International Media Newsletter, 22-Feb-2010

Greek PM George Papandreou flew to Moscow, where he met President Dmitry Medvedev and Prime Minister Vladimir Putin. He later went to London to meet Prime Minister Gordon Brown and Foreign Secretary David Miliband, also taking part in a conference with fellow prime ministers.

London

Mr Papandreou met British Prime Minister Gordon Brown for a working lunch at 10 Downing Street on February 19th. Speaking to journalists afterwards, the Greek PM said that the economic crisis affected all countries – even though currency speculators with no interest in Greece’s economic future had recently been targeting the country. Greek citizens were determined to combat the crisis and their resolve should be supported.

Answering questions from journalists, the PM admitted that Greece’s economic problems were serious, but that they had been misrepresented by the media and others. The government had been striving to present a correct picture of the situation.

To the question ‘Did the British government suggest that Greece applied to the International Monetary Fund for aid?’, Mr Papandreou replied that no such advice had been given. Only if Greece had not been in the Eurozone would the IMF be the solution to its difficulties.

Asked why interest rates (‘spreads’) in Greek government bonds had failed to come down despite political support from EU leaders, the PM said that, in their drive for profit, speculators were testing the resolve of both Europe and Greece. The EU was working on measures to reduce such speculation, but time would be needed for them to come into effect.

After Downing Street, Mr Papandreou met British Foreign Secretary David Miliband to consider issues of mutual interest. Speaking afterwards, the Greek PM said that, although Afghanistan had been discussed, there had been no request for Greek involvement on the ground. As regards Cyprus, the PM said that the Turkish-Cypriot side needed to show more commitment to finding a solution, while his government fully supported the efforts of Greek-Cypriot President Dimitris Christofias.

When he was in London, Mr Papandreou also attended the Conference on Progressive Governance. He took part in a panel entitled ‘Europe after the global crisis: a strategic role for government’, along with British Prime Minister Gordon Brown, Spanish PM José Luis Rodríguez Zapatero and Norwegian PM Jens Stoltenberg.

The Greek PM also gave an interview to the BBC. Speaking to Andrew Marr, he said that Greece needed political rather than economic support from Europe in order to reduce public debt. With that support and in time, Greeks would show that they could fulfil their promises and regain the trust of the international community. No further loans were necessary until mid-March, but Greece required support so that borrowing at reasonable rates of interest could be arranged then.

His government had a high approval rating at home, even though the austerity measures that it was applying were stringent – the unity of the Greek people had only reached such a high level during the Olympic Games of 2004. The government was in close contact with EU authorities, including the European Central Bank, to ensure the success of the Stability and Growth Programme. So far, things were going well, with January’s statistics showing that targets had been achieved and even, in some cases, surpassed – this meant that the planned 4% reduction in the budget deficit for 2010 was on the cards.

In an interview with the German newspaper Der Spiegel, the PM said that his aim was to change Greece from an example of bad governance to a prototype of transparency. This meant recasting institutions and re-educating citizens so that tax evasion and endemic corruption were eradicated. He was ready to do whatever was necessary to bring the country out of economic crisis, including legislating for additional measures if they should become necessary. There was no question of Greece leaving the Eurozone – that was infeasible and would be disastrous for the common currency.

Moscow

Mr Papandreou flew to Moscow on February 15th. He met Russian President Dmitry Medvedev and Prime Minister Vladimir Putin to discuss political, economic, trade and energy issues. With Mr Putin, the Greek PM signed an agreement for further collaboration between his country and Russia between 2012 and 2014. They also discussed the Burgas-Alexandroupolis oil pipeline and the South Stream natural gas project.

Mr Papandreou praised the excellent relations between the two countries and hoped for even greater cooperation in the fields of tourism, agriculture and transportation. For his part, Mr Putin said that Greece had the potential to become a major energy and transport hub for Europe. He also stated that bilateral ties would help both Greece and Russia overcome their economic difficulties.

Mr Papandreou also gave an interview to CNN from Moscow