There are no enterprises without entrepreneurs, neither employees, without employers
EUROPE
Dear friends,
Europe, today, is at a very critical crossroad. The recession is threatening the standards of living for a number of EU Member – States, predominately, but not exclusively in the South.
The crisis has brought to the surface mistakes and omissions of previous policy makers, throughout Europe:
In the area of cohesion, where the surpluses of the North are, to a large extend, the deficits of the South.
Or in the area of macroeconomic data. Where more double checking on behalf of the European Commission has been prooved necessary.
Or in terms of having instruments like ESM, project bonds and bank recapitalisation and bank supervision mechanisms.
The positive aspect though is that for all those problematic areas are under negotiation or preparation. And in fact for issues like bank supervision and recapitalisation, national budget monitoring, etc the solutions are relatively close. Because all understand that if a ring of the Eurozone is attacked and the course to Euro is proved revocable, nothing could prevent the markets of attacking the next weak ring.
POLITICS
And now let me turn your attention to the internal political scene. The Coallition government, formed in June, under Antonis Samaras enjoys a significant majority in the parliament.
But I will not hide it. Sometimes, here and there, there are different views. Arising from the different ideological background of the three parties.
However, what we need to concentrate on is the historical convergence achieved. Since, we are all determined, at this critical period, to put the country above our political micro-interests.
In the Hellenic parliament a painful, I have to admit, fiscal adjustment package passed recently. Demonstrating political stability, despite thesevere recession.
And I believe the same will happen with the Bill for the budget of 2013. Which will be approved on Sunday.
ECONOMICS – WE HAVE ACHIEVED A LOT!
In the past months Greece and Greek people have achieved a lot. Despite the severe recession, since 2008, we have achieved the largest fiscal consolidation in OECD countries the last decades.
The general government deficit has beenreduced by 9% of GDP. And we expect in year 2013 a primary surpluss of 0.4% or €750m. Which will indicate beyond any doubt that a major turning point will have been passed.
Moreover, the image of Greece as a business destination is changing fast. It is not just myself the one who is telling that. The World Bank, in its recent Doing Business Report, improves the position of Greece significantly. From place 100 to place 78, in the overall Ranking. With very positive comments, recognising our economy as one of the 10 most improved globally in the rankings. Of course will not feel relaxed until this ranking is transformed into growth and jobs.
ECONOMICS – WE HAVE ACHIEVED THEM WITH PAIN
On the other hand we must admit that, these achievements are not without pain for the society. Cumulative cuts in nominal public sector wages account for as much as 37%. And in some cases exceed 52%. And yet there is the other major nightmare: unemployment. Which has reached unpreceeded levels, around the area of 25%. With the unemployment among the young ones, till the age of 25, to be as high as 54%.
In addition to the above, Greece is experiencing its fifth consecutive year of recession. With the overall contraction in the GDP to be of the order of 22%. A decrease that clearly fits a war and not a peace situation. A picture not previously seen in Greece since the Second World War.
The figures that I am mentioning are not just numbers. There are human beings behind them. And a society which has started exceeding its limits. Greek people are doing tremendous sacrifices and they deserve recognition and praise for their patience.
Due to those sacrifices and the hard effort we are putting, we are now able to work more balanced and in a more dynamic way. Our priorities can be grouped in 5 major areas:
Ι. FISCAL STABILITY
First priority, to achieve our goals, is fiscal stability.
Because neither investments, nor development can take place within an atmosphere of ambiguity of remaining or exiting the Eurozone.
Staying in euro was not a given in June, when we took office. Before the elections the stabilisation programme was out of track. We manage to change the picture and achieve the positive results I mentioned to you before. We manage to resolve the double credibility crisis, we had, both inside and outside Greece.
And I would like to assure you in the most explicit way: “Those investing today in Greece in euros, the valuation of their investment in 10 years time will be in euros again”
ΙΙ. LIQUIDITY
Our second priority is the much needed liquidity. From the €31.5bn tranche, that we expect, a significant part will be directed to settling debts with the private sector. And the greatest part in bank recapitalisation. To pave the way for the repatriation of Greek capital currently abroad. To allow banks inject liquidity into the real economy. To give loans to both enterprises and households. To boost economic activity.
But our efforts, concerning the liquidity issue, are not limited to the above. We have under way:
1. A special mechanism from the European Investment Fund for covering Greek importing businesses
2. The creation of a Hellenic Investment Fund, with the support of European funds
3. The exploitation of Hellenic Entrepreneurship & Development Fund (ΕΤΕΑΝ) for small- and medium-sized businesses
III. STRUCTURAL CHANGES
Our third priority refers to the continuation of structural changes. To modernise the Greek economy and make it more competitive.
