Greece reiterates its commitment to deficit reduction

The financial woes of Portugal and Ireland have pushed Greece’s troubles into the background in recent weeks, a reprieve from this summer when a Eurozone bailout pulled the Balkan country from the brink of bankruptcy. Since then, public spending cuts to wages and pensions have reduced the Greek deficit by nearly half, and the government is looking for increased tax revenue and foreign investment to bring it down further.

Last week, Greek Foreign Minister Dimitris Droutsas met with Times Foreign Editor Bruce Wallace in Los Angeles, part of a government campaign to improve Greece’s battered image abroad and to counter money market worries that the country may yet default on at least part of its debt.

Q: Your truck drivers have been on strike for three weeks. Your railways are stopped. Even pharmacists are considering a strike. Are you going to be able to continue with reforms in this political environment?

A: Important reforms have already been decided and are being implemented, especially pension reform, which by definition is politically difficult. Certainly we see voices in Greece that express frustration. But the demonstrations are peaceful. That is the most important thing.

Q: You have explored new revenue paths by soliciting foreign investment from China, Libya and Qatar. What do you give up with these deals?

A: Greece is not giving up anything. This is one more sign that the international economic players are again putting their confidence in the Greek economy. One of the major projects is the Port of Piraeus, which China has decided to use as the main hub for [exports] to the European market. This shows very clearly that Greece has a valuable strategic position as an entry point to Europe but also the Balkans, Middle East and Caucasus.

Q: There have been harsh words about the way Greece fudged its accounting to be eligible to join the euro currency union. Are you resentful of the way Greece is seen abroad?

A: Certainly Greece and the Greek people went through difficult times with comments by the international media. Sometimes unfairly. It is not easy to take this, especially at a moment when the Greek people showed their readiness to make very difficult reforms and accept difficult measures.

But this period belongs to the past. There is a clear recognition of what the Greek people have done in the past months.

Q: Some market observers say that despite the steps it has taken, Greece will still have to default on some of its debt.

A: Such rumors are out of the question. We are on a good track.

Q: But you are not out of the woods yet.

A: We are realistic and serious. But our determination and commitment to reform is stable and sincere.

bruce.wallace@latimes.com