From: karadimc@enuxha.eas.asu.edu (Anton Karadimce)
Newsgroups: soc.culture.greek,soc.culture.yugoslavia,soc.culture.europe
Subject: "Greece - An EC Pet" - A Le Monde Article
Date: 15 Apr 92 00:51:16 GMT
Organization: Arizona State University

From "Nova Makedonija", April 5, 1992, page 19

[The article originally appeared in Le Monde, prior to the above date]

Note: The "Nova Makedonija" translation may be a reduced version 
of the original "Le Monde" article.
     
[reprinted without permission, translated by A.P.K.]
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The anatomy of Greek admission to EC

GREECE - AN EC PET

	o After extracting maximum subsidies from EC and after
        having artificially high standard of living, Greeks 
        realize that their country gradually comes under control
        of EC experts and multinational companies.

	"Greece without competition won the last place in the EC",
writes one journalist in E Kathemerini, a very serious Athens'
daily. As opposed to this, according to Mr. Theodoris Pangalos,
state secretary for European questions in the socialist PASOK
government from 1983 to 1989, "the worst members of EC are those
who obstruct the progress toward greater European integration.
Britons, for instance, are much worse than Greeks."

	Greece, "the last-place holder" and "the bad student", is
commonly taken as an example that should not be followed. In the
last decade, Greece first had the next-to-last place in EC, then
Portugal tied Greece, and finally Greece occupied the last-place
position alone. Nevertheless, Greece is a country with no poverty
for more than 20 years. But this is not the smallest paradox of
the most untypical EC country whose citizens openly show their
allegiance to Europe.

	Devastated in WWII and in the Civil War (1940-1949),
Greece slowly heeled its wounds. In 1947 Greece came under the
U.S. sphere of interest, joining NATO in 1952. Under the regime of
Konstantin Karamanlis Greece became an associate member of EC on
July 9, 1961. However, "the long night of the colonels" (1967-1974)
froze the associate membership until September 1974. 

	To strengthen the young democracy while keeping distance
from the U.S., which could not prevent the Turkish invasion on
Cyprus (July-August 1974), Mr. Karamanlis asked for full
membership in EC on June 12, 1975. In less than 6 years (the EC
record), Greece became the 12th EC member on January 1, 1981.
Communist and socialist opposition were mainly opposed to Greek
membership in EC. Only the Internal Communist Party of Greece 
foresaw a factor of modernization and stabilization of democracy 
in the country's membership in EC. 

	Ten days after Jan. 1, 1981, socialist PASOK came to
power. Although PASOK began a campaign for getting out of NATO and
EC, socialists soon realized the possible benefits of the EC
membership. As opposed to ministers Pangalos (European questions)
and Simitis (economy), who had strong European orientation,
Prime Minister Andreas Papandreu had other matters in mind.
According to the journalist Richard Someritis, "PASOK convinced
the Greeks that they have all the rights. Everything being taken
from EC was a right with no implied obligation". According to Mr.
Alexandros Velios, a political commentator of a private radio
station in Athens, "Greek EC membership became a synonym for
subventions". Indeed, Greece from 1981 to 1990 received from EC
over 18 billion dollars [boy! - sorry, couldn't resist - APK].

	The socialists believed that the EC help allowed the
country to pull out from chronic underdevelopment, especially in
rural and peripheral areas. Conservatives from New Democracy on
the contrary believed that EC money are not wisely and
purposefully spent. After coming to power in April 1990, the New
Democracy government decided to take Draconic measures. Mr.
Leonidas Kirkos, a former leader of the Communist party, says: "In
the beginning, New Democracy played hard. Since then, its play has 
softened. Only the Prime Minister remains an optimist." For
instance, even Mr. Eftimios Kristodoulis, economy minister until
last month, is a pessimist. Although he insinuates mostly the past 
socialist regime, he also admits that "it is very difficult to 
shrink the state economy and to strengthen the private sector." 
From the offered for privatisation state companies, only four small 
companies were privatized. Mr. Kristodoulis adds: "I fear a social 
explosion. We cannot apply the Brasilian recipe. In 1992 we must 
give absolute priority to private, Greek, and foreign capital 
investment."

	However, advise from EC and OECD is not applied well.
Instead of fighting the widespread tax evasion and the parallel
(black) economy (which amounted to 15% of GNP in 1981 and to 35% of
GNP in 1990), the government got involved with pension problems, 
social security, prices in the public sector, freedom of press,
the right to strike, and student movement. The outcome of these
efforts consisted of an one-month general strike in September
1990, and student demonstrations with six casualties.

