Antonis Samaras, leader of the New Democracy Party, gave a speech outlining a plan to "restart" the Greek economy through tax cuts, deregulation, and combating tax evasion. The plan calls for (1) reducing income, corporate, VAT, and fuel taxes, (2) abolishing the "means test" for home purchases and restrictions on capital repatriation, and (3) overhauling the tax system to be simpler with stricter penalties for evasion. The goal is to stimulate business investment and consumer spending through pro-growth policies to help Greece become competitive and prosperous again.

1. 1
SPEECH BY THE PRESIDENT
OF THE NEW DEMOCRACY PARTY ANTONIS SAMARAS
Key Points
Thursday, May 12, 2011
Dear Friends,
I find myself in the same place where, 32 years ago, as a young
member of parliament I watched Konstantinos Karamanlis sign the “start-up”
of our country‟s European Journey. I address you in all sincerity, in all
honesty, honouring my debt as I perceive it.
The people of this country are demanding that we take at fresh look at
Greece, with a new Constitution and new institutions. - With a new political
and public ethos. The demand is that we finally cast off the image of a
wounded Greece, of a Greece of insecurity and panic.
I am not addressing you therefore in the language of yesterday because I feel
the anxiety of people and the demand from me that I be very clear-cut in my
words.
We have a government which incriminates itself!
We know that recourse to the International Monetary Fund began some time
ago when the international markets was still extending loans to Greece with
ease.
The government of PASOK tried at the time to achieve what other
countries were trying to avoid. Nothing was ever subject to negotiation.
Some countries point out today that they achieved a „Memorandum‟ on better
terms than we did. But I will not talk about the past today.
We do not need to because, what we had said in the past, has now
been corroborated by even the most authoritative voices from abroad that last
year were criticizing us.
To cite one example: The Economist last year criticized us severely last
year when we voted against the extreme austerity of the Memorandum.
Today it admits that what we had said was precisely what has brought us to
the present impasse. See slide 1 „The Limits of Austerity‟.
-- «The objectives (of the deficit) were not reached chiefly due to ‘a
recession deeper than expected».
-- And: «there is the fear that more cuts (today) will take Greece into
deeper recession».
This was what the conservative and liberal Economist said.

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I however am interested in the language of Greece. The way out that
we propose today concerns each and every Greek citizen wanting to grasp at
something and to hope.
I will demonstrate two things as simply as possible:
-that we can overcome the crisis
-that we can improve without returning to a dependent prosperity
and the false illusions we had in the past.
We need to stand on our own two feet again proudly. For us to become
competitive and outward-looking as befits the Greeks. We must never again
permit any foreigner to consider us as „an example to be avoided‟.
First of all I call upon you all to exorcize the ghosts of past decades –
the ghosts of popularism, of statism, of self-pity, defeatism, political corruption,
bigotry and a facile „settling‟ of our national problems. In any event, PASOK
has now brought us to the point where there are no solutions any more.
That is why we propose not simply another route for the Economy or a
different logic for the country which, if adopted, will liberate the strength of the
Greek people seeking a Self-confidence and Dignity Pact from us.
Dear Friends,
Let me just cite one thing – in the first four months of this year, as
concerns the main objective of public revenues, the government was
expecting an 8.5% increase and ultimately there is a 9.2% decrease! The
deficit on the other hand has increased by 14% since last year, despite the
unprecedented sacrifices of the Greek people.
What I am saying therefore is that emergency situations require
emergency decisions!
I am referring to the decisions which activate the Restart of the
Economy, of the market, of expectations, of the morale of Society. The
Restart of Greece! The priority for saving the country!
What does this „Restart‟ mean? It means that economic revival cannot
take place alone, automatically. What you need is shock treatment. This is
what restarting would be - a positive shock – a budgeted, modern and realistic
proposal.
What Greece has suffered due to disastrous policies is a paralytic
shock.
Of course developments are taking their course. Luxembourg has
voiced our innermost fears. We have gone from being equal partners to
almost mere „borrowers‟. Whereas we were to have gone to the markets at
the end of 2011, the government is now seeking new loans, precisely because
the markets it seems will be shutting us out for some time yet.
Let’s see what the Restart Plan for the Greek Economy with a positive
shock is.

