Greece - PM - Meeting with Jose Manuel Barroso in Brussels
MR. J.M. BARROSO: Good afternoon, ladies and gentlemen. It was indeed a pleasure to meet once more my good friend Prime Minister Papandreou. It’s always a pleasure to have this opportunity to discuss European issues with him.
We have discussed in a really good and open manner the full range of issues and preparations for the next European Council.
First of all, let me pay tribute to what Prime Minister Papandreou has achieved since taking office. He has grasped the mettle of economic reform in his country. He is delivering, not just committing.
The Commission stands fully behind the efforts of the Greek government. I am fully aware that these are tough times for Greek citizens, and we are doing everything possible to show our solidarity.
Greece is on track to deliver on its reform agenda. Significant progress has been made, particularly in reducing the fiscal deficit, on the reliability of statistics and key reforms on pensions and labour markets.
The economy should improve in 2011. Wage and price inflation is beginning to moderate, setting the stage for improvements in competitiveness and the current account balance.
The 2011 budget includes measures amounting to 5.75% of GDP, which should suffice to meet the deficit target.
Health spending, state-owned enterprises and tax administration reform are priority areas.
After a positive assessment of compliance with programme conditionality, I expect the Eurogroup to approve the release of the next tranche of the loan, of EUR 6.5 billion, on the 19th of January 2011, which will be on top of the IMF disbursement due at the end of December.
Obviously further efforts will be needed in 2012-2014. Therefore it is essential that Greece continues to show the same strong commitment that we have seen over recent months, both in terms of consolidating public finances and implementing key structural reforms.
I want to say a word of solidarity to the Greek people. I understand their indignation; I understand how difficult some of those measures are. But the situation in fact requires courage, bold reforms, so as to put the growth of Greece on a sustainable path.
These are indeed historic times for Greece and for the European Union as a whole. These are extremely difficult measures to take, by all governments in Europe. And I understand how difficult some of those measures are.
But the truth is that without this kind of measures there will not be a possibility for a structural, consolidated, sustainable growth in Greece, a country that we very, very much respect.
We keep our strong involvement in these developments. Commissioner Rehn and Commissioner Johannes Hahn will both be in Athens this week. Both will be looking to find the best way to support the efforts of the Greek authorities. We are there to help, here in Greece, to show our solidarity.
We also discussed the issues on the European agenda which we will not present now for reasons of time.
And I want also to pay tribute to the commitment and the support of Prime Minister Papandreou, indeed Greece’s support to Community matters, to the European institutions, to a truly European approach. We need that in Europe.
We need in Europe a strong commitment to our project. We need leadership at all levels, from the European institutions of course, but also from national governments. This is a project where all stakeholders have to show their commitment. This is a project of solidarity and responsibility.
And for that we need the continuous support of our national leaders – and I know that Prime Minister Papandreou is a committed European, and I have seen in the European Council the contributions he has made to these kinds of solidarity and responsibility.
We will have very important discussions in the future, and of course I hope to count on the support of Greece for this ambition for a stronger European Union, a European Union that will be based on those two principles I have mentioned, among others. But I think it’s important at this moment to highlight the idea of solidarity and the idea of responsibility.
G. A. PAPANDREOU: It is my pleasure to have the opportunity to meet and work closely with the President of the Commission, Jose Barroso, in a spirit of close collaboration and friendship and I thank him for his positive words as to the course of our country.
I consider what we have done with much pain and endeavour for the Greek people is first of all to the benefit of Greece itself but is also a spirit of solidarity for the broader stability in the Eurozone of the European Union.
Greece finds itself at a stage of major changes, of historic changes with difficult decisions but with a very strong volition, not only of the government but also of the Greek people to move out of the crisis and to create institutions, to create a viable and competitive economy, leading to a pioneering green and clean development, making use of the competitive advantage that Greece has along with the enormous potential, but based on its own strength and not on borrowed strength. This is a Greece that the Greeks truly deserve.
I would like to congratulate the President of the European Commission for his efforts undertaken to support this solidarity and European institutions, the union method which is so important for the cohesion and the course and future of the European Union.
At a time which is especially trying for our institutions, where the dedication of member-states and often of our citizens is being put to the test, with a certain amount of Euro-scepticism, the contribution of the Commission and its President is of tantamount importance for the future of this great endeavour, of the great venture called Europe, which is an issue of peace, of development, prosperity, and democracy for so many peoples and citizens of Europe.
We had an exchange of views on the European support and solidarity mechanism to be discussed in the European Council on the 16th and 17th of December. I stressed to President Barroso that Greece, like the majority of member-states in the Union is in favour of restricted changes to the Treaty.
A support mechanism which will contribute to further stability and a response to international developments and the markets, but will also enable those countries to make the necessary changes they need.
Various proposals from member-states have been submitted, as well as by the European Parliament. At times Greece too has also submitted some suggestions as to how the European Central Bank might play a more active role along with the issue of Euro-bonds.
