AA16CR24ADD4

AS (2016) CR 24

 

Addendum 4

   

 

2016 ORDINARY SESSION

________________________

(Third part)

REPORT

Twenty-fourth sitting

Monday 22 June 2016 at 3:30 p.m.

Written replies to questions to Mr Alexis Tsipras

1.       Ms Anttila (Finland, ALDE) – Mr Prime Minister, the point of departure for the Schengen system is to register asylum seekers in the European Union country of entry. However, the refugee crisis has led to serious exceptions to this rule.

In light of the current situation, what is your understanding of the functioning and the relevance of the Schengen system?

Being at the external border of the EU, Greece has been one of the countries, most affected by last year's unprecedented refugee and migratory flows towards Europe. Since 2015 we have received more than 1.1 million refugees and irregular migrants. Despite the ongoing financial crisis, the people of Greece have welcomed the refugees in a humane way and have catered to their immediate needs. The Greek coastguard has saved the lives of tens of thousands of people, while the Greek Asylum Service - which was founded three years ago - is dealing with the 4th largest number of asylum applications in Europe. This is a situation that no country in Europe could cope with on its own. Support from the UN and the EU - particularly through UNHCR, IOM, FRONTEX and EASO - has been important, but much more is needed.

While dealing with increasing influx of refugees and migrants, we remained committed to upholding the Schengen rules and we have dedicated relentless efforts to that end. Today, according also to the European Commission, Greece is registering at a rate of 100% (including fingerprinting and conducting relevant security checks) all those who enter the country irregularly. At the same time, we are cooperating closely with FRONTEX on strengthening border management.

Following the evaluation of Greece on the implementation of the Schengen acquis in the field of management of the external borders, we have delivered ahead of time on almost all Council and Commission recommendations and have proceeded to the adoption of the necessary measures for the longer-term ones. Preserving the Schengen acquis and ensuring that Europe will remain a secure area for its citizens, while safeguarding the rights of the people in need of international protection, is a top priority for us.

2.       Mr Büchel (Switzerland, ADLE) – Mr Prime Minister, in your speech you spoke of the European countries’ debt. The Central European Bank (CEB) is buying government bonds on a wide scale. The CEB says that this monetary policy should make it possible to reduce financing costs for the Eurozone. This purchasing programme is converting no less than €1140 billion into new funding which is then injected into the financial system.

Do you think this means that the structural reforms in the Eurozone countries will be implemented more slowly? What is the situation in Greece in this regard?

The European Union is in the midst of a triple, economic, refugee and security crisis. That triple crisis has turned into a political crisis on the project of European integration itself.

In this framework, dealing with these crises is necessary to ensure the future of the European project. In the economic field, we must look at the question of tackling European debt in conjunction with the growth problem of the Eurozone. In that context, structural reforms as well as the overall macroeconomic stance of member States, need to be growth and employment oriented, so as to take advantage of the ECB's quantitative easing.

Greece does not participate in the quantitative easing program because of the sustainability problem of the Greek public debt. We are following all our commitments deriving from the agreement of 12 July 2015, to the letter. A significant part of this agreement involves the restoration of the sustainability of our debt, subsequent to the successful conclusion of the first review of our economy by the institutions. This review is to be concluded in the next days. So, we justifiably expect that the horizon will clear before the end of 2016. This means that the specific debt-easing measures to be implemented up to and subsequent to 2018 will have to be announced in the next two months, so that a clear signal is sent to investors and the markets. That will enable us to participate in the ECB's quantitative easing program and, as a consequence of it, return to the markets. The Greek economy is now recovering. That means that, starting from the second quarter of 2016 (positive GDP growth 0.3%), we are expecting three consecutive quarters of positive growth. Therefore, the announcement of those specific debt-easing measures is the push that the Greek economy needs to return to sustainable growth.

