about early elections, only "how to secure the conditions to build on the improvement of the economy over the last two quarters."
Asked "how left is the choice" for a share of the surplus to be granted on the sole criterion of pension income, Euclid Tsakalotos answered that " administratively it is easier to give the money to pensioners and, at the same time, for it to be expended within December in order to register the expenditure in the 2016 budget, so it does not create any problem as regards the budgetary targets of the Programme".
Referring to the contents of his letter to the Institutions, the Finance Minister stressed that it is "extremely unlikely" that we will not reach the target of + 0.5% [Primary Surplus].
Asked if he believed that the IMF will pull out the Greek Programme, or if the Fund could participate as a technical adviser, Mr. Tsakalotos answered: "I really don't know what the IMF wants. Even the IMF itself does not know what it wants. There are many solutions for the completion of the current phase of the negotiations, one of which has the IMF primarily as a technical advisor. The markets know how to judge the credibility of the Programme. Will investors have a clean and safe route to invest? Will we get access to the QE? Will there be the objective conditions for us to go to the markets and hence also out from the Programme? These are the important questions. "
Asked what were the chances there would be a solution after 2018 about the establishment of a new mechanism of predefined measures in order to ensure the achievement of the budgetary targets, Minister Tsakalotos stressed: "We have made it crystal clear that we are not now legislating for such measures for after 2018. I have not understood that any such thing applies even for New Democracy. In the extremely unlikely event that the IMF breaks its impressive streak and one of its predictions comes to pass, we have said that we have described the measures necessary in that event. In this context we have also discussed a mechanism of commitment like the extension of the Automatic Fiscal Adjustment Mechanism of the Budget.
Tax debts to Greek state more than 94€ billion
More than half of the country’s taxpayers owe money to the Greek state, according to the Finance Ministry’s General Secretariat of Public Revenues. 4.3 million Taxpayers have debts in excess of 94€ billion, prompting authorities to take collection measures, including seizures of deposits and assets, against 826,211 taxpayers.
Debts accrued prior to 2016 come to 81.6€ billion, according to the figures published. Of this, more than 8€ billion is owed by state-owned businesses and municipal authorities, while some 12€ billion is unredeemable as it is owed by private businesses that have declared bankruptcy.
Individuals and legal entities owe another 61.8€ billion, according to the Finance Ministry, while some 157€ million is the result of debts resulting from companies issuing false receipts and invoices.
New debts accrued in the January-November 2016 period come to 12.6€ billion euros. The actual figure could be much higher as this does not include debts from indirect taxes, fines, customs fees, etc.
In October alone, taxpayers failed to pay 890€ million in taxes, while collection measures are expected to be taken against another 1.7 million taxpayers with debts to the state, the Ministry said.
"The surplus is not only to pay off arrears and provide a cushion for the Treasury, but it is also for reducing taxes and for strengthening social protection," said Finance Minister, Euclid Tsakalotos in a newspaper interview, in which he also added that there is not a single thought about early elections, only "how to secure the conditions to build on the improvement of the economy over the last two quarters."
Asked "how left is the choice" for a share of the surplus to be granted on the sole criterion of pension income, Euclid Tsakalotos answered that " administratively it is easier to give the money to pensioners and, at the same time, for it to be expended within December in order to register the expenditure in the 2016 budget, so it does not create any problem as regards the budgetary targets of the Programme".
Referring to the contents of his letter to the Institutions, the Finance Minister stressed that it is "extremely unlikely" that we will not reach the target of + 0.5% [Primary Surplus].