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First of all – reduction of tax rates! Boldly and decisively!
It has to be done immediately so that it is effects the economy from the
first day. It has to be in the medium-term also so that the general mood and
the expectations of the market are improved. [slide 2]
-- we propose a 15% tax on profits for all companies – a flat rate – and
15% dividends tax down from the present 25%.
-- the highest income tax bracket will be reduced from 45% στο 40%
initially with fewer tax brackets and in three years will not exceed 30%.
-- as for VAT this will be set at 19% from the present 23% for the top
category, 9% from the present 13% for the middle category and will drop to
4.5% in sectors such as Tourism. The positive impact on inflation will also be
seen very shortly.
-- as to fuel tax, the increases imposed by PASOK will be removed
within two years. We have the most expensive fuel in the whole of Europe.
-- a reduction in employers‟ contributions by 25%. Ireland has already
convinced its Troika and reduced employers‟ contributions. This will
substantially reduce non-payroll costs to employers. Illegal labour will be
severely punished. The ensuing increase of contributions will balance out any
losses for Social Security Funds
-- a gradual abolition of „taxes on behalf of third parties‟ over three to
four years.
This all brings us to another enormous commitment - promoting
Entrepreneurship which has been persecuted for decades where statism has
been rife in Greece. This persecution has hit large enterprises, but chiefly the
middle class which is mostly made up of small and medium-sized companies
and self-employed persons.
Many will ask what will all this cost? I will come to this presently… for the
moment bear in mind that all our neighbouring countries have low tax rates,
some even lower. For us to survive we must make a decisive step and now is
the time to do so!
The second start to the restart is to settle all outstanding issues and draw a
very strict „red line‟ from now on.
There are three points to note here:
-- the abolition of a „means test‟ for acquiring a house for the next three
years – be it the first or second home or country residence. This means test
at the moment for the acquisition of a house does not punish those who have
made money illegally. All it does it to punish the economy because it has

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brought the construction sector to a standstill. The construction sector was the
„locomotive force‟ of the economy in Greece.
-- no further increase on pre-set rates on property because this does
not generate revenue but simply brings the construction sector to a halt.
-- no means test on capital repatriation so as to inject money into the
Greek financial system. All liquid and fixed assets abroad held by Greek
citizens are to be declared. All tax penalties will be suspended for one year.
With the exception of those who are involved in „money laundering‟, in this
period all assets held in Greece or repatriated capital will be declared, after
which the most stringent rules will be applied throughout. The only exception
here will be for politicians! I propose that a means test should be applied
immediately to all politicians who have held the post of Minister or Deputy
Minister since 1974!
And finally an assets register will be established for all Greek citizens.
* the third step to the restart is a broader reform to the tax system.
Foreign and domestic investors must be convinced that all these bold steps
will last and not be rescinded later on.
We must therefore ensure a stable system which combats tax evasion.
Despite frequent announcements to date, the results have been pitiful or even
the exact opposite of what was expected.
Slide 3 shows that in 2010 tax evasion increased despite the
expectations of the Memorandum!
What we need therefore is a complete overhaul based on four
principles shown in slide 4.
-- on the issue of tax rates being reduced we say that if you increase
taxes when there is a downturn in the economy this acts as an incentive for
tax evasion.
-- Secondly, a simpler tax system is needed. In the last year alone ten
tax laws covering 1718 pages have been introduced. Probably a world
record….
We intend to codify all tax provisions within a few pages and to have
one single tax law applying to private individuals, businesses, real estate and
VAT transactions respectively. This would mean a single 50-page piece of
legislation for companies, rather than thousands of articles of law dating back
to pre-war years…
This in itself will be not just a reform but a revolution in a tax system
which we have not had for decades!!
-- thirdly, strict penalties must be applied to anybody evading
taxes or contributions because any further stealing from the state after
taxes have been reduced deserves the strictest of punishments! We
do not agree with the present government that assumes that citizens
are evading tax and dishonest until proven otherwise.
-- fourthly, face-to-face contact between taxpayers and tax officers
must be reduced to the minimum. Here we have three new elements:

