Greece wants to attract investors, but … In Brussels recently, Aristomenis Syngros, chairman of the Invest in Greece Agency, briefed some two dozen prospective investors about his country and its investment potential in domains like energy, infrastructure, asset management, water and waste processing. There is much attractive potential in many areas, like the sale of Athens' old airport, which looks on to the sea, or building golf-courses up and down the country (there are only three golf-courses in Greece at the moment). Singros has a one-stop shop in Athens to deal with all the administration and get round the country's labyrinthine red tape and bureaucracy. Greece is expecting some €37 billion in investment opportunities over the next fives years, all of them open to foreign direct investment as an important stimulus to the economy.
It will only help economic growth, however, if one is aware that the bulk of the task is in the hands of the politicians and the attitude of the Greek people. I remind readers here of the interview granted to this newsletter by MEP Robert Goebbels (see EUROPE 10574) after his three-day tour and interviews in Greece on behalf of the “Alternative Troika” (as opposed to the official troika of the European Parliament, European Central Bank and International Monetary Fund). In the light of what he discovered in Greece, Goebbels' criticisms of the recent measures imposed on Greece are startling and striking; but at the same time he has plenty of carps and criticisms of behaviour in Greece itself. The tax system must be simplified as a matter of urgency, the civil service must be made to operate properly, red tape needs to be slashed. Greek ship-builders pay virtually no tax because they are registered on exotic islands, the Orthodox Church owns vast latifundia on which it pays virtually no tax, eleven different ministries have to be consulted before a hotel can be built...
All this may have been known for a long time, but it is significant that Goebbels affirms, through his findings in the country itself, that the relaunch of investment, which he sees as crucial, will be difficult to achieve if the massive shortcomings and obstruction from red tape and the political system are not removed.
Even Jean-Claude Juncker regrets that the EU has not laid enough emphasis on economic growth, but he points out that Greece itself must be able to better absorb funding from the EU Cohesion Fund. He is unhappy that the country's politicians are filling the holes in the budget by increasing taxes rather than reducing public spending.
To sum up, the question of Greece remaining a permanent member of the eurozone has not yet received a final answer, even though the EU's support to the country as a member of the EU is, and will remain, incontrovertible.
Eastern Europe must respect the EU's rules. Over and above the current news events, the problem of Hungary can only be properly settled in the long-run as part of the European context, according to investigations in the country. My reminder in yesterday's newsletter about stubborn facts that Budapest would do well to remember does not in any way alter the need for fair solutions throughout the region to the imbalances brought over from the twentieth century.
The question of Hungarian- Romanian relations is well-known. A million and a half Hungarians live in Romania, where they are well-placed and even have their own political party. In the Tirgu Mures Medical School in Transylvania, more than a third of the students are of Hungarian origin. They celebrate Hungarian National Day and do some of their studies in Hungarian. Should students be divided up according to country of origin? The question is divisive and the rector has demanded that the university be allowed to decide for itself. He does not want any segregation between Romanians and Hungarians, explaining: “I believe in our integration within the European Union.”
A special envoy for the French Le Monde newspaper says that the tension has largely subsided and “Romanians and Hungarians have reached equilibrium in recent years within the EU.” The recent conflicts amount to a warning that membership of the EU is the only guarantee that the conflicts of the past will not be repeated. Moving to the fringes of the EU or refusing to respect EU rules would pave the way for manifold trials and tribulations.
Why the European Parliament is right to be concerned about the Mafia. I must admit that I did not pay much attention at first when the European Parliament started talking about the Mafia. The EP deals with so many different issues but I thought it a bit odd that it had added the Mafia, because after all, the police and legal system are supposed to deal with it and have access to intelligence and tangible means of action, but then I read some of the statements by Roberto Saviano and changed my mind.
Saviano is famous for exposing what the Mafia gets up to in his novels, articles and television interviews. He started off with the Mafia in Naples, but has now expanded this to include international Mafia. He is only 33 years old, but has to live under permanent police protection. He is now investigating corruption and the Mafia in Europe as a whole, criticising the way criminal groups have power throughout the EU. In a recent interview in France, he explained: “Countries like Slovenia and Croatia provide sanctuary to the Italian Mafia. Russian and Turkish criminals are undermining Serbia and have now moved to Greece. Gangs control Albania and Kosovo (…) The European Union has not given itself the resources to fight the various Mafias.”
Saviano says Swiss banks are involved: “European legislation is crucial to deal with the loopholes in various European countries and allow the legal system to confiscate goods as soon as the danger of Mafia collusion is detected. Goods and assets must be seized immediately because otherwise cancer sets in. The Calabrian Mafia has bought up an entire neighbourhood in Brussels, right under the noses of the EU!”
Is Saviano exaggerating? Possibly. But now I understand why the European Parliament has decided to tackle the Mafia. (FR/transl.fl)