Press conference by Prime Minister of the Hellenic Republic and the President of the Government

Athens

Mr. Samaras.- Good day. I welcome the President of the Government of Spain, Mariano Rajoy, here to Athens. Our two countries - Greece and Spain - have very strong ties of true friendship, solidarity and a stable European vocation.

Our people have common problems as a result of the economic crisis, but also due to the geopolitical instability of the Mediterranean region, such as illegal immigration and we have similar concerns over terrorism and European borders.

Our relations with Spain, both at a bilateral level and within a European framework are based on shared values and rules that govern our collaboration within the European Union.

Spain has been a participant since 2010 in the bailout mechanism that has supported our country, when the doors to the markets had been closed to us. The Spanish people, who also had many problems, lent money to the Greek people - 16 billion euros - as well as aiding our finances. I would truly like to thank the Spanish people for their support through the institutional framework of the European Union.

This support is regulated by a series of rules that we respect, but also by a series of moral guidelines and we will never forget those who have helped us in hard times. The people of Greece acknowledge this aid and support, and will repay this money.

In recent years our two countries have suffered from the worst crisis seen in decades. Both the Spanish people and the Greek people have suffered from lower revenue and unemployment has affected almost every family. In the same way as the government of Mariano Rajoy in Spain, we have also responded to the demands of the situation. We have made structural changes to guarantee the future of the country, to guarantee security, competitiveness and to foster our exit from the crisis.

All these changes that have taken place have been undertaken to build a better future, to boost competitiveness through the realisation that those countries that are competitive and open to foreign trade are prosperous countries. We specifically want to continue addressing our lack of competitiveness, with reforms that help bolster it. This is our major commitment so that no future generation of Greeks know what such unemployment is. We owe that to our children.

In the last quarter of 2014, Greece and Spain enjoyed the highest rates of growth in the entire Eurozone. And the greatest social problem of our societies - unemployment - is also enjoying a continuous reduction on previous months. Of course, unemployment levels remain too high and continue to be the priority for both our governments; however, unemployment is losing ground and that enables us to harbour great expectations.

We have collaborated very closely with Mariano Rajoy in the new programmes to combat unemployment, particularly of our young people through the Youth Guarantee programme, and we are now working together again on the new 'Juncker Investment Plan', which will set aside 325 billion euros for growth projects throughout Europe; obviously within the framework of the European institutions and European regulations.

Our common past, our problems, the problems of our peoples, the progress made in our respective countries and our collaboration, as you would expect, have helped forge close relations between our two countries. I would like to thank President of the Government Rajoy - a personal friend of mine, and also a true friend of Greece - for his friendship and, through him, thank the people of Spain.

Welcome to Greece, Mariano.

President of the Government.- Thank you very much, Mr Prime Minister. Ladies and gentlemen, a very good day to you all and thank you very much for attending this press conference.

I would like to start this speech by saying that I have worked alongside Prime Minister Samaras and I have witnessed his successful struggle to restore credibility and pull his country out of an unprecedented crisis. I have great respect for his courage and for his achievements. He is a true friend, a reliable partner, and of course, a true leader.

I would particularly like to thank him for inviting me here today to Athens, firstly, because I had not had the chance to visit this wonderful country as President of the Government; I have only been here before under other circumstances; and also for what represents a show of appreciation and confidence towards Spain, at a very important political and economic time for Greece, for Spain and for the whole European Union.

Today I have had the opportunity to speak with him and exchange perspectives on some of the most important issues on the European and international agenda; among them, the common response that should be given by the European Union to the threat of Jihadi terrorism and the common challenge faced by Greece and Spain regarding the external borders of the European Union in terms of illegal immigration. Greece and Spain, like the other southern Member States, have an additional obligation to protect the Mediterranean European borders and to protect Europe, as a whole, from the geopolitical instability of its environment.

We also tackled the possibilities offered to us under the 'Juncker Investment Plan' to help drive growth in Europe and the upcoming phases of the reform of the Economic and Monetary Union. I would like to underline that Greece and Spain agree on these issues in the diagnosis and the direction that we should take together with our European partners.

