ΣΥΝΕΝΤΕΥΞΗ ΠΡΩΘΥΠΟΥΡΓΟΥ – ΚΙΝΑ (XINHUA)
13.1.2006
- QUESTION: Your government has done a lot last year to simplify the procedures for foreign investment, but the outflow of foreign investment was still going on. According to the National Bank of Greece, the outflow is 1 percent in first quarter and the third quarter of 2005, 4.5 percent in the second quarter, what do you think the investment environment? What do you want to say to Chinese investors?
ANSWER: Since March 2004, Greece has entered into a new era. An era of macroeconomic stability, a competitive tax regime, more flexibility in labour, capital and product markets, more investment in education and training, more balanced growth. An era characterized by a stable environment – an environment that provides considerable business opportunities in the energy sector, in real estate, in trade, in tourism and in the service industry.
One of Greece’s main comparative advantages is its position at the heart of the fast developing region of Southeast Europe. Greece constitutes the gateway to a market of more than 160 million people. As a member of the European Union and the Eurozone, Greece can offer the most advanced social, political and economic infrastructure in the region and maintains a remarkable growth rate of 3.6% – more than double the average EU rate. Therefore, many multinational corporations have chosen our country to set up their headquarters for their operations in Southeast Europe and the Middle East. At the same time, Greece is the leading foreign investor in the region and, in less than ten years, Greek Foreign Direct Investment in Southeast Europe has exceeded the 10 billion dollars mark.
At the same time, the Greek government has brought forward reforms aiming to lead the economy into a virtuous path. While implementing a policy of gradual fiscal adjustment – in order to contain budget deficits and secure long-term fiscal stability – we have initiated various structural reforms such as:
- The Tax Reform Law which introduced major cuts on corporate taxes (from 35% to 25%) that aim to spur private investment,
- The New Investment Incentives Law that offers generous subsidies to private investment projects,
- The new framework for Public-Private Partnerships which lays the foundations for the active development of state-owned real estate and offers a wide range of investment opportunities,
- An ambitious privatizations agenda.
Overall, we have been eliminating the various barriers that discourage private investment by reducing bureaucracy. In a nutshell, despite high oil prices, sub-par economic performance in the Eurozone and the fiscal consolidation process underway, the Greek economy is growing remarkably. We implement policies that encourage entrepreneurship, promote the international orientation of the Greek economy and help improve our country’s international competitiveness. We are establishing a flexible and efficient market that looks forward and outward and welcome investors from all around the world and China in particular.
- QUESTION: Although there is no concrete figure about the cost of Athens 2004 Olympic Game, Alternate Cultural Minister Petralia has announced that the Olympic cost may exceed 13 billion euros. Many experts and even high officials believe that Olympic debts will leave for generations to come. As we have noticed that Athens has benefited a lot from the Games, IOC President Jacque Rogge said last year that it’ s up to Greeks to judge whether the Olympic Games is worthy or not. What’s your comment on the historic price tag for the Athens Olympic Games?
ANSWER: Indeed, it is widely accepted that the Olympic Games of Athens were among the most successful Games in history, as they were also the most costly Games in history. However, one has to bear in mind that these Games took place in an utterly secure and safe environment; and there was a high price to pay for. Within the cost of the Games, mentioned by the Alternate Minister in charge of the Olympic Games, Mrs. Palli-Petralia, we have estimated the cost of the infrastructure, the athletic venues, the state-of the-art equipment, the security and all necessary services. Of course, this does not change the fact that the cost is extremely elevated for a small country like Greece, the economy of which is likely to be affected for many years to come. The particularity of this unique investment is that it is made all at once and within a limited amount of time, while its return is measured in the long run, and is not limited to financial gains. That is, the reshaping of urban areas, improvements in infrastructure and services, the publicity gained, the increase in the number of visiting tourists, new investments, the improvement of the environment and in quality of life, are some of the parameters that, when added up, render our investment worthwhile. Of course, in the case of Greece, history is an important parameter, since Greece is the birthplace of the Olympic Games, and the place where the modern Olympic Games were revived in 1896.
