Greek Prime Minister George Papandreou appealed to Arab nations in Beirut on Thursday to invest in his cash-strapped country, touting it as “investment friendly” with a dynamic business environment. “Greece is changing rapidly and ... we invite you all to join us, whether it is visiting Greece, whether it is investing in Greece, or whether it is working with Greece on common projects in the region for a better future for all of our countries,” Papandreou said at the opening of a two-day Arab Economic Forum. Papandreou told dozens of Arab businessmen and officials that Greece offers ample opportunities for new businesses in sectors such as tourism, high tech communication and information technology. His comments come as the Greek government is struggling with an unprecedented debt crisis that has roiled markets and sparked fears of broader contagion in Europe. Greece has imposed a number of harsh cost-cutting measures as a precursor to a ¤110 billion three-year rescue loan package from other European Union countries and the International Monetary Fund that staved off bankruptcy. As he spoke, thousands of protesters took to the streets of Athens and Greece's second city, Thessaloniki, in a new general strike against the government's debt-dictated austerity spending cuts and pension reform. The reforms are aimed at tackling a huge deficit that has dented international confidence in the Greek economy, frightening potential investors and lenders. But at the forum, Papandreou put a brave face on things. “Greece today is an opportunity for new business, but also an opportunity to further strengthen our historical and cultural ties,” Papandreou said. “We are limiting bureaucracy, making our economy investment friendly. We are passing new legislation so that new companies can... (obtain a) license right away, while in the past it took many months,” he added. Papandreou said that, despite the global financial downturn, economic relations between Greece and the Arab countries had risen significantly. He said commercial transactions had risen by nearly 35 percent over the past several years. Last year, the volume of trade between Greece and the 18 countries of the Middle East, Gulf and North Africa amounted to 5 billion euros, and Greek exports to those countries accounted for nine percent of all Greek exports, Papandreou said. With respect to reforms, he said: “We have done in the past few months what we should have done over the past few decades.” Papandreou proposed the creation of a Euro-Med Cooperation Forum, addressing an Arab Economic Forum in Beirut during a visit to Lebanon. Regarding the Euro-Mediterranean cooperation, Papandreou said it would lead to economic and social development that would extend beyond the Mediterranean. It is an ambitious idea, Papandreou said, adding his conviction that such a cooperation could lead to the creation of a zone of peace, stability and security in the wider region. Stability in the region is not a simple matter and does not concern each country separately, he explained. He cited climate change as an example, warning that it could aggravate the existing problems related to water and food supply and create new hazards not only to human health and the ecosystem but also to the economies of the countries. Papandreou cited his recent meeting with Turkish Prime Minister Recep Tayyip Erdogan in Athens as an example. “We sat at the same table and discussed many sectors of cooperation, and these types of cooperation can create stability in the region and a new developmental model,” he said. The Greek premier also referred to Greece's recent borrowing from the European Union and the International Monetary Fund (IMF), stressing that the country's recourse to the EU support mechanism translated into guarantees for Greece and gave it the needed time to advance the major changes planned, such as those in the economic and business sectors.