5. 5
- small and medium-sized undertakings can freely choose between the
present system or an imputed tax system. The imputed tax calculation will be
based on objective trends in the specific sector and region.
For example, for a shop surface of 100 metres, an imputed cost will be
set according to the area. For the prosperous area of Kolonaki there will be a
different imputed profit compared to the worker area of Kokkinia…
In the event that the taxpayer does not accept the calculation then a full
audit will be carried out.
- „external help‟ in submitting tax returns through auditing companies or
accountants‟ offices will be possible, whereby these third parties will be
responsible for the accuracy of the information submitted. The tax authorities
can audit these offices and the taxpayer to exclude the possibility of collusion.
The controllers will also be subjected to controls.
-- Finally the Books and Tax Code will be abolished which is long
overdue.
We are proposing a revolutionary reform of the system to make it
simpler, less bureaucratic and user-friendly to the honest taxpayer and
punitive for tax evaders.
Slide 5 shows the expected increase in revenues due to a reduction in
tax evasion over the next four years, based on modest calculations.
* The fourth step of the restart is the legalization of all buildings
constructed without a permit. This has been the greatest outstanding issues
for decades. Aerial mapping of the whole country will enable penalization for
any illegal construction in the future. At the moment there are more than one
million illegally constructed buildings throughout the whole country.
This of course will not apply to buildings in archaeological sites, on the
shoreline or those which constitute an environmental hazard. It is estimated
that 70% can obtain regular property titles immediately, with the respective fee
payable to the state over a period of three years. Legalization and the fee
payable in order to acquire the title deeds shall be based on the region, the
surface area and the gravity of the offence.
Slide 6 shows anticipated state revenues over a 3 year period from the
full legalization of illegal buildings.
In the first year alone expected revenue will be 1.5 million. Contrary to
this government‟s approach of temporary legalization, we are advocating a
comprehensive land and legalization policy.
The state itself recognizes that it cannot proceed to demolishing
buildings, which in turn encourages illicit construction everywhere.
A red line must be draw now. Most of the existing buildings will acquire
a legitimate title but draconian prohibitive measures will be implemented from
now on.
Any future illicit construction will be demolished immediately at the
owner‟s cost and with a heavy fine to pay...
This will separate the chaff from the wheat and convince society that a
stop will be put to illicit building.

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 The fifth step of the Restart: the State is to pay off its debts to
private individuals, which is the „domestic debt‟, the payments due
by the state to citizens. This includes returns on VAT, subsidies,
lump-sums on pensions, payments on contracts with private or legal
entities for services rendered as well as construction. These
obligations can be met by immediate payments, by state bonds, or
offset against any outstanding dues of taxpayers to the state. This
should mean a market liquidity of about 5 million euros.
The State cannot be seen to spearhead the movement of „I‟m not
paying‟! Nor can the state apply severity when it does not itself meet up to its
commitments.
* The sixth step to the restart. From now on banks are to commit to
offering the real economy some part, say 20-30%, of the guarantees they
receive. Over the past three years they have received 63 billion. A new
provision was ratified recently for a further 30 billion.
Each bank uses this money to cover the outflow of deposits, the increase in
non-performing loans and the exclusion of Greek banks from the interbank
market. This in itself has created a liquidity squeeze on the market.
No bank can reverse the trend alone, but if liquidity is created on the
market by all the banks, then the market will be given a breathing space and
their assets and capital adequacy will improve and capital flight will stop.
From the new guarantee installment a separate account is to be
created to be earmarked exclusively for the real market. This would be chiefly
for enterprises in the export, tourism and mortgage sectors. One quarter of
this will come back immediately to the state coffers in the form of tax
revenues.
The emergency measures to boost bank liquidity must be extended, as
I discussed with Mr. Trichet, beyond 2011 and for the whole of 2012. This is
one of the first measures I will negotiate with our lenders to create greater
liquidity.
The market is full now of post-dated cheques being extended
continuously. Tens of thousands of undertakings are in danger of folding, not
because they are not operating but because they are unable to recoup
receivables! Other thousands of shops are without a single customer all day.
The seventh step: all the above measures change the general morale
of the market and the measures to boost the economy increase benefits with
a zero or minimal fiscal cost due to this breathing space I have been
proposing over the past eighteen months.
Slide 7 shows five of these vital measures:-
-- First time home-owners to receive a 2% subsidy on loans to bring in
up to 2.5 billion euros in the first two years. The construction sector is still the
locomotive force of the economy!

