Mr. President of the Committee of the Regions,
Mr. Governor,
Madam Commissioner,
Ladies and Gentlemen MPs and MEPs,
Mr. President of the European Investment Bank,
Dear Guests from the other member states of the European Union,
Members of the Committee of the Regions,
Representatives of European Regions and Cities,
I welcome you with great pleasure, on behalf of the Greek government and on behalf of the rotating Presidency of the Council of the European Union, which Greece holds this semester. I welcome you to Athens, to this so interesting European Summit of Regions and Cities.
As you know, we want the priorities of the Hellenic Presidency this semester to reflect and promote the real concerns and the real priorities of European societies, of European citizens. That is why our first priority is, of course, growth, job creation, the safeguarding of social cohesion, the confronting of the egregious problem of unemployment and the brutal rates of youth unemployment – which is at some 60% in Greece – the support of SMEs, the recovery of the European economy as a whole.
Naturally, this is of particular importance for countries in crisis, for countries that have borne the brunt of the repercussions of an outdated model of production and growth in Europe, like the countries of the South, the countries that are in support programmes. The most salient example of which is Greece, the real laboratory for testing the endurance of European institutions, for testing, in actuality, the ability of Europe to overcome the crisis definitively and draw up a new narrative for the future and the perspective of European integration.
So our first and obvious priority is growth and job creation, and this naturally concerns first and foremost the real economy, funding for businesses – mainly small, very small, and medium-sized enterprises – wherein lie the potential for jobs; jobs that employ the bulk of our country’s workforce and the workforces of all the European countries.
But without a strong financial sector, without the comprehensive recapitalization of Europe’s systemic banks, we cannot in reality utilize the tools provided by the European architecture, the Structural Funds, the Social Fund, the other funding tools, and the major tool represented here by Mr. Hoyer: the European Investment Bank.
Because the great problem being faced in Europe, the problem that is really hindering convergence – which, as Mr. Hoyer said earlier, is always the key objective – is the profound inequalities that we must stress and underscore so that we can overcome them for the Greek real economy and for the other peripheral European economies.
There are two major inequalities:
The first concerns the cost of money; the high interest rates on loans that hinder SMEs from making real use of resources and potentials, and thus from investment and job creation. And the second, equally important matter is the increased cost of energy that is plaguing us, burdening us in particular here in Greece, as an inequity that absolutely must be overcome if we want to function as a single market, if we really want there to be equal opportunities for growth, if we want to achieve true convergence within the European Union.
I say this because there is no doubt that the tools we hold in our hands – the Community Support Framework, the NSRF, now in the new programming period, the potential we have to utilize the institutional mechanism of the Regions in Greece as well, the regional business programmes – those coming to completion and those that will start in the new programming period – can really enable our country to recover, to regain its confidence, its optimism, its institutional equality within Europe, and to emerge from the state of indignity in which it finds itself. Because in reality we have had our dignity compromised throughout these years.
But in order for us to achieve this and in order for us to be able to utilize the resources of the EU funding tools and the potential of the European Investment Bank, certain fundamental conditions for the functioning of the real economy have be created. And the first condition is a stop to the unjust discussion centering on negative stereotypes of Greece: the Greece that, thanks to the sacrifices of its citizens, after 7 years of recession, with such high unemployment rates, with a fall in the standard of living, can show a tangible and unique achievement, which is the achievement of a primary surplus in its budget.
A primary surplus that enables us to say that we are now passing into a phase of fiscal equilibrium, and we can now speak seriously of the long-term sustainability of the Greek public debt, which is totally unique, in that the greater part of it is held by our institutional partners, and not by the international markets.
And its characteristics are such that they easily ensure its sustainability, as Klaus Regling, the head of the European Stability Mechanism and the primary authority on this matter, has stated, and with whom we had the opportunity to sign – three years ago, in Brussels – the loan in support of the Greek economy. A loan that will be repaid in full to all the member states, to the taxpaying citizens of the European Union, as the support programme for the Greek economy can be a win-win effort for everyone: for our partners and ourselves.
