Identifier
Created
Classification
Origin
09ATHENS1613
2009-11-09 15:37:00
CONFIDENTIAL
Embassy Athens
Cable title:  

Ambassador's Call on Parliament President Petsalnikos

Tags:  PREL PGOV KTIP ECON EFIN GR 
pdf how-to read a cable
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RR RUEHAG RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSL RUEHSR
DE RUEHTH #1613/01 3131537
ZNY CCCCC ZZH
R 091537Z NOV 09
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC 1015
INFO EUROPEAN POLITICAL COLLECTIVE
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 ATHENS 001613 

SIPDIS
AMEMBASSY ANKARA PASS TO AMCONSUL ADANA
AMEMBASSY ASTANA PASS TO USOFFICE ALMATY
AMEMBASSY BERLIN PASS TO AMCONSUL DUSSELDORF
AMEMBASSY BERLIN PASS TO AMCONSUL LEIPZIG
AMEMBASSY BELGRADE PASS TO AMEMBASSY PODGORICA
AMEMBASSY HELSINKI PASS TO AMCONSUL ST PETERSBURG
AMEMBASSY ATHENS PASS TO AMCONSUL THESSALONIKI
AMEMBASSY MOSCOW PASS TO AMCONSUL VLADIVOSTOK
AMEMBASSY MOSCOW PASS TO AMCONSUL YEKATERINBURG

E.O. 12958: DECL: 2019/11/09
TAGS: PREL PGOV KTIP ECON EFIN GR
SUBJECT: Ambassador's Call on Parliament President Petsalnikos

CLASSIFIED BY: Daniel V. Speckhard, Ambassador, State, EXEC; REASON:
1.4(B),(D)

C O N F I D E N T I A L SECTION 01 OF 02 ATHENS 001613

SIPDIS
AMEMBASSY ANKARA PASS TO AMCONSUL ADANA
AMEMBASSY ASTANA PASS TO USOFFICE ALMATY
AMEMBASSY BERLIN PASS TO AMCONSUL DUSSELDORF
AMEMBASSY BERLIN PASS TO AMCONSUL LEIPZIG
AMEMBASSY BELGRADE PASS TO AMEMBASSY PODGORICA
AMEMBASSY HELSINKI PASS TO AMCONSUL ST PETERSBURG
AMEMBASSY ATHENS PASS TO AMCONSUL THESSALONIKI
AMEMBASSY MOSCOW PASS TO AMCONSUL VLADIVOSTOK
AMEMBASSY MOSCOW PASS TO AMCONSUL YEKATERINBURG

E.O. 12958: DECL: 2019/11/09
TAGS: PREL PGOV KTIP ECON EFIN GR
SUBJECT: Ambassador's Call on Parliament President Petsalnikos

CLASSIFIED BY: Daniel V. Speckhard, Ambassador, State, EXEC; REASON:
1.4(B),(D)


1. (C) SUMMARY: Ambassador called on Parliament President
Fhilippos Petsalnikos November 4 accompanied by DCM and POLOFF.
On the Macedonia name issue Petsalnikos followed standard GoG
lines, emphasizing the compound name used erga omnes, but also the
Greek desire to move all of the Western Balkans forward on a Euro
Atlantic path. He said the GoG will enhance the Parliament's role
in budget oversight, especially defense appropriations where a new
oversight committee is being formed. Ambassador noted that
transparent defense appropriations would be good for both the Greek
people and U.S. firms competing in the marketplace. The GoG is
seized with the economic and fiscal crises - and will implement
both a fiscal stimulus and smarter tax collection/ budgeting but
also a smaller budget. Petsalnikos agreed fully with Ambassador's
comment on the advantages to Greece's economic recovery of more
predictability in legal/regulatory frameworks to support foreign
investment. Ambassador pressed Petsalnikos to look positively at
ratifying the Palermo Protocol on trafficking in persons.
Petsalnikos promised to look into it, but underscored the need for
Greece's neighbors to do more to control the movement of
trafficking victims. END SUMMARY.

