Monday, May 7th, 2001 The Pierre Hotel, New York City

GREECE AS A CONDUIT TO BALKAN PROSPERITY

Developments in the Balkans affect Greece's national interests and we have a duty, as a member state of the European Union and as a Balkan nation, to contribute to the formulation and implementation of a comprehensive European policy.

Greece has always supported EU enlargement, as a means to build a bridge of security, co-operation, and development between nations. We believe that our neighbour's strength is our strength. To exclude a country from participation in the full benefits of international society is a sure path to the kind of crises we have faced for too long in SouthEast Europe.

Greece's vision for the Balkans is one of a region in which democracy finally becomes The norm; where citizens' aspirations, of whatever religion or ethnicity, can finally be realized through peaceful and democratic practice; where the rights of minorities are respected; where government is accountable, economies are transparent and politics allows for the fullest participation of all elements of society. Our mosaic of cultures can become our strength rather than our weakness.

And, SE Europe can be a region unified, reunified with Europe - within the European Union. This vision led more than 40 nations last year to develop a unique contract between the international community and SE Europe: it was coined "the Stability Pact".

In short, the Stability Pact will be the incubator of a new contract for the Balkans.

Greece has created a comprehensive strategy for the region. A strategy that I term a Total Balkan Approach: a regional approach to democracy, security and prosperity. Our objectives are to control potential sources of conflict, and to create the prerequisites for political and financial development throughout the region. Our ultimate goal is regional integration into European institutions. This strategy is founded upon the principles of respect for sovereignty and territorial integrity, respect of existing borders, and the dissuasion of separatist tendencies and divisive ideologies. At the same time, we actively promote the establishment of democratic procedures, and the protection of human and minority rights.

Regional integration can be achieved as the Stability Pact promotes investment in infrastructure projects, democratic leadership training, institution building and education that will bring us together, stimulate economic development and promote systematic cooperation and respect of international law amongst the states and peoples of S-E Europe. Development should focus on programmes that are beneficial to the entire region and promote regional cooperation. Finally we need to integrate the region into the wider European family. This translates into providing a "roadmap" for the region with clear standards to be achieved by each country.

For Greece, all this is no academic issue. We are unique in that we belong the European Union, NATO and the Balkans. What happens in the region, and, what our allies and partners propose for the region is central to our own future. We welcomed the contributions of many nations and institutions in pledging $2.3 billion towards this Pact. Greece has also made a significant commitment to the region to the amount of $ 500 million. We provide public funds for regional development. Thessalonica, Greece's bustling northern seaport, has become a commercial and cultural centre for our neighbouring countries. It hosts the regional office for the Pact as it does for the seat of the EU Reconstruction Agency for SE Europe. Its academic institutions will provide training possibilities for young leaders from the Balkans offering know-how on EU laws and institutions. Greece will be unstinting in its support for the Pact and its Co-ordinator Bodo Hombach as these aims are pursued with vigour.

Many say that business is business and politics is politics. So what business does a politician have, particularly one in charge of a country's foreign affairs, addressing a business forum? But hasn't the United States itself taught us how business can become an essential part of foreign policy? And the EU is not far behind in that respect.

Well, part of the business of politics is to enhance the kind of business, which brings prosperity to a nation and its people. To do so, politicians lay the ground for business to flourish and people to reap the benefits of democracy and prosperity, which ultimately lead to growth and stability.

Greece has assumed a dual role for the Balkan region. It has become a role model and a conduit for prosperity in the region.

Greece, the nation and its people, is every Balkan nation's achievable aspiration in terms of democracy and prosperity. We generally look alike, eat the same type of foods, listen to the same types of music. And we've been neighbours for ever, having suffered and rejoiced largely together. Before, say, a Bulgarian can dream of living like a German, he will first live like a Greek.

Already, almost 10% of our work force consist of economic refugees from neighbouring Balkan comities. A resource crucial for those engaging in business activities in Albania, Bulgaria, Romania and the former Yugoslav States. Already, the Ministry of Foreign Affairs has introduced legislation, which simplifies immigration and residency procedures. The mosaic of cultures I refered to earlier is now becoming a reality in my country and helps the Greek people better understand and help their neighbours.

Over the last decade, Greek entrepreneurs have invaded the Balkans in the good sense. They were the pioneers in foreign investment in the region. These pioneers learned the lay of the land and provided the "road maps" for much larger local multinational enterprises establishing business there. It should, therefore, serve as no surprise that today Greece ranks in the top 5 nations in every Balkan country to its north in terms of foreign investment.

It should also, therefore, come as no surprise that Greece serves as the regional seat of many global companies which pursue business interests in the Balkans. Coca-Cola is such an example, where also the Greek Coke bottler is Coke's bottler in Bulgaria, Romania, Moldavia, FYROM, Bosnia and Serbia/Montenegro. OTE, the Greek Telecom company, has acquired controlling interest of the Telecoms of certain Balkan states in partnership with American, Dutch and Italian telecom companies. And the list is long and growing every day covering the areas of manufacturing, distribution, food, banking, insurance, construction, energy, etc. This is ample evidence of the success and prospects of our foreign and economic policy. It shows that we have developed a niche in approaching business opportunities in the Balkans.

What all this demonstrates is that Greece is becoming an increasingly valuable conduit for business in the Balkans. The Greek Foreign Ministry and all stakeholders of the Greek State are ready to assist any valuable joint venture investment initiatives and have, thus, embarked on a program to promote and strengthen Greece's role in that respect by continually improving its infrastructure and simplifying the procedures of setting up and operating a company.

Greece's regional policy is, in a sense, our answer to the new challenges of globalization. The Greek government has chosen to seize these challenges as a unique opportunity. An opportunity to take bold initiatives, an opportunity for the European Union to engage fully in the process to shape the political, social, and economic reality of the entire region, to our common standards, as defined by the Treaties establishing the Union.

We understand that a vision of a democratic, stable and prosperous Balkans is a tall order and with it comes a heavy responsibility. Greece, working with its neighbours and its partners, is willing and ready to take up this challenge and help make this vision a reality.

With the measures taken through the Stability Pact, the interest of the EU and the US, we can look forward to four years of mending and growth in the Balkans. And after the unfortunate mobilization of the allied armies in the region due to the Kosovo conflict a couple of years ago, Greece will stage the event which requires the largest mobilization of people and resources during peace times, the 2004 Olympic Games in Athens, which in themselves present Greece, the Balkans and the world with new business opportunities and a path towards peace.