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Athens (Reuters)-Greece will stave off default not only for its own sake, but because its survival is vital for the eurozone and the global economy, the Greek Finance Minister Evangelos Venizelos told Reuters on Monday.
With the help of its EU partners and fresh determination, the Member of the eurozone debt ridden fiscal sovereignty will be restored as soon as possible and aims to return to the markets of 2014, as expected, the Minister said.
"We will do, because this is crucial not only for Greece but for the stability of the entire euro zone and the global economy, because it tested the strength of the financial system in Greece," he told Reuters in an interview.
Appointed in a cabinet reshuffle 17 June and talking after the Finance Ministers of the euro area approved Saturday a criticism, fifth tranche of a rescue loan to avert default, Venizelos said he was grateful to the partners of the EU and swore to fulfil its obligations.
He said he would redouble efforts to collect 1.7 billion (2.5 billion) in privatization by September, as agreed with the EU and the International Monetary Fund that Greece has pulled back from the brink of bankruptcy with a bailout of 110 billion a year ago.
Greece must deliver 50 billion euros in proceeds from a selloff was massive and complicated by 2015, including 5 billion this year. So far, in 18 months in Office, the Socialists have yet to launch any privatizations.
Amid the worst recession in nearly 40 years, good news for the economy comes from the tourism sector, which constitutes approximately 15 per cent of GDP. Revenues are seen this year after a fall of 25 percent in 2009-2010, an increase of about 10 percent said Venizelos.
"The data we have so far by the Ministry of tourism and the Bank of Greece are encouraging which will be a good year. Revenue will increase by about 10 percent, "he said.
A veteran politician who held several hard portfolios and prepared the Olympics of 2004, Venizelos took in its stride by Eurogroup comments Chief Jean-Claude Juncker that Greece's sovereignty must be severely limited during the bailout program.
"Mr Juncker is a great philhellene (friend of Greece)," said Venizelos. "Without a doubt always wants to help Greece and the euro area to overcome its problems and, above all, to avoid systemic risks.
"There is no doubt that we have very tough fiscal limitations and we must restore our fiscal sovereignty as soon as possible thanks to the successful implementation of our programme," he added.
FOREIGN INSPECTORS
Venizelos rejected suggestions foreign inspectors would have been placed in the ministries to monitor progress.
"There will be no inspectors," he said. "We all resort to the knowledge and skills of the EU and other Member States. This doesn't mean the inspectors will be posted or that responsibilities will be removed by the Greek Parliament, the Greek Government or public administration. "
Venizelos said selloffs and the reform of the tax system were among his top priorities and that he would lay out a detailed plan to combat tax evasion and improve tax collection, which has fallen behind the target, next week.
The Greece has 20 days from Saturday to set up a body of privatization and Venizelos said that he would unveil his Council colleagues Eurogroup ministers 11 July.
"Will announce this after completed discussions with the opposition on 2-3 key people, because we need the widest possible consensus," he said.
The conservative opposition has opposed the bailout, drawing criticism from EU officials, but says he agrees with some parts of the privatization plan, raising hopes that some political consensus can be reached.
International lenders are working on a plan to provide Greece with 110 billion euros to avoid default that might affect European banks and other financial institutions.
Asked a notice by the rating agency S & P with banks over Greek debt may be seen as a default, which has pushed down the euro on Monday, Venizelos said it was vital that any model including strictly voluntary participation of private lenders.
"How markets are strict and ruthless, we want the format that is clear from the next program to have a form that is accepted by the markets and react positively," he said.
(Edited by Peter Millership)
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