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Home arrow newsitems arrow Former ECB President Truchet on Greek Economy+: Jobless must not pay for Insiders !...

Former ECB President Truchet on Greek Economy+: Jobless must not pay for Insiders !...

Written by ACM
Tuesday, 14 January 2014
truchet_with_kallas_400



*Strasbourg/EU Parliament/Angelo Marcopolo/-
Almost agreing with the incoming EU Chairman-in-office for 2014, Greek Prime Minister Antonis Samaras' famous Formula about  "acting in favor of the Unemployed People and in order to redress Injustices", as he has repeatedly stressed, both to Journalists in Brussels, including "EuroFora", during the latest December 2013 EU Summit, (Comp. various "EuroFora"s NewsReports from that Brussels' Summit), as well as later-on, duringa joint Press Conference with EU Commission's President Baroso at the beginning of January in Athens, (etc),  he experienced and Historic ECB President, Jean-Claude Truchet, a French Socialist, launched a call for Poor People not to pay with harder Sacrifices than those who are well off, particularly at the State sector, as he said, stressing that this is "essential" : 

He was speaking at EU Parliament's Economic Committee, earlier Today, in one among a series of Hearings organized by the 2 Co-Rapporteurs on the controversial issue of IMF/ECB/EUCommission "Troika"s role in EU Countries under Program Aid, vice-President Othmar Karas from Austria (EPP) and Socialdemocrat MEP Liêm Hoang Ngoc from France, (see his statements to "EuroFora" infra). 

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   -"On Greece, I would simply say : Continue to ReStructure the State !", he stressed from the outset.


 - "Because the problem of the way that the State functions in Greece, .... "...is something absolutely Essential !", Truchet underlined.


This concerns i.e., not only, but "both the non-perceived Taxes, and the Structural Reforms in general, I'm speaking, mainly, about the Civil Service", he explained.
(I.e. the notorious problem of the surnumerary, often counter-productive Cushy Job holders and/or abusive or even corrupted Political Lackeys, scandalously appointed during the 1981-2011 Years which provoked that Huge Debt, by former Clientelist/Nepotist Governments, mainly of PASOK+ : Comp. relevant "EuroFora"s NewsReports from December 2009 at Bonn, Germany, until recently),
   
- F.ex. "Greece had a -16% Deficit in Current Accounts (Foreign Trade), and it has to arrive from -16% to  0% : That's a Huge Effort, there is no doubt about it !". And Greece "really does that principal Effort, from a Quantitative point of view, but not yet in Qualitative terms".

  - "Given from where it started, I think that " the Main Problem (as I've already said) is that Efforts must not be done exclusively by the "Outsiders"',  Truchet stressed.


    - "This is true for Greece, as well as for any other Country". F.ex. "when you find a Country where there are too many Jobless Young People, this practically means that those who already have a Job are too much protected, while, on the contrary, there is not enough care (we don't care enough) for those who don't have a job" (i.e. the Unemployed), he criticized, as a matter of general principle.   

                                                                                                                                                                                           
- "Otherwise, we wouldn't have all that enormous Difference between the Insiders and the Outsiders",


=> "This is an absolutely Major Problem ! ", Truchet stressed. "We don't have always to undertake all those adjustments" that some did. "But, if it ever occurs, =>  "I think that this is an Essential Problem".

    - "Even for those Countries which didn't have to do any Major Adjustment". + "I consider it to be Abominable to have in Europe Countries where there is not a big difference in Unemployment between those who are Young, and those who are less, (i.e. Aged Workers), but also other Countries, where there is such a Huge Difference""It's ourselves that we are provoking that : It's our Rules, the lack of Structural Reforms, etc", he added.


