From: tzarros@ccs.carleton.ca (Theodore Zarros) Subject: News (in ENGLISH)- Thu, 24 Nov 1994 (Greek Press Office BBS, Ottawa). Athens News Agency Bulletin, November 24, 1994 ---------------------------------------------- * New budget aims to protect real incomes, revive the economy, premier says * Samaras comments * Kranidiotis says Greece looking at issue of EU aid to Albania * Tirana to look at amnesty issue * Albania-Turkey * Lymberis in Vienna on talks to upgrade defence co-operation * Greece takes part in multinational exercise * Papoulias meeting with Kinkel, Juppe still on but no date set yet * Niotis meets Armenian foreign minister * Zhelev says NATO should deal with Aegean waters issue * Christophersen says needs more work on achieving convergence, * Gov't says Commission findings 'surprising' * Venizelos * Papantoniou meets with commerce representatives * OA flight attendants object to Gov't bill clauses * Anthopoulos confers with Polish officials on economic, trade co-operation * Katsifaras on shipping safety measures New budget aims to protect real incomes, revive the economy, premier says ----------------------------------------------------------------- Athens, 24/11/1994 (ANA): Prime Minister Andreas Papandreou said yesterday that the 1995 state budget aimed at satisfying the "just" demands of workers while rehabilitating the economy. Speaking after chairing a Cabinet meeting, Mr. Papandreou said that the government would safeguard real incomes and "exhaust all possibilities" in the sectors of health and education. "In 1995", the premier said, "we shall move within the framework of the commitments of the (economic) convergence programme. "Fiscal policy will not only satisfy the demands of stabilisation, but will also have a marked economic and social dimension. The period of one-sided austerity is over". The fact that the government had managed to balance the budget, Mr. Papandreou said, creates a climate of confidence "and allows a policy with long-term targets". Government spokesman Evangelos Venizelos said the cabinet unanimously approved the 1995 state budget. Mr. Venizelos said the budget was in line with the government's economic policy and pledged not to take additional tax measures to curd the public deficit. "The approved budget is in line with the government's announced convergence programme in a bid to achieve the goals of economic stability, growth and social welfare", Mr. Venizelos said. "No new taxes will be imposed", he added. Asked about anticipated increases on luxury products such as alcoholic beverages and tobacco, Mr. Venizelos said the issue had not been discussed at the meeting. Mr. Papandreou asked for restraint from government members and said that any diverging from government lines would be taken as a statement of resignation. "Any public disagreement by a minister with government policy will not be tolerated and will be considered a resignation", Mr. Papandreou said. His warning came after recent criticism by ministers and ruling Panhellenic Socialist Movement (PASOK) officials of government economic policy. PASOK deputies with roots in labour unions defied the party line in parliament last month and voted against a bill privatising part of the state OTE telecoms company. Other PASOK deputies have denounced the government's economic policies as being "right of centre". "PASOK unity is not endangered by those who have founded it ant have the right to judge it but they have never undermined the founder of the party", former EU commissioner and PASOK deputy Vasso Papandreou said yesterday in response to allegations that she intended to undermine party unity. She said party unity was guaranteed by the thousands of followers constituting its membership. Samaras comments ---------------- Athens, 24/11/1994 (ANA): Commenting on the prime minister's statement on the 1995 budget, Political Spring party leader Antonis Samaras described the government's economic policy as "bankrupt". "Nobody has been surprised by Mr. Papandreou's inability to communicate with his ministers", he said, calling on the government to abandon its hard-line policy and base its new policy on development measures. Kranidiotis says Greece looking at issue of EU aid to Albania -------------------------------------------------------------- Athens, 24/11/1994 (ANA): Foreign Under-Secretary Yiannos Kranidiotis, speaking to Parliament's Standing Foreign Affairs Committee yesterday, said that economic aid to Albania may be granted under certain conditions. Greece exercised its right of veto on EU aid to Albania totalling 35 million ECU when relations with Tirana were strained after the conviction of five ethnic Greek Albanians on charges of espionage and arms possession. Greece has repeatedly asked Tirana to 'right wrongs' and release the five. The Albanian press recently hinted at the