The Greek government is examining plans to cut the country’s public debt by 20-30 billion euros through the securitization of future revenues from an energy program called “Helios”, in cooperation with Germany, an Environment, Energy and Climate Change ministry top official said on Friday.
The plan envisages the production of electricity energy from photovoltaic projects and the export of electricity to German and other interested countries in western Europe. The project, is budgeted at 20 billion euros, while the energy units will have a power of 10 GW. Power production from these units, combined with energy absorption prices from renewable energy sources currently prevailing in Germany, guaranteed revenues totaling 80-100 billion euros for Greece in the next 25 years. The same source said that after signing the contract with Germany for the construction of the power units and the selling of electricity to Germany, Greek authorities could examined with commercial banks ways to securitize future revenues. Greece seeks to sign an agreement with Germany and the European Union by the end of the year to ensure community funding in the project.
German business delegation
German businessmen will present 32 specific business plans to their Greek counterparts during their meetings in Athens. These plans mainly cover investments in renewable energy sources, constructions, real estate, tourism, machinery equipment, consultancy services, IT, etc. The German business delegation comprises of 70 businessmen and executives. They will meet with more than 350 Greek businessmen and representatives of Greek enterprises from 24 different sectors of the economy, emphasizing in energy, technology, pharmaceuticals, medical and tourism services and retail commerce.
German businessmen were particularly interested in selling equipment and technology to the Greek market, while their interest in real estate focused on tourism investments and golf courses.
Dimitris Daskalopoulos, president of the Federation of Hellenic Enterprises, during a meeting with German vice-chancellor Philip Roesler and Greek Development Minister Mihalis Chryssohoidis, urged for the need to strictly adhere to the July 21st decisions and stressed that Greek businessmen’s patriotism was proved in action, saying that modern and organized enterprises covered 68 pct of corporate taxes in 2009, while they paid a total of 1.8 billion euros in extra tax charges in 2010. The vast majority of Greek businessmen continue to strive and produce, amid a deep recession, a credit crunch, heavy taxes and uncertainties, Daskalopoulos said and urged German businessmen to take a bet on Greek growth by participating in common investment plans and business initiatives.
Markus Kerber, an official of the Federation of German Industry, noted the time of Greek economy has come and urged German media to contribute in improving a climate in German public to restoring confidence in the capabilities of the Greek economy.
Mikael Kemer, a representative of the Association of German Banks said banks were examining the risk in every investment and in the Greek case, this risk also included the possibility of Greece leaving the eurozone and returning to the drachma currency.