Another issue discussed is the more rapid use of European funds, the absorption rate of European funds which will contribute to easing the present situation and the further development of the country.
We also addressed the relations of the European Union with Turkey, issues of our neighbouring country, our relations with Turkey, Fyrom, and the Cyprus issue, as well as the European prospect of the Balkans. I would also like to thank the Commission and President Barroso for the Action Plan which we have promoted with Frontex to deal with clandestine immigration. I have also assured him as to the fast track progress we are making in reforming our own asylum system, dealing with migratory flows and the more human stance towards the difficulties these people face, often victims of human traffickers, from one country to the other.
I stressed the very close, institutional, personal and constructive collaboration of Greece with the European Commission and European institutions. I reiterated that the European vision is still alive in our citizens, in Greece and at the level of individuals. With this prospect in mind I expressed to him my confidence in the European Commission and my personal esteem for his initiatives.
I would like to thank him once again and we will be working closely on the most important decision that Europe has to take in forthcoming weeks and months.
SPEAKER: Prime Minister, recently we have heard repeatedly that 2013 is the year we exit the memorandum, but international analysts and economists are saying more frequently that in 2013, not only will we not exit, but that there will be a new memorandum. Do you share these views?
For President Barroso, have you in the Commission discussed the issue of a further extension of Greece’s loan and under what conditions? Thank you.
G. A. PAPANDREOU: Whatever we are doing is with a view to exit the crisis, to have development which will be competitive and viable so that 2013 finds us out of the memorandum and supervision. These are our objectives and we are progressing well. This is a course, I repeat, that Greece has shown its volition and determination for.
In 2010 we have surpassed our objectives by reducing our deficit by 6% compared to the original target of 5.5%.
This is an indication of positive results, despite the various analyses. But there are also positive analyses for Greece, not only those that foresee disaster.
We have very positive analyses that shown that Greece is now on track. We must however keep a steady course. This is what our intentions are and this is the mandate from the Greek people and I am convinced that we will be successful.
MR. J.M. BARROSO: Regarding the loans, the Council decided on the 28th of November that maturities of loans to Ireland and Greece have to be aligned. It means that maturities of loans to Greece under the economic adjustment programme need to be extended. This was a crucial decision for the credibility of the programme. The technical details are now under study and should be finalised soon.
SPEAKER: Prime Minister, on many occasions you supported the idea of issuing Eurobonds as a response to the crisis. Commissioner, in your recent address to the European Parliament concerning the state of the Union, you underlined that Eurobonds could finance big infrastructure projects in Europe.
Do you both agree with Mr. Juncker and others that launching Eurobonds could give a clear message to the financial markets?
MR. J.M. BARROSO: There are two different issues. One thing is the project bonds for specific projects. Another thing is the general Eurobonds.
The idea of the Eurobonds is an old idea in the European Union. One of my prestigious predecessors, Jacques Delors made a proposal many years ago, but agreement was never reached. That is why before commenting on this last proposal we need, I would need to be surer about the political suitability of that idea, but it is certainly an interesting one.
As I have told you it is an idea proposed many years ago, even before the Euro existed.
Regarding project bonds, it’s a specific proposal I have made, and I believe it’s perfectly feasible. It is for some projects, namely cross-border projects, infrastructure projects, where with the European Investment Bank capital is raised for specific projects.
Even on this proposal I must stress there were unfortunately some initial reactions coming from some Capitals that – let’s put it diplomatically – were not enthusiastic. I hope that with the progress in discussions agreement might be reached.
But on the other matter, as we are still at a very sensitive stage regarding markets, I prefer not to make any further comment.
G. A. PAPANDREOU: First of all, let me say that on the proposal by the President of the Commission on the project-oriented bonds of course I am very much in favour. I believe that this is a way that we can leverage funds for big infrastructure projects, which are necessary in Europe for a number of reasons.
If we look at Central and Eastern Europe but also Southern Europe, there is a lack of infrastructure in many areas: transportation, the linkages that we need to really promote a unified Europe and make ourselves more competitive, be it transportation, broadband, or energy networks.
And this, secondly, would be very useful to complement growth, because on the one hand yes, we need to consolidate our fiscal situations at the national level, but we also need the types of projects that will give us growth and make us more competitive. So I would be in absolute agreement with José on this issue.
Now, of course on the other issue of bonds also being able to be used for Eurobonds for funding debt requirements when necessary, this is a proposal that we have also accepted. Greece has also been positive, and this of course is a Greek position. I know there are a number of countries that have accepted this or have proposed this, in different forms and manners.
I think that we need to seriously discuss this issue, to implement this in an organised and responsible way. And if there is an understanding and a consensus I would think that this would be an important step for a wider and more robust financial governance facility in the European Union.
(isria.com)
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Molto lungo, ma interessante ...
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