Privatization a way out of recession
- By Zhang Fang
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E-mail China.org.cn, November 30, 2012
Greece has taken more measures to recover its economy, and an important step towards this recovery programs is bringing a 26-billion-euro privatization program to the world, to China in particular, Greek Deputy Minister said during a visit to Beijing.
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Dimitris Kourkoulas, deputy minister of Greek Ministry of Foreign Affairs. |
Just one day after the minister arrived in China, the leaders of euro zone countries and the IMF agreed to release 43.7 billion euros in loans to Greece, and will introduce a series of measures designed to reduce the country's massive debt.
"It put us back on track. Now Greece has all the requirements to look into the next phase and the country will start the recovery after many years' recession," Dimitris Kourkoulas, deputy minister of Greek Ministry of Foreign Affairs said in an exclusive interview with China.org.cn on Wednesday.
One of the measures is what Kourkoulas aims to promote during his trip, attracting more Chinese investment for Greece's new privatization program of their public assets.
The minister said that they hope to bring fresh money to the government through this 26 billion euros project.
"But the most important aspect is that privatization is incentive to the growth. It will make the country more competitive, creating new jobs. So it's not just a fiscal measure." He added.
The program includes infrastructure, real estate and energy sector.
"As a member of European Union and being inside of European internal market, Greece has obvious advantages for Chinese companies. In addition, Greece also has easy access to other markets beyond the EU, like Eastern Europe, Middle East, the Black Sea and North Africa. The country could be a gate for many markets," He said.
In fact, ports operation maybe one of the attractive Greek opportunities for China. Four years ago COSCO Group, one of China's largest shipping and logistics operators, funded pier construction at the state-owned Piraeus port, the minister said.
In November this year, Hewlett Packard, a IT giant, signed a deal with COSCO and will transport its goods across Europe, the Middle East and Africa through Greece.
"We believe it's a good example for China's market," said Kourkoulas. "It benefits both the Chinese and Greek economy."
In the last two years since the financial crisis, the Greek government has taken radical measures to improve the legislative framework for doing business in Greece, the minister said.
In October, Greece was moved up 22 places to 78 in the World Bank's annual report on easiest places to do business this year.
To guarantee the privatization is operating under transparent and open procedures, the Greek government created a new monitoring agency, Hellenic Public Republic Development Fund.
"We will make labor market more flexible and reduce labor cost," he said. "We have also built fast track for large amounts of investment."
At the same time, Greece has also improved their residency requirements for investors. "If you spend more than 300, 000 euros on buying real estate, you can get 5-year residency period. If you make an important investment, you can get yourself and your family 10 years' residency," he said. "We will make investment easier for investors from all over the world."
Kourkoulas reaffirmed his confidence of Greek economy at the end of the interview. He said: "Although Greece is still in recession, the future perspective is very promising, and the country will again be competitive," he said. "It's hopeful to see increasing rates as early as 2014."
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