JERUSALEM (EJP)---For the first time a Greek Prime Minister visits Israel since 1992, marking a warming of the relations between the two countries.

George Papandreou met with Israeli President Shimon Peres Wednesday. They discussed Greece's economic situation as the country faces harsh measures because of overwhelming debts.

Peres tapped into his experience as Israeli finance minister in the 1980s, when he helped bring triple-digit inflation under control.

He says Papandreou needs "to show inner calm. I believe you will emerge stronger from the crisis."

"I wish you the end of the crisis to be a new start, Greece and Israel are now more than ever close to each other, historically, politically and in many other sectors, while we are every day assessing the improvement and development of our relations," the Israeli president added.

Greece has traditionally fostered close ties with both Israel and Arab countries but many observers noted that Papandreou’s visit comes as Israel-Turkey ties continue to deteriorate. Turkey is Greece’s historical rival.

Papandreou responded: "I am happy to be here. I am here in my double capacity, as President of the Socialist International and as Prime Minister of Greece. But the main thing is that for the first time a Greek Prime Minister visits Israel, since its recognition. It is important that we develop the bilateral cooperation, the regional cooperation in the broader region of Eastern Mediterranean and the Middle East and there are many issues on which we can cooperate in order to promote peace.”

The Greek premier, whose father, Andreas, served as Prime Minister of Greece twice and was known for his pro-Palestinian stance, has chartered a more moderate policy toward Israel than his predecessors since taking office last October.

Once considered among the harshest critics of Israel within the European Union, along with countries such as Ireland, Sweden, Portugal and Belgium, Greece is no longer in that  “basket”, one Israeli official was quoted as saying by The Jerusalem Post.


During his visit, Papandreou is to visit the Greek Patriarch of Jerusalem Theophilos III in the Old City, followed by a meeting with Greek Holocaust survivors.

On Wednesday, he visited Yad Vashem, the Holocaust Memorial and Museum in Jerusalem.

On Thursday he had a working lunch with Israel’s Prime Minister Binyamin Netanyahu and later meetings with Foreign Minister Avigdor Lieberman and opposition head Tzipi Livni.

He will then travel to Ramallah for a meeting with Palestinian Authority President Mahmoud Abbas and Prime Minister Salam Fayyad.

Papandreou said he would give Abbas a message from Netanyahu calling for direct talks between Israel and the Palestinians.

"I am not skeptical, and neither are you, about peace with the Palestinians," Netanyahu said at the end of the meeting with the Greek Prime Minister. "I would be happy if you would give Abbas this message."