Suffice it to be realized that, here in Greece, things have been happening, the state of affairs has changed, so we have to talk in another manner; a manner more creative, more optimistic; a manner that truly respects the sacrifices of the Greek people and gives Greece the real potential to recover as a real economy. To recover through the means we are talking about – mainly through the potential for funding, through a combination of banking and non-banking resources that reduces the mean interest rate and enables the Greek private sector, on competitive terms and with the help of the state, to impart fresh impetus to the real economy and utilize the employment resources that exist here in Greece.
Because domestic resources for growth, as is the case throughout the world, throughout Europe, exist here, as well, in the land and the people. Our land, our sea, our islands, our natural wealth and the intellectual capital of our people are domestic resources for the recovery of the Greek economy, for a new production model that is competitive, realistic, post-industrial; domestic resources that capitalize on the country’s obvious and apparent comparative advantages deriving from geography, history, culture.
But we want some understanding of the new state of affairs that has taken shape, so that we can overcome these profound inequalities that are stymieing our efforts to cover lost ground; that is, to once again reach the level of growth that we have lost in recent years. We lost it necessarily, so that we could reorganize, as a country, on solid and healthy foundations.
Ladies and gentlemen, here in Greece we are preparing, in May – together with the European elections – to hold our local and regional elections. In Greece, on 18 and 25 May, the Greek European citizens will be called upon to make fundamental choices on everything above and below the national state.
They are being called upon to make critical choices for Greece within Europe and on the future of Europe, and critical choices on the role of the regions and cities within this new growth model, following the experience of the crisis.
And this really is a very interesting and alluring opportunity for us to talk about Europe – not just on the intergovernmental level, on which things are usually decided, but also on the level of regions and cities.
So it is of very great importance to us right now that we discuss the role of the regions and cities in this production model that we want and that is based in reality on obvious and existing conditions. Because for centuries now Europe has always pursued the matter of cities, which is now a matter of regions, which was always interwoven with the social issue.
And now, in Greece, we have to face a new social issue, new forms of poverty, exigent unemployment, so we have to talk again about growth and social cohesion. And, as Europe debated its social issue and the issue of cities – now regions, as well – in the mid-19th century, so now we must again debate these twin problems, which are the major entities of the regions and cities and the new social issue. That is, the search for the conditions for social cohesion on contemporary terms that, as such, reflect the contemporary and very great challenges for individuals and our society.
Provided we are seeking domestic resources, provided we are seeking genuine and healthy forces for growth, we will find them on the local and regional level. It is the regional forces that can shoulder this great challenge, and this is the most important aspect of the principle of subsidiarity.
Because this is how we can best consider the role of civil society, businesses and the private sector. Because the challenge is not just political. It does not concern just the political system, the state and the regional political institutions, like the regions and cities, but also civil society and the private sector.
To a very great degree, Europe is being tested as to its values and what it takes for granted. The citizens of Europe – Greek citizens, and mainly the young citizens of Europe – cannot accept the idea that Europe is a Europe of austerity policies, of unemployment, or of bureaucracy.
They want less bureaucracy and more policy. They want less talk and more practicable initiatives. The want a Europe that again shines brightly and focuses on its values: democracy, the rule of law, social cohesion, justice and solidarity. A Europe of innovation, of research, of major initiatives, of competitiveness on new, contemporary terms.
So the history of Europe and of the European elections – here in Greece, together with the regional and local elections – within an environment of crisis that can evolve into an environment of optimism and new opportunities, is an excellent springboard for this new narrative that we must impart to our peoples, to our citizens, and especially to our younger citizens, if we want to make them participants, once again, in the European idea. The idea of European integration.
With these thoughts, I welcome you again and wish you every success in the proceedings of your meeting.
March 8, 2014