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EU is financing Greece – as the Greek government persecutes ex-head of ELSTAT

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The horrifying political prosecutions by the Greek government against the former head of ELSTAT, ongoing for seven years, is no longer just a Greek affair. The European Union is undermining Greek and European statistics by not taking a stronger stance. 

Even the Greek newspaper Kathimerini has called the relentless prosecutions of Andreas Georgiou former head of ELSTAT “witch hunt.” Last year, the paper published a cartoon showing Kostas Karamanlis playing a videogame of chasing Georgiou. Karamanlis, prime minister from 2004 to 2009, is widely seen as the driving force behind the political persecutions against Georgiou and other ELSTAT staff. Karamanlis’ party, New Democracy, is in opposition and Karamanlis long out of office. The cases against Georgiou, now running for seven years, indicate that Karamanlis is still a political force to be reckoned with, a sign of ill omen for Greece.

Andreas Georgiou had been working at the IMF in Washington when he applied for the position of head of ELSTAT. When he took over in August 2010, the systematic falsification of Greek statistics, ongoing since before 2000, had already been exposed. During his five year in office, Georgiou and his staff made the last correction, rebuilt ELSTAT, helped introduce the necessary legal framework and fully implemented the statistical principles in the European Statistics Code of Practice: professional independence, impartiality and objectivity, commitment to quality and other principles. All of this was vital in order to put Greece on a more virtuous economic path, fulfilling its duties as a member of the European Union.

But this was more than the dark forces around Karamanlis and those who had been in power during the years of falsified statistics could endure. Although Georgiou and his staff had only been doing their duty as public servants and statisticians, the first prosecution started already a year after Georgiou took over at ELSTAT.

In 2015, when his five year term ended, Georgiou left ELSTAT and has now moved back to Washington DC. However, the preposterous abuse of power continues, giving good reasons to worry about the state of justice in Greece. There are several court cases ongoing – Georgiou has been charged with damages to Greece of €171bn, violation of duty, felony and slander. Acquittals have systematically been annulled, cases re-opened and new charges brought – an utter travesty of justice.

Economists, statisticians and others in the international community have time and again expressed support for Georgiou’s case, condemning the Greek government’s behaviour and the abuse of the justice system. There is now an international fundraising to meet Georgiou’s legal costs (see here, please consider supporting it).

As Georgiou said on May 29 when addressing the Financial Assistance Working Group of the Economic and Monetary Affairs Committee at the European Parliament the fact that these prosecutions have continued for seven years in Greece seriously undermines Greek and ultimately European statistics. This has long ceased to be only a Greek affair – it is a serious threat to European institutions.

As Georgiou pointed out incentives created in Greece “are poisonous. Would the responsibility for allowing such incentives to arise burden only the Greek State or also EU institutions and other EU stakeholders that are willing to live for years with this situation, which gives rise to these incentives?”

Further, Georgiou stated he was “not happy to report all this. But Greece—which I love dearly—will leave its troubles behind and prosper only if there is a firm commitment to credible official statistics. And this commitment will not be there—irrespective of anything that may be declared or signed—as long as the relentless prosecution of statisticians who followed European statistical law and statistical principles continues.”

Allowing these prosecutions to continue within the borders of the European Union surely undermines not only European statistics everywhere and the governance of the Union, but also the fundamental principles of human rights and the rule of law that the European Union is supposed to uphold and champion in the world.

Icelog has covered the ELSTAT case extensively since I visited Greece in 2015. In “Greek statistics and poisonous politics, July 2015, I explained in some detail the whole saga of the falsified statistics, the corrections and then the processes Georgiou put in place. Here is an overview of later blogs on the ELSTAT case. – Here is the link to the crowdfunding page with a short overview of Georgiou’s case and links to international media coverage of his case. Again, please consider donating.

UPDATE: the case of Andreas Georgiou has now taken a turn for the worse. The Greek Supreme Court has rendered “final and irreversible his conviction for not submitting the 2009 deficit and debt statistics to approval by a vote (this was judged to be a violation of duty, despite the fact that the European Statistics Code of Practice is very clear that statistics are not voted upon). This conviction makes final Andreas’ conviction to 2 years in prison, which is suspended for two years unless he gets another conviction in the meantime. Moreover, there is no further recourse in the Greek justice system for this case. The next step would be to take the case to the European Court of Human Rights.” See here, please consider supporting the crowd-funding for Georgiou’s legal defence. – Following the news, around 80 chief statisticians and heads of statistical associations from all over the world have published a statement, declaring their support for the cause of Georgiou, see their statement and names here.

 

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Written by Sigrún Davídsdóttir

June 7th, 2018 at 9:02 am

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No end to the Greek government’s relentless persecution of ELSTAT staff

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In spite of earlier promises to the Eurogroup the Greek government continues to persecute former head of ELSTAT Andreas Georgiou and two of his former senior staff. As long as the never-ending prosecutions continue the Greek government cannot claim it is seriously committed to turn the country around. By continuing these persecutions the Greek government is clinging to the story that the fraudulent statistics from around 2000 to 2009 are the correct ones, thereby in effect presenting the 2010 revisions as criminal misreporting. Thus, the Eurogroup and other international partners should refuse to cooperate with the Greek government as long as these trials continue.

