News Analysis: Greek new gov't declares war on corruption, skepticism remains

Greek new government has declared war on corruption that will cost the country 100 billion euros (about 108 billion U.S. dollars) every year. Skepticism remains, however, as the challenges ahead are enormous, Greek experts say.

Following the Jan. 25 national polls, Panayiotis Nikoloudis, a well respected former Supreme Court prosecutor with a long history in tackling financial crimes, was named Greece's first ever minister of state for combating corruption. Under this role, Nikoloudis has been charged with heading up the anti-graft crusade which was presented as a top priority of the Radical Left administration.

Greek Prime Minister Alexis Tsipras has said the campaign will start by combating tax evasion.

Addressing the parliament recently, Nikoloudis said the government expected to retrieve at least 2.5 billion euros within months.

It was still a drop in the ocean, local experts commented, if one considers that the shadow economy costs Greece 60 billion euros annually and tax dodging about 30 billion euros, according to official data from the Greek statistics agency and the global anti-corruption watchdog Transparency International.

In the second phase, according to Nikoloudis, the government will focus on the oil smuggling.

An elite group of wealthy Greek businessmen over the past three decades has made its mark in Greece's political and economic life by cultivating close ties with the political system.

Greece's oligarchs win lucrative state contracts, keep critical sectors of the economy closed and avoid taxation and prosecution for illegal behavior by abusing their power as media barons in several cases.

Nikoloudis has warned that he is not a magician who could pull out miracles overnight, but has promised to show determination and set a good example to inspire ordinary people to join the fresh efforts.

He acknowledged that bureaucracy would be a major obstacle in the battle. He said the government would put emphasis on restructuring mechanisms that have obstructed justice in the past.

The task will not be easy, Greek experts warned.

Yorgos Sourlas, former general secretary of transparency at the justice ministry, told Xinhua that corruption was "not solely an economic issue, but a problem in the function of the political system and democracy."

Greece has made some progress in recent years, but there is still a long way to go, he noted.

According to the Corruption Perception Index of Transparency International, Greece's ranking improved to 69th in 2014 from 94th in 2012 among about 180 countries or territories.

Seven out of 10 corruption cases in Greece were reported in public services, with state hospitals and tax authorities ranking highest on the list of corrupt institutions.

The main problem was a lack of political willingness to combat corruption - and subsequently of a comprehensive strategy to be implemented by effective mechanisms - and lack of an anti-corruption culture in Greek society, according to Sourlas.

The former official welcomed the establishment of the new ministry and the appointment of Nikoloudis at its helm, but expressed reservations over the outcome of the new campaign.

"The progress made in the fight against corruption in recent years has been patchy and definitely lacking in constancy," Elias Georgantas, an assistant political science professor at the University of Crete, told Xinhua.

On the one hand, there was the high-profile case of former Defense Minister Akis Tzohatzopoulos who was convicted of bribery in 2013 for bribes related to contracts for armament projects, he noted.

Former Finance Minister George Papaconstantinou was also sentenced to one year in prison with a three-year suspension on March 24 for tampering the infamous Lagarde list four years ago.

On the other hand, there were cases like the illicit payments made by German conglomerate Siemens in order to secure lucrative public procurement contracts.

In Georgantas' view, the new government has elevated the anti-graft campaign to a top political priority. He also welcomed the appointment of Nikoloudis as a very positive signal.

The Greek expert noted, however, that the vast array of pending issues facing the new government, especially those related to macroeconomic management and budgetary stability, could both divert attention and reduce the focus required to pursue a well-designed anti-graft campaign in a consistent and undistracted manner.

"The battle is very tough. We need to strengthen the legislative and administrative framework to prevent corruption. The medicine against corruption is transparency," the professor stressed. Endit