3.       Mr Howell (United Kingdom, EC) – Mr Prime Minister, in the area I represent in the parliament of the United Kingdom, the rate of unemployment is 0.5% as a direct result of austerity and the long term economic plan of the government of the United Kingdom. Why will these not apply to Greece?

What you are suggesting is an exception to the experience of the rest of Europe. Austerity has led to an increase in unemployment across the continent during this crisis. Unemployment is now a major economic, social and political problem not only for Greece but for the European Union as a whole. In particular, the large number of long-term unemployed - one half of the total number of unemployed (11 million out of 22 million) - is an indication that Europe is experiencing an unemployment crisis.

This is due to austerity, which causes recession and, thereby, a rise in unemployment. In Greece, unemployment was 7.8% of the total labour force in 2008. In 2011, in the second year of the Memorandum, it more than doubled to 17.9%. In 2014, after four consecutive years of austerity policies, unemployment had skyrocketed to 26.5%. After the relative relaxation of austerity and an aggressive strategy targeting unemployment, from 2015 on, unemployment decreased to 24.9% in that year. During 2016, it has further decreased to 23.3% according to April's data (a rise in employment of 3% relative to April 2015, i.e. an increase of 107 000 persons). I think these figures speak for themselves.

4.       Ms Karamanli (France, SOC) – Mr Prime Minister, Greece is faced with two crises: an economic crisis and a migration crisis. Between 2007 and 2015, the public debt of Greece rose from 103% to 179% of GDP. The two main causes for the debt increase are (negative) growth and the interest burden. Growth is one of the two keys to a return to prosperity for the Greek people. But in order to achieve sustainable growth there has to be a strategy.

In the assignment for the French National Assembly of which I am in charge, investment in Greece is seen as one of those keys. This presupposes a stable legal and tax environment for companies and both tangible and intangible investment. Basic training, ongoing training, research and innovation are all also part of this.

There are three simple parts to my question:

-       which industrial and farming sectors will be given priority assistance?

-       what is the limit set on the significant and constant increase of taxation on businesses?

-       how are you going to improve the service delivered by schools, university and continuing education?

Restoring confidence in the State means improving the service provided to everyone.

During the recession, investment has dropped by two-thirds in absolute numbers. Since investment is the only road to growth and thus an exit to the crisis, we have created an investment-friendly institutional environment. For the first time in Greece, our government introduced a 12-year stable tax regime for investment plans exceeding €20 million. We have also undertaken major reforms concerning the business environment. They have to do with the simplification of licensing processes, the fight against bureaucratic constraints, and the opening up of certain markets which will attract private investment.

We have given priority to investment which will alter the structure of production from its concentration on low technology and high competition areas, with a price-elastic demand for exports, to the dynamic range of high-tech industries that could improve market power in international trade. The main focus is on diversifying the economy, apart from tourism, which will continue to be a major area of investment attraction, or shipping, where Greece has traditionally very strong potential, into other sectors as well, which can mobilise the excellent human capital of the country. Those include bio-certified farming and food processing, the energy sector, innovation and R&D, etc. Our scope is to transform Greece into an energy and logistics hub for the whole area of south Eastern Europe.

You are also right in saying that to restore confidence in the State means to improve the services provided to everyone. For us, health and education provision is a political priority that we have to honour despite the very limited financial resources that we have due to the implementation of the agreement of 12 July 2015 with our creditors. We are re-organizing both these sectors in order first, and above all, to make them accessible to all and, second, to improve the quality of their services. In particular, with respect to education that you are asking about, with effect from the ongoing school year, we have introduced all-day elementary school and we have reformed technical and vocational education at the secondary and post-secondary levels so as to prepare and specialise students professionally and, at the same time, restore their right to access the University system. We have started the reform of secondary education in order to render lyceum an autonomous educational level of critical learning instead of a mere exam-centred preparatory stage to the University. We will facilitate continuing education and continuing professional development.

As for higher education, our aim is to maintain equality of educational opportunities with economic efficiency of universities by developing synergies between businesses, research centres and institutions of higher education.

