PANOS
LIVADAS, GREEK SECRETARY GENERAL OF INFORMATION
Presents:
"The
new extroverted face of Greece"
Woodrow
Wilson International Center for Scholars - April 19, 2007
Good
morning Ladies and Gentlemen,
Let
me begin by expressing my delight in speaking before such a distinguished
audience! Mr. Sitilides, special thanks to you and all the staff at the
Woodrow Wilson Southeast Europe Project for having me. Everyone, thank you
indeed for coming.
While
in college here in the States (and, trust me, that was quite a few years
ago), I had the chance to take a step back and look anew at my country.
And although beauty certainly is in the eye of the beholder, I could see
what some found not always appealing about Greece. Of course, my country
is loved, and admired and respected for its remarkable ancient
civilization. This has been chronicled, after all, in a tremendous wealth
of books and even in the revival of Ancient Greek Drama in America. By the
same token, there is no doubt that every single person that visits Greece
is truly captivated by her landscape and natural beauties. Such positive
feelings, however, were often shadowed over, for three reasons.
First,
Greece was not considered a front-liner, in terms of economic performance.
Although she was growing steadily, there certainly were things to be done
on her part in order to ensure a brisker and more durable growth rate. In
order to build a more forward and outward-looking economy. Secondly,
Greece was perceived to often be confrontational in her neighbourhood. In
other words, not always seeing the big picture, and, therefore, not
contributing to the solution of various issues. Last but not least, there
were occasional
incidents of domestic terrorism.
But
like I said, that was quite a few years back. Today, ladies and gentlemen,
Greece is different. Greece has changed for the better. And although I am
the first to admit that there are things that need to be done and, trust
me, will be done, Greece now offers brand new reasons why to be respected.
And I think you will agree with me that this is not just in my eyes!
Let
me take a few minutes to explain. I will begin with everyone’s favorite:
the economy! To start with, Greeks
have implemented bold domestic
reforms to achieve both an
impressive economic performance and fiscal consolidation. To name just a
few:
the New Tax
Reform Act that simplifies the tax system and reduces corporate tax rates
the Investment
Incentives Act, with the approval of applications worth more than
$7bn so far
or the
Public-Private Partnerships Act that has approved projects amounting to
$3,3bn.
A
member of the Eurozone, the most exclusive group in the European Union,
Greece enjoyed a brisk GDP growth rate of 4,3% in 2006. She is expected to
almost match this rate in 2007. And this, my friends, is way more than
twice the average Eurozone growth rate.
Other
figures also speak loud and clear about the state of Greek economy today:
budget deficit down to 2,6%
of GDP from 7,8% in 2004
unemployment rate reduced
from 11,3% in early 2004 to 8,9% in 2006 (creating 250.000 new jobs, 80%
of which in the private sector!)
receding inflation rate, at
2,6%.
With
these macroeconomic
figures as the background, let me give you some specific examples of the
way Greece grows—capitalizing, in part, on the tangible and intangible
heritage of the Olympic Games. Tangible in terms of infrastructure,
know-how and specialized human capital; intangible in terms of
perceptions. What I mean here is that the
Athens Olympics were a major factor in enhancing the reputation of Greece
internationally. Despite widespread predictions of doom, Greece
demonstrated to a watching world that a small but proud country can rise
to difficult challenges and acquit itself with honor, a fact very much
appreciated by Greeks around the world. At the same time, Greece had the
chance to unveil comparative advantages of hers that were not widely
known. In the process, her partners came to perceive her anew as a
credible strategic player with great qualities and great potential. As a
country that enjoys a very
special status in a region that extends from the Balkans to the Black Sea
and the Caucasus.
So,
let me proceed with the examples I told you about. First, recent
developments have rendered Greece an energy hub, benefiting her economy
and her international status alike. Specifically, in an elaborate ceremony
in Athens in March 2007, Greece, Russia and Bulgaria signed the final deal
for the construction of the “Burgas-Alexandroupolis” oil pipeline, expected to transfer 35-50mn tons
of oil per year by 2012. In fact, it is the first oil pipeline
to be built in Europe after 40 years. Offering economies of scale and
complementing the Dardanelles, it will be a cost-efficient way for cheap
and fast oil to be transferred to Europe and the Americas, in an
environmentally-friendly way. At the same time, the Greek-Turkish gas pipeline under-completion, which has been agreed to
extend towards Italy, is also bound to reposition Greece on the world
energy map. Last,
my country played an
important role in the creation
of the European Energy Community (in October 2005) that establishes a single energy market in South-Eastern Europe and promotes cooperation and
solidarity.
Second,
Greece has maximized her
distinct advantage in shipping and the maritime industry, with great
economic results. With the Greek-owned fleet being the largest in the world and
more than 260 new ships currently being built, Greece
transfers an increasing number of commercial goods and oil globally. She,
thus, provides
an important strategic asset.
