Sticking to economic bailout agreements was essential for building trust with the troika and for securing changes “in the interest of jobs and job creation”, Taoiseach Enda Kenny advised his Greek counterpart, Antonis Samaras, on an official trip to Athens yesterday.
“We have built up a sense of trust and a relationship with the troika, in that we are able to change elements in the memorandum of understanding and the conditions set out in it,” said Mr Kenny, on the first visit by a leader from a fellow bailout country to the Greek capital.
Speaking after their hour-long meeting, which took place within the broad framework of Ireland’s European presidency, both leaders said they had touched on numerous issues raised at the previous evening’s EU summit in Brussels, such as proposals for a banking union and measures to combat tax evasion.
Turning the page
But as was clear from their statements, the purpose of Mr Kenny's visit was more about underpinning his fellow centre-right leader's assertion that Greece has "turned a page" and was now open for foreign investment and privatisation opportunities.
Greece is now in its sixth consecutive year of recession, with unemployment hitting record highs and citizens squeezed by pay cuts and tax hikes.
Live on state television, the Greek leader repeated his belief, based on recent improvements in some economic indicators such as the country’s balance of payments, that the catchphrase of a “Grexit”, a return of the country to the drachma, had been replaced by that of a “Grecovery”.
“We are turning Greece into a business-friendly country. We are providing, instead of red-tape treatment, red-carpet treatment for investors,” said an upbeat Mr Samaras. He praised Ireland as a model for Greece on how to exit the crisis and return to the markets.
“Ireland is showing the way and that there is an end to this road. We know that Ireland is on the track to recovery and is almost ready to fully return to the money markets,” said Mr Samaras.
Irish model
He repeatedly stressed that improving competitiveness, opening up to investment and lowering tax rates – which he said were hallmarks of Ireland's economic recovery model – were necessary for Greece to be in a position to match Ireland's performance, adding that it was his aim to introduce a flat-rate tax of 15 per cent when the country had made its recovery.