possibility of a general amnesty. Mr. Kranidiotis also referred to the European Union's relations with Turkey and Albania, and said the top priorities for Greek foreign policy were the threat from Turkey, the Cyprus issue and the crisis in the Balkans. He also mentioned the Former Yugoslav Republic of Macedonia issue, saying that the attitude of Greece's European partners has not changed, as they do not seem to understand the problem over the name. He added that the next EU enlargement will include Cyprus and Malta. Tirana to look at amnesty issue -------------------------------- Tirana, 24/11/1994 (ANA): The Albanian parliament will today debate a draft bill on the granting of amnesty, following an agreement yesterday between the presidium and all parliamentary party leaders. The proposal was initiated by the opposition Social Democratic party, and all parties agreed that parliament's legal department will prepare a draft bill for discussion this afternoon. Albania-Turkey --------------- Istanbul, 24/11/1994 (ANA): Albanian Trade and Industry Minister Selim Belortoyia said in Ankara yesterday that the cooling of Greek-Albanian relations had had a negative effect on foreign investment in Albania. "In the free market phase Albania is going through, the Turkish government's material and moral support will be significant," he said. Mr. Belortoyia was attending the 4th session of the Joint Turkish- Albanian Economic Affairs Committee, and stated afterwards that the two sides had agreed to encourage investments in industry, construction, energy, transport, agriculture, tourism and health. Turkish sources estimate that the volume of Turkish-Albanian trade exchange totalled $39.5 million this year, as opposed to $4.9 million in 1989. Lymberis in Vienna on talks to upgrade defence co-operation ---------------------------------------------------------- Vienna, 24/11/1994 (ANA/D. Dimitrakoudis): National Defence General Staff Chief Admiral Christos Lymberis flew to Vienna yesterday on a three-day official visit that will examine the upgrading of bilateral defence co-operation in the framework of the excellent relations already existing between Greece and Austria. It is the first visit paid by a Greek Joint Chiefs of Staff chairman to Austria. In a statement shortly after his arrival, Admiral Lymberis declared that Greece's aim through such co-operation was to make an effective contribution to ensuring peace and stability in Europe. "Greece deems it necessary to promote through what is referred to as military diplomacy, both its own interests as well as those of Europe to which it belongs," Admiral Lymberis noted. Admiral Lymberis is scheduled to confer with Austrian Defence Minister Werner Vaslabed and senior staff officers, tour military installations, and follow military manoeuvres. Topics for discussion include co-operation in the defence industry, strategic analysis and assessment, training, and a collective effort within the framework of European security and the European Union. Referring to Austria's future admission to the NATO "Partnership for Peace", Admiral Lymberis said Austria was welcome, noting its presence would be conducive to bringing rapprochement and co-operation among European peoples. calls for debate on demographic issue ------------------------------------------- Athens, 24/11/1994 (ANA): Main opposition New Democracy party leader Miltiades Evert yesterday sent a letter to Parliament's President Apostolos Kaklamanis requesting for a special session in Parliament to discuss the country's demographic problem. In his letter to Mr. Kaklamanis, Mr. Evert listed a number of subjects to be discussed, such as low birth rates and drugs, which affect the institution of the family. Greece takes part in multinational exercise ------------------------------------------- Athens, 24/11/1994 (ANA): Greek frigate Ipiros and four Mirage 2000 jets are participating in a multinational exercise Tramountana '94 off the coast of Spain. Other countries taking part include Spain, Italy, France and the United States. The exercise will end tomorrow. Papoulias meeting with Kinkel, Juppe still on but no date set yet ----------------------------------------------------------------- Bonn, 24/11/1994 (ANA/P. Stangos): A meeting between the Greek, French and German foreign ministers to discuss an initiative on EU relations with the Former Yugoslav Republic of Macedonia, Turkey and Albania may take place close to the EU summit in Essen December 9, sources here said yesterday. The meeting between French Foreign Minister Alain Juppe, German counterpart Klaus Kinkel and Greece's Karolos Papoulias was originally scheduled for November 15 but cancelled due to Mr. Kinkel's inability to attend. Discussion of relations between the EU and Cyprus was added to the agenda at the request of Greece. "The meeting does not