12th Economist Government Roundtable:

Driving the global agenda through 2020

Brainstorming with World Leaders

for Political & Economic Prosperity

Ladies and gentlemen, esteemed guests, it is a great pleasure for me to welcome all of you here in Athens today. I think it is important that the hosts of this major conference have managed to bring together such high-level guests at the same table so that we can have a substantial and fruitful discussion on our region’s course towards the future, on security, on stability, and on the prospects for development in the Balkans.

I won’t hide the fact that I have a further reason for being happy today. I am happy because I am among friends – neighbours and friends; people with whom we are collaborating closely on the future of our countries and our region. We all speak essentially the same language.

Every time I’m asked to speak about the Balkans to an international audience, I always feel the need – before getting to the main subject of my speech – to debunk a stereotype that is widely subscribed to: that the Balkans is a region with deep-rooted disputes and hostilities that are constantly finding their way to the surface.

To debunk the notion that instability and conflict are in a sense intrinsic to our region. I’m sure that all of my colleagues here – without exception – have found themselves in the same difficult position.

We have to admit, of course, that the history of our region has often confirmed this stereotype. But all of us here today are also well aware of the other side of the coin; the side of our ever-closer cooperation for the achievement of common goals.

We are aware of the vast mutual gains that this cooperation can create. We know this because it is the reality that we have been experiencing in the Balkans in recent years. It is the reality that has been created by the ongoing approach of our region to European and Euro-Atlantic institutions.

Because this, my dear friends, is the future of our region. This is our objective. Some years from now, the whole region of the Balkans will be a stable and prosperous European neighbourhood. It is on this objective that the peoples of our region base their dreams of a future of security and growth.

And I am particularly proud because my country, Greece, has already contributed significantly to the achievement of this goal, providing substantial and tangible support for neighbouring countries on their path to Europe. And we are determined to continue to provide this support with the same dedication and persistence.

Ladies and gentlemen, it is worth remembering that this strategic choice on the part of Greece to support the European perspectives of all the countries in its neighbourhood was a choice neither obvious nor inevitable. When, in the early 1990s, historic events changed the world as we knew it and concurrently changed the map of our neighbourhood, Greece found itself at a historical crossroads, faced with an historical challenge.

It was the crossroads leading to entrenchment and isolation, in one direction, and opening up to our neighbours – and supporting them in their transition – in the other.

We chose not to take the first, easy road. We looked beyond what appeared to be our short-term interests. We had the vision and reflexes to see that this was in essence a short-sighted policy – a policy that would be detrimental to our country.

We chose to invest in stability rather than turmoil; to invest in the development of the whole region and promote it with all our power. We realised that only in an environment of stability and ongoing progress could we safeguard the security and ongoing development of our country as well.

We opened up to our neighbours, both politically and economically. We extended a hand of friendship. And you can be sure that this policy was a risky one for us. But there were Greek politicians and entrepreneurs who were prepared to take those risks.

Ladies and gentlemen, today we are pleased that our strategic choice is being vindicated. The European perspective has functioned and continues to function as the strongest catalyst for the course of our neighbours – all of the states on our neighbourhoods course toward Europe; towards stability and progress.

The Balkan states have made substantial strides towards the European and Euro-Atlantic family. The positive examples – Balkan ‘success stories’ in Europe – show the way to the rest of the states in the region.

One of these is Slovenia, which currently holds the EU Presidency. Many have already forgotten that this country acceded to the Union as recently as 2004. In 2007, we welcomed Romania and Bulgaria to the Union. Greece fervently supported their efforts through trilateral cooperation leading to achievement of the goal of accession.

With their accession, Greece obtained land borders with the rest of the European Union, and this opened up major development prospects for us. The accession of Romania and Bulgaria sent a very strong, positive message to the rest of the states in the region. The message that the countries that are truly ready must accede to, and in the end accede to, the European family.

Today, we are cooperating closely with Bulgaria and Romania on a number of issues – not just as neighbours, but also as partners. These are not exclusively European issues, but concern Europe’s policy on issues of our neighbourhood.

