Cyprus News Agency: News in English (PM), 97-09-09

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From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] Cabinet approves 1998 budgets

[02] Peace-process in Cyprus to proceed, says Annan

[03] Foreign Minister meets EU Council President

1700 CYPPRESS:01

[01] Cabinet approves 1998 budgets

In a statement announcing the approval, the Ministry of Finance said the budgets "reflect the main aim of the government policy, which is economic stability, expansion of the economy's production capacity, and a fairer distribution of the national revenue."

Finance Minister Christodoulos Christodoulou said the rate of growth for 1997 would range around 2 per cent, which compares favourably with figures of European Union member-states.

"We have managed to contribute to the recovery of investment and economic activity through expenditure amounting to 15 million pounds," he said after the cabinet meeting.

The deficit of the three state budgets is expected to reach 550,3 million in 1998, compared with a deficit of 388,8 million, expected for the 1997 budgets.

The 1998 Ordinary Budget provides for 1.277,5 million pounds in expenditure, revenue of 1.072,9 million, and a deficit of 204,6 million pounds, while the respective figures for 1997 were 1.160,7 m., 1.066,2 m., and 94,5 m.

The Development Budget provides for expenditure of 260,6 million pounds, compared with 232,8 million the previous year.

As for the Budget of the Relief Fund for Displaced and Afflicted Persons, its expenditure is expected to reach 91,8 million, its revenue 6,7 million, and its deficit 85,1 million pounds, while the amounts in the 1997 budget were 82,8 million, 21,3 million and 61,5 million respectively.

Referring to the Development Budget, the Ministry of Finance says in its statement that the large infrastructure projects concerning water and road development, constitute the main priorities.

The fiscal deficit is expected to reach 244,9 million pounds, or 5,2 per cent of the Republic's Gross Domestic Product (GDP) compared with 4,1 per cent of GDP, which is expected for 1997.

The public debt, as defined in the Maastricht Treaty, is expected to reach 57,5 per cent of GDP, compared with 55,6 of GDP in 1997.

CNA GG/MM/1997

ENDS, CYPRUS NEWS AGENCY

1710:CYPPRESS:02

[02] Peace-process in Cyprus to proceed, says Annan

Describing the case of Cyprus, along with those of Western Sahara and East Timor as "long-standing disputes", Annan says, "in each case I appointed a high level emissary to try to move the process out of this rut".

The UN Chief makes special note to the two rounds of face to face negotiations between President Glafcos Clerides and Turkish Cypriot Rauf Denktash, pointing out that "although it has not yet been possible to reach agreement on substantive matters, the two leaders remain committed to achieving an overall settlement under my good offices".

He also stresses that "I intend to proceed with the mission".

CNA MCH/MM/1997

ENDS, CYPRUS NEWS AGENCY

1810:CYPPRESS:03

[03] Foreign Minister meets EU Council President

Poos, speaking immediately after a meeting today in Luxembourg with Cyprus Foreign Minister Ioannis Kasoulides, made clear the position of the EU's rotating presidency by underlining that the presidency sees no connection between Cyprus' accession course and Turkey's application for EU accession, adding that the two issues are completely different.

He also said that there is no direct connection between UN-led talks aimed at solving the protracted Cyprus problem with the island's EU accession course.

Poos' statements attain heightened importance for Cyprus, given that they are made at a time when Ankara is trying by every means to impede the start of EU - Cyprus accession talks.

The EU Council president warned Ankara in an indirect albeit clear manner that the EU will not accept third party interventions regarding Cyprus' accession process.

Regarding Ankara's position on the issue, Poos said that he does not comprehend it because, as he said, Turkey should have been one of the first countries to support Cyprus' EU accession, not only for economic reasons, but also for political ones given the fact that Cyprus' accession would help in the resolution of the Cyprus problem.

Poos, who was briefed by Kasoulides on last month's direct talks between President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash in Montreux, Switzerland, expressed his disappointment for the failure of the talks, while assuring that the EU will do everything to re-start them with the aim of resolving the Cyprus problem.

The Montreux talks, preceded by a July round in Troutbeck New York, ended in failure after Denktash refused to discuss substantial issues regarding the Cyprus problem and threatening to walk out of the peace process altogether if EU - Cyprus accession negotiations begin early next year.

Poos was not remiss in praising Cyprus' economy whose performance, he said, places Cyprus a step ahead of other Eastern and Central European candidate countries for EU accession.

On his part, Kasoulides expressed full satisfaction with the outcome of his 40-minute discussion with Poos, which was dominated by the Cyprus problem and Cyprus' accession course.

The Foreign Minister also expressed his particular satisfaction with Poos' clear positions at a time when Turkey is on a campaign against the start of accession negotiations.

According to Kasoulides, it is obvious that the EU will proceed with the implementation of its decisions and fulfillment of its assumed obligations.

Referring to the EU's wish that Turkish Cypriots take part in accession negotiations, Kasoulides said it is desirable as long as negotiations are conducted with the internationally recognised government of the Republic of Cyprus and that no other parallel negotiations are held.

CNA NB/MH/MM/1997

ENDS, CYPRUS NEWS AGENCY

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