necessarily have to take place in Athens," the sources said, implying that it might take place on the sidelines of the Council of Ministers' meeting of the NATO Ministers' Conference due to take place next week. Niotis meets Armenian foreign minister -------------------------------------- Yerevan, 24/11/1994 (ANA/D. Constantakopoulos): Foreign Under-Secretary Grigoris Niotis yesterday held talks with Armenian Foreign Minister Vahan Papazian on bilateral relations, international affairs and problems facing the Greek community in Armenia. The meeting, attended by representatives of the Greek community and Armenian officials, agreed that relations between Athens and Yerevan are excellent. Zhelev says NATO should deal with Aegean waters issue ----------------------------------------------------- Paris, 24/11/1994 (ANA/Y. Zitouniati): Visiting Bulgarian President Zhelyu Zhelev yesterday said that NATO should deal with the issue of Greece's right to extend its territorial waters in the Aegean. "If Greece extends its territorial waters to 12 miles (implementing international treaties) it is up to NATO to react," he said during an official three-day visit to Paris. Replying to questioners, Mr. Zhelev said "it is regrettable that two NATO member-states such as Greece and Turkey should be at odds, but Bulgaria wants to have good relations with both countries and that these two countries should have good relations between themselves." President Zhelev met Prime Minister Eduard Balladur, European Affairs Minister Alain Lamassoure, Paris Mayor Jacques Chirac and former president Giscard d'Estaing during his visit. President Zhelev's talks in Paris, in light of the French European Union Presidency as of January, aimed at promoting Bulgaria's effort to speed up processes for the country's accession to the EU and NATO. Christophersen says needs more work on achieving convergence, Gov't says Commission findings 'surprising' ----------------------------------------------------------------- Brussels, 24/11/1994 (ANA/P. Pantelis, V. Demiris): The European Union's Economic Affairs Commissioner Henning Christophersen yesterday revised economic forecasts for EU member-states upwards. The Greek convergence programme, however, he said, would require "new supplementary efforts". He made the comments on Greece in a round-up of the economic status of all EU members. "It is up to the government, every government according to the Maastricht Treaty, to table necessary measures in Parliament on strict implementation of the convergence programme," he said. Referring to the Commission's forecasts of slow economic growth and relatively high inflation in Greece, Mr. Christophersen said "these factors demand a supplementary effort to facilitate the attainment of convergence criteria." In Athens, government spokesman Evangelos Venizelos said he was "surprised" at the findings, adding that he felt the Commission's conclusions were based on EU working group conjectures that were not proven and said that National Economy experts would re but the Commission's conclusions with actual figures while National Economy Minister Yiannos Papantoniou would do the same at the ECOFIN Council on December 6. The Commission's report said that "despite a planned slight improvement, the (Greek) inflation indicator will remain at unsatisfactory levels over the next two years." "It appears that economic growth in Greece and Portugal in 1994 will probably remain weak, while it is expected that almost all member-states will achieve growth rates ranging between 2.75 per cent and 3.25 per cent over the next two years," the report added. The Commission report indicated that Greece had the lowest economic growth level and the highest inflation -- three times the average -- in the European Union. The Commission predicted economic growth rates of 0.4 per cent in 1994, 1.1 in 1995 and 1.7 in 1996 and inflation rates of 10.5 per cent in 1994, 9.5 in 1995 and 9 in 1996 for Greece. Public debt as a percentage of GDP was predicted as running at 121.3 per cent in 1994, 125.4 in 1995 and 128.1 in 1996 and public deficit as a percentage of GDP at 14.1 per cent in 1994, 13.3 in 1995 and 12.9 in 1996. Unemployment in Greece, the report said, was projected at running at 10.2 per cent in 1994, 10.6 in 1995 and 10.8 in 1996 and the current accounts deficit as a percentage of GDP at 2.5 per cent in 1994 -- the highest percentage in the EU -- 2.6 in 1995 and 3 in 1996. Per capita GDP as a percentage of the EU average was forecast at 61.7 per cent in 1994 -- the lowest GDP per capita in united Europe -- 58.6 in 1995 and 57.7 in 1996. The Greek convergence programme foresees the public deficit will be 10.7 per cent in 1995, but according to Commission forecasts it will be 13.3 per cent. The public debt will reach 115.3 per cent of GDP in 1996 and then start to decline, but