Ladies and gentlemen, Greece and Spain are two Mediterranean countries with many things in common in terms of our culture and in our way of life. We see Greece not only as a lifelong friend, but also as the origin of our own civilisation. We share, as was mentioned, the Mediterranean, the birthplace of western civilisation. Our interest in the Mediterranean can be seen in a multitude of forums, such as our active participation in the Union for the Mediterranean and in the 5+5 Forum, which gathers together five European countries and five North African countries.

And I also stated that our most important common project, on which our future depends to a great extent, is that of European integration; a project that has gone through some very tough times in recent years due to the economic and financial crisis which has endangered the very dynamic of integration. The confidence of our citizens in the capacity of this project to maintain some of the characteristics of the European model of the Welfare State has suffered, and one of the most important achievements of the integration process, our single currency - the Euro - has been at risk.

During the tough times we have gone through, many have forgotten that the European integration process has enabled Europe to enjoy the longest period of peace and prosperity in our history. You only have to compare these more than 60 years since the Coal and Steel Treaty was signed with any other similar period in Europe's history. Many have forgotten that this integration project allowed Greece and Spain to improve their levels of wellbeing and economic development to unprecedented levels, and that this project enabled, just 10 years ago, the two halves of Europe separated for so long by a wall to be united again.

Fortunately, the force of this project lies in the fact that, although it began with economic mechanisms and instruments, it has always been, and remains, a political project in the purest sense of the term. This political drive is what has allowed us in these tough years to respond to the crisis with greater integration, reforms rather than division, and solidarity rather than isolation.

It has not been easy. There has been hesitation and doubts, but, since the start and in the most difficult moments, we were all still convinced that the solution lay in the European project and not beyond it.

Greece and Spain, like the vast majority of European countries, each one with its only particular features and each to a different extent, have suffered from one of the most severe crises since our respective countries recovered their democracies. As a result of the effects of the crisis, the Spanish people and the Greek people suffered harsh economic difficulties and, in particular, too many people lost their jobs.

Our two countries have suffered from difficult and painful reforms, but we are convinced that these reforms were essential to re-establish our economies on a sound basis and ensure that growth and prosperity returned in a reliable and lasting fashion.

The reforms we have undertaken in Greece and in Spain are now starting to bear fruit. As Prime Minister Samaras said in his speech, Greece and Spain are presently two of the countries enjoying the highest rates of growth in the Eurozone, following a long period of negative growth and jobs being shed.

For the first time since the start of the crisis, we are creating net employment. Greece now has a primary surplus in its public accounts and forecasts in Spain for 2015 point to more growth and the recovery of more jobs than in 2014. That is why I am convinced that, if we don't drop our guard, if we persevere with the policies that have been set in motion and if we continue down the path of reform, we will be in a position to place our economies on the path of sustainable and stable growth, and thus guarantee a future of prosperity and well-being.

Now that we are finally exiting the crisis we need stability, not instability; we need certainty and confidence, not uncertainty and a lack of confidence. Our common future is centred on Europe, in the European integration project; not beyond Europe. And the Euro, which as I said, is one of the most important projects in our common history, is not an a la carte project; it requires constructive commitments and not unilateralism and confrontation. The rules may change but the first rule is to respect them and honour commitments.

Europe is built on a constructive commitment, not on a unilateral breach of the rule-book. We have undertaken, and continue to work on, important reforms of our Economic and Monetary Union to avoid a repeat of the crisis we have suffered.

Ladies and gentlemen, a strong and stable Europe - that is my conviction - requires stable Member States, with democratically-elected governments that respect the commitments acquired and contribute to the unity and recovery of our continent.

I reiterate my gratitude to the Prime Minister, Antoni Samaras, for having invited me; it is an honour to be here and I would also thank you for attending on a day such as today.