7. 7
-- The programme to improve home energy conservation, if applied
properly and not with half-hearted measures as today will also bring
substantial revenue to state finances in the first two years.
-- If European Union Funds are utilized properly we can go back to fifth
position in terms of absorption as in 2009 or even higher, and not 17th
or even lower as today.
-- The government has put a stranglehold on public investment. Each
time Mr. Papaconstantinou needs funds, - which is an ongoing situation- he
makes cuts to the Public Investments Programme. It is worth however noting
that this programme has the highest multiplicatory effect, reaching a factor of
5. This is a very powerful tool that the government has to combat recession!
-- Major investment programmes are needed for permanent holiday
homes. Wherever such areas can be found, titles should be cleared and then
put up for auction for holiday or permanent residences. This is a very realistic
programme which has been successfully implemented in other Mediterranean
countries and does not impinge on the hotel sector.
What is even more important is that such programmes can bring in
permanent revenues for the state even before completion through preliminary
financing and other means.
All these „relief‟ measures can bring in more than 8 million in state
revenue immediately within the first two years.
There are a number of important examples of measures that can bring
in additional state revenue without needing expenditure: for example, by
appropriate utilization of the Egnatia Highway, the promotion of the
“Development Routes”, the five major motorways which are the very
backbone of our country, but with progress now almost at a complete
standstill.
Another example is the type of concession given for the Piraeus Port
Authority being extended to regional harbours and airports throughout the
country, or waste management and the extension of the Suburban Rail
network.
This will bring direct revenues and development. This government has
brought everything to a halt however.
Slide 8 sets out all the possibilities of this package.
Apart from a Restart to the economy there is another priority – society must
survive! For it to survive, we must remedy the injustices done:
One injustice must be rectified immediately – those receiving low
pensions of up to 700 Euros. They have had their meager pensions cut by
25%. We will reinstate these as a matter of utmost priority as soon as we
come to power because it is not only the right thing to do but also because
they are the ones who spend their money on the market.
We will reinstate child allowance to large families, which were curtailed by this
government, to the same levels as before and incorporate this into our first
budget.

8. 8
The total cost for both of these measures does not exceed 2 billion Euros
annually.
I will now explain the total cost of the Restart to the economy and
where the money will come from.
It must be noted at the outset however that these measures will not
only incur costs in the budget but also bring in revenue for the state.
There is a cost involved but there will also be revenue generated from
turnover on the market due to increased development. This will be
considerable with the first „safety net‟ being the money brought in which will
exceed the cost.
Slide 9 sets out the cost-benefit analysis from all the Restart measures
and the re-establishment of social cohesion based on the most modest of
calculations.
You can see clearly that even in the most modest case, from the very
first year the revenues for the state are in excess of costs.
Consequently, there will be benefits to be derived right from the star -
with a reduced deficit of about 2% of GDP in the first year, even with the most
conservative of estimates.
This net benefit is our first „safety net‟.
This is not the only one however, because we will move on to
additional cuts to squandering of public finances. These are real cases of
squandered money as follows:
-- Hospital costs to be based on results of successful state hospitals
abroad so as to set a guide to detect waste of financial resources.
-- A modern, computerized system of management to automatically
detect any attempt at embezzlement in the Public Health Sector.
-- A computerized system of medical prescriptions. The delay in
introducing this system is costing half a billion Euros each year!
--A ceiling on the amounts of prescriptions serviced by the
pharmacies, according to the area. We cannot tolerate enormous
divergences of thousands of Euros from the annual average…
--A premium for savings in Public Procurements for companies offering
substantial decreases compared to prices to date.
--A freeze on recruitment for three years. The only exception is for
emergency requirements. Thereafter the rule will be that for every five
employees pensioned off, one new civil servant will be recruited, but no
redundancies! What should be applied is the institution of a „labour reserve‟
for organizations abolished or merged.
-- Cuts to be made to incomes paid at the higher level especially in the
public utilities companies. See slide 8 for more information.
The government is supposedly trying to make real economies in
widespread waste, but is this really true? Certainly not! Slide 9 shows that
PASOK has inaugurated a new round of waste where once again the party
has taken over the government…

