Αθήνα, 5 Οκτωβρίου 2006


I am delighted to be here tonight to partake in “Eurochambers” annual Congress as your guest speaker. This is a truly unique forum of more than 50 Chamber networks gathering to learn from each other, exchange views, and debate.

I would like to thank the Thessaloniki Chamber of Commerce and Industry, the Union of Hellenic Chambers of Commerce and Industry and “Eurochambres” for their kind invitation.

The world of business and the world of politics have a common, vested interest in the future of Europe. We have many common interests, and we certainly share many common goals.  

We share a common vision for a competitive Europe. 

Six years ago in Lisbon, we formulated an agenda for creating the most competitive and dynamic knowledge-driven economy in the world.

This agenda has yet to produce the desired results of fostering innovation, growth, sustainable development, and full employment.

Our efforts are spearheaded by businessmen and businesswomen such as you; individuals who wish to operate within a free and fair economic environment, covering the whole of Europe.   

Τhe European Union today is undoubtedly at the crossroads.

Some analysts even talk of a crisis.

But crisis is far too strong a word for me, as I believe in the resilience of the European Union.  

In 2004, we welcomed ten new members to our Union.

It was a historic moment for us all; a development for which we are all very proud. Greece, in particular, has worked systematically for the Union’s expansion to the East, as well as to Cyprus and Malta. 

The last enlargement has increased the Union’s population by 20%; yet Europe’s wealth, her GDP, increased by a mere 5%.

While expanding, the Union is also struggling with institutional architecture. Making a group of 25 or 27 countries work is naturally very different from operating a Union of just 15. The “democratic deficit” remains a capital issue, as the citizens of Europe find it difficult to relate to her institutions.

In recent years, we have also been witnessing a slowdown of economic growth in countries such as France and Germany, which had been the locomotives of Europe and are still capital economies in the Union. Unemployment has been soaring in many member-states for a long period; yet, recent data point to its decrease.

The sustainability of the welfare state and of the famous “European social model” are constantly being questioned. In some countries social tension has escalated on a number of occasions.

But Europe has always found ways to surmounting the various crises.

“The Chinese,” John F. Kennedy used to say, “use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity.”

In other words, dear friends, in a crisis one must be aware of the dangers - but never miss the opportunities.

In Europe, we have spent over sixty years minimising risks and maximising opportunities.

The exercise has been a success. 

We have achieved a lot.

Most of us in this room can only imagine Europe’s state of devastation 60 years ago. This is the outcome of an unprecedented experiment which, roughly, began after the war.

The construction of a new European edifice was a powerful expression of the pan-European desire to put an end to the series of wars on the Continent.  It was a successful attempt to tie former enemies together with bonds of common interest and shared goals that would cement friendship and remove the threat of war.

As the European project evolved, so it took different names, reflecting the various stages of its evolution: the “European Community of Steel and Coal”, reflected the need of placing two products central to the Franco-German confrontations of the past under a joint authority; the “European Common Market”, later in the fifties, represented an expansion of the original idea to include most products and services, as well as to forge a common economic frontier vis-à-vis the rest of the world; the “European Community”, in the seventies, was the result of the partners’ becoming more conscious of the political as well as the economic nature of their partnership, and, finally, the “European Union” following the “Maastricht Treaty” in 1992, reflected our common desire to further deepen our political commitment to Europe.

As the original European Common Market started deepening, so it expanded from the original six members to nine in 1973; ten, with Greece acceding in 1981; twelve in 1986; fifteen in 1995 and twenty five in 2004. Two more countries are expected to join in 2007, thus bringing the total number of EU members to twenty seven.

Indeed, the greatest, and most successful, post-war exercise in conflict prevention has been the progressive enlargement of the EU.

Let me add, that the signing ceremony for both the last two expansions of the Union took place on Greek soil, under Greek Presidencies of the European Union.

The last vast expansion, which reunified Europe after the fall of the Soviet block, took place under the two thousand five hundred years old Acropolis, symbol of Democracy.

