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Key Economic Data 
 
  2003 2002 2001 Ranking(2003)
GDP
Millions of US $ 173,000 132,834 117,200 27
         
GNI per capita
 US $ 13,720 11,660 11,430 45
Ranking is given out of 208 nations - (data from the World Bank)

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Update No: 117 - (22/02/07)

New man at the helm 
In the March 2004 parliamentary election, Kostas Karamanlis led the New Democrats to victory, securing 165 seats in the Greek Parliament. PASOK had administered the government since January 1996. Current PASOK leader George Papandreou served as foreign minister under Kostas Simitis.
Karamanlis benefited from the holding of the Olympic Games in Athens in 2004 just after assuming office. But he and his government have been doing a competent job so far.

New Democrats Still Tops in Greece
This explains why the governing New Democracy (ND) is still the most popular political party in Greece, according to a poll by VPRC released by SKAI Radio in February. 43 per cent of respondents would vote for the ND in the next election, exactly the same number as in January. 
The Pan-Hellenic Socialist Movement (PASOK) is second with 39.5 per cent, followed by the Communist Party of Greece (KKE) with 7.5 per cent, the Coalition of the Left and Progress (SIN) with four per cent, and the People's Orthodox Alarm (LAOS) with 3.5 per cent.
On February 12th the Greek Parliament rejected a no-confidence motion against the government put forward by PASOK. After the three-day long debate, Karamanlis discussed PASOK's motivation, saying, "I do not place personal and party interest above the interests of the country. Elections will take place at their proper time." 
This year, 2007, is the last year before the government needs to call elections; but the country has already entered a pre-election mood. 

Little scope seen for changes 
The majority of Greek voters do not believe the government has any organized programme of reforms and doubts that it will be able to make significant changes to Greece's economic, social security and education systems before its term is up, according to an opinion poll carried out for Kathimerini.
The survey, conducted by VPRC, suggests that 51 per cent of the electorate think the ruling conservatives "probably do not" have a comprehensive plan for reforms. This is the first time that the figure has passed the 50 per cent mark since New Democracy came to power in March 2004 on the back of promises of an ambitious agenda of reforms.
Almost half of the respondents (47 per cent) also said they do not think that the government's proposed reforms will materialize. Some 40 per cent of almost 1,000 people questioned believe that ND will be able to make the changes it wants.
These statistics are likely to worry Prime Minister Costas Karamanlis and his government as it enters its last year of power before having to call elections.
Karamanlis in private has urged his ministers to dispel talk of early elections and asked for ND's party conference to be held in July in the hope of sending a clear message to the electorate that he will not go to the polls early.
It appears that Karamanlis wants to see through several more reforms projects, such as shaping the future of tertiary education, before putting his party's popularity to the test in general elections.
He will likely be encouraged by the fact that the VPRC poll indicated that 47 per cent of voters agree that private universities should be allowed to operate in Greece, compared to 43 per cent who think that all universities should be state-run.
Equally, almost six in 10 respondents think that the Constitution probably needs to be reviewed - another of ND's projects - compared to only 20 per cent who do not think this reform necessary. 

Greece tackles problem of minorities; Turkey next 
With the visit by Foreign Minister Dora Bakoyannis to Western Thrace in early February, Greece has taken a major step in minority rights. Ankara should not lag behind in Athens' view.
When the draft law to improve the property rights of non-Muslim religious minorities was discussed in the Turkish Parliament, one of the main objections of the opponents of the law, including the Republican people's Party (CHP), was based on the principle of reciprocity. What they were saying was roughly this: "If the Greeks are not moving on with tackling the problems of Western Thrace Turks, why should Turkey move ahead with improving the rights of its own minorities, the Greek minority among them?" In fact the principal of reciprocity was one of the justifications President Ahmet Necdet Sezer used when he vetoed the foundations law last November.
Greece wants Turkey to relinquish its hold on properties once owned by the Greek community that lived in Turkey until the 1960s, while Turkey criticizes Greece's treatment of its Turkish minority, accusing Athens of violating their rights. In this context one would have expected the goodwill gestures of the Greek government towards the Turkish minority to make headlines in the Turkish press. However few noted the announcement in the last week of January by the government of Prime Minister Karamanlis that it was scrapping all back taxes owed by the Turkish minority on its religious property. This came only a few days after the unveiling of Greek plans to hire 240 imams, or Muslim clerics - a long-standing local request. 