9. 9
Slide 10 shows overall economies that can be made. The measures
coincide with a number of those proposed by the government in its Medium-
Term Programme. In the measures we are proposing however there are no
„horizontal‟ cuts, but rather operational economies and severe cuts to
privileges at the higher income level.
This is the second „safety net‟ in our policy – additional economies to
be made. Within one year we can make savings of 4.2 additional billion by
targeted cuts to expenditure and income increases. Within 2 years, 9-10
billion in savings and within 4 years, 18 billions overall, without recession.
This will be once the Restart programme has begun...
Slide 11 shows the Restart Programme overall compared to the
Government‟s Programme.
The pickup to the economy ensuing initially and the development later
on, along with the two „safety nets‟ will substantially reduce the deficits as
follows:
-2% in the first year from the first „safety net‟ and 1,9% in the second
year. This gives a total deficit reduction of 3,9% of GDP.
During the next few years the economy will move into a pickup phase
and will begin to produce increased income for state coffers. The deficit will
thus be reduced by more than 7% of GDP within two years.
Once the economy moves from revival to development the deficit will
be reduced even further- much more than foreseen in the medium-term
programme of the government, - as much as 11% in three years.
Within three years of implementation our programme reduces the
deficit to 1% and thereafter generates a surplus.
This will enable us to have a balanced budget within just over three
years because, as of last year, things have changed, where the recession
deepened substantially and the paralysis on the market has worsened.
No „miracles‟ will be wrought but just consider that the austerity
imposed by the Memorandum so far is in excess of the total deficit of 2009.
With the Revival of the economy we will instigate, these cuts will „take effect‟.
So far recession has „swallowed up‟ these cuts, as the government itself
admits.
Rebooting the economy is an immediate objective, but to achieve it
additional measures are needed, of an institutional nature not financial.
Slide 12 shows some of our top priorities apart from the offsetting of
amounts owed to the state against what the state owes.

10. 10
-- By way of indication I am referring to the obligation of the state to
provide all documents required electronically and not for people to have to go
from department to department.
-- The fast track must be extended to all enterprises not only to the
largest and not only foreign enterprises.
-- All judicial conflicts to be settled with one year at the most. This will
be like a legal „fast track‟ which requires an institutional reform in the way
justice is meted out.
--A „Zero base Budget‟ will mean a re-examination of every budget line.
Slide 10 sets this out more analytically. I will cite just two of the most
important aspects:
-- The encouragement of entrepreneurship. This means, among other
things, the abolition of any extra emergency payments on profits. These only
discourage entrepreneurship with minimal revenue. These one-off payments
charged to businesses have become a permanent fixture and is the greatest
example of persecution suffered by this sector today. This must be stopped.
- A resolute political decision must be made to stop illegal economic
activity because it is a death blow to true trade. By putting a stop to illegal
trade the climate on the market will be improved immediately and will bring
immediate revenues to both business and the state.
One thing should be clarified:
All seven steps to the Restart presented must be taken simultaneously,
not individually or piece-meal.
Otherwise we will not be able to have that positive shock we need.
So let‟s Restart!
Let‟s move ahead with all necessary measures for the Revival to really
take place and not to fizzle out overnight. It must lead smoothly to viable
Development thereafter.
There is also a third priority: a change to the model of development.
We must move ahead with our country‟s renewed competitiveness, looking to
the outside world. We must boost Exports therefore.
Restart –Revival and then Development and a change in the model of
development. At one and the same time we must speed up fiscal
consolidation.
Slide 13 shows some important steps to change our model of
development.
--For example a drastic change in the tax system we have already
mentioned.
--For Shipping and Tourism we will re-establish the respective
ministries with a full reinstatement of their competences, to come directly
under the Prime Minister.