Turning now to the rest of the states in the region, we can see that Croatia has covered a significant part of its journey and is now a very capable candidate for accession to the EU. The invitation it received last week to join NATO confirms that it is progressing steadily towards its European and Euro-Atlantic future.

Greece supported this invitation with particular enthusiasm because we acknowledge that Croatia has made significant and substantial efforts to push ahead with the necessary reforms.

To Greece’s great satisfaction, Albania also received an invitation to join NATO at the same Summit, in Bucharest. And Albania has already signed a Stabilisation and Association Agreement with the EU.

I recently had the opportunity to visit Albania and to reiterate to my friend and colleague Mr. Basha, who is here with us today, my country’s firm support for Albania’s European perspective. We also had the opportunity to reaffirm the very good level of the political and economic relations between our two countries, as well as to look at the great potential that exists for further development of these relations.

I would like to take this opportunity to repeat that Greece is counting on Albania’s collaboration in strengthening the stability and development of our wider region.

Montenegro has also signed a Stabilisation and Association Agreement with the EU, while Bosnia-Herzegovina has initialled one, giving new momentum to its European perspective.

Particularly in this latter case, despite the fact that the recent political crisis appears to have been overcome, it is clear that certain improvements are needed concerning the rationalisation of the decision-making process so that certain sensitivities on the ground can be taken into account.

But it is also true that over 12 years after the Dayton agreements, Bosnia-Herzegovina’s progress has refuted the Cassandras, and it is very important that the citizens of Bosnia-Herzegovina – regardless of faith or ethnic origins – look forward to a European and Euro-Atlantic future for their country.

The people of Serbia are looking forward to the same European future with hope and optimism. Greece will never stop spearheading the efforts for there to be full and substantial relations between the European Union and Serbia. Our country has a profound belief in Serbia’s decisive role in ensuring the stability of the whole region.

This is why we so strongly support the signing of a Stabilisation and Association Agreementwith Serbia – an Agreement that has already been initialled. We believe that in this way Europe will send a clear message to the Serbian people: that their future lies in our family.

Dear friends, unfortunately all of us here in the region have lived through authoritarian regimes. That is why we know so well that a people cannot be ‘marked’ indefinitely for the mistakes or crimes of an authoritarian regime of which this people was the main victim.

I honestly believe that our friends from Serbia will confirm their willingness to build a European future of democracy and growth in the upcoming elections, taking another firm step towards the European family.

I think that in view of all the above, it goes without saying that Greece will welcome its neighbouring country, the Former Yugoslav Republic of Macedonia, to the Euro-Atlantic family as soon as a mutually acceptable solution on the name issue is found. This was besides the allied position adopted last week in Bucharest by NATO member states.

The message we are sending is crystal clear. We want to continue immediately with the same dedication, the same persistence, within the framework of the United Nations, in order to reach a solution as soon as possible on the basis of a substantially compound name with a geographical qualifier, which will be valid for everyone;

A comprehensive, viable, functional solution, a solution without winners or losers, a mutually acceptable solution which will allow us to build a future of friendship and cooperation with our neighbouring state by developing allied and close partner ties.

Dear friends, it is precisely firm and viable solutions on the issues that are still pending, which are necessary for the region’s stability, growth, as well as for its European perspective.

Greece supported such a solution from the outset for the Kosovo issue as well. Kosovo is an important challenge today, not just for us – the region’s states – and the region’s stability, but also for Europe itself.

Today, Kosovo faces a series of pressing problems apart from the international recognition or non-recognition of its unilateral declaration of independence; as you know, Greece never liked unilateral declarations.

2.5 million people live currently in Kosovo; these people are entitled to have access to elementary goods, electricity, water, healthcare, jobs, prospects for growth and prosperity.

There is no doubt that Europe must play a leading role in Kosovo today and tomorrow, because it is Europe’s values and principles that provide safeguards for the region’s stability.

Europe is the one that can and must guarantee that Kosovo will be a democratic, multiethnic, multicultural state, which will safeguard the rights and freedoms of all its citizens.

Europe can also create the necessary prospects for Kosovo’s development, so that the region’s people will look forward to a future of prosperity and progress.

