On 25th September 2011 Andrew Marr interviewed the Greek Minister for International Economic Relations, Constantine Papadopoulos. ANDREW MARR: The Chancellor George Osborne said there are just six weeks to save the Euro. That may be optimistic. The immediate question is whether the leading Eurozone countries like Germany have the political will, as well as the money, to prop up the weaker members. There's real concern over whether Greece can avoid default. I'm joined now from Athens by Greece's Minister for International Economic Relations, Constantine Papadopoulos. Good morning, Mr Papadopoulos. CONSTANTINE PAPADOPOULOS: Good morning. ANDREW MARR: Can I start by asking whether it's true, as reported in the British papers this morning, that there is a plan for a two trillion Euro bailout, a new bailout fund which would allow Greece to default on some of its debts but to remain inside the Euro? CONSTANTINE PAPADOPOULOS: I don't have that kind of information really, so I'd rather just stick to what I know and perhaps analyse the Greek situation within the framework that we know. ANDREW MARR: So the Greek situation is really that you are making eye-watering cuts, that there is a lot of dissent on the street, and yet outside Greece a lot of distrust as to whether Greece can make the kind of radical cuts that Germany and other countries are asking for? CONSTANTINE PAPADOPOULOS: I think the problem is not the cuts. The cuts can be almost seen as a substitute for other measures. What the problem is lies with structural reforms. Those are more complicated, more difficult to implement and more difficult to show results, and that's where we have been criticised for not taking sufficient action. ANDREW MARR: Mr Venizelos has said that it might be better to actually leave the Euro than to go through with some of this, or at least he's been reported saying so. CONSTANTINE PAPADOPOULOS: I have not seen this report and I would be very, very, very surprised if he ever said that. ANDREW MARR: What would the consequences be for your country if you were forced out of the Euro? CONSTANTINE PAPADOPOULOS: Well let me just say as a preliminary remark, we can't be forced because the Maastricht Treaty and the EU Treaties don't allow for that possibility. Now if we would want to withdraw, again legally a very, very moot point, but let's pretend that Greece can leave the Eurozone. That would have catastrophic consequences. I personally think that would take us back to the 1960s or 1970s. See right now we are within a system which offers us not just stability but funding. Now that would be very difficult to maintain if you are free floating outside the Eurozone by yourself. Not to mention the consequences on our economy. Don't think that Greece would suddenly become more competitive from one day to the other. I think actually the opposite would happen because you would have removed the most serious incentive to modernise. If you can resort to devaluation, that is such a short-cut which doesn't lead anywhere. It's a dead end street. I mean we saw that in the 80s and the 90s. The Greek economy started growing very solidly after we started making all the efforts necessary to join the Eurozone. ANDREW MARR: So when you talk about going back to the 60s and 70s - I mean that was the era of the colonels and all of that - are you saying that democracy itself in Greece would be imperilled under those circumstances? CONSTANTINE PAPADOPOULOS: No, I was talking about standards of living. ANDREW MARR: Economics only - okay, alright. CONSTANTINE PAPADOPEOULOS: Economics and the structure of the economy. That is to say … ANDREW MARR: So what do you mean … I was going to ask what do you need to hear now from your partners in the EU, particularly from Germany? CONSTANTINE PAPADOPOULOS: Well we don't need to hear anything. What we need to do is implement the plan and then our partners will keep their side of the bargain, which is to keep dispersing the aid package instalments. So that's what they tell us. ANDREW MARR: Are you convinced that Greece can stay inside the Euro? CONSTANTINE PAPADOPOULOS: Oh yes, yes, I'm convinced because of the consequences of not. There are two different issues. One is the sustainability of public debt and whether Greece can repay back all its debt. That's one issue. The other issue has to do with, as you say, staying within the Eurozone or outside. But I see, I cannot understand how leaving the Eurozone would ameliorate the other problem, which is to pay down one's debt. ANDREW MARR: Sure. Alright, Mr Papadopoulos, thank you very much indeed for joining us this morning. CONSTANTINE PAPADOPOULOS: Thank you for inviting me. INTERVIEW ENDS
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