- "This is an Essential Problem", the experienced and Historic ECB's President reiterated  in Conclusion.
-----------------


    This was the main thrust of Truchet's reply to a question raised by experienced Greek MEP Rodi Kratsa, who had mainly pointed at the fact that, despite recent Progress made by Greece with several *converging Economic achievements, (See f.ex. EU Commissioner Rehn's reply to another Kratsa's question, yesterday : ....), nevertheless, the problem raised by the fact that the remaining Debt was still too heavy compared to the Country's c urrent GDP, while also productive Businesses often complain of the lack of accessible Loans, on equal terms as in other Program Countries, which are needed in order to develop production and Growth. Therefore, she had asked for his advise about what he believes that should be done for a better solution.


    While some might think that Truchet would have avoided to reoky to those concrete points raised by Kratsa, in fact, it seems more likely that he gave, indirectly but surely, an answer also to that : Simply because, without all those surnumerary, counterproductive and often unpopular civil servants, scandaloysly appointed by Clientelist/Nepotist former Governmenrts since 1981-2011+, Greece wouldn't have neither any problem of excessive State Debt, (since it wouldn't have to still pay all those Salaries, Pensions, etc)


------------------------
    The move was added to a previous observation by Truchet, about the fact that the main cause of the problems faced in certain European Countries during the Global Crisis, was particularly due too their inobservance of the "Stability and Growth Pact"'s conditions in the Past , in addition also to issues of lost Competitiveness.


    F.ex., already back on "2007-2008", "in the previous years, Public Sector Salaries had been augmented, in some EU Countries, up to + 117%, and in the average about + 35%, while  in Germany it was just +25%  : We should have avoided that !", he denounced.


--------------------------------
+ General €uroZone issue : Bridge the Competitiveness' Gap !
-------------------------------------------------------------------


    + Referring earlier to all €uroZone Countries in general, Truchet stressed that, already "since 2005", it had started to become obvious that growing and big Differences in Competitiveness were emerging fast, almost everywhere between various European Countries, even just before the Global Crisis, which had started initially in the USA, i.e. with an America epicentre, while it arrived afterwards in Europe, where its epicenter moved later-on, so that something had to be done in order to  bridge such Gaps.


    => Speaking later with "EuroFora", Truchet, agreed that, indeed, he remembered also the relevant Fact that (as we reminded) even the IMF had issued, during the 1st ECB Summit for the 10th Anniversary of the €uro, back on 2008 in Frankfurt, (where "EuroFora"s co-Founder had participated in Press Conferences, etc), its Report for Europe, which mainly  denounced the fact that Fragmentation and Division of €uroArea between various levels of classical Economy, with huge Competitiveness and/or Productivity Gaps, could prove to be one of he biggest modern problems, warning the EU that it'd better try to resolve it..


------------------------------------


    + Replying to an "EuroFora"'s question on Truchet's observation, EU Parliament's co-Rapporteur on the "Troika", French Socialist MEP Liem Hoang Ngoc, preferred denounce the fact that "... considering what Reforms Greece has done in the Work Market, it should have become now one of the most Competitive EU Countries !", as he said, smiling.. .


    He made it, however, clear, that, by saying that, he focused mainly on the Private Sector's Job Market, and not at all on the Greek State/Public Sector's Employees....
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(../..)

(NDLR : + Fast Translation from the Original, often in French or Greek, etc)

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    The incoming Swedish EU Presidency (July-December 2009) may still remain in favour of Turkey's controversial EU bid, despite June 2009 EU Elections' results, but it has "very strong demands on Turkey"'s obligation to respect EU Rules, said the Head of Swedish Foreign Ministry's Press Service, Cecilia Julin, to "EuroFora", reacting to critical Press reports.

    - "I know (that) the link is often made also to Sweden's position on Turkey"'s controversial EU bid. Indeed, "we (Swedish EU Presidency) are very much engaged in the future membership of Turkey, but not without fullfiling all the Criteria".

    - "It's very clear that we (Swedish EU Presidecny) have very Strong Demands on Turkey, in a sort of concept for Future membership of the Union, ...which will be a Long Process...", she stressed.