11. 11
--The sectors of agriculture, animal husbandry and fisheries. You may
be aware that Greece imports 65% of its requirements for porkmeat and 90%
of its beef consumed. This is inconceivable in terms of financial logic and
must change.
--Processing and standardization of quality products is an area of
enormous potential for us, but we are still performing ineffectively.
--The re-declaration of the Exclusive Economic Zones which PASOK
regrettably fears. The exploitation of our mineral resources must finally be
addressed after years of inactivity….
--Research-Technology-Innovation. These are areas that are not the
exclusive preserve of others. We too can excel in them!
More details on this can be seen in Slide 11.
What is also intangible, but important for cultural Greece and which can
contribute to a change in the psychological climate:
In the new national objective to save our country we will activate private
initiative as well as the omnipotent Greeks abroad. Here I refer to
foundations, sponsorships and volunteerism. All these can have a huge
added value and are part of our tradition of great national benefactors.
We need to organize ourselves as for an Olympiad. We need to call
upon the powerful – in an organized fashion- to contribute to special projects,
for example to our main museums, which without help lose their value and do
not contribute to our cultural and tourist development. The role of the
President of the Hellenic Republic could be instrumental here.
All the sector development strategies will be addressed on a future
occasion. We will then proceed to our specific policies and present our
analytical programme with the competent sector chiefs for Shipping, Tourism,
Energy, Processing, Agriculture, Trade, Environment, ICT, Research as well
as the specific 1Χ13 programme which gives the specific development
priorities for each of the 13 Regions in the country.
For the moment however, I insist on our priority of restarting the
economy. Without this there is no point in any further discussions.
There is however something we must clarify over and beyond the
Restart. This is linked to the immediate change in the climate in Greece and
the change in our image abroad. We must utilize the public assets to
immediately reduce our 50 billion in debt.
This is the reason we raised the issue last year. We knew that with the
impasse of the Memorandum, Greece‟s debt would spiral out of control. This
would in turn raise the issue of insolvency, or „restructuring with a haircut‟,
which is equivalent to a controlled bankruptcy.
When we proposed this last year to the government we were derided.
Today the Troika has set this as a condition for borrowing…
That is why we proposed it last year – to avoid the present situation. It
takes time however, because the state needs to legislate, it needs to clear the
titles to the assets and thereby create value.

12. 12
Land use must be determined as well as a utilization co-efficient to
generate added value.
Thereafter it must examine how the assets will be utilized. This will
convince any potential buyer that no problems will arise later on. There must
be a stop to ridiculous fiascos such as with the Astakos project which harm
our image and the climate on international markets.
Once this is done the various utilization modes for the state assets are
manifold – from the simple, traditional modes, such as leasing and public and
private partnerships, and more complex modes such as Mutual Real Estate
Capital, Holding Companies, SPV‟s, which are special investment vehicles to
exploit natural resources as well.
The state can thereby be paid in advance for part of the value against
future exploitation and to have bridge financing for the intervening period
between liquidity and investment revenue expected in the future.
This will mean cash in hand without necessarily ceding ownership of
assets.
We must be wary of fixed notions – some properties can be sold, but
added value should not be given away and any sale of important state assets
must be ratified by Parliament.
We can also have utilization of Church assets. This must be done in
full transparency and respect of the role of the Church and its Charitable
Mission. A Church that has its own assets is strong, and the Church in
Greece does have assets, but no financial resources.
Do not expect me to indicate which „prime‟ properties or land should be
utilized in what way. There is no reason for me to do this and I am not an
estate agent...
Making good use of state assets means convincing people to invest,
but nobody will invest in an economy that is in a state of paralysis, in a society
at unrest, in a country attacked every day by speculators preempting our
bankruptcy. This brings us back to the issue of needing to Restart…
If we succeed in restarting the economy the 50 billion can be found
relatively quickly.
Without a restart, exploitation of state assets is in vain. This would be
a case of „flogging off‟ our assets at cut price.
The same holds true for denationalization which we are in favour of.
We have repeatedly chastised the government for dragging its feet – not one
state enterprise has been privatized despite announcements to the contrary.
At the moment the entire public sector enterprises on the stock
exchange are worth less than 6 million as against 8 million they were quoted
at in September 2009, which was also a year of international crisis.
With a stock exchange in turmoil, if you announce mass sales of share
packages then prices will plummet thus damaging your own assets.