In spite of earlier acquittals time and again, Greek authorities keep finding new ways to prosecute the former head of ELSTAT. The latest development happened last week, July 18 and 19. As at the trial in May, there was a shouting and insulting mob of around thirty people present in court at the trial on July 18 when Georgiou was being tried for alleged violation of duty. The mob was clearly cheering on the accusation witnesses in a disturbing way; again, something that would be unthinkable in any civilised country.

On July 19, the Chief Prosecutor of the Greek Supreme Court proposed yet again to annul the acquittal of Georgiou and two senior ELSTAT staff for allegedly intentionally inflating the 2009 government deficit and causing Greece a damage of €171bn.

Mob trial

After being unanimously found innocent of charges of violation of duty in December last year by a panel of three judges, as the trial prosecutor had recommended, this acquittal was annulled by another prosecutor. This is how this farce and mockery of justice has been kept going: acquittals are annulled and on goes the persecution.

This trial will now continue on 31 July when judgement is also expected – and it can be fully expected that Georgiou will be found guilty.

This report from Pastras Times gives an idea of the atmosphere at the trial: The professor [Z. Georganda] argued that from the data she has at her disposal, she considers that the 2009 government deficit was around 4 to 5% [of GDP] – a statement, which ignited the reaction of the audience that began applauding and shouting: “Traitors” “Hang them on Syntagma square”… The witness continued her point arguing that Greece had one of the lowest deficits “but we could and we were paying our debts because there was economic activity. Georgiou led the country to prolonged recession.” Ms. Georganda said characteristically, causing the audience to explode anew.

A pattern over six years: acquittals followed by repeated prosecution

As everyone who knows the story of the discoveries made in 2009 and 2010 of the Greek state statistics Georganda’s arguments are a total travesty of the facts, a story earlier recounted on Icelog (here the long story of the fraudulent stats and the revisions in 2010; here some blogs on the course of this horrendous saga).

July 19 was the deadline for the Chief Prosecutor of the Supreme Court, Xeni Demetriou to make a proposal for annulment of the decision of the Appeals Court Council to acquit Georgiou and two former senior ELSTAT staff of the charge of making false statements about the 2009 government deficit and causing Greece a damage of €171bn. Demitrou opted to propose to annul the acquittal decision.

The Criminal Section of the Supreme Court will now consider her proposal for the annulment of the acquittal. If the latter agrees with the proposal of the Chief Prosecutor of Greece, the case will be re-examined by the Appeals Court Council. If the Appeals Court Council, under a new composition, then decides to not acquit Georgiou and his colleagues, the three will be subjected to full a trial by the Appeals Court. If convicted they face a sentence of up to life in prison.

This would then be yet another round of the same case: in September 2015, the same Prosecutor of the Supreme Court, then a Deputy Prosecutor, proposed the annulment of the then existing acquittal decision of the Appeals Court Council. In August 2016, the Criminal Section of the Supreme Court agreed to this proposal, which is why the Appeals Court Council re-considered the case.

And so it goes in circles, seemingly until the legal process gets to the “right result” – trial and conviction.

Can the three ELSTAT staff get a fair trial?

Given the fact that the same case goes in circles – with one part of the system agreeing to acquittals, which then are thrown out, in the same case – it can only be concluded that Andreas Georgiou and his two ELSTAT colleagues are indeed being persecuted for fulfilling the standard of EU law, as of course required by Eurostat and other international organisations.

As this saga has been on-going for six years it seems that the three simply cannot get a fair hearing in Greece. This raises serious questions about the rule of law in Greece and the state of human rights there.

At the same time the last chapter in this six-year saga took place now in July, €7.7bn of EU taxpayer funds, a tranche of EU and IMF funds for Greece, was paid out. This, inter alia on the basis of the statistics revised in 2010, for which the Greek state keeps prosecuting the ELSTAT statisticians thereby de facto claiming these statistics were the product of criminal misreporting.

Tsakalotos breaks his promise

As reported earlier on Icelog the Eurogroup has clearly noticed the ELSTAT case: at the Eurogroup meeting of 22 May ECB governor Mario Draghi raised the matter, saying 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 announced that “On ELSTAT, we are happy for this to become a key deliverable before July.”

In an apparent attempt to appease the Eurogroup, it was announced this week that ELSTAT will pay legal costs for the former ELSTAT employees facing trial. However, the legal provision proposed by the government is wholly inadequate and may actually do more harm than good to Georgiou and his colleagues.

For example, it says that these official statisticians will have to return any funds they get if they are convicted. This is legislating perverse incentives. It is like saying: Convict them otherwise we will have to pay them.

The proposed legislation also puts a very low limit on the amounts that would be covered. In addition, it would not cover costs of legal counsel, costs of interpretation of foreign witnesses, nor would it cover the cost of travel and accommodation of these witnesses when they come to Greece abroad to be defence witnesses for Georgiou. There also seems to be a labyrinthine process for accessing the funds making it unlikely the accused will ever see any reimbursement of cost.

It is thus quite clear from events this week that not only has Tsakalotos broken the promise he gave to Draghi and the Eurogroup in May – he clearly has no intention of keeping it. The question is how long the Eurogroup will tolerate broken promises and the fact that by prosecuting the ELSTAT staff the Greek government does indeed keep portraying the revised statistics as criminal misreporting.

