From: zarros@turing.scs.carleton.ca (Theodoros Sp. Zarros) Subject: News (in ENGLISH)- Sat, 4 Dec 1993 (Greek Press Office BBS, Ottawa). Athens News Agency Bulletin, Dec. 4, 1993 Athens, 4/12/1993 (ANA): National Economy Minister George Yennimatas yesterday announced the government's proposed measures concerning development and tax policy aimed at reviving the country's ailing economy. Announcing the proposals to the representatives of 21 organisations and the social partners, Mr. Yennimatas requested them to submit their replies by Monday. Mr. Yennimatas announced series of measures which, he said, were aimed at curbing widespread tax evasion, curtailing socially unjust privileges for certain categories of taxpayers and ensuring justice in sharing the tax burden. The measures include taxing incomes of small companies and liberal professions such as doctors on the basis of "objective criteria". Such criteria would be the value of the premises and equipment used by members of such professions. A small presumed income would be added to this value, calculated on the basis of corresponding incomes earned by salaried persons employed in the same profession. The resulting figure would serve as the tax basis subject to adjustment according to profession. The final arrived at will be considered the taxable income, unless the income declared by the taxpayer is higher. A "trading tax" will also be levied on tradespersons operating without business premises, such as street vendors. Tradespersons in this category will pay tax in the form of an annual lump sum. The government also plans to introduce an instalment tax on the income of construction workers, to be retained by the contractor or owner of the building. Mr. Yennimatas is also proposing the application of objective criteria for estimating farmers' incomes, from which an amount of tax will also be retained. Criteria for farmers include type and size of arable land and the value of equipment used. According to the proposals, objective criteria will also be applied for calculating VAT owed by certain categories of small companies. The imposition of VAT, at a rate of 18 per cent, will also be extended to construction costs, with the simultaneous abolition of property transfer tax. Mr. Yennimatas is proposing continuation of the present tax scale by inclusion of a maximum rate of 45 per cent for annual incomes exceeding 15 million drachmas. Other measures include the registering of shares of joint stock companies (societes anonymes) in the health and education sectors. This would apply to the shares of private schools, private clinics etc. A 10 per cent tax on the dividends of unlisted shares of joint stock companies is also among the measures. As part of the government's concerted drive to stamp out tax evasion, Mr. Yennimatas is proposing gaming rooms be taxed on the basis of the number of tables and entrance tickets be introduced for nightclubs. Other measures proposed by Mr. Yennimatas are: A supplementary tax on luxury homes of over 300 square metres. The use of rent as a criterion for calculating estimated living expenses. The re-introduction of the means test to establish source of wealth. The test will not apply to the purchase of first homes or the acquisition of listed shares. It will also apply to tax officials. The reduction of indirect state subsidies. The re-introduction of a discount for taxpayers who pay their tax dues in a single lump sum. Increase of tax allowance granted to salaried workers and pensioners. Turning to the government's development policy, Mr. Yennimatas said that emphasis would be placed on sectors of production which boost Greece's competitiveness internationally, create stable and well-paid jobs, increase domestic added value and limit the economy's foreign dependence. In addition, he said, the government plans to strengthen investment activities which have repercussions on employment. At the same time, he went on, it would considerably strengthen the links in the chain of know-how in competitive production. Emphasis would also be given to the transfer of technology, particularly in the sectors of agriculture, manufacture and services. Other targets include the creation of a suitable institutional framework for the credit system to foster the development of new financial services to better meet the needs of companies in the new environment of liberalised markets. The government also plans to reduce the high cost of money by implementing a policy aimed at restricting public spending. Mr. Yennimatas said the export activities would be backed, particularly in the case of companies exporting or investing in the Balkans and East Europe. He said that the National Economy Ministry would undertake two initiatives: drawing up a "Development Charter" and formulating "National Development Plans". The former would contain the necessary measures to be taken at a institutional, organisational and financing level for promoting development, while the development plans would cover major areas of domestic production. Mr. Yennimatas said amendments to the law on development incentives would include a stricter selection process for investments qualifying for incentives. The government, he said, would support initiatives for collective business activity by companies aimed at facilitating access to new markets, securing joint supplies of materials and meeting quality control needs. Special incentives would be introduces, he went on, for regions in need of urgent restructuring, citing areas which have been badly hit by de-industrialisation in recent years. Assistance for tourist infrastructure works of a high standard would continue, Mr. Yennimatas, said, but the suspension of assistance for investments aimed at increasing accommodation capacity would be extended. Mr. Yennimatas said that the process of privatisation was compatible with the government's policy, to the extent that it did not lead to private monopolies, the abandonment of social services, the undermining or weakening of strategic activities, or threats to the country's national security. He said that the state telephone company (OTE), power company (DEH) and possibly other organisations would be called on to increase their capital through the stock exchange, so that 15 per cent of their share capital may pass into private ownership. Brussels, 4/12/1993 (ANA - G. Daratos): Foreign Minister Karolos Papoulias yesterday called on Turkey to revise its negative position on the question of a Community observer in the UN-sponsored Cyprus peace talks, at talks with his Turkish counterpart Hikmet Cetin on the sidelines of the NATO Council of Foreign Ministers. Mr. Papoulias said that as long as an occupation army remained in Cyprus Greek-Turkish