Athens has thus written a new chapter on the history of democracy and democratic alliances on our continent. 

Today, the EU is the world's largest economy, as well as the world's biggest marketplace.

According to World Bank data, in 2005 it had a combined GDP of more than 12 trillion dollars, slightly larger than that of the United States.

It is also the world's biggest trading power, accounting for a share of global imports and exports three times larger than that of the United States.

The EU and its Member States offer nearly 55% of all international development assistance, and a full 66% of all grant-aid.

The European Union has, directly and indirectly, consolidated democracy in Spain, Portugal and in my own country, Greece.

More recently, it has had the same effect for vast parts of Eastern Europe.

As a second generation of Europeans has come to form the majority of the Union’s population, some of the stunning achievements of our Union seem to be taken for granted. Yet, never before had Europe experienced such a long period of peace and prosperity.

People, goods and services circulate freely among the member-states. For the very first time our citizens develop a “European consciousness” along their respective national identities; and the blue-and-gold European flag flies next to our national flags.

This consciousness, as Eurobarometer polls indicate, stems from two basic sources: a sense of a shared past and one of a shared future.

According to the European Values Survey, there are distinct beliefs that most Europeans share:

·          A deep-rooted support for Democracy,

·          A balance in their support of the Market Economy and Social Justice respectively.

·          Likewise, Europeans, while strongly endorsing competition, display at the same time an even stronger support for the Welfare State.

·           They also display a shift from traditional values, such as law and order, material security etc., to post-material values, such as self-expression, the quality of life, openness, and tolerance.

·          They share a deep-rooted belief that human rights are inviolable and that no other priority can supersede them.  

“An ever closer union among the peoples of Europe” is one of the stated purposes of the Treaty of Rome. The line can also be found in the Maastricht Treaty, which also points to a – and I quote- “new stage in the process of European integration”.

Indeed, talk of a United Europe or a United States of Europe, if you prefer, dates several centuries back and was first recorded in a proposal made by King George of Bohemia in 1464.

Yet, in the past decade and a half we have taken more steps towards a political Union than in the last five centuries combined.

Since Maastricht, Europe has been on a sprint. Many like to compare the European Union to a bicycle: if it stops moving, it will fall.

That’s why we must keep it moving.

The process came to a halt when two of the founding member-states, France and Holland, turned down the Draft European Constitution.

Now, we may have stopped to take a breath, but I believe we are far from falling over the bicycle.

At present we are at a transitional stage. The Union has decided on a “period of reflection” until 2007, or 2008 at the latest. In the meantime, we have decided to proceed with further ratifications of the Constitution. 16 member-states have already given their official approval to the document and the process is continuing.

As the French and Dutch results were no surprise, so these ratifications were no surprise either. It may not be in vogue at the moment but it would be useful to remember that the Draft Constitution does address some of the EU’s main problems:

·          All existing Treaties are replaced by a single text, encompassing the “Chart of Fundamental Rights” as well.

·          The functions of the Union are clarified and so are the relations between the European Parliament, the Council and the Commission.

·          The role of the European Parliament, and that of national Parliaments, is strengthened.

·          A President of the European Union and a Minister of Foreign Affairs, both enjoying real powers, are instituted.

There are many other important innovations, concerning the free circulation of individuals, capital, goods and services, as well as the right of settling anywhere in the Union.

The future of the institutional debate, ladies and gentleman, is uncertain: as you know only too well there are two basic schools of thought within Europe: the “Integrationist Approach”, and that which sees Europe as mainly a vast free economic zone.

The Belgian Prime Minister, apprehensive of the outcome of this debate, has suggested that, in case no overall agreement is reached, those of the members willing to proceed with further integration should be able to do so. He cites, among others, the experience of the Eurozone and its 12 members as an example of how Europe can proceed functioning in homocentric cycles.

He believes, that is, that there can be a “core” Europe, the United States of Europe, and a periphery, comprising the states not willing to proceed to a fuller integration at this stage.

For my part, I hope that we shall be able to avoid such fundamental dilemmas and to reach a compromise acceptable to all.

