Athens , 22 February 2010

Journalist: Will the Greek government be able to implement the austerity measures demanded by the EU by mid-March? Is your government prepared for closer EU scrutiny?

Mr. Droutsas: Our new government is fighting hard to combat the crisis.  We have redrafted the national tax law, casting a much wider tax net and closing the many tax loopholes that have led to millions in lost revenues each year.  By cracking down on the use of tax havens and higher income brackets, we aim to put most of the new tax burden on those with means while providing support to those in greatest need. We have also controlled runaway public sector outlays by freezing wages and reducing government bonuses.

Under the EU monitoring measures in place, our first report is due in mid-March, but I think that positive results will be apparent even earlier on. It is our intention to continue to work closely with the organs of the EU.

Journalist: Will you proceed to cuts in sensitive areas of the budget, like defence spending and health spending?

Mr. Droutsas: We are looking to curb spending in these sectors too, as well as in other sectors. In the Health sector, specifically, we see great potential for further cutbacks. Our goal is to make the system more transparent. But in order for our efforts to be judged fairly, we need some time for the results to become visible. Remember that our government took office just over 100 days ago. We want to proceed to immediate and specific cutbacks of government spending, increasing the revenues of the public budget, and at the same time we want to combine long-term structural changes that will put our house in order. For example, in Greece at this time we have a five-tier government system, which means more personnel and – something I don’t want to avoid mentioning – more opportunities for corruption. Shortly, a bill will be brought before Parliament that reduces the five levels to three, automatically reducing spending and opportunities for corruption.

Journalist: Do you really want to limit the Civil Service, putting people on the street?

Mr. Droutsas: We’re not talking about firing people. Limiting the public sector will be achieved through hiring policy: for every five civil servants who retire or leave, only one new employee will be hired. A ratio of 5:1.

Journalist: How do you want to achieve social peace in times when drastic cuts in public spending are needed? How far are Greeks prepared to go in cuts?

Mr. Droutsas: The Greek people recognise that things need to change fundamentally. The course we were on over the past five years – under the previous government (center-right New Democracy, which is now in the opposition) – led us to a dead end, and now we must make swift and drastic reforms to correct it.  

In addition to the measures I mentioned earlier – a 1:5 ratio of public sector replacement, where only one new position opens for five government employees that leave the workforce – we have adjusted the retirement age to levels more consistent with European standards and our increasing life expectancy rate.

Even though these measures call for sacrifices on everybody’s part, we continue to have high approval ratings in the polls and the support of the majority of the Greek people (according to the polls, the austerity measures are support by 2/3 of Greeks).

Journalist: Tourism is a significant part of Greek economy. What could Czech tourist expect in this season connected with anti-crisis measures? Are there going to be any governmental programmes supporting tourism?

Mr. Droutsas: Tourism accounts for a very significant portion of our GDP and will obviously play a key role in helping us out of the current crisis.

So the Czech tourist can expect to enjoy Greece’s high-quality, environmentally friendly tourism products. Visiting our many historic sites and national conservation parks. Staying at luxury resorts with very competitive prices. The trend towards more competitive prices that we saw last season will be continued this year, only more markedly.

Greece is a beautiful country, and the Greeks are ready to offer their Czech friends a warm welcome.

Journalist: Due to the economic crisis internationally, Greece is now in a very fragile position. How does this stance affects the traditional aims of Greek foreign policy: for example, are you prepared to make concessions on the question of the name of FYROM?

Mr. Droutsas: Greek foreign policy is founded on firm positions supported by a broad political spectrum. What this new government is doing is pursuing Greece’s traditional foreign policy aims by implementing an initiative-based approach to our international relations.

One such initiative is “Agenda 2014”, which is designed to reinvigorate the European perspectives of all of our Western Balkan neighbours – including the Former Yugoslav Republic of Macedonia – so that we can welcome all of our Balkan neighbours into the European family by 2014.

We have gone half way to meet FYROM on the name issue, and we are waiting for the leadership in Skopje to reciprocate; to match the constructive spirit that we have consistently brought to the negotiating table at the UN. We have said that we are seeking a mutually acceptable solution that will be seen by both sides as a victory. A name with a geographical qualifier, for use in relation to everyone. It is now up to FYROM to show a similar will to resolve this issue.

Journalist: In the current situation, are you able to draw support among EU members for your cause concerning Cyprus and Turkey? Could we expect any progress on this issue?

Mr. Droutsas: Greek foreign policy is based first and foremost on international law. As such, the support of our EU partners on these issues is a given.

We support the negotiations currently underway between the President of the Republic of Cyprus, Mr. Christofias, and the Turkish Cypriot leader, Mr. Talat. And we hope for progress. The two communities have to be allowed to reach a solution together – a Cypriot solution – without artificial impasses or external pressures. Because an imposed solution, as we have often seen, is not really a solution at all. It is a recipe for disaster. Turkey has a key role to play in this: It needs to let the two sides negotiate freely. Greece has consistently stated and shown that it firmly supports Turkey’s EU accession course. But the bar cannot be lowered for any candidate country. Thus, Turkey will have to meet its obligations to the EU if it wants its accession course to move ahead. In other words, Turkey’s European future is in its own hands.