At the same time, she is turning herself into an important
distribution hub. In fact, the $4bn
Protocol with the European Investment Bank to upgrade our ports adds to
the list of promising developments that draw growing investment interest
from the Mediterranean, Middle East, and Asia.
Third,
Greece is a
credible financial and business center in her neighbourhood, holding the
position of the leading foreign investor in Albania and F.Y.R.O.M. and
ranking among the first three in Bulgaria, Romania, and Serbia. With more
than 3.600
Greek companies in the area and Greek investments exceeding so far
$16bn, she is the base for reaching out to a market of 160mn consumers, in
all of Southeastern Europe. At the same time, Greek exports in the area
rose by 10% in the period 2004-2005. It is only telling that, in Turkey
alone, there was an almost 25% increase in 2006 compared to the average
overall exports increase of 18% in the same year.
In
addition, her banking sector, which holds 16% of the region’s banking
market share, has invested
millions of euros to acquire and build networks in countries like Albania,
Bulgaria, or Romania. More
than
1000 branches now
operate
in
the
region,
while
the
National
Bank
of
Greece
is among the first five banks
in terms of activity in Southeastern Europe. At the same time, Greek
banks are progressively penetrating such promising markets as these of
Turkey and Egypt.
It
becomes clear that the solid performance of the Greek economy attracts our
partners’ attention. It is only indicative, for instance, that foreign
direct investment was eight times higher in 2006 compared to 2005! Most
importantly, however, Greece is a vivid example of how a country can
accomplish for her self at the same time that she is a positive influence
for others. Greece, ladies and gentlemen, is justifiably perceived as a
beacon of stability, progress and prosperity in her neighbourhood. She
enjoys, for that reason, great leverage and significant “soft power”
to promote the shared goals of the international community in the region:
economic development and integration to the Euro-Atlantic institutions.
And
this brings me right to Greek foreign policy, which is directly linked,
after all, to economic diplomacy. In that field too, it becomes apparent
that my country has, in some ways, “shifted gears”. Now thinking more
globally, we better contribute to the solution of problems in a spirit of
cooperation and with much increased credibility and regional influence.
Specifically, we are building networks of cooperation that foster mutual
trust as well as set the ground for the further
development of our region. For instance, the Greek
Plan for the Economic Reconstruction of the Balkans, a
5-year development aid
program, allocates $700mn from the national budget. At the same time, it
fosters economic development, supports the democratic institutions and the
rule of law and facilitates the European orientation of the Balkans.
Along the same lines, Greece plays a decisive role in the Black
Sea Economic Cooperation organization and actively supported both Bulgaria
and Romania’s accession to the E.U.. As to Turkey’s
European perspective,
we offer our full support provided, of course, that Turkey fully complies
with her European obligations.
The active Greek participation at the U.N. Security Council in 2005-2006,
the constructive way we handled the presidency of the European Union in
the first half of 2003 and our significant role in humanitarian missions
around the world all add to the reasons why Greece is now respected as a
reliable player on the international scene. As a strategic partner in
peace and progress.
Last, Greek authorities were successful in eradicating the deadly
November 17 terrorist group in the summer of 2002. The absolutely safe
Olympic Games, of course, came to confirm that Greece takes security
seriously and cooperates closely with other countries to that end. At the
same time, she doesn’t grudge putting in the money and the energy
necessary to guarantee that our country is as safe as she can be. The
world has once again, taken notice: tourism,
which represents around 18% of GDP and contributes almost $16bn a year to
government revenues, showed a 10% increase in 2006. With arrivals in 2005
being the highest ever, we now offer Greek hospitality to more than 16
million tourists annually! In fact, we count a growing number of friends
here in the States, too: the number of American tourists in the Athens
International Airport showed an almost 400% increase between 2005 and
2006.
Ladies
and gentlemen, every time I am abroad, and as Secretary General of
Information I do get to travel quite often, I do exactly what I used to do
as a college student: I take a step back and look anew at Greece. Today, I
see a different Greece, with great self-confidence, more optimism and much
faith in itself. And I am not the only one. The whole world now recognizes
a strategic partner with a strong economy, a strong vision, and a strong
mission in the world.
I
invite you all to rediscover Greece.
As American citizens of the
world who want to spread the word on Greece, either because you have roots
and family there or simply because you share our common humanitarian
values of peace, freedom and democracy.
As businessmen who want to
reach the broader region of Southeastern Europe.
As
tourists who want to enjoy high-quality services and be exposed to one of
the greatest ancient civilizations.
Ladies
and gentlemen, no matter which hat you choose to put on, Greece awaits you
all! Thank you for your attention.