Landmark visit from Bakoyannis 
Greece's new campaign found its place in the Turkish media only when Greek Foreign Minister Dora Bakoyannis paid a landmark visit to Western Thrace in early February, a smart move indeed to attract international attention to her government's new policy. Greeks still refrain from calling the minority "Turkish," instead preferring the term "Muslim." 
Nevertheless the measures announced by the government go beyond rhetoric. In addition to the goodwill gestures made public in January, during her three-day tour of Western Thrace Bakoyannis also announced further measures, designed to improve the minority's access to a university education and jobs in the civil service. 
"Now I am very curious as to what the reactions of the defendants of the reciprocity principal will be to these recent developments. Honestly I do not expect them to rejoice and say, 'this is what we have been waiting for. How can we lag behind the Greek government? We should immediately reciprocate.' " 
Obviously some among them may assert that Turkey's reciprocity-based policy has paid off. Has the Greek government really come up with these gestures in the hope that Turkey will do the same? Although Greek officials deny any link, it would be naïve to think that Greece launched its campaign independent of expectations vis-à-vis the Greek minority in Turkey. While announcing some of the measures, Greek Interior Minister Prokopis Pavlopoulos could not refrain from drawing some parallels with Turkey. Agence France-Presse quoted him as saying, "We are gradually addressing the omissions of the past and we are giving the best example to neighbouring Turkey… to do the same." 

Not just reciprocity: 
However, it would be wrong to assume that reciprocity is the only factor behind Greece's recent change of policy. According to experts Greece began the process in the mid-1990s. 
Those who follow closely developments in Greece agree that the main driving force has been the change in mentality that came with European Union membership. The Greek state and public opinion in the country has become more sensitive to fierce criticism voiced by prestigious human rights nongovernmental organizations and international organizations such as the Council of Europe. In addition, cases filed at the European Court of Human Rights are nearing decisions, and the expectation is that the court will rule against Greece.
Moreover, Ahmet Ilhan, the only deputy in the Parliament representing the minority, is in the ranks of the incumbent party, New Democracy. His friend from childhood, Evripis Stilyanidis, is deputy foreign minister. And New Democracy is after minority votes. These count as additional factors behind Greece's latest moves. 

'Reciprocity should be positive': 
The owner of the Voice of Thrace newspaper, Abdulhalim Dede, also agrees that the latest explanations by the government do more than just pay lip service to the minority. "Bakoyannis is from Crete. Cretans do not talk in vain. It has been a year since she became a minister. If she wanted she would have made these statements a year ago, but she has been working on this issue since then. She has met with Ahmet Ilhan a number of times." 
According to Dede, the reciprocity principle is only one of the reasons that moved Greece toward political change. He does not deny that Turkey's support for the Turks of the Western Thrace is essential for pressure to be put on Athens. However, he opposes the employment of reciprocity principle in the case of minority policies with the following reasoning: "Reciprocity should be used in a positive manner. If one offers 10 to the minority, the other should offer 20. However, it has been used in a negative manner by both countries." 
The Turkish foreign ministry released a written statement in mid-February and declared that even though the steps taken were or course very welcome, they have fallen short of sufficiency. 
At the end of the day, the problems of the Turks of Western Thrace will not be resolved in the near future. However, it is obvious that the Greek government is determined to solve them. Fortunately Greece says that this is a matter of its internal affairs and that it does not want to discuss the issue with Turkey. Otherwise, when Bakoyannis meets with her counterpart Abdullah Gül in the future, she might have said, "we have done this, now it is your turn." Greece is smart - it has passed the issue over to the EU. 

