Restarting the Greek – Italian bilateral relations

Prime Minister Alexis Tsipras’ remarks at the joint press conference with the Italian Prime Minister Paolo Gentiloni, at the 1st High-Level Cooperation Council of Greece and Italy meeting in Corfu.

Κοινή συνέντευξη Τύπου του Πρωθυπουργού, Αλέξη Τσίπρα και του Ιταλού ομολόγου του, Πάολο Τζεντιλόνι
Κοινή συνέντευξη Τύπου του Πρωθυπουργού, Αλέξη Τσίπρα και του Ιταλού ομολόγου του, Πάολο Τζεντιλόνι

Opening Statement

I would like to welcome the Italian Prime Minister and the Ministers of the Italian government, here in Corfu. It is a unique island in beauty as well as in history. Along with all the other Ionian Islands, it constitutes a connecting link – I would say- between our people and civilizations. The historical and friendly relations between our people are what bond us. The ancient Greek civilization and the Roman civilization formulated a significant part of current western and global heritage. This is of great importance nowadays, when we talk about the future of Europe and we must remember and consider that the days that we discuss about Democracy, the public sphere, the rule of law and the future of Europe do not occur only today. This dialogue stayed alive the whole period of our common past and history. Our people participate in this dialogue for thousands of years.

Now, the time has come for us as European citizens to take a stand and state a different perspective. The perspective of the people of the South with the greatness of the history and potential not to stay on the sidelines of Europe but to play a leading role.

I had the opportunity to discuss today with Paolo all these matters. I would like to begin stating this: One of the dearest thinker, politician and intellect as well as a revolutionist was Antonio Gramsci. Gramsci, also, used to describe the period of a crisis as the “the time of the monsters”. The time, when the old dies but the new has not been born yet. I would like to refer to something else that he used to state: living means taking a stand. We are taking our stand towards the challenges of the future of both Europe and Greece so as of Italy we take a stand in this debate opening in front of us.

Yesterday, we listened to President Junkers’ speech concerning the necessary breakthroughs that Europe needs. We agree on many points in his speech. The following days we will have the opportunity to discuss in Tallinn in Estonia, and in Cyprus, in Lefkosia, where the countries of the South, the Mediterranean countries of Europe will be able to discuss and formulate the manner with which we can be involved in this dialogue and developments.

Therefore, we have views. We believe in the need of a eurozone which meets the needs of its citizens through international institutions which will reinforce instead of canceling the social character of Europe as well as the notion of democratic accountability. I am addressing what is already known, the thoughts of the establishment of a Euro-zone Parliament, so that the decisions will not be taken behind the closed doors of a Minister of Finance, but they will be held accountable to this European Parliament. We suggest, simultaneously, the establishment of a Minister of Social Cohesion, because there is more beyond the economy and the numbers. It is, also, the manner that economy will be transformed into a policy for the reality experienced by the citizens, the vast majority of the citizens.

All these can have a future if our role is not based on discipline but on redistribution and balance. If there is a strong budget with a stabilizing and redistributive role for the eurozone. We have, also, discussed about the importance of strengthening the European Stability Mechanism. In other words, Europe should have the institutions to stand on its forces, institutions and creating its Monetary Fund, in order not to need the advice of a third party. When Europe wants to play a decisive role in solving international problems, it cannot fail to solve its own problems.
Of course, we also addressed the need for European binding pillar of social rights, as we believe in the need for convergence and the need for a more social Europe.

Finally, I have to admit that I welcome the idea of Italy, the seats in the European Parliament that will remain vacant after the decision of Britain to leave the EU in the upcoming elections to be shared according to a transnational list in order to reinforce the idea of creating strong European parties. Because the political debate in Europe should not be a confrontation between peoples and nations, but it must be political struggle between ideas.

Allow me to say that in addition to this discussion on the future of Europe, we discussed the developments on the economy in Greece and Italy. I stressed that Greece is emerging from the crisis and the perspective of growth with investments must be reinforced, with important investments, foreign investments that will create new jobs. Italy is a very strong partner. It is the biggest trading partner of Greece and a leading investor. Therefore, we agreed with Paolo, on the necessity to strengthen this relationship. We discussed about the Greek enterprises operating in Italy, also, about the strategic Italian investments currently being made in Greece. We have made a special reference to the case of TRAINOSE, a deal that was finalized with the signings on the agreement, today. And, of course, I will refer to the intention of Ferrovie Dello Stato, the Italian company that assumes the responsibility of TRAINOSE, to invest 500 million euros, in addition to the acquisition, in the following period, on the Greek railways. A very important contribution to the prospect of a recovery in the Greek economy. At the same time, there are other major Italian businesses. We have SNAM’s stake in the joint venture with 20% in the TAP pipeline, which is currently completing its construction along the northern part of Greece. We have ENEL in the field of wind energy, with an investment project, which is proceeding directly, amounting to 300 million Euros, to renewable energy sources in Greece. These are important investments that we are promoting, but we also want to multiply them.

