Post by radovic on Jun 5, 2008 21:25:33 GMT -5
Pipeline deal highlights Greece's complex regional role
02/06/2008
Greeks often feel their country's prominence in the region does not translate into diplomatic clout. The quest for influence may be one of the key factors behind the administration's decision to join South Stream.
By Christos Ringas for Southeast European Times in Athens -- 02/06/08
The Greek media highlighted the pipeline's importance for ensuring Greece's strategic position in the region. [Getty Images]
The South Stream pipeline agreement that was signed between Greece and Russia late last month was widely heralded at home. Daily newspapers in Greece carried triumphant headlines, highlighting the pipeline's importance for ensuring Greece's strategic position in the Balkans.
It may, however, have opened a Pandora's box in terms of transatlantic diplomacy. Although the US State Department gave no official response, Greek media have widely reported off-the record comments, which suggest unease Many experts believe South Stream has the potential to cement Russian dominance over natural gas supplies by transferring it to Western Europe via Greece.
The administration of Costas Karamanlis has sought to nurture its ties with the United States. Why, then, did Greek political leaders insist so strongly on going ahead with South Stream?
Earlier this month, Greece's Development Minister Christos Folias told the local press that relations between Greece and the United States had not been strained by the signing of the South Stream agreement. "There are no differences, nor have our relations been strained. We agree absolutely with the United States that the aim is the non-creation of monopoly or single-supplier situations. If you depend on one [source], then you are doomed from the start," Folias said.
Karamanlis has referred to the South Stream project as "a contribution to our country’s and Europe’s energy efficiency … included in our general policy for the diversification of energy sources, rendering Greece an important hub for energy resources. Greece's choices in the field of energy have our country's energy security as well as that of our European partners exclusively in mind through a mutually beneficial co-operation between suppliers, transporters, and consumers of energy."
Russian President Vladimir Putin (right) and Greek Prime Minister Costas Karamanlis hold a press conference after signing the deal to extend the proposed Russian-Italian South Stream gas pipeline into Greek territory. [Getty Images]
Greece's internal and external agendas also are major players. The long-awaited accord came during a difficult phase for the government. Now in its second term, Karamanlis's administration has faced a number of complex issues, especially since the start of the year.
It also has been hit hard by a sex scandal involving Christos Zachopoulos, the former secretary-general of the culture ministry. Zachopoulos had control over allocating large amounts of EU and domestic funds, and was the administration's point man in the campaign to win back the Elgin Marbles. In December, however, a video of his sexual trysts with an aide surfaced and he was forced to resign. Shortly afterwards, he attempted suicide by jumping from a balcony.
The whole lurid saga provided media fodder for months and the government's poll numbers have dropped. The New Democracy party is now only slightly ahead of its main rival, PASOK.
On the domestic policy front, the administration has found it no easy task to bring about major reform of the social security system. Its efforts were met with strikes across a variety of sectors, holding the economy hostage for almost a month. Everything from the stock market to the electricity supply was affected.
In foreign affairs, meanwhile, the top story has been the Macedonia name dispute. The long-standing quarrel flared up again as NATO prepared for its summit in Bucharest, where three Western Balkan countries were expected to get invitations to join NATO. Intense pressure was brought to bear on both Athens and Skopje to hash out a deal, but the efforts proved fruitless. Greece ended up using its veto power in NATO, but doing so put it on a somewhat lonely path.
The way Greeks see their position in the region is that they represent a dominant power in political, economic and military terms. They believe, however, that this power has not been reflected in the arena of international diplomacy -- something that annoys the average Greek citizen. Over the years, successive administrations have had to modify their positions on numerous issues, including the name dispute.
Many held strikes against the government's social security reform plan. [Getty Images]
Greece is a full member of both NATO and EU. But many in the country feel they do not get the support they would like from their allies. The government, meanwhile, is anxious to demonstrate to voters that it effectively sticking up for the national interest. Too often frustrated in diplomacy, Greece has had to extend its arm in alternative directions that would supply the much-needed international recognition of its geopolitical status.
An opportunity came in the energy sector. The rise in oil prices, combined with increased demand from Asia, has pushed countries to think hard about their energy future. Oil, moreover, is not the only resource at stake. The former Soviet Union has vast resources in natural gas and also in water, which many analysts see as the next industrial commodity.
Russian leader Vladimir Putin has not been slow to leverage his country's energy assets and remind the world that Moscow is still a key geopolitical player. Dimitri Medvedev, who ran Gazprom at the time South Stream was conceived, has now succeeded Putin as president.
Russia has denied that South Stream is meant to undermine the Nabucco pipeline, which would transport Caspian oil to the West via Turkey and Eastern Europe. The EU, seeking to diversify its energy sources has said Nabucco is a top priority. Yet the project has been slow to gain momentum, and many analysts attribute this sluggishness to competition from South Stream. Critics, meanwhile, point to the high cost and other potential problems with the Moscow-backed project. They charge that politics is the driving force behind it, rather than economic sense.
For Greek leaders, nevertheless, the Moscow-backed pipeline offers Athens a chance to carve out its own role. It is the second natural gas pipeline that Greece will be involved in. The other is the Turkey-Greece-Italy (TGI) project. Planned for completion in 2012, it will have a projected capacity of 11.5 billion cubic metres annually.
Between South Stream and TGI, Athens may now have a means to establish the stronger geopolitical position that it so eagerly desires. Domestic analysts see Greece as now having two wild cards in its deck.