13. 13
Here we need to see what we are selling off in each case, at what
price, with what prospects, and when. What is our strategy?
For example, the government‟s plan to sell of 17% of the public power
corporation is a huge mistake. This reveals cash flow panic. It has no
bearing on energy infra-structure privatization and how it operates world-wide.
We will proceed to privatizing the PPC in the most modern, financially
sound, transparent and developmental way.
The modern concept of privatization everywhere begins with the
liberation of the market:
--Liberalising the energy market means first and foremost breaking the
state monopoly down into various companies and then choosing what to sell
off.
The PPC is not one single thing. It must be examined as a total group
of different company sectors.
The distribution and transport networks for example must remain under
state control. The remainder can be privatized.
--Liberalizing the energy market also means that we must chose our
energy mix which the country will produce in the future as well as the
regulatory framework.
The idea is not only to receive money now, but also to produce cheap
energy in the future to save good jobs.
We will seek a strategic investor for those parts offered up to
privatization, - this is the only way to achieve any development…
We will establish a regulatory framework to ensure public control over
social resources, such as our water reserves which are so important for our
farmers.
We must also determine at the outset what the benefits for private
individuals will be, the existing loans, the obligations for environment
rehabilitation in local communities that the PPC and the state have
undertaken. We must see what the new investor can undertake and what
must be completed prior to privatization.
The government‟s plan, I repeat, does none of this.
What is valid for the PPC, which is a listed company, will prevail in a
different manner for the non-listed Railways Organisation. Rail transport in
this country is 3% of total transport, whereas in Europe it is 70%. What is our
plan?
What opportunities for investment are we opening up?
When clearly determined it can lead to a substantial leap in
development through rail privatization. Otherwise we are simply selling a plot
of land in the desert.
For other state enterprises, such as the water companies in Athens and
Thessaloniki, with the water networks remaining under public control of
course, for the Hellenic Postal Service, the State Petroleum Enterprise, the
general mining and metallurgical company (LARKO), the casino, the lottery,

14. 14
the Hellenic horseracing organization (ODIE), the salt mines and tourist
properties we will promote their immediate privatization with a strategic
Investor.
As for the football lottery (OPAP), we must remember that it brings in
enormous revenue to the state, both directly and indirectly.
We cannot cede state participation at a cost which is equal to two or
three years of revenue. That would not mean selling it off, but giving it away!!
Finally before anything is privatized we must get serious. We must
change the whole system of unfair privileges in the public enterprises. Here
we have a closed shop situation, where people behave as if they own these
public assets, shaking a threatening finger on television and hiding behind the
government – behind the government that nurtured them and that is allergic to
decisions that it does not understand as a political party, nor can it manage as
a government.
It should be clarified that no trade union in state enterprises owns either
the energy sources or other public infrastructure. Trade union rights are
sacrosanct, but there are no private privileges, nor can they have any and we
will not recognize any.
The post-dictatorship regime has nurtured many „black spots‟ of
arbitrary action and public assets‟ abuse. If the modern state wants to make
optimum use of the wealth of the nation so as to move out of the crisis these
„black spots‟ must be expunged. Otherwise there is no use discussing.
.
To answer the last question: yes, in order for all this to succeed we
must change the conditions of the Memorandum!
Perhaps some people are banking on our bankruptcy. But Greece is at a
crossroads where unprecedented strife is in effect around us, threatening to
destabilize not only this country but also other European countries around us.
We have therefore a strong geo-political argument too – Greece cannot
endure any further instability, when the whole region around us is in a state of
destabilization.
We also have the precedent of the Irish. They were able to achieve
initial negotiations – without a „gun on the table‟, and other political myths –
much better conditions than in our Memorandum, maintaining their tax rates at
12, 5% leading the country to economic revival today!
When we see the final version of the Portuguese Memorandum we will
all see that the Greek government did not negotiate a single thing. Already
the Portuguese are celebrating openly that they have achieved much better
conditions than Greece. To cite some of them- they did not abolish the 13th
and 14th monthly wage. Pensions have been frozen apart from the lowest.
Only pensions in excess of 1500 euros have been reduced. Also two thirds of
the total amount borrowed will be paid out to Portugal outright.

