Poznan, 23/11/2011 (Agence Europe) - Greek Minister with responsibility for cohesion policy Michalis Chrysochoidis, on a mission to make clear to MEPs the sacrifices being made by Greece, spoke rather engagingly of the progress made to better absorb European structural funds while ensuring that there is no let-up in pace. Having been invited to address the regional development committee, on Tuesday 2 November, he told MEPs: “We are not asking for a blank cheque but recognition of the sacrifices of the Greek people. We have made progress but further endeavour will be needed of the people, workers, companies and the real economy”.
Absorption rate rising. After setting out the priorities and current measures, such as increasing the productivity of companies and tackling tax fraud and inflation, to jump start growth, he dwelt on efforts, expected to pay off, to absorb cohesion policy funding to as great an extent as possible. He acknowledged the support that had been received from the European Regional Policy Commissioner Johannes Hahn, which made it easier to chart the path to be followed. He told MEPs that, between June and October, the absorption rate increased by 30% compared with the same period last year. While this message was encouraging, the pace must be picked up and further efforts made, particularly on simplifying procedures, cutting red tape and improving communication between regional and central authorities. The minister aims to use the structural funds to “build adequate infrastructure (principally motorways: Ed.) and find ways to solve the problem of unemployment which is affecting 45% of young people”. In this, he is placing his hopes on the €1.5 billion guarantee fund that will allow these infrastructure projects to go ahead.
Real economy. What was of particular concern to Chrysochoidis was the lack of liquidity among companies, which do not even have enough money to buy their raw materials, he said. The additional money from the structural funds which could be released for Greece if a 10% increase in the level of joint funding was agreed by the European Parliament (EP) and the Council before the end of the year (the EP regional development committee has already backed the proposal) could also help ease the real economy and improve access to liquidity. The regional development committee chairwoman, Danuta Hübner, who visited Greece in September, also takes the views that the country's salvation is through the local economy. “Growth from below is really the future now for Greece. The most important thing is to push growth”, she told EUROPE.
She also hailed efforts made in this area, and repeated the EP's desire to work in cooperation with the Greek authorities, in particular to improve absorption of structural funding. (MD/transl.rt)