    This means, in particular, "the Copenhagen Criteria (on Human Rights, Democracy and Rule of Law), and also the adaptation to the Acquis of the European Union".

     - "If you listen to what Mr. Bildt (the Swedish Foreign Minister) says on Turkey at different occasions, it's very clear : We want Turkey to become part of the Union, in the Future. But we want it to fullfil all the Criteria : The Acquis of the European Union. That's very clear", she concluded.

    The Senior Official of the Swedish Foreign Ministry was reacting to critical Press Reports, from Brussels' Journalists invited by EU Commission's secretariat to Stockholm, who claimed that Bildt was abusing of a ..."Whip" (sic !) against Cyprus, by "threatening" the presence of UNO's Peace-keeping force at the "Green line" which separates the island's Government-controlled areas from the territories occupied by Ankara's army, if Nicosia didn't accept any political solution, regardless of Turkey's demands, before the end of 2009.

        Governing AKEL Party's new Secretary General, Andros Kyprianou, reacted by declaring that no-one can threat the People of Cyprus : -"We shall decide for our Future, and nobody else",  he reportedly said, asking to "keep calm". "In order to find a Solution soon, certain basic Principles must be respected", he stressed, calling those who feel an urgency to use their influence on Turkey. Other Political Parties were more critical.

    This was a reference to recently reported statements by Turkish Minister Bagis, Prime Minister Tayip Erdogan and Turkey's National Security Council (a Military-Political body), accused to push towards a partitionist "2 States" solution, contrary to UNO SC Resolutions for Cyprus' reunification.

    December 2009 is a crucial moment for EU's appraisal of Turkey's controversial EU bid, because EU Council has decided to review then Ankara's compliance with the European position on the recognition of Cyprus' Government, which was clearly set out by an EU reply of 21 September 2005 to Turkish Prime Minister Tayip Erdogan's claims, refusing to recognize even the existence of EU Member Cyprus, in controversial statements he made to London (former EU chair) on July 29, 2005.

    EU Parliament's latest Resolution on Turkey, adopted on March 2009 in Strasbourg, warned Ankara that "the non-fulfillment of Turkey's commitments... by December 2009, may further seriously affect the process of Negotiations" with the EU.

    In practice, the issue boils down to Ankara's "embargo" against Ships and Airplanes using Cyprus' seaports or airports at the strategic EU island, which traditionaly hosts one of the World's biggest Shipping flags. EU has already "freezed" 6 relevant Chapters in EU - Turkey Negotiations since December 2006, after Ankara refused to fullfil a commitment it had undertaken when EU had decided to open controversial "accession" negotiations with Turkey, back on December 2005.

    - "As far as EU - Turkey relations are concerned, it's clear that Turkey needs to fullfil its obligation of full, non-discriminatory implementation of the additional Protocol (to "EC-Turkey Association Agreement"),  This is an important issue....and should be addresseed as soon as possible as it clearly affects the pace of the accession negotiations.Issues covered by the Declaration of September 2005 will continue to be followed up, and progress is urgently awaited", warned earlier in Strasbourg the out-going Czech EU Presidency (former vice-Prime Minister Alexander Vodra).

    But the Head of the Swedish Foreign Ministry's Press Service, Cecilia Julin, dismissed "interpretations" by "some" that Foreign Minister Carl Bildt was reportedly "threatening" Cyprus with consequences on the UNFICYP, if it doesn't accept any solution until December 2009, while Turkey is reportedly delaying in an attempt to impose a partitionist "2 States" solution.

    On the contrary, Julin, stressed that "Sweden has strong demands on Turkey'"s respect of "Copenhagen Criteria and EU Acquis".

    Meanwhile, Sweden  is "concerned" about the risk of "Stalemate" in Cyprus' Talks, but is well aware that "the main responsibilities lie with the two leaders and the UNO", Europe playing only a role of "facilitator".