02/06/2008
Greeks often feel their country's prominence in the region does not translate into diplomatic clout. The quest for influence may be one of the key factors behind the administration's decision to join South Stream.
By Christos Ringas for Southeast European Times in Athens -- 02/06/08
The Greek media highlighted the pipeline's importance for ensuring Greece's strategic position in the region. [Getty Images]
The South Stream pipeline agreement that was signed between Greece and Russia late last month was widely heralded at home. Daily newspapers in Greece carried triumphant headlines, highlighting the pipeline's importance for ensuring Greece's strategic position in the Balkans.
It may, however, have opened a Pandora's box in terms of transatlantic diplomacy. Although the US State Department gave no official response, Greek media have widely reported off-the record comments, which suggest unease Many experts believe South Stream has the potential to cement Russian dominance over natural gas supplies by transferring it to Western Europe via Greece.
The administration of Costas Karamanlis has sought to nurture its ties with the United States. Why, then, did Greek political leaders insist so strongly on going ahead with South Stream?
Earlier this month, Greece's Development Minister Christos Folias told the local press that relations between Greece and the United States had not been strained by the signing of the South Stream agreement. "There are no differences, nor have our relations been strained. We agree absolutely with the United States that the aim is the non-creation of monopoly or single-supplier situations. If you depend on one [source], then you are doomed from the start," Folias said.
Karamanlis has referred to the South Stream project as "a contribution to our country’s and Europe’s energy efficiency … included in our general policy for the diversification of energy sources, rendering Greece an important hub for energy resources. Greece's choices in the field of energy have our country's energy security as well as that of our European partners exclusively in mind through a mutually beneficial co-operation between suppliers, transporters, and consumers of energy."
Russian President Vladimir Putin (right) and Greek Prime Minister Costas Karamanlis hold a press conference after signing the deal to extend the proposed Russian-Italian South Stream gas pipeline into Greek territory. [Getty Images]
Greece's internal and external agendas also are major players. The long-awaited accord came during a difficult phase for the government. Now in its second term, Karamanlis's administration has faced a number of complex issues, especially since the start of the year.
It also has been hit hard by a sex scandal involving Christos Zachopoulos, the former secretary-general of the culture ministry. Zachopoulos had control over allocating large amounts of EU and domestic funds, and was the administration's point man in the campaign to win back the Elgin Marbles. In December, however, a video of his sexual trysts with an aide surfaced and he was forced to resign. Shortly afterwards, he attempted suicide by jumping from a balcony.
The whole lurid saga provided media fodder for months and the government's poll numbers have dropped. The New Democracy party is now only slightly ahead of its main rival, PASOK.
On the domestic policy front, the administration has found it no easy task to bring about major reform of the social security system. Its efforts were met with strikes across a variety of sectors, holding the economy hostage for almost a month. Everything from the stock market to the electricity supply was affected.
In foreign affairs, meanwhile, the top story has been the Macedonia name dispute. The long-standing quarrel flared up again as NATO prepared for its summit in Bucharest, where three Western Balkan countries were expected to get invitations to join NATO. Intense pressure was brought to bear on both Athens and Skopje to hash out a deal, but the efforts proved fruitless. Greece ended up using its veto power in NATO, but doing so put it on a somewhat lonely path.
The way Greeks see their position in the region is that they represent a dominant power in political, economic and military terms. They believe, however, that this power has not been reflected in the arena of international diplomacy -- something that annoys the average Greek citizen. Over the years, successive administrations have had to modify their positions on numerous issues, including the name dispute.
Many held strikes against the government's social security reform plan. [Getty Images]
Greece is a full member of both NATO and EU. But many in the country feel they do not get the support they would like from their allies. The government, meanwhile, is anxious to demonstrate to voters that it effectively sticking up for the national interest. Too often frustrated in diplomacy, Greece has had to extend its arm in alternative directions that would supply the much-needed international recognition of its geopolitical status.
An opportunity came in the energy sector. The rise in oil prices, combined with increased demand from Asia, has pushed countries to think hard about their energy future. Oil, moreover, is not the only resource at stake. The former Soviet Union has vast resources in natural gas and also in water, which many analysts see as the next industrial commodity.
Russian leader Vladimir Putin has not been slow to leverage his country's energy assets and remind the world that Moscow is still a key geopolitical player. Dimitri Medvedev, who ran Gazprom at the time South Stream was conceived, has now succeeded Putin as president.
Russia has denied that South Stream is meant to undermine the Nabucco pipeline, which would transport Caspian oil to the West via Turkey and Eastern Europe. The EU, seeking to diversify its energy sources has said Nabucco is a top priority. Yet the project has been slow to gain momentum, and many analysts attribute this sluggishness to competition from South Stream. Critics, meanwhile, point to the high cost and other potential problems with the Moscow-backed project. They charge that politics is the driving force behind it, rather than economic sense.
For Greek leaders, nevertheless, the Moscow-backed pipeline offers Athens a chance to carve out its own role. It is the second natural gas pipeline that Greece will be involved in. The other is the Turkey-Greece-Italy (TGI) project. Planned for completion in 2012, it will have a projected capacity of 11.5 billion cubic metres annually.
Between South Stream and TGI, Athens may now have a means to establish the stronger geopolitical position that it so eagerly desires. Domestic analysts see Greece as now having two wild cards in its deck.