This is why we believe we should all guarantee and ensure the effectiveness of the Civilian ESDP Mission, which should be dispatched as soon as possible within the framework of UN Security Council Resolution 1244.

I believe that this development will allow Europe to play a balancing and constructive role in the region, to everyone’s benefit. Here, I would like to add something that is not in the text of my speech.

Ladies and Gentlemen, what was the substantial option we had on the Kosovo issue with regard to this European force? We basically had two options: Opting for an institutionalized Europe, within which all its member states make joint decisions. The second option was the choice of the willing, that is, countries taking the initiative to be present in Kosovo, outside of any institutionalized European position.

Greece prefers, and has opted for, the institutionalized presence in Kosovo; rather than a collision/coalition of the willing, as some others might think.

In the final analysis, ladies and gentlemen, the true solution on the Kosovo issue will only emerge once Serbia and the whole region become part of the European Union in future; it is only then that we will be able to say we have substantially overcome the hurdle before us today.

Ladies and Gentlemen, the strategic choice to support our neighbourhood’s European perspective is not a flag of convenience for Greece. We have substantially and tangibly supported it. It was under Greece’s Presidency in 2003 that the European Union adopted the Thessaloniki agenda, which determines the process for bringing Western Balkan countries closer to the European Union to this day .

Last November, Greece took a new initiative to bring the Western Balkans once again to the European fore. We put forward a five-point proposal in order to breathe new life to these countries’ European perspective, and give their peoples and their governments the enthusiasm and the will to proceed even faster.

But Greece is also of the view that economic growth is concurrently a valuable and necessary tool for political stability. This is why our country places particular emphasis on promoting our neighbouring countries’ development.

One of the ways to achieve this is by allocating significant public funds to the implementation of major infrastructure projects and to the provision of development aid. A second equally important means is to strengthen economic cooperation with, and Greek production investments in, our neighbouring countries and in the region.

The Hellenic Plan for the Economic Reconstruction of the Balkans is our country’s effort to incorporate individual and fragmentary development aid initiatives in a single plan, by promoting a comprehensive development policy aimed at Southeast Europe’s political, economic and social stability.

Through HiPERB, major infrastructure projects are being implemented and private initiatives are being strengthened in Albania, Bosnia-Herzegovina, Bulgaria, Montenegro, FYROM, Romania, and Serbia.

These actions and projects contribute substantially to the modernization of infrastructure, the promotion of production investments, the consolidation of democratic institutions and the rule of law, the strengthening of the welfare state, and the reduction of social inequalities.

The total sum to be allocated until 2011 within the framework of HiPERB is estimated at €550 million, whereas total commitments to this day have already exceeded 50% of its budget. Along with development aid, the dynamic presence of Greek business capitals in our neighbouring countries also contributes substantially to their development and stability.

I really want to stress the significant role played by pioneering Greek businesses which, at first, took important business risks to open up their activities to our neighbouring countries many years ago, paving new ways for cooperation between our countries.

Today, Greek investments in Southeast European countries exceed $20 billion, and more than 3,500 Greek businesses have created more than 200,000 jobs in the region.

Greece is the top foreign investor in Albania, FYROM, and Serbia. It is the second foreign investor in Romania and Bulgaria. In the banking sector, there are 2,000 branches of Greek banks across Southeast Europe.

I believe that our dynamic economic presence in the region renders us a true locomotive for development and progress for the region’s course towards Europe.

Ladies and Gentlemen, dear friends, it is an honour to represent a country that is the oldest member of the European Union and NATO in the region. It is also my pleasure to represent a country that has made the historic choice to share this advantage with all its neighbours; to firmly and unequivocally support the European perspective of the entire region.

We, the peoples of the Balkans, have been through many difficult times. But we are forging relations of friendship and cooperation over the past few years, with the common goal to see this part of the world become a peaceful rapidly-developing European neighbourhood.

This is the goal that unites us. This is the goal towards which we will continue to work, because it is the strongest guarantee for a future of security, stability and prosperity for our peoples.

Thank you very much.