 
Screenshot 2017-07-24 21.15.44According the Kathimerini‘s cartoonist, the ELSTAT saga is a simple one: New Democracy PM 2004 to 2009 Kostas Karamanlis is unwilling to let go of the persecution – “You thought you would get away? Where do you think you are going, eh Georgiou?”

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Written by Sigrún Davídsdóttir

July 24th, 2017 at 9:32 pm

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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

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The ELSTAT saga: the latest

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Former head of ELSTAT, the Greek statistical authority, Andreas Georgiou has been acquitted in the case where he was charged with misdemeanour. Three foreign statisticians came to Athens to bear witness in the case, testifying to Georgiou’s positive work on rectifying the problems of earlier false statistics.

The irony is that the Greek government is silently accepting that civil servants who fixed the problem of a decade or fraudulent statistics are being prosecuted, not those who committed the fraud for years.

But as lister earlier on Icelog this is only one of four cases Georgiou is fighting in Greece. The other cases against Georgiou are still lingering in Greek courts. In the largest case against himm where he is charged with treason for in fact correctly reporting correct statistics, the examining judge has now proposed that the case be dismissed. Stunningly, this is the fourth time a judge proposes to have the case dropped but so far it’s always risen again in a new guise.

Here is Kathimerini report on the latest trial and its outcome.

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Written by Sigrún Davídsdóttir

December 7th, 2016 at 1:03 pm

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The ELSTAT saga: ongoing vendetta against civil servants who saved Greek statistics

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There is no end in sight of the ELSTAT saga of political vendetta against the ex ELSTAT director Andreas Georgiou who oversaw the correction of Greek statistics  2010 to 2015. Yes, the Prosecutor of the Appeals Court has recommended to throw the case of Georgiou and his colleagues out, not once but three times, only to resurface again. In addition, the case has transformed into several case all migrating through the Greek judicial system. I’ve earlier claimed that the ELSTAT case is a test of Greek political willingness to own up to the past and move on. The steadfast will to prosecute civil servants for doing their job exposes the damaging corrupt political forces still at large in Greece, a very worrying signal for the European Union and the International Monetary Fund – but most of all worrying for Greece.

If anyone thought that the long-running saga of prosecutions against ex head of ELSTAT Andreas Georgiou was over, just because so little is now heard of it, then pay attention: the case is still ongoing, there is an upcoming decision in the Appeals Court that could potentially send Georgiou to trial with the possibility of a life sentence for him. In addition, there are side stories here, other ongoing investigations and prosecutions.

The ELSTAT saga started after Georgiou had only been in office for just over year. It really is a saga (here my earlier reports and detailed account of it) of upside down criminal justice but it’s so much taken for granted in Greece that little or no attention is paid to the fundamental issue:

How is it possible that the man who as Head of ELSTAT from August 2010 until August 2015, putting in place procedures for correct reporting of statistics following the exposure of fraudulent statistics for around a decade, is being prosecuted and not the people who for years provided false and fraudulent statistics to Greece, European authorities and the world?

This case of a Hydra with many heads is rearing one of these heads next on 6 December when Georgiou is to face charges of violation of duty in producing the correct 2009 government deficit statistics. On important aspect is this: the charges imply that the Greek government isn’t accepting the correct figures on which the current bailout program and debt relief is based on.

European and international organisations have supported Georgiou’s point of view, the last being a letter from the International Association for Research in Income and Wealth (IARIW), to prime minister Alexis Tsipras now in November. However, the support from abroad does not seem to have had any effect on the prosecutions against Georgiou in Greece. As can be seen from the overview below of how the cases have sprawled in various directions there really is no end in sight. A worrying trend in a European democracy, the country that calls itself the cradle of Western democracy.

To Icelog, Georgiou says: “The numerous prosecutions and investigations against me and others that have been going on for years – as well as the persistence of political attacks and the absence of support by consecutive governments – have created disincentives for official statisticians in Greece to produce credible statistics. As a result, we cannot rule out the prospect that the problem with Greece’s European statistics will re-emerge. The damage already caused concerns not only official statistics in Greece, but more widely in the EU and around the world, and will take time and effort to reverse.

Charges three times thrown out resurface in wider charges

The original criminal case concerned criminally inflating the 2009 deficit causing damages to Greece in the order of €171bn or €210bn (depending on how it was calculated on different occasions by his detractors). For three consecutive years – in 2013, 2014 and 2015 – investigating judges and prosecutors proposed to drop the case only to see the charges resurfacing again each and every time. In 2016, the Prosecutor of the Appeals Court assigned to the case yet again proposed that the case be dropped. A decision is pending at the Council of the Appeals Court.

The same issue of the 2009 deficit did indeed resurface in the form a separate, brand new case on 1 September this year, now not only alleging criminal actions by Georgiou and ELSTAT staff but by the EU Commission and the IMF. A separate criminal investigation has begun and is running parallel to the over five year old case above. On the losing end here are not only the individuals hit by these charges but also public statistics, Greece, EU and international partners.

