Change in perspective

A few years ago, Greece was the focus of global attention, with "Grexit" seemingly the European Union's biggest problem. Now it is Brexit that Europe is losing sleep over. Looking back, Greece is no longer a problem, and Brexit will likely run a similar course. I believe that such optimism is very important, especially with regard to the issue of investment in Greece.

The current political situation in Greece gives us a reason for optimism. Political uncertainty has been easing since July. Over the past three to four years, Greece was run by a left-wing government, which was under a lot of pressure because of the bailout referendum, putting the ruling party in a difficult position. Ultimately, it was unable to push through national reforms as it lacked the support of the vast majority of the people. The past four years saw personal income in Greece shrink by 25 percent, a time of forced austerity for Greeks. Now, there is more political certainty with broad support for the center-right party that won the election.

The Greek economy is also a cause for optimism. The Greek economy is growing at 2 percent this year, and it is expected to grow at 2.8 percent next year, according to government projections. The EU projection for Greek growth, although not as rosy, is still a decent 2.2 percent. Numbers aside, there is at least a palpable change of sentiment throughout the nation as people are once again hopeful on growth. Adding to the optimism is a drop in the unemployment rate, down to 15 percent from 17 percent to 18 percent. Public indebtedness is also projected to come down to around 165 percent of GDP from its current levels of 180 percent. Overall speaking, the economy in Greece is heading in the right direction.

There is a third cause for optimism, the cooperation framework Greece has developed with China and enhanced through the years. A new agreement was signed in November that provides both nations with sense of certainty about their cooperation, and which will encourage more Chinese companies to invest in Greece.

Additionally, Greece is part of two cooperation platforms. One is the Belt and Road Initiative, which Greece became the first European country to join.

COSCO has been investing in ports for 10 years by now. In the year 2016, COSCO's stake in Piraeus Port reached 51 percent after a decade of expanding its shareholding, which reflects the mutual trust between Greek leaders and COSCO.

Piraeus Port is the biggest entry port in Europe for incoming Chinese products, and Chinese investment has expanded its throughput capacity, which, in addition to railroad and highway transportation capacity, benefits not only Greece but also nearby countries. Now there are many industries in Greece open to investment, including energy, agriculture, medicine and tourism, which offer great opportunities for both countries.

Greece is also part of the 17+1 Initiative, which is China's cooperation framework with Central and Eastern European countries, one with global vision that spells a bright future for China-Greece cooperation.

Having said that, constraints also exist. In Greece and other parts of the world, fear is rising against the backdrop of globalization. The best response to fear is to signal kindness, and that is what we need to do in Greece and in Europe. Solidarity within the European Union is important for Greece and all other member countries. China and Greece share common interests and values. For example, they both champion multilateralism and stand to benefit from an open world and economic growth. This is why we need to signal kindness to create win-win strategies.

The Belt and Road Initiative and the 17+1 platforms are examples of win-win cooperation. As a member of NATO, Greece is also worried about something else, the United States. Specifically, what the latter will think if Greece seems to get too close to China. Just a few weeks ago, US Secretary of State Mike Pompeo said that Greece might get into trouble by working with China too much. Pompeo might have wanted to encourage Greece to look more globally, but I truly believe that Greece has set an excellent example for the EU by working proactively with China. Since success stories are the best antidote to fear, specific cases and examples can help everyone.

The globalized environment in which we live is not the same as it was a decade ago. As such, sticking to what worked in the past would leave us ill prepared for future challenges, because globalization is already generating diminishing returns. The past three decades have been a golden era of globalization in China, with almost 800 million people lifted out of poverty and many other success stories. Europe, however, is already experiencing the dark side of globalization. The middle class is worse off than before and the poor have become even poorer. The richest 1 percent now owns 80 percent of global wealth, and such inequality is untenable.

To prevent such an unsustainable model of globalization from a systemic collapse, European countries must work together, and with China. Sino-European relationships are of particular importance at a time when people in China seem to believe in the supreme importance of Sino-US relations. I believe that Europe's relationship with China is just as important, if not more so, than its relationship with the United States, because it is the relations between China and Europe that will determine the survival of globalization as we know it.

Africa is also a key player in globalization. China's ties with Africa are growing each year, with $60 billion in investment in Africa. Europe also has long-running ties with Africa.

If we want to safeguard this type of multilateralism and make sure that it benefits all, we must work to build tripartite partnerships to strengthen cooperation between China, Europe and Africa, which will be key to the success of globalization in the 21st century. To make this happen, we can implement projects together. President Xi Jinping has proven himself a great visionary in proposing the Belt and Road Initiative and the 17+1 framework. We must build productive trilateral relations between our continents and take a long-term approach to ensure sustainable development in the future.

The author is former prime minister of France and distinguished professor at China Europe International Business School.

The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.

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