VISITING Greece after an absence of four months, the dramatic change that has rocked this nation is striking.
It is a country and a people in mourning. Gone is the near arrogant self-confidence, the free-spending, casual, laid-back approach. In its place is a country gripped with uncertainty, facing a threatening future. As one inhabitant of Thessaloniki put it over a coffee (which I paid for, under the circumstances), “Everybody is angry, unhappy and worried. People are losing their jobs, have taken cuts in their pay packet and worry about a future for their children.”
Everywhere one goes, you see closed businesses, properties standing empty – in fact, the atmosphere is distinctly doom-laden. To walk in Athens’ Syntagma Square, where angry crowds are holding ‘silent’ demonstrations, is frightening, largely because one senses that the people are desperate. They are silent precisely because they see no solution to their country’s dilemma, which threatens to destroy them. As a young and successful Athenian business consultant put it, “There is no solution. The game is over. We have absolutely lost all confidence in our politicians. They are ALL corrupt – it is in their very bones. They cannot turn years of corruption and neglect around. Our country is doomed to chaos and the potential for a violent eruption by the masses is very real.”
Is Greece a failing state? Economic and financial indicators and statistics point in this direction. What usually follows is a collapse of services, of law and order and of commercial enterprises – and Greece is fast approaching this point. In its death throes, a state of denial of the crisis permeates public opinion, and blame is apportioned to everyone and everything except the failed state’s own actions. This description fits.
Amongst all this gloom and doom, one person struck me as somebody who could make a difference – at least where he is in charge.The reason? He is no politician but a businessman with an urge to serve.
In an exclusive interview with Thessaloniki’s new mayor (he has been in office since January), Iannis Boutaris was frank and clear on the actions required to put his city, the second largest in Greece (population over one million), on the path to recovery. Boutaris, who owned and managed one of the largest wine businesses in Greece for many years, has brought his private-sector management skills to bear on a large and over-manned bureaucracy. He still owns a wine estate.
Speaking in his office in the brand-new municipal offices, the sprightly sixty-something wearing an ear-stud and tattooed on arms and hands, presented a picture of energy and drive. He spoke freely about his ambitions for his favourite city and about the economic crisis that threatens to undo his initiatives.
With your background in the private sector, and what with the financial crisis, how is all this affecting your new job?
In 2002 I was elected as councillor representing the Communist Party – a surprise move, as I have nothing to do with the Communist Party – but I stated clearly that I just wanted to understand, from the inside, how things work in the municipality. I decided in 2006 to stand without any party affiliations as an Independent for election to the city council. To everybody’s surprise we [Boutaris and two other independents] got 16 per cent of the votes, without any organisation or party machinery backing, and without much money being spent on a campaign. I realised then that without the support of any party our share of the vote would stay at 16 per cent and so we got backing from Pasok, the Democratic Left and from individuals such as Dora Bakoyiannis, the then New Democracy Minister of Foreign Affairs.
How do you intend to change things around in Thessaloniki?
On your own, you can achieve nothing. I decided to concentrate on building alliances, even with political opponents. When I became mayor, I went to the Bishop of Thessaloniki, who holds very different political views from mine, and said, “Although we shall never be friends, it is in the interest of the city that we should work together.” He agreed.
[Boutaris is committed to an open and transparent administration. Every Monday, the council meetings are open to all citizens. They can attend, ask questions and offer their views. These sessions are broadcast and televised in the Thessaloniki area.]
What do you regard as the most important issues that you wish to tackle during your term as mayor?
My mission is to give this city back to its inhabitants. To do this, I have set myself three goals:
Firstly, to clean up this beautiful city by improving garbage management drastically; secondly, freeing up the traffic flow in the city by solving the problem of traffic congestion, and, thirdly, reaching out and supporting the needy of the city in this time of crisis.
We have just started a recycling programme by spreading collection tins and collection vehicles around the city and by increasing public awareness in an effort to change the mentality of the people – to make them realise that there is profit to be had from recycling. People are fed up with the mess, they are eager to cooperate. Up to now, garbage collection was purely a public action, but now municipalities can combine public and private garbage collection thanks to a change in the laws, making a mixture of public and private collection possible, in order to bring down the cost of garbage collection.
As far as the traffic congestion is concerned, we have just started removing illegally parked cars and charging a hefty fine for their recovery. The German rule of law enforcement through punishment is an important one. We shall charge people for picking up their cars where they obstruct the traffic.
As far as help for the needy is concerned, I have instituted a feeding plan for the homeless and destitute in co-operation with the Aristotle University and the Church. This is a first but essential step while so many people are losing their jobs and literally going hungry. We are also planning a Centre for the Homeless where they can eat, stay, have a bath and do their washing.
These are lofty ideals. How do you intend to implement your plans?
I made it clear that no-one should expect any spending on public works at this time. We should concentrate on changing the way things get done.
As far as the financial management of the city is concerned, a new approach is required. When I took office, the city budget was a wish list. The projected income was 170 million euros but they budgeted expenditure for twice the income. Of last year’s budget of 350 million euros, only 200 million euros was used. We shall start implementing realistic budgeting now – this year’s budget is around 160 million euros.’
To implement these plans, you say you need the support of all your employees. Isn’t changing of mind sets very difficult?
A private consulting company will reorganise the whole municipal organisation. Without firing people, we will find new and productive things for them to do. We will institute job descriptions and a clear description of how things should be organised. These are obvious things for a businessman to do when stepping into a post like this. In order to implement these changes, the co-operation of all political parties represented in the workforce will be essential.
You can’t just push a button for magical change, but you can make efforts to change the mentality of people, e.g.municipal officers must be made aware again that they are there to serve the public. As an example, I don’t sign anything myself. In the past, all decisions were referred to the top. I have delegated the power to approve expenditure to my seven deputy mayors. In turn, they have to delegate downwards. Five of the seven have never participated in politics before and are in the age group 40 to 45. Two are women.
My own income has decreased from 10,000 to 3,500 euros per month since working for the City of Thessaloniki. I have also reduced my travel allowance by 50 per cent when travelling on official business. So I don’t do this for the money, I enjoy my job and I wish to serve.
Have you considered new ways, such as promoting tourism, to improve the financial position of the city?
Tourism is an extremely important potential source of income for the city. This city is also the cultural homeland of the Jews, the Ottomans, the Slavs and the Armenians, and for this reason they may also want to visit it. For example, 700,000 Greeks visit Istanbul every year, but only 100,000 Turks come here annually. Why is that? My ideal is that all the schools in Turkey will come and visit Thessaloniki. Turkish Airlines have started flying four times per week to Thessaloniki from 27 May.
What is your view of the economic crisis facing Greece?
A crisis is often also a good opportunity. The European Union has lost its identity and has lost control. Solidarity was one of its pillars. The EU banks made money lending to the Greeks, knowing full well what was going on here. This is unfair and criminal. They humiliate Greece now in the worst possible way, but it will hit back at them. What is required is that the Greek debt immediately be restructured and reduced by 50 per cent and that the remaining debt be repaid over a period of 50 years, at 0 per cent interest. This is realistic and the EU banks who kept providing credit to an already over-borrowed Greece in order to make huge profits and pay their executives bloated bonuses, should also feel the pain that the Greek people is feeling.
What can Cyprus learn from this extraordinary man?
The election slogan of the ruling AKEL party for the recent parliamentary elections was: ‘For the future of Cyprus – for the Cyprus of the future’. Let us see the president taking decisive action on the economy – for the future of Cyprus, and for the Cyprus of the future.
Or will this only happen when the politicians are side-lined and true entrepreneurs take the lead?