A worrying disincentive to service truthful information

Now, on 6 December, Georgiou is facing a trial for violation of duty, exactly the violations that various prosecutors and investigating judges had, in 2013, 2014 and 2015, proposed to drop. However, the Appeals Court decided in 2015 to refer the case to an open trial. In Greece, this trial is being presented as doing justice for Greece, implying that earlier cases may have been dropped due to European pressure.

Again, this clearly shows that there are political forces in Greece refusing to shoulder any responsibility for fraudulent statistics and a huge cover up of the dismal governance in Greece up to the surfacing crisis in 2009.

If convicted for violation of duty, Georgiou faces a possible conviction of two years in prison. Greek statistics face an uncertain future: a trial against the people who fixed the problem of Greek statistics is hardly a great incentive to Greek civil servants to service truthful information instead of untruthful politicians.

Twelve months for “criminal slander”: told the truth but should have kept quiet

In June, Georgiou was tried for criminal slander for defending the 2009 deficit statistics, the very numbers ELSTAT produced as required by the European Statistics Code of Practice. The Court Prosecutor recommended to the Court that the case be dropped and that Georgiou be acquitted. But the Court ruled in the end that although it believed Georgiou to have told the truth he should still not have said the things he said and sentenced him to twelve months in prison.

The appeal of this conviction was due to be heard in October in the Appeals Court. However, the plaintiff – actually the former director of national accounts at the National Statistics Office (later ELSTAT) in 2006 to 2010, i.e. during the fraudulent reporting – succeeded in having the appeal trial postponed. It’s now due in 16 January 2017, possibly a tactical move to influence two other ongoing cases involving Georgiou, the above-mentioned criminal case and a civil case.

The civil case is related to the criminal slander case. Decision is due in the coming weeks and could land Georgiou with a crippling fine of tens of thousands of euro.

Protecting the perpetrator of a crime, not the victim

As reported last summer in my detailed article of the ELSTAT saga, ELSTAT’s former vice president Nikos Logothetis was found by the police to have repeatedly hacked into Georgiou’s ELSTAT email account. This started already on Georgiou’s first day as president of ELSTAT, in August 2010, before he had even started to look at the thorny issue of the 2009 deficit, and continued until the hacking was exposed late October 2010.

Police investigations showed who was responsible for the criminal action of hacking Georgiou’s account – Logothetis was actually logged into the account as the police came unannounced to his home.

Georgiou was informed that Logothetis would be prosecuted for this and that following the criminal case he could then bring a civil case against Logothetis. However, in early July this year Logothetis was acquitted of violating Georgiou’s email account in a felony case. The Court also decided Logothetis could not be retried for the felony charge due to the time passed since the hacking.

According to the ruling it was not disputed that Logothetis had indeed accessed Georgiou’s account. However, the action was deemed not to have been carried out because of monetary gains or to hurt Georgiou but only because Logothetis “wanted to understand Georgiou’s illegal actions and to legally defend the legitimate interests of ELSTAT and consequently of the Greek state.”

Quite remarkably, the felony case was allowed to wait for five years before it was considered by the Appeals Court, thus triggering the statute of limitations. In addition, somehow Georgiou received no notice of the decision of the Appeals Court on the Logothetis felony case acquittal and thus had no chance to take legal action to potentially reverse the ruling within the allowed one month period.

Furthermore, the Court hadn’t taken any note of the fact that Logothetis actually hacked the account before Georgiou even looked at the 2009 deficit numbers nor did it figure in the case that Logothetis had continuously slandered and attacked Georgiou during his five years in office, even calling for the hanging of Georgiou in a published interview.

Another case against Logothetis, also for the hacking but as a misdemeanor and not a felony, was due to go to trial now in November but has been postponed in accordance with Logothetis’ wishes. It’s now been set for February 2017.

The ELSTAT case in the European Parliament:

On 22 November the ongoing political pressure on Greek statistics and Georgiou and his colleagues was taken up in a hearing at the Committee on Economic and Financial Affairs of the European Parliament. Both Georgiou and Walter Rademacher president of Eurostat participated, presented their views and were questioned by MEPs.

Rademacher gave an overview of the problems with Greek statistics and emphasised the need to close with the past, stop going after ELSTAT staff and to recognise what had been wrong (see video; Rademacher at 2:20-12:15). Rademacher paid tribute to Georgiou and the ELSTAT staff in modernising the organisations, bringing the governance to the proper standard and thus re-establishing trust in Greek statistics, a much needed contribution.

Rademacher pointed out that the serious misreporting didn’t cause the crisis in 2009 but was a “blatant symptom of very serious flaws” within the Greek statistics administration “at that time.” He also underlined the immense effort taken by various organisations to aid and support ELSTAT in improving its work, inter alia hundred Eurostat missions since 2010 to the present day, around one a month, to ELSTAT as well as to Eurostat in-house assistance, to the cost of around €1m in addition to technical assistance from the IMF and other EU National Statistical Institutes – no other country has needed anything like this.

In his presentation, Georgiou (12:26-20:12) emphasised the enormous disincentive for official statistics in Greece his case has been.

These and other cases and investigations send a strong signal to today’s guardians of honest, transparent statistics in Greece: you do so at your own risk. The point cannot be lost on them that compiling reliable statistics according to EU law and statistical principles can endanger their personal well-being.

