Prime Minister George Papandreou and his visiting Turkish counterpart Recep Tayyip Erdogan on Friday signed 21 separate accords aimed at boosting bilateral cooperation across a range of sectors, including the economy, tourism and energy, and said they seek to make headway on resolving enduring tensions in the Aegean.

‘Our economies supplement each other… if our two countries cooperate, we can maximise the benefits for both countries.’ Turkish PM Erdogan

The meeting between the two Prime Ministers was said, by sources, to have taken place in ‘an exceptionally cordial atmosphere’ following Erdogan’s arrival in Athens under a massive security escort.

Apart from dozens of bodyguards, the Turkish leader was accompanied by 10 ministers and over 300 businessmen who met with Greek entrepreneurs at the Hilton later in the day to explore opportunities for cooperation.

The 21 agreements signed on Friday foresee the establishment of a joint council of ministers to convene at least once a year and discuss issues of bilateral concern, the encouragement of investment between the two countries, the acceleration of a project aimed at building a natural gas pipeline between Greece and Turkey, increased cooperation in the tourism sectors including the promotion of joint packages to the Chinese market and the return to Turkey of a minimum of 1,000 immigrants entering Greece illegally per year.

Erdogan described his visit to Greece as ‘historic’ and ‘exceptionally significant.’ In a clear reference to Greece’s economic problems, Erdogan said, ‘We intend to show solidarity with Greece.’

He added, ‘Our economies supplement each other… if our two countries cooperate, we can maximise the benefits for both countries.’ Papandreou, in his comments, also expressed optimism, but was rather more cautious.

“I hope [Erdogan’s] visit will be the cornerstone of a procedure that will lead us to a different relationship,” he said.

Papandreou added that he discerned in Erdogan “a sincere desire to move on and leave behind us the myths of the past in Greek-Turkish relations.”

In a landmark move, the two leaders presided over a joint council of Greek and Turkish ministers.

The issue of tensions in the Aegean was reportedly raised during the council session and expressions of good intent were made by both sides though no agreement was reached on this difficult topic.

Nevertheless, a joint statement issued by the two leaders later yesterday declared that “a big step forward has been made to promote relations and lead to the strengthening of peace and stability in the region.”

Papandreou said the two sides had agreed to establish additional trust-building measures and would ‘step up’ efforts to resolve a longstanding dispute regarding the delineation of the continental shelf.

“We will never be able to deal with major issues… if we do not build trust,” Papandreou said.

The issue of both Greece and Turkey scaling back their defence spending was discussed by the countries’ two leaders yesterday, although it appears that Athens, which is making drastic public expenditure cuts due to its debt problems, is unwilling to commit publicly to any deal at the moment.

Turkish Prime Minister Recep Tayyip Erdogan suggested that Athens and Ankara should consider such a compromise. “Both countries have large defence budgets,” he told state broadcaster NET ahead of the meeting.

“We must reduce these expenditures and use the money for other purposes. If we have the will, there will be results.”