relations would certainly continue to 'drag their feet'. Mr. Papoulias said Athens should pressure and influence Turkish Cypriot leadership to also contribute to a solution to the Cyprus issue. Mr. Cetin was noncommittal on the observer issue, adding that he would see who would win the "elections" on December 12 in Turkish-occupied northern Cyprus and in what way he would contribute to prompting it to take a substantive part in the New York negotiations. On the question of the Kurdish separatist rebellion in Turkey and the action of the Kurdish Workers Party (PKK), Mr. Papoulias said a solution cannot be found by using police force against Kurds. "It is necessary to uproot oppression of the Kurdish populations in south-eastern Turkey exercised by Ankara", he said. Mr. Papoulias termed his 45-minute talks with Mr. Cetin an "exploratory acquaintance meeting" focusing on all matters concerning relations between Greece and Turkey. Talks centred primarily on the Balkans and the situation in former Yugoslavia and Bosnia. Referring to the Geneva peace talks, Mr. Papoulias said: "Something is moving and the fact the warring sides are sitting round a table discussing specific matters, is very important in my opinion". The two ministers will continue their exchange of views on the situation and the future of the Balkans on December 9 at the meeting of Black Sea countries in Sofia. Mr. Cetin and Mr. Papoulias agreed that their governments should refrain from making provocative statements against each other, to avoid creating tension and provoking public opinion in their countries. Mr. Cetin referred to the Kurdish issue, terming it a "major problem" creating concern in Ankara and, in particular, to "terrorism emanating from the Kurdish Workers' Party". --- Mr. Papoulias said the meeting of NATO foreign ministers was "positive and constructive "as also the joint meeting with foreign ministers from central and east European countries on the sidelines of the North Atlantic Co-operation Council. He told reporters the proposal inspired by the U.S. on "co-operation for peace" is very important and a "big step forward" paving the way for co-operation with central and east European countries and the CSCE in general. Athens, 4/12/1993 (ANA): Alternate Foreign Minister Theodoros Pangalos had a meeting yesterday with the German Ambassador to Athens. The envoy later told the press subjects discussed related to co-operation in the context of European Union. "I shall not say anything more on our conversation" he said. Asked if the question of diplomatic relations with Skopje had also been raised, he referred the questioner to a recent German Foreign Ministry statement that the matter of upgrading relations with the Former Yugoslav Republic of Macedonia (FYROM) was under consideration by the eleven European union member-countries, and no decision had yet been taken on if and when such relations should be raised to embassy level. --- Alternate Foreign Minister Theodoros Pangalos yesterday refuted reports his German counterpart Klaus Kinkel had informed him of a move within the European Community to forge diplomatic ties with the Former Yugoslav Republic of Macedonia. "Mr. Kinkel told me that Germany would establish diplomatic ties with Skopje and set-up a diplomatic representation there. He never told me that he was in contact with other states on a joint move", Mr. Pangalos said. "I have the impression that he (Kinkel) should have notified me", he told a news conference. Mr. Pangalos said he was informed of the issue in a German newspaper report about a move by its 11 European Community partners to grant diplomatic recognition to the former Yugoslav republic before Christmas. Germany's ambassador to Athens told reporters after a meeting with Mr. Pangalos that Bonn was reviewing the issue of recognition with EC member states, but no decision had been taken. Greece has been blocking international recognition of the former Yugoslav republic, saying its use of the name "Macedonia" implies territorial ambitions on Greece's northern province of the same name. --- The government yesterday did not rule out a meeting between Prime Minister Andreas Papandreou and French President Francois Mitterrand and German Chancellor Helmut Kohl on the issue of the recognition of the Former Yugoslav Republic of Macedonia (FYROM). Asked about the possibility of Mr. Papandreou's requesting such a meeting, government spokesman Evangelos Venizelos replied: "Nothing may be ruled out, should the need arise". Asked if Germany exerted pressure on Greece to prevent Alternate Foreign Minister Theodoros Pangalos from handling the European Union, the spokesman said that the premier alone appointed ministers. "No pressure of any kind is being exerted on Greece", he added. Athens, 4/12/1993 (ANA): The balance of current accounts showed a 669.5 million dollar surplus in the period January-September this year compared with a deficit of 1601.1 million dollars in the same nine-month period of 1992, according to figures released by the Bank of Greece yesterday. The surplus for the month of September was 101 million dollars compared to a deficit of 705.9 million dollars for the corresponding month in 1992. The balance of trade deficit fell to 8,884.7 million dollars, from 10,171.1 million dollars in 1992. Imports totalled 12,700.4 million dollars down form 14,734.5 million dollars in last year. Exports were also down, from 4,563.4 million dollars in 1992, to 3,815.7 million dollars. Other figures showed travel exchange totalling 2,592.5 million dollars, a slight rise form 2,545.4 million dollars in 1992. Remittances from emigrants and Greek workers overseas reached 1,713.9 million dollars, compared with 1,733.9 million dollars last year. Net inflows from the EC totalled rose to 4,087 million dollars from with 2,853 million dollars. Business capital inflow amounted to 1,575,6 million dollars down from with 1,631.1 million dollars last year. Foreign exchange from Greeks overseas for property purchases totalled 715.7 million dollars from 819.4 million dollars. Foreign exchange reserves rose to 7,801 million dollars from 5,132.6 million in 1992. Athens, 4/12/1993 (ANA): Russia has shown interest in establishing a consulate in the northern Greek city of Thessaloniki, government sources said yesterday. Russian envoy to Athens Valery Nikolayenko made his country's intention known to the Greek government at a meeting with Macedonia-Thrace Minister Constantine Triarides, the sources added. Mr. Nikolayenko said the consulate would highly contribute toward a co-operation programme between southern Russia and Macedonia. "Russia wishes to develop relations with Thessaloniki, the future economic and banking centre of the Balkans", he said.