the Commission forecasts it will amount to 128.1 per cent of GDP. Mr. Christophersen said the Commission's report ascertains a stable economic recovery which is expected to gradually cover all member-states and speed up economic convergence rates. Venizelos --------- Athens, 24/11/1994 (ANA): Government spokesman Evangelos Venizelos expressed surprise at Mr. Christophersen's pessimistic assessments on the course of the Greek economy and his views that additional measures will be required to meet targets set in the convergence programme. Expressing reservation until he is informed of the full text of Mr. Christophersen's statement, Mr. Venizelos said it was inconceivable that such assessments should be made by a responsible member of the European Commission without having full information on the 1994 and 1995 budgets in mind, which indicate the deficit will not be exceeded and the convergence programme will be fully observed. Mr. Venizelos said the Commission report may have been based on data that proved wrong and working assessments by EU bodies which were not substantiated. He said National Economy experts will be able to present the actual figures to their counterparts as of today while National Economy Minister Yiannos Papantoniou will do the same at the ECOFIN Council on December 6. Papantoniou meets with commerce representatives ----------------------------------------------- Athens, 24/11/1994 (ANA): A delegation of the Union of Traders' Associations (EESE) met with National Economy Minister Yiannos Papantoniou yesterday and discussed issues of concern to commercial enterprises. These include incentives for mergers of small and medium-size enterprises, the expedition of major projects, application of development incentives to trading enterprises, suspension of the measure for the nominalisation of shares of Societes Anonymes (SA), a broadening of the tax base and the abolition of tax exemptions. EESE president Dimitris Kapsalis stated afterwards that the minister had promised to meet most demands. OA flight attendants object to Gov't bill clauses ------------------------------------------------- Athens, 24/11/1994 (ANA): Olympic Airways flight attendants yesterday told the company's head that they objected to provisions on pensions and seasonal staff contained in the government's draft rescue bill on the national carrier's finances. The board of the Olympic Airways Flight Attendants Union (EISF) met with the company's director general Theodoros Tsakiridis yesterday and were due to meet again later in the evening with the participation of the pilots' and flight engineers' unions. Mr. Tsakiridis was to convey all demands to the government. Meanwhile, the Federation of Civil Aviation Unions (OSPA) was last night expected to decide on whether to accept or reject the draft bill, which has yet to be submitted to parliament's legal department for processing. After meeting with the OSPA board, New Democracy party leader Miltiades Evert said that the first condition for the resolution of the crisis in OA was the holding of meaningful dialogue with the staff. He proposed the appointment of a new board for a five-year term, with the agreement of all parties, and the drawing up of an organisational modernisation programme. He noted that if the government does not act on these proposals, it will face a very strong reaction from New Democracy. Anthopoulos confers with Polish officials on economic, trade co-operation ------------------------------------------------------------- Athens, 24/11/1994 (ANA): National Economy Under-Secretary Ioannis Anthopoulos discussed Greek-Polish financial and trade co-operation in meetings he held with government officials in Warsaw at the beginning of the week. An announcement yesterday said that Mr. Anthopoulos discussed the possibility of developing joint ventures between Greek and Polish businessmen in the field of textiles. Poland also invited Greek businesses to bid for the construction of two highways. According to the announcement, the Polish government asked for the immediate ratification by the Greek Parliament of an agreement for the promotion and mutual protection of investment, adding that Polish businessmen were interested in investing in Greece. Katsifaras on shipping safety measures -------------------------------------- Athens, 24/11/1994 (ANA): Merchant Marine Minister George Katsifaras yesterday said European Union transport and shipping ministers Tuesday adopted a series of clauses at their meeting in Brussels aimed at improving safety on passenger ships. Mr. Katsifaras said one of the decisions obliged member-states to promote such measures as ship stability and speedy disembarkation of passengers. He said a political agreement was partly accepted on the directive concerning a system monitoring ships carrying dangerous or pollutant cargoes.