1. Privatizations:Greeceimplementsamassiveprivatizationprogramme. Not only in ordertoraise budgetary revenues. Bust most importantly, in an attempt to encourage foreign direct investment and know – how transfer.Obstacles of the past like golden shares and state preferential rights are being abolished. To create an environment of legal certainty for future investors.
2. Market Liberalisation: A good indication of which are the recently introduced rules referring to the retail and distribution of goods and the supply of services. In addition to this daring initiatives resulting in the opening of closed professions and entiremarket sectors. Giving the enterprises and especially to small and medium ones the ability to successfully compete in today`s demanding global business environment.
3. Transformation of the Public Procurement system, in order to save costs and increase transparency. With the new tools developed to be also employed in the sector of Public Works. We aim the new provisions to be in place by the end of March 2013.
This program of reforms is going to be continued with the technical support of European and International organizations. Like the Task Force for Greece of the European Commission and the World Bank. To combine European and International best practices with the adaptability to local conditions and problems.
IV. ATTRACTING INVESTORS – NEW DRAFT LAW
Our forth priority, is to encourage more investments. To change the prevailing mentality, to lift all guilt from the concept of profit making. To transform Greece, as quickly as possible, from a redtapetoredcarpet country. From a country with certain bureaucratic barriers and obstacles to safe harbour for investments: Both domestic and foreign. We know that we need new investments and new jobs and we are determined to work faster towards that direction.
We are open to new ideas, we are open to innovative practices. And the purpose of my presence, here, with you today is to clearly underline this message: Which I will not tire from repeating: There are no enterprises without entrepreneurs, neither employees, without employers.
To this end:
1.We presented for public consultation a new draft law, which introduces a single licensing system and a single control point. To combat bureaucracy, we are activating at all stages the one-stop-shop ofInvest in Greece. To have only one agency involved from beginning to end. And to firmly emphasize what I mentioned before: the entrepreneur will not be left alone. There will be a team next to him solving problems and facilitating the completion of paperwork.
But even without the bill of law that I mentioned, in this area we already have some positive results. Recently, the Interministerial Committee for Strategic Investments decided to include in the fast track procedure the tourist investment of «ITANOS GAIA» in the area of Cavo Sidero in Lasithi. An investment of €267,7m. A clear indication that something has started changing.
2. To develop State`s private property we utilise a widely used tool in international practice. That of the Special Purpose Vehicle. A tool, which is going to be employed, first, in the development of the Attica Seafront Project. A project of major importance, assigned to our Ministry, under the auspice of the Prime Minister`s Office. A project which I am convinced it will greatly contribute to our efforts to reheat our economy.
V. CATALYSTS FOR GROWTH
1. National Exporting Strategy, since our trade deficit is the main reason for our country diving into the crisis. In an attempt to change the situation we developed a strategy based on three pillars:
A. Broadening the export base,
B. Promotion of exports in new emerging markets and networks
C. Simplification of procedures and reduction of the administrative burden.
[And I would like to bring your attention to this issue, since in Greece we have products of excellent quality coupled with a truly competitive price.]
2. Acceleration of the absorption of National Strategic Reference Frame (ΕΣΠΑ) funds: A major issue connected to the lack of liquidity. We are working hard on it. And in close collaboration with our EU partners. To avoid the loss of funds for the semi-complete projects of 2000-2006.
3. Restart of the 4 Motorways: the project consists of the motorways of Aegean, Central Greece, Olympian motorway and Ionian motorway. Our aim is to unblock projects able to create 30.000 jobs directly and 50-60.000 indirectly in Regional Greece.
4. We proceed to the execution of a series of major projects. To create jobs and promote development. Those projects are:
A. The extensions of Athens Metro
B. The extension of the Tram network to Piraeus
C. The ports of Igoumenitsa, Patras and Layrion
D. The completion of the Suburban Railway
E. The completion of new double track railway lines
And with final thoughts, allow me please Ladies & Gentlemen to summarize what I have said so far:
We, Greece, in the few recent months we have achieved a lot. We have achieved them with pain, social & economic. The road ahead is difficult. But we are determined to work hard. On the basis of the 5 priorities, I mentioned to you before. And we are convinced that we will finally succeed. With the efforts and the sacrifices of Greek people. And with the support of the international community.
Thank you.