Q.- Prime Minister, President of the Government, I wanted to ask you both about the risks of a victory by Syriza in Greece or by Podemos in Spain, and whether Mr Samaras would welcome a visit by Ms Merkel, such as the one by President of the Government Rajoy today, of whether that would be counter-productive.

And if the President of the Spanish Government will allow me, on a domestic front, we know that you have already spoken with the Leader of the Opposition, with Pedro Sánchez, about measures to combat Jihadi terrorism. Could you clarify these measures? Do they include more agreements, for example, on corruption?

Do you take for granted, like many people in Spain, that tomorrow there will be a call for elections in Catalonia? Do you believe this to be a mistake?

Mr. Samaras.- I am the Prime Minister of a welcoming Greece and, of course, I would welcome any partner here. And today I welcome my friend, the President of the Government of Spain, Mariano Rajoy.

President of the Government.- You asked me three questions. The first question was about the political forces in Greece and Spain. It's not that I don't want to answer your question, but I have not come here, nor should I, talk about political forces in Greece or in Spain, at an event with these characteristics.

What I have come here to do is to defend certain policies, policies that have been tough, that have been difficult, that have been complicated and which have resulted in decisions that governors do not typically like to take. But they were policies that were necessary, that were essential, and which, moreover, have led to results, and most importantly, are establishing sound bases for the future. That is what I have come here to talk about. And these have been hard years, and we will still have to go through some tough times, in Greece, in Spain and in other countries of the European Union. But the results are starting to be seen.

Prime Minister Samaras said that Greece and Spain are the countries that will enjoy the most growth in the European Union in 2015. We have seen the figures for Spain: after six years of negative growth, after six years of jobs being shed, this year - I mean 2014 - saw 400,000 new jobs created and growth of 1.4%. And in 2015, we will create more jobs than in 2014, Spanish society will create them, and there will be greater growth than in 2014. And the same will happen in Greece.

Hence, I have come here to defend these policies, above all because these policies are helping secure our future. Others may say what they want. I simply want to point out one thing: the promise of things which are impossible is something that makes no sense and only leads to tremendous frustration.

The second question, Pedro Sánchez. Indeed, yesterday morning I had a conversation with the General Secretary of the Socialist Party, we spoke about events…, in short, about the murders, the tragedy that took place in France a few days ago. He was also there; I was there and, furthermore, I was with the Prime Minister of Greece.

What we both agreed was that at the meeting to be held this afternoon, a representative from the Socialist Party, together with the Ministers for Home Affairs, and for Justice of the government I head up, a great effort was going to be made to seek agreement on this issue.

The fight against terrorism, and this is pure common sense, requires unity, it requires national and international cooperation, and it requires a raft of ongoing reforms to adapt to the new events that unfold and the new forms of terrorism.

Hence, I believe that this is very positive. It would be nonsensical for the People's Party and the Socialist Party not to reach an agreement on an issue of this nature. I am satisfied; I hope that this can be closed shortly and that these measures can come into force as soon as possible.

There are certain measures… This is not a closed issue, but the displacement to conflict zones to join a terrorist gang will be punished as a crime of terrorism, something we are seeing that is taking place in certain EU countries; passive training will also be punished; terrorist offences will be uncoupled from the concept of 'organisation' to tackle the figure that has now become known as the 'lone wolf'; the financing of terrorism will become punishable without being a member of the terrorist gang; and sentences for inciting terrorism, particularly over the Internet, will become harsher.

This is a broad package. My party has presented certain amendments to the Criminal Code. We are open to suggestions, both from the Socialist Party and from other parties because, I repeat, on an issue of this nature it would be nonsensical and irresponsible not to reach an agreement.

You asked me whether this could give rise to more pacts or agreements. I believe that on affairs of State it is always good for the major political parties to reach agreement, is it not? I believe that on foreign policy, on defence policy, in the fight against terrorism and in a process such as the construction of Europe this is important. Countries need stability, what they don't need are political shifts or uncertainty, and hence, I believe that all these things are very positive.