Asked if he believed that the IMF will pull out the Greek Programme, or if the Fund could participate as a technical adviser, Mr. Tsakalotos answered: "I really don't know what the IMF wants. Even the IMF itself does not know what it wants. There are many solutions for the completion of the current phase of the negotiations, one of which has the IMF primarily as a technical advisor. The markets know how to judge the credibility of the Programme. Will investors have a clean and safe route to invest? Will we get access to the QE? Will there be the objective conditions for us to go to the markets and hence also out from the Programme? These are the important questions. "
Asked what were the chances there would be a solution after 2018 about the establishment of a new mechanism of predefined measures in order to ensure the achievement of the budgetary targets, Minister Tsakalotos stressed: "We have made it crystal clear that we are not now legislating for such measures for after 2018. I have not understood that any such thing applies even for New Democracy. In the extremely unlikely event that the IMF breaks its impressive streak and one of its predictions comes to pass, we have said that we have described the measures necessary in that event. In this context we have also discussed a mechanism of commitment like the extension of the Automatic Fiscal Adjustment Mechanism of the Budget.
Tax debts to Greek state more than 94€ billion
More than half of the country’s taxpayers owe money to the Greek state, according to the Finance Ministry’s General Secretariat of Public Revenues. 4.3 million Taxpayers have debts in excess of 94€ billion, prompting authorities to take collection measures, including seizures of deposits and assets, against 826,211 taxpayers.
Debts accrued prior to 2016 come to 81.6€ billion, according to the figures published. Of this, more than 8€ billion is owed by state-owned businesses and municipal authorities, while some 12€ billion is unredeemable as it is owed by private businesses that have declared bankruptcy.
Individuals and legal entities owe another 61.8€ billion, according to the Finance Ministry, while some 157€ million is the result of debts resulting from companies issuing false receipts and invoices.
New debts accrued in the January-November 2016 period come to 12.6€ billion euros. The actual figure could be much higher as this does not include debts from indirect taxes, fines, customs fees, etc.
In October alone, taxpayers failed to pay 890€ million in taxes, while collection measures are expected to be taken against another 1.7 million taxpayers with debts to the state, the Ministry said.
Prime Minister Alexis Tsipras in Heraklion
Tuesday 20th December 2016
31.12.2016
PM Tsipras gave this speech in Heraklion during his two day visit to Crete before Christmas
Dear friends,
Thank you warmly for this reception and I must admit that I have been away from you, it is some time since I came our island of Crete, to Iraklion, to meet up with you. It is a great pleasure for me today that I had the opportunity to be with you, to meet and talk with people of toil, producers, working people about the problems, the concerns, the anxieties, the hopes, the expectations.
However, allow me to begin my speech with a reference to what happened last night. Because yesterday was a difficult night. A difficult night for the whole of Europe. Ankara, Berlin, Moscow and the whole of Europe was shocked by the heinous acts of terror. Acts which demonstrate that unfortunately we live in a dark age. And that we cannot for a single moment consider anything other than priceless the commodity of security and stability that we enjoy here in Greece. Because Greece, at the centre of a wider area of instability with destabilizing shocks all around, constitutes an area of stability and security in Europe.
The minimum that we must express at this moment is our solidarity and sympathy with the victims of the terrorist acts. With the families and their loved ones. But also our undivided support for the German, Russian and Turkish peoples. But also for all the peoples of Europe and of the world who are suffering from war and terrorism.
I think, however, that statements of support are not enough. Needed simultaneously is self-reflection and also political action. Because whether the world will move forward depends on our own decisions. Or, if the world is to retreat back to a regime of generalised violence and intolerance.
Starting in this beautiful gathering in Iraklion, I want to repeat once again: The future of this world can only be guaranteed by democracy, tolerance and dedication to peace and social cohesion. This is the only way to establish security and peace in modern societies. And on this road, exploiting the dynamics, but also the values of our people, we have moved forward and work as a Government for nearly two years ago, having built bridges of friendship and cooperation, but also having shown Greece as a pioneering force by its energetic and multifaceted foreign policy for peace and stability in our region.
Dear friends,
Closing this parenthesis, I want to thank you warmly for today you have given me the opportunity, through this tour, to come once again close to people who are conducting the daily struggle of life.
Not only for their own survival and well-being. But for the life of the whole country. We know very well - and all citizens know it - that the situation our country is going through is difficult. The productive forces of the country have been hemmed in by a disastrous recession, mainly - and peaking – over five years, the catastrophic five-year period 2010 – 2014, where almost 1/4 of our national wealth was destroyed, where the country's GDP shrank by 25%. The Welfare State was virtually levelled. Unemployment reached nightmarish levels.
