JOURNALIST: Alison Burrows, Australia’s chief negotiator for the EU Free Trade Agreement, visited Greece recently. What areas of cooperation were discussed during the meetings, and was a road map agreed upon for further strengthening bilateral trade?JOURNALIST: Mr. Fragogiannis, an important issue for our readers, the Greek community, has been the relationship with Turkey. Turkish provocative conduct is testing Greece’s limits. What do you believe on this issue and how are the economic partnerships between the two countries affected by the extreme rhetoric?JOURNALIST: Foreign direct investment is a major priority for the Greek government. Indeed, in recent years, Greece has attracted both giant corporations such as Microsoft, Volkswagen, and Pfizer, as well as smaller companies such as Gundari of Australian interests investing in Folegandros. What are the prospects for new foreign direct investment in the first half of 2023, and what are the targets?JOURNALIST: Greece has already entered a prolonged election period. Do you believe this will have a negative impact on the attraction and implementation of foreign investment in our country?K. FRAGOGIANNIS: Our bilateral relations with Australia are excellent, and despite the geographical distance between the two countries, the peoples and their political leadership share feelings of friendship and mental proximity. In terms of economic relations, there is great scope for enhancing cooperation and this is of particular interest to us. Strengthening and diversifying our trade is high on the agenda of the talks. To this end we are currently negotiating a bilateral agreement to avoid double taxation. Its successful outcome will undoubtedly give new impetus to our bilateral economic relations. The signs are encouraging. As a result of the Economic Diplomacy actions – outlined in the National Strategic Plan for Extroversion that we launched in 2021 – Greek exports to Australia increased by 9.5% in the first half of 2022, compared to the same period in 2021, amounting to €118.4 million (ELSTAT data). The effort continues.K. FRAGOGIANNIS: There is no doubt that our relations with Turkey are strained at the moment. Given that 2023 is an election year for both countries, things are quite fluid. In any case, Greece is addressing the situation calmly and rationally. We do not want tension. On the contrary, we consistently and actively support good neighborly relations. Our goal is regional security and stability, and all of our actions are geared toward that end. At the same time, we do not make any concessions in terms of our sovereign rights and national sovereignty. Regarding our economic relations with Turkey, I personally lead the initiative of the so-called Positive Agenda, on the Greek side. This is a joint project of the Greek and Turkish Foreign Ministries to establish systematic and methodical cooperation on a variety of economic issues (trade, transportation, energy, education, tourism, as well as the critical issues of climate change and environmental protection), which can only benefit both sides. I therefore remain confident and optimistic that the Positive Agenda will be reactivated soon, to the benefit of our overall bilateral relations with Turkey.K. FRAGOGIANNIS: Thank you for giving me the opportunity to make an important point about attracting investment. Because the secret of the current government’s success in attracting all of these global giants to Greece is precisely that we have created the right conditions. Which are these conditions? It is the triptych: political stability, social cohesion, economic growth. This triptych has turned the country into a reliable interlocutor and an appealing investment destination. And, obviously, this has been achieved through hard work, constant and consistent effort, planning, and vision.
I hope that the Greek people recognize the government’s collective effort, the results of which are visible in both the fundamentals of the economy and Greece’s strong presence and voice on the international stage today. This will be evident at the polls, which will be held for the first time in many years at the end of the government’s term. This is another sign of political stability, a sign that reinforces Greece’s modern image as a reliable interlocutor and partner.K. FRAGOGIANNIS: In these difficult times, when our modern world is being tested in many ways, I would like to send a message of optimism from Greece to the people of Australia in general, and the Greeks of Australia in particular. The success story of Greece, the country’s transformation over the last three and a half years in the midst of successive global crises, demonstrates that every crisis contains at least one opportunity. I am satisfied and proud that we, our government, were able to identify and make good use of this opportunity for the benefit of our country, of the Greeks living in Greece and of Greeks everywhere, who serve as valuable ambassadors for our country. You can also be and feel proud of modern Greece and be aware that the Greek state wishes and seeks every possible strengthening of our ties.JOURNALIST: First of all, we would like to begin this interview with your assessment of bilateral relations between Greece and Australia. What level do you believe they are currently at, and is Greece making any provisions or plans to strengthen economic bilateral cooperation? (Perhaps the conclusion of an agreement to avoid double taxation, a constant demand of the Greek Diaspora, will also play a role here.) K. FRAGOGIANNIS: As you very well mentioned, attracting investment has been and continues to be a priority of the Greek government, directly related to the modernization of the Greek economy and the shift in its production model. At the same time, it is a key goal of Economic Diplomacy. As a result, I am especially pleased that our investment-attraction strategy is bearing fruit.
We have already approved over €8.5 billion in business plans in the strategic investment section alone, with another €6 billion in the pipeline. These investments are expected to create approximately 4,500 jobs in the country!
The value of gross FDI for the first half of 2022 amounts to €4.3 billion, representing 86% of foreign investment in 2021, and the outlook for the next year is also promising.
Australia’s contribution in these investments is significant. Apart from the tourism investment of the luxury hotel complex “Gundari” in Folegandros, which is valued at €20 million, there is also interest in developing a tourism unit in Ithaca. There is also significant activity and interest in other sectors, such as renewable energy. Allow me to remind you that in September 2021, the Australian firm Macquarie made a huge investment by purchasing a 49% stake in DEDDIE. In fact, Macquarie has worked out a comprehensive investment plan for Greece in telecommunications, energy, and electromobility in the coming period.JOURNALIST: Would you like to send a message to Australia’s Greek community, which is eager to read news from Greece and is pleased with the progress that is being made in our country.K. FRAGOGIANNIS: The negotiations on the Free Trade Agreement between the EU and Australia are of key importance and aim to upgrade the partnership, particularly in trade, services, and investment. The achievement of a mutually beneficial agreement, always in the context of shared values and principles should give further boost to EU-Australia trade and investment relations.
The negotiations were launched in July 2018 and twelve rounds have been held to date, with the most recent round of negotiations in February 2022. The progress made so far has been satisfactory, with eight chapters or sub-chapters provisionally closed.
The meeting with the Australian Ambassador in Athens, Mr. Spyrou, and the chief negotiator, Ms. Burrows, was held in a very positive and constructive atmosphere, given our country’s excellent and very special relationship with Australia. Ms. Burrows updated us on the progress of negotiations in preparation for the next round. For my part, I raised the sensitive issue of the protection of emblematic Greek Protected Designation of Origin (PDO) products (feta in particular), to which the Greek side attaches particular importance, and this should be reflected in the future agreement. The Australian side primarily raised the issue of limited access to the European market.