We, also, explored the prospects of new investments in the fields of high technology, infrastructure, and tourism. We discussed extensively about our energy cooperation. A sector where our ministers signed a relevant agreement and it is our intention not to have different attitudes in Europe. We will not treat our partners in the North differently from the way we will treat our partners in the South. We strengthen and believe in the need to diversify energy sources, to multiply sources and ways but with no exclusions. And in this sense, we are talking about both the TAP and IGI Poseidon, the sector, the South-East industry, but also of course the East Med, which will transport natural gas from Leviathan’s deposits to Europe.

There was no doubt that the issue of the immigration and refugee crisis would be a part of our discussion. Greece and Italy are two countries that have suffered from this crisis which is both European and global. It is neither Greek nor Italian only. Our people have shown the necessary solidarity towards the refugees. And this is the key aspect of our values. I believe our people showed to the rest of Europe that these values are strong at the center of our civilization. We believe that Europe must realize that crisis of this importance cannot be tackled by building fences and exclusions that undermine our European values ​​but need to be treated with more solidarity and responsibility. We therefore agreed that any revision of the common asylum system should be based on a fair burden-sharing policy, that we cannot discuss the revision of Schengen Agreement without discussing the revision of Dublin Agreement and that we should proceed to a more effective plan of the return to their countries of origin of those who are not entitled to asylum, under the responsibility of the EU.

Obviously, at this point we also talked about Turkey, an important country in the region. My personal opinion, which Paolo also agrees with, is that Turkey must end an aggressive rhetoric and proceed with the reforms. At the same time, however, Europe must insist on the need for reforms in a rigorous manner, but it must not end and let alone definitively end Turkey’s accession perspective. This would be at the expense of stability in the region, but also against the Turkish people themselves.

We also discussed a number of other crucial issues concerning the Western Balkans. We referred to our relations, our countries’ relations with the Balkan countries. Our conversation was in a context, I think, of conciliation, mutual understanding and agreement. I think this day marks the restart on a very solid basis and with great optimism and great ambition to achieve many things.

All in all, this is the restart in Greek-Italian relations. This is also evidenced by our joint declaration. Not that the Greek-Italian relations were not at a high level in the past, but I believe that this relationship is now of particular importance, because both countries are leaving behind a multi-year crisis. We are facing common problems, common challenges, and we are looking for solutions to these problems using common ways and taking parallel steps.

I am confident that we have great potential in front of us and our countries will play a leading role in Europe. I believe that the counties of the South and our cooperation with them will play an important role in building a new Europe. And in this sense, I want to thank Paolo for his effort, for his contribution, for the steady support of Greece in difficult moments in the past, like Matteo and so did Paulo in difficult times standing next to us.

I want, therefore, to thank the Italian Government, but, above all, the Italian people and I hope that the next intergovernmental encounter, the next summit, between our governments to find Europe in its next page.

Questions and Answers Session

SKY TG24: Good day, Prime Ministers. I would like to refer to President Junkers’ speech, yesterday. We find ourselves in front of many challenges. You mentioned the introduction of a Minister of Finance. It would be better if this process did not create additional problems in Europe, not to create further divisions about who this Minister of Finance would be. President Juncker also referred to Italy’s extraordinary steps recently in relation to the Budget. Do you think that the Italian Government is able to move even more dynamically in terms of investment in Greece, but also in Europe in general, in addition to what you already mentioned?

ALEXIS TSIPRAS: The second part of your question will be answered by Paolo, obviously. I will answer the first part. President Junkers’ statement opens up issues that should have been addressed to a long time ago. Personally, I agree with many points made in his speech, and Paolo as well I believe. I would like, however, to highlight what Paolo mentioned before. A discussion about the steps towards the architecture of a new Europe is most welcome, and we need that. But, beyond that, we need a different view on the essence of political interventions. For, in fact, a finance minister, if he plays a role as a peddler, and controls how much the unruly will be punished, will not add anything new. If, however, he plays a role and observes the weaknesses, structural imbalances and, at the same time, attempts to use the tools to correct these imbalances and to move ahead with the prospect of the convergence between the eurozone member states and in a perspective of the welfare of the peoples of the eurozone, then, yes, we have this need.

We, also, have the need for more Democracy. The future of our people should not be decided behind closed doors, not even by the elected governments of the people, but by some technocrats. This must not go on. It is not only worth talking about the minister, but also to whom this minister will answer. Will he or she be held accountable to several Councils, and therefore to extra-institutional bodies or will he or she be held accountable to the elected representatives of our peoples, and therefore, in that sense, will he or she be subject to constant democratic control of themselves and their decisions?

