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INFO EUROPEAN POLITICAL COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 03 ATHENS 000113 
 
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E.O. 12958: DECL: 2020/02/18 
TAGS: PREL PGOV ECON EFIN PTER GR PINR
SUBJECT: Papandreou Cabinet Insider Pamboukis on Managing the 
Politics of Greek Reforms, Foreign Policy 
 
CLASSIFIED BY: Deborah A. McCarthy, Charge D'Affaires, State, EXEC; 
REASON: 1.4(B), (D) 
 
¶1.        (C)  SUMMARY: Ambassador called on Minister of State 
Haris Pamboukis February 1 to gain a better understanding of the 
GoG's internal deliberations on reforms, the economic crisis and 
domestic stability, and on regional foreign policy priorities. 
Pamboukis, a constitutional lawyer who eschews the limelight, is 
widely reputed to be one of PM Papandreou's key advisors.  He was 
firm on the need for promoting transparency and tackling 
corruption, said the Greeks are ready for real reforms, and he 
believed opposition New Democracy Leader Samaras would be 
supportive.   He noted that Greece's fiscal challenges are real, 
but not as dire as markets (which have other agendas relating to 
the euro) indicate.  The GoG is operationalizing its 
counterterrorism/domestic security strategy with support from a 
Greek public which, since the days of the November 17 group's 
attacks, had changed its views on the legitimacy of violence 
against authority.   Ambassador noted that Greece faces a number of 
foreign policy issues at the same time it is trying to build a 
consensus for major domestic reforms, and asked whether the GoG 
would be able to manage all of these challenges politically. 
Pamboukis noted that on most issues, especially Turkey, there is 
already a broad consensus for moving forward.  The GoG will press 
forward on key foreign policy challenges, and Pamboukis believed 
the Macedonia name issue would be resolved in the medium term - 
certainly before the end of the current GoG's mandate.  Improvement 
in relations with Turkey must be done in small "doses" with 
concrete results along the way. END SUMMARY. 
 
 
 
¶2.        (C)  Ambassador called on Minister of State Harolambis 
"Haris" Pamboukis February 1, accompanied by DCM and Pol counselor. 
Pamboukis was accompanied by PM Papandreou's Diplomatic Advisor 
Ambassador Dimitris Paraskevopoulos.  Pamboukis is widely 
understood to be one of Papandreou's closest and most trusted 
advisors, particularly on domestic issues and legislation. 
Pamboukis told us the GoG is proceeding methodically to address 
long overdue structural reforms as it faces the financial crisis. 
It is seeking long term solutions, not immediate ones as financial 
markets are wont to look for.  He said they realize that what 
happens in Greece has serious implications for the Eurozone and he 
had no doubt in the market there are speculative movements. 
 
 
 
Transparency Key to building Public Support 
 
--------------------------------------------- ------- 
 
 
 
¶3.        (C)   Meeting on the day when the GoG was consulting in 
the parliament on promoting transparency and fighting corruption, 
Pamboukis insisted that government transparency will be key to 
building public support for tough reforms.  The new government's 
commitment to "e-government" is central; every ministerial decision 
allocating funds will have to be posted on the internet within four 
days.  Corruption, both large and pretty, is pervasive in Greece, 
and Papandreou will lead the fight by personal example. 
 
 
 
¶4.        (C)  In response to Ambassador's comment that the current 
state of the Greek economy adds to the challenges of building 
public consensus, Pamboukis acknowledged that the GoG inherited 
many problems, the scope of which were still being uncovered. 
Pointing to the growth in budget deficit forecasts from 3.7 percent 
just before the last elections to 12.7 percent now, he said the GoG 
was committed to responsibly addressing the fiscal crisis.  Saying, 
"we don't deserve what the markets are doing to us," he 
acknowledged that the Greeks themselves were mostly responsible for 
the mess confronting the country today.  The GoG is constantly 
reviewing its approach, and will present a new 2010 budget to 
parliament before the end of February. The GoG has to confront this 
crisis on three fronts: reviewing/renewing its budget to bring the 
deficit down, going to EU partners for political support, and 
talking down market concerns.  "We created this mess and we will 
solve it - in the Greek way." 
 
ATHENS 00000113  002 OF 003 
 
 
¶5.        (C)   Asked what plans the GoG had to address the 
well-known shortcomings in its official statistics, Pamboukis 
preferred to focus on overall improvements in government efficiency 
and transparency, while managing sometimes hostile perceptions from 
abroad.  Pressed by the Ambassador on Wall St concerns that the 
PASOK government appeared to be divided in its policy approach 
between old-school thinkers and technocrats, Pamboukis acknowledged 
that divisions existed "naturally" during the policy formulation 
process.    It's after the PM makes the decision that everyone must 
fall into line.  Papandreou himself was a good "father figure" for 
Greeks in these hard times.  He can lead the GoG in building the 
public consensus needed for Greece to confront tough reforms.  The 
good news is that, as of now, the Greek people were understanding 
of the need, and many wanted to see quick action by the GoG. 
 