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ENERGY

Possibility to realise wind energy potential

Greece is particularly interested in sources of renewable energy and especially wind energy, Greece's Member of Parliament, Manolis Mavrommatis, said on January 16th in Strasbourg, New Europe reported.
EU Energy Commissioner, Andris Piebalgs, said, responding to a question by Mavrommatis: "About one-quarter of the Member States say the support of wind energy generation is incredibly low and does not allow for its practical use. About another quarter of the Member States say this support is adequate but there are mediocre results. That can be explained because of network and management obstacles. These issues continue to obstruct the wide use of wind energy in Europe," Piebalgs said.
Specifically the Greek MEP had asked to be informed "if the Commission was planning to adopt additional measures to boost units of wind energy generation. Also, if the Commission considers it essential to provide economic support to countries that can take advantage of wind energy, like Greece, Cyprus, Malta, Italy and Spain, at a very sensitive time for the environment."
In his response, the energy commissioner said that "regarding financial support, demonstrative wind energy projects have been financed since 1983, when the corresponding technology had just been launched. This is also going to be supported in the Seventh Framework Programmes in research and technological development initiatives for the period 2007-2013. Moreover, the Commission will continue to provide financial support in the development of renewable energy, including wind energy."
Particularly in Greece, there is an increased interest to invest in sources of renewable energy and especially wind energy. Investments of 2.5 billion Euro are expected up to 2010. Greece is at the eighth place in use of wind energy among the 25 Member States of the EU. Germany has the number one spot, followed by Spain, Denmark, Italy, the Netherlands, Austria and Portugal. Today, the percentage of wind power, around five per cent, is considered relatively low, given that 58 per cent comes from thermo-electric plants, 19 from nuclear power plants and 18 per cent from hydro-electric plants.
"The Commission plans to produce a progress report in 2007, evaluating the progress in Member States regarding their support of electric power generation from renewable sources. The need for further advancement of wind power is also going to be addressed, among others, in the upcoming renewables road map that is expected to be published in 2007," Piebalgs said in his response.

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EXPORTS

Rise in Greek exports anticipated

The value of Greek exports is expected to reach 9.8 percentage points of GDP this year, national economy and finance minister, George Alogoskoufis, said recently, opening the 10th conference of the National Exports Council. Alogoskoufis said despite the increase, "we must not be complacent," explaining that the increase in exports' contribution to GDP anticipated in 2007 to 9.8 percentage points against 8.8 percentage points in 2006 was nevertheless smaller than the proportion recorded in 2000, ANA reported.
According to figures released during the conference, covering the 10-month period January-October 2006, Greek exports to Russia rose by 20.6 per cent, to Turkey by 24.7 per cent, to Bulgaria by 31.6 per cent, and to Romania by 46.8 per cent, while they jumped by 60.8 per cent to Japan and 65.0 per cent to China. Alogoskoufis further said that an increase in exports to the US, Australia and India would also be sought. The minister explained that consumers, at an international level, demanded diverse and quality products, adding that more efforts needed to be made in that direction "because we have a relative lack of Greek brand name products." Speaking more generally, Alogoskoufis said that, in addition to exports, tourism was also going well and foreign investors were returning to Greece, while the public finances were also improving continuously.

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FOREIGN RELATIONS

Karamanlis receives visiting Chinese dignitary, US senators

Greek Prime Minister, Costas Karamanlis, on January 30th received China's State Councillor and Secretary General of the State Council, Hua Jianmin, New Europe reported.
A day earlier, Karamanlis had received a high-ranking delegation of US senators, as talks touched on the Cyprus issue, Afghanistan and bilateral trade ties. Senator Gordon Smith (R-Oregon) later told reporters that "all democracies feel at home in Greece, and when our embassy was attacked, we felt as if Greece itself had been attacked ... we greatly appreciate your government's reaction to the recent incident against our embassy." He also referred to the millions of Greek Americans in the US and the role they played.

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