Ladies and gentlemen,

Cultural wealth and diversity constitute the essential components of Europe. So, Europe has to keep its diversity but needs also to change. At the same time the citizens of Europe ask for greater transparency. This means that we need to deal with the “democratic deficit’ effectively.

While speaking of deepening the Union, one usually faces the equally important issue of enlargement. The recent expansion to 25 members has caused grave fears as to the ability of the EU to cope with its problems. These fears are aggravated with the expected entry of Bulgaria and Romania in 2007, and with the prospect of including the rest of the Balkans later on.

But, most of all, Europeans are divided over the possibility of Turkey’s accession: they wonder whether Europe has actually the capacity to absorb a country of 75 million people; whether this will exceed the geographical limits of Europe; and whether the inclusion of 75 million Muslims will drastically change the Union’ s social and, above all, cultural fabric.     

I do not know what the outcome of this political debate over the future nature of the European Union will be. I am hopeful that, despite these differences, we will finally achieve a Synthesis of opinions for a new institutional framework that will make the Union more democratic and more effective.

Greece is at the core of the cycle of countries struggling for more integration. We are already a member of the Eurozone and the Schengen Treaty, establishing a common external security frontier. We participate actively in the common European Security and Defence Policy. Furthermore, we have ratified the proposed new European Constitution. Our government continues to support a strong unified Europe in the current institutional debate.

Our wish is for this debate to be concluded in a way that would maximise consensus on the future of the Union.

But, as we are all I am afraid aware, general consensus may not be reached. In any case, Greece is determined to proceed to the furthest possible European integration with all those countries willing to go ahead. Our country plays a pivotal role not only by belonging to the inner core of the Union, in the sense I explained above, but by emanating the Union’s radiance and reliability in her wider region.

I am sure you have already been informed of the extent of Greek investment in Southeast Europe, now probably exceeding 13 billion euros. More than 3.500 Greek companies are present in our neighbouring countries and the jobs thus created are numbered by the tens of thousands.

Greece has also been instrumental in actively supporting the European and Atlantic vocation of all our neighbours, including Turkey, provided the European norms and standards for entry are met. With the adhesion of Romania and Bulgaria to the Union this country will, at last, be territorially connected to the rest of the European Union.

Greece’s strong economic and banking presence in all Southeast Europe; her stabilising role, and the respect she commands as an impartial arbitrator in the Middle East, as the recent Lebanon crisis has shown, make this country a perfect base for entrepreneurs aiming at a vast new area of nearly 200 million consumers.

Add to this the skills of the Greek labour force, the hundreds of thousands of Greek multilinguals, the huge Greek merchant marine and the state-of-the-art infrastructure of this country and you will have the sum of a most interesting investment and business opportunity in the fastest growing regions of Europe.   

I am sure this is a challenging and exciting conference. The Chambers of Europe are the voice of the economy in its supra-border capacity. They are by nature aiming at networking economies, thus highlighting European development by collaboration.

The Chambers of Europe are European Integration’s best allies.

It is you who realise, better than most, the value of a united Europe, capable of generating growth and spreading its fruits all over our continent.

The present debate on the future of Europe is a debate of high concern for you. It is also a debate of high concern for Greece, a country which has herself benefited from the stabilising influence of Europe. 

It is my most ardent wish that Europe will overcome its present difficulties.

That it will be able to eliminate the democratic deficit, and to build new institutions, capable of smoothing her functions and of increasing her power.

A Union able to speak with one voice to the world.

A Europe whose political weight will match her economic might.    

Finally, a Union capable of accelerating growth, while finding ways of renovating the strength of her social model.

There are many politicians in many countries of the European Union who are committed to achieving all of the above.

So, I believe, is the majority of Europeans. 

Greece, her government, and naturally the present speaker, are certainly among them.

The Chambers of Europe are our best allies in moving ahead.

I am both hopeful and confident that, in the critical few years ahead, the years of reshaping Europe, your presence will best strongly felt.

Thank you for your attention.