And the last crucial issue is whether the rules that we will decide, will they apply to everyone, or perhaps there will be the same flexibility for everyone. Because to this day we adhere with reverence and punish with severe penalties those countries that do not follow the framework of deficits that we have co-decided, but we have no concern to owner what jointly we have agreed in relation to the external surpluses of the eurozone countries.
And we stand on an oxymoron: To have, in an almost closed economy circuit, countries with surpluses, having no concern about the constantly high surpluses of many billions of Euros over what we have agreed and at the same time, while these surpluses represent the deficits of other countries. And I am referring, of course, to this permanent distance between the surplus North and the deficient South.

Therefore, it is essential to proceed to great institutional changes for the new architecture, but at the same time it is crucial to make brave political decisions and alternate our perception of the way that we can move forward together. And together, of course we are not all at the same level, means that we will be at a level where no one else is, because if we are on the same ship and for example some are burning under the sun on the deck and some in the hold, in the engine room and others are in the first class enjoying themselves, this is something that cannot continue.

ERT1: Both Prime Ministers have stated that the views of Greece and Italy agree on this debate, which has begun concerning the future of Europe. Do you think that your views can converge with the views of Berlin, having in front of us the German elections?
And a question to the Italian Prime Minister, the Greek Prime Minister recently answered this: If he thinks that Europe can solve its issues, he can live without the IMF and that he can form his own institutions to solve issues, with regard to the crises faced.

ALEXIS TSIPRAS: I share Paolo’s view on the matter of the possibilities ahead. I think that only the fact that we should all realize that there is a reason to discuss the changes, brave changes, is a positive step. Because, up until now, we used to live in an environment of pretending that everything is well and nothing needs changing. That itself is a positive step.

I, also, believe that it is a positive fact that this debate takes place not in the middle of the crisis but at a time when the eurozone and Europe as a whole are out of the crisis. In times of stability, decisions need to be made about the necessary reforms, but having the experience of the crisis and thus knowing and having experienced the great weaknesses of the eurozone and the European structure. And, at the same time, the experience of the rise in Europe, in the heart of Europe, in important countries of Europe, the rise of a stream of the extreme right, anti-European populism and the rise – if you want – not just of Euro-skepticism, but of Anti – Europeanism, that is a different thing. It is something different to believe that this Europe needs to change and fight to change this Europe and another is to believe that this Europe must not exist.

In this sense, therefore, I believe that there is a window of opportunity in the coming period and immediately after the German elections when new concrete initiatives will be taken. And I believe that, as ever, the usefulness of this initiative, the Summit of the Mediterranean European States at a level of coordination, dialogue, conciliation, which today can make a decisive contribution to the dialogue for the next day, altering power relations. Because decisions in politics are taken on the basis of the balance of power, let us not forget that.

In this sense, therefore, to say that I am optimistic, but with a sense of restrain, about the future of Europe.

ATHENS AND MACEDONIAN NEWS AGENCY: I understand that the debate on the next day of Europe has been on a large scale on your agenda. However, primarily I want you Prime Minister and your Italian counterpart in particular, to return to the subject of the economy. You mentioned at the beginning of your speech a very large investment: that of the Italian national Railways with TRAINOSE. And I want to ask you if it is an investment, which is the beginning of a series of investments in our country and how you view this, what economic prospects you see in both countries and in Europe.

ALEXIS TSIPRAS: The truth is that it is a very important investment. And I would say it is the beginning of a series of very important Italian investments in the Greek economy. I have already mentioned some of them. It is well known that Italy is our most important trading partner with over 6 billion Euros per year. And, of course, this important position that Italy holds in Greece as well as Greece holds in the Italian economy – and we want Greek businesses to become more active and strengthen our place. We aim at reinforcing our economic relations. And these agreements that we have signed today, are the foundation for further enhancing trade and economic transactions.

Allow me, however, to say a few words more about the agreement signed between TRAINOSE and FERROVIE DELLO STATO. The TRAINOSE case has been a concern for us for many years, not only as a privatization process, but as a process that should have gone ahead, in order for the Greek State to avoid a loss of many millions of Euros because of the many fines that were imposed by the European Commission in relation to Competition in Greece, fines of EUR 700 million. So it is not only the price itself. Most importantly, we have escaped a great financial burden. The responsibility, apparently, did not belong to the management by the current government. And not only have we escaped from this burden, but, and this is the most important part, the Italian side is not here just to buy, because the price is not such a great value for us – nevertheless it has a certain value – but the great value lies in the size of the investments the will be made in the Greek Railways, at the height of 500 million Euros, at a time when there is a need to provide a reliable and responsive railway network for our citizens. This is the first part.

Secondly, this is a time when the Greek economy is thirstier than ever for investments, because investments create new work positions. And our main goal, the most progressive one might say in a country that comes out of such a devastating crisis, is the strategy on creating new jobs. Work itself and the reclaiming of that right is in fact the most progressive policy that can be put forward at this time, along with, of course, our efforts to heal social wounds and lead to a model of fair growth.

So, I believe today is a significant moment that opens a very important road for investment and for further trade and economic cooperation between the two countries.