And we must not forget that this, precisely this, was the situation that we inherited in January 2015. And today we need to remember this even more. Today, when we are bringing to fruition a policy of working through and exiting the crisis.
Especially at the time when the destroyers of our society and economy, those who implemented measures of destruction and plundering of the society over the disastrous five year period 2010-2014 and who signed white papers, are coming now and wagging their finger. And they say to us: Why you haven’t you tidied up everything we dismantled with great skill over more than 40 years? Why haven’t you managed that? And they wag their finger at us and say: Why haven’t you got out of the vicious circle of austerity, into which we drove the country? Why haven’t you managed to extricate the country we bankrupted from the cul de sac of bankruptcy? That is what they are saying to us.
And so I would like to clarify the following: you all know that we fought tooth and nail in the first six months, defying risks, asymmetric threats and blackmail with the sole aim of defending the rights of the Greek people.
We have opened cracks, we opened roads, we see them everywhere in Europe. We have secured an agreement which despite the constraints is leading to a visible solution. A difficult agreement but one that was feasible. One which we are implementing. And the end of this agreement, stipulating that the end of the agreement is mid-2018 at the latest.
Beyond that, and I want to be perfectly clear, there are no other commitments and no other measures. And this is a message that must be passed on, both inside and outside the country.
The sovereignty of our country will be restored by following this difficult roadmap we have agreed beforehand, the completion of the Second Assessment. The implementation of measures about the debt, short-term and medium-term measures, is the obligation of our partners – and indeed an obligation which has existed on the basis of the deal after the end of the First Assessment, let's not forget. Access of Greece to the ECB's quantitative easing programme and participation in the financial markets in the course of 2017. This is the roadmap and beyond the sovereignty of our country is restored. The guardianship and the memoranda are coming to an end.
Dear Friends,
Throughout this whole period of being in Government, we have kept to a firm commitment: the defence of the weakest. In solidarity with those who have no other desire than to live with dignity from their labour.
It was a difficult time but it seems that we are managing it. The economy has worked. And has yielded far more than expected. Despite the fact that the prophets of doom were writing all summer that we are not doing well on revenues – they have been saying this for say 1.5 – 2 years, that the economy is being destroyed– that we cannot reach the targets, that 2016 would be a year of deep recession – that is what they were saying - 2016 closes and it is almost certain that it is closing with positive signs of growth, despite the prophesies of the prophets of doom.
Unemployment, which we inherited at 27%, is today 23.2%. The reduction is nearly 4 percentage points. A reduction, which is certainly not negligible, but without our celebrating, because even today this figure is extremely high for a country, an EU Member State. But it is neither a disaster nor an insignificant fact that we have succeeded within a year and a half in reducing unemployment by something more than 4 percentage points.
In 2016 alone we had approximately 220,000 new jobs. I repeat that the problem persists. However, for the first time, and having the forecasts for 2017 for high growth and falling unemployment, we can say with greater certainty that it is feasible for us to implement, to approach, a great national goal that we have set: In 2021 when we celebrate the 200 year anniversary of the Greek Revolution, the regenerated Hellenic Republic , our homeland to be a normal European country. And being a normal European country means, above all, unemployment rates that are comparable to the eurozone average.
We are continuing down the same road, charting a steady course for the exit from the crisis, for stability and for development. And at the same time we continue the negotiation for the completion of the Programme. Holding firm positions, which ensure social cohesion and the interests of the Greek people. And precisely within the framework of exceeding the targets that I described to you earlier, instead of the "cutter",[the fiscal contingency mechanism, which is to be activated in the event of Eurostat figures showing that the agreed budgetary targets have not been achieved Ed] as some prayed and predicted, with the surpassing of our targets which is leading us to a surplus of nearly 1.1% (instead of 0.5% of GDP that is the target), the "donor" is being activated and not the "cutter".
And we are in a position to make a substantial commitment to those on low pensions, those who have borne on their shoulders the largest part of the burden for the exit from the crisis: the provision of a 13th pension payment.