The ELSTAT case: a scary disincentive for Greek civil servants

Georgiou had only been in office for around thirteen months when political forces in Greece openly started questioning in parliament his professional integrity. That was also the time when allegation emerged of him committing treason in reporting the correct figures.

Now, more than five years later, the case is still going on in various ways. Quite remarkably, Georgiou has not had any support from the Tsipras government. Given how the ELSTAT case has progressed, there are clearly forces both in the government and in the main opposition party who have a personal and political interest in hiding the truth on how the fraudulent reporting was kept going for around a decade, until 2009 and who find a convenient scapegoat in Georgiou and his staff.

Given the strong Greek political forces at large here the only way to stop the scapegoating seems to be that the donor countries and institutions show Greece that it can’t be helped until it helps itself. Until it helps itself by putting an end to prosecuting civil servants who fixed a serious problem that severely undermined the trust in the Greek government. As it stands, there is no incentive for Greek civil servants to withstand political pressure for corrupt action.

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Written by Sigrún Davídsdóttir

December 2nd, 2016 at 2:51 pm

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The ELSTAT case takes a new turn – IMF and Eurostat staff implicated

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Anyone who has followed the Greek crisis will be familiar with stories of insane corruption and absurd clientilismo. As the criminal prosecution of the former head of ELSTAT, Andreas Georgiou, shows the Tsipras government prefers scapegoats rather than facing painful truths about the past. Now, also foreigners working for the IMF and Eurostat are being implicated in a new criminal case against Georgiou and his colleagues.

Before the January 2015 elections, which brought Alex Tsipras and his Syriza party to power, Tsipras had been adamant on the need to tackle corruption. Once in power this discourse ebbed out. Now Tsipras and his government is watching a so-called independent judiciary persecuting the former head of ELSTAT, the Greek statistical bureau, Andreas Georgiou, who demonstrably turned ELSTAT and statistics around after a decade of falsified statistics.

The latest and most remarkable turn in the ELSTAT saga is a new criminal investigation, not only focusing on Georgiou and two of his colleagues, whose cases have all been dismissed more than once (see my detailed ELSTAT saga, written after I visited Athens in June 2015) but also on the IMF and Eurostat staff.

As I have earlier pointed out the ELSTAT prosecutions are a test of the new Greece trying to be born after the crisis: as long as ELSTAT staff and now foreigners striving to bring clarity to statistics, one of the absolute pillars of any modern country, are being prosecuted Greece is failing to free itself of political corruption. The fact that the Greek state is yet again trying to prosecute civil servants who did their jobs admirably is a sign of something seriously wrong in this country.

To Icelog Georgiou says: “The prosecutions within the borders of the European Union of official statisticians, whose work has been thoroughly checked and fully validated by the competent European Union institutions for six years in a row, should be a cause of great concern given their important precedential significance at a European Union level and an international level as well.”

A new criminal investigation of ELSTAT directors – as well as IMF and Eurostat staff

The latest move was brought on by the chief prosecutor of the Greek Supreme Court, Xeni Demetriou. As a deputy prosecutor of the Supreme Court until June 2016, Demetriou had been responsible for proposing in September 2015 to annul the last acquittal decision regarding Andreas Georgiou and his two colleagues. In the event, the Supreme Court published a decision in August 2016 accepting that annulment proposal and referring the case back to the lower court so that the latter reconsider its decision.

Amazingly, in this latest move, Demetriou as chief prosecutor, initiates an additional, brand new criminal investigation. The case was brought following a publication of two articles in the Greek newspaper Dimokratia at the end of August; the articles were introduced with photos of Andreas Georgiou, as well as of Eurostat and IMF officials.

Apparently based on emails and other sources, Dimokratia focuses on the 2009 deficit calculation. The newspaper’s coverage doesn’t seem to add anything but clamours statements such as “The Mafia of the Deficit,” to what was earlier investigated and then dismissed in previous attempts to bring Georgiou and his colleagues to court. The magazine reported inter alia of burglaries to allegedly make the case against the ELSTAT directors go away, postulating that they incriminate Georgiou and his colleagues.

This new prosecution does not only involve ELSTAT directors but goes further, involving IMF and Eurostat staff. Dimokratia claims that Eurostat’s Director General Walter Radermacher forced Greece to use statistical methods not used in any other country, directly causing the high deficit. The grand scheme was to force Greece to pay foreign banks, or as stated by the magazine: “the dirty plan of the destruction of Greece was planned and executed with distorted data so that the foreign banks can be repaid completely.”

One of the Dimokratia sources is Nikos Stroblos, a former director of the national accounts division of Greece’s statistics office during the years of fraudulent reporting. As so often pointed out on Icelog: quite extraordinarily, Georgiou and ELSTAT directors who brought the reporting of statistics to international standards, are being hounded in Greece but nothing has been done to investigate what went on during the years of false reporting.

International support for Georgiou and his ELSTAT colleagues

Eurostat and the European commission have earlier voiced concern over the turn of events in Greece. On August 24 Commissioner for Employment, Social Affairs, Skills and Labour Mobility, as well as European statistics, Marianne Thyssen was adamant that the independence of ELSTAT and the quality of its statistics were essential, adding that from the point of view of the Commission and Eurostat “it is absolutely clear that data on Greek Government debt during 2010-2015 have been fully reliable and accurately reported to Eurostat.” The Commission called “upon the Greek authorities to actively and publicly challenge the false impression that data were manipulated during 2010-2015 and to protect ELSTAT and its staff from such unfounded claims.”