- QUESTION: You have promised that Greek citizens will not pay a cent for the maintenance of the stadiums after the games, but there is no stadium commercialized so far. How do you make the ends meet for the stadium? What’s your plan for the future of the costly stadiums? It’ s a longstanding problem for all the host countries, what’s your suggestion for China?
ANSWER: With regard to capitalizing on our Olympic Legacy, we have followed a specific plan, based on transparent procedures, aiming for the greatest possible gain for our society. We have formulated a business strategy that we have passed into a law. Based on this strategy, we announced international tenders that are currently underway, through which the venues will be leased to private companies for commercial and other uses. Consequently, on the one hand there will be returns that will finance their maintenance, and on the other hand, these uses will provide opportunities for the economic and environmental development of the regions surrounding the venues. Five of these tenders are in their final phase. In the meantime, the venues are being used for temporary athletic events, cultural events, exhibits and other events so as to cover their maintenance costs. In the case of China, I would suggest that China, at this time, formulate a business plan for post-Olympic utilization, so that the plan can be implemented the day after the Olympic Games closing ceremony.
- QUESTION: The successive hosting of Olympics by Greece and China has greatly promoted the bilateral ties. Greece will definitely help China to make the Olympics successful. Which fields, as far as you are concerned, will Greece provide know-how to China?
ANSWER: Indeed, the fact that China is succeeding Greece in organizing the next Summer Olympic Games, has greatly upgraded our countries’ bilateral ties. It has brought to the forefront our two countries’ parallel historical courses and their great contributions to world culture. Moreover, it has increased the quality of our bilateral relations, especially our cooperation in areas of mutual interest. Of course Greece is ready to offer her expertise and know-how whenever this is asked for.
May I remind you that two Chinese Olympic delegations have already visited Greece and the Alternate Minister for Culture and Athletics, Ms Petralia, has already visited China twice and has signed a relevant memorandum of cooperation with the Chinese government. I would like to assure you that Greece will assist in every possible way the effort of the Chinese government so that the Games of Beijing will be outstanding in all aspects, and a true reflection of the long history and rich culture of China, as well as its current status as a world political and economic power.
- QUESTION: What’s your comment on the development of bilateral relations?
ANSWER: I believe Greece and China have expressed their political will and commitment to further promote and advance the level of bilateral relations. This could be achieved through, the political dialogue, bilateral meetings at all levels and exchanges. There is no doubt that especially nowadays, in the framework of the current international situation, both sides should intensify their efforts and co-operation in order to bring peoples of different civilizations closer and thus to contribute to international peace and security. The Comprehensive Strategic Partnership, which is going to be concluded during my imminent visit to China, is a milestone in our bilateral relations, setting the framework for an enhanced future co-operation.
- QUESTION: What are your expectations from your first official visit to China as a prime minister?
ANSWER: I am looking forward to promoting and enhancing our bilateral relations in the political, economic and cultural field. Especially, as far as economic relations are concerned, I believe there is great potential for the development, among others, of the areas of commerce, merchant marine and tourism.
As a matter of fact there are many opportunities and new possibilities for further promoting our commercial cooperation. Greece disposes well known agricultural products of high quality and nutritional value. Products that are synonyms to well being , such as the globally known Greek olive oil. We are rather proud about the particular merits of our olive oil and we are interested in advancing exports to such challenging markets as that of China. Merchant marine is playing an important role in the economy of both countries and we are keen to advance co-operation between Greek and Chinese ports and maritime companies in order to advance transport of goods as well as establish certain ports as transit centres to neighbouring countries and regions. Greece and China are also willing to strengthen tourism co-operation.
Today Greece suggests with self confidence a new tourist proposal. She suggests a new tourist dogma with contains all the forms of alternative tourism, emerges as a unique tourist destination during the twelve months of the year, is differentiated with its quality over the important tourist markets and contributes to the economic growth on the base of the viability of the natural and cultural environment. The pillars policy are the development, the civilization and the environmental. The are notions firmly bounded under the principles of the sustainable development. The establishment of a direct air link between Beijing and Athens could greatly contribute in this direction