VZCZCXRO3130
OO RUEHIK RUEHPOD RUEHYG
DE RUEHTH #0250/01 0571106
ZNR UUUUU ZZH
O 261106Z FEB 09
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3283
INFO RUEHZG/NATO EU COLLECTIVE

UNCLAS SECTION 01 OF 02 ATHENS 000250 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ECON OVIP ENRG TU GR
SUBJECT: CODEL DURBIN'S MEETING WITH GREEK OPPOSITION 
LEADER PAPANDREOU 
 
REF: ATHENS 207 
 
Summary 
------- 
¶1. (SBU) In a wide-ranging discussion February 18, Senator 
Durbin and main opposition PASOK party president George 
Papandreou shared views on the global economic crisis, 
Cyprus, Greek-Turkish relations, Afghanistan, and other 
issues.  They agreed that the international goodwill 
surrounding the new U.S. administration provided an 
opportunity to make lasting reforms in the global economy -- 
including expansion of renewable energy -- and to improve the 
global image of the U.S.  Papandreou stressed the "closeness" 
he feels with the U.S., the country of his birth, and he 
argued that the U.S. is "the only power in the world" able to 
take the lead in promoting our shared democratic values.  He 
added that Greece would be ready to do its part under a 
future PASOK government.  Papandreou expressed admiration for 
the recently signed U.S. economic stimulus package, and said 
he wished the EU would consider something similar. 
Unfortunately, he said, Germany had taken the lead in holding 
back the EU's reaction to the economic crisis, based on what 
Papandreou considered a misguided commitment to fiscal rules 
that made little sense in a recession.  Noting his role as 
current head of the Socialist International, Papandreou 
explained his work with leaders in the Muslim world and 
elsewhere to find peaceful ways to resolve disputes and to 
deal with terrorism.  He said he would be open to U.S. ideas 
if there were ways he could help build connections to 
confrontational leaders anywhere in the world.  End Summary. 
 
"Time to Work Together" 
----------------------- 
¶2. (SBU) Papandreou began the meeting with Senator Durbin, 
Illinois Treasurer Alexi Giannoulias, and the Ambassador by 
offering congratulations for the election of President Obama 
and by noting how his own life story was deeply connected 
with the U.S. (including a year Papandreou spent in high 
school in Elmhurst, Illinois).  Durbin noted the wide range 
of challenges facing the new administration, including the 
global economic crisis, Iraq, and Afghanistan.  Durbin also 
shared impressions of his recent visit to Cyprus, including 
the prospects for progress this year in the negotiations, as 
well as weaknesses in civil society.  Papandreou thanked 
Durbin for his work in the Senate on Greek-Turkish relations 
and other issues of importance to Greece.  Papandreou said 
that now is the time for us to work together, and he endorsed 
what he called President Obama's "message to world" to solve 
our common problems.  Papandreou said that although Greece is 
a "smaller country," it can contribute to stability in 
surrounding regions, and he noted in particular Greece's 
historic relationships with the Muslim world. 
 
¶3. (SBU) Durbin noted the importance of President Obama's 
first Executive Order on Guantanamo, torture, and ensuring 
humane standards for rendition, and Papandreou expressed 
strong support, adding that he had publicly used the 
President's statement about security and freedom not being 
mutually exclusive.  He agreed that there is currently an 
opportunity for the U.S. to create a different image around 
the world, observing that in the past it was easy for groups 
opposed to our shared democratic values to point to torture 
as a way to discredit the U.S.  Papandreou said that while 
the U.S. could not "dictate solutions," it was the "only 
power in the world that can lead" in promoting our values. 
Papandreou said we would have his support in this effort. 
 
Seeking a Large EU Stimulus 
--------------------------- 
¶4. (SBU) Papandreou said that early parliamentary elections 
were a real possibility in Greece, and he noted that opinion 
polls showed PASOK would likely win.  He stressed that the 
current government had been weakened by internal and external 
crises, and Greece needed a new government that would have 
the credibility with society to make difficult decisions and 
to mobilize people.  Telling the delegation "we can work with 
you," Papandreou noted that his top priority in government 
would be the same as President Obama's: dealing with the 
economic situation.  Papandreou said it would be in the 
interest of both Greece and the U.S. to push the EU to 
consider a larger stimulus package on the model of the U.S. 
stimulus.  He said the EU should do its part to encourage 
investment for the good of the global economy.  Papandreou 
lamented that the EU's cumbersome rules and the opposition of 
key members -- especially an overly inflation-phobic Germany 
-- had constrained the EU response to the crisis.  He called 
for the EU to relax its "master criteria" that require member 
states to run no more than a 3 percent budget deficit, 
arguing that these rules made no sense in a recession.  He 
also expressed support for ending disparities in interest 
rates for loans within the euro zone. 
 
