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The new Greek
cabinet convenes in Athens on Wednesday, September
19th 2007 to be sworn into office by President
Karolos Papoulias
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Stepping
up the pace of change
Awarded
a second term by Greek voters, the government has
pledged to push ahead with further social and economic
reforms as it seeks to boost growth, employment and
prosperity
With his New Democracy party
reelected in September for a second term, Prime Minister
Costas Karamanlis has been given the opportunity to
press ahead with the social and economic reforms needed
to build a prosperous future. “The Greek people
have chosen their course,” he says. “They
have given us a clear mandate to continue with reforms,
whilst at the same time calling for us to up the pace.”
Solid foundations were laid
during the centre-right administration’s first
term and the income gap between Greece and other EU
economies is gradually narrowing. Greece now ranks
among the EU member-states enjoying the highest rate
of economic growth. Some 200,000 new jobs have been
created and unemployment has fallen to its lowest
for a decade. Inward investment is at its highest-ever
level. Meanwhile, state finances have been put back
on track and the budget deficit is within the EU threshold
of 3 per cent of GDP.
Having used its first term
to tackle problems that were threatening to destabilise
the economy, New Democracy needs to dedicate its second
term to building on the progress that has been made.
Further reforms are already being introduced to improve
the investment climate and ensure continued high rates
of growth. At the same time Greece, like other EU
states, faces long-term challenges in areas such as
education, energy, environment, globalisation, health
care, social security and technology. While it promises
to seek to achieve maximum social consensus, the government
will face major political tests over the fundamental
reforms it plans to make in the pensions and education
systems.
Greece’s integration
into the Knowledge Society through investment in human
and social capital is a priority if the economy is
to become more competitive. The government is committed
to widening access to ICT and encouraging innovation.
More controversially, Mr Karamanlis has pledged to
change the constitution to allow private universities
to operate and to give universities greater autonomy.
Also high on the agenda is
the development and diversification of Greece’s
tourism sector, now pulling in a record 17 million
visitors a year and with major resort schemes lining
up for development. A youthful new minister has been
charged with promoting quality and broadening the
country’s appeal beyond mass tourism.
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The new Acropolis
Museum is due to open in 2008 and will add to
Greece’s tourism appeal
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In the energy sector, new
pipeline projects are set to turn Greece into an important
transit hub. A newly inaugurated Turkey-Greece link
will eventually be extended to supply natural gas
to Italy and the rest of western Europe. A deal has
also been signed with Russia and Bulgaria for a Burgas-Alexandroupolis
pipeline that will transport Russian oil to European
markets, bypassing the Bosphorus Strait. Meanwhile,
efforts are continuing to strengthen the electricity
production and supply system in Greeece itself.
Greece continues to be one of the main beneficiaries
of EU structural funds, designed to help member states
whose per capita GNP is less than 90 per cent of the
Community average. A total of more than 24 billion
euros in EU funds is being made available for modernising
the economy and raising the general standard of living
through Greece’s National Strategic Reference
Framework (NSRF) for 2007-2013. Approved in Brussels
in November, the eight sectoral and five regional
programmes will accelerate Greece’s convergence
with the economies of the other EU states.
A key objective is to improve
the competitiveness of the Greek regions, towards
which 80 per cent of total NSRF funds of 36 billion
euros will be directed. Much of the investment will
be in key areas for growth and the creation of jobs,
such as innovation, support for small and medium-sized
enterprises, information technologies, trans-European
networks and the environment.
“The Greek regions have
been at the heart of our policy from the very outset,”
says Mr Karamanlis. “We have prepared works,
actions and policies, which are now being fully implemented.
We are creating modern infrastructures, which are
increasing the competitiveness of our economy, enhancing
our country’s strategic position and improving
the quality of life.”
An unprecedented programme
of public works has been launched. Construction is
due to start soon on major new highways and the rail
network is being modernised. Meanwhile, work continues
on extending ports, airports and the Athens Metro,
completion of the Egnatia motorway and its vertical
axes, the construction of dams and water supply systems,
and other major projects.
“The aim is for our country
to acquire the infrastructure it needs and for our
economy to further improve its new growth model and
competitiveness and become more outward-looking,”
says Mr Karamanlis.
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GREECE PROJECT TEAM
Project Director: Alexi Fernandez
Editorial Director: Tatyana Ovcharova
Editorial Assistant: Estefania Arrocet