The International Statistical Institute, ISI, has earlier voiced great concern for the course of events in Greece and has recently, yet again, called upon “the Greek authorities to actively and publicly challenge the false impression that data were manipulated during 2010-2015 and to protect ELSTAT and its staff from such unfounded claims.”

Further, ISI, “is extremely concerned about the persecution/prosecutions of Mr. Andreas Georgiou, Ms. Athanasia Xenaki and Mr. Kostas Melfetas for doing their work with the highest professionalism, integrity and adherence to international standards and the UN Principles, regardless of political pressure. It is inconceivable that such work, independently verified and approved in line with international standards, could lead to prosecution, and even successful prosecution of those responsible. Instead, such work should be praised!”

Persecution due to correct statistics shows the Tsipras government’s ties to the past

So far, none of this has had the slightest effect on the Tsipras government.

As pointed out recently on Icelog, the case against Georgiou and his colleagues, and now also involving IMF and Eurostat staff, is a test of the Greek government’s commitment to change and to acknowledge fraudulent behaviour in the past.

As pointed out by Tony Barber in the Financial Times on September 12, Tsipras is “yet again testing his EU partners’ patience. He is not only dragging his heels on economic reform, but is letting a criminal prosecution go ahead in a blatantly politicised case against Andreas Georgiou, a former head of the national statistics agency.”

In his review of “Game Over,” ex minister of finance George Papaconstantinou’s book on his six years in politics, Peter Spiegel notes the significance of the ELSTAT case and the Greek tendency to find scapegoats: “… it is Greece’s abiding myth that somehow the day of reckoning was avoidable. Papaconstantinou’s highly readable book makes that falsehood clear. No doubt Mr Georgiou’s trial will do the same.”

As long as Alexis Tsipras and his government continue to persecute the ELSTAT directors it is clear that the old bad ways and corrupt powers are untouched and still ruling.

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Written by Sigrún Davídsdóttir

September 16th, 2016 at 11:04 pm

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Old and new powers in Greece – and the ELSTAT case

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The re-awoken charges against ex-ELSTAT head Andreas Georgiou and two of his colleagues are attracting attention in the international media. Last, the Financial Times takes the case up on its front page today. According to recent report on EurActiv it also seems that powers in Brussel are rightly getting increasingly worried about the procedures in Greece against Georgiou.

After a trip to Athens last year I wrote about the case in detail on Icelog. When the case resurfaced now in summer I pointed out that Greek authorities were punishing the messenger instead of those who really falsified Greek statistics for roughly a decade.

The reason I find the ELSTAT case so interesting and important is that in my view it’s a test case for the willingness of the Greek political class to face the misdeeds of the past, the corruption and all the things that hinder prosperity in Greece. In addition, a country without reliable statistics can’t really claim to be a modern and accountable country.

As it is now, Greece is heading towards a political trial where those who fixed the fraud are being hounded and punished, not the perpetrators. As long as the charges against Georgiou and his colleagues are upheld it is clear that the forces who want to keep Greece as it was – weakened by corruption and unhealthy politics – are still ruling. That isn’t only worrying for Greece but for Europe as a whole.

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Written by Sigrún Davídsdóttir

August 15th, 2016 at 1:58 pm

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Media reactions to Georgiou’s conviction – Kathimerini: it’s a “witch hunt”

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There has been a general outcry in international media after the recent sentencing of former ELSTAT president Andreas Georgiou following six years of persecution by Greek authorities. With the exception of Kathimerini, the Greek press has however mostly been silent. As pointed out in the foreign media the “witch hunt” bodes ill for Greece and now, ELSTAT is indeed struggling with the national statistics… again.

The reporting on the recent conviction of former ELSTAT president Andreas Georgiou in Greece and abroad is decidedly different: abroad there is condemnation and genuine worry, in Greece there is little of that though with noticeable exception: Kathimerini did not hesitate to speak of “witch hunt.” The Financial Times’s headline was a “legal farce calls Greek reform into question.”

The Georgiou case exposes a rift in Greek society

In a short and concise comment by the newspaper’s editor, Nikos Konstandaras, sets out how “the very name Andreas Georgiou – has come to symbolize a rift in society.” On one side there are those who worry about the future of Greece, “knowing that only rational measures will help Greece get back on its feet; on the other, a heterogeneous crowd of indignant citizens and cynical politicians, united by their passionate desire to abdicate responsibility for the past and the present, demands that reality bend to their will.

I am afraid that the second group has more passion, a longer history and the momentum that the first one does not: It is, of course, much easier to rouse the crowd with promises to avoid pain than to embrace it. And loading all the responsibilities for the country’s problems on one man, the former head of Greece’s statistical service, is most seductive: Those who are truly to blame get to play judge, while others believe that because one person is guilty for the crisis and for austerity, the rest don’t have to pay anything… History, though, will record the role they played. In the end they will be loaded with more blame than that which they are trying to saddle onto others.”

