ΣΥΝΕΝΤΕΥΞΗ

ΤΟΥ ΠΡΩΘΥΠΟΥΡΓΟΥ κ. ΚΩΣΤΑ ΚΑΡΑΜΑΝΛΗ

 ΣΤΗΝ ΕΦΗΜΕΡΙΔΑ “HANDELSZEITUNG”

(ΔΗΜΟΣΙΟΓΡΑΦΟΣ KURT SPECK) 

 

 

 

– What is the impact of the financial crisis for the Greek economy?

 

The direct impact of the international financial crisis in Greece has been smaller than in other countries because Greek banks were not exposed to the so-called “toxic assets”. However, there have been knock-on effects due to the pressure created by the crisis on the European inter-bank market and the resulting inter-bank interest rate hikes. These pressures have had until now a relatively limited impact on the real economy, due mainly to the structural reforms implemented by the government since 2004. The rate of economic growth slowed to 3.1% in the third quarter of 2008, from 4.1% in the corresponding period of 2007, but still remained at quite a high level compared to other Eurozone countries. Unemployment has continued to decline, falling to 7.2% in the second quarter of the current year from 8.1% in the corresponding quarter of 2007. The pressure on the inter-bank market grew stronger with the onset of the second and more serious phase of the crisis last September. The “freeze” in interbank lending resulted in a major shortage of liquidity.

 

-The European Union (EU) is lowering its estimates for the GDB-growth of their member-contries in 2009. Is the greek economy falling into a recession?

 

The European Commission has indeed recently revised downward its forecasts for the EU economy. It is now projecting a growth rate of just 0.2% in the EU in 2009 and 0.1% in the Eurozone, whilst in several economies the growth rate is expected to be negative. For Greece however, a rate of 2.5% is projected, which is much higher than the average of the EU and the Eurozone.

 

– Does the government prepare programs to stimulate the economy?

 

In order to deal with the danger of the ‘credit squeeze’ that is threatening the Greek economy, we drew up a plan to enhance liquidity by the amount of € 28 billion, which has already been passed by the Greek Parliament, after first being approved by the European Commission. This plan provides for three alternative ways of boosting liquidity in the economy via credit institutions. First, the shoring up of the capital base of banks with an amount of up to € 5 billion through the State’s participation in their share capital. Second, the furnishing of State guarantees for loans taken out by Greek banks up to the amount of € 15 billion. Third, the issue of government bonds worth up to € 8 billion in order to boost the liquidity of banks. In addition to this liquidity injection plan, we are also working on measures to bolster the real economy, which include actions to facilitate growth as well as targeted income support measures in favour of less well-off citizens. One programme has already been announced which provides for State guarantees for bank loans to small and very small enterprises. We are also advancing development initiatives, through the activation of programmes under the National Strategic Reference Framework 2007-2013 (which are co-financed with Community resources), the implementation of the investment law – which provides strong incentives for private investment – as well as public works and Public Private Partnership projects. With the 2009 Budget, we are supporting the economy and those who are less well-off, while taking into consideration the two restrictions faced, namely, the rules of the Stability and Growth Pact and the burden of inherited high public debt.

 

– You have initiated a State-Fund to guarantee for credits, that greek banks are borrowing from the international capital-markets. What do you expct from this measurement?

 

The guarantee of loans offered to banks, up to the amount of € 15 billion, is provided by the State. The aim of this measure is to ensure that banks have the necessary liquidity to finance businesses and households at lower interest rates. Under the present circumstances, it is very difficult for banks to find capital and liquidity in the inter-bank market. We have estimated that this measure, in conjunction with the other two measures aimed at enhancing liquidity, will result in a credit expansion of at least 10% in 2009, which should be sufficient for meeting the needs of the economy.

 

-How do you rate the chance of a credit crunch and what would be the impact for the greek companies?

 

With the implementation of the plan to enhance liquidity in the economy, we are confident that we eliminate the danger of a “credit crunch”, which would have had a negative impact on the operation of businesses. If businesses are unable to secure adequate financing from the credit system, this would seriously restrict their growth potential.

 

– Greek tourism is linked to the development in the global world, and especially in Europe. What means the harsher economic climate for the summer season 2009?

 

There are dangers regarding the 2009 tourist period, since Greek tourism is affected by the economic situation in other European countries, many of which are sliding into recession. For this reason we are examining initiatives that will make our tourist industry more competitive.

 

With the new countries in the EU, less money is available for Greece. When does it have an influence for the funding of the economy?

 

The accession of the new EU members has indeed had an impact on the inflow of Community structural funds to the Greek economy. This however applies to the period after 2013, since for the current programming period 2007-2013 Greece has secured a sizeable support package in terms of Community resources. The National Strategic Reference Framework 2007-2013 envisages the inflow of over € 24 billion in Community funds to the Greek economy. By effectively utilizing the funds of NSRF 2007-2013, Greece will achieve further convergence with the European Union and will no longer be dependent on EU financing to the extent it is today.

 

– How are the bilateral relations between Greece and Switzerland?

 

“Relations between Greece and Switzerland are very good. There is a good degree, and an even greater potential, of understanding and cooperation between our two countries. Switzerland is also a member of the European Free Trade Association (EFTA) and a close partner of the EU, and this is an additional link with our country. There is, of course, room for further developing our political and economic relations, in particular trade, investment and tourism. When it comes to our bilateral trade-flows, there is a deficit for Greece. We believe there could be an improvement in this area, given that Greece produces quality Mediterranean goods that could have an appeal to the Swiss market. In the field of investment, Swiss companies have already a substantial presence in this country, and it would be beneficial to work in the direction of expanding our cooperation even more, given the strategic position of Greece in South-East Europe. As a tourist destination, we occupy already a substantial and growing part of the Swiss market, and we believe tourism presents opportunities for even closer cooperation between Greece and Switzerland. The importance of cultural ties cannot be underestimated, as they promote understanding between nations. In Switzerland, there is a long tradition and a keen interest in classical Greek studies, as well as in the study of Modern Greek language and literature. Again, the potential of cultural exchanges between our countries is significant; it is enhanced by the presence of some 11.000 Greeks living in Switzerland.”

 

What is the role, that Greece is playing and will foresee in the South-East-European area?

 

As the oldest EU and NATO member state in the South East European region, Greece has been trying, for decades now, to secure political stability in the broader area by sharing its experience and democratic values and to promote the principle of good neighbourly relations. Moreover, we have contributed to the enhancement of local economies through a very high rate of Greek investments in all the neighbouring countries, we have supported both politically and technically their European and Euro-atlantic perspective, provided, of course, that they fulfill the required criteria, and we have actively contributed to the establishment of regional cooperation and its institutional enhancement through concrete initiatives and actions, such as the Thessaloniki Agenda. Greece is a factor of stability in this part of Europe and intends to spare no effort in cooperating and assisting the countries of the region to achieve economic growth and sustainable development to the benefit of South East Europe and the European Continent as a whole.