Athens Macedonian News Agency: News in English, 17-02-05

Athens News Agency: News in English Directory - Previous Article - Next Article

From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Debt and investments the focus of PM's visit to Paris, gov't sources say

[02] Austerity without end is no solution, Andrés Solimano tells ANA

[01] Debt and investments the focus of PM's visit to Paris, gov't sources say

Responding to ND's claim that Prime Minister Alexis Tsipras had used the state aircraft "to go on holiday," the government issued a detailed announcement on Saturday stressing that the prime minister "has a heavy schedule, both in Greece and abroad, which does not permit him to take time off."

"To put an end to the speculation and for people to know they are dealing with common slanderers...The prime minister, accompanied by Minister of State and government spokesman Dimitris Tzanakopoulos and the government general secretary Mihalis Kalogirou, after the end of the Southern EU countries Summit in Lisbon where he stayed from January 27-29, made a stop of a few hours in Paris of which both the Greek Embassy and the French government were informed," the sources said.

During this time, the prime minister had meetings with the head of L'Oreal, who is preparing to make a major investment in Greece, representatives of the Rothschild investment bank and other investors before returning to Athens on Monday, the sources said.

ND's press office had accused the prime minister of using the state aircraft to visit Paris accompanied by his family when he should be returning from Lisbon and of "living large" at the tax-payers' expense. If the prime minister had gone to visit investors, he would have announced this in advance, ND added.

"Now SYRIZA's MPs and the Greek people know why Mr. Tsipras is so anxious to stay in power. It's a good life for him but very hard for the Greek people," the announcement added.

[02] Austerity without end is no solution, Andrés Solimano tells ANA

An MIT-trained economist and former executive at the World Bank, currently acting as Regional Adviser at the United Nations Economic Commission for Latin American and the Caribbean, Solimano was in Greece to promote his new book "Global Capitalism in Disarray: Inequality, Debt, and Austerity."

In his interview, Solimano expressed his conviction that "the current approach of endless adjustment is of doubtful validity" and that the servicing of Greece's debt must be limited to meeting essential priorities, such as job creation, a resumption of investment and overall economic and social recovery.

The full interview is given below:

Could you share with us a few words about your recent book "Global Capitalism in Disarray: Inequality, Debt, and Austerity". What can readers expect to find in your book?

The book provides an historical background and empirical perspective on three main challenges facing global capitalism today: (i) chronic stagnation and austerity, (ii) financial fragility and debt , (iii) rising inequality of income and wealth. The readers can find an analysis of the economic and social conditions that feed current electorate dissatisfaction with the status-quo and perhaps explain the turn to economic nationalism we are witnessing today.

Are you optimistic about the Greek crisis? What is your view? How would you describe the current situation and what are the first impressions from your brief visit to Greece?

The Greek situation of prolonged contraction and stagnation, unemployment and emigration of talented people and entrepreneurial capacities is quite worrisome. It shows that austerity can be very damaging and is not a productive way to correct imbalances. I believe, from what I see, that this is a country with great potential but which requires more support from abroad. Debt relief is essential to enable a resumption of economic growth and the end of social hardship.

Taking into account that the Greek economy has lost 25% of its GDP through the implementation of the policies imposed by its creditors, what policies should be followed?

I think a growth-oriented economic programme is urgent. This programme needs to put job creation, a resumption of investment and overall economic and social recovery as critical priorities. Debt servicing should be limited to achieving this set of priorities. This has to be worked-out with creditors but the national interest of the country and the welfare of the Greek population should be the overriding concern over the interests of foreign banks. The current approach of endless adjustment is of doubtful validity. National assets must be protected.

What lessons can Greece draw from crisis management in Chile in the '80s? Do you see any similarities?

Chile experienced a very serious economic and financial crises in 1982-83 in which GDP contracted by 16 percent in two years and unemployment climbed to 30 percent. But recovery was supported by loans from the International Monetary Fund (IMF) and the World Bank with soft conditionality, the peso was devalued by 30 percent and debt was restructured. I see a more stringent standing from European creditors towards Greece than what Chile faced in the 1980s from external creditors.

Given your experience, what do you think is the appropriate role of intergovernmental institutions in Greek economic development?

I believe the international financial institutions must work out a different framework for Greece. Debt relief, the end of forced privatisation, gradual fiscal consolidation and funds to protect pensions and salaries need to be important ingredients of a different approach to Greece. Austerity without end is no solution for any country.

What's your sense on Trump's economic policies and focus on protectionism?

Trump's policies are intended to end globalisation as we know it. His policies want to erect tariffs to imports, restrict foreign investment outside the US and severely restrict immigration. This amounts to dismantling the three main pillars of an integrated world economic order. It is very worrisome for the economy and democracy as well. The resemblances with the 1930s are neat and alarming.

Any final thoughts?

I think we are living in a very complex juncture and global capitalism seems to be transiting from neoliberal economics to economic nationalism and xenophobia. I think a country such as Greece has great possibilities but is trapped in economic problems inherited from the near past. Austerity without end is not a viable economic strategy. Priorities must be oriented to growing again and building shared prosperity. It is essential to maintain the social role of the state and avoid the sale of assets at low prices to local economic elites and foreign investors. In other countries these policies have led to big wealth concentration, making social services and public use of infrastructure very expensive. Greece is a great country and the international community must cooperate with its authorities and people in hard times.

Athens News Agency: News in English Directory - Previous Article - Next Article