15. 15
Can this in any way be compared to our Memorandum?
Look at the new centre right government of Edna Kenny in Ireland – it
has been able to improve the conditions of its Memorandum. It has been
accepted that if they stick to the same objectives of reducing their deficit and
debt then their Troika has no objections to the way in which that will be
achieved.
This is what we aspire to as well – a change in the conditions set in the
Memorandum, so as to acquire flexibility and for there to be a restart to the
Greek economy to move out of the Memorandum as early as possible.
This is why we have created two „safety nets‟ for our proposed programme.
We want to maintain fiscal consolidation planning but we want to change the
present tack of the Memorandum which is leading us nowhere.
Europe has other problems as well. It has created a Permanent
Support Mechanism which as top European stakeholders agree, perhaps
allows speculators to weaken countries with problems more easily and also
impedes their return to the markets. I have mentioned this to my colleagues
in Europe on a number of occasions.
International demand for European products is expected to drop.
Countries such as China, due to internal inflation, are taking a step
backwards.
Under such circumstances all forecasts show an economic recession
and an increase in interest rates in Europe. European leaders must
understand that this will make it even more difficult for Greece in such a
climate to move to development so as to overcome its crisis. How is Greece
going to succeed if the recipe that the whole of Europe considers a failure,
continues?
Let us not forget the daily bombardment by the international press as to
the possible contamination from the Greek crisis to the rest of Europe. This is
a development they would wish to avoid but this fear has been changed into
yet one more argument as to our problem.
There is therefore an iron-clad argument to achieve a change in policy.
I will negotiate all the terms of the Restart mentioned above.
I will negotiate another programme with other intermediary steps, with
more ambitious goals, but with more realistic means.
I will negotiate new public debt repayment terms within Greece so as to
have an immediate reboot to the economy.
I will also negotiate the extension of liquidity guarantees towards Greek
banks until 2012, so that part of the liquidity can be disseminated to the real
economy. I will insist on this issue because with the present tight liquidity
nothing will be left standing.
I will negotiate every sentence and every idea which will provide relief
in managing our debt.
There are also things that Europe can do to overcome its crisis:

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- Such as the Eurobond for example already being discussed,
although for the time being there are forces blocking it.
- Such as the possibility of buying up our debt on the derivatives
market as well. This can reduce the overall size of the debt but also
the cost of servicing it every year.
The idea of a European Revival Fund for example, if established along
with the proposal by Commissioner Baroso for major trans-European project
bonds which will boost economies in the European Union overall and not only
in the most „problematic‟. This will also forge European solidarity.
Perhaps the main loser in this crisis is ultimately European Solidarity.
When under these conditions the member-states lend money and make a
profit from those in need this is a far cry from solidarity. This is harmful in the
long run and does not help European Integration.
- One final issue. Many have planned or proposed a „velvet
restructuring‟ of our debt. But for this to be beneficial we must have
had a Restart.
Without this all other measures are simply a temporary respite.
Do not however think that a restart is always painless. There are many
people in Greece today being paid by the state with bonds, and now facing
the possibility of ruin should there be an extension of payments. We need to
keep our eyes open…
This means we must know what we are asking for, that we know where
we are going.
The Papandreou government is not able to do this, especially given the
disagreements and dissident voices, divisions and daily rumours of a
government reshuffle and bickering between ministers.
This government has not understood that the extension and new
Memoranda are being discussed today precisely because all the forecasts for
„saving‟ the economy made last year have failed.
Restarting the economy is therefore imperative, come what may.
Whether measures to facilitate us are taken or not the economy must
take off, society must stand on its own feet, and no „relief‟ in itself can ensure
that. We need to restart the economy to achieve economic revival and
development.