The political figure behind the ELSTAT persecution: Karamanlis

Even before the verdict at the end of July, Kathimerini was clear about the direction of the ELSTAT trial – Kostas Karamanlis is the driving force as shown on a cartoon where Karamanlis, playing a video game, is hell-bent on not letting Andreas Georgiou get away. Same could be seen in a recent article in Parapolitika: Karamanlis is still furious with Georgiou and could not hide his satisfaction when Georgiou was sentenced.

As mentioned by Kathimerini when it brought the news of the conviction, this was “the second time that the country’s top prosecutor overturned an earlier ruling in favor of Georgiou, in a case that has become a touchstone for relations between Greece and its creditors.”

The worrying thing is that the Karamanlis faction is still fighting the battles of 2010, still pretending that the fraudulent statistics, indeed exposed before Georgiou took office, are somehow part of evil foreigners kicking Greece.

Worries among international partners and professionals

The various international media and organisations are rightly worried about the relentless persecution of Georgiou: it is a clear sign of political unwillingness to face the facts of political governance in Greece.

For good reasons, the European Commission has been following the case with trepidation but so far it has been utterly unsuccessful in preventing the ELSTAT staff persecutions. Spokeswoman for the Commission’s financial issues Annika Breidthardt said after the conviction that it was not in line with previous acquittal for the same charges:

The independence of statistical offices in our member states is a key pillar the proper functioning of the Economic and Monetary Union (EMU), this is why it is protected by EU law. We take note of the specific ruling which we note that is not in line with the previous ruling in the previous procedure. We understand that today’s ruling is open for appealing on legal grounds before the Greek Supreme Court. “We have full confidence in the reliability and accuracy of ELSTAT data during 2010-2015 and beyond” … We underlined the importance of the independence of ELSTAT as a key commitment under the terms of the Memorandum of Understanding of the Program,” said Breidthardt.

As the International Statistical Institute, ISI has pointed out, Georgiou acted in complete compliance with Eurostat practice, European Statistics Code of Practice: “Not only is the verdict unfair to Mr Georgiou, it also has negative implications for the integrity of Greek and European official statistics. Accordingly, the ISI calls on the Greek Government and the EU Commission, in consultation with their respective statistical authorities, to take all necessary measures to challenge this verdict and seek its reversal as a matter of the utmost priority.”

The absurdity of it all

As pointed out the The Greek Reporter there is the absurdity of the whole process: “Just to let the absurdity sink in: Greece falsified its official statistics for years & the only person prosecuted is the one who fixed them.”

Bloomberg commentator Leonid Bershidsky pointed out that the legal troubles of Georgiou “are about conflicting political visions of the country.”

In a personal and insightful article on Politico, the economist Megan Greene who has followed the Greek crisis from early on, raises the question of the integrity of Greece’s institutions.

New doubts regarding ELSTAT figures

There is now, again a looming suspicion hanging over ELSTAT. As FT reported recently, some discrepancy has surfaced regarding Greek national statistics, this time related to the country’s GDP figures leading the paper to connect this to the ELSTAT case: “The announcement came amid renewed scrutiny of Elstat following an outcry over the conviction by an Athens court last week of Andreas Georgiou, who headed the agency between 2010 and 2015 for “violating his duties.” Mr Georgiou faces a series of trials for allegedly inflating Greece’s budget deficit figure in 2009, the year the country plunged into financial crisis, even though all the statistics produced during his tenure were accepted without reservation by Eurostat, the EU’s statistical service.”

These are only few voices from a large choir of worrying voices. So far, Andreas Georgiou has been prosecuted for the last six years. As long as this is going on, the political forces around Kostas Karamalis clinging on to the past and obstructing a healthy revival of the Greek economy, have the upper hand. That is profoundly worrying for the Europen Union, the IMF and other international partners working with Greece for, hopefully, a better and more sound future for the country.

Greece needs an independent report on its crisis – as was done in Iceland

Incidentally, in Iceland after the October 2008 banking collapse there were also political voices claiming the collapse was all the work of foreigners somehow wanting to get control of Iceland, its natural resources etc. What finally and effectively silenced these voices was the very thorough report published in April 2010 by the Special Investigation Commission.

This independent commission did a brilliant work of clarifying all the relevant aspects of the collapse, from political apathy to the abusive control the largest shareholders had on the three largest banks. The report was an important step for Iceland in working itself out of the crisis but time has made it no less important: it is there as a reference in order to keep in mind what really happened so the time and selective memory cannot alter the facts. – Surely the kind of work sorely needed in Greece (and in all other crisis-hit countries).

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Written by Sigrún Davídsdóttir

August 18th, 2017 at 9:46 am

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How is this possible, Greece?

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The Greek ELSTAT saga has taken yet another turn, which should be a cause for grave concern in any European country: a unanimous acquittal by three judges of the Greek Appeals Court in the case of former head of ELSTAT Andreas Georgiou has been annulled. This was announced Sunday December 18 – the case  was up in court December 6 – but no documents have been published so far, another worrying aspect.

The acquittal was the fourth attempt to acquit Gergiou – and this is now the fourth attempt to  thwart the course of Greek justice and revive the unfounded charges against him. The intriguing thing to note here is that the acquittal was annulled by a prosecutor at the First Instance Court, who in September brought a whole new case regarding the debt and deficit statistics from 2010 and ELSTAT staff role here, this time not only accusing ELSTAT staff of wrongdoing but also staff from Eurostat and the IMF; a case still versing in the Greek justice system.

