International Media Newsletter, 16-Feb-2010
Trips to Brussels, Paris and India
Prime Minister George Papandreou visited Brussels this week for a European Summit meeting, where strong support for the Greek government’s moves to tackle the economic crisis was declared. Previously, Prime Minister Papandreou had visited French President Nicolas Sarkozy in Paris to discuss areas of Greek-French collaboration and European challenges faced by both nations. Before Paris, Papandreou made an important trip to India, where he addressed the Delhi Sustainable Development Summit and met the Indian Prime Minister, Dr. Manmohan Singh.
1) Brussels
The Greek PM attended the EU summit meeting in the Belgian capital on February 11th. Shortly beforehand, EU President Herman Van Rompuy announced that European leaders were in full support of Greece’s plans to tackle its debt problems. He said that Euro area member countries would take determined and co-ordinated action to ensure the stability of the currency, but also that Greece had not requested any financial support.
Apart from Mr Papandreou, German Chancellor Angela Merkel, French President Nicolas Sarkozy, Spanish PM José Luis Rodríguez Zapatero, European Central Bank President Jean-Claude Trichet and European Commission President José Manuel Barroso were involved in the discussions. Mr Van Rompuy said that Greece’s Stability and Growth Programme would be overseen by a three-member panel representing the European Council, the Commission and the ECB, with advice from the International Monetary Fund.
The Eurogroup council (finance ministers of Eurozone countries) would shortly put into action a plan to combat crises within the Eurozone, which would be applied to Greece if necessary. Ecofin (finance ministers of all 27 EU countries) would adopt conclusions about the Greek situation based on the Commission’s proposals and the additional measures which the Greek government had taken.
PM’s Statement
Mr Papandreou said that Greece’s difficult economic situation was the result of irresponsible policies before his government took office. The country had lost credibility before its European partners, but his administration was determined to win that back. The Stability and Growth Programme and the recent extra proposals demonstrated this determination, and anything else that was necessary would be done.
The aims were to reduce the deficit by 4% in 2010 and to promote economic development, at the same time protecting the underprivileged and families. After a hard struggle on the part of the government, Greece’s European partners had been persuaded that the Programme would be successfully implemented.
The Prime Minister added that the EU’s decision to ensure the currency’s stability sent a clear message to the markets, one which supported the Greek economy. Greece would respond by carrying out the necessary reforms to its institutions and systems.
Press Conference
Asked about the involvement of the International Monetary Fund, Mr Papandreou pointed out that he had asked for technical input some time ago, as the EU was not experienced in the details of financial crises. Working with the IMF could only be a good thing.
As to whether further financial measures would be necessary, the PM said that the government’s programme, which would lead to greater social justice and a fair redistribution of wealth, required the support of all Greeks. It was high time that tax and national insurance evasion was brought under control. If that happened, the current proposals would suffice.
Asked if German and French support for Greece was tied to the purchase of weapons systems from those countries, Mr Papandreou dismissed the idea, saying that such deals were inappropriate at a time when the public finances were being overhauled.
The PM was asked if Greece’s fall from grace in the eyes of the world had impacted on the country’s foreign policy. He replied that, while Greece would be in a better position internationally without the economic crisis, the government’s contacts with other countries and institutions were being maintained and in many cases improved.
2) Paris
The Prime Minister visited French President Nicolas Sarkozy on February10th. The two men confirmed the strong ties between their countries, and discussed areas of mutual interest such as the Mediterranean, the Balkans and Cyprus. They also considered Europe’s response to the financial crisis and to climate change. Mr Papandreou assured the President that the Greek government would be strict in the implementation of its economic stability and development plan, leading to the reduction of the budget deficit to 8.7% of GDP during 2010.
3) India
The Greek PM flew to New Delhi and met with Indian Prime Minister Manmohan Singh on February 4th. Mr Papandreou said afterwards that he and Mr Singh had agreed to work together to increase co-operation in areas such as tourism, hi-tech industries and environmentally friendly technology, the latter being of particular interest to India.
The Greek PM later addressed the Delhi Sustainable Development Summit 2010. He said there was an urgent need for a credible compliance verification system to ensure that greenhouse gas emission reductions were implemented. The green economy had to be brought into the politics and practices of people’s everyday lives, and global governance strengthened. More equitable financial institutions were necessary, as was the greater involvement of ordinary citizens.
During his trip, Mr Papandreou also met Rahul Gandhi, General Secretary of the ruling party Indian National Congress, and the party’s Chairperson Sonia Gandhi. The Greek Prime Minister invited Ms Gandhi to visit Greece, as he had Mr Singh.
Man in the News
The Financial Times profiled George Papandreou on February 12th, presenting his background in politics and international affairs as instrumental towards credibly tackling the current economic crisis. Writes Kerin Hope for the FT, “Fortunately for Greece, George Papandreou possesses some of the classic qualities needed to confront a crisis: a stubborn persistence and an ability to stay cool under pressure.”
‘Crisis in a Stoic Land’
Renowned Greek author Vassilis Vassilikos published an Op-Ed in the New York Times on February 13th, conjuring up memories of the country’s tumultuous past and noting the nation’s unwavering resolve in times of crisis. “The one thing I am certain of,” wrote Vassilikos, “is that my country will overcome the financial crisis with national pride and international dignity intact.”