5.       Ms Kyriakides (Cyprus, EPP/CD) – Mr Prime Minister, in relation to the ongoing talks for the solution of the Cyprus problem, we would like to hear your opinion with respect to the position expressed by Turkey to maintain the anachronistic system of Guarantors, in case of reaching a solution to the Cyprus problem. Especially since we are talking about a Member State of the European Union and also because the United Kingdom and your own country have declared that they have no reservations to renounce this capacity.

We have repeatedly stressed that abolishing the anachronistic system of guarantees in Cyprus and the full withdrawal of Turkish occupation forces from the island are key elements for achieving a comprehensive, just and viable settlement of the Cyprus problem on the basis of UN Resolutions and the status of Cyprus as a member-state of the EU. We have been systematically working in order to underline the importance of this matter, in all directions.

6.       Mr Önal (Turkey, EC) – Mr Prime Minister, during your pre-election pledges for the Turkish minority in Western Thrace were promising. However, no positive steps have so far been taken. Although preschools are part of the compulsory education in Greece, the Turkish minority’s request for the opening of bilingual preschools is still pending.

Will your government respond positively to the minority’s request for the opening of minority preschools and new minority schools in general?

In Thrace, there are over 35 functioning kindergartens in minority villages that are free and accessible for children belonging to the Muslim Minority. Once they complete their year in the kindergarten, minority children have the option of attending either a minority primary school, or a general primary school. Furthermore, the Ministry of Education is consistently exploring ways in order to improve both general and minority education in Thrace.

7.       Mr Rouquet (France, SOC) – Mr Prime Minister, thanks to the courageous efforts of the leaders of the two parties on the island, there is today hope that the Cyprus conflict will come to an end. This hope is, however, fragile. Do you share this cautious optimism and can Greece support the efforts currently being made?

Greece supported from the outset the intercommunal talks in Cyprus, which have been continuing at an intensive pace. We understand that, while important progress has been recorded, significant differences still remain on crucial negotiation chapters.

For all the past disappointments and the difficulties still ahead, the intercommunal talks remain the only negotiation process that is acceptable to all the interested parties. This process must therefore continue, until an agreed, comprehensive, just and viable settlement is reached. UN Security Council resolutions provide the basis for the solution of the Cyprus problem, which must also be fully compatible with the EU acquis.

8.       Ms Schou (Norway, EPP/CD) – Mr Prime Minister, through the European Economic Area (EEA) funds Norway has over a long time donated considerable amounts of money to support your country’s efforts to handle the influx of asylum seekers and migrants. During 2014-2021, a total of €120 million will be made available to Greece through EEA-funds. A substantial part of these funds are earmarked migration and asylum.

What control mechanisms do you have in place to make sure that the funds made available for you are managed in a responsible way, and spent in accordance with what has been agreed?

The body responsible for the management, at national level, of the EEA Financial Mechanism, which includes the Program GR06 on migration and asylum, is the Independent Unit of Planning Coordination and Monitoring of the Implementation of the Financial Mechanisms of the EEA (National Focal Point) within the Ministry of Economy, Development and Tourism. The European and Development Programs Division of the Ministry of the Interior and Administrative Reconstruction has been defined as Program Operator. It should be noted that the Norwegian Directorate of Immigration acts as advisor on the implementation of the Program. A Monitoring Committee is responsible for overseeing all Programs funded by EEA grants. Moreover, a Cooperation Committee has been established to monitor progress of the different projects in the asylum and migration sector. An External Advisor of the Program Operator is evaluating progress and offering advice on the management of funds. Payments are conducted by a separate Division of the Ministry of the Interior and Administrative Reconstruction. Audit procedures have been assigned to an external certified auditor. All data related to the Program are registered in the Integrated Informative System of the Ministry of Economy, Development and Tourism. The aforementioned structure, in accordance with the Program Agreement, ensures effectiveness, efficiency and transparency in all stages of the program implementation.