ATHENS 00000250  002 OF 002 
 
 
 
¶5. (SBU) Durbin noted that energy independence was a key goal 
of the U.S. stimulus, and that the package's investment in 
renewable energy had resonated with the U.S. public. 
Papandreou agreed, noting it would be possible "to power 
Greece only with wind."  He expressed support for new 
windmills based on traditional Greek designs, so that tourist 
areas would embrace them as part of the Greek "brand" rather 
than opposing them as an eyesore.  He added that Greece had 
the potential to do more with solar, water, and geothermal 
power.  Papandreou also agreed with the Ambassador's 
suggestion that Greece look at developing its communication 
infrastructure, noting the economic benefits of expanding 
broadband access. 
 
¶6. (SBU) Asked by Durbin for his views on trade, Papandreou 
emphasized that he was not a protectionist, but instead took 
the social democratic view that markets should be open but 
governed by rules to encourage development.  He said he would 
like to see an organization like the IMF that would do more 
to put clear, strict international rules on financial 
development, "geared toward where we want to move the 
planet," including greater use of renewable energy.  He 
expressed support for "incentives for free competition" in 
the WTO that would over time improve the poor conditions that 
workers currently face in many poor countries.  Papandreou 
said both the U.S. and EU should be more open for trade in 
agriculture.  He noted that Greece could do well as a niche 
producer of high-quality agricultural goods in a more 
competitive market. 
 
¶7. (SBU) Giannoulias asked about the alarming growth in 
Greece's public debt, and Papandreou agreed it was a problem, 
unlike private debt and toxic assets, two problems Greece had 
largely managed to avoid.  Papandreou said Greece lacked of 
competitiveness, and this could be dealt with through 
modernization, including moving toward a green economy.  He 
noted that Greece was made more vulnerable to the global 
financial crisis because its banks had invested heavily in 
the Balkans.  He peppered the delegation with questions about 
how the U.S. was responding to the current economic 
challenges in the areas of real estate, unemployment, and 
public transportation.  Durbin and Giannoulias noted the 
importance of infrastructure investment as part of the U.S. 
stimulus. 
 
Papandreou's International Outreach 
----------------------------------- 
¶8. (SBU) Papandreou said his position as leader of the 
Socialist International had given him access to a wide range 
of leftist parties around the world, some in power and some 
not.  Noting that he had helped eastern European communist 
parties to democratize after the fall of the Berlin Wall, 
Papandreou said he would be willing to reach out to 
confrontational leaders in Latin America or elsewhere in the 
world if the U.S. thought he could be of use in building 
connections.  Papandreou noted that the Socialist 
International had brought together Palestinian and Israeli 
parties to discuss peace plans, and that he had discussed 
with Pakistani President Zardari the idea of setting up a 
committee to find ways to isolate terrorist groups without 
relying solely on force.  Papandreou added that he had doubts 
about the wisdom of Zardari's recent cease-fire agreement 
that permits Sharia law in parts of Pakistan, but he 
understood that Zardari was in a difficult situation. 
Papandreou said he had developed contacts with such countries 
as Syria and Iran during his tenure as Foreign Minister 
(1999-2004). 
 
¶9. (SBU) Turning to Turkey and Cyprus, Papandreou stressed 
that as Foreign Minister he and his Turkish counterpart, the 
late Ismail Cem, had launched a new era in bilateral 
relations, based in part on a significant increase in 
person-to-person contacts.  These started with mutual 
assistance efforts following earthquakes in both countries in 
1999 and continued with exchanges in music, soccer, business, 
and local government.  By the initiative's second year, 
Papandreou said, there were so many cross-border civil 
society activities that it was impossible to count them.  He 
said he had promoted similar efforts in Cyprus, including a 
high-profile case in which a Turkish Cypriot boy with 
leukemia had been matched with a Greek Cypriot donor.  These 
initiatives stopped after the failed referendum in Cyprus in 
¶2004.  Papandreou said it would be important to push on 
initiatives such as these when PASOK is back in power.  If 
the leadership empowers people to establish contacts, he 
said, those contacts will happen. 
 
¶10. (U) CODEL Durbin departed post prior to clearing this 
cable. 
SPECKHARD