Early elections in Catalonia? It is not down to me, as everyone knows, to decide on this issue. This power belongs to the President of the Regional Government of Catalonia, but I can say one thing: I believe we should establish our priorities carefully. The main priority at this time in Europe, and obviously in Spain, is to fight to overcome the economic crisis and at this time in Spain, as in Greece, we are starting to see light at the end of the tunnel; we can now see positive signs. I obviously don't think that calling elections in Catalonia is the best or most positive option. They had them in 2010, and then municipal elections in 2011; in 2012 they once again held regional elections and there were European elections in 2014. Elections again in 2015 and then municipal elections again, and then general elections? That seems to me like too many elections.

Countries need a certain time without calling elections to devote themselves to what is the true priority. I repeat, things are improving in Spain from an economic point of view; Catalonia is not alien to this general improvement in Spain, and hence, it doesn't seem like the most appropriate move to me. Having said that, I repeat, as everyone knows, that it is not within my power to take this decision.

Q.- I would address both leaders. In Greece, we are in an election process and the main issue is the economy and as to whether the country exits the Euro. Mr Alexis Tsipras, the head of Syriza, says that in the event he wins the elections his party will start negotiations afresh. What comment do the two leaders have to make on this statement from Syriza?

Mr. Samaras.- The negotiations have taken place over the last two and a half years. We are presently in the final stage of the negotiations, relating to the period after the memorandum; but it should be stated that the negotiations are taking place within the framework of European regulations and the regulations on the Euro. It is not right that each new government should raise all the issues again or that the rules are changed that govern European issues. That cannot happen. If that happens, there will be no European Union and no Euro.

I would like to comment that Spain lent us 26 billion euros, as I said before; millions that it did not have available at a difficult time, according to an agreement signed back then. Now, what shall we say to Spain? We have already had this money. So what? Are we now going to say that we want to change this agreement? That cannot happen. The Euro cannot operate that way. Some countries lent us money at lower interest rates than that which they are currently subject to themselves, but there are other countries that lent us money when they were poorer, both then and now, than Greece.

How can these rules be changed? How can Europe accept this? European solidarity is based on the responsibility of all. Responsibility and solidarity are two things that go hand-in-hand. We are talking about negotiations that we aspire to conclude, to bring to a close. This memorandum aspires for Greece to enter into a new post-memorandum phase, whereby whoever says that our debt is not viable is tantamount to saying to the markets that they cannot lend money. This will necessarily lead us to a new loan, to a new memorandum, at a time at which we were leaving behind the programme established under the memorandum.

The Greek people don't want this. Greece does not want to enter into a new loan programme. These theories can only end up being negative for our country. And, as both Europe and the rest of the world can understand this, so can the Greek people. In other words, creating conditions leading to turmoil and seeing Europe as the enemy, is a way of causing us to take a step backwards in these difficult times.

President of the Government.- I will try to answer your question using three comments.

Firstly, I will tell you what happened to me when I was elected President of the Government. I was elected President of the Government of Spain at the end of 2011 and, at that time, there were certain European Union rules, regulations and commitments acquired by the previous Spanish Government, which was the Socialist Party, with regard to Spain and to other countries. When we came to power, these rules, regulations and commitment were exactly the same. If this had not been the case, and taking into account that the European Union is comprised of 28 countries, and hence, there are four or five general elections each year, and on many occasions the government changes… You will appreciate that, if whenever there is a change of government, the rules, regulations and commitments also change, these would be ungovernable with only a modicum of good judgement, common sense and effectiveness. These are the rules that exist and everyone respects them.

Secondly, I believe that the priority today, and I say this because it is also true for Spain, the main objective is economic growth and job creation, and if economic growth and job creation are starting to be achieved in Greece and in Spain, all the other issues will be resolved as a matter of course: firstly, the deficit, debt, access to markets… That is the priority: fiscal consolidation and structural reforms. In Greece, a major effort has been made and the people must realise this, even though it has meant difficult and complex measures. But that is the priority.

And my third comment, without going into other issues: it makes no sense to say that the impossible will be done because that ends up causing frustrations and many problems.

Thank you.