MACEDONIA NAME


2. (C) Ambassador praised PM Papandreou's new approach to
regional issues, and noted that positive atmosphere that appeared
to be developing, especially after the PM had a good meeting with
Macedonian PM Gruevski in Brussels. Petsalnikos agreed that a new
atmosphere would be helpful and said the GoG's approach will be to

bring all of the Western Balkan countries into the Euro-Atlantic
community. As the government had said, it planned to use the 2014
centennial of the start of WWI to focus attention to this. However,
as a Macedonian himself, originating from Kastoria just miles from
the "FYROM" border, Petsalnikos said the "simple and logical
solution" would be for FYROM to take a geographic modifier to its
name to distinguish itself from the original Macedonia, and use it
universally. He hoped that Skopje would accept this quickly so
that progress could be made - and noted his personal
dissatisfaction that the Macedonians continued to try to
"appropriate" his history. Ambassador said the USG urges both
sides to engage quickly in the Nimetz process to find a mutually
acceptable solution.

ECONOMY/FISCAL CRISIS


3. (C) Petsalnikos said the new Parliament was going to take a
more active role in oversight of government - especially in the
area of budgeting and procurement. The previous government had
made many bad decisions and Petsalnikos wanted to get Greece back
into a situation "more like 2003-2004" when Greece entered the
euro-zone and the economy was experiencing above EU-average growth.
There would be a new defense appropriations oversight committee -
similar to those used in other countries, including the USA.
Oversight was needed in order to make better budgeting decisions,
and the Parliament's work would be made public, in order to educate
the Greek people and provide them greater understanding of the
process. At the same time, the GoG was planning a new social
solidarity tax which would be redistributed to the lowest income
brackets in order to stimulate the economy. Petsalnikos said "I
believe even President Obama has agreed that Keynesian economics is
a good approach." Notwithstanding this stimulus package the GoG
would submit November 5 "for the first time in 35 years" a smaller
budget in both absolute terms and percentage of GDP. This was
needed to demonstrate Greece's commitment to tackling the serious
and growing deficit - now over twelve percent -- inherited from
the previous government.


4. (C) Ambassador noted that transparency in defense procurement
would be good for the Greek people, and he was confident that U.S.
firms would be able to compete well in such an environment.
Further, clear and predictable investment rules would permit
greater business confidence. Improving the climate for foreign
investment would help further stimulate Greece's economic growth
and provide employment opportunities for young people. Petsalnikos
agreed fully - he understood that investment rules cannot change
every few years as governments change, and he promised to be
attentive to this issue. (Note: Greece's position on the World
Bank's Doing Business Indicators, and Transparency International's

ATHENS 00001613 002 OF 002


Corruption Index has continued to slip in recent years, with many
neighboring countries now scoring significantly higher than Greece.
End note.)

TIP/ PALERMO PROTOCOL


5. (C) Ambassador noted the progress Greece has made in the fight
against trafficking in persons, and urged Petsalnikos to look into
the status of the ratification of the 2000 Palermo Protocol, which
Greece signed in 2000 but has not yet ratified. This would be a
good signal of the new government's continuing seriousness about
tackling this difficult problem which Greece suffers from, given
its geographic location. Petsalnikos asked his staff assistant to
look into this status of the ratification process, and recalled his
time eight years ago as Public Order Minister, and then Justice
Minister, when the GoG adopted a tough set of laws to combat
trafficking. The real issue was to get Greece's neighbors to
toughen their approaches, he said, singling out Turkey for not
controlling its border with Greece, and Bulgaria.




6. (C) BIO NOTE: Petsalnikos is an experienced hand, having served
as Minister of Justice and Minister of Public Order in previous
PASOK governments. He is likely to use his new position to
strengthen his role and the role of Parliament in government
affairs - something the new PM said he would support. He is smart
and articulate and desiring of stronger Greek-U.S. relations.
However, his inability to communicate in English will inhibit his
ability to build strong personal ties to counterparts in Congress.
Speckhard