Sigrún Davíðsdóttir's Icelog

Greece – still failing the ELSTAT test

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Greek authorities have not yet dropped the wholly unfounded criminal cases against former head of  ELSTAT Andreas Georgiou. As expressed earlier on Icelog, the ELSTAT saga is a test if Greece is beholden to a corrupt past or trying to amend its ways. So far, no amendment. And interestingly, Greece is again stalling in terms of improving the economy and disbursement of €7bn from the Eurozone are being withheld.

The case of Georgiou and two ELSTAT colleagues was again up in court in Athens on Friday, Again acquitted but in this saga, where everything  goes in circles and nothing is brought to an end, it is far from certain if this really is the end. There is, yet again the distinct possibility that the Chief Prosecutor of  the Supreme Court will again reverse the acquittal, as in September 2015.

Another part of this case – for some reason it has been split up and the two cases are tried separately – came up this Monday, 29 May.

Also a new criminal investigation about exactly the same issue, ordered last September by the same Chief Prosecutor, could theoretically continue and keep the case going for years to come.

Leaked minutes from the Eurogroup meeting 22 May shows that ECB governor Mario Draghi brought the ELSTAT case up right at the beginning of the meeting, asking that, as agreed earlier, priority should be given to implementing “actions on ELSTAT that have been agreed in the context of the programme. Current and former ELSTAT presidents should be indemnified against all costs arising from legal actions against them and their staff.”

Greek minister of finance Euclid Tsakalotos said that “On ELSTAT, we are happy for this to become a key deliverable before July.”

The Eurogroup has clearly noticed the ELSTAT case. It remains to be seen if Tsakalotos does indeed deliver before July. I’m told that there is a real opposition in some quarters to give earlier ELSTAT president indemnity against cost. Unless he and his staff is included this action does not have the intended effect. Hopefully, Draghi and others in the Eurogroup will not lose sight of this issue.

This week, the Georgiou case was brought up in a letter sent to the Financial Times, published in the print version 30 May, see below, signed by Michel Camdessus former Managing Director of  the IMF and others. The link the writers make, between the work in the Eurogroup and the importance of statistics is an appropriate one. Statistics are vital in any modern society, which makes it so grossly offensive to prosecute statisticians for doing their work. As pointed out earlier on Icelog, Georgiou and his staff enjoy a wide support among statisticians and others who care about good governance and justice.

Sir, As you reported on May 22 (FT.com), the eurogroup failed to complete the review of the economic programme with Greece and enable the disbursement of €7bn of Eurozone member taxpayer money to Greece. Negotiations are continuing. Meanwhile, on May 29, Andreas Georgiou again went on trial for violation of duty while he was president of the Hellenic Statistical Authority (Elstat) from August 2010 to August 2015 (The Big Read, December 30, 2016).

These two strands should be linked, but to date have not been. The eurogroup and associated European organizations (the European Stability Mechanism, the European Commission and the European Central Bank) have not established the appropriate linkage.

Mr Georgiou and senior colleagues of his at Elstat are being prosecuted for doing their job in producing honest statistics about Greece’s fiscal condition for 2009, before the start of the first Greek programme, and during the first five years of programmes. Their work is central to the Greek economic reform efforts. It was based on European standards for statistical data quality. Successive Greek governments have committed to comply with those standards and to defend the professional independence of Elstat. The current government and several previous governments have failed to live up to these commitments.

We the undersigned call on the European authorities not to complete the programme review with Greece until and unless the Greek government declares publicly in writing that the statistics compiled by Mr Georgiou and his colleagues at Elstat were accurate and that they were produced and disseminated using appropriate processes and procedures based on European standards.

Michel Camdessus Paris, France; José Manuel Campa Madrid, Spain; Edwin M. Truman Washington, DC, US; Gertrude Trumpel-Gugerell Vienna, Austria; Nicolas Véron Washington, DC, US and Paris, France; Geoffrey Woglom Amherst, MA, US; Edmond Alphandéry Paris, France; Paul Armington Washington, DC, US; Ruthanne Deutsch Washington, DC, US; Robert D Kyle Washington, DC, US; Barry D Nussbaum Annandale, VA, US; Christopher Smart Boston, MA, US; Peter H. Sturm Washington, DC, US; Stephanie Tsantes Lewes, DE, US; Ronald L. Wasserstein Springfield, VA, US; Charles Wyplosz Geneva, Switzerland; Jeromin Zettlemeyer Washington, DC, US

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Written by Sigrún Davídsdóttir

May 31st, 2017 at 6:23 pm

Posted in Uncategorised

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