And so here, I have to tell you some good news and some bad news. The good news is that the 13th pension payment to all those receiving less than 850€ will be paid normally, on the day after tomorrow on Thursday 22 December. And 1,600,000 pensioners will have the possibility of real support in difficult times. The bad news, dear friends, is that your fellow Cretan, Kyriakos Mitsotakis disagrees. He doesn't want to give the 13th pension payment. He is worried that our Creditors will be annoyed. I don't know, what do you say, shall we or shall we not indulge his whim?
But you know what the paradox is? The paradox is not that he is worried. He is almost always worried when he sees there is a prospect of recovery, of exit from the crisis, of strengthening the society that is suffering. The paradox is that his concern is expressed in retrospect, and only when the reaction from one section of our lenders is made public. Until recently he criticised us on the grounds that it amounted to nothing, that we were the world and that of course he would vote for it. And as soon as the most extreme of the Cr
Thank you warmly for this reception and I must admit that I have been away from you, it is some time since I came our island of Crete, to Iraklion, to meet up with you. It is a great pleasure for me today that I had the opportunity to be with you, to meet and talk with people of toil, producers, working people about the problems, the concerns, the anxieties, the hopes, the expectations.
However, allow me to begin my speech with a reference to what happened last night. Because yesterday was a difficult night. A difficult night for the whole of Europe. Ankara, Berlin, Moscow and the whole of Europe was shocked by the heinous acts of terror. Acts which demonstrate that unfortunately we live in a dark age. And that we cannot for a single moment consider anything other than priceless the commodity of security and stability that we enjoy here in Greece. Because Greece, at the centre of a wider area of instability with destabilizing shocks all around, constitutes an area of stability and security in Europe.
The minimum that we must express at this moment is our solidarity and sympathy with the victims of the terrorist acts. With the families and their loved ones. But also our undivided support for the German, Russian and Turkish peoples. But also for all the peoples of Europe and of the world who are suffering from war and terrorism.
I think, however, that statements of support are not enough. Needed simultaneously is self-reflection and also political action. Because whether the world will move forward depends on our own decisions. Or, if the world is to retreat back to a regime of generalised violence and intolerance.
Starting in this beautiful gathering in Iraklion, I want to repeat once again: The future of this world can only be guaranteed by democracy, tolerance and dedication to peace and social cohesion. This is the only way to establish security and peace in modern societies. And on this road, exploiting the dynamics, but also the values of our people, we have moved forward and work as a Government for nearly two years ago, having built bridges of friendship and cooperation, but also having shown Greece as a pioneering force by its energetic and multifaceted foreign policy for peace and stability in our region.
Dear friends,
Closing this parenthesis, I want to thank you warmly for today you have given me the opportunity, through this tour, to come once again close to people who are conducting the daily struggle of life.
Not only for their own survival and well-being. But for the life of the whole country. We know very well - and all citizens know it - that the situation our country is going through is difficult. The productive forces of the country have been hemmed in by a disastrous recession, mainly - and peaking – over five years, the catastrophic five-year period 2010 – 2014, where almost 1/4 of our national wealth was destroyed, where the country's GDP shrank by 25%. The Welfare State was virtually levelled. Unemployment reached nightmarish levels.
And we must not forget that this, precisely this, was the situation that we inherited in January 2015. And today we need to remember this even more. Today, when we are bringing to fruition a policy of working through and exiting the crisis.
Especially at the time when the destroyers of our society and economy, those who implemented measures of destruction and plundering of the society over the disastrous five year period 2010-2014 and who signed white papers, are coming now and wagging their finger. And they say to us: Why you haven’t you tidied up everything we dismantled with great skill over more than 40 years? Why haven’t you managed that? And they wag their finger at us and say: Why haven’t you got out of the vicious circle of austerity, into which we drove the country? Why haven’t you managed to extricate the country we bankrupted from the cul de sac of bankruptcy? That is what they are saying to us.
And so I would like to clarify the following: you all know that we fought tooth and nail in the first six months, defying risks, asymmetric threats and blackmail with the sole aim of defending the rights of the Greek people.