	Situated between East and West, Greece is a victim of
the isolation syndrome. Mr. Kristos Sartsetakis, Greek President
from 1985 to 1989, spoke of a "nation without a brother." One
after another, all Greek colonists abroad returned to the
motherland. Greeks feel alone in a hostile environment: problems
with Turkey, Macedonian irredentism, the civil war in Yugoslavia
since June 1991.

	An enclave of 10 million inhabitants in the Slavic and
Turksih-Muslim-Arab worlds, Greece "wants to emerge from its
thousand years long isolation", says Mr. Richard Someritis. Athens
initiated Balkan cooperation talks in 1988 and 1989, but nothing
came out of it. Reaching a long-lasting agreement with Turkey has
been postponed. Mr. Mitsotakis believed that the Cyprus problem
would be solved.

	The relationship with the northern neighbors are not
encouraging. Greece refused to accept the refugee wave from
Albania. Those who could not speak Greek were mercilessly returned
to Albania. On the other side, good relations with Sophia, aimed
against Turkey, could be jeopardized at any moment because of the
Macedonian question. Athens does not accept the existence of the
Macedonian identity. "Macedonians are Bulgarians or Serbs. In
Aegean Macedonia there are no Macedonians." When Turkey is in
question, Greece supports Bulgaria. But, when Yugoslav Macedonia 
is in question, Athens chose to side with Belgrade, while 
Bulgaria chose to side with Croatia. In the new situation Greece
is faced with multiple dangers along its borders, so that a number
of Greek military units has been in a state of increased combat 
readiness for several months.

	In this context, Greek EC membership delivers little 
consolation.  Even PASOK, which dealt successfully with Europe, added 
much "Mediterranean flavor" to EC. Mr. Papandreu's government fought
in EC for funds aimed at realization and adjustment to EC
Mediterranean programs. Thanks to Mrs. Vasa Papandreu, a person in
charge for social policy in EC Brusseles committee, Greece is among 
the leading EC countries in social policy.

	EC generosity foremostly made Greek farmers richer, thanks
to the pricing policy, says Mr. Yiannis Karghiotis, a long-time
manager of an agriculture company in Trikalla. However, the
socialist government frequently avoided to state that the
subsidies are funded by EC and not by Greek government. 

	As opposed to other EC members, Greece is still not
regionalized. Everything goes through Athens. Mr. Germidis, a
Greek ambassador in OECD, says: "Regions in Greece cannot have
their word heard in Europe directly, although, for instance,
northern Greece provides 60% of Greek exports." Despite all that,
in the negotiations of March 1990, Brusseles decided to approve
a new 2.2 billion ECUs to Greece, under 22 conditions. These
conditions are much tougher than conditions usually imposed by
MMF, emphasizes an old Greek banking expert.

	After the first batch of 1 billion ECUs, given to Greece
in February 1991, the rest of the credit depends on the following
conditions: lowering the inflation from 23% in 1991 to 10% in
1993, lowering the public deficit spending from 21% GNP in 1991 to
10% GNP in 1993, creation of an yearly emergency state fund of 1.6
billion French francs, tax reform, cutting the administration for
10%, etc. However, EC sources and sources in Athens share the
doubts about Greek economic recovery.

	Mitsotakis' government has many weak spots. New Democracy
fired all officials and diplomats appointed by PASOK, without
bringing adequate replacements. In the budget the government
included 350 billion drachmae from the sale of state companies,
but only 10% of the sales was actually realized.

	After extracting maximum subsidies from EC and after 
having artificially high standard of living, Greeks realize that 
their country gradually comes under control of EC experts and 
multinational companies. The latter have already bought a number
of companies. Nevertheless, it is not fair to compare Greece with
countries of northern Europe. History and geography of Greece
have created a specific Oriental-Balkan mentality. Faced with new
regional challenges, Greece is not ready to successfully address them, 
economically or politically. Among these challenges are: the
implosion of Yugoslavia, other political changes in the Balkans,
the resurrection of the Macedonian problem, the regional
superiority of Turkey, and the dissolution of the Soviet Union.
Greek leadership once again finds itself in a weak position, at
the time when essential changes occur along Greek northern
borders.
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Disclaimer:  
	The article above is provided for the benefits of the
readers of this newsgroup. It can not be assumed that the author of 
this posting, or his organization, share the views expressed in the
article. 

========================================================================

This article seems to paint a rather grim picture of modern Greece.

Regards,

Anton P. Karadimce