Foreign and Military Affairs
Greece aims to woo foreign investment
By Fu Jing (China Daily)
Updated: 2010-10-02 08:25
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 Maria Saranti, consul general of Greece in Shanghai, shakes hands with a Chinese border control officer on Thursday, Sept 30, 2010 in front of the Chinese-built ship Proteas at Nanjing Port in Jiangsu province. The ship departs for Greece on Friday, Oct 1, 2010. [Photo by Xu Bo / For China Daily] |
ATHENS, Greece - Greece will regain its economic momentum by offering investment projects with an "open agenda", encompassing the sale of assets, ranging from airlines to hotels, to China and other countries, its cabinet ministers said.
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They said that, with Premier Wen Jiabao's upcoming visit, Chinese investors will have the opportunity to forge new deals in tourism, shipping, new energy and other sectors.
Although Papaconstantinou did not go into further detail on the agreements the two governments will sign in the near future, he said: "The agenda is large."
Papaconstantinou said the cooperative agreements will include infrastructure, energy, tourism and the development of ports, adding that the agenda should be kept open when there is so much potential for cooperation between the two countries.
He said the Greek government is trying to create an environment to attract foreign investment by offering a fast-track approval process and tax incentives.
Chryssochoidis said China's investment and support is a "miracle" for Greeks in crisis and he expected both countries could increase economic cooperation over ports, airlines, transports, tourism, hotel sales and management.
"The trust of the Chinese government is unbelievable for us," he said. "In the midst of a crisis, we have the support of the largest developing country in the world. It is unique and a miracle for us," Chryssochoidis said, pledging to continue to support and cooperate with China.
"It is easier to communicate with China," he said, attributing the situation to historic links between the two countries, shared values and Greece's geographic location as a foothold in Europe.
A number of discussions and negotiations are currently taking place between the two counties, he said, indicating that the Chinese government is considering subsidizing a direct flight from Beijing to Athens.
Papaconstantinou said Greece is still in the middle of an ambitious program of fiscal consolidation and structural reform, in which the economy is expected to shrink by 4 percent this year, according to official estimates.
"We came very close to bankruptcy. We managed to stop and save the country from that fate," he said, adding that the country has been encouraged by early signs of a rise in exports, along with a rebound in consumer and business confidence.
Greece is undergoing systematic political and economic reform. Until 2014, the ratio of fiscal deficit to GDP is to be brought down to 3 percent from its current dangerous rate of 14 percent.
"It is true that the policy we took this year is very difficult for a lot of people," said Papaconstantinou, citing that the Greek government cut public wages by 15 percent, pensions by 10 percent and increased value added tax by 4 percentage points.
But Papaconstantinou said the public has trusted the government to deliver change through reform. "They know that the alternative to this is bankruptcy," he said.
Chryssochoidis said the country will boost its economy by encouraging export and investment.
While imports to Greece have increased over the past two decades, he said exports decreased at the same time, lowering the country's competitiveness.
He vowed to propose in parliament a new law that will provide incentives for investment.
Exports currently account for 8 percent of GDP and are projected to reach 16 percent within five years, he said.