 
 
¶6.        (C)   Working with an opposition that supports reforms 
offers the GoG new opportunities to push them through.  Samaras and 
New Democracy had so far been supportive. The GoG "will go as far 
as possible" to work with and inform the opposition parties.  An 
example was the party leaders' conferences held later that day. 
 
 
 
Greek Public Wants Security 
 
----------------------------------- 
 
 
 
¶7.       (C)   Turning to security issues, Ambassador asked 
Pamboukis his approach to fighting terrorism, given an upsurge in 
security incidents in Greece over the last two years (reported 
septel).  Pamboukis said this was a high priority for the new 
government. The outgoing ND-led government had made progress making 
needed legal reforms, and the PASOK government will now look at 
operationalizing them.  First they will find the law-enforcement 
personnel that had been trained in C/T for the 2004 Olympics, and 
bring them back into service.  Better use of information, including 
as evidence for court proceedings, would be addressed.  The GoG 
would also try to "follow the money" to identify and choke off 
sources of funding for these groups. 
 
¶8.       (C)  Pamboukis was confident progress would be made - 
Greek society had changed since the days of the old ideological 
terrorist groups of the 1980s and 1990s.  The average citizen was 
not happy with the riots in December 2008, notwithstanding a long 
Greek tradition of supporting "rebellion against state authority." 
This was good because the terrorist/anarchist groups themselves had 
changed, and now were more international and "polymorphic," 
although he did not believe that Greece's domestic terrorist groups 
had any relation with international terrorism.  Pamboukis believed 
that Minister of Public Order Chrysochoides was effective - but the 
Public Order Ministry was not always aggressive enough in arresting 
individuals when evidence had presented itself.   The new groups 
were many and active, but they were "not nearly as professional as 
the old November-17 groups." 
 
 
 
Foreign Policy: Plan is to move Methodically 
 
--------------------------------------------- ------- 
 
 
 
¶9.       (C)  Turning to foreign policy issues, the Ambassador 
asked whether the GoG could sustain tough compromises in the key 
regional issues on which the USG would like to see movement - the 
Macedonia name   issue and Greece-Turkey relations.  Pamboukis 
replied the GoG does have a program to address these issues, but it 
would be difficult to pay the political cost of compromise in this 
environment. Macedonia's name is an example - he was convinced it 
would be solved during the current government's term, "but not in 
the next three months."     Improving relations with Turkey, 
 
ATHENS 00000113  003 OF 003 
 
 
likewise, will take time and must be done in steps that result in 
concrete improvements. The GoG understands that Erdogan has a 
difficult internal political job ahead of him as he promotes 
reforms.  The exchange of letters between him and Papandreou was a 
positive first step.    Having said that, the GoG bases its 
positions in law - while the Turkish approach appears to be based 
on deal-making.  This won't work. There is a mechanism in place for 
the two sides to talk.  The GOG does not intend to "enlarge the 
agenda."  The two sides should proceed only when they are prepared 
to go to the end of the process - but there is scope now for 
building confidence. 
 
¶10.   (C)  BIOGRAPHICAL NOTE: Minister of State for the Prime 
Minister Haris Pamboukis:  A professor at the law school of the 
University of Athens, Haralambos Pamboukis is often considered the 
prime minister's alter ego. He is responsible for the horizontal 
coordination of the different ministries and their jurisdictions 
and elaborating the strategic choices of the government in all the 
critical spheres of the policy making. He studied Law at the 
University of Paris (N!aris 1- N!antheon Sorbonne). PhD from the same 
university (January 1990 Docteur d'Etat en droit (Tres honorable) 
L' acte public etranger en droit international prive, pref, 
Lagarde, Bibliotheque de droit prive, t. 219, Paris, LGDJ, 1993 
XXII+360 ). Alternate Professor of international private law at the 
Law Faculty of Athens. Honorary Professor at the International Law 
Academy of The Hague. Partner of Law Office 
Siouti-Pamboukis-Flogaitis of Athens focusing mainly on 
international mediation and alternative disputes resolution. (Ms 
Siouti is the law expert at Papandreou's office and Flogaitis has 
been appointed several times caretaker Minister in charge of 
national elections). Long standing relations with the PMs family. 
He has vacationed many summers with George Papandreou in Southern 
France. Director of the political office of Papandreou and 
Secretary General of the MFA when Papandreou was Foreign Minister. 
Born in 1958 in Athens, married. He speaks English. He is one of 
the five persons George Papandreou talks and consults and spends 
private time with (the others are: the Director of his office and 
long-standing PASOK professional cadre Nikos Athanasakis, Deputy 
Education Minister John Panaretos, Culture Minister Paul 
Geroulanos, and his brother Nikos Papandreou). 
MCCARTHY