All of this rotates around the fact that ELSTAT, and now Eurostat and IMF staff, is being prosecuted for producing correct statistics after more than a decade of fraudulent  reporting by Greek authorities.

It beggars belief that the justice system in Greece seems to be wholly under the power of political forces who try as best they can to avoid owning up to earlier misdeeds. In spite of acquittals, those who corrected the fraudulent statistics are being prosecuted relentlessly while nothing is done to explain what  went on during the time of the fraudulent reporting. It should also be noted that in order to stop the ELSTAT prosecutions completely, four other cases related to this one, need to be stopped.

The ELSTAT staff is here reliving the horrors of the Lernaen Hydra in Greek mythology. Georgiou and his colleagues have had international support but that doesn’t deter Greek authorities from something that certainly looks like a total abuse of justice. How is it possible to time and again take up a case where those charged have already been acquitted?

Icelog has followed the ELSTAT saga, see here for earlier blogs, explaining the facts of this sad saga.

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Written by Sigrún Davídsdóttir

December 19th, 2016 at 5:20 pm

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Greek authorities punish the messenger, not the culprits of fraud

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In Greece, authorities go after those who tried to sort out the mess of the Greek economy, not those who created it. That’s one conclusion to be drawn for charges, yet again, brought against Andreas Georgiou former head of ELSTAT, the Greek statistics bureau. It should be scary for Greeks and European institutions to see the relentless persecutions of a civil servant who did his job.

Since he was appointed head of ELSTAT in summer of 2010, well after it was clear that the Greek statistics were unreliable, Andreas Georgiou has had to fight forces in Greece who simply refuse to let go of him and his colleagues, a story carefully recounted on Icelog a year ago, with the precise data of statistics and the development of the ELSTAT saga. Time and again, the case against Georgiou has been dropped but always brought up again.

New criminal charges now against Georgiou do not only threaten him with a prison sentence but also threaten to awaken earlier dropped charges against him and two of his colleagues.

And those who for years falsified statistics? No, not one hair on their head has been ruffled, no investigations set up as to how it was possible that wrong and falsified statistics were reported to Greeks themselves and to international bodies such as Eurostat, the European statistical bureau, more or less from 2000 until 2009.

In Game Over, the Inside Story of the Greek Crisis, George Papaconstantinou minister of finance during the fateful time from the October 2009 election until June 2011 recounts thoroughly how the falsified statistics came up as soon as the PASOK government came to power.

Already during his first days in Office, Papaconstantinou heard from various institutions that inter alia the much watched budget deficit was well beyond what the Greek authorities had reported to Eurostat two days before the October 2009 election. “In short, they had lied,” Papaconstantinou concludes in his book. What ensued was a discovery of fraudulent statistics going back years.

No one could precisely show Papaconstantinou how the reported figure was found. One of his first acts in office was to call the head of the national statistics, professor Emmanouil Kontopyrakis to his office. The professor had no idea how the deficit figure was computed but to him it did seem like a “reasonable projection” – the minister asked him to resign.

As Papaconstantinou carefully recounts much of the mistrust of his European colleagues directed at Greece was based on the fact that there wasn’t even precise statistics and figures to work with to begin with.

When Andreas Georgiou took over as head of ELSTAT in August the much-debated deficit figures, both forecasted and the real figures, had been corrected, of course greatly increasing the deficit, under the auspice of Eurostat.

As carefully detailed in my ELSTAT saga last year, the numbers kept going upwards. The 2009 deficit first forecasted 3.7% in early October was by April 2010 estimated by Eurostat to be an actual deficit of 13.6% but Eurostat was still not sure it couldn’t rise; by late 2010 Georgiou and his team found it to be 15.4%.

In his book, Papaconstantinou writes that Georgiou proved to be the right man for the job, “helping to make Greek statistics credible. I was less lucky with of the other people appointed to the ELSTAT board.” In a police investigation one board member was later discovered to have hacked Georgiou’s email account. Another member accused Georgiou of inflating the deficit figure, causing the bailout, a “totally absurd” accusation according to Papaconstantinou.

The memorandum on the Greek rescue packet was finalised May 2 2010. Yet, Georgiou, who only took over in August 2010, is continuously persecuted for having influenced the bailout.

Considering how poisonous the unreliable data proved to be in the discussions up to the May 2010 memorandum it would have been greater reason to thank Georgiou and his team for delivering sound statistical data.

But that is not what happened and things didn’t stop there. The opposition lapped up the accusations. “Soon the justice system was involved. Prosecutors brought criminal charges against Georgiou for actions having caused billions of damage to Greece. We were suddenly in a parallel universe; rather than bringing to task those who had lied about the true size of the deficit, we were accused for having told the truth!”

No matter though Georgiou’s case has been thrown out several times the dark forces in Greek politics always find a way of bringing it back. And that has now happened again, the case is being brought back in a new guise (see here and here). It seems that Europe risks having a political prisoner within its boundaries, imprisoned for doing his job.

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Written by Sigrún Davídsdóttir

August 3rd, 2016 at 4:47 pm

Posted in Uncategorised