Papandreou: "Greece is part of the solution"

"Greece is no longer a problem, but part of the solution to Europe's economic problem", said Prime Minister George Papandreou during a press conference shortly after the end of the Brussels summit.

In particular, the Prime Minister said that the government has been trying to combat the lending needs of the country as well as its deficit for some time now, and that the government has managed to cope with these problems.

Papandreou says he is delighted by the prospect of creating a permanent mechanism of financial crisis handling, noting that Greece has been in favour of this proposal from the beginning. ""Today, Greece has suggestions", the Prime Minister declared, and expressed his hope that in the coming weeks he will be able to reach a final agreement that will resolve, once and for all, the problems of Eurozone member debts.

Referring specifically to current debates, the Prime Minister noted that there were concrete proposals on the part of the Franco-German axis, but expressed some general thoughts and ideas. When asked if these ideas will mean further salary cuts in Greece, G. Papandreou underlined that this is out of the question, and that Greece will not be able to stand up to economies such as China and India with wage cuts. The only solution, he said, to counter the problems of the Greek economy's is to "invest in quality".

He stressed that 90% of the proposals put forth in the summit have already been implemented by Greece and added: "We have nothing to fear from these proposals. Greece has done its duty and whatever was discussed today will not bring about any new measures".

He also stated that the aim is to have more closely coordinated economic governance; however, he also stated that "one glove does not fit all countries".

Moreover, when asked on the issue of extending the amortization of loans to Greece, Papandreou noted that he takes this for granted, hoping that this is going to be accompanied by other positive proposals, e.g. the reduction of lending rates. He also mentioned that there are a number of other ideas which will be discussed in the next few weeks. Papandreou expressed his hope that the March 25 summit will provide a final resolution to the issue of European economic governance. The Prime Minister stated that the extension issue is part of a broader package of comprehensive solutions that will address the debt of Ireland, and possibly other countries.

When asked about early elections scenarios, Papandreou categorically denied the rumours, saying: "I have not heard these scenarios and this is not on my mind". Continuing, he stressed that the government will fullfil the entire four years of its term, making the necessary changes.

"We dare to make changes in the country. We know there are reactions", Papandreou said, emphasising that the government is committed to these steps and is determined to implement them through democratic dialogue and consultation.

When the possibility of debt restructuring came up, the Prime Minister reiterated that the Greek government has ruled this out, noting however that there are other possible choices related to the responsibilities that will be assigned to the European Stability Fund.

Finally, in terms of the plenary debate on energy security, the Prime Minister stressed the importance of developing renewable energy and the initiatives taken by both Greece and Turkey in the eastern Mediterranean in order to tackle climate change.

Mr. Papandreou mentioned that the EU must invest in innovation, new technologies and training on renewable energy, to develop a green economy that will make Europe more competitive. In this context, Papandreou said that the issuing of a Eurobond could possibly be used to finance energy the infrastructure. Also, the Prime Minister stressed the importance of supporting the infrastructure and pipelines and including provisions in the decisions for the island regions such as Malta, Cyprus and the Greek islands.