    After carefully verifying, the Head of Swedish Foreign Ministry's Press Service, stressed to "EuroFora" that Bildt's reference to UNFICYP "was not linked to a Threat", and dismissed those who "interpreted" it so.

    On the contrary, the Swedish EU Presidency acknowledged the fact that Peace Talks are mainly for the UN and the leaders of the Cypriot communities, EU's role being limited into that of a "facilitator".

    As for Turkey's reported attempts to impose a "2 States' solution", the Head of the Swedish Foreign Ministry's Press Service sharply replied by stressing that Turkey must respect the "EU Acquis" rules.

    In particular :

    - "Basically he (Bildt) underlined that it's the leaders of the two communities in Cyprus and the UN that have the main responsibilities for solving the problem", started to say the Swedish Senior Official to "EuroFora", referring to the above-mentioned "briefing".

    - "But the EU had a role in sort of pointing out the benefits and facilitating a little bit the outcome for the settlement of the whole Cyprus' issue", she added.

    - "And he did state the Fact, that the rest of the World (i.e. USA, etc) will, of course, look at the differend issues which are at the table, and the future of the UN Peace keeping force is part of what is at the table", she admitted.

    - "I understand that some have interpreted that as a Threat, by the Swedish Minister" "But", in reality, "it's a statement of a Fact, that, when we'll look at the differend issues, one of the issues on which we shall have to take a stand on, is the future of the UN Peace keeping force in Cyprus".

    Indeed, one of the questions usually raised for a Solution of Cyprus' issue is what International and/or European or other Guarantees, by a Peace-keeping force, might be needed afterwards, eventually for a transitory period.

    Questioned anew by "EuroFora" whether (according to critical Press Reports) this could be taken as a veiled warning that, if Cyprus didn't accept any Turkish demand for any solution whatever, it might be left alone to face Ankara's Military Invasion/Occupation, she denied :

    - "He (Bildt) didn't say it in that way"... "It was not linked to a threat, or anything like that", the Head of the Swedish Foreign Ministry's Press Service stressed.

    On the contrary, "he (Bildt) underlined that the main responsibility lies with the parties concerned on the island". "The EU can try to facilitate and show the benefits of reaching a settlement. But also, when the EU and the rest of the World (i.e. USA) will have to look at it, they will look at all the Facts on the table, and the presence of the UN Peace-keeping force is one".

    And "he (Bildt) didn't speak about that at all", she replied to "EuroFora" question on Turkey's reported attemps to impose, in one way of another, a partitionist "2 States solution".

    Asked whether Bildt's aim was to incite both parties to move forward efficiently, she agreed :

    - In fact, "the EU is really very concerned with the Stalemate in the situation. Yes !", the Head of Sweden's Foreign Ministry's Press Service anounced. That's why Bildt "was hoping for the two parties (i.e. for Turkey's also) to engage and break, a little-bit, the present stalemate, come to a solution of the issue" of Cyprus.

    But, replying  to a "EuroFora"s question on the risk, denounced by several politicians in case of strict Time Deadlines, for Turkey to provoke a stalemate and wait for the time to come to impose a partitionist "2 States' solution", she reacted by pointing at Turkey's obligation to respect "EU Acquis" :

    - "Turkey must fullfil the EU Acquis : That's clear !", the Swedish Senior Official stressed.

    More details are expected when Swedish Prime Minister Reinfeldt will debate his Programme with new MEPs at EU Parliament's plenary mid-July in Strasbourg, that he has visited already in 2008.

    Foreign Minister Carl Bildt became familiar with Strasbourg's CoE last year, when Sweden chaired the PanEuropean organization of Human Rights. As EU chairman-in-office, he will also chair the 27-member States strong EU Group inside the 47-member States strong CoE.

    Minister for EU affairs, Cecilia Malmstrom is well known at EU Parliament, where she has been an active MEP of the Liberal Group for many years, following also Press Freedom issues.

    Both have already made various statements at "EuroFora", on differend topical matters.

    ***

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