We have opened cracks, we opened roads, we see them everywhere in Europe. We have secured an agreement which despite the constraints is leading to a visible solution. A difficult agreement but one that was feasible. One which we are implementing. And the end of this agreement, stipulating that the end of the agreement is mid-2018 at the latest.
Beyond that, and I want to be perfectly clear, there are no other commitments and no other measures. And this is a message that must be passed on, both inside and outside the country.
The sovereignty of our country will be restored by following this difficult roadmap we have agreed beforehand, the completion of the Second Assessment. The implementation of measures about the debt, short-term and medium-term measures, is the obligation of our partners – and indeed an obligation which has existed on the basis of the deal after the end of the First Assessment, let's not forget. Access of Greece to the ECB's quantitative easing programme and participation in the financial markets in the course of 2017. This is the roadmap and beyond the sovereignty of our country is restored. The guardianship and the memoranda are coming to an end.
Dear Friends,
Throughout this whole period of being in Government, we have kept to a firm commitment: the defence of the weakest. In solidarity with those who have no other desire than to live with dignity from their labour.
It was a difficult time but it seems that we are managing it. The economy has worked. And has yielded far more than expected. Despite the fact that the prophets of doom were writing all summer that we are not doing well on revenues – they have been saying this for say 1.5 – 2 years, that the economy is being destroyed– that we cannot reach the targets, that 2016 would be a year of deep recession – that is what they were saying - 2016 closes and it is almost certain that it is closing with positive signs of growth, despite the prophesies of the prophets of doom.
Unemployment, which we inherited at 27%, is today 23.2%. The reduction is nearly 4 percentage points. A reduction, which is certainly not negligible, but without our celebrating, because even today this figure is extremely high for a country, an EU Member State. But it is neither a disaster nor an insignificant fact that we have succeeded within a year and a half in reducing unemployment by something more than 4 percentage points.
In 2016 alone we had approximately 220,000 new jobs. I repeat that the problem persists. However, for the first time, and having the forecasts for 2017 for high growth and falling unemployment, we can say with greater certainty that it is feasible for us to implement, to approach, a great national goal that we have set: In 2021 when we celebrate the 200 year anniversary of the Greek Revolution, the regenerated Hellenic Republic , our homeland to be a normal European country. And being a normal European country means, above all, unemployment rates that are comparable to the eurozone average.
We are continuing down the same road, charting a steady course for the exit from the crisis, for stability and for development. And at the same time we continue the negotiation for the completion of the Programme. Holding firm positions, which ensure social cohesion and the interests of the Greek people. And precisely within the framework of exceeding the targets that I described to you earlier, instead of the "cutter",[the fiscal contingency mechanism, which is to be activated in the event of Eurostat figures showing that the agreed budgetary targets have not been achieved Ed] as some prayed and predicted, with the surpassing of our targets which is leading us to a surplus of nearly 1.1% (instead of 0.5% of GDP that is the target), the "donor" is being activated and not the "cutter".
And we are in a position to make a substantial commitment to those on low pensions, those who have borne on their shoulders the largest part of the burden for the exit from the crisis: the provision of a 13th pension payment.
And so here, I have to tell you some good news and some bad news. The good news is that the 13th pension payment to all those receiving less than 850€ will be paid normally, on the day after tomorrow on Thursday 22 December. And 1,600,000 pensioners will have the possibility of real support in difficult times. The bad news, dear friends, is that your fellow Cretan, Kyriakos Mitsotakis disagrees. He doesn't want to give the 13th pension payment. He is worried that our Creditors will be annoyed. I don't know, what do you say, shall we or shall we not indulge his whim?
But you know what the paradox is? The paradox is not that he is worried. He is almost always worried when he sees there is a prospect of recovery, of exit from the crisis, of strengthening the society that is suffering. The paradox is that his concern is expressed in retrospect, and only when the reaction from one section of our lenders is made public. Until recently he criticised us on the grounds that it amounted to nothing, that we were the world and that of course he would vote for it. And as soon as the most extreme of the Cr